Movies

No immediate credit impact of WGA strike

MUMBAI: Fitch Ratings believes the decision to strike by the Writers Guild of America (WGA) has limited impact on the credit profile of the media and entertainment sector over the short-term. However, a prolonged strike could impact specific sub-segments of the industry.

Fitch classifies the sub-segments reliant on the WGA into six areas:
Broadcast TV Networks, TV Studios, Cable TV Networks, Movie Studios, Movie Exhibitors, and the TV Broadcast Affiliates.
Each of these entities has revenue streams that are not dependent on the WGA, especially over the short-term, as well as various alternatives (i.e., reality programming, repeats, live news) to at least partially offset down time from WGA programming. In addition, many of the companies have capacity at existing ratings and outlooks to withstand temporary pressures to operations.


Fitch believes the TV studio side of these businesses should be able to continue much of their first-run syndication programming and continue to build-out their off-network syndication and DVD sales pipeline over the short-term. The stoppage on the primetime shows could have some short-term working capital impacts for the studios.


Movie Studios and Distributors:
There is typically a nine to 15-month lag time between the script-writing pre-production stage of a movie until it is finally released. Because of this lag time, Fitch does not expect any short-term impact for the movie studios and distributors as many of them already have first-half 2008 movies in the can and have already started production on second-half 2008 releases.
While the independent studios specialize in acquiring low budget independent films, it is not uncommon for these films to be written by WGA members. As a result, while the independent studios are susceptible to a longer term strike (the independent hit Little Miss Sunshine for example was written by WGA members), they should have slightly more flexibility than their major studio counter-parts.


Importantly, in addition to the lag time that these studios enjoy, the movie studios of many of these entities are low margin businesses that account for a small portion of overall company cash flows, thereby making any prolonged strike not a material concern for Fitch to the overall credit profiles of the conglomerates when taking into account the scaleable cost structures that would accompany a long-term shut down of operations.


Movie Exhibitors:
Movie exhibitors such as AMC Entertainment (‘B‘; Stable Outlook), Regal (‘B+‘; Stable Outlook), and Cinemark (NR) will be impacted by this strike over the short-term as they can rely on the lag time between pre-production and final film release giving them a slate of film product over the next nine to 12-month period. Obviously, a more protracted strike would have substantial impact on these entities as they are solely dependent on the studios product while maintaining a very high fixed cost base and, generally speaking, weaker capital structures.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/16/Oddball_0.jpg?itok=BG9dmZ7E
Oddball Motion Pictures gets Rs 250 cr for film production

MUMBAI: Oddball Motion Pictures, founded by filmmaker Nitin Upadhyaya, announced its association with Chanda Group where the latter will be funding a seed capital of up to Rs 250 crore for the feature films and original digital video content that will be exclusively developed and produced by...

Movies Movies On Mutiple Platforms
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/15/rmy_0.jpg?itok=lL8qydAg
Cast & crew of 21 sarfarosh: saragarhi 1897 celebrate army day with the 7th Battalion of sikh regiment of the indian army

The cast & crew of 21 Sarfarosh: Saragarhi 1897 commemorated the Army day with the Soldiers of Sikh regiment of Indian army. Actors Mohit Raina & Mukul Dev personally took the soldiers of the Sikh regiment on the tour of the set in Aamgaon where the epic battle of Saragarhi is currently...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/27/manav.jpg?itok=AdsRwhZX
Watch the world television premier of "Nirahua Hindustani"on 30th december at 1 PM only on Dabangg

SABGROUP’S foremost regional channel – Dabangg is geared for the World Television Premier of the highest revenue grossing Bhojpuri Blockbuster of all times, ‘Nirahua Hindustani’. The telecast will air on the 30th December,2017 at 1pm, followed by the repeat at 8pm.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/26/Parikshit-Dar3.jpg?itok=9KjDQiNB
BookMyShow reveals how India entertained itself in 2017

As the year comes to a close, BookMyShow looks back at what entertained India this year, from movies to plays, sports, events and music. In 2017, millions of Indians reached out to BookMyShow to meet their entertainment demands basis which the platform is delighted to present #Bestof2017*.

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/22/irfaan.jpg?itok=mWT-Q4_W
Catch Bollywood Actor Irrfan Khan this Week on Off Centre

MUMBAI: This week on Off Centre, Anuradha Sengupta talks to one of the finest Bollywood actors in the industry, Irrfan Khan. From being noticed and welcomed as a romantic lead after 22 years in business to his latest release and love, sex, romance in today’s time, he expresses his views and...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/secret-superstar.jpg?itok=6yxH51NX
Zee Studios International's Secret Superstar hits it big in Taiwan

Zee Studios International has collected $700,681 from its release of Aamir Khan-starrer Secret Superstar in Taiwan, making the movie the widest Bollywood film in the country. The film, which also features Zaira Wasim, lit up the box office in India. The distribution company began the next phase of...

Movies Hindi
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/08/zee-studio.jpg?itok=1xtV1Jhc
Zee Studio to premiere the post-apocalyptic horror drama - MAGGIE!

Zee Studio, the hollywood movie destination, brings the Indian television premiere of Maggie. Starring multi-award winner Arnold Schwarzenegger and Academy Award-nominee, Abigail Breslin, this post-apocalyptic drama premieres on 10 December 2017, Sunday at 12 noon and 9 pm.

Movies Hollywood
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/01/sanjay.jpg?itok=sJJUMOP8
Demonetisation, decline in govt ads impact UFO Q2 numbers

BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform UFO Moviez Ltd (UFO) reported a 12.8 percent year-on-year (y-o-y) decline in consolidated operating revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18) as compared with the corresponding year ago...

Movies Movies On Mutiple Platforms
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/11/25/Madhavan_0.jpg?itok=AcPIL5R4
The modern day economics of film financing

Only 2 per cent of the total movies released in 2016 in the US were computer graphic (CG) animation, yet they grossed more than 21 per cent of the US box office collection. Strong animation brands have longer shelf-life and generate revenue for years.

Movies International

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories