I AM PERPLEXED BY HOW MUCH POPULARITY SOME OF THESE FILMS
HAVE HAD. NOT JUST THE ONES YOU'VE MADE
BUT ALSO THE ONES YOU'VE HAD PRODUCE PRINTERS AND APPETITE,
AND I WONDER, IS THERE ANY SORT OF AN TO THIS?
IS IT GOING TO RUN OUT SMART WE GET TIRED OF BEING SCARED MARK
>> PEOPLE LOVE SCARY STORIES, WE ARE IN THE SCARY STORIES
BUSINESS AND IT DEALS LIKE THAT APPETITE AND ENGAGEMENT HAS
ONLY GROWN. OUTSIDE OF THE HOME, INSIDE OF
THE HOME, IN LIFE EXPERIENCES AND ALL OF THESE FORMATS.
>> WHAT PART OF THIS COMPANY HAS BEEN KIND OF CONTAINING
COSTS, PRODUCING THINGS AT A MUCH LOWER LEVEL THAN OTHER
STUDIOS, BUT AT THE SAME TIME, ENDING UP WITH A PRODUCT THAT
GETS AS MUCH IN TICKET SALES OR WHATEVER.
FROM THE BEGINNING, I HAVE CITED TWO THINGS.
ONE IS THE LOVE AND PASSION FOR GENRE STORYTELLING.
IF YOU WALK THE HOW -- IF YOU WALK THE HALLS, IT IS LOSING
OUR EMPLOYEES AND STAFF. BUT WE HAVE A UNIQUE PRODUCTION
MODEL THAT TAKES THE BEST OF CLASSIC INDEPENDENT PRODUCTION
AND DOING IT EFFICIENTLY AND DOWN AND DIRTY.
A LOT OF IT IS RUN IN-HOUSE WITH THEIR OWN TEAMS, AND THEN
MARRYING THAT TO THE BEST GLOBAL STUDIOS THAT WE HAVE, IN
TERMS OF MARKETING AND DISTRIBUTION.
THAT COMBINATION HAS BEEN THERE FROM THE BEGINNING.
EDITS EVOLVE, AND THE BUDGET AS A BALL, AND THE MARKET HAS
EVOLVED, BUT THAT HAS BEEN THERE FROM THE START.
ABSOLUTELY, IT IS A UNIQUE ELEMENT THAT WE HAVE A PASSION
FOR. SCARY STORIES AND THE WAY WE
MAKE THEM AND GET THEM OUT INTO THE WORLD.
>> IN TALKING ABOUT THE EVOLUTION OF THE MARKETPLACE,
THERE IS A DEBATE IN THE MOVIE BUSINESS OVER THE LAST MANY
YEARS. WHAT WORKS IN THEATERS. YOU SHOULD MAKE MOVIES FOR.
STREAMING. HOW LONG THEY SHOULD BE THERE.
YOU MAKE PROJECTS AS AN JUDGES FIRST GIMME SERVICES.
IT IS DEBUT ONLY IN THEATERS, BUT HOW DO YOU DECIDE WHAT
MERITS A THE ETHICAL RELEASE AND WHAT IS OK TO PUT ONLINE?
>> WE START FROM THE TOP OF BEING IN THIS BUSINESS AS
STORYTELLERS AS OAKS HAVE PRODUCED CONTENT TO BE LESS
TIED TO ANY FORM OF DISTRIBUTION, JUST LIKE HE SAID.
WE THINK ABOUT EACH INDIVIDUAL PROJECT AND WHAT IS THE BEST
WAY TO BRING IT TO THE WORLD AND HAVE THE BIGGEST IMPACT AND
GENERATE THE MOST BUSINESS, BUT SURE, THE THE ETHICAL RELEASE
MODEL IS AN INCREDIBLE WAY TO GENERATE IMPACT AND VALUE.
WE HAVE SEEN THROUGH THE COURSE OF THE WAY WE'VE RELEASE MOVIES
THAT HAVING A SEQUINED TROLL WINDOW FOR CONSUMERS TO ENGAGE
WITH WORKS INCREDIBLY WELL, BUT THERE ARE PROJECTS, LIKE ONE
COMING UP THIS YEAR, FIVE NIGHTS AT FREDDY'S WHICH WILL
DEBUT THEATRICALLY AT THE SAME TIME.
AND YOU HAVE A UNIQUE AND BASE THEIR THAT'S ENGAGED WITH THAT
PROPERTY, HISTORICALLY. AT HOME THROUGH GAMES, SO WE
REALLY TAILOR THE RELEASE FOR WHAT WORKS BEST FOR THE PROJECT.
>> THE MOVIE BUSINESS IS OFF. YOU GAVE ME A NUMBER.
20 TO 25% FOR THE PANDEMIC. RIGHT AROUND THERE THAT HAVE
YOU MAPPED OUT THE TIMEFRAME OF WHEN YOU THINK WE WILL GET BACK
TO A PEAK LEVEL OR WHEN IT WILL GROW PAST THAT AT SOME POINT?
>> IT IS 2019 THAT YOUR THING ABOUT.
THE LAST NORMAL PRE-PANDEMIC HERE.
I THINK IT'S IN THE 30% RANGE NOW.
FOLKS PROJECT IT WILL BE IN THE 20'S, BUT LUCKILY, WE HAVE TO
TRACK THAT, BUT WE DON'T HAVE TO LIVE THAT.
WE LIVE IN THE HORROR ROME, AND WE NEED TO PAY ATTENTION TO
THAT. WE WERE TALKING ABOUT THAT EARLIER.
CONSUMERS ARE VERY ENGAGE COMING OUT OF THEIR HOUSE TO
SEE HORROR MOVIES. THAT IS NOT 30% DOWN.
WE HAVE SEEN LOTS OF EXAMPLES OF OR FILMS AND FROM
COMPETITORS WHERE IT IS CLEAR THAT THE PRACTICE OF HEADING TO
A HORROR MOVIE IS VERY ROBUST, AND EVEN MORE ROBUST AS A SHARE
THAN IT WAS IF YOU LOOK BACK AT LAST YEAR OUT OF THE TOP FILMS
IN THE DOMESTIC BOX OFFICE. HORROR WAS ONE OF THE BIGGEST
GENRES OVER INDEX IF U.S. CONSUMERS.
IT IS ONE OF THE GENRES POST-PANDEMIC THEY ARE STILL
MORE INCLINED TO SEE IN THE MOVIE THEATER, AND FOR THE
BENEFICIARIES.
AS FAR AS RECOVERY GOES, THERE IS A BROADER MARKET, AND WE ARE
CHEERING FOR THAT WITH MARIO BROTHERS WORKING SO WELL.
THAT IS GREAT FOR US JUST TO GET MORE CONSUMERS AND
MOVIEGOERS IN THE HABIT OF GOING, BUT THAT IS UPSIDE FROM
WHAT ALREADY FEELS LIKE A STRONG CURRENT AT OUR BACK FROM
WHAT IT HAS BEEN AND CONTINUE TO BE EVEN IN THE PANDEMIC.
>> LET'S TALK ABOUT THE COSTS TO PRODUCE CONTENT.
A WRITER STRIKE FROM ONE OF THE MAIN WRITER SKILLS IN HOLLYWOOD
BEGAN EARLIER IN THE WEEK READ THERE IS A LOT OF CONCERN ABOUT
HOW LONG IT LASTS, AND HOW IT WILL AFFECT YOUR PRODUCTION
SCHEDULE.
>> WE ARE VERY CONCERNED, BUT IF WE DON'T HAVE AN IMMEDIATE
IMPACT, WE HAVE ENOUGH SCRIPTS IN PRODUCTION THAT WE ARE ABOUT
TO WORK ON IT, BUT IT WILL HAVE AN IMPACT.
THAT IS THE WAY IT WORKS. FOR US, HAVING THAT RESOLVE,
AND WE KNOW THE CONTRACTS ARE UP AT THE END OF JUNE.
PREVENTING ANY KIND -- AVOIDING ANY KIND OF STOPPAGES THE SET
WERE UNPAID WE DON'T HAVE ONE SIDE OR THE OTHER OUTSIDE OF
ROOTING FOR A RESOLUTION TO MAKE IT GET UP TO THE WORLD,
BUT THAT IS SOMETHING WE HAVE TO MONITOR.
>> ARE YOU ANTICIPATING ANY DISRUPTIONS TO PRODUCTION?
NO, BUT WITH MORE CERTAINTY, WE WILL KNOW AFTER THAT IS
COMPLETED.
>> WE DID A STORY ON YOU EXPANDING INTO GAMING.
WHAT WAS THE THOUGHT BEHIND THAT, AND WHAT IS YOUR APPROACH
THERE #>> THAT IS THE SAME PLACE OF EVERY PLACE WITH SCARY
STORIES THEY CAN BE SCARY AND WE WANT TO EXPLORE THAT TO
EXPLORE AND PARTICIPATE. WE WILL PARTICIPATE IN FIGURED
OUT. GAMES FALL INTO THAT BUCKET.
THAT IS ONE OF THE FEW BUDGET -- DOUBLE DIGIT GROWTH AREAS
AND ENTERTAINMENT, AND THERE IS A PRACTICE OF HORROR GAMES OR
FOR THRILLER GAMES WORKING IN THE WAY WE GOT INTO THE MOVIE
BUSINESS. WE ARE GOING TO START GETTING
INTO THE GAMES BUSINESS WHICH IS PRIMARILY WITH LOWER BUDGET
INDEPENDENT GAMES THAT WILL BUILD A PORTFOLIO FOR US, AND
RELEASE THEM IN PLATFORMS. PEOPLE TAKE A LITTLE BIT OF
TIME, AND MAYBE WE'LL GET THERE EARLIER, BUT THAT IS THE IDEA.
CAN WE BRING OUR BRAND AND OUR AUDIENCE AND HER EXPERTISE IN
FOR TO THE INTERACTIVE GREAT -- GAMING SPACE WHERE WE KNOW
CONSUMERS ARE ENGAGING WITH THIS AND WE KNOW OR FANS ARE
OVER THE INDEXES GAMERS.
>> YOU HAVE A FAVORITE HORROR GAME?
>> I LIKE GAMES THAT WE HAVE USED AS REFERENCE.
SOMA AND INSIDERS ARE A COUPLE OF THOSE, AND WE HAVE ONE COLD
STRETCH WHICH SOUNDS FUNNY. AS A FISHING HORROR GAME THAT'S
A COOL ONE. ASK A FISHING HORROR GAME.
I'LL HAVE TO LOOK THAT UP. YOU ARE TALKING ABOUT PUSHING
INTO GAMES AND TAKING THE FILM CONTENT, THOSE FILM FRANCHISES
AND FINDING A WAY TO LEVERAGE THAT GAMING.
>> WERE FOCUSED ON ORIGINAL WAS PRETTY >> THESE ARE ALL
ORIGINAL. YOU ARE NOT TAKING THAT.
>> I BRING THAT UP BECAUSE I WAS THING ABOUT A COUPLE OF
MOVIES FROM STREAMING THAT WERE BASICALLY VIDEOGAMES THAT
PEOPLE REALIZE, OK. WE CAN MAKE A MOVIE OUT OF THIS
AND PEOPLE WATCH IT. HOW IS THE COMPETITION RIGHT
NOW, ACROSS PLATFORM FOR LACK OF A BETTER PHRASE.
ASK I THINK YOU ARE RIGHT. SUPER MARIO BROTHERS.
WE HAVE ONE WHERE WE ARE ADAPTING THE FIVE NIGHTS HAVE
EDDIES. SUCCESSFULLY INTO A GAME LATER
IN THE AIR. WE ARE WORKING ON ANOTHER
DEVELOPMENT PROJECT. EVEN THOUGH WE ARE NOT AS
PRIMARILY FOCUSED ON OUR GAMES DIVISION, TAKING IP THAT EXIST
ENTERING INTO GAMES, WE THINK THAT'S A POSSIBILITY WITH THE
GAMES WE DO, THAT IF THEY ARE SUCCESSFUL, WE CAN ADAPT THEM
INTO TV. IT IS ONE OF THE UNIQUE ASPECTS
WE BRING TO THE TABLE AS A PUBLISHER WHERE IF YOU HAD A
SUCCESSFUL GAME, IN THE HORROR SPACE, WE ARE THERE TO ADAPT IT
INTO FILM AND TELEVISION. IT IS IN HER MIND, BUT WE ARE
STARTING WITH ORIGINAL IP BECAUSE WE THINK THAT IS A MORE
COMPELLING WAY TO GO AND TO GET GOING.
>> I HAVE TO ASK YOU ABOUT A BROADER QUESTION ABOUT
CALIFORNIA HERE. AT LEAST WHERE WE ARE SITTING
RIGHT NOW AND THE HOLLYWOOD FILM INDUSTRY.
AND THAT'S A BIG DRIVER. THERE A LOT OF INDUSTRIES OUT
THERE. I'M CURIOUS HOW YOU FEEL ABOUT
THE BUSINESS ENVIRONMENT OR THE DIFFICULTY IN BEING ABLE TO DO
WHAT YOU WANT TO DO IN THIS STATE.
>> WE OPERATE IN CALIFORNIA. WE DON'T KNOW ANYTHING ELSE.
WE MAKE OUR MOVIES AND TV SHOWS ALL OVER THE WORLD.
BUT, OUTSIDE OF -- SOMETIMES WE MAKE OUR MOVIES HERE, WE
COMPLETED ONE CALLED NIGHT SWIM. FOR US, IT'S BEEN A GREAT HOME
FOR OUR BUSINESS. THE REST OF HOLLYWOOD,
MARKETING AND DISTRIBUTION PARTNERS ARE ALL HERE.
FOR US, IT HAS BEEN A GREAT PLACE TO WORK, AND TO THRIVE AS
A COMPANY.