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Lisa Nandy Says BBC Licence Fee Could Be Paid By Netflix Subcribers

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The UK’s Culture Secretary has publicly signaled that she backs an expansion of the BBC license fee to include subscribers to streamers like Netflix, Disney+ and Prime Video.

Lisa Nandy floated a range of ways in which the £180 ($240) annual fee could be revamped to more strongly incorporate the SVoDs, a plan that has already drawn the ire of the Motion Picture Association representing U.S. streamers and studios.

With charter renewal and a new BBC funding model approaching imminently, the BBC has argued the license fee could be expanded to cover households that watch non-live content via streaming services. At present, only those who watch live output like Netflix’s WWE coverage or the Champions League on Prime Video have to pay, and collection rates for this group are low.

Nandy suggested to the Culture, Media and Sport Committee for the first time that those who watch both the BBC and streamers could pay the license fee, while those who only watch the streamers may pay a smaller charge, while there could be “targeted concessions for people who need them.”

If the license fee scope expanded, Nandy said there is even potential to “cut the cost of the license fee for everybody.” She stressed that many ideas remain in play and those she is floating are “not a secret plot.” “We are having an open conversation with the pubic, parliament and the BBC about this,” she added.

Going into the charter renewal negotiations, the BBC has repeatedly stressed that while 94% of the UK population use its services every month, fewer than 80% pay the £180, leading to a loss of hundreds of millions of pounds per year.

Nandy’s thinking is that the streamers in the UK benefit massively from BBC shows, infrastructure and staff, an argument that vaguely echoes the “Netflix TV tourists” debate from last year’s Edinburgh TV Festival. “At some point everything comes back to the BBC in this country and they should be shouting about that,” she added.

Nandy has had conversations with the streamers over all of these ideas and “they can speak for themselves” regarding a response,” she said, while stressing that the government continues to rule out a streamer levy in the UK, an idea taken up by several other nations that would see the SVoDs pay a small amount of their UK subscription revenue to a cultural fund for British content.

“[The streamers] would be reluctant to see additional charges on their consumers, but I think they would be more reluctant to see additional charges on their businesses,” she added. “We don’t want to deter investment to the UK. Some of the biggest streaming companies are here investing in very big numbers right across the country partly because of British creativity, partly because of the BBC but also because everyone is on the hunt for locally rooted stories with universal appeal and the UK is brilliant at that.”

While the BBC provides advantages to the U.S. giants in the UK, Nandy backed concerns that the corporation is spending too much on American acquistions like Scooby Doo, a practice that new Director General Matt Brittin said last week is being reviewed.

Layoffs announcement was “somewhat strange”

BBC director general Matt Brittin

Matt Brittin

Getty

Nandy also addressed the thousands of BBC layoffs that are being implemented at present, which have led her to have conversations with BBC leadership, unions and workplace reps.

She said it is “somewhat strange” that the mega cuts were announced by the interim Director General prior to Brittin taking up his post in May.

Her concern is that the plan to slash costs by £500M over the next three years will damage the work that was done by Brittin’s predecessor Tim Davie to devolve power outside of London.

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‘American Ninja Warrior’ Producers Bring Dumb Luck To U.S.

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EXCLUSIVE: Tokyo Broadcasting System (TBS), the Japanese company behind the Ninja Warrior format, and A. Smith & Co. Productions, which produces the U.S. version for NBC, have teamed up again on another competition series.

The two companies are developing Dumb Luck, a series based on Japanese format Kisuke, for the U.S.

They have already produced a two-hour special that aired in Japan that won its time slot before shopping the project to U.S. buyers.

The series is based entirely on chance. A group of lucky contestants, who require no smarts, zero skill and absolutely no strength or stamina, are pitted against each other in rounds of luck-based obstacles where they pick their poison and pray they avoid the predetermined punishment, which could include freezing water, electric shocks and explosive flour cannons.

Dumb Luck was spearheaded by TBS International, the company’s U.S. arm, which has been ramping up its efforts in the States. It recently hired Elwin de Groot, who co-created Fox music competition series The Four, as Senior Non-Fiction Development Executive.

Kisuke launched in Japan in 2024, initially as a segment on its daily morning variety program Love It! before it was expanded out. The special was produced by Yoshimi Ito and Takuma Inoue with Haruhiko Yasuoka as chief director.

“As it happens, Kisuke’s evolution was far from luck,” said Goshu Segawa, VP, TBS International. “We saw its universality, comedy-based nature and ability to offer something quite different in today’s market. We quickly decided that A. Smith & Co. were the ideal partners for developing Dumb Luck and believe it will win over American audiences just as Ninja Warrior has.”

“We’re always looking to push boundaries in unscripted formats, and Dumb Luck does that with its fresh and wildly fun take on competition television that’s driven by the one thing no one can predict: chance,” added Eli Baldrige, EVP of Development at A. Smith & Co. Productions. “TBS and A. Smith have a longstanding track record of creating shows that connect, entertain and sustain, and we’re excited to once again partner to bring this show and its bold, comedic energy to life for U.S. audiences.”      

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Cream Productions Names Matt MacLellan President

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EXCLUSIVE: Canada‘s Cream Productions is handing promotions to a pair of senior production execs.

Matt MacLellan has been upped to President from his current role as VP of Production, while Francince DiBacco is elevated from Supervising Producer to Head of Production.

MacLellan will report into Cream founder and CEO David Brady, with DiBacco reporting into MacLellan.

In his new post, MacLellan will oversee Cream’s overall operations and strategic direction while continuing work on its slate of unscripted programs and feature films. He has previously played a key role in overseeing productions such as An Optimist’s Guide to the Planet with Nikolaj Coster-Waldau for Bloomberg, The Haunted Museum for Travel Channel and Relative Secrets with Jane Seymour for Acorn). He most recently served as executive producer on The Horror Section’s upcoming feature film Ice Cream Man, directed by Eli Roth. 

DiBacco will now oversee company’s production slate. Now in her tenth year at Cream, she previously served as Production Manager, Line Producer and most recently Supervising Producer. Her credits include The Game Show Show for Hulu and History of the Sitcom for CNN, as well as the Canadian Screen Award-winning Blue Rodeo: Lost Together

Cream is currently in production on the likes of Burger Month for CBC and Countdown to Disaster for History and Corus, and is building out AI and VFX unit Dark Half, which supports in-house and third-party productions.

“Matt and Francine have each been instrumental in shaping Cream into the company it is today,” said David Brady, CEO of Cream Productions. “They combine exceptional creative instincts with outstanding business leadership and have consistently delivered world-class productions while fostering the collaborative culture that defines Cream.

“As our industry continues to evolve, their ability to embrace innovation – including opportunities in AI and visual effects through Dark Half – positions us to continue growing and creating premium content for years to come. I couldn’t be more confident in the leadership team guiding Cream into its next chapter.”   

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California, Other States Sue To Block Paramount-Warner Bros. Merger

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A group of a dozen state attorneys general filed suit to block Paramount‘s $110 billion acquisition of Warner Bros. Discovery, long-anticipated litigation to stave off a merger despite receiving clearance from the Trump administration Justice Department.

The lawsuit, filed in federal court in Sacramento on Monday, challenges the transaction as stifling competition for wide release theatrical film distribution, big budget motion picture distribution and licensing of basic cable television channels.

The focus on those aspects of competition come amid concerns that the merger would lead to widespread layoffs as the combined company grapples with its debt burden. Broader concerns have been on the impact on the creative community and the information environment, with Paramount set to own two legacy news brands, CBS News and CNN, although that was not the subject of the lawsuit’s claims.

California Attorney General Rob Bonta, who led the lawsuit, said in a statement, “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”

Also joining the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.

“After this merger, for every dollar generated by wide-release theatrical films and basic cable channels in this country, the combined company will pocket more than a quarter. This merger, in short, would create a media behemoth,” the lawsuit stated.

Paramount has been steeling for a courtroom battle, hiring noted antitrust litigator Jeffrey Kessler, who most recently fought on behalf of the states as they challenged Live Nation and Ticketmaster’s market dominance.

The company’s most immediate concern is timing: Its deal for WBD includes a $7 million a day “ticking fee” if the transaction does not close by Sept. 30.

That’s why the most important part of the litigation may be in its initial stages, including whether a judge grants a temporary injunction that would put the transaction on hold. That’s what happened in the case of Nexstar with its proposed acquisition of Tegna. Despite receiving federal approvals, a federal judge put the merger on hold, siding with state attorneys general and DirecTV in their claims that the merger would be anticompetitive. Nexstar is appealing, but that process looks to drag out the transaction for months or into next year.

While Democrats on Capitol Hill have warned about the merger, undoubtedly putting pressure on Bonta to act, Paramount’s lobbying efforts to win Trump administration approval has also helped put it in the partisan crosshairs, even though CEO David Ellison once said that he did not want the company to be politicized.

Ellison attended Trump’s State of the Union address earlier this year, appearing with one of the president’s allies, Sen. Lindsey Graham (R-SC) in a photo in which they each gave the president’s signature thumps up sign. In April, Ellison hosted a dinner for the Trump White House and CBS News correspondents in advance of the White House Correspondents’ Association dinner, an uneasy mix of the business interests of the company with the journalism side. And in June, Ellison mingled with Trump as he attended the UFC championship on the White House lawn, an event that was streamed on Paramount+.

In recent months, critics of the merger have held unofficial hearings in Southern California and on Capitol Hill, while groups include the Democracy Defenders Fund and the Writers Guild of America helped gather more than 5,000 signatures from talent and creatives opposing the transaction.

In their statement last month giving clearance to the merger, the Justice Department said that the “extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”

More to come.

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