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Superheroes came to Hollywood's rescue this summer. Is it enough to save movies?

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Superheroes came to Hollywood's rescue this summer. Is it enough to save movies?

Foul-mouthed superheroes, babbling Minions and plenty of Anxiety (the animated kind) have propelled this summer’s box office past the winter and spring theatrical doldrums, marking one bright spot in an otherwise industry-wide gloom.

Boosted by a bevy of sequels, the summer’s gross box office receipts (starting from the first Friday in May) is projected to total roughly $3.6 billion through the Labor Day weekend, according to Paul Dergarabedian, senior media analyst at Comscore.

That’s short of last year’s “Barbie” and “Oppenheimer”-fueled haul of $4 billion, but still higher than summer totals in 2022, 2021 and 2020 — a positive sign for theater owners and studio executives who weathered a tough January-to-May stretch of limited and underperforming films.

And with a much-anticipated fall and winter slate of films including “Beetlejuice Beetlejuice,” “Wicked” and “Moana 2,” industry insiders are sounding more upbeat for the end of the year and beyond.

“If we can carry this same momentum that we have this summer currently into the fall and then into the beginning of 2025, I think exhibition will be very pleased,” said Jim Orr, president of theatrical distribution at Universal Pictures. “We can truly say we’re back.”

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The optimism is a far cry from earlier this year, when the industry collectively wrung its hands as the box office struggled to captivate audiences. That concern turned into panic by Memorial Day, when films such as “Furiosa: A Mad Max Saga” and “Garfield” did not perform up to high expectations, leading to the worst Memorial Day weekend box office in almost three decades.
(“Garfield” ended up grossing more than $257 million in global box office on a reported budget of $60 million.)

Industry observers now see that five-month stretch as the low point in the theatrical slump, fueled in part by a lingering slowdown from the pandemic and the dual strikes by writers and actors, which disrupted the production and marketing of films.

“This industry took a double gut punch,” said Charles Rivkin, chairman of the Motion Picture Assn. “First we had COVID, which turned our $11-billion industry into zero overnight. And then when we were recovered from that, we immediately had the strikes.”

Morale was low at the outset of the season. Save for a few successes, such as Disney’s “Kingdom of the Planet of the Apes,” May releases — from Universal’s “Fall Guy” to Warner Bros.’ “Furiosa” — mostly fell flat.

“The expectations for ’24 were definitely tempered,” Dergarabedian said. “We didn’t have a Marvel movie kicking off the summer.”

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But starting with June’s “Bad Boys: Ride or Die,” the box office started to pick up. It would be the first of several sequels to power the all-important summer box office.

Animated films helped to power the rebound.

“Inside Out 2” and “Despicable Me 4” put up blockbuster numbers, which is notable because animation was one of the slowest genres to recover from the pandemic due to families’ wariness to return to theaters and the ease of watching movies on streaming platforms.

With several animated films set for release later this year, worldwide family box office revenue could reach $6.1 billion, which would surpass 2018’s total, said David A. Gross, who publishes the FranchiseRe movie industry newsletter.

“It’s fair to say that since ‘Super Mario’ in spring of 2023, family moviegoing is back to pre-pandemic levels,” he said.

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To date, the domestic box office has generated about $5.6 billion, down from $6.6 billion at this point last year, according to Comscore. But the summer box office has made up a lot of ground.

“I don’t like to spike the ball on the five-yard line, but I think we’re in the right direction,” said Rich Gelfond, chief executive of Imax Corp., the giant-screen technology company that operates out of Playa Vista. “We’re certainly on the road back.”

One reason for the recovery: Walt Disney Co. got its groove back this summer, with the help of “Inside Out 2.”

The Pixar animated sequel to 2015’s “Inside Out” drew $1.6 billion worldwide, making it the highest grossing animated title of all time, and the top movie of the summer season. Then, Disney-owned Marvel Studios packed a punch with the R-rated “Deadpool & Wolverine,” which amassed $1 billion in global revenue and became the second-highest grossing film of the summer.

“Historically, there’s been a bit of a ceiling for R-rated movies just because a bunch of kids can’t come,” said Greg Marcus, chief executive of Marcus Theatres, a Milwaukee, Wis.-based chain with about 80 locations spanning 17 states.

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But the reception for the movie “speaks to the … clamoring for product. The people are saying, ‘If you build it, we will come,’” he said

The box office showing for Pixar and Marvel was significant, as the key Disney brands have struggled to consistently deliver in recent years. The House of Mouse’s uncharacteristically weak post-pandemic track record was one reason box office analysts drastically lowballed opening weekend projections for “Inside Out 2.”

“Everyone had high hopes for that film,” said Sean Gamble, CEO of Cinemark, the Plano, Texas-based theater chain with more than 300 locations, including 20 in Southern California. “We certainly did, but that proved out to be way beyond what we expected. It’s probably one of the biggest outperforming films … we’ve seen in a very, very long time.”

Tony Chambers, executive vice president of theatrical distribution at Disney, said, “Quality matters, and quality delivers” — echoing a key point from Disney CEO Bob Iger, who has ordered sweeping cuts across the company to stem losses from its streaming business and has directed creative departments to focus on theatrical and not crank out as much content.

Appealing to broader, multicultural audiences doesn’t hurt either, Chambers said.

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“It sounds very simple, but if you cast your net wide enough, the more fish you’re likely to get,” he said. “That’s been the common denominator for all the movies that have worked successfully this summer.”

To be sure, the movie industry still faces massive challenges, regardless of this summer’s slight reprieve. Box office revenue is still below pre-pandemic levels, and it’s unclear whether it will ever fully rebound as viewing habits shift.

So far this summer, theaters across the U.S. sold 274 million tickets, an 18% decline from last summer, according to industry data firm EntTelligence. That pales in comparison to the 406 million tickets sold in summer 2019 — a time when moviegoers weren’t yet accustomed to watching major releases at home on streaming services.

What’s more, film financing has become more difficult as interest rates have increased. China is no longer a reliable market for boosting American films’ box office revenue. And studios have slashed budgets and laid off thousands of employees as they struggle to balance their massive spending on streaming services with the lower-than-expected returns.

Still, if box office returns for the second half of this year are down by only 10% compared to pre-pandemic levels, that would be a good result, Gross said.

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And this summer, the charge was led by a plethora of sequels.

“Sometimes people question, ‘Are there too many sequels?’’’ Gamble said. “Across the board, with compelling stories, they work. And we’ve seen many, many examples of that throughout the course of this summer.”

Of course, simply adding more chapters to a franchise doesn’t necessarily guarantee success (see: “Furiosa”). But this summer’s sequels have been “solid,” leading to some level of reassurance for the industry.

“When these things are hitting, and when the box office is flowing, it just helps everything about the business,” Gross said. “It helps everyone relax.”

While original and nonfranchise films didn’t lead the box office this year, they certainly gave it a boost.

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Surprise breakout hits such as Neon’s masterfully marketed horror flick “Longlegs (the indie studio’s biggest movie to date) and Sony’s adaptation of the bestselling Colleen Hoover novel “It Ends With Us” weren’t nearly as lucrative as the likes of “Deadpool” or “Inside Out 2.” But they played an important role, exceeding expectations and keeping the popcorn lines moving.repeats “flowing” from quote.

“Every dollar counts in the summer, and those … films added significantly to the bottom line,” Dergarabedian said. “Every $20 million times five … is $100 million. So it all adds up to what turned out to be a pretty magnificent summer.”

Emelyn Stuart, owner of Stuart Cinema and Cafe in Brooklyn, N.Y., said summer business has been “amazing” compared to the previous year. Her theater has only one screen, which means she has just one chance at a time to pick a winner.

Last year, some of her choices included “Indiana Jones and the Dial of Destiny,” as well as the DC Comics superhero film “The Flash,” which grossed just $271 million worldwide amid a controversy surrounding its star, Ezra Miller.

This year, she chose “Bad Boys: Ride or Die,” “Despicable Me 4,” “Deadpool & Wolverine” and “A Quiet Place: Day One.” The variety of available films led to a winning combination, she said.

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For the fall, she’s planning to add a second screen to expand her options — particularly for attracting family audiences.

“With ‘Wicked’ coming, with ‘Beetlejuice,’ with ‘Joker,’ I think we’re going to end the year strong,” she said.

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Versant launches, Comcast spins off E!, CNBC and MS NOW

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Versant launches, Comcast spins off E!, CNBC and MS NOW

Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.

The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.

The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.

Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.

Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.

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Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.

Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.

The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.

Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.

“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.

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Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.

Comcast gained about 3% on Monday, trading around $28.50.

Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.

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Ties between California and Venezuela go back more than a century with Chevron

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Ties between California and Venezuela go back more than a century with Chevron

As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.

Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.

Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.

But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.

Looks like that bet might finally pay off.

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In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.

“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.

While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.

But the company’s official response to the stunning turn of events has been poker-faced.

“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”

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Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.

Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.

Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.

Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.

The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.

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Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.

But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.

Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.

That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.

But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.

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The Associated Press contributed to this report.

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‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million

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‘Stranger Things’ finale turns box office downside up pulling in an estimated  million

The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.

Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.

Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.

AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.

The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.

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Expectations for the theater showing was high.

“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”

It was a rare win for the lagging domestic box office.

In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.

With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.

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