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'Wicked' spectacles, merger gossip and movie industry woes at CinemaCon 2024

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'Wicked' spectacles, merger gossip and movie industry woes at CinemaCon 2024

Movie theaters need more movies. Will they ever get enough to truly thrive again?

That was the central question overhanging CinemaCon 2024, the annual convention bringing together Hollywood studios and multiplex operators in Las Vegas this week.

Exhibitors pleaded with the major studios to release more films of varying budgets on the big screen, while studios made the case that their upcoming slates are robust enough to keep them in business.

Once again, CinemaCon, where studios trot out executives and movie stars to pitch their upcoming blockbusters, arrived at a particularly challenging time for the film industry.

After weathering a devastating pandemic that shut down theaters for months, two of the most essential parts of the Hollywood machine, writers and actors, went on strike. The work stoppages — which lasted a combined six months — prompted the leading entertainment companies to push a number of titles to 2025 from 2024, disrupting the supply chain and sparking widespread anxiety in the exhibition community.

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Box office revenue in the U.S. and Canada is expected to total about $8.5 billion, which is down from $9 billion in 2023 and a far cry from the pre-pandemic yearly tallies that nearly reached $12 billion.

“It’s not enough for us to simply sit back and want more movies,” said Michael O’Leary, president of the National Assn. of Theatre Owners, during Tuesday’s state-of-the-industry address at the Colosseum in Caesars Palace. “We must work with distribution to get more movies of all sizes to the marketplace.”

Though a fuller release schedule is expected for 2025, talk of budget cuts, greater industry consolidation and corporate mergers has forced exhibitors to prepare for the possibility of a near future with fewer studios making fewer movies.

In the extravagant banquet and trade show halls of Caesars Palace, theater operators groaned about 2024 being painted as yet another “lost year” for cinema — determined in spite of the grim discourse to remain optimistic.

“All indications are the rest of the year is going to be a lot better,” said David Fetters, vice president of West Mall Theatres in Minnesota and South Dakota. “The product we’re seeing here is looking outstanding.”

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The studios tried to give exhibitors something to hope for during their CinemaCon presentations — hyping their movie lineups, bringing out filmmakers and cast members, pulling silly stunts, and playing sizzle reels, sneak peeks, trailers and, in some cases, entire features for their industry audience.

‘Wicked’ brings down the house

While promoting their 2024-25 programming, the studios pulled out plenty of stops.

Distribution executives at Warner Bros. delivered their opening remarks dressed as Michael Keaton’s Beetlejuice; Dwayne Johnson joined a Polynesian dance troupe while introducing Disney’s “Moana 2”; and the head of distribution at Paramount entered the theater in full “Gladiator” armor on a gold chariot.

But Universal’s presentation of “Wicked” — director Jon M. Chu’s film adaptation of the hit Broadway musical — took the cake. Convention attendees arrived at their seats to find a surprise in their cup holders: roses that illuminated for a technicolor light show set to an instrumental medley of “Wicked” songs. After the overture, a pre-taped message to all “CinemaConians” from Jeff Goldblum’s imposing Wizard of Oz played onscreen, and Goldblum took the stage in real life.

He was later joined by Michelle Yeoh (Madame Morrible), Jonathan Bailey (Fiyero) producer Marc Platt and Chu, who fought back tears while talking about casting the film’s leading witches. On cue, Glinda and Elphaba themselves — Ariana Grande and Cynthia Erivo — emerged from the wings to thunderous applause.

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Like Chu, Grande was overcome with emotion and paused briefly to compose herself while delivering her remarks. .

Other pictures teased during the studio presentations included Universal’s “Despicable Me 4,” Warner Bros.’ “Furiosa: A Mad Max Saga” and “Joker: Folie à Deux,” Paramount’s “A Quiet Place: Day One” and “Transformers One,” and Disney’s “Inside Out 2” and “Deadpool & Wolverine.”

Paramount deal looms

Amid the displays of corporate harmony, it was hard to ignore the elephant in the convention center: a potential merger between Paramount Global and David Ellison’s production company, Skydance.

Shares of Paramount Global — home of Paramount Pictures, CBS and several other legacy brands and franchises — took a nosedive Wednesday after news that a group of of the company’s directors are stepping down amid merger discussions.

This would be only the latest Hollywood merger in a string of deals, including Disney’s acquisition of Fox in 2019 and Warner Bros.’ union with Discovery in 2022.

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When asked about the theatrical implications of another studio sale in an already rapidly consolidating industry, National Assn. of Theatre Owners President Michael O’Leary and Motion Picture Assn. Chairman Charles Rivkin largely waved it off.

“There’s always other things that we can do as an industry association to strengthen our industry, and I’ll cross that bridge when I get to it,” Rivkin said during a CinemaCon news conference.

Rather than avoiding the topic during the studio’s CinemaCon presentation on Thursday, Paramount Pictures chief Brian Robbins handled the situation with humor.

“There’s been a lot of speculation around our parent company around [mergers and acquisitions],” Robbins said before joking that Paramount’s head of domestic distribution, Chris Aronson, “has now thrown his hat into the ring as a bidder.”

“He’s starting a Kickstarter campaign,” Robbins continued as the crowd chuckled.

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Japanese cinema and faith-based content reign

As the domestic film business has been thrown into turmoil in recent years, Japanese cinema and faith-based content have been two of movie theaters’ saving graces.

Industry leaders kicked off CinemaCon on Tuesday by singing the praises of Sony-owned anime distributor Crunchyroll’s hits — including the latest “Demon Slayer” installment.

Mitchel Berger, senior vice president of global commerce at Crunchyroll, said Tuesday that the global anime business generated $14 billion a decade ago and is projected to generate $37 billion next year.

“Anime is red hot right now,” Berger said. “Fans have known about it for years, but now everyone else is catching up and recognizing that it’s a cultural, economic force to be reckoned with.”

Last year, event-cinema company Fathom Events decided to expand its annual Studio Ghibli series, screening “Spirited Away,” “Princess Mononoke” and other Hayao Miyazaki classics for five nights each instead of just one or two. Fathom Events Chief Executive Ray Nutt said that the extended runs allowed those titles to gross 142% more than they had in the past.

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“Anime was one that did very well for us,” Nutt said. “The team is really good at sourcing content and then figuring out where the audiences drive tickets.”

Another type of product buoying the exhibition industry right now is faith-based programming, shepherded in large part by “Sound of Freedom” distributor Angel Studios.

During its presentation on Wednesday, Angel Studios unveiled its lineup of “stories that amplify light,” including an animated feature telling the biblical tale of David and a live-action drama about a German pastor who conspires against the Nazis during World War. II.

“Some of the faith-based things, especially in our part of the country — the Midwest — have had a lot of good traction,” Fetters said.

Nutt added that Fathom Events has also had “huge success” connecting with faith-based audiences by screening content such as episodes of “The Chosen,” a drama series chronicling the life of Jesus Christ. The latest season of the show generated $32 million at the box office, according to Nutt.

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Exhibitors make plea for more movies… and flexible windows

The greatest challenge facing theaters right now is a dearth of theatrical releases, exhibitors say. Theater owners urged studio executives at CinemaCon to put more films in theaters — and not just big-budget tent poles timed for summer movie season and holiday weekends.

“There’s been a bit of a shortage of good content because of the strikes and that sort of thing,” said Mark Shaw, owner of Shaw Theatres in Singapore. “And also, during the pandemic, we lost some of the audience. Trying to get that audience back into theaters is a bit of a challenge.”

“Whenever we have a [blockbuster] film — whether it be ‘Barbie’ or ‘Super Mario’ … records are set,” added Bill Barstow, co-founder of ACX Cinemas in Nebraska. “But we just don’t have enough of them.”

During an industry think-tank panel on Wednesday, Disney distribution executive Cathleen Taff defended the company’s decision to delay certain movies — including the animated film “Elio” and a live-action remake of “Snow White” — to 2025, explaining that at least some of those titles were not finished in time for a 2024 release.

“From a studio perspective … we need to walk in tandem together,” Taff said.

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“We have to pick some good dates and we had to do those shifts. And of course we thought about the theaters, but the reality is we’re not going to release an unfinished film.”

An additional issue affecting owners of independent theaters and smaller chains is studio-imposed three-week minimum runs for major movies. Multiple exhibitors told The Times that these businesses can’t afford to let one movie to take up a screen for three weeks because there simply isn’t enough population where they operate to fill seats for that long.

“If you run it for two weeks, the community has already seen it,” said Colleen Barstow, vice president of ACX Cinemas.

“There is no need to require three-week or longer commitments,” said Chris Johnson, chief executive of Classic Cinemas in Illinois. “If you have a hit, we will hold it.”

The next frontier: ‘alternative content’

One way that exhibitors are trying to fill the void of studio releases is by showing “alternative content” — from reissues of beloved films and screenings of TV shows to musical performances and sporting events.

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The best example of this phenomenon is AMC Theatres’ distribution of Taylor Swift’s “The Eras Tour” and Beyonce’s “Renaissance.”

Fathom Events, which has been in the business of alternative content for decades, is going further by attaching live and pre-recorded Q&As to their screenings, as well as handing out collectible merchandise as an extra incentive for audiences.

“You go to go to a regular movie, you buy the ticket, you watch the movie — I don’t mean to demean the movie experience by any stretch of imagination — but that’s pretty much it,” Nutt said. “With us, you are going to … get something special.”

Larger companies such as AMC have been partnering with studios to level up their merchandise game as well. See: the infamous “Dune 2” popcorn bucket, which inspired Disney to promise at CinemaCon to deliver a must-have “Deadpool 3” popcorn bucket.

“There are some studios that inadvertently make crude and rude popcorn buckets,” joked Marvel Studios president Kevin Feige during Disney’s presentation. “And then there are popcorn buckets designed by Deadpool.”

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

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Labubu maker Pop Mart is opening U.S. headquarters in Culver City

Pop Mart, the Chinese toymaker known for its collectible Labubu dolls, reportedly plans to open a new office building in Culver City as it seeks to expand its North American presence.

The 22,000-square-foot office will serve as Pop Mart’s new U.S. headquarters, according to real estate data provider CoStar, which earlier reported the deal.

Pop Mart, founded in 2010 in Beijing, is credited with fueling the frenzy over “blind boxes” — small, collectible toys sold in packaging that keeps the exact figure inside a surprise until it is unsealed.

The toymaker, which is publicly traded on the Hong Kong Stock Exchange, has nearly 600 physical stores across 18 countries, according to its September 2025 half-year financial report.

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Much of its recent growth has concentrated in the U.S. In the first half of last year, the company opened 40 new stores, including 19 in the Americas. In Southern California, it now has stores in Westfield Century City, Glendale Galleria, and Westfield UTC Mall in La Jolla.

The office building Pop Mart is moving into, named “Slash,” features leaning glass windows and a distinguishable jagged design. The 1999 building was designed by the Los Angeles architect Eric Owen Moss.

Pop Mart’s decision to root itself in L.A.’s Westside comes amid Culver City’s transformation from a sleepy suburb known for being the home to Sony Pictures Studios — to an urban hub, driven, in part, by the Expo Line station that opened in 2012.

Ikea recently announced plans to open a 40,000-square-foot store in Culver City’s historic Helms Bakery complex — its first in L.A.’s Westside — later this spring.

Big tech has played an important role in Culver City’s recent evolution. Recent additions include Apple, which has opened a studio and has been building a larger office campus; Amazon, which in 2022 unveiled a massive virtual production stage, and Tiktok, which in 2020 opened a five-floor office featuring a content creation studio. Pinterest has a new office in Culver City as of last month, according to the company’s LinkedIn account.

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

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After Warner Bros. merger, changes are coming to the historic Paramount lot. Here’s what to expect

With Paramount Skydance’s acquisition of Warner Bros. expected to saddle the combined company with $79 billion in debt, Paramount executives are looking to do away with redundant assets including real estate — and there is a lot of that.

Chief in the public’s imagination are their historic studios in Burbank and Hollywood, where legendary films and television show have been made for generations and continue to operate year-round.

“Both of these studios are in the core [30-mile zone,] the inner circle of where Hollywood talent wants to be,” entertainment property broker Nicole Mihalka of CBRE said. “It’s very prime real estate.”

When Sony and Apollo were bidding for Paramount in early 2024, their plan was to sell the Paramount property, but there is no indication that Paramount would part with its namesake lot.

For now, Paramount’s plan is to keep both studios operating with each studio releasing about 15 films a year, but the goal is to eventually consolidate most of the studio operations around the Warner Bros. lot in Burbank in order to to eliminate redundancies with the Paramount lot on Melrose Avenue, people close to Chief Executive David Ellison said.

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A view of the Warner Bros. Studios water tower Feb. 23, 2026, in Burbank.

(Eric Thayer / Los Angeles Times)

Paramount would not look to raze its celebrated studio lot — the oldest operating film studio in Los Angeles — because of various restrictions on historic buildings there. Paramount also has a relatively new post-production facility on site and will likely need to the studio space.

Instead, the plan would be to lease out space for film productions, including those from combined Paramount-HBO streaming operations. Ellison also is considering plans to develop other parts of the 65-acre site for possible retail use, as well as renting space for commercial offices.

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The studios’ combined property holdings are vast, and real estate data provider CoStar estimates they have about 12 million square feet of overlapping uses, including their studio campuses, offices and long-term leases in such film centers as Burbank, Hollywood and New York.

Century-old Paramount Pictures Studios is awash in Hollywood history — think Gloria Swanson as Norma Desmond desperately trying to enter its famous gate in “Sunset Boulevard,” and other classics such as “The Godfather,” “Titanic” and “Breakfast at Tiffany’s.”

The lot, however, is a congested warren of stages, offices, trailers and support facilities such as woodworking mills that date to the early 20th century. The layout is byzantine in part because Paramount bought the former rival RKO studio lot from Desilu Productions to create the lot known today.

Warner Bros. occupies 11 million square feet and owns 14 properties totaling 9.5 million square feet, largely in the United States and United Kingdom, CoStar said. About 3 million square feet of that commercial property is in the Los Angeles area.

The firm’s portfolio also includes the sprawling Warner Bros. Studios Leavesden complex in the U.K. and Turner Broadcasting System headquarters in Atlanta.

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Paramount Skydance occupies 8 million square feet and owns 14 properties totaling 2.1 million square feet, according to CoStar. In addition to its Hollywood campus, Paramount’s holdings include prominent buildings in New York such as the Ed Sullivan Theater and CBS Broadcast Center.

Warner Bros. operates a 3-million-square-foot lot in Burbank with more than 30 soundstages — along with space for building sets and backlot areas — where famous movies including “Casablanca” and television shows such as “Friends” were filmed. Paramount’s 1.2-million-square-foot Melrose campus anchors a broader network of owned and leased production space, CoStar said.

Paramount’s lot is already cleared for more development. More than a decade ago, Paramount secured city approval to add 1.4 million square feet to its headquarters and some adjacent properties owned by the company.

The redevelopment plan, valued at $700 million in 2016, underwent years of environmental review and public outreach with neighbors and local business owners.

The plan would allow for construction of up to 1.9 million square feet of new stage, production office, support, office, and retail uses, and the removal of up to 537,600 square feet of existing stage, production office, support, office, and retail uses, for a net increase of nearly 1.4 million square feet.

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The proposal preserves elements of the past by focusing future development on specific portions of the lot along Melrose and limited areas in the production core, architecture firm Rios said.

The Warner Bros. and Paramount lots “are two of the most prime pieces of real estate in the country,” Mihalka said. “These are legacy assets with a lot of potential to be [tourist] attractions in addition to working studios.”

Hollywood is still reeling from previous mergers, in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.

Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.

The benefits have been slow to materialize, but Mihalka predicts that the tax credits and desirability of working close to home will lead to more studio use in the Los Angeles area, including at Warner Bros. and Paramount.

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“These are such prime locations that we’ll see show runners and talent push back on having shows located out of state and insist on being here,” she said. “I think you’re going to see more positive movement here.”

Times staff writer Meg James contributed to this report.

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How our AI bots are ignoring their programming and giving hackers superpowers

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How our AI bots are ignoring their programming and giving hackers superpowers

Welcome to the age of AI hacking, in which the right prompts make amateurs into master hackers.

A group of cybercriminals recently used off-the-shelf artificial intelligence chatbots to steal data on nearly 200 million taxpayers. The bots provided the code and ready-to-execute plans to bypass firewalls.

Although they were explicitly programmed to refuse to help hackers, the bots were duped into abetting the cybercrime.

According to a recent report from Israeli cybersecurity firm Gambit Security, hackers last month used Claude, the chatbot from Anthropic, to steal 150 gigabytes of data from Mexican government agencies.

Claude initially refused to cooperate with the hacking attempts and even denied requests to cover the hackers’ digital tracks, the experts who discovered the breach said. The group pummelled the bot with more than 1,000 prompts to bypass the safeguards and convince Claude they were allowed to test the system for vulnerabilities.

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AI companies have been trying to create unbreakable chains on their AI models to restrain them from helping do things such as generating child sexual content or aiding in sourcing and creating weapons. They hire entire teams to try to break their own chatbots before someone else does.

But in this case, hackers continuously prompted Claude in creative ways and were able to “jailbreak” the chatbot to assist them. When they encountered problems with Claude, the hackers used OpenAI’s ChatGPT for data analysis and to learn which credentials were required to move through the system undetected.

The group used AI to find and exploit vulnerabilities, bypass defences, create backdoors and analyze data along the way to gain control of the systems before they stole 195 million identities from nine Mexican government systems, including tax records, vehicle registration as well as birth and property details.

AI “doesn’t sleep,” Curtis Simpson, chief executive of Gambit Security, said in a blog post. “It collapses the cost of sophistication to near zero.”

“No amount of prevention investment would have made this attack impossible,” he said.

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Anthropic did not respond to a request for comment. It told Bloomberg that it had banned the accounts involved and disrupted their activity after an investigation.

OpenAI said it is aware of the attack campaign carried out using Anthropic’s models against the Mexican government agencies.

“We also identified other attempts by the adversary to use our models for activities that violate our usage policies; our models refused to comply with these attempts,” an OpenAI spokesperson said in a statement. “We have banned the accounts used by this adversary and value the outreach from Gambit Security.”

Instances of generative AI-assisted hacking are on the rise, and the threat of cyberattacks from bots acting on their own is no longer science fiction. With AI doing their bidding, novices can cause damage in moments, while experienced hackers can launch many more sophisticated attacks with much less effort.

Earlier this year, Amazon discovered that a low-skilled hacker used commercially available AI to breach 600 firewalls. Another took control of thousands of DJI robot vacuums with help from Claude, and was able to access live video feed, audio and floor plans of strangers.

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“The kinds of things we’re seeing today are only the early signs of the kinds of things that AIs will be able to do in a few years,” said Nikola Jurkovic, an expert working on reducing risks from advanced AI. “So we need to urgently prepare.”

Late last year, Anthropic warned that society has reached an “inflection point” in AI use in cybersecurity after disrupting what the company said was a Chinese state-sponsored espionage campaign that used Claude to infiltrate 30 global targets, including financial institutions and government agencies.

Generative AI also has been used to extort companies, create realistic online profiles by North Korean operatives to secure jobs in U.S. Fortune 500 companies, run romance scams and operate a network of Russian propaganda accounts.

Over the last few years, AI models have gone from being able to manage tasks lasting only a few seconds to today’s AI agents working autonomously for many hours. AI’s capability to complete long tasks is doubling every seven months.

“We just don’t actually know what is the upper limit of AI’s capability, because no one’s made benchmarks that are difficult enough so the AI can’t do them,” said Jurkovic, who works at METR, a nonprofit that measures AI system capabilities to cause catastrophic harm to society.

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So far, the most common use of AI for hacking has been social engineering. Large language models are used to write convincing emails to dupe people out of their money, causing an eight-fold increase in complaints from older Americans as they lost $4.9 billion in online fraud in 2025.

“The messages used to elicit a click from the target can now be generated on a per-user basis more efficiently and with fewer tell-tale signs of phishing,” such as grammatical and spelling errors, said Cliff Neuman, an associate professor of computer science at USC.

AI companies have been responding using AI to detect attacks, audit code and patch vulnerabilities.

“Ultimately, the big imbalance stems from the need of the good-actors to be secure all the time, and of the bad-actors to be right only once,” Neuman said.

The stakes around AI are rising as it infiltrates every aspect of the economy. Many are concerned that there is insufficient understanding of how to ensure it cannot be misused by bad actors or nudged to go rogue.

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Even those at the top of the industry have warned users about the potential misuse of AI.

Dario Amodei, the CEO of Anthropic, has long advocated that the AI systems being built are unpredictable and difficult to control. These AIs have shown behaviors as varied as deception and blackmail, to scheming and cheating by hacking software.

Still, major AI companies — OpenAI, Anthropic, xAI, and Google — signed contracts with the U.S. government to use their AIs in military operations.

This last week, the Pentagon directed federal agencies to phase out Claude after the company refused to back down on its demand that it wouldn’t allow its AI to be used for mass domestic surveillance and fully autonomous weapons.

“The AI systems of today are nowhere near reliable enough to make fully autonomous weapons,” Amodei told CBS News.

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