Before the WarnerMedia and Discovery merger revealed Warner Bros. Discovery, Michael Brooks oversaw Warner Bros. International Television Productions in Australia and the content and licensing businesses.
Post-merger, Brooks is now managing director and head of studios of the bigger business and head of the studios in Australia and New Zealand. That is a wide remit that includes local production, content licensing, theatrical distribution and home entertainment.
For the theatrical distribution, Warner Bros. Discovery (WBD) partners with NBC Universal who manage the day-to-day business. Another partnership is key to the home entertainment division where WBD uses Village Roadshow.
The recently much-discussed licensing deals are all handled directly by WBD, Brooks explained to Mediaweek: “Content licensing for HBO, HBO Max [since rebranded Max], Warner Bros., Warner Bros. features, content from Discovery brands which includes output deals for Foxtel and others are overseen by us.”
Format sales are slightly more complicated. “It depends on where the format might be coming from. We now have access to a huge array of formats from Discovery. We work strategically with various groups. We have a FTA network in New Zealand with Three. We have to make sure if we are going to be launching localised franchises that it also works with our local networks.”
Brooks said his broader remit now allows the business to look at all the brands within the group and how they might support other parts of the company. “The best example might be the production agreement we have with Foxtel. That came about from licensing discussions for HBO content. They all work well and co-exist together.
“The Foxtel output deal has been successful for everybody. They are thrilled with the results and it helped launch our local drama business with The Twelve and Love Me. Both series attracted 10 AACTA nominations each. Working with Foxtel’s Amanda Laing, I really wanted this deal to work for them. We also took over production of some of Foxtel’s most beloved titles like Selling Houses Australia.”
Love Me made for Foxtel by Warner Bros. International Television Production
When will Max launch in Australia?
When the recently-extended HBO deal with Foxtel expires it is expected that WBD will launch the Max streaming service in Australia. Speaking recently to Mediaweek, Foxtel chief executive Patrick Delany spoke in terms of “if they launch Max” here.
It does look like the service will reach Australia. But not in the next 18 months. When asked about Max locally, Brooks said: “There is no specific timeline for the market launch in Australia however it is not in our plans for 2024.”
Streaming services impact on rights
The growth of streaming services has impacted the way content is sold. “There has been a radical change in the last 18 months which originally began with the changes Netflix started to make,” said Brooks. “Two years ago we were all about direct-to-consumer (D2C). Now we are still very much about D2C, but we are also about doing it the right way through strategic partnerships to make sure we monetise our content where we can do that.
“There is room for different deals. You don’t need exclusivity across every piece of content. There is content that drives the core of subscribers and content that can be available non-exclusively.”
Brooks emphasised that the local business runs independently from the broader studio business. “Most of the content that comes from our licensing business is content funded by our US-based studios. If we do a local drama in Australia we are competing with every other production company to make up the funding. That means most of the time we are not distributing our own local productions. To compete in the local market we need a third-party distributor, we need the offsets, we need the local funding.”
Warner Bros. Discovery revenue sources
When asked about which revenue stream is critical to the business in Australia, Brooks replied: “We have some of the best content in the world from HBO. It is in huge demand. The international and local streamers all need a content pipeline and there is significant value in that content.”
When asked about local commissions, Brooks noted there is still more production made here than many places in the world. “A lot of the US production is now being sent offshore purely based on cost savings. We must compete for the best skilled creative people because there is so much work goes on here.
FBoy Island is a local production made for Binge
“We are seeing a bit of a shift here with FTA and their content strategies. Some of them are sticking with a strip model, but some are playing one or two nights [a week] strategies. I understand that as it’s a huge investment to screen a series across four nights a week and if it falls over you have a huge hole [in the schedule].
“The streamers are certainly very active and we do quite a lot of content for Paramount+. We also do a lot of content for Binge.
“If Max launches here we will also be doing a lot of content for Max. But we won’t be the only local production company making content for Max. It will be able to access the best of the best content available. For the service to work, it has to have access to the best content.”
Local production orders are changing and streamers don’t order a huge number of episodes, noted Brooks. “The orders for number of episodes from streamers are coming down and they are looking for acquisition of subscribers.
“One new project is The Betoota Advocate Presents which launches on June 14 on Paramount+. That is a four-part series and it will be marketed similar to a broad FTA series because the broadcaster wants the subscriber engagement. Shorter commissions, less episodes, but content that is highly marketable is what streamers are looking for.”
The Betoota Advocate Presents
WDB has been keen to make sure it has a diversified local production slate. Brooks said that means: “Unscripted franchises, big entertainment franchises, factual, drama and this year we are also in animation. We are then going to be making our first feature film.”
As to customers for drama product, Brooks agreed it can be challenging to sell drama to FTA broadcasters. “It can depend on the project. It is harder for them from a cost perspective and to be able to get the audiences.”
When it comes to the biggest local producer of content, Brooks said it is hard to measure. “There is us, Endemol Shine Australia (ESA), Eureka, and ITV. ESA is ahead when you look just at hours. After that it is a close competition, and it keeps everybody on their toes.”
Drama quotas
Brooks is supportive of moves to safeguard local production. “I can understand if you are a small production company you are very keen to make sure they are things to assist you in what is such a competitive landscape. Some level of responsible level of regulation, whether it is quotas or other initiatives, is important. We have to be able to protect the local production business.
“If we launch Max we will be connected to a large streaming service and we will look at that and how we can support local production. There needs to be some sort of system in place that is not too onerous.”
The Twelve was a local production for Foxtel
What’s ahead for Warner Bros. Discovery
“We will continue to work at monetising our content and continue our licensing agreements. We are looking at everything from growing the AVOD business in this market. FAST channels are something everyone is looking at, but it is not clear if it will be a good business model or not. We also have a lot of local production underway.
“There is also a huge theatrical slate coming out of the studio starting with The Flash which launches this month. We then go into Barbie and later in the year is strong with Dune Part 2, Wonka and Aquaman and the Lost Kingdom.”
With feature films, WBD is keen to maintain a clear window for theatrical release. “We will make sure people are able to experience all that great content in cinemas. The theatrical release up front does help build the tail and that’s important trying to monetise all window cycles.”