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Europe’s T.V. Business Model Gets Shaken Up by Streamers.

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Amid U.S. streamers still driving local market growth, producers of T.V. in the continent of Europe are trying to decide with the Hollywood studio model of business -in which Netflix and other streaming services have all rights to their content in exchange for full-financing and a cost in exchange for a fee — as well as the current European model of co-productions, which leaves independent producers with backend and allow the indie producers more creative control.

But this is beginning to change.

Due to the E.U.’s Audiovisual Media Services Directive (AVMS), which is currently in different states of being implemented across Europe, There are signs that the most prominent platforms are gradually becoming more flexible about structured agreements. In any case, it’s what we hope to see in the future.

The directive states that streaming companies must provide 30% of European content to European subscribers. However, on top of it, E.U. nations are introducing national-specific laws that require streaming services to directly return a certain percentage of their earnings in every European country in which they operate. Certain countries like France and Italy are currently making law changes that force Netflix, Amazon Prime, Disney Plus, and other streaming services to make local investments through independent producers. They will also ensure that the producers retain part of their rights.

“To begin with we welcome all of the opportunities by the streamers in every place in Europe,” claims Martin Moszkowicz, chairman of the government table of German influential Constantin Film. He explains that platforms like Netflix, Amazon Leading Movie, and Disney Plus “already are trading a fortune throughout Europe in local-language [content] and international English-language shows.”

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A report released by Enders Analysis, a London-based company Enders Analysis says many Western makers “have come to prioritize streaming programs when begging their finest projects.” The report also noted that Netflix is considered the top producer of scripted European content in 2020ahead of the E.U.’s most significant public broadcasters. Disney currently has 60 European scripts waiting to be delivered in 2024.

However, while Moszkowicz is a fan of stream giants’ investment, his view is that their business model has become “ludicrous.”

“Number rights are retained; there is number upside,” he says. “There is nothing that we — and also the artists, the creative people that we employ — participate in the billions and billions of dollars of success that the streamers have.”

Moszkowicz states that German producers “will use AVMS as much as possible to get a bigger part of the pie” and believe that “ultimately we will succeed.”

Here’s a look at what’s happening in the conflict between the streaming giants and producers in the four most coveted continent European regions.

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France

France in the E.U., where the government has recently approved the AVMS regulation, has set the way.

The new rules require that the streamers’ investments be put into agreements for independent productions where the rights return to French producers after 36 months.

This means that one-third of the money invested by the streamers will continue to be poured into agreements with French producers in flat-fee contracts, which do not permit the streamers to keep their rights.

Although it is a necessary regulation, the new rules raise questions about how these investment obligations will be used and who.

The rules allow competition between French producers for inclusion within the “two-thirds of the investment” corridor, according to French producer Alexandra Lebret. She is the director of the lobbying organization The European Makers Club.

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“How may the streamers select that are the companies who will have a way to hold on to rights, and those that won’t?” she asks.

In March, Netflix made over EUR200 million ($220 million) in investment in France when it announced its 2022 lineup comprised of French originals, 10 of which are T.V. shows.

This includes “Standing-Up,” about France’s stand-up comedy scene. It was directed by “Call My Agent” creator Fanny Herrero.

Lebret notes that it isn’t yet understood what Netflix will select projects that can take advantage of the updated rules. He also mentions that Netflix’s most significant French production, “Lupin,” currently filming its third season, is being produced under a flat fee arrangement.

Germany

In Germany, which is the country where the Audiovisual Media Services Directive regulation is set to effect, there have been limited flexibilities by streamers when making deals for high-end productions.

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“The more exciting the property, the greater your possibilities you will get through with this [structuring a package where rights return],” Moszkowicz explains. Moszkowicz.

One example of this is Constantin’s show “We Children From Bahnhof Zoo,” released via Amazon Prime Video in Germany.

It was also filmed in co-production with several partners, including the ITV-owned Cattleya in Italy and Fremantle managing international sales.

Constantin is currently putting together the premium television show “Smilla’s Sense of Snow,” which is based on Peter Hoeg’s Peter Hoeg thriller, for which Moszkowicz believes he’ll be able to put together an original co-prod that combines streaming partners as well as other kinds of broadcasters.

Moszkowicz emphasizes his belief that in pitching large-budget projects, the European government broadcasters and the pay-TV players offer an alternative that is viable to streamers.

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In 2013 Constantin, along with veteran German TV executive Herbert Kloiber joined forces to create a company known as High-End Prods. to create event-driven programming specifically designed for Europe’s pay- and free-TV market.

Moszkowicz says that the sum of the sources of the pubcasters, including German’s ARD and ZDF and France’s TFI and the Italian RAI, as well as The BBC within the U.K., is far greater than the budgets of some of the streamers.

“It’s practically billions each year and they don’t get enough product, certainly since a lot of the really intriguing stuff gets ordered on a global foundation from the streamers,” the author says.

High End will soon be the first to announce its slate.

Spain

Even while AVMS isn’t yet fully implemented in Spain, there is a feeling that streamers have renounced their rights-of-all-rights rule.

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“I think that at the beginning they tried to divide and conquer,” says director-producer Alvaro Longoria, who runs Spanish independent Morena Films.

However, other players are entering the market, including Disney, Apple, and Paramount.

“A lot of them realize that they have to be flexible if they want to get the best talent,” says the expert.

Longoria, whose Christmas-themed comedy film “Reyes vs. Santa” was acquired by Amazon in some countries and believed it significant to see the symbolism behind why Netflix has embraced “Parallel Mothers,” the most recent film by Pedro Almodovar — who was Cannes jury chair in 2017 was critical of the streaming company.

Netflix recently acquired the exclusive Latin American rights on “Parallel Mothers.”

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“The whole business model is changing all the time and streamers are the first ones that are happy to adapt,” he says.

Italy

In Italy In Italy, in a country where AVMS deployment is amid a slowdown, there are some minor but essential signals that streamers are beginning to move.

“Some dynamics with the platforms are changing,” says Rosario Rinaldo, head of production company Cross Prods, owned by German’s Beta Film.

Cross is producing an edgy Amazon Italy Original drama, “Prisma,” for which it will be granted SVOD rights that will last for the rest of time

Rinaldo will be able to market “Prisma’s” free T.V. rights throughout the world, following the show exclusively shown on Amazon worldwide for a specified time.

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“There is more attention toward producers’ needs during development,” Rosario claims. She cites the willingness of Netflix and Disney to collaborate on projects in conjunction with Cross.

The best instance of the Italian market for a significant U.S. player willing to work with Europe’s cooperative production strategy is HBO and RAI’s pubcaster “My Brilliant Friend,” the series based on Elena’s novels Ferrante.

In February, the 3rd installment in the show “Those Who Leave and Those Who Stay,” was aired on RAI with a record-breaking audience before it was released in the States with HBO and HBO Max.

“As a company, the look for forms of collaboration between numerous kinds of platforms and other broadcasters, including community broadcasters, is clearly element of what I’michael seeking,” says “My Brilliant Friend” company Lorenzo Mieli.{Recently|Lately}, Mieli, through his Fremantle-owned Apartment shingle, was capable of putting together the three-way co-prod between RAI, the Franco-German channel Arte, and Netflix.

They’re producing famous auteur Marco Bellocchio’s next T.V. show, “Eastern Notte,” about the assassination and kidnapping of the former Italian premier Aldo Moro by Red Brigades terrorists.

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“The possibility of business models evolving — and disrupting monolithic models — is born from our ability as producers to propose projects that make this disruption worth it,” He states.

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Apple Plans To Double Its Digital Advertising Business Workforce.

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The move raises industry concerns following the launch of privacy guidelines which make it impossible to create ads that are tailored to iPhone users

Apple plans to more than double its workforce within its rapidly growing digital advertising business in less than 18 months after it enacted radical privacy rules that crippled its larger competitors in the lucrative business.

The iPhone maker has about 250 employees per LinkedIn advertising platforms team. On the Apple careers website, it’s looking to fill additional 216 positions, which is quadruple the 56 positions that it had hired in the latter half of 2020. Apple denied the claims. However, it declined to provide any further details.

The digital advertising industry has been apprehensive over Apple’s plans for advertising since the company introduced privacy regulations this year, which have shaken up the market for digital ads worth $400 billion and made it more challenging to customize ads for Apple’s one billion+ iusers Phone .

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Since the new policy was implemented, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue and a significant amount in market valuations, even though other contributory factors exist.

“It was almost like a global panic,” Jade Arenstein, global service director at Incubate, a South African-based marketing performance firm, was quoted as saying about the impact of Apple’s recent changes.

The once-flourishing advertising business is “incredibly fast-growing”, according to an ad for jobs. The business has grown from a mere few hundred million dollars in revenue in the last quarter of 2010 to an estimated $5bn in the current year, according to research firm Evercore ISI, which expects Apple to be able to grow its $30 billion advertising revenue within four years.

Compared with Google and Facebook and their 2021 revenue from advertising was $115bn and $209bn. For instance, Apple’s business in advertising is small. The digital advertising industry is worried that it will increase due to establishing rules that critics and rivals believe provide it with an advantage.

“Building new ad systems to effectively compete with incumbents with tens of thousands of employees and 10 to 20 years of maturity would normally be an impossible task,” said Alex Austin, chief executive of the ad tech group Branch. “Unless,” he added, “you were somehow able to disadvantage those competitors on your platform.”

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Apple has been for a long time the most prominent Big Tech outlier for not taking part in “surveillance capitalism” — the practice of offering customers free services but making money on their data through targeting ads on them.

“We could make a tonne of money if we monetized our customers — if our customers were our product,” chief executive Tim Cook said in 2018. “We’ve elected not to do that.”

However, with Apple having twice the number of developers who can purchase ads on the App Store over the last two years and preparing plans to expand, the critics are seeing Cook taking a significant turn.

David Steinberg, chief executive of Zeta Global, a marketing technology firm, said Apple had been “Machiavellian” and “brilliant” in implementing privacy regulations that required rivals to revamp their advertising infrastructure while creating an opening to fill the gap.

“They could build out (their advertising business) dramatically (and) the ‘air cover’ is they are protecting the consumer’s privacy,” said the researcher. Added.

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Apple did not comment on its long-term plans. The job advertisements tell prospective employees that the company’s goals are nothing more than “redefining advertising” for a “privacy-centric” world.

The 216 positions Apple wants to fill are managers and designers of products, in addition to data engineers and sales experts.

An advertisement for an engineer, released on August 24, is a reference to “Apple’s most confidential and strategic plans” and explains how the company plans to “build the most secure technology-driven, technologically sophisticated . . . Supply (Marketplace) Platform and Demand Side Platform”.

These are the core aspects of an ad tech company that allows advertisers to purchase and sell ads across multiple exchanges, possibly advertising in mobile applications downloaded through the App Store. Apple may be able to consider apps for mobile “first-party” data because all activities take place on the iPhone, which is in line with its privacy regulations which ban third-party apps’ contentful monitoring of users.

The positions are predominantly located in the US. However, there are at least 27 roles in Europe and 12 in China and 12 in India and four located in Japan, as well as two positions in Singapore.

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“That’s a giant team — that’s bigger than most small companies,” Arenstein said. Arenstein. “Wherever there is smoke, there is fire, and that’s some smoke.”

Apple has never been averse to advertising by itself. Its CEO Steve Jobs even tried to create an in-app advertising business in 2010, so that iPhone apps would remain completely free. Cook is against how personal information is purchased and traded by opaque third parties without iPhone users’ consent.

Yet, Apple set the rules regarding how advertisements should function and later expanding into this very subject is seen by many as unsatisfactory.

At the moment, it’s more secure — in terms of the economy of surveillance using an Apple phone over one that is a Google phone, as Google has designed its products to support surveillance, while Apple isn’t, in its essence, an advertising firm,” said Claire Atkin co-founder at Check My Ads, a surveillance agency. “But if Apple suddenly delves into that realm, they won’t have a that competitive advantage.”

Apple might be putting its image at risk if regulators and consumers oppose its privacy claims which have been a significant part of the recent iPhone campaigns. If the argument prevails, Apple would have an unobstructed runway.

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Margo Kahnrose, Chief Marketing Officer at Skai, an omnichannel advertising platform, has said that she believes it “makes absolute logical sense” for Apple to develop its advertising network, following the lead of Google, Facebook and Amazon.

Adtech’s power has, she explained, for a long time been flowing from the decentralized “open web” to “walled gardens” run by one company that can control how ads are purchased and served, as well as how they are measured and tracked.

“The world has been unnerved by Apple’s ambitions for a long time,” she said. “There are a few companies that have vast quantities of power, and Apple is the one that is sleeping.

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Six Ways To Maintain A Growth Mindset While Running A Business.

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To be successful as an entrepreneur, starting your business with the appropriate mentality is essential. A growth-oriented mindset implies always striving to improve the product or service you offer or the ability to communicate with people in your industry. Many companies start as small, but they expand in time to become massive businesses that impact people’s lives in the millions. However, this kind of growth isn’t a quick process – it requires a lot of time and effort, and it’s all with constant improvement.

Six Ways to Maintain a Growth Mindset While Running a Business.

1.) Change your outlook

If you’re in the business of managing, it’s easy to become caught up in the day-to-day and forget about the bigger perspective. However, if you’d like your business to flourish, keeping an attitude of growth is essential. Being able to open your mind to be fully engaged in the things you believe are the best for you is crucial.

2) Are you in your comfort zone?

One of the difficulties of managing a business is it’s easy to get into a routine. Once you’ve discovered a method that works, it might be tempting to stick to it. However, staying with the same formula with different outcomes isn’t intelligent. If you’re looking for your business to expand, make sure you alter things with slight adjustments to ensure that your business feels fresh and exciting.

3.) Be prepared to take the risk

Nobody said creating and running a company was easy, regardless of whether you’re putting together an exercise calendar or an entirely new line of clothing. It’s one of the most challenging tasks you’ll ever have to do. If you want to succeed, you must have a mindset of improvement. Create a staff around you. Find people who can assist your company in its growth. It’s not necessary to shoulder all the responsibility for your company. After all. Make sure you take sensible risks. There is undoubtedly a danger involved in taking risks, but when you take calculated risks, you reap a calculated reward. The most successful entrepreneurs realize that sometimes it takes a long time to bring an idea to fruition. Therefore, they remain in the game and push forward.

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4.) Connect with others who are adamant about your abilities

One of the most effective methods to keep a positive mental attitude is to surround yourself with people who are confident in your abilities. If you’re always around optimistic people who believe in your ambitions, It’s easier to stay inspired and push ahead.

5) Discuss your concerns

If you’re in charge of an enterprise, it’s simple to become distracted by the day-to-day and forget about the bigger overall picture. It’s possible to worry about how to make ends meet and meet deadlines or having to deal with demanding customers. Discussing these concerns with the rest of your entrepreneurial friends and colleagues is essential to ensure that things stay on the right track.

6) Be focused on progress, not perfect

When you’re an entrepreneur is effortless to be caught in the pursuit of perfection. You’d like your service or product to look flawless before launching it, but the reality is that it’s impossible to be perfect. It is essential to keep in mind that the pace of progress will always be better than perfect. Start by taking it one day at a. The advantage of keeping a single day in mind at a time is that even should things not go as scheduled. It doesn’t matter since tomorrow is another day to start from scratch. Create workable goals. After creating some feasible goals, please keep track of them and assess how they performed based on outcomes rather than the amount of time and effort poured into them.

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What Is Good Debt and Bad Debt for a Small Business?

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There are two kinds of loans for small companies. Find out which one is best and which one is not.

For many people, the term “debt” has negative connotations. However, when setting up a small-sized company, it is not necessary to stay clear of debt completely. There’s “good debt” that is essential for growth when you start an enterprise, but there’s “bad” debt that could cause long-term harm to your financial situation.

The difference between good and bad debt and how to manage your company’s finances to keep them in check.

Good debt in contrast to. Credit card debt What’s the distinction?

Lyle Solomon, principal attorney for Oak View Law Group, states, “good debt returns money to your pocket, but bad debt takes money from your pocket.”

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“Debt that increases your future net worth is considered good debt, and debt that reduces your future net value is referred to as bad debt,” Solomon added.

Good debt

Kenneth Hearn, fund manager and director of research for Swiss One Capital AG, describes good small-sized business loans as the money borrowed to finance things that contribute to the development and growth of their company.

“This could be for anything from paying for improvements to meet new safety regulations or expanding your human resources team,” the man explained. “A general rule of ‘good debt’ is debt that is low-interest, or will increase the overall net worth of your business.”

Paying off your debts shows you have a good payment history, which your credit rating can show. The more debt types you can manage responsibly and pay off, the more favourable. This means that more lenders will permit you to get in the future.

Bad debt

When a lender takes out money to purchase an item that doesn’t increase in value or produce revenue, it is often regarded as bad credit. Any loan or borrowed funds that could lower the value of your company’s net future must be avoided. The signs of bad debt are the high-interest cost, fees, and strict loan repayment conditions.

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Examples of lousy credit include cash advances and payday loans, usually called “predatory loans.”

“These loans . Target people with bad credit or low income with few options to consider,” Solomon added. Solomon. “[They often] come with exorbitant interest rates and unethical terms.”

Things to think about when making a “good debt an investment

If you are considering getting a loan, entrepreneurs in small businesses should consider the type of debt they’ll be taking on. If the lender takes out a loan for an asset that isn’t going to depreciate, for example, real estate, education, or their own company, on favourable terms, it’s considered to be a good debt.

“Healthy debt entails borrowing money for investing in items that do not depreciate over time,” Solomon explained. Solomon. “Keep the above in mind when you borrow money to run your business. Use the funds to minimize the chance of a catastrophe or loss.”

One approach small business owners may employ when borrowing money is to commit to the lowest rate of interest possible.

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“Your interest payments are tax-deductible,” Hearn said. Hearn. “These tax deductions could help you get over the red line and into the realm of profitability. If you manage your cards correctly, interest rates can benefit you rather than against you.”

Strategies to get out of credit

If a small-sized business owner is trying to escape the burden of bad debt, There are options to overcome the situation. First, examine the company’s budget and financial statements.

“Financial management software has come a long way over the past couple of decades, and having proper procedures for data entry and its use from the start of your business is crucial to managing good or bad debt,” Hearn said. Hearn.

For business owners who are in “bad debt,” Solomon advised consolidating debts to one loan.

“Debt consolidation is an intelligent debt management approach to ensure you’re paying the lowest rates and on the most optimal or flexible terms available,” said the expert to CO–. “Such a move would benefit your business, as you can avoid worries regarding payments.”

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Companies must ensure they have the funds to repay this consolidating loan, or it could negatively affect their business credit and financial situation. However, if used properly in the right way, consolidating or restructuring multiple debts is an innovative method of managing the finances of small businesses.

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