RWLGS Entertainment Real Estate Practice
“Give me a one-handed economist!” -Harry Truman
In our world the economics are always different from other industries and we thought we should begin a series of top level updates for our partners, clients, and stalkers.
Such updates are inherently timely and will likely quickly expire so we’ll keep it short and to the point. If you don’t look at the date at the top you’ll be confused.
Overall the state of the entertainment industry is quite good. Interest in consumption has never been higher and all sides of the puzzle are fitting together nicely. The writers are back writing, the actors are back acting, and the producers are back producing. Game designers are using more sound stage space and “community” uses for production real estate found some new customers during the strike.
The end of the SAG AFTRA strike brings us to an interesting place. The good news is that we’re back to work. Productions who were fiercely writing scripts in the gap between the two strikes are ready to move quickly (like today) back into the sound stages. The next two weeks will ramp up fast and we’ll see just how prepared the producers were (HINT: they were ready).
The new actors’ agreement is a dual-edged sword. We are back to work, but, at what cost? Over the next days and weeks much will be said about the “wins” for the actors, but, let’s be honest, the studios didn’t sign a death wish. The delay in signing a contract was not so much a philosophical disagreement as a finance puzzle to be addressed. There will be fractional improvement in the world of middle-class actors, but those gains will be offset and then exploited by the producers.
HEADWINDS:
- Streaming services are going to carry less content, perhaps a lot less content.
- The studios are going to get more selective with green lights.
- Producers are going to much more aggressive on price for below-the-line costs.
- XR is normalizing. This is good and bad. It may limit higher-profit rental days.
- If a developer is mid-build on a volume stage they may want to reprice and rethink.
TAILWINDS:
- They’re going to get rid of classics and oddities and continue to make their new projects.
- The backlog of productions is so substantial that we’ll rapidly get back up to capacity, and get a fairly quick indication of supply in the Studio Real Estate market.
- XR is normalizing. The cost of volume production is coming down rapidly. Technology explodes in use when it becomes a cost savings for productions — this may be happening in real time.
Overall, this winter may be slightly different than its predecessors — there will be more work through the normally quiet holiday season, and we’ll be watching pricing with eyes wide open. We are in a period of extreme growth in traditional supply (LAX, ATL, and NY), so pricing will be more elastic than before the strike, and all of the stakeholders need to be looking for price and amenity advantage.
In conclusion, on one hand we are in a strong growth period, and on the other hand we will see some price pressure with expanding supply.
ABOUT RWLGS’ ENTERTAINMENT REAL ESTATE CONSULTING
RWLGS is a management consultancy that specializes in Entertainment Real Estate (Film, Media, and Recording Studios) development — from concept to finished build and operating — and related industries. We provide expert guidance for developers, land owners, tribal investment / reservation business committees, academic institutions, and more. We offer comprehensive support in designing, building, operating, and marketing feature film and television production facilities, in addition to leading-edge XR / virtual production environments.
RWLGS’ Entertainment Real Estate team is comprised of the leading authorities on Film and Media Studio development in the world — period. Our consulting services include Feasibility, Government Relations, Design / Build guidance, Turnkey (pop-up) Sound Stage Design / Build / Delivery, Management & Operations, Jobs Creation (workforce development, crew training), Strategic Partnership Development (industry vendors, capital investment, supply sourcing / vertical integration, etc.), Native American tribal investment, Specialty Tax and other incentives, and more.
Schedule an exploratory call or coffee meeting to discuss your needs and see what happens when you “sit at our table.”
ABOUT BRIAN RAWLINGS – Founder, RWLGS Inc.
A distinguished Entertainment industry veteran and former Vice President of Creative, Corporate at the Walt Disney Studios, Brian Rawlings brings 30 years of globally acclaimed success to his latest venture: RWLGS. The scope of Brian’s professional experience is broad, and his seminal body of work continues to touch the hearts of millions of people, while his Business acumen, Brand Marketing expertise, and acute instinct have generated more revenue in one year than most companies make in a lifetime.
During his 17-year tenure of leadership at Disney, Brian served as a creative pioneer, leading an array of feature films and animated movies; television programs; over 40 films; 22 “number-one” records; and over 30 Gold, Platinum, and GRAMMY ® award-winning projects, while also guiding many aspects of theme park ride development.
Brian Rawlings’ celebrated accomplishments have become part of the everyday lives of generations of families around the world with feature films and television franchises from Hannah Montana, The Cheetah Girls, and pop-culture phenomenon High School Musical to hits by artists as diverse as Reba McEntire and Uncle Kracker.
A creative genius who works across industries, Brian’s expertise also includes Business Economics and Finance, foreign sub-pub deals, HR, large-scale business operations, licensing, business development, and copyright IP digitization.
Brian is a cornerstone of the company’s brain trust, serving as a consultant, connector, and catalyst for new ventures — a thought leader providing actionable solutions for global corporations, startups, tech companies, and private sector projects. Whip-smart, grounded, and disarming, he is unafraid to challenge ideas, assumptions, or the status quo because he knows what works — and what won’t.