THE PRODUCTION PULSE - December 2025
The screen industry is in the midst of a radical transformation, fueled by aggressive corporate consolidation, the rise of powerful AI, and a global pivot toward new consumption models. As the bidding wars rage and ad dollars chase eyeballs, the fundamental value of human creativity—emotional intelligence, original storytelling, and authentic connection—is being championed as the essential antidote. This December, the message is clear: the future belongs to those who are bold, adaptive, and unapologetically human.
As British Film Designers Guild President Jonathan Paul Green declared at FOCUS, “Our job isn’t just to produce images. It is to bring meaning.“
The creative force that is mathematician Edward Frenkel and Producers Without Borders Founder Kayvan Mashayekh challenged a full house at the London event to find the emotional intelligence an LLM can’t replicate—especially in the serendipitous atmosphere of holiday gatherings.
“We have to be in the culture,” said Wieden+Kennedy London Head of Production, Rich Adkins at Shots Out Of The Box. “We are problem-solvers and adapting.”
Our PSN India Partner attended Content London to share a behind-the-scenes look at their documentary portrait of legendary Indian singer-songwriter, Asha Puthli.
Screening rooms from LA to Berlin have recently showcased an award-winning documentary about a father-son reunion like no other co-produced by our Partners in Vietnam.
Read on for my monthly breakdown of the Hollywood bidding wars, ad convergence, and the production trends where real opportunities await the bold.
FILM AND TELEVISION
Labor Loses In Netflix vs. Paramount Battle For Warner Bros.
“It’s suddenly hit people that there are going to be almost no places to sell. These companies should be focused on investing in their own businesses rather than wasting tens of billions to buy up the competition.” (Variety)
Series Distributors Move Upstream To Co-Produce
“Looking to the future, ‘streamers will focus on big IPs which bring subscribers and increasingly co-produce with good distributors or studios which take the responsibility of packaging the productions. Before we would wait until a product was finished and then choose to distribute it or not. Now with co-production, we get in much earlier, at the script stage.’” (Variety)
Video Market Boom In APAC To Reach $104 Billion By 2030
“Streaming in the AsiaPacific is set for strong growth over the next five years. It will hit $71 billion by 2030, while pay TV will stagnate at around $33 billion. We’re seeing a more competitive region taking shape. China’s grip is loosening, while India and Japan are gaining ground.” (WorldScreen)
International Production Spending Drives Record Drama Revenues Down Under
“The international production surge proved particularly dramatic, with 20 foreign features filming in Australia generating a record AUD$1 billion ($661 million) in spending. International television and VOD productions added another AUD$458 million ($303 million).” (Variety)
Netflix Strategy In Purchase Of Warner Bros.
“As much as one wants to give the new company a chance, it is hard, at this moment, to resist the suspicion that the ultimate reason Netflix is buying Warner Bros. is to eliminate the competition.” (Variety)
Concerned Film Producers Lobby Congress Against Netflix-WBD Acquisition
“The note concludes by urging members of the House and Senate to speak out publicly against the acquisition and afford the potential deal “the highest level of antitrust scrutiny.” The stakes, the letter concludes, represent millions of jobs and a treasured art form.” (Variety)
Move To Unionize Hollywood Producers
“Hundreds of producers have quietly banded together to stave off what they see as their own extinction, forming a group called Producers United. The initial asks that this collective of power players is pressing for from studios and top platforms is to provide health insurance while production is active; to accelerate the traditional timeline of producer compensation rather than waiting until the final product is delivered; and to address the proliferation of producer credits in TV and film.” (Variety)
Microdrama Stakeholders Worldwide Gather To Map Their Future
“Profitability remains elusive for most players despite revenue growth. Among major platforms, DramaBox reported $12 million profit on $323 million revenue, while ReelShort projects $800 million in revenue but continues operating at a loss due to premium production costs and paid traffic acquisition.” (Variety)
Microdramas Take European Stage at Industry@Tallin
“I think we are underestimating China.” The appeal lies in stories that “go to the point. It’s not just trash: it’s about love, honesty, truthfulness. They have all the messages that we are trying to deliver in our films, they’re just doing it in a different form.” (Variety)
Turkish & U.S. Industry Vets Join In Shorties Studios
“Vertical storytelling, with its real-time data and analytics, gives us clear signals not only on what resonates, but also where the opportunities for virality, brand partnerships, and full 360-degree monetization truly live. I’ve seen how effective short-form and branded content can be, and this next chapter lets us build in that world with intention, craft, and world-class partners.” (Deadline)
Banijay & Mediwan Embrace YouTube At 20th Anniversary Paris Bash
“’YouTube is inventing a new building block for creation and a new building block for consumption.‘ Banijay and Mediawan, historically B2B companies selling programs to broadcasters, are now transforming into B2C players. “’We bring you the best IPs in the world, incredible production expertise, and brand safety, which is important for brands.'” (Variety)
Influencer Videos Now Attract 70% Of US And UK Eyeballs Weekly
“While younger age groups are the most avid viewers of influencer videos, around half (49%) of 55-64-year-old Internet users across the two markets are now watching influencer content weekly. This proportion has increased from 30% in Q1 2020 to 38% in Q3 2025 in the UK, and from 44% to 54% in the US over the same period.” (Ampere Analysis)
Digital US Network Adds Lionsgate Library To Movies-Only Offering
“While movies are readily available on major streaming services like Netflix and Prime Video, MovieSphere Gold represents an entire service devoted only to movie titles. This new digital network gives audiences access to acclaimed titles that were previously unavailable in this space, offering a richer, more diverse selection of films than ever before.” (THR)
Industry Push For Regional Collaboration Puts Co-Production In Spotlight At Cairo Film Festival
“Co-production, once viewed primarily as a funding lifeline, is now being reframed as a strategic tool, one that can both affirm cultural authenticity, as well as unlock new markets. Its value depends on what a filmmaker genuinely needs, whether that’s financing, expertise, or shared creative sensibilities.” (Variety)
Qatar Film Industry Strategy Revealed As Hollywood Ties Are Forged
“By expanding cooperation opportunities and attracting investment and forging international partnerships, we aim to build an ecosystem that is self-sustaining, globally connected, and fearlessly proud of its roots.” (Variety)
Pricey Film Packages Disappoint Buyers Who Praise The New AFM Location
“A functioning AFM is only worthwhile if films are getting bought and sold, and the noise from the sales rooms was of an industry juggling numerous issues in a struggling theatrical market. Many buyers complained about high prices — especially among the bigger projects — that simply don’t match today’s world.” (Variety)
Sales Up As Prices Plummet at Ventana Sur
“The main challenge is that buyers are paying less than before for the same type of projects.’ So AVOD is coming increasingly on agents’ radar. ‘The international market is undergoing significant change. The audience has become accustomed to watching films for free on AVOD platforms like Tubi and various YouTube channels.’” (Variety)
Hollywood Remains Top Production Location Despite Global Competition For Fewer Projects
“Los Angeles maintained its place as the global hub for film and TV production last year, even as the overall marketplace shrank. The U.K. is growing its share of the overall market, thanks to a surge in streaming and cable TV series shot there. Its marketshare grew from 6.6% to 8.8%.” (Variety)
Global Star Power Boosts A Continent At Marrakech Film Festival
“We’re at a moment when it’s important for international and regional films to be discovered not just in Europe but on the African continent. Marrakech can give these films a platform to launch internationally while remaining rooted in their region.” (Variety)
A Look Back At The Life And Work Of Rob Reiner
The seasoned Hollywood insider was active in state and national politics. Reiner (would) direct such beloved 1980s and ’90s films as “This Is Spinal Tap” (1984), “Stand By Me” (1986), “The Princess Bride” (1987), and “When Harry Met Sally” (1989), and dramas “Misery” (1990) and “A Few Good Men” (1992). (Variety)
INCENTIVES
Japan Extends Location Incentive And Teases More Changes For Cannes
“This new system is really a gamechanger in that the programme can run throughout the year. It has become industry friendly where before it was government friendly. Further changes to the programme are expected to be announced at Cannes, where Japan will be the country of honour at the Marche du Film.” (Screen Global Production) Learn more from PSN Japan.
Ukraine Presents Up To 30% Cash Rebate + €50M Cultural Fund
“As Ukraine braces for another year of uncertainty, Tallinn’s announcement offered a rare moment of strategic clarity – and a signal to the international industry that the country is determined not only to survive, but also to rebuild its cinematic voice in partnership with the entire world. ‘Ukraine is open to support all your production processes as efficiently as possible, even under wartime conditions.‘” (Cineuropa) Learn more from PSN Ukraine.
Qatar Preps Q2 2026 Launch of 50% Film Incentive
“The top rate can be achieved by combining a 40% base rebate with an additional uplift of up to 10 per cent for productions that meet defined criteria such as hiring Qatari talent, investing in local training, promoting Qatari culture. The incentive will allow production to complete portions of their filming in neighbouring Arab countries while remaining eligible under the programme.” (Deadline)
Singapore Invests In Local Talent To Build Regional Co-Production Hub
“We will co-fund both regional and global co-productions across films, scripted and unscripted television, and IP adaptations. We aim to build a stronger pipeline of stories with global appeal, strengthen Singapore’s position as a co-production hub, and reinforce our role as a trusted creative partner in the region.” (Variety) Learn more from the PSN Team in Singapore.
Sony-Warner Studio In Las Vegas Rejected By Nevada Senate
“Though Nevada narrowly rejected film subsidies, the trend remains in the opposite direction. California and New York both expanded their programs this year, and Texas recently increased its film incentive to $300 million every two years.” (Variety)
ADVERTISING
Brands Lean Into Short Films As Antidote To Short-Form Video
“Lengthy, cinematic ads are becoming increasingly popular, with brands like United Airlines, Cash App, Uber, Gucci, and Gushers creating short films that bust typical advertising parameters wide open. These ads, which often employ film production tactics and are distributed beyond TV and social, are aimed at creating genuine entertainment and fan service.” (Marketing Brew)
The Era Of The Brand Movie Is Here
“You have this fanbase that helps the movie be successful, but for that piece of IP to be in the story narrative itself also feeds into the fandom around that piece of marketing or that consumer product. That symbiotic nature…is really creating this new ecosystem around marketing and studios and extending to other places, like social media as an example, to really amplify these moments.” (Marketing Brew)
P&G Microdrama Crafted By Dentsu Features Native
“Dentsu is shaping the future of this space, with Dentsu Ventures recently investing in innovators like Emole, a short drama app developer, reinforcing a commitment to next-generation storytelling platforms. This strategic investment complements dentsu Entertainment’s integrated approach to branded content and IP development.” (LBB)
A Force Emerging Outside Big Network Convergence
“While big networks converge, the future of our industry can be found in its atomisation – and the abundance that comes with it. More creative companies breaking away from legacy structures, more business models flipping the industry on its head, and more talent choosing a sense of risk and independence, over anonymity and conformity. Another world isn’t just possible, it’s already here.” (LBB)
TV & Cinema Ad Spend Increase Overall
“Cinema-based advertising in particular will grow 5.5% to $2.2 billion this year. Streaming is also growing by leaps and bounds and is expected to make up 26.2% of total TV revenue in 2025 and 29.6% in 2026. While TV ads as a whole are projected to hit $167.4 billion in 2025 and $170.8 billion in 2026, linear TV ad spend is expected to decrease 3.8% to $123.5 billion this year and drop another 2.6% to $120.3 billion next year.” (Marketing Brew)
No More Ad-Free Viewing Predicts Roku
“As ad-supported streaming continues its growth story, “unreachable” viewers will go the way of Blockbuster Video, as 100% of viewers see ads in 2026. With this change, advertisers will embrace free, ad-supported streaming (FAST) apps.” (Roku)
A Quantum Leap In Prediction, Encryption and Data Processing
“We’d be wise to consider these two technologies, AI and quantum, in tandem. Each accelerates the other in a technological feedback loop. AI+Quantum has the potential to solve our most intractable problems, unlock capabilities we have always assumed beyond the realm of possibility, and bring about a complete reinvention of the human experience.” (LBB)
TelevisaUnivision Microdrama for US Retailer Is Only The Beginning
“’We’ll increase our investment in microcontent up to 100 in 2026. We actually not only have audiences engaged in microcontent but brands are coming to us saying, ‘Hey, we know a trend when we see it.’” (Variety)
Creator Economy Ad Market To Grow 4 Times Rate Of Overall Media Industry
“Leveraging the creator economy to connect with audiences is no longer experimental for marketers – it’s essential. The significant growth we’re seeing reflects a deepening commitment from brands to invest in creator-driven strategies.” (Deadline)
Real People Relevance To Future Creative Adaptation
“We can expect a move towards an integrated content supply chain with even more personalisation and stronger AI compliance frameworks. And while automation and AI are speeding up adaptation and QA, real creativity, cultural nuance and governance will continue to rely on people, making the future a blend of intelligent tools and human expertise.” (LBB)
Lasting Impact Of Longer Ads In APAC
“Ad fatigue is at its peak. Viewer retention has plunged. In APAC, creatives are producing custom edits with multiple cuts to reframe storylines in ways that better connect with ad-fatigued audiences. Long-form content serves as a moment of ‘blank space’ (liubai). So, we can not only have short videos. Paradoxically, the longer videos are the ones breaking through, going viral, and gaining more traction.” (Campaign Asia)
CRAFT
Super Bowl Ad Production Is Team Sport Where AI Can Play
“The fear of AI replacing large-scale productions is rooted in a misunderstanding of what makes great advertising work. Technology is a powerful enabler, but it is not the source of creativity. The future of creative production lies in the intelligent integration of AI tools by skilled professionals who understand how to weave technology, artistry, and storytelling into something truly memorable.” (APR)
Unpacking AI ‘Chaotic, Dynamic’ Film Workflow At Industry@Tallin
“The producer of the near future must think “like a systems architect,” integrating software, human talent and evolving best practices into a coherent production environment. In this new model, filmmakers move fluidly between conception, world-building, AI casting, hybrid production and AI-assisted post-production, looping back and reiterating whenever needed.” (Cineuropa)
Drinks Stylist Serves Authenticity Neat
“With the explosion of social media, we’ve seen a lot of throwback culture coming back faster and faster. I think what’s happening now is that people want things to feel more personalised and more authentic. And that’s the challenge — and opportunity — for brands today: to make authenticity not just an aesthetic, but a value that truly shapes how we create, connect and consume.” (LBB)
How Much AI Will People Tolerate In Their Art
“People are less comfortable automating elements of creative expression they understand – like acting, singing, or writing – because they are more likely to form an emotional attachment to these aspects. Meaningful art hinges on human intention and authorship.” (Stat Significant)
East Asian Advertisers Predict 2026 Paths Of AI Integration
“The real path forward is not choosing one side or the other, but strengthening both. Let AI become more powerful at what it does best, and at the same time push ourselves to become more powerful in the ways AI can’t: dreaming, doubting, questioning, and daring to try what might not work. That balance will shape the creative landscape next year.” (LBB)
“We need the cultural equivalent of hitting 88 miles per hour. A jolt. A rupture. A reset. Until then, we remain stuck here, scrolling past noise-content and pretending a six-second TikTok with a logo slapped on the end counts as ‘storytelling’.” (Shots)
Being Human
Google And Disney Moves In AI Heighten Union Vigilance
“Their output guardrails and technical protections are inadequate and must be significantly strengthened. … SAG-AFTRA expects Google and all AI providers to close these gaps and align their practices with both the law and the rights of performers and all creative talent. We know that they can, and we demand that they do.” (Variety)
The Cultural Climate Driving NYC Mayor Victory
“We are entering a new era where diversity is not a department or an empty gesture, it is what people expect. Culture is not a category, it is today’s currency. Culture does not follow, it leads.” (Shots)
Travel Is Biggest Carbon Contributor Reports BAFTA albert Report
“Simply eliminating one in four flights could deliver significant cuts. Road transport is also lagging, contributing 20% of emissions, with electric vehicles used for only 2% of car journeys.” (Screen Global Production)
“Respect On Set” Toolkit Launch for Indie Prevention Of On Set Harrassment & Abuse
“The resources are designed to be a turnkey toolkit for independent producers including sample codes of conduct, customizable policy templates, pre-production audit and implementation checklists, communication tools, training resources and practical guidance for fulfilling the responsibilities of IATSE‘s Low Budget Agreement (LBA) (which covers films with budgets under $15M).” (Deadline)
Adland AI Hacks Demonstrate Its Not The Tool But How You Use It
“When it comes to AI in advertising, the heat and debate seems to be largely focused on the gen AI content/slop. But, quietly in the background, people have been finding smart ways to use AI-powered tools to make tedious tasks a little bit less annoying, to get to where they need to a little bit quicker.” (LBB)
Tools Transforming Location Scouting
“Technology has not reduced the scout’s importance. It has magnified it. There’s more data, more tools, more opinions. But at the end of the day, someone still has to say, ‘This is the place.’ That responsibility hasn’t gone away.” (TLG)
Just The FAQ’S
Film & Television Consolidation and Production Shifts
- Netflix vs. Paramount Battle for Warner Bros. The bidding wars for major studios like Warner Bros. are intensifying, leading to concerns that a few massive companies will eliminate competition and limit the number of buyers for producers. Hundreds of producers form Producers United to fight for better compensation and health insurance amidst the threat to their livelihoods.
- The Rise of Co-Production as a Strategy: Co-production is shifting from being just a funding lifeline to a strategic tool that affirms cultural authenticity and unlocks new markets. Streamers are moving upstream to co-produce projects earlier, even at the script stage, to secure big intellectual property (IP).
- APAC and Global Production Growth: The Asia-Pacific (APAC) video market is set for strong growth, projected to hit $104 billion by 2030, with India and Japan gaining ground as China’s grip loosens. Australia, specifically, saw a record AUD$1 billion ($661 million) in spending from 20 foreign features alone, driven by an international production surge.
- Incentives for International Production: Countries are strategically expanding or introducing incentives to attract international projects, including Japan’s new “industry friendly” year-round program, Qatar’s upcoming Q2 2026 launch of a potential 50% film incentive, and expanded programs in US states like California, New York, and Texas. Singapore is also investing to become a regional co-production hub.
Advertising, Short-Form, and Ad-Supported Streaming
- Microdramas and Vertical Storytelling: Microdramas—very short, often vertically-oriented video series—are gaining ground globally. Stakeholders note that while profitability remains elusive for most, the format provides real-time data and analytics that signal opportunities for virality, brand partnerships, and full 360-degree monetization. Brands and networks, including P&G/Dentsu and TelevisaUnivision, are significantly increasing investment in this area.
- The Brand Movie and Influencer Economy: Brands are leaning into lengthy, cinematic short films—the “brand movie”—as an antidote to short-form video, aiming to create genuine entertainment and fan service. The creator economy ad market is expected to grow four times the rate of the overall media industry, making creator-driven strategies essential for marketers.
- Ad-Supported Streaming Takes Over: Streaming is growing rapidly and is expected to account for 29.6% of total TV revenue in 2026. It is predicted that “unreachable” viewers will disappear, with 100% of viewers seeing ads by 2026 as advertisers embrace free, ad-supported streaming (FAST) apps.
AI’s Role and the Focus on Human Craft
- AI as an Enabler, Not a Replacement: Industry leaders stress that the fear of AI replacing large-scale production is a misunderstanding, stating that AI is a powerful enabler, not the source of creativity. The future of production lies in the “intelligent integration of AI tools by skilled professionals”.
- The Producer as a Systems Architect: The producer of the near future is urged to think “like a systems architect,” integrating software, human talent, and evolving best practices into a coherent, fluid production environment.
- Human Intention is Key to Art: There is a concern about how much AI people will tolerate in art, as meaningful art hinges on human intention and authorship, particularly in creative elements like acting, singing, or writing. The future creative landscape will be shaped by a balance, pushing humans to excel at what AI cannot replicate: “dreaming, doubting, questioning, and daring to try what might not work”.
- Union Vigilance and Sustainability: Union vigilance is heightened regarding moves by Google and Disney in AI, with demands for strengthened output guardrails and technical protections. At the same time the industry is increasingly focused on sustainability, with travel reported as the biggest carbon contributor to production, driving calls to reduce flights.
Let’s be thankful for the opportunities of 2025. And forge new, human-led paths in physical production together next year.
Best holiday wishes,
Michael
