UPDATED with official particulars and exec remark. Candle Media, which launched in 2021 with backing from private-equity big Blackstone, is restructuring its operations in response to broader adjustments within the streaming sector.
The corporate has issued a press launch confirming a few of what had been reported by Semafor on Tuesday morning. (See earlier particulars beneath.)
“We’re excited to announce that to be able to proceed to drive and improve the collaboration and synergies which are core to Candle’s imaginative and prescient, mission and tradition we now have organized our dwell motion, premium content material capabilities right into a newly fashioned Candle Studios division, which will probably be led by the incomparable Sarah Harden, who will function its CEO,” stated Candle Media Co-CEOs Kevin Mayer and Tom Staggs. “It will deliver all of our dwell motion properties into one division, with every benefiting from a go-to-market technique and shared sources, whereas retaining their distinctive model id, viewers profiles and day-to-day inventive and enterprise management.”
The brand new studios division will make the most of shared sources together with, however not restricted to enterprise affairs, authorized affairs, manufacturing companies, amenities and gear, together with a coordinated gross sales and distribution course of, concentrating on each home and worldwide consumers, the corporate added.
“I’m thrilled to tackle an expanded position inside Candle Media, supporting the expansion of those unimaginable enterprise models and figuring out new avenues for progress,” stated Harden, who’s now CEO of Candle Studios and Good day Sunshine. “I’m so pleased with what we now have constructed at Good day Sunshine and excited to proceed in my position as CEO.”
In 2024, Candle Studios will probably be in manufacturing on greater than 30 premium originals. The slate contains The Final Factor He Instructed Me (Season 2), The Morning Present (Season 4), Floor, Excessive House Makeover and F1 Academy from Good day Sunshine, Vgly Season 2 for Max Mexico from Exile Content material Studio, and Crime Nation Season 2 for The CW from Candle True Tales. Faraway Highway is in improvement on Season 5 of Fauda in addition to a function movie stemming from the property, along with different initiatives.
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Candle Media, which launched in 2021 with backing from private-equity big Blackstone, is restructuring its operations to mirror broader adjustments within the streaming sector.
The corporate, led by former senior Disney execs Kevin Mayer and Tom Staggs, will break up into two divisions and make different associated adjustments. Candle’s formation was premised on the chance for streaming content material fueled by social media. On the time, streamers had been chasing Netflix and including subscribers as they piled up losses; within the intervening years, Wall Avenue insisted on profitability as a substitute of subscriber progress, punishing numerous gamers and casting a cautious eye on the go-go spending it as soon as admired.
The broader economic system additionally grew turbulent within the years since Candle’s launch, with rates of interest surging and inflation spiking. Rising charges forged Candle’s $1.4 billion of debt into a unique gentle. Throughout an early spree, Candle made numerous high-profile acquisitions, together with these of Reese Witherspoon’s Good day Sunshine and CoComelon producer Moonbug Leisure.
Citing dramatic adjustments within the general leisure panorama, particularly streaming, the corporate stated it could fold its animation operation into Moonbug. Most different manufacturing will transfer to a brand new live-action division known as Candle Studios, to be run by Good day Sunshine chief Sarah Harden. The brand new studio will embody manufacturing corporations Exile, True Tales, and Fauda creator Faraway Highway. Good day Sunshine is the anchor tenant, having produced Hulu’s Little Fires In every single place and Apple’s The Morning Present.
Mayer detailed the corporate’s up to date strategic plan in an interview with Semafor revealed Tuesday. The article didn’t element the affect on the corporate’s workforce of the restructuring, together with the potential for layoffs.
Along with the restructuring, Mayer stated Candle can be enterprise numerous cost-efficiency initiatives along with the restructuring, together with combining sure back-office features. “We paid on the prime of the market,” Mayer informed the outlet. “Have the financials borne out the best way we want, to must help the costs that we paid? In all probability not.” However he stated: “Speak to us in two or three years.”
The twin Hollywood strikes of 2023 additionally dealt a severe blow to Candle.
Mayer, who skilled numerous peaks and valleys (although largely the previous) throughout his run at Disney, just isn’t sounding any alarms. “There’s cycles in any firm the place you’re in a progress part, you accumulate a little bit bit of additional value nevertheless it doesn’t matter,” Mayer stated. “And then you definitely hit a plateau that causes you to look once more on the backside line and reduce prices. It’s a really wholesome factor to do.”
