The next stage in the streaming war is filmed live in front of a live studio audience.
CBS Studio Center, the Los Angeles complex where Seinfeld, the show of Mary Tyler Moore, and other classic sitcoms have been taped, is expected to sell for $ 1.8 billion in a near-final sale to Hackman Capital Partners and Square Mile Capital Management LLC, The Wall Street Journal reported Tuesday. That’s $ 500 million more than expected when it hit the booming soundstage market last summer.
No real estate business like show business
Filmmakers, including Disney and Warner Bros., once owned their scenes. But today, real estate investors are buying studios, offices, and other film and TV production facilities in hopes of capitalizing on the streaming wars as Apple TV +, AmazonPrime, Netflix, Hulu, Disney +, Paramount + and Peacock need to rent space. produce an endless supply of content for viewers to gorge on.
With sound scenes if in demand, real estate investors are investing billions for some expensive properties:
- Despite a pandemic decline in 2020, the number of scripted TV shows aired each year has increased over the past decade, reaching 532 in 2019, up 7% from 495 in 2018.
- Other successful sales include the planned $ 1.1 billion purchase of Cinespace Studios in Chicago and Toronto by private equity firm TPG, which is also spending $ 74 million on Studio Babelsberg in Germany; and Blackstone is providing $ 1.65 billion for 49% of a Hudson Pacific Properties business that includes three studios and five buildings in Hollywood.
“We are seeing the whole industry becoming institutionalized,” said Stephen Somer, managing director of Eastdil Secured LLC. The newspaper.
All stages of the world: Keep an eye on the international studio market as streaming services expand overseas. Netflix already rents studios in Mexico, the UK and Spain, and doubles its spending on original content in Asia. In February, he announced a $ 500 million boost to South Korea, which is home to Squid game. In March, it rented new studios in Japan, which will overtake Australia as the company’s largest Asia-Pacific market by the end of the year.