Netflix Loses 970K Subs, Forecasts 1M Gain in Q3

►Some signs of optimism. Netflix lost 970,000 subscribers during Q2, performing better than its expectations of a 2m loss, the company disclosed Tuesday. Though the quarter still ended with a net loss in subscribers, the streaming giant is projecting it will add 1 million subscribers in Q3. Netflix now has a total of 220.67m subscribers, a decrease from the 221.64m reported at the end of Q1. Revenue hit $7.97b for Q2, representing a roughly 8 percent year-over-year growth in part due to a stronger U.S. dollar, while net income landed at $1.44b. The results. 

—"The response that we are getting from a brand and advertiser perspective is quite strong." Netflix execs on Tuesday detailed the company’s plan to add an ad-supported tier, saying that the goal is to launch in early 2023 in markets “where advertising spend is significant.” COO Greg Peters said on the company’s earnings call that the company has already held talks with major players in the sector. The story. 

—🤝 Deal done 🤝 Netflix has acquired the Australian animation and VFX studio Animal Logic. Sydney-based Animal Logic has been involved in The Lego Movie franchise, Happy Feet, Peter Rabbit and other productions, including the upcoming The Magician’s Elephant, for Netflix. Terms of the deal were not disclosed, but it is expected to be completed by the end of the year. The story. 

—"Can y’all believe this shit? I done came on home to Netflix." Comedian and Oscar winner Mo’Nique, who received a settlement from Netflix after she accused the streamer of systematically underpaying Black women, is set to film her first comedy special for the company. The story. 

Inside 'House of the Dragon' Part 2  

►"It’s a powerful, dark, Shakespearean tragedy." The second part of James Hibberd's epic behind the scenes story of HBO's upcoming fantasy series House of the Dragon, the eagerly anticipated prequel to Game of Thrones, continues on set. The cast of Dragon opens up about their characters, the showrunners explain how the new series tackles issues of race and sexual violence, and a look at the franchise’s future. The story. 

—Tragic loss. A cause of death for Jak Knight, a rising stand-up and TV comedy writer whose death at 28 shocked Hollywood, has been determined by the Los Angeles County medical examiner-coroner. Knight was discovered at an embankment in L.A. on July 14 at 8:33 p.m., a spokesperson for the coroner’s officer said. He suffered a gunshot wound to the head in what is being ruled a suicide. The story. 

—Fatal shooting. A crewmember on NBC’s Law & Order: Organized Crime was shot and killed early Tuesday while working on location for the series. The 31-year-old man, who is not being identified pending notification of family, was sitting in a car near the crime drama’s filming location in the Greenpoint neighborhood of Brooklyn. Another man came up to the car and fired several shots, according to the NYPD. The story. 

—Countersued. A bitter court battle is brewing over Timothy Hutton’s dismissal from the reboot for Leverage after he was accused of raping a teenager in 1983. Responding to a lawsuit filed by the actor claiming his deal was breached, series producer Electric Entertainment alleges Hutton “intentionally withheld and concealed” attempting to pay off the victim in a settlement and kill a story exposing the accusations during contract negotiations. The story. 

UTA's Private Equity Move

►A battle for scale. With the news of UTA taking cash from Swedish private equity firm EQT, THR's Alex Weprin looks at how the Jeremy Zimmer-run agency will fuel growth in its representation business, as well as make further inroads in international dealmaking, as it looks to keep pace with CAA-ICM and WME. The analysis. 

—🤝 Overall deal news 🤝 Director, producer and actress Salli Richardson-Whitfield has extended her overall deal with HBO/HBO Max for two more years. Under the extension, she’ll join Winning Time as an exec producer and direct half of season two’s episodes while continuing as an EP on The Gilded Age. Richardson-Whitfield first signed a deal with HBO in September 2020. The story. 

—🤝 First-look deal news 🤝 Lilly Singh has signed a first look scripted deal with Blink49 Studios and Bell Media. The pact includes a second look unscripted deal with Singh’s Unicorn Island Productions banner. She earlier signed a first-look producing deal with NBCUniversal’s Universal Television Alternative Studio to develop unscripted projects for that company. The story. 

—📅 All change 📅 Paramount is shifting the release dates of some key titles, most notably the A Quiet Place prequel arriving a bit later than expected. Now titled A Quiet Place: Day One, the movie shifts to March 8, 2024. Also moving is John Krasinski's If which shifts to May 24, 2024 and animated film The Tiger’s Apprentice moving to Jan. 19, 2024. The 25th anniversary rerelease of Titanic is pushed back to Feb. 10, 2023. The story. 

—📅 All change 📅 Sony is also moving some titles, including Spider-Man spinoff Madame Web which leaves summer 2023 and now opens on Oct. 6, 2023. Insidious 5 is jumping into Madame Web‘s previous date of July 7, 2023. Sony also set The Pope’s Exorcist for April 7, 2023. The studio also made a number of other small calendar moves. The story.

Comic-Con Returns!

►The biggest panels. With the 2022 San Diego Comic-Con starting on Thursday, THR's second-nicest man (and new dad!) Aaron Couch runs through some of the most anticipated announcements and reveals headed to the SDCC. Among the highlights, Marvel and DC will duel it out on Saturday, while prequels to fantasy favorites Game of Thrones and Lord of the Rings will make their cases to fans at Hall H. The guide.  

—Fair dinkum. Hugh Jackman has been tapped to lead the voice cast of Hulu’s animated series Koala Man, from Rick and Morty co-creator Justin Roiland and Michael Cusack. Koala Man revolves around a middle-aged dad and his titular not-so-secret identity, whose only superpower is a burning passion for following rules and snuffing out petty crime in an Australian suburb. The story. 

—Toy to screen. Mattel Films, the movie division of the toy company, is partnering with Skydance for a feature project based on the toy vehicle line Matchbox. David Coggeshall, who was behind Paramount’s Orphan: First Kill, is writing the screenplay. Matchbox follows Mattel IP Polly Pocket, Uno and Masters of the Universe in getting the film treatment. The story. 

—Potential new franchise. THR's Mia Galuppo has the scoop on Universal preemptively landing the rights to the upcoming fantasy novel Lightlark written by author Alex Aster. The studio will develop the project, which has franchise potential, in partnership with Temple Hill. Aster will executive produce. The story.

'Desus & Mero' Is Gone Way Too Soon 

►"There was nothing else like it in late-night." THR's chief TV critic Dan Fienberg laments the premature passing of Desus & Mero, one of his favorite late-night shows. The Showtime show abruptly came to an end this week after hosts Daniel “Desus Nice” Baker and Joel “The Kid Mero” Martinez reportedly fell out. The critic’s notebook.

—"There’s a lot of sadness that you get with goodbyes and with endings." A despondent Dan roused himself to speak to Better Call Saul director and EP Michael Morris about the pivotal "Fun and Games" episode. Morris breaks down Jimmy and Kim's emotional showdown, Gus' unexpected restaurant meeting and other key details. Warning spoilers. The interview. 

In other news...

—Halloween Ends: Jamie Lee Curtis returns for final battle in first trailer 

—Shania Twain’s Netflix doc Not Just a Girl releases trailer

—Viola Davis’ The Woman King to world premiere at Toronto Film Festival

—Dan Lin launches BIPOC-focused content accelerator Rideback Rise

—VFX house Cinesite acquires Montreal’s L’Atelier Animation

—Hollywood casting software firm Talent Systems sold to private equity group

—Former WB exec launches production company Big Owl Pictures in Australia

—Two-time Olympic gold medalist Chloe Kim signs with Anonymous Content

—Will this avenue become the next hot block in Los Angeles?

—Spanish home built in 1932 for Wizard of Oz choreographer lists for $5m

What else we're reading...

—Depressing and infuriating: "U.N. chief warns that humanity faces ‘collective suicide’ over climate crisis" [NYT]

—Josef Adalian offers his take on Netflix's not great but not terrible Q2 subscriber numbers [Vulture]

—Crispin Long on how Elliot Page, long before he came out as trans, had a gift for playing people who were restless in their identities [New Yorker]

—Anna Nordberg writes that Netflix's "disaster" adaptation of Persuasion has one good idea [Slate]

—Alexandra Alter looks into the unsolved murder case linked to Where the Crawdads Sing author Delia Owens [NYT]

Today...  

...in 1984, Fox released the R-rated college comedy Revenge of the Nerds. The film quickly became a cult classic and was followed by three sequels. A reboot of the series from Seth MacFarlane is currently in the works. The original review.

Today's birthdays: Sandra Oh (51), Judy Greer (47), Simon Rex (48), Gisele Bündchen (42), Chloe Fineman (34), John Francis Daley (37), Julianne Hough (34), Aimee Mullins (47), Josh Holloway (53), Alycia Debnam-Carey (29), Dean Winters (58), Frank Whaley (59), Julian Rhind-Tutt (55), Omar Epps (49), Tantoo Cardinal (72), Donna Dixon (65), Naseeruddin Shah (72), Randal Kleiser (76), Roberto Orci (49), Carlos Santana (75)