Thursday 15 June 2023

Deadline: Warner Bros. Discovery Closes Danish Production Arm & Consolidates Scandinavian Operations

Story from Deadline:

Warner Bros Discovery is closing its Danish production arm, we’ve learned.

Warner Bros International Television Production Denmark will effectively shutter and be consolidated into Warner Bros Discovery’s Swedish production base in Stockholm. We understand a number of roles will be impacted. Warner Bros International Television Production Denmark has a staff in the double digits, though it’s not yet known how many posts will go.

Fredrik Hillerbrand, Managing Director of Warner Bros International Television Production Denmark, will exit in coming months after overseeing a transition. Johan Idering, Managing Director of Warner Bros International Television Production Sweden, will assume responsibility for Denmark, adding to his duties in Sweden and Norway.

A business review is underway to manage the situation. Some roles will certainly go but Warner Bros International Television Production is looking to retain staff were possible.

Despite a physical exit from the local market, ratings-winning shows such as TV2’s reality series The Bachelor will be safeguarded. We hear that Warner Bros Discovery is holding talks with broadcasters in coming weeks about how they reshape productions.

Existing production commitments are expected to be honored, but commissioning, production and other teams in Denmark will be overseen from Sweden going forwards. A similar model is already in place at Warner Bros International Television Production Norway, which operates out of Sweden.

Warner Bros Discovery said Denmark remains “an important market to Warner Bros International Television Production” and its “difficult decision has been made against an incredibly challenging backdrop of ongoing uncertainty in the Danish media market and the rising costs of content creation.”

Denmark’s production sector has been hit by several factors in the past 18 months, turning the market from one of Europe’s most overachieving to one beset by problems and concern.

Earlier this month, we reported on how a plethora of factors have turned Denmark, which was once one of the most buoyant production bases in Europe, into a cautionary tale. The country’s scripted market was last year hit by a commissioning impasse as unions and streamers clashed and fears over a streaming levy further spooked the sector. Costs are also high in the country, as the local currency is strong, and there is no local tax rebate system.

Yesterday, the country’s new media bill revealed on-demand services would be asked to pay a ‘cultural contribution’ of 2% of their Danish turnover and those that spend 5% or more would fulfill all obligations. Those who spend less than 5% would have to top up their contribution, with the money going on films, scripted series and docs.

Despite the law, which many production companies and creatives broadly welcome, commissioning remains way down. Local producers estimates orders will be down up to 50% in coming years as the market resets.

Ronald Goes, EVP, Head of Warner Bros. International Television Production, said: “This has not been an easy decision for the company, and it has been made with a very heavy heart. However, it became clear we must take sensible steps to consolidate our business in Scandinavia in response to the Danish media production sector dealing with a massive decrease in work.

“On behalf of Warner Bros International Television Production, I’d like to thank Fredrik Hillerbrand and his team for everything they have achieved over the years. It’s our intention that the new strategy will enable us to continue our legacy of making great television for the region in a way that is sustainable.”

Last year, Warner Bros Discovery pulled back from local production for HBO Max in most European territories, with 29 execs exiting their roles as a result.

© 2023 Deadline Hollywood.