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Japan rises

By Noel Vera

SERIES REVIEW

Japan Sinks
Directed by Masaaki Yuasa and Ho Pyeon-gang
Netflix

ONCE AGAIN Masaaki Yuasa put out an anime series (Japan Sinks, 2020, available on Netflix — actually his second after the delightful Keep Your Hands Off Eizouken!) and once again he flouts expectations, of both his fans and fans of disaster movies. This time though Yuasa may have fashioned not just a quietly subversive disaster epic but the fiction story summing up our feelings in this disaster of a year, 2020.

Where the source novel (by Sakyo Komatsu) focused on government efforts to cope with the cataclysm, Yuasa (with co-director Ho Pyeon-gang and writer Toshio Yoshitaka adapting) focuses on the common folk struggling to stay alive. Where the novel had mostly Japanese characters, the series takes extra effort to present a more diversified cast: wife and mother Mari Muto is from Cebu, Philippines; popular YouTube celebrity KITE is from Estonia; hitchhiker and amateur magician Daniel is from Kosovo; submarine pilot turned research scientist Onodera — who predicted Japan’s downfall — is a paraplegic (a source of unspoken embarrassment in everyday Japanese society). A sinister religious cult is introduced, its subplot springing a few surprises (and not a little controversy among viewers); the actual disaster setpieces (the various earthquakes, Mt. Fuji erupting, Japan’s promised submersion) look and feel, well, different from the usual onscreen depiction.

When the first quake strikes, Yuasa cuts to four locations: a girl’s locker room (where middle schooler Ayumu Muto is dressing after track practice); an Olympic stadium (where father Koichiro is installing a jumbotron screen); the Muto home where youngest son Go is waiting; and an inflight jet holding Mari, who is coming back to Japan. The locker, stadium, and home sequences are handled impressionistically; mainly brief shots strung together (perhaps the most effective being Ayumu and her classmates flung against a rushing gray background, to land every which way they can). Mari’s plane crashes against a river, resting its nose against a bridge but the actual crash is skipped over — and you realize that perhaps Yuasa didn’t have the budget to visualize the series properly, hence, the elliptical if not downright frugal approach. He may have decided to pour money instead in unexpected directions: a garden lit at night in spectacular purple, blue, and green, as a signal to draw people together; a panning shot of the Shiba-koen district, dim concrete towers lit from below by what looks like a vast bed of coals (glide past the famed Tokyo Tower, upper half hanging to one side); a quietly spectacular overhead shot of a Tokyo suburb some 10 to 20 feet submerged, the water so clear you can still see the streets, the tops of trees and buildings poking out of the gently lapping waves. The family is happily reunited — with next-door neighbor Nanami having found Go and bandaged his eyes, and track-star-turned recluse Haruo coming along — but Yuasa has one more shock in store: bodies dropping from the sky, and a helicopter spinning out of control to end its trajectory in a nearby fireball. His apparent message: don’t expect the usual disaster movie, with tropes and conventions providing comfort in the midst of the chaos — Yuasa has neither the budget nor inclination. Anything can happen to anyone anytime, and probably will.

That’s what initial audiences apparently reacted against: the series flouts conventions too much, is apparently unmoored and ridiculous in its narrative and tone. Plot coincidences abound, characters survive by the most unlikely of means, and deaths are often passed over if not downright ignored. Yuasa addresses the latter early on (skip the rest of this paragraph if you haven’t seen the series and intend to!): Koichiro is the best qualified and most natural leader of the group, an outdoorsman who knows where to find potable water and yams and even how to field-dress a wild boar (which he dispatches himself) — and what does Yuasa do? Take the man away, literally, with a bang and a cloud of smoke. Nanami has a mini-arc where she develops an attraction to Haruo, has to fend off an attempted sexual assault by a truck driver, then dies, just like that. Ayumu — the series’ ostensible protagonist — is horrified by these deaths, partly because they’re so sudden, partly because she feels she had somehow caused them (Koichiro because she wanted yams and he had died looking for some, Nanami because Ayumu also had a crush on Haruo, and was mildly jealous). Crassly manipulative? Maybe, but remember the story is being told through Ayumu’s eyes, at least in these passages, and she can’t help but see the world in terms of how it affects her and she affects it.

As for several characters’ passing, Mari’s reaction seems particularly noteworthy: she stoically shrugs them off, especially the first one. Ayumi reflects our feelings and says as much to Mari: how can the woman just ignore death like that? But Mari’s reflects one way people cope, rightly or wrongly: by focusing on the business of survival. Mari feels the trauma and Aymumu’s hurtful angry words, and internalizes it — a recognizably human response, just not the kind we’re used to seeing in movies or on TV.

Then there’s the cult (Again, skip the rest of this paragraph if you haven’t seen the series and intend to!), which admittedly comes at a low point in the series, animation wise — looks like Yuasa was scraping financial bottom when he worked on these episodes. We’re waiting to learn that the cult is either fake or somehow evil, and neither expectation is fulfilled: the cult does have what seems like a genuine medium, or at least an actual telepath, and its intentions turn out to be sincerely benign — the Mutos aren’t asked to convert, and they enjoy a few days’ rest, not to mention a hot shower. The rest stop does function as a turning point for several of the characters: Mari conducts a sneakily flirtatious relationship with the sad sack Daniel and ultimately allows herself to mourn Koichiro, Ayumu and Mari finally reconcile, and an old man named Kunio — an unapologetic racist — eventually relents in his racism. 

Mind you I’m not saying Yuasa and his writer Yoshitaka do flawless plotting (Komatsu I absolve because very little of his original story was used, aside from the premise). If the story feels like it pinballs all over the place, I’d say that reflects the relentlessly random nature of a disaster and its aftermath; if we’re upset that the plot seems to shortchange some characters, I’d say that’s thanks to the care put into their development by the makers, our indignation a tribute to the emotional investment we in turn have put into them. 

The last few episodes are devoted to KITE and his attempt at data gathering, the resolution to this particular plotline giving rise to a flaw no one seems to have noticed (Again skip the paragraph if you haven’t seen and intend to!): KITE implies the possibility of saving Japan but no one points out KITE’s failure — that he did little to prevent the sinking and even less to do with its partial return. I submit that in a way KITE didn’t fail: he (with Onodera’s help) salvaged data predicting the return of portions of Japan, and that data helped convince the rest of the world to continue recognizing Japan’s sovereignty. KITE in effect helped preserve the idea of Japan, not just among its remaining citizens (the Muto family in particular) but among the international community.

Which leads us to one of the strongest criticisms leveled against the series: that it, like its source novel, is a jingoistic piece of nationalistic propaganda, meant to promote the 2020 Tokyo Olympics. I’d argue that: 1.) Yuasa kept very little of the original novel, and, 2.) the series if anything is an argument against nationalism. When Japanese athletes do march in the 2020 opening ceremonies (an event that, right off, marks this series as taking place in an alternate universe) it’s as citizens of a country whose land has vanished. These athletes, like KITE, believe in the idea of Japan, of a people with marked flaws (provincialism; suspicion of outsiders or those who seem different) and even more marked virtues (the ability to work hard and when challenged, work harder; the ability to get along with others under the worst circumstances; the ability to sacrifice oneself for the common good). The athletes wave these flaws and virtues higher than any mere flag, and invite all and sundry (including paraplegics and those of mixed racial blood) to imitate, possibly integrate, perhaps declare themselves in turn honorary Japanese citizens in a gesture of solidarity (as an American president once declared, inspired by similar sentiments: “Ich bein ein Berliner”).

But the series, I submit, does more than celebrate Japan (as a concept not necessarily as a nation): it captures the mood of desperation we all feel, isolated and struggling to stay in contact and stay sane. Japan Sinks with its beleaguered but persistent optimism feels like perfect viewing in this time of corona, an essential if eclectic tool for mental well-being we can include in our select survival kit.

Stuff to do at home

Art Talk: We bring Edvard Munch to You

THE Munch Museum is holding a webinar about Edvard Munch’s relationship to the coast, nature, and recreation. The talk will be helmed by curators Patricia Berman and Signe Endresen. The talk can be seen free of charge by following this link: https://vier.live/acts/munch-relationship-to-the-coast-nature-and-recreation, on Aug. 18 at 4 p.m. UTC+02. (UTC 4 p.m. in Manila is at midnight). Other talks may also be accessed at the museum’s Facebook page, @munchmuseet. 

Philippine Philharmonic Orchestra’s pocket concert series

THE PHILIPPINE Philharmonic Orchestra (PPO) continues its concert series PPO By Your Bedside, on Aug. 7, 8 p.m., on the Cultural Center of the Philippines’ website. The concert’s repertoire will include the songs “Usahay” by Gregorio Labja, to be performed by Joy Allan De la Cruz on the viola; “Bayan Ko” by Constancio de Guzman, to be performed by Jay Ar Mesa on the French horn and Manuel Agustine Chua on the guitar; the Pangasinense folk song “Malinac Lay Labi” as performed by Dino Decena and Christian Tan on violin, Rey Casey Concepcion on the viola, Giancarlo Gonzales on the Cello, and Rommel Cruz on the contrabass; and Wency Cornejo’s ”Hanggang,” performed by Hercules Santiago on flute, Christian Tan on violin, and Giuseppe Diestro on cello. PPO By Your Bedside is part of The Music for Healing: PPO in Quarantine Pocket Concert Series, an ongoing program which can be viewed on the PPO FB page and the CCP YouTube as platforms. Initially intended as an online music offering to Filipinos who are recuperating in their beds in hospitals or at home as therapy to aid in their healing, it also aims to accompany the whole family in coping with the pandemic situation and the frontliners who bravely provide their services to fellow countrymen in need. The series offers two other programs, the PPO in the Workplace pocket concert and the PPO in your Living Room pocket concert.

Gabriel Barredo’s Opera by Ballet Philippines

GABRIEL BARREDO’S Opera, with choreography by Redha, considered by Ballet Philippines’ President Kathleen Lior-Liechtenstein as one of their best performances, will only be available for streaming until Aug. 14 as the ballet has been accepted to the International Ballet Festival of Miami 2020. The ballet is currently on view on the Ballet Philippines website: ballet.ph.

Bimpo Improv offers class

IMPROVISATIONAL theater group Bimpo, is holding an hour-long session featuring improv games and exercises “in a safe, non judgmental space.” Called Quaranbreak: Pause and Play, the session is free and will be held on Aug. 15, 7 p.m., via Zoom. Slots are limited. To register, go to https://tinyurl.com/y5a5dvvh or message 0956-554-1933.

PETA’s Online Theater Workshops

THE PHILIPPINE Educational Theater Association (PETA) is holding a series of online theater workshops starting Aug. 17 until Sept. 5. Topics include introductions to visual arts and writing, acting workshops for screen and theater, and creative musical theater. For more information and to register, visit www.bit.ly/PETAOnlineWorkshop or contact betitasarmiento@petatheater.com or via 0926-406-6858.

PPO Instrument Petting Zoo spotlights the French Horn

THE PPO Instrument Petting Zoo continues with its live online program with the spotlight on the French Horn on Aug. 9 at 4 p.m. via the PPO Facebook page. French horn player Jay-Ar B. Mesa, a member of the horn section of the Philippine Philharmonic Orchestra (PPO), will talk about the French horn and demonstrate how it is played. Mesa will also perform classical pieces suited for the French horn. The PPO Instrument Petting Zoo, a project of the Cultural Center of the Philippines and the PPO, aims to promote appreciation for musical instruments of the orchestra and its music among children and families. It is held every Sunday at 4 p.m., and runs for several months. 

Ballet Philippines holds masterclass

BALLET PHILIPPINES’ Masterclass by the Masters this week features Victoria Ananyan, a Principal Dancer at Les Ballet de Monte Carlo, on Aug. 7, 4 p.m. For details go to ballet.ph.

Enchanted Kingdom’s Kiddie Chef Challenge 2020

ENCHANTED KINGDOM’S Kiddie Chef Challenge 2020: Recipes from Home Edition is an online challenge open to all aspiring little chefs ages four to 12 years old who want to show off their culinary skills. The child’s food entry, made  using Purefoods Tender Juicy Hotdog, SPAM Luncheon Meat and/or Magnolia products inspired by one of EK’s seven themed zones (check the official website for information on EK’s zones www.enchantedkingdom.ph), can be shared until Aug. 11. Winners will be announced on Aug. 14, and will receive four Regular Day Passes each plus a special gift basket from EK partners. To join one must first “like” Enchanted Kingdom’s official Facebook page. All entries must have the complete recipe (including the participating products used) and a photo collage of the finished dish with participant’s photo while cooking. Post the photo at EK Kiddie Chef Challenge FB post’s comment section, and use the hashtags: #EKKiddieChef, #iloveEK and #EKatHome. For more information, visit Enchanted Kingdom’s official website and Facebook page at www.enchantedkingdom.ph and www.facebook.com/enchantedkingdom.ph or click https://web.facebook.com/notes/enchanted-kingdom/kiddie-chef-challenge-recipes-from-home/3624944944200412/?_rdc=1&_rdr to know the complete contest mechanics.

Infection risk prompts big push to set up worker salary accounts

THE Department of Labor and Employment (DoLE) said employers need to minimize physical contact when paying their workers by setting up accounts they can deposit wages to.

In Labor Advisory No. 26 dated Aug. 3, the DoLE said it aims to “encourage and enable all private establishments” to use salary accounts for wages and other benefits, to minimize the possibility of spreading the coronavirus.

It said employers must also help their workers gain access to “formal financial services for the promotion of their welfare, to reduce costs and risks of physical cash disbursement, and to promote digital payments as a safer alternative to physical exchange of bills and coins, thereby reducing physical contact and minimizing transmission or spread of…COVID-19 (coronavirus disease 2019).”

Employers were also encouraged to help unbanked workers gain access to electronic money services. Employees with bank accounts should also be given the option to receive their pay via PESONet, the central bank’s electronic payments network.

Management should collect no additional charges for directly depositing salaries, and were encouraged to tell their workers about the advantages of having formal accounts, it said.

The DoLE also recommended that companies seek the assistance of the Bangko Sentral ng Pilipinas Center for Learning and Inclusion Advocacy for materials on financial literacy. — Gillian M. Cortez

ICTSI net profit down 4% to $54 million

RAZON-LED International Container Terminal Services, Inc. (ICTSI) saw its second-quarter net income attributable to equity holders decline by 4% to $53.8 million due to lower operating income, increase in interest on concession rights payable, and expenses related to the coronavirus pandemic.

The second-quarter net income is 9.7% lower than the previous quarter’s $59.6 million.

In a regulatory filing on Thursday, the listed firm said the decrease was “partially tapered by a reduction in net loss at its greenfield terminal in Melbourne, Australia, and lower equity in net loss of joint ventures.”

The global port developer and operator saw its gross revenues decline by 5% to $348.5 million from $368 million. The amount is 7.3% lower than the $375.8 million earned in the first three months of the year.

ICTSI said trade activities declined during the period due to the impact of the coronavirus pandemic and government- imposed lockdowns.

The company’s consolidated throughput for the quarter dropped 11% to 2,290,779 twenty-foot equivalent units (TEUs) from last year’s 2,563,244 TEUs.

In the first quarter, ICTSI reported a consolidated throughput of 2,508,986 TEUs, driven by the contribution of its new terminal in Rio de Janeiro in Brazil and new services at certain terminals.

“Capital expenditures (capex), excluding capitalized borrowing costs, for the six months ended June 30, amounted to $91.2 million,” ICTSI said.

The company has cut its capex guidance for 2020 to about $160 million. It said it intends to use the amount for its expansion projects this year.

“Our primary focus and central to our decision making since the start of the coronavirus outbreak has been, and remains, the safety and well-being of our employees, customers and our stakeholders,” ICTSI Chairman and President Enrique K. Razon, Jr. said in a statement.

He said the company took immediate action to preserve cash and reduced its capital expenditure in what he described as a period of “significantly reduced economic and international trade activity, brought about by protracted lockdown periods for many countries around the world.”

“These prudent measures taken early on, our diversified portfolio and maintaining a very high level of service to our clients has helped cushion the impact from the pandemic and generated a resilient and better-than-expected performance,” Mr. Razon said.

He expects the second half of the year to remain challenging for the company because of uncertainties.

“However, ICTSI is well-positioned to navigate through these uncertain times, underpinned by our 32 terminals diversely located around the world, the resilience of our business model, agility and a strong capital structure,” Mr. Razon said.

Shares in ICTSI on Thursday closed 0.52% higher at P97.50 apiece. — Arjay L. Balinbin

Allianz PNB to widen reach

ALLIANZ PNB Life Insurance, Inc. has ramped up its digitization efforts and is also looking to boost its branch network as it looks to widen its reach in the microinsurance sector.

“[T]he segmentation of our customers is way bigger so we really need to move also more into the microinsurance sector to allow and to include more rural communities as well,” Allianz PNB Life Chief Executive Officer Alexander Grenz said in an online briefing for the launch of their partnership with health technology startup reach52.

Mr. Grenz said they are looking to add more branches to the 15 they have across the country to reach more customers. He added the 700-strong branch network of Philippine National Bank (PNB) across the country is also an advantage for the insurer.

Allianz PNB has also been boosting its digitalization drive through robot process automation for insurance applications and claims, Mr. Grenz said.

He said while there are some limitations to making the application process quicker amid regulatory requirements, PNB Allianz aims to “deliver a policy within five minutes.”

The need to leverage on technology has increased in urgency amid the coronavirus disease 2019 (COVID-19) pandemic, which Mr. Grenz said “put digitization on steroids.”

“Consumer needs have changed as well. And we basically launched at the beginning of COVID our virtual sales process. So nowadays, instead of doing the personal selling process, our distribution across the Philippines is enabled to sell virtually,” he said.

Local insurers have already disbursed about P326 million so far due to COVID-19-related claims, Mr. Grenz said. The official said one of Allianz PNB’s products that caters to those who want to get more health benefits is Allianz Well!, which could be more attractive to the A and B market due to its P60,000 to P70,000 yearly premium. Its international coverage is worth P100 million.

Through its partnership with reach52, Allianz PNB will grant life insurance worth P25,000 to beneficiaries in Iloilo for every Allianz Well! product sold from August to December this year. This will give the beneficiary health coverage against COVID-19 for a year.

Allianz PNB’s premium income from life insurance rose 10% to P9.44 billion in 2019 from P8.56 billion in 2018, data from the Insurance Commission showed. This put the firm at tenth place in terms of the highest premium income among life insurers last year.

The German firm acquired 51% of PNB Life Insurance, Inc., the life insurance arm of the Tan-led lender, in June 2016. — Luz Wendy T. Noble

PXP Energy raises stake in Canada-based unit

MANUEL V PANGILINAN-LED PXP Energy Corp. has increased its stock ownership in its gas and oil exploration unit based in Canada that is exploring a petroleum block in the contested West Philippine Sea.

The company told the stock exchange on Thursday that it acquired 450 million new shares of FEC Resources, Inc. via a stock rights offering at $1.01 million (around P50 million) or $0.00225 each share.

This raised its shareholding to 78.39% from 54.99% of the holding firm.

PXP Energy’s share subscription also led to a 1.59% increase in its economic interest to 77.66% in Forum Energy Ltd. (FEL), a United Kingdom-based exploration firm operating in the Philippines, in which FEC Resources has a 6.8% interest.

FEC Resources owns a 70% interest in Service Contract (SC) 72 in Reed Bank in the West Philippine Sea, which likely bears as much as 3 trillion cubic feet of gas resources. The Sampaguita gas prospect is also situated in the 880,000-hectare block.

Aside from paying administrative expenses, FEC Resources said it will use the proceeds from the share purchase partly to fund its participation in any fund-raising activity of FEL to maintain its ownership in the company.

To recall, PXP Energy will conduct a 2,600-square-kilometer 3D seismic survey in the petroleum block for oil potential, according to Daniel P. Carlos, its president and director, during the company’s annual stockholders’ meeting last month. Currently, exploration activities in the area are suspended upon the invocation of a force majeure due to the coronavirus pandemic.

Moreover, FEC Resources also holds a 66.7% interest in SC 40 in North Cebu (SC 40) and a minority stake in the Galoc block in SC 14 in northwest Palawan.

On Thursday, shares in PXP Energy went up 3.93% to close at P5.56 apiece. — Adam J. Ang

Actress Son Ye Jin is Smart’s newest endorser

TWO MONTHS after telecommunication company Smart Communications named Korean actor Hyun Bin as its endorser, the company has added another Korean to the mix: Mr. Hyun’s leading lady in the hit series Crash Landing on You, Son Ye Jin, as the face of its postpaid line.

“Well it was really an easy choice for us. We really hoped we could bring her in with her popularity with Hyun Bin and CLOY (Crash Landing on You),” Alfredo S. Panlilio, CEO and President of Smart Communications and PLDT’s chief revenue officer, said during the launch on Aug. 4.

Mr. Panlilio, in June, said that they wouldn’t want Hyun Bin to be “lonely” when asked about the prospect of having another Korean endorser. This, according to Jane J. Basas, Smart’s SVP and head of consumer wireless business, was the catalyst for bringing Ms. Son to the Smart fold.

“We knew that we had to get her because of the positive reaction to that statement,” Ms. Basas said in the same event.

It also helped that the Hyun Bin campaign was so successful that Ms. Basas said it was “one of the best in the history of the brand.”

“The appeal just cut across demographics and economic classes. And I think in terms of how he translated into the business… June happened to be the best month this year for Smart, even better than the three months pre-COVID. We hope that performance is sustained with Son Ye Jin now joining the family,” Ms. Basa explained.

Ms. Son is now the face of the company’s postpaid line, Smart Signature, and her TV commercial features her in South Korea riding a motorcycle.

Son Ye Jin rose to fame in romance films and series including The Classic (2003), Summer Scent (2003), and April Snow (2005). She also gained recognition for her versatility as shown in the films The Last Princess (2016) and The Truth Beneath (2016).

She rose to international fame when she played the spunky Yoon Seri, an heiress who survives a paragliding crash and meets and falls in love with a North Korean soldier, captain Ri Jeong Hyeok in Crash Landing on You. The show aired on Netflix and ran on Korean television from 2019 to 2020. The show, during its height of popularity, was consistently in the top 10 (or at the top) list of Netflix’s trending shows in the Philippines.

“As an actress, I am always grateful for having a platform to entertain and touch the lives of others through my craft. I thank Smart for giving me a way to specifically reach out to my Filipino fans and inspire them to make a mark in whatever path that they have chosen. I wish to see you all soon,” Ms. Son said in a statement. — ZBC

Ayala Land finishes P12-B REIT offering

AREIT, INC. of Ayala Land, Inc. (ALI) has completed the country’s first real estate investment trust (REIT) offering and is set to list at the Philippine Stock Exchange next week.

In a disclosure on Thursday, ALI said AREIT has ended the offer period for its P12.33-billion initial public offering on Monday, which saw a twice oversubscription from investors.

AREIT will list its shares at the exchange on Aug. 13.

The company offered up to 456.88 million common shares with an overallotment option of up to 45.69 million shares priced at P27 each. It has not disclosed on Thursday the total proceeds it generated from the offering.

“The landmark deal and the introduction of the new asset class was well-received by the market, with the deal more than fully covered with broad distribution across retail investors as well as international and domestic institutional investors,” ALI said.

About 70% of the issuance was offered to qualified institutional buyers that are either based in the Philippines or located outside the United States. Some 20% were offered to REIT-eligible trading participants and 10% were offered to local small investors.

A total of 96 eligible trading participants and more than 3,300 local small investors participated in the offering.

“High-quality domestic and international institutional investors locked in demand for the Philippines’ first REIT notwithstanding the continuing COVID-19 (coronavirus disease 2019) global pandemic,” the company said.

AREIT had tapped BPI Capital Corp. as sole global coordinator and joint bookrunner for the offering. UBS AG Singapore Branch was sole international bookrunner for the international tranche, and BPI Capital, PNB Capital and Investment Corp. and SB Capital Investment Corp. were underwriters for the domestic tranche.

The portfolio of AREIT consists of three office buildings in Makati City: 24-storey commercial building Solaris One, two-tower mixed-use development Ayala North Exchange and five-storey commercial office McKinley Exchange.

Proceeds from the offering are intended to be used in buying Teleperformance Cebu and other real estate properties in Metro Manila and key regions.

Earnings of ALI in the first quarter dropped 41% to P4.3 billion as an effect of the Taal Volcano eruption and the coronavirus pandemic. It is allocating P69.8 billion for capital expenditures this year.

Shares in ALI at the stock exchange gained 30 centavos or 0.92% to P32.80 each on Thursday. — Denise A. Valdez

Mulan math ranges from financial bomb to modest moneymaker

By Christopher Palmeri and Kelly Gilblom, Bloomberg

DEPENDING ON who you ask, Walt Disney Co.’s decision to release its next big film Mulan online either guarantees the movie will lose money or could be a smart way to potentially break even on a $300-million investment.

With theaters in the US still largely shuttered due to the coronavirus, Disney will make the live-action redo of its 1998 animated hit available for purchase by Disney+ subscribers for an extra $30 starting Sept. 4.

Just how much money that produces is up for debate. The company is limiting the offer to subscribers of the company’s new streaming service, which numbered 60.5 million globally at last count. It will also release Mulan in the small number of theaters that are open.

Direct-to-consumer releases have been percolating in the film industry for years — and used to be a way for studios to ditch movies they thought would fail. But COVID-19 has changed that. Universal Studios, owned by Comcast Corp., gave families fresh fare at the peak of the pandemic with its April online release of the animated sequel Trolls World Tour. It produced more than 6 million downloads at $20 each, less than the first film did in theaters but a respectable amount just the same.

Bloomberg Intelligence analyst Geetha Ranganathan thinks Disney will have no problem getting 10 million fans to pay for the picture, generating $300 million. That’s at least enough to break even on the $200 million production cost and $100 million in marketing. Anything beyond that, including theater revenue and new Disney+ subscriptions, would make Mulan a winner.

Investors seemed to agree. They bid shares of Disney up 8.8% to $127.61 Tuesday in New York following the announcement and the company’s report of better-than-expected quarterly earnings.

But Michael Pachter, an analyst with Wedbush Securities, is more circumspect, suggesting no more than 3 million Disney+ subscribers will shell out that extra $30. That $90 million in revenue pales in comparison to what a successful Disney film does in theaters.

“Not good enough to offset a theatrical release, but good enough to offset zero in ticket sales,” Pachter said.

Variety, the Hollywood trade publication, asked people on Twitter if they would pay for the film. And 85% said no.

Last year, Disney had seven films top $1 billion at the box office, including the live-action remakes of Aladdin and The Lion King. Unlike digital downloads, ticket sales are split with theater owners.

Major theater chains declined to comment on the Mulan movie, but it’s likely Disney briefed them ahead of time. When the chief executive officer of Cinemark Holdings, Inc.’s shared a list of upcoming movies with investors on Tuesday, Mulan wasn’t even mentioned.

Financial Bind

Theater operators are in a bind. They have suffered huge financial losses as a result of the COVID-19 closings. AMC Entertainment Holdings, Inc., the largest US cinema owner, completed a restructuring of about $2.6 billion of debt this week.

The chain surprised the industry when it agreed last month to let Universal release movies online after just 17 days in theaters in exchange for a cut of the online revenue. The studio made it clear at the time it won’t be using that arrangement for all of its films.

Executives at Cinemark and Marcus Corp., another large exhibitor, said Tuesday that sharply curtailing the exclusive period for theaters isn’t a good idea.

Disney CEO Bob Chapek reassured some in the theater industry on his earnings call, saying the Mulan digital release would be a “one-off” and a learning experience. He made it clear he was as interested in the number of new streaming subscribers the film produces as the revenue from the downloads.

Recent Experience

There, Disney has had some recent experience. It’s been offering pay-per-view boxing and Ultimate Fighting Championship matches through its ESPN+ streaming service and indeed cited the latter Tuesday for an uptick in streaming revenue.

Another wild card for the studio is a theatrical release in China, where Disney+ isn’t offered. Mulan, given its Asian storyline and cast, was always considered a likely hit in that country, the world’s second-largest movie market.

But the film has some other baggage. Liu Yifei, the China-born actress starring in the film, caused an uproar and ongoing fodder for a #BoycottMulan hashtag after stating her support for Hong Kong police during pro-democracy protests. President Trump’s escalating trade war with the country could also affect its theatrical release there.

How to shoot a cult horror remake in the middle of a pandemic

By Thuy Ong, Bloomberg

AFTER THE adults were gone and the blood had dried, the children still had to keep a safe distance from one another. Move too close, and a shout rang out: “Airplane arms!” Then the young stars of Stephen King’s Children of the Corn reboot would raise their arms in a “T” and spread apart from their neighbors.

“It worked so well,” said Jon Heaney, the dedicated COVID-19 safety supervisor for the shoot. A remake of the 1984 cult horror flick, Children of the Corn features child actors as young zealots who rid their rural town of its adults. “We’d just yell it out if we thought people were getting too close, and the kids would do it straight away. The crew started doing it too.”

The film was still shooting in and around Sydney during the pandemic, a prime example of Australia’s efforts to get its growing movie industry up and running again. In mid-July the government added A$400 million ($285 million) in “location incentive” grants to the two-year-old program of tax breaks and enticements that first targeted Hollywood’s movie makers. Australia remains closed to international travelers, but the country’s carved out an exemption for movie cast and crew members.

Film and television production generated A$9.1 billion to Australia’s economy in the 2017-18 fiscal year, up 15% from five years previous. Now, as the country confronts its first recession in 29 years, the pandemic presents an opportunity. Along with New Zealand and a handful of European countries, Australia’s one of the few places to make a movie these days, according to research firm Olsberg SPI. And while Australia’s southeastern state of Victoria is fighting a new resurgence of COVID-19 cases, the country has largely avoided the massive outbreaks that have characterized global hot spots.

“What that really does say is how much of an opportunity there is for us,” said Kate Marks, chief executive officer of AusFilm, the government’s liaison to the film industry. “The spotlight’s been put on us because we are being looked at by other parts of the world as a safe place to do business.”

Australia released specific guidelines for filming during the pandemic in May. Actors who are sharing living quarters during the shoot are allowed to have physical contact on screen, like a hug between friends at the pub. Scripts have also been rewritten to minimize the risk of contagion, and face masks are used whenever possible when social distancing isn’t feasible. Bollywood films have also adopted similar measures.

Shooting for Walt Disney Co.’s Marvel film Shang-Chi and the Legend of the Ten Rings is about to resume after a four-month hiatus. Nicole Kidman’s new series, Nine Perfect Strangers, is due to start filming in Byron Bay, about 760 kilometers north of Sydney, this week. Cast and crew have been in quarantine, as New South Wales requires of all interstate travelers. The latest in the Thor franchise — Thor: Love and Thunder — is expected to go into preproduction before the end of the year.

Before the pandemic hit, 2020 was on track to be the biggest year in Australia for productions, according to Screen Australia, the government liaison to the film and TV industry. That seems unlikely now, but the sector is still a bright spot for the economy. Ausfilm estimates they’ve received A$1.2 billion worth of production inquiries over the past few months on a range of US-backed projects.

Filming in Queensland has also started up again. The Warner Bros. biopic Elvis was in production there until it was halted by the pandemic.

“We’re all getting inundated with calls, people saying how can we come down and film,” CEO of Screen Australia, Graeme Mason, said in an interview. MGM is looking at filming George Miller’s Three Thousand Years of Longing in Sydney, long planned prior to COVID-19, but the start date is still to be determined. The sequel to James Cameron’s Avatar is currently filming in New Zealand.

Even with the government’s encouragement, filming Children of the Corn mid-pandemic wasn’t exactly easy, said Heaney. “You’re dealing with an entire crew who were on edge constantly, the pressures were never ending, and dealing with government bodies that were asking what are you doing to stay safe,” he said.

On top of that, Heaney also had to keep the mood light. “We had to make it a safe and friendly environment for the kids,” he said. “It was good for the crew’s morale as well.”

The changing role of the educator

I have been teaching in the graduate school level for the past seventeen years. I have seen the evolution of elearning from its early stages in 2000, as I was also one of its early adopters when mobile internet speed was at 100 kbps level. I have also witnessed how resistant teachers were during those times, sticking to their face-to-face classroom delivery. There was no impetus to change then, hence, stick to one’s old ways.

But the global pandemic has forced everyone, including educators for all levels, to change and adapt to the new ways of teaching and well as learning because the world of education has already shifted in many ways.

Firstly, learning has shifted from public space to personal space. The classroom interaction has gone virtual. With this, considerations in the use of elearning technologies have become paramount. Teachers now are forced to learn how to deliver their lessons through digital means. In this manner, educators are becoming technologists.

Secondly, there is a shift in teaching methods, i.e. from one size fits all to individualized and differentiated learning. Before the pandemic, teachers would prepare for a lesson for a class and deliver the same lesson to all students face-to-face. Now, students are at their homes learning and studying, with their individual situations. Some have poor learning environments at home, with a lot of distractions and noise. Some have poor internet connectivity and hardware. While other may just simply be distracted in a home study setting.

This means that the teacher should be cognizant of these individual differences and must apply differentiated approaches to make sure that each student gets it. For example, for those students with limited access to internet and technologies, the teacher may supplement the learning with e-mail lessons and follow-through using messaging platforms. These bring the educator back to his or her main competency — being an educational psychologist.

Thirdly, there is a shift of responsibility in the teaching and learning process, i.e. the active participation of household members. Before, parents and guardians of students would leave the educational responsibility to the teacher, attending parent-teacher meetings, and asking the teachers how their children were doing.

Now, household members need to play a critical role in the child’s education, by showing real life examples, giving demonstrations, or even having simple conversations. Hence, teachers also need to educate the family members of the student, especially the parents. Teachers need to counsel the parents on how learning is in this new normal, how important their roles are, and how they can be part of the learning process. Teachers also need to give regular feedback to parents and guardian on how their child is progressing and how they can further help in the learning interventions. In this manner, the role of the educator is that of a counsellor.

Lastly, there is a shift in learning assessments, from final exams to formative evaluations. While many teachers are using outcomes-based approaches to evaluating the learning of students, formative assessments that involve real-life demonstrations of what students learn are more important, especially in a home study setting. Examples are gamified math challenges, science project demonstration, student activities done through video, and even the traditional book reports are now more appropriate means of gauging a student’s learning progress. The teacher can be innovative and creative in coming up with activities and evaluations of the learning outcomes. In this sense, the educator’s role is that of an innovator.

Indeed, the educators’ role has evolved. It is more complex now than before, where one must learn more than the students themselves. Key to thriving and succeeding as an educator during these times, is having the right growth and positive mindset to take on the challenges he or she is facing, learning the tools and approaches to remote learning, and experimenting until he or she gets the right combinations.

These are unprecedented times, and no one has all the answers. Trying, experimenting, learning from mistakes, and
bouncing back should be the mindset of the educator.

 

 

 

Reynaldo C. Lugtu, Jr. is CEO of Hungry Workhorse Consulting, a digital and culture transformation consulting firm. He is the Country Representative of the Institute of Change and Transformation Professionals Asia (ICTPA) and Fellow at the US-based Institute for Digital Transformation. He is the Chairman of the Information and Communications Technology Committee of the Financial Executives Institute of the Philippines. He teaches strategic management in the MBA Program of De La Salle University. rey.lugtu@hungryworkhorse.com

Cebu Pacific parks four more planes

BUDGET CARRIER Cebu Pacific is sending four more aircraft to Alice Springs, Australia as part of its cost-cutting measures, a company official said.

“Confirming storage of four ATR aircraft. Now on their way to Alice Springs,” Candice A. Iyog, Cebu Pacific vice-president for marketing and customer service, told BusinessWorld in a phone message on Thursday.

On July 24, the budget carrier, operated by publicly listed Cebu Air, Inc., announced it had sent nine of its aircraft to Australia for “indefinite storage.”

Seven Airbus A321CEOs and two A330s are now at the Asia Pacific Aircraft Storage in Alice Springs, Australia, Ms. Iyog said in a recent virtual media briefing.

Cebu Pacific currently utilizes about 50% of its fleet on a rotational basis to serve between 40 to 50 flights daily, representing 10% of its pre-pandemic network, which peaked at approximately 420 flights per day, she said.

The budget airline has a total of 75 aircraft, including those parked in Australia.

The budget carrier is set to cut over 800 jobs this month, as it expects travel recovery to happen over a longer period, with the pandemic “negatively impacting” the entire aviation sector.

In March, the company decided to let go of its 150 newly hired flight attendants as reduced flights entail “less opportunity for them to gain in-flight experience.”

The budget airline reported a net profit of P9.12 billion in 2019, sharply higher than the 2018 level, mainly driven by the passenger business, which accounted for revenue of P61.68 billion, up 13.7%.

The company registered a net loss of P1.18 billion in the first quarter of 2020.

On Thursday, shares in Cebu Air went down 4.41% to close at P37.90 each. — Arjay L. Balinbin