Gross Behaviour - by Leonard Klady

Report to the Commiserable

About two weeks ago I received a call from the folks at Disney and was asked whether I would be doing a year-end wrap up piece and was there someone at the studio I wanted to talk to in that regard. It was not a totally unexpected call but, in truth, I hadn't really considered exactly how I wanted to look back upon 2003 in the film industry. I said, "yes" to both inquiries and that I would call them back in a couple of days.

When I began to ponder the possibilities, what popped to mind were the words: REPORT CARD. If you've had a traditional education (and are of a certain age) it's likely those two words carry with them a degree of dread. Personal memory is that in the area designated for teacher's remarks the great mass of humanity received a comment that amounted to: "(insert your name) is doing well but is capable of doing better." Though this would apply to everyone I have known in life, it amazes me to this day the degree to which parents found the critique alarming and goaded their children to strive toward something no mortal is capable of attaining.

Fully cognizant that the Hollywood majors, Indies and indefinables are all deserving of the pat assessment, a plan evolved. It would be interesting to critique the year from different studio vantage points. One major could be repped by a production executive, a marketing maven would voice another and a third would have the distinct perspective of someone in the international arena. With that in mind I called back to Disney and said that I'd like to talk to studio president Dick Cook. In the interim, I was asked the same questions by New Line and suggested marketing guru Russell Schwartz and proceeded to make additional requests to Fox and Paramount.

A week later, only Paramount replied with the offer of vice-president Rob Friedman on the understanding what he would speak off-the-record. Why, I wanted to know, would a senior executive choose to put the best face forward and elect not to be quoted? The studio contact could only say that was the condition and if it suited my purpose we could proceed.

Now, perhaps the holiday rush has impeded the process and perhaps my approach was ill advised. Regardless, with the clock running down to the New Year, waiting for a journalistic green light was not a consideration. It might be a nice addition to have an insider's opinion but we all know that the likelihood of frank, candid observation chafes at the political nature of studio operations. Better just to proceed and in the coming weeks attempt to reflect the landscape as defined by the pictures and presenters and aspire to be inclusive and not simply glib. The selection is somewhat random and vaguely alphabetic.

BUENA VISTA

Through December 21, Buena Vista's movies had grossed slightly better than $1.5 billion domestically for a 17.2% market share. It's $350 million ahead of its closest competitor and that gap won't shrink appreciably in the next 10 days.

The company had two features - Finding Nemo and The Pirates of the Caribbean - that grossed in excess of $700 million worldwide and appropriately their origins were two of its most stalwart suppliers, respectively Pixar and producer Jerry Bruckheimer. While the former has been making noise about a more favorable profit sharing arrangement, Bruckheimer already enjoys a healthy piece of the pie. His more sober sided Veronica Guerin was one of the studio's financial failures and its ripped from the headlines saga was the sort of change of pace project he's not likely to replicate in the future.

Disney has for more than a decade been dominant at the box office largely appealing to youngsters and families. It rarely makes adult films and has a dismal record with genre fare, particularly thrillers. It had modest success with Under the Tuscan Sun and Open Range and misfired with Cold Creek Manor. Its planned event film, The Alamo, was delayed until the summer of 2004 and it's obvious the company continues to struggle with serious material. Historically, the company has been as tight-fisted as Scrooge McDuck, so it's rare that a top director is employed and rarer still for the filmmaker to maintain an on-going creative relationship. The brief tenures of Martin Scorsese and Spike Lee at the studio resulted in less than career highlights.

Conversely, Disney has an enviable record for frothy, popular entertainment and its imprimatur carries considerable commercial clout. The company is generally good at capitalizing on heat and ran the distance on both Bringing Down the House and Freaky Friday. Its relationship with Spyglass is no longer exclusive, but it was nonetheless significant in 2003 with the company enjoying very good results on Shanghai Knights, fair response to The Recruit, exceptional international business with Bruce Almighty and disappointing overseas returns from Seabiscuit. Buena Vista International has also been a shrewd investor and distributor, particular in Spanish speaking markets and in Scandanavia.

The bedrock of the company, its family animated movies, has been less than vibrant of late. Its formulaic sequels such as The Jungle Book 2 and Piglet's Big Movie do well enough theatrically, but major enterprises such as last year's Treasure Planet and the current Brother Bear trail significantly behind The Lion King and Aladdin in all departments. Since the departure of Jeffrey Katzenberg, Disney has been unable to find someone to reinvigorate the division and another studio has yet to truly challenge its dominance in this very lucrative niche. It's also fair to say that apart from Freaky Friday, many of its live-action family films including Haunted Mansion and The Lizzie McGuire Movie have performed below expectations.

In classic studio fashion, last year's hits more than compensated for the disappointments and regrets on its release schedule. However, Disney vs. Eisner aside, it does seem like a more vulnerable operation in need of improved talent relationships and increased attention for its historic core family business.

DREAMWORKS

Tenth ranked for the year with a 3.1% market share and combined domestic box office of $270 million.

Since its inception, DreamWorks defining problem has been producing or acquiring a volume competitive annual slate. It's been able to get around a relatively consistent yearly output of six to eight pictures simply because the movies have been consistently high quality and commercially potent. But not this past year.

It's not quite correct to say that the company is going through an awkward transition because that just seems to be business as usual. Michael DeLuca was brought in to make more films at a price and the fruits of that labor - such as Biker Boyz and Head of State - have thus far been unspectacular. Unlike his experience at New Line, DeLuca has more hands pawing over projects and slowing the process. In the past year, DreamWorks opened just seven films and only Catch Me If You Can had the sort of worldwide success that has sustained the company. Old School from Ivan Reitman's company was also very profitable but had extremely limited appeal outside of North America.

Part of the dilemma confronting the company is that with such a limited number of movies, the scrutiny on a title-by-title basis is intense. So, when its summer attraction - Sinbad: Legend of the Seven Seas - fails to perform domestically and internationally, it sends jolting seismic waves within its domain and to those observing from the outside. The company desperately needs to ramp up production in order to shake off the industry perception that it's a secondary player and create a more diverse and steady stream of prestige and programmer movies that reflect a business plan that doesn't leap and dive with each new release.

FOCUS

Focus movies have grossed $96.7 million in 2003 for a 1.1% market share.

Unlike DreamWorks, one can understand the awkward, transitional nature of the company that's yet to emerge from a lineage involving Universal, Studio Canal, October Films, Pathe, et al. The new regime is barely a year old and the fruits of its labors; its direction, talent ties and preferences won't have any true contest until 2005. It would be hard to imagine it evolving as other than a prestige outlet given its past involvement with The Pianist and Gosford Park and with James Schamus steering its course.

At the very least, 2003 was a success d'estime with niche commercial and critical rewards from Lost in Translation and Swimming Pool and serious award attention given 21 Grams. It also did fairly well with the urban ethnic comedy Deliver Us from Eva and the balance between genre and upscale titles is certain to figure into the company's future. There's no question that Focus has the resources and connections to talent to give it distinction and its current nascent phase allows for a healthy amount of industry good will and optimism.

MGM

Ninth ranked for the year, MGM films have grossed $369 million for a 4.2% domestic market share.

The studio that refuses to die. The bulwark of MGM boils down to an exceptional film library and James Bond and, as the latter element was on hiatus, it wasn't a very good year. Its top grosser was Legally Blonde 2 and the sequel emerged as shrewd, cynical and disappointing - though profitable. However, its critical drubbing may have aborted what was viewed as a vibrant franchise along the lines of The Pink Panther which MGM is trying to resurrect anyway.

One can't help feeling that the company is clinging to life by its fingernails and desperately eyeing potential franchises (Agent Cody Banks) or exploiting the warhorse Bond or capitalizing on recent surprises such as Legally Blonde and Barbershop. However, that left field wonder was sorely missing in 2003 and while there was no conspicuous failure on the order of Windtalkers, its successes such as Good Boy and Jeepers Creepers 2 were acquisitions rather than developed in-house. The company lacks significant ties to A list talent and its recent releases Out of Time and Uptown Girls give the sense of recycled packages that filtered down to a company in need of playable product. One has the sense that there are people within MGM ready to take bold risks and frustrated by tight purse strings and a reliance on predictable money streams.

The decision to resurrect United Artists as a specialized label is hard to figure into the big picture but its early acquisition of Bowling for Columbine at least buys it some time to define itself. It's yet to deliver another commercial success but its quirky and laudable slate of Pieces of April, Together and Assassination Tango hold out the promise for a viable operation.

Since transitioning from more stars than in the heavens to James Aubrey and Kirk Kerkorian, MGM (and UA) has been trying to get back into the game with never more than fitful success that's anecdotally included Moonstruck, Rain Man, Get Shorty, The Birdcage and Leaving Las Vegas. Its heritage has provided enormous good will but it truly needs another talent friendly creative executive on the order of John Calley to reverse its current artistic lethargy. The list of potential candidates isn't voluminous but Ned Tannen and Mike Medavoy are certainly worthy of consideration.

Next week: Lions Gate, Miramax, New Line, Paramount