Universal Pictures Gets Transparent
An enlightening LAT interview by Claudia Eller (Universal execs under fire for a flop-filled season) with Chairmen Marc Shmuger and David Linde around their disappointing summer slate. Three comedies and 1 period drama – respectively “Land of the Lost”, “Bruno”, “Funny People” and “Public Enemies” – all fell short at the box office given expectations, casting and previous filmmaker histories. The transparency of such an interview in Hollywood is to be commended from the two execs, and yet Nikki Finke will still be gunning for Jeff Zucker, one presumes. Per Schmuger: “First, there’s a real need to be making movies for less money. Second, there’s a real premium on sharper, more marketable concepts. Audiences are clearly seeking escape from their lives.” More after the jump…
Outside of the Harry Potters and Transformers, the studios’ focus on niches has humbled more than a few top execs.
That humility (en)forces sequelitis, fewer engaging adult dramas and high, but narrow or niche concepts that swell into box office sleepers.
Given Shmuger’s comment that films like “Taken” and “Paul Blart: Mall Cop” christened new starts in Liam Neeson and Kevin James, and “Star Trek” and “The Hangover” created successful ensembles with relative unknowns, the stars do not seem to be aligned with the latest DVD market drops.
Does it also mean you’re going to be more rigorous on talent costs, especially since studios can no longer depend upon stars to sell movies?
Linde: There used to be a margin of error that was supplied by the growth of the DVD business — that margin of error is gone. So you have to adapt your business accordingly. That means there has to be less aggregate cost in making these movies — whether it’s upfront or back-end costs — and that ultimately means coming up with new partnerships with talent.
Shmuger: There’s no doubt the star system is in transformation. [...] That’s a significant shift in the meaning of star power and a shift to the premium that is being put on concept and genre.
Again, either given or not given “Bruno” via MRC’s deal, talent is next up for value realignment given that the studios are losing DVD ground and will be forced to cut in more performance-based compensation and/or equity.
How has the bottom falling out of the DVD market affected your filmmaking and release strategy going forward?
Shmuger: We probably will be making 13 to 14 movies a year. There was a period . . . when we were making four or five more than that. So it’s a significant readjustment in recognition of the new economics of the business.