Thursday, November 12, 2009

J.J. Abrams' mystery box

From TED 2007

-Required Viewing
If you have any problem playing it, use the "required viewing" link



video

MGM headed for sale


MGM headed for sale

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Studio library, logo may be auctioned off soon
By PETER BART
MGM may be the best known logo in the entertainment business, but the company seems headed for another possible garage sale.

Several sources say they expect that MGM will essentially be auctioned off within the next few weeks.

This would mean that a major, such as Time Warner, could buy the MGM-UA library while another entity might acquire the logo, and yet another deal could be made for United Artists. Sources speculated that Kirk Kerkorian, who has already bought and sold MGM twice, might buy the logo once again.

Last summer Harry Sloan was bounced as MGM's CEO and Stephen Cooper, a specialist in restructuring companies (Krispy Kreme was one of his projects) started meeting with bankers with the aim of restructuring some $3.7 billion in debt. There was speculation that the combined assets of MGM may now yield as little as $1.5 billion in the present market.

The various equity owners of MGM, including several private equity firms, have already written down their $5 billion acquisition, which closed in 2004.

MGM's library contains 4.000 titles, but some specialists in film libraries consider its list of titles to be geriatric.

Any sort of auction would need approval of a two-thirds majority of the bondholders, and a couple of the bondholders insist they have not been contacted as yet. Some sources believe a pre-packaged bankruptcy is still an option, and there is still an expectation that Time-Warner might make a last eleventh hour bid.

Neither Cooper nor MGM would comment.

MGM's released only a remake of "Fame" this year. For 2010, it's opening two comedies -- "Hot Tub Time Machine" in March and "The Zookeeper" in October -- and a remake of "Red Dawn" in November.

Tuesday, November 10, 2009

Mark Zoradi steps down at Disney

I was at an intimate awards dinner Saturday night where Mark received the Louis B. Mayer award from UCLA's Entertainment & Media Management Institute. Mark is a very smart, extremely capable and personable guy. Disney is losing a talent.


Mark Zoradi steps down at Disney

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Exec exits post as worldwide marketing topper
By MARC GRASER
Rich Ross is starting to put his stamp on the Mouse House's feature operations.

Mark Zoradi announced on Monday his resignation as president of worldwide marketing and distribution of the Walt Disney Studios Motion Pictures Group, becoming the first senior executive to depart since Ross took the reins as chairman of Walt Disney Studios early last month (Daily Variety, Oct. 6).

Zoradi, who leaves immediately, had worked for the Mouse House for the past 29 years and was appointed by Dick Cook, who resigned as chairman of the studio in September.

Departure comes as the Mouse's high-profile holiday pic "Disney's A Christmas Carol" opened to a soft $31 million domestic this past weekend. But insiders said Zoradi's exit was tied to Ross' decision to tap his own senior ranks and was not related to the performance of the Jim Carrey starrer.

Zoradi's replacement has yet to be chosen.

Executive shuffles are hardly unusual when a regime change takes place at a studio, and those in marketing and distribution positions are often the first to be replaced, especially when the studio's film slate has been struggling at the box office. Ross, the former chairman of Disney Channels Worldwide, declined comment beyond a statement.

Monday, November 9, 2009

Videogame companies set-up studio pics


Videogame companies set-up studio pics

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Electronic Arts, Ubisoft, Eidos look to the big screen
By MARC GRASER
Where Marvel and Hasbro have led the charge for movies made from comicbooks and toys at the megaplex, Electronic Arts now hopes to do the same for films based on videogames.

A year after the second-largest gamemaker announced plans to use films as a way to grow its top franchises, it has set up six projects at studios around town or with high-profile producers, proving that despite a string of creative and financial blunders in the past, Hollywood still believes that a popular game franchise can turn into a successful series of tentpoles for studios.

One reason is the considerable coin the games biz rakes in: While overall sales are down 13% this year, videogames are still expected to generate approximately $20 billion in 2009.

EA already knows a thing or two about franchises, having produced over the years major moneymakers such as "The Sims," racer "Need for Speed" and the annual "Madden" football game.

Yet when the company realized it was focusing too much on sports games or pumping out sequels and expansion packs for aging franchises, and licensed games based on movies and TV shows, EA ponied up millions in development dollars to launch new titles to excite gamers, and possibly turn into new franchises -- titles including "Spore," "Dead Space," "Army of Two," "Mirror's Age," "Dragon's Age" and the upcoming "Dante's Inferno."

EA hopes those games don't just play on videogame consoles but also perform as lucrative sources of revenue from the sale of comicbooks and novels, toys, apparel and collectibles, as well as TV shows and movies.

For example, for last year's release of its sci-fi horror actioner "Dead Space," EA paired up with Image Comics to produce a comicbook whose plot served as a prequel to the storyline of "Dead Space: Downfall," an animated direct-to-DVD feature that ends where the game begins.

As part of a multipic deal, Starz Media's Film Roman produced the DVD toon, and aired the feature on its own cabler Encore. It's producing another animated feature that will bow around the release of "Dante's Inferno" early next year that has various Japanese and Korean anime artists conceiving their vision of the nine levels of hell.

EA shunned the idea of a multiplatform entertainment strategy in the past, thinking it distracted developers from making quality games.

But after leaving EA for three years, John Riccitiello changed that corporate decree when he returned to the company as CEO in 2007, pushing the idea that if a game can appeal to more than the hardcore gamer, it could sell more copies in the long run.

"Our goal is to get really good movies made that our discerning fan base will want to see, and reflect really well on EA and our titles to the millions of people who don't play our games," says Patrick O'Brien, VP of EA Entertainment, the division tasked with shepherding the game maker's nontraditional entertainment efforts. "We want to hit consumers where they are. They watch movies, spend a lot of time on the Internet, watch TV."

O'Brien has much bigger pictures in mind than DVD movies, however, eager to erase the stigma of bad videogame movies by placing its adaptations into the hands of notable screenwriters, directors and producers, through the help of United Talent Agency, which reps the gamemaker in Hollywood.

* This month, "Ice Age" creator Chris Wedge signed on to direct "Spore" as an animated creature feature for Fox that Greg Erb and Jason Oremland, who penned Disney's "The Princess and the Frog" and the Ben Stiller pic "The Return of King Doug" at Paramount, will script. EA and Fox are especially high on Wedge after "Ice Age" turned into a major franchise for the studio, generating $1.9 billion from three pics since 2002.

* EA and Fox are also developing a live action take on "The Sims" that John Davis is producing, while Film Roman is also developing an animated TV series based on the "MySims" games.

* "Bourne Ultimatum" scribe Scott Z. Burns is penning "Army of Two" at Universal; Peter Berg is attached to direct.

* Strike Entertainment ("Dawn of the Dead," "Children of Men") and U are behind a version of "Dante's Inferno" with Dan Harris ("Superman Returns," "X2: X-Men United") scripting.

* DJ Caruso is aboard to helm "Dead Space," with Marty Bowen and Wyck Godfrey producing through their Temple Hill ("Twilight") shingle. It's not yet at a studio.

* And Avi Arad, who helped Marvel launch "Spider-Man" and its other superhero film franchises, is now behind a number of videogame pics, including EA's alien invasion actioner "Mass Effect." The project, too, has no studio home yet.

EA isn't alone in its Hollywood aspirations.

Other publishers have recently sought out major movie deals, with Universal developing bigscreen versions of Take-Two's "BioShock" and Atari's "Asteroids," while Jerry Bruckheimer produced Ubisoft's potential "Prince of Persia" franchise at Disney. Eidos' "Tomb Raider" which already spawned two pics at Paramount with Angelina Jolie as the treasure-hunting adventurer, is getting a reboot over at Warner Bros. The studio also has a version of Capcom's "Lost Planet" in the works with Arad.

If it gets its way, EA wants to time the release of a film adaptation around the launch of a new game or vice versa.

But while it can take up to two years to produce a game, O'Brien has found it can take longer to deal with the studio development process in Hollywood.

"We've had to go through a huge educational process," he says. "It's a system that we'd like to move a lot faster than it does. We are a company with living, breathing franchises. The reason we are making movies is to support our core business. But things need to move on a snappy timeline for that to make sense."

That's why until those movies can be made, EA is producing its movies direct-to-DVD, which it will also distrib digitally through videogame consoles, or pursue other opportunities. A new deal with IDW Publishing will result in comicbooks for "Army of Two" and "Dragon Age" early next year. A series of novels based on "Warhammer Online: Age of Reckoning" already has been launched.

While it may not be able to control how quickly films can get made -- unless it decides to fund those projects, which it has yet to do -- EA hasn't lost all of its control over the creative process.

Rather than simply handing its games over to studios, EA remains hands-on as a producer in order to retain a say over the final film. It has a lot to lose, with a disappointing pic potentially hurting game sales. But it has a lot to gain should the film turn into a blockbuster.

For EA's adaptations, scribes have been given the freedom to run with their own ideas and not stick too strictly to the action or plots that play out in the games, because the thinking is that being too faithful to the games has resulted in lackluster films in the past.

"We explain what the world is about, what the missions are about, and then we leave the guy to do his job," Alain Tascan, VP and general manager of EA's Montreal studio, which produces "Army of Two," has said. "The way you tell a story in eight hours, 12 hours, and develop the characters, is completely different than two hours."

O'Brien believes the various spinoffs can deepen consumers' connection with a game.

"A good movie is seen by a couple hundred million people," O'Brien says. "Movies can introduce our titles to people who are not part of the two to six million people who play them every day," as well as introduce them to auds in other countries who may not be familiar with EA's franchises -- especially in Asia and South America, where EA is still growing.

The company hopes to eventually replicate much of the success Hasbro and Marvel have had in producing successful films that can in turn drive their core businesses.

"Those are companies I very much admire and watch closely in their evolution," O'Brien says.

It was only a matter of time before videogame publishers became more active in film.

"We've all been sleeping giants," O'Brien says. "We've had a great business and huge growth, but people haven't been as focused on ancillary stuff. When you look at what companies like Marvel have done, there's every reason to do it and no reason not to. It's just clear that if you can devote some resources to exploring and then pushing those kinds of productions, the payoff is significant."

WGAW reaches out to its scribes


WGAW reaches out to its scribes

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Guild seeks assessment of climate in Industry
By DAVE MCNARY
With annual earnings for writers having plunged 18%, the Writers Guild of America West has launched an online member survey seeking a "candid" assessment of the current climate for scribes.

WGA West president John Wells and the WGA West board of directors sent the missive to guild's members Friday, specifying feature and longform TV writers.

"We expect the data to be enlightening and informative for 2028>screenwriters as well as for the leadership and staff of the guild," the message said. "Furthermore, we believe it will help guide our2028>efforts to best represent the membership. Writer-specific information will be kept confidential."

The missive also said that each of the signers had already completed the survey and were all able to complete it in less than 20 minutes.

WGA West spokesman Neal Sacharow told Daily Variety that the survey's part of the guild's ongoing outreach efforts to members and wasn't triggered by its most recent earnings report.

The guild reported to members during the summer that earnings fell nearly 18% to $801.4 million for the fiscal year ended March 31 in the first full year following the 2007-08 writers strike. WGA-covered earning set a record in the previous year at $976.3 million.

The WGA report noted the number of writers reporting income declined 9.7% to 4,163. TV employment declined 11.2% to 2,929 slots while earnings for TV scribes declined 3.1% to $437.5 million. Feature film employment declined 14% to 1,716 slots. Film earnings, which had surged 19.5% in the prior fiscal year, declined a whopping 30.7% to $361 million.

The WGA's current feature-primetime contract with the Alliance of Motion Picture and Television Producers expires in May 2011.

Friday, November 6, 2009

Katzenberg: A Front-Row Seat at the Movies


Katzenberg: A Front-Row Seat at the Movies
"People want to see great stories, and while you have to adapt to changes, I think they are
opportunities, not liabilities"
By Maria Bartiromo
Few people know Hollywood better than Jeffrey Katzenberg, the onetime wunderkind who by the time he was in his
thirties had already been an executive at Paramount Pictures (VIAB) and was running the motion picture studio at Walt
Disney (DIS). After a much publicized falling out with then-Disney CEO Michael Eisner and a subsequent court
settlement that made him a very wealthy man, Katzenberg started DreamWorks SKG (DWA) with Steven Spielberg
and David Geffen. DreamWorks Animation was spun off from its parent in a 2004 IPO, and Katzenberg became CEO.
On Oct. 27, after DreamWorks Animation reported earnings—beating Street estimates for the fourteenth out of the past
15 quarters—I talked with the man who, from The Little Mermaid to Shrek, has been behind some of the most
acclaimed children's movies in history.
MARIA BARTIROMO
You've been a student of the entertainment business for years. Where is Hollywood headed?
JEFFREY KATZENBERG
I think a real seismic shift is occurring. Anytime you're in the center of these shifts, it's maybe not the wisest thing to
try and be predictive of where it all is going. But in the pastplus or minus—and I'm referring to the last 30 or 40 years
—every time a new platform has come along, the motion picture industry as a whole has usually done a fantastic job of
transitioning to it and ultimately gaining revenue. And many different platforms have come along, whether it was free
TV or pay TV or VHS or DVDs. Clearly, the next major transformation is going to be from hard goods to digital. There's
a lot of uncertainty and caution as to how best to get there. Moving from analog to digital has been disastrous for the
music industry. Hopefully our industry has learned from the music business.
Are movies an endangered species?
No. I think just the opposite. There's nothing like being in a movie theater with a couple of hundred other people,
laughing or being scared or being moved to tears. Those are among the most wonderful social experiences we're all
able to have with one another. All these other things are fine and good, but I don't think they are a replacement for
movies. I was just in India a week ago, and people are watching movies on their cell phones. They have 450 million
people who have cell phones, and [the business is] growing at the rate of 8 million a month. People want to see great
stories, and while you have to adapt to these changes, I think they are opportunities, not liabilities.
Isn't the DVD business weakening?
Yes, the market as a whole has been pretty challenged in the past 12 months. People are moving from purchase to
rental, and there's been a tremendous spurt in the growth of both Netflix (NFLX) and Redbox. But our CG [computergenerated]
animated movies are really different from the rest. We are primarily a mom purchase, more analogous to a
toy than to a movie.
Shrek The Musical is scheduled to close in January after just over a yearlong run. There are reports that it will
not break even. More important, The New York Times suggested that this first effort by DreamWorks Animation to compete with Disney on Broadway is essentially a defeat. Is the closing of Shrek a defeat?
No. I think that is a little harsh. First of all, I have to say we couldn't be more proud of the show itself. We've had a
respectable, albeit disappointing, run on Broadway. But we have tremendous opportunities to get value out of the
asset in the coming years. We have a touring company that will begin in Chicago next summer. We actually filmed the
show about 10 days or so ago. And at some point to be determined, we will release it as a DVD. We think there'll be
some nice profits.
Will DreamWorks go back to Broadway?
With the right creative group and the right property, for sure. [Broadway] has enormous potential.
Speaking of Disney, Bob Iger in a recent interview bemoaned the excesses of Hollywood spending, much as
your famous 1991 memo to the industry did when you were at Disney. Is Hollywood addicted to over-the-top
production and marketing costs?
I would have to say I think we [at DreamWorks] are very strategic and thoughtful about where and how we spend our
resources to market our films. Maybe we are so focused because we have only three movies a year. Bob is
overseeing a $50 billion enterprise that's got so many moving parts, he sort of looks at it from 10,000 feet. I look at it
from 10 inches.
I read a report that DreamWorks has banned the stars of the upcoming Shrek sequel from twittering about the
movie. Is that true?
Not true. Somebody twittered that, and it wasn't true.
So you're allowing the stars to twitter?
They haven't asked. Let me just say, we have a great cast. They've been partners with us for a decade in this
franchise and are free to support the movie in any way they think is good. I have that much trust in them.
You were one of President Obama's most ardent campaign supporters in Hollywood. How would you rate his
performance, and has he disappointed you in any way?
No, he has not. I think he inherited probably one of the most difficult and challenging agendas of any President in
history—certainly in modern history. I think he continues to do a good job of facing unprecedented challenges. I don't
know how he does it.

Wednesday, November 4, 2009

Bullish on Blu-Ray?

I think this is some wishful thinking, but if true, blu-ray sales = studio profits = better sales environment for screenwriters.

Bullish on Blu-Ray

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Bullish on Blu-Ray
Confab predicts format's bright future
By SUSANNE AULT, MARCY MAGIERA
The Blu-ray Disc format will ride to the rescue of the home entertainment industry -- eventually, according to a panel of top retail and studio execs at Tuesday's Blu-Con conference in BevHills.

Retail and studios acknowledge that consumers are still reeling from the recession, which is continuing to negatively impact the entire home entertainment business, and Blu-ray's momentum has not been enough to offset double-digit percentage slides of DVD. But when combining digital and Blu-ray gains, studios forecast the home entertainment business will level out or start to grow again by 2012.

"In 2012, we'll see the growth trend again," predicted Mike Dunn, 20th Century Fox Home Entertainment president, during a sesh moderated by Merrill Lynch analyst Jessica Reif-Cohen.

Martin Scorsese gave a ringing endorsement to the Blu-ray format, calling it "a very, very strong change for the better" in home entertainment during his keynote address, delivered via satellite from the DGA office in Gotham.

"Blu-ray is as close as you're going to get to the theatrical experience at home," Scorsese said. When he was working on the Rolling Stones concert docu "Shine a Light" a few years ago, he was enthused because he knew that thanks to Blu-ray "it would be transferred just that way to the home."

Scorsese discussed the new wave of film restoration and preservation being done by studios to bring classic films in the most pristine presentation possible to Blu-ray.

"I'm very excited and optimistic as a filmmaker and a film lover that Blu-ray is going to extend the life of film," he said. He noted that his favorite Blu-ray transfer so far is John Ford's "The Searchers."

Best Buy is aggressively merchandising both Blu-ray players and titles, rallying around the products as a key expanding business. In particular, Blu-ray players are this year's fastest-growing consumer electronics product, surging 112% in year-over-year sales, Mike Vitelli, executive VP of consumer operations group at Best Buy, said in a keynote. That tops the 106% and 85% jumps for popular ebooks and netbooks, respectively.

Best Buy anticipates 18.6 million Blu-ray players (including PlayStation 3 videogame consoles and Blu-ray set-top players) to sell in 2010. That marks a significant hike from the 10 million units of Blu-ray hardware expected to sell this year. Many of these players include Internet video capability, further extending their appeal.

Blu-ray players currently make up 66% of Best Buy's home entertainment hardware category, compared to 35% two years ago. Blu-ray titles comprise 25% of the retailer's video software, up from 13% two years ago.

"This is why we are bullish about Blu-ray," said Vitelli.

Beyond Blu-ray, video-on-demand is another rising area for studios, especially when offered day-and-date with the DVD/Blu-ray release.

"We see huge spikes in VOD activity" with day-and-date delivery, Warner Home Video president Ron Sanders said in a panel.

Dunn said Fox sees VOD revenue climb 20% when titles are offered day-and-date versus the traditional window.