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First published in 2013 by PALGRAVE MACMILLAN on behalf of the

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Contents

Introduction 1 1 Mergers and Acquisitions: The Quest for Synergy 7 2 Production: Tentpoles and Franchises 25 3 Distribution: Open Wide 66 4 Exhibition: Upgrading Moviegoing 88 5 Ancillary Markets: Shattering Windows 101 6 Independents: ‘To the Rear of the Back End’ 114 Conclusion 149

References and Further Reading 152 Index 163

Introduction

On 10 January 2000, Time Warner, the venerable entertainment conglomerate, announced that it was merging with AOL, the world’s largest internet service provider. AOL purchased Time Warner for $166 billion in stock. Gerald M. Levin, the Time Warner CEO, justified the merger by stating that the internet had begun to ‘create unprecedented and instantaneous access to every form of media and to unleash immense possibilities for economic growth, human under- standing and creative expression’ (Arango, 2010). The merger was considered ‘the deal of the century’, and climaxed a decade of mergers and acquisitions during which the largest media conglomerates jockeyed for market dominance. In the belief that bigger is better, media moguls asserted there were competitive advantages in marrying content – movies and TV shows – and the means of distributing it to consumers via broadcasting, cable, satellite and broadband. Consequently, every sector of the business was put into play during the 1990s, as media executives pursued the consolidation of all aspects of the business within huge media conglomerates guided by the principle of synergy. Yet within weeks of the AOL–Time Warner merger, the dot.com bubble burst and internet stocks plummeted. At the time of the merger, AOL Time Warner had a combined market value of $342 billion, placing it among the four largest companies in the USA. AOL Time Warner’s worth had been propped up mainly by AOL’s inflated stock at the height of the dot.com bubble. By the end of 2002, AOL Time Warner posted a loss of nearly $100 billion, the largest in corporate history. The conglomerate continued on a downward path, eventually losing 83 per cent of its market value. As for AOL itself, the company was a leader of the internet revolution throughout the 1990s, but was slow to take advantage of broadband delivery during the 2000s and lost customers in droves to other internet providers. Linking content and distribution had not delivered the promised synergies. Time Warner removed AOL from its masthead in 2003 and spun off AOL itself from the company in 2009. Time Warner was not the only media company hit by the bursting of the dot.com bubble. Vivendi Universal Entertainment, the result of a merger of Vivendi, the French telecommunications company, and Seagram’s Universal Studios in 2000, posted a $14 billion loss at the close of 2001, the biggest loss in French corporate history. Jean-Marie Messier, who was aspiring to transform

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The largest merger in American history

Vivendi from a French water utility into a global media conglomerate, had acquired stakes in wireless internet and media assets in Europe and wanted Universal’s movies and music to distribute across a multitude of platforms worldwide. Like the AOL–Time Warner merger, the expected synergies of con- vergence did not materialise. The dot.com bubble burst decimated Vivendi’s stock, which it had used to finance its buyouts, and the company was put on the block, to be sold to General Electric in 2003. But the internet had arrived, and its customer reach was so great that no studio could afford not to embrace new media in one form or another. The internet sector had rebounded from the dot.com bubble burst by 2005, which sparked another buying spree as the majors searched for promising internet entertainment and social network sites. The majors have yet to discover a satisfactory formula to monetise digital media. This failure became acute in 2007, when DVD sales for the first time in eight years began to fall. An industry cash cow since 1999, DVD sales of new releases and library titles had grown to become the largest single source of revenue for the studios, far outstripping theatrical exhibition. ‘For a time it seemed as if studios were printing money, with an explosion of DVD sales reaching some $24 billion in 2006,’ said Marc Graser. ‘Then the business started to shrink, with revenue from DVDs down to $21.6 billion last year [2008], and slumping another 13% this year [2009]’ (Graser, 2010a). Sales of Blu-ray discs beginning in 2006 did not stop the decline. Two of the culprits were Netflix and Redbox. The explosive growth of Netflix’s DVD-by-mail and internet streaming services and Redbox’s rental kiosks offered cheaper options for watching movies than buying them on DVD. Such options became even more of a draw after the start of the recession in 2008. The downturn in the economy meant that many people had less discre- tionary money to spend on entertainment. This was especially true with teenagers, the most coveted age cohort of the studios. And there was increased competition for leisure dollars, which had a significant impact on the movie industry. The total domestic box office increased from $7.75 billion in 2000 to a record high of around $10.6 billion in 2009 and 2010. However, admissions – the number of tickets sold – declined from 1.57 billion in 2002 to 1.34 billion in 2010, after fluctuating several times (MPAA, 2010). In need of escape, people were still going to the movies, but not quite as often. Actually, the downturn was worse than the numbers suggested. After adjusting for inflation, the annual

I N T r O D U c T I O N 3 box-office take in the first years of the decade exceeded the 2009 and 2010 fig- ures. This despite the higher ticket prices exhibitors were charging for the glut of 3-D films that reached the market beginning in 2009. In the following pages, I describe how the arrival of the internet, the decline in DVD sales and changing consumer viewing habits impacted the American film industry. The time frame is 2000–10. Chapter 1 outlines the round of mergers and acquisitions in the media industry, which began in the 1990s. Going into the new millennium, the same six media conglomerates, some renamed, emerged larger and more powerful than ever. But one thing changed; the major Hollywood film studios now played a relatively minor role in the bottom lines of their conglomerate parents in terms of revenue. As a result, they were more beholden than ever to calls for increased profitability from their conglomerate chiefs and from stockholders. The pressure to increase profits became more intense when Time Warner and Viacom reversed course by jettisoning distribution to concentrate on exclusively on content. Distribution entities would come and go in the era of the internet, but the survivors would always need movies and television shows to attract customers, the thinking went. Chapter 2 describes the impact of corporate realignments on Hollywood’s production policies. In building their annual slates, the studios fled to safety by cutting back on the number of pictures they produced and by relying on big- budget tentpoles and franchises more than ever to target young people and families. Superhero movies based on popular comic books and toys and sci-fi actioners were considered safe bets. Such pictures were instantly recognisable, easily marketable and exploitable across all divisions of the studio. Moreover, they were easily expandable into sequels and franchises. Fleeing to safety, the studios became risk averse. To reduce costs, studios closed underperforming units, cut salaries, slashed jobs and shot their pictures wherever subsidies could be found. To further reduce their risks, the majors partnered with private investors, hedge fund managers and co-producing partners around the world. Mid-level pictures, which were risky to produce, were consigned mostly to outside producing partners. By producing fewer films of their own, the studios created a buyers’ market for talent. Writers were being paid less to develop new projects and actors and directors, with the exception of the top tiers, were being offered much smaller fees upfront in return for a bigger cut of the profits. A new breed of studio chief carried out the mandates from the head offices of the major conglomerates. This new generation of studio bosses earned its stripes outside of Hollywood and harboured little sentimental attachment to the movies. Chapter 3 surveys the time-tested techniques Hollywood used to distribute its pictures. It was a mass-marketing approach, which relied on massive TV

4 H O L LY WO O D I N T H E N E W M I L L E N N I U M advertising and saturation booking to capture the lion’s share of the box office quickly to recoup production costs. The strategy had served Hollywood well for decades. The internet provided new possibilities to reach audiences. The studios used the internet in conventional ways at first, by building official websites for their pictures and by dealing with the plethora of emerging fan sites that were undermining their strict control over publicity. Later, the studios embraced social networks such as Facebook and Twitter and the video-sharing site YouTube to generate word of mouth. Dealing with the future, however, posed a challenge. Different age groups used the internet in unexpected ways, and pre- dicting future trends in internet usage was impossible. For the time being, the traditional one-size-fits-all approach to marketing was still effective, but Hollywood is poised for change. Chapter 4 examines the role exhibitors play in sustaining moviegoing. Today, the exhibition sector in the USA is dominated by five chains. Motion picture theatres traditionally enjoy protected status in the distribution cycle and are the largest revenue source for most new studio releases. In dealing with exhibitors, the standard film rental terms of the major distributors enable them to capture the lion’s share of the box office at the beginning of the run as a reward for financing the picture. But, in return, distributors permit exhibitors to deduct their overhead expenses off the top throughout the run. During the 1990s, a growing number of leisure-time alternatives became available to people. Exhibitors responded by upgrading theatres. The free-standing megaplex with stadium seating, ceiling-to-floor screens and creature comforts became the norm by 2000. Because the luxurious megaplexes drew customers away from older mall theatres, the big chains were left with a lot of white elephants. The chains solved their dilemma by declaring bankruptcy, which enabled them to break the leases of their mall theatres and to abandon them altogether. But the bankruptcies left some of the chains vulnerable to takeovers by speculators and led to the consolidation of the sector. Exhibitors were also challenged by home entertainment options that included high definition television and lush surround sound. To protect their pre-eminent distribution window, theatre chains converted to digital projection. The conversion was an attempt, in part, to neutralise the growing popularity of high-end home entertainment centres. Although digital projection was hyped in the press as a technological revolution, it did not substantially improve the moviegoing experience. However, it did make possible the easy adoption of 3-D, which did, and helped buttress the box office. Since digital projection saved the major studios millions in print distribution costs, distributors agreed to help defray the costs of the conversion by paying the major theatre chains a ‘virtual print fee’ of around $1,000 per screen for each movie

I N T r O D U c T I O N 5 they distributed digitally to the participating theatres. This accelerated the conversion to digital exhibition, which is quickly becoming the industry standard. Chapter 5 deals with ancillary markets. After 2007, the challenge for Hollywood was how to make up for declining DVD sales. It faced a dilemma, however; a growing number of people in its core audience wanted to watch movies and TV shows anytime, anywhere and on all devices, while any tampering with the distribution cycle to satisfy that need would incur the wrath of the National Association of Theater Owners, the trade association, which regarded the four-month theatrical window as sacrosanct. Netflix and Redbox offered people cheaper options for viewing movies than buying them on DVD or renting them from video stores. The First Sale Doctrine prevented the majors from doing anything to stop Netflix from renting out new DVDs by mail after their release date, but the majors could weaken Netflix’s streaming service by charging more for the streaming rights to newer movies or by withholding new titles from the service altogether. In the case of Redbox, several studios negotiated deals with Redbox in which Redbox agreed to delay the rental of new titles for twenty-eight days after they hit the market in return for a lower wholesale price for the DVDs from the studios. But such manoeuvres did little to restore DVD sales to their former glory. The majors, therefore, pursued other alternatives, the most promising of which was video-on-demand (VOD) over cable. Older titles had long been available on pay-per-view. To generate more revenue from the window, the majors agreed to make new titles available to the cable services the same date they are released to home video. In other words, the majors collapsed the home video and VOD windows. Collapsing or shortening other distribution windows to support premium VOD or digital VOD experiments was not as easy because exhibitors threatened to boycott any new title that was simultaneously playing in another window. The majors stopped tampering with the theatrical window, temporarily, but the cause is far from dead. Chapter 6 surveys the independent film market. James Schamus, the head of Universal’s Focus Feature speciality unit, has characterised the independent market as ‘to the rear of the back end’ of filmdom (Schamus, 1998, p. 91). Sadly, it is an apt appraisal of a sector of the industry that has been a major source of critics’ favourites and award winners. Independent film-making flourished during the 1980s, when premium cable channels like HBO and Showtime, in need of a constant flow of films, instituted the pre-sales agreement, which provided filmmakers with partial financing upfront in return for the pay TV rights. Independent film-making also flourished in the 90s, when the success of Miramax, New Line and Samuel Goldwyn convinced the majors to form speciality units and when talent agents and investors of all stripes scoured Sundance in search of the next crossover hit like Pulp Fiction. But afterwards, conditions

6 H O L LY WO O D I N T H E N E W M I L L E N N I U M changed. To reduce studio overheads, the majors closed underperforming speciality units and invested the savings in blockbusters. Declining DVD sales, once a major source of revenue, hit the indies hard. And with collapse of the financial markets in 2008, the prices being paid for indie product dropped. Today, the few indie films that receive theatrical distribution play mainly in New York and Los Angeles for short runs. A lucky few also play in the Landmark theatre circuit. A theatrical run, no matter how brief, gives a picture cachet that helps sales in foreign and ancillary markets. To improve conditions, independent film-makers and their supporters have devised innovative ways to reach audiences, witness the marketing efforts of Mark Cuban and Todd Wagner’s 2929 Entertainment and IFC Films and the Sundance and Tribeca film festivals. Concluding the chapter is an overview of the mini-majors, in particular Lions Gate Entertainment, Summit Entertainment and Ryan Kavanaugh’s Relativity Media. The independent sector always supported a few such companies, but because they function in the mainstream theatrical market in competition with the majors, they too lead precarious lives.

Mergers and Acquisitions: The Quest for Synergy

The American film industry is dominated by six studios – Warner Bros., Walt Disney Pictures, Sony Pictures Entertainment, Paramount Pictures, 20th Century-Fox and Universal Pictures. They produce practically all the top box- office hits, they dominate the playing time of the nation’s theatre screens and they account for nearly 80 per cent of the domestic box office every year on average. These studios trace their roots to the silent film era, when the industry became big business, and have remained the major players ever since. But one thing changed; beginning in the 1960s, the majors were either subsumed into burgeoning conglomerates or became conglomerates themselves through diversification. As subsidiaries of giant media concerns, the six major studios account for only a small share of the parent company’s total take, around 10–15 per cent (Bart, 2010b). What this means for Hollywood is the principal focus of this book.

Growth of the Domestic market To understand the structure of today’s Hollywood, one has to go back to the 1980s. The motion picture industry entered a new era of prosperity, the result in part of two new distribution technologies: pay television and home video – each of which extended the market and the revenue stream for feature films. Until then only one ancillary market of consequence existed for feature films – network television. Pay TV came into its own in 1976, when Home Box Office (HBO), a Time Inc. company, leased transponders on RCA’s domestic satellite, SATCOM I, and began transmitting uninterrupted, uncut programming to cable systems across the USA. To build its ‘premium’ service, HBO fought the Federal Communications Commission’s (FCC’s) restrictions on the cable industry that protected ‘free’ network television. After winning the right to show recent Hollywood feature films on its service in a timely manner, HBO was joined by other premium services such as Viacom’s Showtime to create a second ancillary market for feature films. Home video also got its start in the 1970s, when two Japanese consumer electronics giants – Sony and Matsushita – introduced videotape recorders on

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Studio Parent Company and Reporting Segments

Warner Bros. Time Warner Inc. Networks Filmed entertainment Publishing Walt Disney Pictures Walt Disney Company Media networks Parks and resorts Studio entertainment Consumer products Interactive media Sony Pictures Entertainment Sony Corporation Electronics Games Pictures Financial services Music Paramount Pictures Viacom Inc. Media networks Filmed entertainment 20th Century-Fox News Corp. Filmed entertainment Television Cable network programming Direct broadcast satellite television Magazines and inserts Newspapers and information services Book publishing Other Universal Pictures Comcast NBC Universal Broadcast networks Film Cable networks Digital media Parks/resorts

Table 1.1 The Hollywood Majors and Their Parent Companies competing formats – Betamax and VHS, respectively – which enabled consumers to store and retrieve television programming delivered to their homes. Fearing that the new technology would undermine their control over the availability of feature films, Universal and Disney brought a suit against Sony, charging it with copyright infringement. Instituted in 1976, the ‘Betamax case’, as it was called, eventually reached the US Supreme Court in 1984. Although the court ruled

M E r g E r S A N D Ac Q U I S I T I O N S 9 against the majors, they nevertheless emerged as winners. By then, the home video market had expanded exponentially. More than six Japanese manufactur- ers had entered the business, both in their own names and as suppliers of machines to American firms. In the interim, VHS had overtaken Beta as the preferred format for home video. The price of machines dropped and the VCR was fast becoming a ubiquitous home appliance. Although the theatrical box office reached a new high of $5 billion in 1989, the home video market generated twice that. Capitalising on the appeal of their hit pictures and film libraries, the majors devised a way to extract the lion’s share of the revenue from their videocassettes: they instituted a two-tier pricing strategy, charging a higher price initially for sales to video stores and a lower price months later for sales to individual consumers. By 1990, home video was generating extraordinary profits for the majors. And because the window could be serviced before pay TV, home video enabled Hollywood to break HBO’s hold on the pay TV market. The public demonstrated its willingness to pay for convenient entertainment in the home. As noted by Warner Communications, ‘For the first time in history, the individual member of the audience is sovereign, no longer a passive receiver. With cable television, videotape players, and other electronic accessories the audience has gained control over what it sees and when it sees it; its already widening options will soon be limitless’ (Warner Communications, 1980). Home video did not kill the movie theatre as some had predicted; in fact, the number of movie screens and the domestic box take increased substantially during the 1980s. The status of exhibition had actually improved. Pay cable and home video needed feature films, especially hits, which established themselves in one place only, the theatre.

Growth of the international market The growth of the international market for Hollywood films during the 1980s resulted from the upgrading of motion picture theatres, the emancipation of state-controlled television and the growth of home video. Outside the USA, nearly every market was under screened. Western Europe, for example, had about one third of the screens per capita of the USA, with the same population. And most of its theatres were old and tired. To resuscitate moviegoing, the majors partnered with local investors in the principal markets and went on a building spree to expand and renovate exhibition. International demand for Hollywood films expanded as a result, reaching an historic milestone in 1994; for the first time, foreign sales outpaced domestic. With the emancipation of state-controlled television, in Western Europe in particular, privately owned commercial interests quickly introduced new satellite and cable services. In the UK, where viewers had long been restricted to two

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BBC and two quasi-independent stations, British Satellite Broadcasting and Sky Television introduced nine new pay TV services. In France, Canal Plus, the country’s first pay TV service, attracted 3 million subscribers within five years. By 1989, Western European television reached 320 million people and 125 million households (vs 250 million people and 90 million households in the USA) and showed enormous potential for Hollywood entertainment. The third – and largest – source of new revenue came from home video. The spread of VCRs in Western Europe demonstrated that, given a choice, consumers preferred more variety than their state broadcasting monopolies provided. In 1978, 500,000 VCRs were sold; by 1987, VCR sales topped 40 million, or nearly one third of all households. Consumers not only wanted to time- shift programming to suit their schedules, but also to enjoy different kinds of programming, particularly Hollywood movies. Today, filmed entertainment is America’s second-largest net export. Hollywood’s largest markets are Western Europe, the Pacific Rim and Latin America. During the new millennium, theatre admissions in the USA declined. Not so overseas. In 2004, more than 1 billion tickets were sold in the European Union alone, a record. The international box office rose steadily during the decade, reaching a $20 billion benchmark in 2010. In that year, the Motion Picture Association of America (MPAA) reported that 67 per cent of the total box-office revenue collected by the majors came from overseas, and that the percentage was expected to grow. Hollywood had entered the age of ‘globalisation’. As described by Time Warner, the world’s largest media and entertainment company, globalisation dictated that the top players in the business develop long-term strategies to build on a strong base of operations at home while achieving ‘a major presence in all of the world’s important markets’ (Time Warner Inc., 1989). Achieving these goals led to a merger movement in Hollywood that has yet to run its course. The rationale behind the merger movement was a faith in ‘synergy’, that bigger is better. As touted by business leaders, ‘synergy’ was a belief that one plus one could equal three. Described another way,

Synergy is to modern business what alchemy was to the Middle Ages – an arcane process that claims to create riches. Alchemy proposed to turn ordinary metal into gold. Synergy claims to increase profits through corporate collaboration … Alchemy was a pseudoscience so compelling that it retained its appeal to kings and princes for centuries. Synergy has the same hold on the capitalist imagination of our time. It’s a compelling illustration of the truth that words have the power to blind us. (Fulford, 1995)

Index

ABC 12, 16, 46–7 Air Force One 50 animation cont. Abu Dhabi Media Company Aladdin 30, 81 DreamWorks Animation 38 Alcon Entertainment 39, 43 30–1, 55–6, 57, 62, 64 Academy Awards Alice in Wonderland 32, 100, Fox Animation Studio 62, animated features 31 111 64 Columbia Pictures 54 All About My Mother 135 Illumination Entertainment DreamworksSKG 55 All Good Things 128 32, 33, 64 Focus Features 143 Allen, Tim 29, 30 Image Movers Digital 33, foreign-language films Allen, Woody 135 49 132–3, 134 Almodóvar, Pedro 134, 135 IMAX 98 Fox Searchlight 54, 140 Altman, Robert 116 motion-capture technology Fox 2000 61 Alvin and the Chipmunks 25, 32, 33, 49 Lionsgate 145 38, 61–2 Pixar 30–1, 47–8, 62, 64 Miramax 114, 117, 126–7, Amazon.com 108, 112, 131 3–D 32–3, 98 135–6 Amblin Entertainment 29, Anschutz, Philip F. 39, 92 Oscar race 46, 79, 119, 34, 45 Antichrist 131 126, 132–3 AMC Entertainment 88 Antz 30 Paramount Vantage 141 AMC Networks 129 AOL 17–18, 21 Picturehouse AMC Theatres 92, 93, 96, AOL Europe 53 Entertainment 143 99, 118 AOL Time Warner 1, 2, Sony Pictures 53–4 American Beauty 55, 120 17–18, 19, 22, 42, 43 Sony Pictures Classics American Film Market Apollo 13 34, 63 133–4 (AFM) 124–5 The Apostle 120 Summit 146 American Pie 2 63 Apple 30, 107, 112 20th Century-Fox 58–9 American Playhouse 139 Arachnophobia 45 Universal Pictures 63 American Psycho 145 Arad, Avi 28 Warner Independent American Splendor 143 Arango, Tim 18, 44 Pictures 143 America’s Sweethearts 51 Arbitron 93 Weinstein Co. 138–9 Analyze This 44 Ardiente Paciencia 136 Acland, Charles 90 Anderson, Paul Thomas 141 Armageddon 46 Adams, Tom 103 Anderson, Tom 20 Aronofsky, Darren 53, 122, admissions 2, 89 Angela’s Ashes 34 141 see box office receipts Angelica Film Center 118 art films 52 advertising 3–4, 67, 74–5 Angels & Demons 53 art houses 132, 151 The Advocate 136 The Animal 51 Artisan Entertainment 82–3, agents see talent agents animation 145 aggregate settlement 88–9 Blue Sky Studios 31 Ashley Famous 11 Aho, Debra 74 CGI technology 30–2 AT&T 17 Ain’t It Cool News 82, 83 Disney 29–30 Atlanta Braves 16

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Atlanta Hawks 16 Battsek, Daniel 137 Blu-ray format 2, 53, 54, Atlantic Records 11, 42 Bay, Michael 57, 79 103, 113, 150 Atlantic Release 115 BBC 10 Bong, Joon-ho 129 Atom Entertainment 21 A Beautiful Mind 63 Bordwell, David 133 Atom Films.com 123 Beauty and the Beast 30, 81 The Bourne Identity 63 Au Revoir les Enfants 134 Becker, Wolfgang 135 The Bourne Ultimatum 64 audience Beckinsale, Kate 53 box-ofﬁce receipts black 53 Bee Movie 57 domestic 2–3, 89, 149 Comic-Con 26–7 Beineix, Jean-Jacques 120 foreign-language ﬁlm share core 5, 68, 93, 149, 150 Belle Époque 134 132 movie ratings 71 Beloved 46 indie share 114 segments 26, 45, 58, 60–1, Belton, John 97, 100 international 9, 10 70 Benigni, Roberto 120, 136 majors’ share 4, 7, 66 social networks 85–7 Berlin International Film see admissions target advertising 74 Festival 119 Boyle, Danny 140 Avatar 32, 49, 58–9, 72, 100, Berman, Shari Springer 143 Boys Don’t Cry 130, 140 111, 149 Bernard, Tom 120, 134 Branaugh, Kenneth 116 The Avengers 55 Berri, Claude 134 Branson, Richard 65 Aviv, Oren 48 Bertino, Bryan 143 Bravo 23 awards season 126–7 Bertolucci, Bernardo 54 Bridges, Jeff 28 Axel, Gabriel 134 Best Buy 112 Bridget Jones: The Edge of The Best of the New York Reason 63 Babel 141 Erotic Film Festival 115 A Brief History of Time 122 Babette’s Feast 134 Betamax 8–9 Brillstein-Grey 55 Back to the Future 34 ‘Betamax’ case 8–9 British Academy of Film and Bajarin, Tim 85–6 Bewkes, Jeffrey L. 21, 44 Television Arts 126 balance sheet borrowing 33 The Big Chill 120 British Satellite Broadcasting Bale, Christian 27, 28 Billy Elliot 142 10 bankruptcies 28, 100, 105, Bing, Jonathan 89 British Sky Broadcasting 19 119 black audiences 53 Broadcast.com 39, 118, Barcelona 116 Black Hawk Down 51 127 Barco 96 Black Swan 53–4, 141 Brokeback Mountain 143 Barker, Michael 114, 132, Blades of Glory 57 Bronfman Jr, Edgar 14, 19, 134 The Blair Witch Project 82–3, 21, 62 Barnes, Brooks 33, 49, 97, 122, 145 The Brothers Bloom 123 112 Blake, Tim 145 The Brothers McMullen 122 Barron, Steve 116 The Blind Side 37, 39, 110 Brown, Dan 53 Bart, Peter 23–4, 35, 45, 55, Blockbuster Entertainment Brown, Tina 137 57, 65 15, 21, 103, 105, 108 Bruce Almighty 63 Batman 25, 27, 50 blockbusters 67–8 Bruckheimer, Jerry 34, 46, Batman Begins 27 blogger chatter 70 47, 77 Batman Forever 27 Blood Simple 122 Bubble 128 Batman franchise 26, 28, 41, Bloom, Marcia 134 A Bug’s Life 30, 56 45, 123 Bloom, Orlando 47 Bugsy 50 Batman Returns 27 Bloomsbury Publishing 41 Bullock, Sandra 37, 39 Batman & Robin 27, 60 Blue Sky Studios 31 Bunny 31 Batman trailers 75 Blue Valentine 138 Burger, Neil 147

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Burke, Steve 64 Cavill, Henry 148 Cloudy with a Chance of Burn After Reading 63, 143 CBS 12, 14, 15–16, 17, 21, Meatballs 32, 54, 100, Burns, Ed 122 50 111 Burns, Michael 145 CBS News 50 CNBC 23 Burton, Tim 27 CBS Records 12 Coca-Cola 12–13, 46, 49, Bwana Devil 97 Cegetel 19 50, 79 Central Station 135 Cocaine Cowboys 129 Cable News Network (CNN) CGI technology 30–2 Coen, Joel 62, 63, 122, 126, 16 Chariots of Fire 120 141, 143 cable television 14–17, 22–3, Charlie and the Chocolate Coen, Ethan 62, 63, 122, 109–10, 112 Factory 44 126, 141, 143 Caché 135 Chatfield, Tom 95 Cohn, Harry 50 Calley, John 50–1, 53 Che 130 Coinstar 108, 109 Cameron, James 32, 49, 54, Chemical Bank 116 Collins, Suzanne 146 58–9, 72, 149 Chernin, Peter 58 Columbia Pictures Campanella, Juan José 134 Chiba, Sonny 115 Entertainment (CPE) Campbell, Martin 44 Chicken Little 32, 47, 98 12–13, 50, 90, 139 Canal Plus 19 Children of the Corn II: Columbia TriStar Motion Cannes International Film The Final Sacrifice 118 Pictures Group 50 Festival 117, 119, 122, Cholodenko, Lisa 143 Columbus, Chris 41 123, 124, 129, 141 Christie 96 Comcast 22–3, 64, 110, 143 Canning, Iain 138 A Christmas Carol 49, 100 comic books 3, 11, 26–8, 44 Cannon Group 144 Cianfrance, Derek 138 Comic Con 26–7, 76–7, 85 Canton, Mark 50 Ciepley, Michael 131 The Company Men 138 Capital Cities/ABC 15–16, Cinema Advertising Council Con Air 46 17, 19 93 concession sales 93 Capital Cities Cinema Now 112 Condon, Bill 145 Communications 16 Cinema Paradiso 117 Connery, Sean 25 Captain America: The First Cinemark Theatres 88, 92, Convex Group 39 Avenger 55 93, 96 Cook, Dick 46, 48, 49, 137 Carell, Steve 140 Cinemax 104 Cooper, Bradley 147 Carmike Cinemas 88, 91 Cineplex Odeon Theatres Cooper, John 121 Carolco 115 90 Coppola, Sophia 143 Carrey, Jim 63 Cinerama 97 Coraline 143 Cars 30, 78 Cinetic Media 123 Corben, Billy 129 Cars 2 26, 30, 78 Cisco Systems 18 Corliss, Richard 90 Case, Stephen M. 17, 18, 20, City Slickers 40 The Counterfeiters 134 22 City Walk 29 Cowboys and Aliens 78 Cash, Johnny 61 A Civil Action 46 Cox, Alex 116 cash-break zero deals 37 Clash of the Titans 32 Cox Communications 110 Casper 29 Classification and Rating Cradle Will Rock 46 Cassavetes, John 114 Administration (CARA) Crash (1996) 143 Cassel, Vincent 141 70–1 Crash (2004) 145 Castle Rock Entertainment Clerks 122, 136 Craven, Wes 116 16–17, 40 Clooney, George 27 Creative Artists Agency 35, Catmill, Edwin C. 48 Close, Glen 29, 70, 136 46, 62 Catteneo, Peter 139 Closer 137 Creative Strategies 85

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Creature Shop 29 De Niro, Robert 35, 63, 120, distribution cont. Cronenberg, David 143 147 foreign-language film Crouching Tiger, Hidden del Toro, Guillermo 143 market 132–3 Dragon 134–5, 143 Deneuve, Catherine 134 independent film market Crowe, Cameron 50 Depardieu, Gérard 134 114–15, 122–33 Crowe, Russell 63 The Departed 44 international 9–12, 78, 100 Cruise, Tom 35, 37 Depp, Johnny 47 internet-driven marketing Crumb 122 Despicable Me 32, 64 81–7, 131, 147 The Crying Game 79, 117 Deutchman, Ira 116 marketing tools 72–8, CSA: Confederate States of DeVany, Arthur S. 36 85–7, 127, 150 America 130 development hell 35–6 revenue stream 40, 66–7 Cuarón, Alfonso 42, 130 The Devil Wears Prada 61 speciality market 133–48 Cuban, Mark 6, 39, 118–19, DeWolfe, Chris 20 virtual print fees 4–5, 96–7 127–9 Diary of a Mad Black Woman see video-on-demand Culkin, Macaulay 29 145 (VOD) Culpepper, Clint 53 DiCaprio, Leonard 58 District B13 129 The Curious Case of Benjamin digital cinema 121 Diva 120 Button 57 conversion 4–5, 94–7, The Diving Bell and the Curse of the Blair Witch 82 99–100, 149 Butterfly 137 The Curse of the Mogul: projectors 99 Dixon, Christopher 16 What’s Wrong With the theatre advertising 93 DLP projectors 99 World’s Leading virtual print fees 4–5, Dogma 145 Companies 23 96–7 Dolby Laboratories 99 CyberWorld 98 Digital Cinema Dolgen, Jonathan 54–5 Cyrano de Bergerac 134 Implementation Partners Donaldson, Roger 129 96, 99 dot.com bubble 1, 2, 11, 18, Dahan, Olivier 143 Digital Light Processing 19, 20, 33 Daldry, Stephen 34, 137 (DLP) 96, 99 dot.coms 123–4 Dallas Grand Theatre 91 digital video-on-demand Down and Out in Beverly Daly, Bob 41 (DVOD) 5, 112 Hills 45 Daly, David 68 Diller, Barry 15, 19, 142 Downey Jr, Robert 28 Damon, Matt 63 Dimension Films 118, 136, Dr Seuss 31, 63 Dangerous Minds 46 138 DreamWorks 48 Daniels, Lee 145 Dinnerstein, David 57, 141 DreamWorks Animation 31, Dark Horizons 83 Dino De Laurentiis 32, 55–6, 57,64 The Dark Knight 28, 44 Entertainment 144 DreamWorksSKG 30–1, 46, The Dark Knight Rises 44 Directors Guild 126 48, 55, 63 The Da Vinci Code 34, 53, Direct TV 111 Dunst, Kirsten 51 78 Dish Network 105 Duvall, Robert 120 Davis, Marvin 12 Disney Channels 16, 48 DVD sales day-and-date release strategy Disney Classics 81 Blockbuster window 105 128 Disney Stores 80–1 impact on home theatres Day-Lewis, Daniel 117 Disney, Walt 79 94–5 Dayton, Jonathan 140 Disneyland 78 impact on Hollywood The Daytrippers 123 distribution 66 majors 2, 5, 21, 23–4, DC Comics 11, 26–8, 44 accounting 66–7 33, 37, 40, 65, 101–3, DC Entertainment 28 cycle 102–4, 109–13 109–13, 150

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DVD sales cont. exhibition cont. Festival Theatres 90 impact on indies 148 concession sales 93 A Few Good Men 40 impact on mini-majors 145 foreign 9 film rental terms 4, 88–9 Netflix window 5, 106–8 Hollywood re-entry 90 film festivals 114, 119–24 premium VOD window 111 IMAX 97–100 Film Forum 118 Redbox window 5, 108–9 major chains 4, 88 Film Threat 83 royalty payments 103 mall theatres 4, 90, 92 Filmyard Holdings 138 megaplex boom 90–3 Financial Interest and E! 23 Paramount decrees 67, 87, Syndication Rules Eastwood, Clint 44 90 (fin-syn) 15–16 Eat, Drink, Man, Woman 143 rental terms 4, 88–9 financing 3 eBay 39 theatre advertising 93–4 co-producing partners 3, Ebert, Robert 99 theatrical window 5, 9, 33, 38–40, 65, 144 Echo Boomers 70 88–9, 130–1 hedge funds 39–40, 144, Echoes of the Sun 98 Wall Street investment 147 EchoStar Communications 90–3 housekeeping deals 34 19 see box-office receipts, indie 113 Edward II 116 digital cinema, National mini-majors 144 Edwards Theatres 91 Association of Theatre presales 115, 147 Eichinger, Bernd 146 Owners, 3–D runaway production 37–8 Eisner, Michael 16, 45, 47, The Expendables 145 subsidies 37, 38 137 Expo ’90 97 slates 39–40, 45 El Norte 139 Eyre, Richard 116 tax credits 42, 147 El Mariachi 122 tax shelters 38 Elfman, Danny 51 Facebook 4, 20–1, 70, 74, see Wall Street Elliott Management 147, 85, 86, 87, 149 Fincher, David 53, 57 148 Fahrenheit 9/11 137, 145 Finding Nemo 30 Emanuel, Ariel 35 family films 28–33, 45, 49, Fine Line Features 116, 122, Emanuel, Rahm 35 58, 149 143 Emmerich, Toby 144 see animation Finkelstein, Sidney 107–8 Encore 104 Famous Players Theatres 15, first-dollar gross deals 36, Endeavor Talent Agency 141 90 66, 147 The English Patient 114, 135 fan websites 4, 81–5, 150 First Sale Doctrine 5 Enron: The Smartest Guys in Fantastic Four franchise 26 First Sunday 53 the Room 128 Farewell My Concubine 117 Fithian, John 96, 131 Epix 107 Fargo 62 Fitzgerald, Jon 123 Epstein, Edward Jay 47 Faris, Valerie 140 Flashdance 50 Erin Brockovich 63 Farrell, Colin 61 The Flintstones 29 ESPN 16 Fast Five 26 Flixster 112 ET: Close Encounters of a Fatal Attraction 70 Focus Features 57, 64, 78, Third Kind 34 Favreau, Jon 28 114, 124, 133, 142–3 Europa, Europa 134 Federal Communications see Schamus, James Ewing, Heidi 129 Commission (FCC) 7, Fogelson, Adam 64 exhibition 12, 15, 111 foreign markets see art houses 116, 118–19 Fedex 39 international markets bankruptcies 4, 91–3, 96, Fellman, Daniel 69 format wars 8–9, 53, 103 119 Feltheimer, Jon 145 Forster, Marc 123, 145

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Forsyth, Bill 116 Gilmore, Geoffrey 120, 121 Haggis, Paul 145 Four Christmases 123 Gilula, Stephen 118 Hancock, John Lee 39 4 Star computer program 69 Giustra, Frank 144–5 Haneke, Michael 135 Four Weddings and a Funeral Gladiator 55 Hanks, Tom 30, 35, 53 62, 122, 123 globalisation 10 Hannah, Daryl 45 1408 138 The Godfather 25, 68 Happy Days 63 Fourtou, Jean-Rene 19 Gods and Monsters 145 Hardwicke, Catherine 146 Fox Animation Studios 62, 64 Gold Circle Films 130 Harmonix 21 Fox Broadcasting 12, 17 Golden Globes 76, 126 Harron, Mary 145 Fox Family Films 58 Golden Harvest Studios 29 Harry Potter and the Deathly Fox Filmed Entertainment Goldman Sachs 138 Hallows 41 57 Goldwyn Jr, Samuel 116 Harry Potter and the Deathly Fox Interactive Media 20 Golf Channel 23 Hallows, Part 2 26, 33, Fox Searchlight Pictures 57, Gommorrah 130 42 58, 78, 114, 122–3, 133, Good Bye Lenin! 135 Harry Potter and the Half 139–41 Good Machine 142–3 Blood Prince 100 Fox 2000 51, 58, 60–1 Good Night, and Good Luck Harry Potter and the franchise strategy 3, 25–8, 143 Philosopher’s Stone 41, 41–3, 50–1 Good Will Hunting 135 42, 51, 71 78 Frankel, David 61 Google 70, 74, 86, 108, 149 Harry Potter franchise 25, Frears, Stephen 62, 116 Gordan, Seth 123 41–2, 44, 49, 65 Freeman, Morgan 63 Gordon, Josh 57 Harry Potter merchandising Freston, Tom 22 Gore, Al 141 80 Friedman, Robert G. 72, Grady, Rachel 129 Harry Potter trailers 75 74–5, 146 Gramercy Films 122, 142 Harry Potter website wars 84 Fritz, Ben 86 Grand Torino 44 Hasbro toys 57, 64 Frost/Nixon 63 Grant, Hugh 62 Hastings, Reed 106–8 The Full Monty 139–40 Graser, Marc 2 Hatkoff, Craig 120 Funny People 64 Grauman’s Chinese Theatre Havas 19 77 Hayes, Dade 89 Gabler, Elizabeth 60–1 Grazer, Brian 34, 63 HBO Films 143 Gambon, Michael 41 Green Lantern 26 HD-DVD format 103 Garavani, Valentino 128 The Green Lantern 44 HDNet 127, 128 Garrone, Matteo 130 Greenwald, Bruce C. 23 HDNet Movies 127, 128 Gateway Corporation 130 Greenwald, Stephen R. 103 hedge funds 39–40, 144, 147 Geffen, David 31, 46, 48, Gregory’s Girl 116 Hellraiser 3: Hell on Earth 55–6 Grey, Brad 55–7, 65 118 General Cinema 91 Grint, Rupert 41 Hemdale 115 General Electric (GE) 2, 18, Group W 17 Henry V 116 19, 22, 63, 143 Guber, Peter 13, 14, 49–50 Henson, Jim 29 Generation Y 70 Guber-Peters Entertainment Hess, Jared 123 G4 23 Co. 49 Heyday Films 41 GI Joe: The Rise of the Cobra guerilla marketing 127 Heyman, David 41 57 Gulf + Western 15, 90 Hicks, Scott 143 Gianopulos, Jim 57–8, 61 Hill, Tim 61 Gibney, Alex 128 Haber, Bill 35 Hitchcock, Alfred 117 Gill, Mark 125, 143, 144 Håfström, Mikail 138 The Hobbit 44

I N D E x 1 6 9

Hogan, P. J. 50 The Hunger Games 146–7, independent production Holland, Agnieszka 134 148, 151 16–17, 34, 38–9, 40, 114 Hollywood Foreign Press The Hurt Locker 146 independent theatres 100 Association 76, 126 Indochine 134 Hollywood Pictures 45 Ice Age 31 Industrial Light & Magic 32, Home Alone 29, 41 Ice Age: Dawn of the 80 Home Alone 2: Lost in New Dinosaurs 32, 62 Inglourious Basterds 138 York 29 Ice Age: The Meltdown 31 The Insider 46 Home Box Office (HBO) 5, Ice Cube 53 Insomnia 39 7, 9, 11, 44, 50, 104, 107, The Ice Storm 143 International Creative 143 Idei, Nobuyuki 50, 53 Management 35 Home Shopping Networks IFC Center 118 International Federation of 19 IFC Films 6, 111, 129–31 Film Producers home theatres 94–5, 100, IFC in Theatres 130 Association 119 149 IFC Midnight 130 international markets 6, 9–11 home video iFilm.com 123 internet format wars 8–9, 53, 103 Iger, Robert A. 47–9, 64, 81, impact on distribution 3, growth 7–10, 102–3 138 67, 131 impact on exhibition 90, Illumination Entertainment impact on mergers 2, 112 32, 33, 64 17–22 impact on indies 115, 148 Image Movers Digital 33, platforms 21, 22, 112–13, impact on network TV 15 49 131 window 66, 101, 102–3 Imagination Park 81 see dot.com bubble, see DVD sales Imagine Entertainment 34, Netflix, marketing Hood, Gavin 60 63 Into the Wild 141 Hook 50 IMAX 32, 97–100 iPads 22 Hoop Dreams 122 IMAX Solido 97–8 Iron Man 28, 55 Hooper, Tom 138–9 IMAX 3–D SR 98 Iron Man franchise 26 Hop 33, 64 Immortals 147–8 Iron Man 2 55 Horn, Alan F. 40–1, 44, 49, In the Line of Fire 40 Irreversible 145 144 Iñárritu, Alejandro González Island Alive 115 Horn, John 129, 140 141 iTunes 22, 112, 131 Horton Hears a Who! 31 An Inconvenient Truth 141 The Host 129 The Incredible Hulk 60, 64 Jackman, Hugh 60 Houghton Mifflin 19 Independent Film and Jackson, Peter 38, 42, 85 The Hours 34, 137 Television Alliance 124 Jacobson, Nina 48 house nut 88 Independent Film Channel Jaffe, Stanley 54 housekeeping deals 33, 34 129 James Bond 25, 123 How the Grinch Stole independent market James, Steve 122 Christmas 63 growth 5–6, 115–18 Jarecki, Andrew 128 How to Train Your Dragon exhibition 118–19 Jarman, Derek 116 32, 100 film festivals 119–24 Jarmusch, Jim 116, 122 Howard, Ron 34, 53, 63 mini-majors 144–8 Jaws 25, 68 Howards End 134 release strategies 125–31 Jean de Florette 134 Hudson, Hugh 120 speciality divisions 5, Jerry Maguire 50 Huizenga, Wayne 105 133–44 Jesus Camp 129 Hulu 22, 131 trade fairs 124–6 Jobs, Steve 30, 48, 81

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John Carter 49 Land of the Lost 64 The Lord of the Rings Johnson, Broderick 39 Landmark Theatres 6, 116, franchise 25, 41, 42–3, Johnson, Mark 37 118–19, 128, 129 65, 73, 137, 143 Johnson, Rian 123 Landry, Paula 103 see New Line Cinema Jones, Kirk 63 Lansing, Sherry 54, 55, 56 The Lord of the Rings: Return Jordan, Neil 117 Lasseter, John 48 of the King 43, 73 Jovovich, Milla 53 The Last Emperor 54 The Lord of the Rings JP Morgan Chase 96, 99 Latin America 10 subsidies 38 Juno 140 Law, Lindsay 139 The Lord of the Rings trailers Jurassic Park 34 Lawver, Heather 84 75 Jurassic Park III 63 Leavesden Studios 41–2 The Lord of the Rings: The Justice Department 90 Lee, Ang 134–5, 143 Two Towers 43 Lee, Stan 28 The Lord of the Rings website Karloff, Boris 62 Legendary Pictures 27–8, 43 84–5 Kasdan, Lawrence 120 Leigh, Mike 116 Los Angeles Film Critics Kate and Leopold 137 Lesher, John 141 Association 53, 126 Katzenberg, Jeffrey 30–1, Lester, Richard 27 Lost in Translation 143 45, 46, 55–6 Levin, Gerald M. 16, 18, 20 low-budget ﬁlms 26, 52 Kavanaugh, Ryan 6, 40, 145, Liar, Liar 63 Lowe, Mitch 108 147–8 Liberty Media 104, 107, 147 Lowe’s Motor Speedway 78 Keaton, Michael 27, 41 Life Is Beautiful 79, 120, 136 Lucas, George 58, 59–60, Kerkorian, Kirk 16, 53 Lightstorm Entertainment 58 80, 94 Kidron, Beeban 63 Like Water for Chocolate 117, Lucasﬁlm 32, 77, 81–2, 84 Kids 136 135 Ludlum, Robert 63 The Kids Are All Right 143 Liman, Doug 63 Lynne, Michael 42, 44, 144 Kilmer, Val 27 limited release 125 Lynton, Michael 53 Kindergarten Cop 63 Limitless 147 The King’s Speech 138–9 Lincoln Plaza Cinemas 118 Macdonald, Kevin 63 Kinnear, Greg 140 Linde, David 64, 143 Mad Men 145 Kinney National Services 11 Linklater, Richard 137 Madden, John 135 Kishore Kamal 17 The Lion King 30, 31, 49, 81 Madea Goes to Jail 145 Kloves, Steve 42 Lions Gate Entertainment 6, Madea’s Family Reunion 145 Kluge, John 117 144–5 Madison Square Garden 15 Knee, Jonathan A. 23 Lionsgate Films 124, 137, Madonna 136 Knightley, Keira 47 145, 146, 148, 151 Magnolia Pictures 111, 128, Knocked Up 64 The Little Mermaid 29–30 129 Knowing 146 Little Miss Sunshine 123, 140 Maguire, Tobey 51, 52, 63 Knowles, Harry 83 The Lives of Others 134 Malick, Terence 141 Kosove, Andrew A. 39 Loach, Ken 131 mall theatres 4, 90, 92 Krueger, Freddy 116 Loews Cineplex 91, 92, 93 Malle, Louis 134 Kuhn, Shane 123 Loews Santa Monica Hotel Malone, John 107, 147 Kung Fu Panda 78 124 Malpaso Productions 44 Kureishi, Hanif 116 London Kills Me 116 Mamma Mia! 64 Kurosawa, Akira 60, 134 Looking for Eric 131 Mangold, James 61 The Lord of the Rings: The Mann, Michael 46 Laemmle Theatres 118 Fellowship of the Ring 41, Mann Theatres 90 Lakeshore Entertainment 38 43, 73 Manon of the Springs 134

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March of the Penguins 143 mergers cont. Miramax Films cont. Maria Full of Grace 143 foreign takeovers 12–14 heyday 115, 117–18, 148 MarketCast 69 network television factor Oscar strategy 79, 126–7 marketing 14–17 Disney unit 45, 135–9 budget 73–4 cable television factor Mirvish, Dan 123 The Full Monty 139–40 14–17, 22–3 Misery 40 goals 4, 69 distribution control 10 Money 11 internet-driven 4, 81–7 downsizing 21–2, 24 Monsoon Wedding 130 Miramax 136 globalisation factor 10 Monster’s Ball 145 research 67, 69–70 internet factor 1–2, Monsters, Inc. 30, 56 Slumdog Millionaire 140 17–21 Monsters vs Aliens 32, 62 tools 73–5 see dot.com bubble, Moore, Demi 35 techniques 13, 57 synergy Moore, Rob 33 Marley & Me 38 Merkel, Angela 38 Moore, Michael 120, 122, Mars Needs Moms 32–3, 49 Merrill Lynch 28 137, 138, 145 Marshall, Frank 45 Messier, Jean-Marie 1, Morel, Pierre 129 Marston, Joshua, 143 18–19, 20, 142, 143 Morris, Errol 122 Martin, Steve 63 Metro-Goldwyn-Mayer Morrison, Vanessa 62 Marvel Comics 26, 28 (MGM) 13, 16, 22–3, Mortal Kombat 25 Marvel Entertainment 48 50, 53, 117 Motion Picture Association Marvel Studios 28, 55, 58, Metromedia International of America (MPAA) 10, 60 Group 116 70, 76, 117, 124 Marvin’s Room 34 Metromedia Television 12 motion-capture technology Mary Poppins 29 Metropolitan Opera 96 32, 33, 49 Maslin, Janet 30 Meyer, Barry M. 40–1 Mottola, Greg 123 Matrix franchise 44 Meyer, Ron 35, 46, 62, 64 The Movie Channel 11, 104 The Matrix Revolution 73 Meyer, Stephanie 146 Movie Pass 110 Matsushita 7–9, 12–14, 46 MGM ﬁlm library 16 movie ratings 70–1 MCA 12, 13–14, 90 MGM/UA Entertainment Movielink 105 McCarthy, Todd 51, 121 16 MP3.com 19 McDonald’s 108, 109 Michell, Roger 62 MPX digital technology 99 McKellen, Ian 60 Microsoft 18, 86, 95, 112 Mr and Mrs Smith 38 Mechanic, Bill 26, 58 mid-level ﬁlms 3, 26, 33, 39, MTV 15, 17 Medavoy, Mike 50 61–2, 133, 148, 149 The Mummy 62 Medea 115 Midnight in Paris 135 The Mummy Returns 63 Meet the Parents 63 The Mighty Ducks 29 Munich 63 megaplexes 100, 149 Milchan, Arnon 38, 146 The Muppets 49 Meledandri, Chris 32, 58, Milk 143 Murdoch, Rupert 12, 20–1 62, 64 millennials 70 Music Box Films 132 Men in Black 50 Miller, Frank 27 Muvico Theaters 91 Mendes, Sam 55, 120 Million Dollar Baby 44 My Beautiful Laundrette 62 merchandising 59, 79–81 Minghella, Anthony 114, My Best Friend’s Wedding 50 Merchant-Ivory 134 135 My Big Fat Greek Wedding mergers mini-majors 6, 144–8, 151 126–7, 130 assessment 23 Miramax Films 5, 114, 122, My Left Foot 117 early conglomerates 10–11, 141 My Own Private Idaho 116 13, 15, 54 closure 49 Myrick, Daniel 82, 122

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MySpace.com 20–1 Newell, Mike 42, 62, 122 Pan’s Labyrinth 126, 143 Mystic River 44 News Corp. 12, 19, 20–1 Panasonic 12 Nichols, Mike 137 Paramount Classics 56–7, Naked 116 Nicholson, Jack 41 141 Nancy McPhee 63 Nickelodeon 15, 17 Paramount Communications Napoleon Dynamite 123 Nielsen National Research 15, 54 Napster 19 Group (NRG) 69, 70 Paramount decrees 67, 87, 90 NASCAR 78, 93 Night on Earth 116 Paramount Motion Picture National CineMedia 93 Night Shift 63 Group 54 National Amusements 15, A Nightmare on Elm Street Paramount Pictures 22, 88, 92–3 116 acquired by Gulf + National Association of 90/10 deals 88–9 Western 15 Theater Owners (NATO) Nintendo 95 acquired by Viacom 54 5, 96, 102, 111, 131, 150 No Country for Old Men 79, DreamWorksSKG National Society of Film 126, 137, 141–2 acquisition 48, 55–6 Critics 126 Noë, Gaspar 145 franchise strategy 28, NBC 12 Nolan, Christopher 27, 28, 54–5, 58–9 NBC Universal 19–20, 64 44, 45, 123 Marvel Studio pact 55 see Universal Pictures Notting Hill 62 reporting segments 8 NEC 96 Nuart Theatre 118, 128 Rudin pact 34 Neruda, Pablo 136 Nurse Jackie 145 restructuring 55–7 net producer’s share 66 The Nutty Professor 63 speciality divisions 56–7, net profit deals 36 137, 141–2 Netflix O 145 studio profile 7, 54–7 business model 22, 106–8, O Brother Where Art Thou? 3–D films 33, 58, 59 131, 150 46 virtual print fees 96 impact on DVD sales 2, 5 Obama administration 35 Paramount Television 15 impact on exhibition 149 Oboler, Arch 97 Paramount Vantage 56–7, impact on on-demand 110 Ocean’s … franchise 44 137, 141–2 impact on video stores October Films 142 Paranormal Activity 57 103, 105 101 Dalmatians 29 Parenthood 63 network television 14–17, Online Testing Exchange 69 Parker, Alan 34 101, 104 opening day template 69 Paronnaud, Vincent 135 see ABC, CBS, NBC Orion Classics 134 Parsons, Richard 42 New Line Cinema 5, 124 Orion Pictures 117, 134, Participant Media 146 folded into Warner Bros. 144 Pascal, Amy 50, 53 44, 143–4 Oscars see Academy Awards Pasolini, Pier Paolo 115 growth 16–17, 29, 115–16, output deals 104 Pattinson, Robert 146 148 Overture Films 147 pay TV see LOR franchise Ovitz, Michael 35, 45–6 growth 7–9, 10 New Regency Productions impact on exhibition 90 38–9 Pacific Rim 10 impact on indies 115 New World 115 Paddison, Gordon 43, 84–5, output deals 107 New York Film Critics Circle 86–7 presales 115, 148 53, 126 Page, Ellen 140 revenue source 104 New York Knicks 15 Palace Theatre 91 subscription rights 107 New Zealand 37, 42–3 Paltrow, Gwyneth 28 window 101, 107

I N D E x 1 7 3

pay TV cont. Polanski, Roman 143 Pulp Fiction 5, 122, 123, see Home Box Office, The Polar Express: An IMAX 135, 148 Showtime 3D Experience 98 Push 146 pay-per-view (PPV) 5, 101, Polaroid glasses 97 Puttman, David 139 109–10, 150 Pollack, Andrew 12 Payne, Alexander 140 Pollock, Dale 60 Quantum of Solace 123 Pearl Harbor 77–8 Pollock, Sidney 35 Quasar 12 Peli, Oren 57 PolyGram Film The Queen 137 Penn, Sean 141 Entertainment 62 Quest Communications 39 People 11 PolyGram Records 19, 62 Perelmutter, Ike 28 Portman, Natalie 141 Racing Stripes 39 The Perfect Storm 44 Il Postino 135–6 Radcliffe, Daniel 41 Perkins, Rowland 35 Precious 145 Radford, Michael 135–6 Perry, Tyler 145 premieres 52, 77–8 Raimi, Sam 51, 52 Persopolis 135 premium video-on-demand Rain Man 50 Peters, Jon 13, 49–50 (PVOD) 5, 111, 112, Ran 134 Petersen, Wolfgang 44, 50 148, 150 Rappeneu, Jean-Paul 134 Phoenix, Joaquin 61 prequels 26 Ratatouille 30 Phone Booth 61 presales 115, 148 Ratner, Bret 60 Pi 122 press junkets 76 Rave Motion Pictures 92–3 The Pianist 143 price tiering 101 RCA 104 Picturehouse Entertainment Prick Up Your Ears 116 Reagan administration 90 44, 143–4 Pride and Prejudice 63 RealD 99 Pierce, Kimberly 140 Priest 136 rebates 37 Pierson, John 82 Prince of Tides 50 recession 21, 25, 37, 133, Pink Flamingos 115 Prince-Bythewood, Gina 123 145, 149 piracy 73, 89, 151 prints and advertising (P&A) Red 146 Pirates of the Caribbean: The 66 Redbox Curse of the Black Pearl private investors 3, 33, business model 95, 108–9 47 38–40, 65, 144 impact on DVD sales 2, 5 Pirates of the Caribbean: Dead product placement 79 impact on exhibition 149 Man’s Chest 47 production impact on on-demand 110 Pirates of the Caribbean development hell 35–6 impact on video stores 103, franchise 25, 34, 47, 78 inhouse 33 105 Pirates of the Caribbean: On housekeeping deals 34 Redford, Robert 118, 121 Stranger Tides 33, 47, 49, rosters 25–6 Redstone, Shari 88, 92 78 star salaries 36–7 Redstone, Sumner 15, 21–2, Pirates of the Caribbean: At talent agents 34–5 37, 54, 88, 92, 105 World End 47, 72, 73, 78 see family films, financing, ReelPlay.com 123 Pitt, Brad 141 franchises, 3–D Reeves, Christopher 27 Pixar 25, 30, 31, 47–8, 56, Production Code 70 Regal Cinemas 91, 92, 93, 64 profit participants 66 96, 99 Pixar Animation Studios 48 PS I Love You 39 Regal Entertainment Group platform release 125, 126 Psycho 117 88 The Player 116 Public Enemies 64 Reitman, Jason 57, 140 PlayStation 53, 95, 112 Pula, Chris 83 Relativity Media 6, 40, 144, The Ploughman’s Lunch 116 Pulcini, Robert 143 145, 148

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release seasons 25, 68, 72–3 Samuel Goldwyn Co. 5, 115, Shadyac, Tom 63 rental terms 88–9 116–17, 139 Shakespeare in Love 79, 135 Reservoir Dogs 122 Sanchez, Eduardo 82, 122 Shanghai International Film Resident Evil 53 The Santa Claus 29 Festival 119 Revolution Studios 51 SATCOM I 7, 104 Shaye, Robert 42, 44, 115, Rio 62 Satrapi, Marjane 135 144 Rizvi Traverse Management saturation booking 4, 67, 68, Sheinberg, Sidney 13, 14, 46 146 71–2 Sheridan, Jim 117 RKO ﬁlm library 16 Saving Private Ryan 55, 79, Sherman, Emile 138 Roach, Jay 63 136 Shine 143 Roadside Attractions 132 Saw franchise 145 The Shipping News 137 Roberts, Brian L. 22 Scary Movie 4 138 Shmuger, Marc 64 Roberts, Julia 62, 63, 136 Schamus, James 5, 115, ShoEast 76 Robinov, Jeff 44–5, 65 125–6, 143 Short Cuts 116 Robots 31 Schloss, John 123 Showcase Cinemas 92 The Rock 46 The School of Rock 137 ShoWest 76 Rocky 25 Schulhof, Michael P. 50 Showtime 5, 7, 15, 104, 107 Rodriguez, Robert 122 Schumacher, Joel 27, 61 Shrek 25, 31, 55–6 Roger & Me 120, 122 Schwarzenegger, Arnold 63 Shrek Forever After 32, 100 Rogue Pictures 147 Sci-Fi Channel 82 Shrek the Third 57, 72–3 Roku 107 Scorsese, Martin 35, 44 Sicko 138 Roman Polanski: Wanted and Scott, A. O. 32, 59–60, Sid and Nancy 116 Desired 123 121–2, 132, 133 Sideways 140 Rosenfeld, Jonas 124–5 Scott, Ridley 55 Silver Screen Partners 45 Rosenfeld, Mike 35 Screamdance Film Festival Simon & Schuster 15 Rosenthal, Jane 120 57 simulcasts 96 Ross, Gary 63 Screen Actors Guild 126 Singer, Bryan 27, 60 Ross, Rich 48–9, 65 Screen Engine 69 Singh, Tarsem 147 Ross, Steven J. 11, 16 Screen Gems 52–3 The Sisterhood of the Traveling Roth, Joe 46, 51 Screenvision Cinema Pants 39 Rothman, Tom 57–8, 61, 139 Network 93–4 16 Blocks 39 Rourke, Mickey 148 Seabiscuit 63 The Sixth Sense 46 Routh, Brandon 27 Seagram 14, 62 Skarmeta, Antonio 136 Rowling, J. K. 41, 42, 80 Sears, Roebuck 79 Skoll, Jeff 39, 146 Royal Phillips Electronics 19, Seave, Ava 23 Sky Channel 12 62 The Secret in Their Eyes 134 Sky Television 10 Rudin, Scott 34, 126, 137 The Secret Life of Bees 123 Sladanha, Carlos 62 Run Lola Run 135 See-Saw Films 138 Slamdance Film Festival 57, runaway production 37–8, 44 Sehring, Jonathan 130 123 Ruthless People 45 Seinfeld 40 slates 39–40 Ruzowitsky, Stefan 134 Selik, Henry 143 Slumdog Millionaire 125, Rysher Entertainment 127–8 Semel, Terry 41 140–1, 148 September 11 attacks 46 Smith, Fred 39 Safe 139 sequels 26 Smith, Kevin 122, 145 Salkind, Alexandre 27 Sex and the City 2 44 Smith, Maggie 41 Salkind, Ilya 27 sex, lies, and videotape 117, Snider, Stacy 48, 56, 57, 62, Salles, Walter 135 122 63–4

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Snipes, Wesley 136 Specific Media 21 Stillman, Whit 116 Snyder, Zack 27, 44 Speck, Will 57 Stomp the Yard 53 The Social Network 53 Spider-Man 25, 28, 60, 71 Stradella Road 86, 87 social networks 4, 65, 85–7, Spider-Man franchise 26, Stranger Than Paradise 122 150 51–2, 61 The Strangers 143 Soderbergh, Steven 44, 63, Spider-Man 3 52, 72, 78 Streep, Meryl 61 117, 122, 123, 128, 130 Spider-Man 2 51–2 The Streetfighter 115 Solondz, Todd 122 Spielberg, Steven 63, 68, 136 Stringer, Howard 50, 52, Sommers, Stephen 57, 62 Amblin Entertainment 29, 53–4 Sonnenfeld, Barry 50 34, 45 studio system 67 Sony Disney alliance 48 Sturridge, Charles 116 Betamax 7–9 DreamWorks Animation Style Network 23 Blue-ray 2, 54, 103, 113, founding 31, 32, 56, subscription video-on- 150 57,64 demand (SVOD) 106 invades Hollywood 12–14, DreamWorksSKG founding subsidies 37, 38 46, 49–50, 53–4 30–1, 46, 55 Summit Entertainment 6, PlayStation 53, 95, 112 Paramount alliance 55–7 124, 144, 146, 148, 151 Sony Corp. 50, 52, 53, 54 Splash 45, 63 Sundance Film Festival 5, 6, Sony Corp. of America 50 Split Screen 82 82, 119, 120–4, 131, 140, Sony Pictures Classics 52, Sports Illustrated 11 148 78, 114, 120, 132, 133, Spurlock, Morgan 122 Sundance Channel 129 134–5 Spyglass Entertainment 57 Sundance Group 118 Sony Pictures Entertainment Stakeout 45 Sundance Institute 121, 129 Columbia Pictures Stallone, Sylvester 145 Sundance Now 131 Entertainment (CPE) A Star Is Born 50 Sundance Selects 130 12–13, 49–50, 90, 139 star salaries 36–7 Super Size Me 122 Columbia TriStar Motion Star Trek 25 Superbad 123 Pictures Group 50 Star Wars 25, 42, 77 Superman franchise 26–7, franchise strategy 26, Star Wars: Episode I: The 60 51–2, 61 Phantom Menace 59, 84, Superman Returns 27 initial performance 13–14, 85, 94 Superman III 27 49–50 Star Wars: Episode III: The Superman II 27 MGM stake 22–3, 53 Revenge of the Sith 59–60 Supreme Court 8–9, 102 premium VOD 111 Star Wars: Episode II: Attack Swank, Hillary 140 restructuring 53–4 of the Clones 59 SyFy network 23 slate deals 40 Star Wars franchise 57, 58, synergy 10, 12–13, 14, 17, studio profile 7, 8, 49–54 59–60 18, 19, 54 3–D films 32 Star Wars merchandising 80 virtual print fees 96–7 Star Wars website 81–2 talent agents 34–5, 44, 46, see Sony Pictures Classics Starz Network 104, 107 55, 141 The Sopranos 55 State of Play 63 Talk magazine 137 Sorkin, Andrew Ross 22 Steel, Dawn 139 Tarantino, Quentin 122, 135, South by Southwest Film Steig, William 31 138 Festival 119, 120, 131 Stephenson Jr, Thomas J. 92 tax credits 38, 42 Space Cowboys 44 Stewart, Kristen 146 Technics 12 speciality market 5–6, Stewart, Patrick 60 Teenage Mutant Ninja Turtles 114–15, 133–50 Stiller, Ben 63 29, 116

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television advertising 3–4, Toronto International Film 20th Century-Fox cont. 150 Festival 78, 119–20, 140 studio profile 7, 8, 57–62 Telluride Film Festival 140 Toshiba 103 3–D films 32 tentpoles 3, 26, 149 Touchstone Pictures 45, 48, virtual print fees 96 Terminator 2 50 49 see Fox Searchlight Texas Instruments 96, 99 Toy Biz 28 2929 Entertainment 6, 118, theatre advertising 93–4 Toy Story 30, 32, 56 124, 127–8 theatrical window 5, 9, 88–9, Toy Story 3 30, 100 Twilight 146 130–1 Toy Story 2 30 Twilight Saga: Breaking Dawn theme parks 46, 47, 62, 64, trade fairs 124 Part 2 146 78 trailers 75 Twilight Saga franchise 146, There Will Be Blood 79, 137, Training Day 44 151 141–2 Trans-Lux Festival Theatres Twitter 4, 70, 85, 87 The Thin Blue Line 139 90 two-tier pricing 9 This Christmas 53 Transformers 25, 57, 79 Twyker, Tom 135 Thompson, Anne 37, 61 119, Transformers: Dark of the Tyrnauer, Matt 128 126–7, 128 Moon 26, 33, 78 Thompson, Emma 134 Transformers: Revenge of the Ulin, Jeffrey C. 74, 82 Thor 55 Fallen 57 UltraViolet 112, 150 3–D The Tree of Life 141 Underworld 53 Cameron’s Titanic and Tribeca Film Festival 6, 119, unit publicist 75–6 Avatar 58, 59 120, 131 United Artists 134 growth 3, 4, 32–3, 62 Trimark Holdings 145 United Artists Theatres 91 Harry Potter 42 TriStar Pictures 13, 50, 62, United Talent Agency 35 IMAX technology 97–100 90 Universal Focus 142 RealD technology 99 Troisi, Massimo 136 Universal Music Group 19 Three Men and a Baby 45 Troma 115 Universal Pictures 300 27–8, 44 Trueba, Fernando 134 acquired by Comcast tie-ins 79 Truly Indie 128 19–20, 22–3 Time 11 The Truman Show 34 acquired by Matsushita 12, Time Inc. 7, 42, 104 Tsotsi 137 13–14 Time Warner 10, 15, 148 Tsujihara, Kevin 112 acquired by MCA 12 case study 11–12 Tull, Thomas 27, 39 acquired by Vivendi 1–2, AOL merger 1–2, 17–18, Turner Broadcasting System 18–19, 142 22 (TBS) 16–17, 143 Amblin Entertainment DC Comics franchises Turner Pictures 50 pacts 29, 34, 45 26–8 Turner, Ted 16, 18, 143 Betamax case 8–9 downsizes 3, 21, 44 20th Century-Fox family films 29, 64 TBS merger 16–17 acquired by News Corp. 12 Illumination Entertainment see HBO, Warner Bros. animated features 31 unit 32, 33, 64 Time Warner Cable 18, 21, Fox Animation Studios 62 Imagine Entertainment 110 Fox Family Films 29, 58 pact 34, 63 Titanic 28, 54–5, 58–9, 72 Fox 2000 58, 60–2 NBC Universal 19–20, 64 Tokyo International Film franchise strategy 54–5, premium VOD 111 Festival 119 58–61 slate deals 40 Tolkein, J. R. R. 42, 44, 84–5 New Regency pact 38–9 studio profile 7, 8, 62–4 Tornatore, Giuseppe 117 restructuring 58 3–D films 32, 33

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Universal Pictures cont. video-on-demand cont. Walt Disney Pictures cont. Working Title films unit premium VOD 5, 111, acquires Pixar 30, 47–8, 62–3 112, 148, 150 49 virtual print fees 96 services 105, 106–12, animated features 29–31 see Focus Features 128–31, 150 brands 29, 49,79 Universal Studios 1, 18–19, window 5, 66, 101 Bruckheimer pact 34 23, 46 video-sharing sites 4 DreamWorks pact 48 Universal Studios Theme video stores 9, 101, 103, 105 family films 29 Park 13 La Vie en Rose 143 franchise strategy 47 Unwin, Gareth 138 Village Roadshow 38, 43–4 restructuring 47–9 Up 30, 62 Village Theatre 77 studio profile 7, 8, 19, Up in the Air 57 viral campaigns 82–3 45–9 USA Films 142 Virgin Group 65 3–D films 32–3, 98 USA Network 19, 142 Virgin Records 14 virtual print fee 96 virtual print fees 4–5, 96–7 see Eisner, Michael Vajna, Andrew 146 Vitale, Ruth 57, 141 Walt Disney Studios 48 Valenti, Jack 70 Vivendi Universal Wargnier, Régis 134 Valentino: The Last Emperor Entertainment 1–2, Warner Amex Cable 11 128 18–19, 142 Warner Books 11 Van Sant, Gus 116, 135, 143 Vizzavi 19 Warner Bros. Vaughn, Matthew 60 Vodaphone 19 acquired by Kinney VCRs 10, 102–3 Vogel, Harold 11 National 11 Venice International Film Volver 135 film library 16 Festival 119 von Trier, Lars 131 4 Star computer program VERSUS 23 von Donnersmarck, Florian 69 Vestron 115 Henckel 134 franchise strategy 25, 26–8, VH1 15, 17 Vudu 112 41–3, 44–5, 84 VHS 8–9, 102–3 Guber-Peters pact 49–50 Viacom Wachsberger, Patrick 146 producing partners 27–8, acquires Blockbuster 105 Wagner, Todd 6, 39, 118–19, 39, 43–4 acquires CBS 17, 92 127–9 restructuring 44 acquires internet Wal-Mart 108, 112 speciality units 44, 143–4 companies 20–2 Walk the Line 61 studio profile 7, 8, 16, acquires Paramount Wall Street 28, 45, 144, 145, 40–5 Communication 15, 54–5 147 3–D pictures 33, 98 downsizes 3, 21–2, 92, 105 WALL-E 30, virtual print fees 96–7 National Amusements 88, Walt Disney Animation VOD window 110–12 92 Studios 48 see New Line, Time Warner premium channels 5, 7, 15, Walt Disney Company 8–9, Warner Bros. Distributing 104, 107 15–16, 22, 45, 148 Corporation 11 see Paramount Pictures, merchandising 79, 80–1 Warner Bros. Television 11 Redstone, Sumner Walt Disney Pictures Warner Communications video games 94, 95, 112 acquires Marvel (WCI) 9, 11, 90 video-on-demand (VOD) Entertainment 26, 28, Warner Home Entertainment digital VOD 5, 112 48, 49 Group 11, 112, 113, 150 pay-per-view 5, 101, acquires Miramax 45, Warner Independent Pictures 109–10, 150 135–8 44, 125, 140, 143–4

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Warner Music Group 21, 42 Whitmore III, Preston A. Writers Guild 126 Wasserman, Lew 13, 14 53 WTBS 16 Waste Management 105 Who Framed Roger Rabbit? Waters, John 115 45 X-Men 28, 60 Watson, Emma 41 Why Did I Get Married Too? X-Men: First Class 60 websites 4, 81–7 145 X-Men franchise 26, 58, 60 Wedge, Chris 31 Wiatt, Norm 130 X-Men: The Last Stand 60 Weeds 145 The Wicker Man 39 X-Men Origins: Wolverine 60 Weinraub, Bernard 50 Wii 95 X2: X-Men United 60 Weinstein, Bob 117, 135–9 William Morris Agency 35 Xbox 360 95, 112 Weinstein, Harvey 79, 117, William Morris Endeavor Xﬁre 21 135–9 Entertainment 35 Weinstein Company 124, Willis, Bruce 46 Y Tu Mama Tambien 130 138–9 Willmott, Kevin 130 Y2M 21 Weir, Peter 34 Winfrey, Oprah 37 Yahoo 86, 118 Welch Jr, John F. 19 Wings of Desire 134 Yates, David 42 Welcome to the Dollhouse Winslet, Kate 58 YouTube 4, 22, 74, 85, 124, 122 Witherspoon, Reese 61 131, 149 Wells, Frank 45, 46 Woman Under the Inﬂuence Wells, John 138 114 Zaks, Jerry 34 Wenders, Wim 134 Women on the Verge of a Zemeckis, Robert 33, 34, 35, West, Adam 27 Nervous Breakdown 134 49, 98 Western Europe television Wonder Woman 26 Zenovich, Marina 123 9–10 Working Title Films 62–3, Ziegfeld Theatre 77 Westinghouse Electric 17 142 Ziskin, Laura 51, 58, 60–1 When Harry Met Sally ... 40 World Cup 96 Zucker, David 138 Where Angels Fear to Tread The World’s Fastest Indian Zucker, Jeff 64 116 129 Zuckerberg, Mark 20 White, Sylvain 53 Wright, Bob 20 Zwick, Joel 130 The White Ribbon 135 Wright, Joe 63 Zwighoff, Terry 122

List of iLLustrations While considerable effort has been made to correctly identify the copyright holders, this has not been possible in all cases. We apologise for any apparent negligence and any omissions or correc- tions brought to our attention will be remedied in any future editions.

Toy Story, © Walt Disney Pictures; Harry Potter and the Deathly Hallows: Part 2, © Warner Bros. Entertainment Inc.; Spider-Man 2, © Columbia Pictures Industries Inc.; Shrek, © DreamWorks LLC; Avatar, © Twentieth Century-Fox Film Corporation/Dune Entertainment III LLC; X-Men Origins: Wolverine, © Twentieth Century-Fox Film Corporation/Dune Entertainment III LLC; Jaws, © Universal Pictures; Crouching Tiger, Hidden Dragon, © United China Vision Incorporated/© UVC LLC; The King’s Speech, © UK Film Council/© Speaking Film Productions Ltd; Slumdog Millionaire, © Celador Films Ltd/© Channel Four Television Corporation; Brokeback Mountain, © Focus Features LLC; The Hunger Games, © Lions Gate Films Inc.