by SARAH GRABMAN

Universal Studios Inc. (Universal Pictures) is a major motion picture studio under NBCUniversal owned by Comcast that produces and distributes films for theatrical release and produces, acquires, and distributes direct-to-home video titles, classic titles, and consumer products.[1]

Universal Pictures has found a lucrative home in the franchise model which has contributed to some of the top grossing films in American history including Jurassic Park, Jaws, The Fast & Furious, and Despicable Me.

Universal Pictures also owns many subsidiaries including Universal Studios Home Entertainment, Focus Features, Working Title Films, Illumination Entertainment, Universal Animation Studios, and is part of a joint venture with United International Pictures.

P R O M I N E N T  P E O P L E

Ronald Meyer                           Donna Langley

Chairman and COO                  Chairman

H I S T O R Y

Universal Pictures was founded by the German-born “Father of the Hollywood Star System”, Carl Laemmle, in 1912 as a merger of smaller motion picture companies. [2] Universal Pictures became the model of the vertically integrated studio system in control of the entire filmmaking process from production, distribution, and exhibition. Universal Pictures was the largest studio in Hollywood for approximately a decade after its inception and has remained one of the most influential and prominent film studios in the world.

The Universal City Studios were opened to the public in March 1915, and made the filmmaking process suitable for tourism. They continue to function as active studios and are open for studio tours through the Universal Studios Theme Parks.

F I N A N C I A L S

Universal Pictures Inc. is privately owned company and does not release financial information to the public. However, as part of the “Big Six” film studios, its top competitors include Fox Filmed Entertainment, Paramount Pictures Corporation, and Sony Pictures Entertainment Inc.

2015 has been an incredibly successful year with blockbusters including Fifty Shades of Grey and  Furious 7. Universal Pictures International has achieved the $1 billion worldwide box office milestone for the ninth consecutive year in record time.[3] 

M O N E Y  A N D  T R A G E D Y || F U R I O U S  7

Furious 7, directed by James Wan and featuring a superstar cast including Vin Diesel, Paul Walker, and Dwayne “The Rock” Johnson, has made over $810 million in the worldwide box office so far [4]. It is estimated to reach at least $1.2 billion, proving to be one of top-grossing films ever made. It set the opening day record in China making $68.8 million and is the highest grossing film in the franchise.[5]

The emergence of locations with cheaper services and tax incentives are threatening the tradition of exclusive production in soundstages and studios in Hollywood. The majority of Furious 7 was filmed in Atlanta, Georgia and a few scenes were shot in Abu Dhabi and Colorado. The production of Furious 7 created 7,500 jobs and $47 million for the local Georgia state economy, contributing to the flourishing film and television industry. A “pro-business environment with competitive incentives” has made Georgia an attractive location for film production. [6]

Paul Walker, a key player of the Fast & Furious films, unexpectedly died in a car accident over Thanksgiving Break of 2013. Production was put on hold for nine months and eventually was able to resume and be completed through story rewrites, CGI, and his brothers acting as stand-ins. The untimely death of one of most prominent figures of the Fast & Furious franchise ultimately contributed to the widespread success of the film in the box office. Furious 7 became more than a blockbuster new edition of a franchise and added a sentimental and emotional arc that resonated with viewers. This is not to say that Paul Walker’s death was exploited by Universal for monetary gains, but was rather used to pay tribute and respect the work of the entire Fast & Furious franchise. [7]

F I F T Y  S H A D E S  O F  S U C C E S S 

Fifty Shades of Grey is an erotic film released on February 15, 2015 adapted from a bestselling novel of the same name by E.L. James. Fifty Shades was produced by Michael De Luca, directed by Sam Taylor-Johnson and starred Dakota Johnson and Jamie Dornan. Universal secured the rights to the bestselling trilogy over Warner Bros, Sony, Paramount, and Mark Wahlberg’s bids. NBCUniversal Chairman and COO, Ron Meyer, visited Newhouse and said that Universal would not have produced the film had it not been based on a bestseller. There was already “a built in audience” for the film and they made it true to the book in hopes that “five women together would see the movie” [8]. The decision to produce and release the film proved to be success. Fifty Shades made $165.9 million in the domestic box office and a solid $402 million in the foreign box office [9].

Producer Michael De Luca left his position as president of production at Sony’s Columbia Pictures to produce for Universal Pictures. He is responsible for producing the final two Fifty Shades movies which could earn him a hefty $20 million for the entire franchise. He has produced past hits including The Social Network, Moneyball, Captain Phillips, and 21 and is a highly beneficial addition to the studio. [10]

P R O J E C T I O N S

Ron Meyer attributed Universal’s diverse array of franchises to necessity. Since Universal does not own typical franchises like DC or Marvel Comics, they needed to find another source of steady income to keep the studio running. A studio’s main goal is to create hits and Universal has found success in the creation of franchises including The Fast & Furious and now the Fifty Shades trilogy [8]. The future of Universal Pictures is bright. Coming off a highly successful year of releases, Universal will continue to use the momentum that accompanies its many franchises.

On the release summer release docket are franchise continuations including Pitch Perfect 2, Jurassic World, Ted 2, and Minions. Universal is also releasing Trainwreck featuring Amy Schumer and Bill Hader and Straight Outta Compton featuring Ice Cube and Dr. Dre this summer. [11]

S O U R C E S

[1] Universal Pictures | NBCUniversal Careers. Retrieved April 16, 2015, from http://www.nbcunicareers.com/our-businesses/universal-pictures

[2] Carl Laemmle. (2015). In Encyclopædia Britannica. Retrieved from http://www.britannica.com/EBchecked/topic/327652/Carl-Laemmle

[3] UPI crosses $1bn in record time. Retrieved April 16, 2015, from http://www.screendaily.com/box-office/upi-crosses-1bn-in-record-time/5086232.article

[4] Furious 7 (2015) – Box Office Mojo. Retrieved April 17, 2015, from http://www.boxofficemojo.com/movies/?id=fast7.htm

[5] Weekend Report: ‘Furious 7’ Repeats, Sets Opening Day Record in China. Retrieved April 16, 2015, from http://www.boxofficemojo.com/news/?id=4055&p=.htm

[6] UNIVERSAL’S “FURIOUS 7” FILMED IN GEORGIA AND MADE A HUGE ECONOMIC IMPACT. Retrieved April 16, 2015, from http://www.mpaa.org/furious7/#.VS_0WBPF-Hs

[7] How Paul Walker’s Death Turned ‘Furious 7’ Into A Blockbuster. Retrieved April 17, 2015, from http://www.forbes.com/sites/scottmendelson/2015/04/09/how-paul-walker-helped-turn-furious-7-into-a-blockbuster/

[8] (2015, March 5). Ron Meyer. Lecture conducted from S. I. Newhouse School of Public Communications.

[9] Fifty Shades of Grey (2015) – Box Office Mojo. Retrieved April 16, 2015, from http://www.boxofficemojo.com/movies/?id=fiftyshadesofgrey.htm

[10 ] Michael De Luca Finalizes First-Look at Universal, Overseeing ‘Fifty Shades’ (2015, April 10). Retrieved April 16, 2015, from http://variety.com/2015/film/news/michael-de-luca-universal-fifty-shades-of-grey-1201470336/

[11] Retrieved April 16, 2015, from http://www.universalpictures.com/