Relativity Media, LLC

9242 Beverly Blvd.
Suite 300
Beverly Hills, CA 90210
310.724-7700

History

Founded in 2004, Relativity Media began as a mediator between studios and investors to arrange film deals. Since then, it has become a full-scale film studio that has produced critically acclaimed films such as “The Fighter”, and “The Social Network.”  In addition to being involved in the production, financing and or distribution of over 200 films, Relativity has divisions in television, sports, music fashion and digital media–truly establishing the company as a next-generation studio. [1]

LEADERSHIP

Ryan Kavanaugh founded Relativity in 2004, and has had an active role in its transition into a film studio and beyond. Kavanaugh began his career in Hollywood aiding in the finance for companies such as Universal, Sony and Warner Bros. His experience in film finance has allowed Relativity to produce well-performing films on lower budgets [2]. Under his leadership,Relativity Media has produced over 200 films for a return of over $17 billion in revenue and 60 Oscar nominations [3].

FINANCIALS

Relativity Media is a privately owned company, however its current projects and investments indicate its financial success. As stated before, the company has earned over $17 billion dollars through film productions. With this revenue, Relativity has been able to establish itself in other sectors that have contributed to its financial standings. In September of 2013, Relativity announced it would be creating a fashion division called M3/Relativity [4], in which Relativity would act as a representative for various members of the fashion industry from designers to make up artists. The company also has a sports division [5], in which it represents athletes such as Dwight Howard and David Ortiz.

On March 26th, 2014 Relativity acquired a share of Downtown Records [6] in which Relativity would invest in Downtown to sign new artists and expand their label, as well as to help the record label to share in Relativity’s global success. Most recently on April 14th, 2014, Relativity put in a bid of $500 million to acquire Maker Studios, and nearly $1.1 billion in stock. Founded in 2009, Maker Studios is a short form, online video platform and production company that targets younger audiences and the demand for online content [7]. Though Maker Studios had already approved a merger with Disney, executives at Relativity continue to show their eagerness to create new, exciting forms of content that further enforces Relativity’s brand not only creatively but monetarily as well.

TELEVISION

Relativity Media has also begun to break the mold by establishing a television branch in 2008 called RelativityREAL, which was recreated as Relativity Television in 2013.The television division led by CEO Tom Forman had originally produced exclusively unscripted content, but is now in the development stages of producing comedies and dramas [8]. Amongst its programming is one of the most wildly popular reality series on television, “Catfish.” “Catfish” follows Nev Shulman, producer of Catfish: The Movie, on his quest to help those who are in online relationships find the truth behind the computer screen. The third season of Catfish is set to premiere May 7th, 2014 on MTV, and is expected to do as well in ratings as “Catfish: Season 2”, which reached the number one spot in the 12-34 demographic in June 2013 [9].

FILM

Relativity Media’s film division is the largest sector of the company, and is responsible for films such as the Nicholas Sparks penned-hit “Safe Haven” and war-time drama thriller “Act of Valor” both of which earned about $70 million each in the domestic box office [10].

For 2014, Relativity has done well in the box office. “Oculus”, the horror thriller, has earned over $21 million with a $5 million budget since its April 11th release [11]. Considering its low budget and competition with blockbusters such as “Rio 2” and “Captain America: The Winter Soldier”, “Oculus” is receiving immense success this spring season.

In addition to “Oculus”, Relativity was moderately successful with “3 Days to Kill” which earned about $36 million world wide on a $28 million budget and stars Academy Award winner Kevin Costner [12].

The future of Relativity’s Film division is rather promising. On April 25th 2014, Relativity will release “Brick Mansions”, a dystopian action thriller starring late Paul Walker in one of his last performances, and has been much anticipated by viewers.

DIVERSITY IN FILM [13]

Relativity Creative Executive Josh Reinhold believes the upcoming projects will establish them as a main competitor in the entertainment industry. He believes that Relativity is on the forefront of producing films with diverse casts whom tell a story that more than just the majority can enjoy and relate to.

Discussing plans for Relativity to establish its own “arthouse” film division 278 Films (name in development), Reinhold believes this will open the doors for stories that “hasn’t been told before.” One of these stories takes the form of an upcoming film titled “Desert Dance”, which tells the story of a young Iranian man whom is threatened by his government for doing the thing he loves, which is to dance. Reinhold believes the value in films such as “Desert Dance” (undated), is that there are many other audiences to reach that will fall in love with the characters and make a meaningful connection with them.

Another film Reinhold feels will break the mold is “Blackbird”, which is set for a November 14th 2014 release. The film depicts the struggle of a young African-American woman as she begins her career in the music industry, and was written by Gina Prince Blythewood (author of “Love & Basketball”). Of “Blackbird” and “Desert Dance”, Reinhold said: “Seeing how Hollywood will have to shift in the way they cast actors and diversify stories is inspiring” [13].

SOURCES:

[1] http://www.relativitymedia.com/About.aspx                                                              DATE ACCESSED: April 12th, 2014.

[2] http://www.forbes.com/sites/dorothypomerantz/2013/04/17/why-ryan-kavanaugh-is-now-the-most-watched-man-in-hollywood/   DATE ACCESSED: April 18th, 2014

[3] http://www.relativitymedia.com/About.aspx (Ryan Kavanaugh CEO Bio)                    DATE ACCESSED: March 31st, 2014

[4] http://www.hollywoodreporter.com/news/relativity-media-moves-fashion-representation-625951                                                                                                         DATE ACCESSED: February 19th, 2014

[5] http://www.relativitysports.com/                                                                               DATE ACCESSED: April 20th, 2014

[6] http://www.billboard.com/biz/articles/news/record-labels/5944964/relativity-media-acquires-stake-in-downtown-records                                                                            DATE ACCESSED: April 12th, 2014

[7]  http://variety.com/2014/biz/news/relativity-offers-up-to-900-million-for-maker-studios-in-bid-to-outflank-disney-1201156736/    DATE ACCESSED: April 15th, 2014

[8] http://www.relativitymedia.com/RelativityTV.aspx                                                      DATE ACCESSED: April 15th, 2014

[9] http://www.realitytvworld.com/news/mtv-announces-premiere-for-third-season-of-catfish-tv-show-16155.php  DATE ACCESSED: April 15th, 2014

[10] http://boxofficemojo.com/

DATE ACCESSED: April 20th, 2014

[11] http://boxofficemojo.com/movies/?id=oculus.htm                                                  DATE ACCESSED: April 20th, 2014

[12] http://boxofficemojo.com/movies/?id=threedaystokill.htm                                         DATE ACCESSED: April 20th, 2014

[13] Personal Phone Interview with Creative Executive at Relativity Media Josh Reinhold  DATE OF INTERVIEW: March 25th, 2014