Warner Bros Pictures

Posted on September 18, 2012 by jdsaffre

by Jarrad Saffren

The Warner Bros Pictures logo, courtesy of WarnerBros.com.

A Brief History and Profile

Warner Bros Pictures is a major film studio that produces film, television, and music entertainment. Founded by the four Warner brothers, Albert, Harry, Sam, and Jack in 1918, Warner Bros Pictures has been a “Big Three” or “Big Six” American film studio since the development of the “major film studio” classification in the 1930s. Based on revenue and market share statistics from the 2011 fiscal year, Warner Bros Pictures is the most profitable entertainment subsidiary of the Time Warner conglomerate and the second most profitable major film studio behind only Paramount Pictures. It merges several divisions and brands including New Line Cinema, HBO Films, Castle Rock Entertainment, Warner Bros Animation, and DC Entertainment.

Financial Situation

On the strength of a lucrative summer performance at the box office that included the seventh highest grossing film of all-time (“The Dark Knight Rises”), Warner Bros Pictures had its strongest financial quarter in a year in terms of net income. Including the cost of revenue and after taxes, Warner Bros raised its net income from $430 million at the end of the second quarter of 2012 in June to $838 million at the end of the third quarter in September (1). This is the highest total for the company since it netted $822 million in the third quarter of 2011.

Unfortunately, Warner Bros’ net income is expected to drop slightly at the end of the fourth quarter. At the box office, the fall and early winter season has been a mixed bag for Warner Bros based on its two most prominent releases. Ben Affleck’s “Argo” is a smash hit that has grossed over $111 million and counting, surpassing its $44 million budget with flying colors (2). “Cloud Atlas,” on the other hand, has been a resounding box office failure in spite of critical acclaim. The film has grossed just $25 million against an estimated $100 million budget (3).

This mixed bag is not alarming because the fall movie season is typically less lucrative than the summer and holiday seasons that bookend it. As one of the most prominent film studios on the planet, Warner Bros has also finalized a steady stream of high profile releases featuring A-list stars coming out this holiday season and throughout 2013.

On a long-term scale, Warner Bros has raised its total shareholder equity this quarter to $30.02 billion, its highest total since the third quarter of 2011 (4). More people are investing in Warner Bros because the company has finally started to market its vast intellectual property holdings via alternative media sources like Flixster, a company-owned online streaming service.

Recent News

August 2012

Peter Jackson is teaming up with Warner Bros for another Hobbit trilogy beginning this December. Photo courtesy of Wikipedia.org.

In a joint announcement on the last day of the month, Warner Bros Pictures and Metro-Goldwyn-Mayer Pictures revealed that the final film in Peter Jackson’s trilogy adaptation of “The Hobbit” will be released worldwide on July 18, 2014. All three films are set in Middle-earth 60 years before “The Lord of the Rings,” which Jackson and his team adapted into an award winning trilogy of its own from 2001 to 2003. The first installment in the new trilogy “The Hobbit: An Unexpected Journey” kicks off the holiday movie season next Friday and could provide an end-of-quarter financial boost for the company. The second “The Hobbit: The Desolation of Smaug” will be released on December 13, 2013. (5)

September 2012

In the first week of September, Jack Horner was named Executive Vice President, Theatrical Communications, Warner Bros Pictures Group. Sue Kroll, President, Worldwide Marketing, Warner Bros Pictures, created this new position. Horner will primarily handle corporate PR issues relating to the film division. He will work closely with the domestic and international publicity units of the film division as Warner Bros tries to expand its reach across multiple platforms and cultures. Horner most recently worked at News Corporation, where he was Vice President of Corporate Affairs and Corporate Communications. (6)

About a week after the Horner announcement, shooting began for “The Hangover Part III,” the third and final film in director Todd Phillips’ wildly popular comedy trilogy. The project is a team effort between Warner Bros Pictures and Legendary Pictures. Bradley Cooper, Ed Helms, Zach Galifianakis, and Justin Bartha are back to star as the beloved “Wolfpack” foursome of Phil, Stu, Alan, and Doug. “The Hangover Part III” is scheduled for a worldwide release on May 24,2013. (7)

October 2012

Always staying proactive, in addition to “The Hangover,” Warner Bros Pictures announced a slate of four new films set for release during 2013. “The Incredible Burt Wonderstone” stars Steve Carell, Steve Buscemi, and Jim Carey as dueling magicians on the Las Vegas strip. It comes out on May 15^th. “The Conjuring” stars Vera Farmiga and Patrick Wilson as paranormal investigators who are forced to take on the most horrifying case of their careers in a secluded farmhouse. It hits theaters on July 19^th. “We’re the Millers” stars Jason Sudeikis as a small-time pot dealer forced to travel to great lengths to pay off a debt to his big-time supplier. It will premiere on August 9^th. “Prisoners” stars Hugh Jackman as a desperate father who abducts the man he suspects is behind the kidnapping of his eight-year-old daughter. It is set for release on September 20^th. (8)

“All You Need is Kill” is based on a 2004 Japanese sci-fi novel of the same name. Photo courtesy of Wikipedia.org.

Looking even further into the future, Warner Bros Pictures, Legendary Pictures, and Village Roadshow Pictures announced jointly that “All You Need is Kill,” a sci-fi thriller starring Tom Cruise and Emily Blunt and based on the book of the same name, will be released on March 14, 2014. The film is a futuristic, society-on-the-brink drama where an alien race is swiftly destroying the human race. Cruise and Blunt star as the military lieutenant and Special Forces warrior tasked with destroying the alien invaders and saving the world. (9)

Such a bright future would not be possible without Warner Bros’ landmark past. This January, Warner Bros Pictures will pop the corks on a yearlong celebration of its 90^th anniversary. On the strength of the largest film library in the world–6,800 feature films including 22 Academy Award-winning Best Pictures–Warner Bros will be releasing seven new exclusive film collections to DVD and Blu-ray. 100 of the films will be on DVD, 50 on Blu-ray. Both will be the largest such collections of their formats in history to date. Several classics will also be released individually on Blu-ray for the first time including “The Jazz Singer” and “Driving Miss Daisy.” (10)

In addition to its innovative approach for bringing old classics onto newer formats, Warner Bros is also getting in on the newest media. In the last week of October, after announcing its anniversary celebration, Warner Bros revealed that it is teaming with Paramount Home Media Distribution to release more than 600 catalog titles from the Paramount film library via Flixster, the Warner Bros movie streaming and discovery service. Warner Bros will now have exclusive rights to Blu-ray and DVD distribution of those movies in the US and Canada, expanding the company’s massive reach into the pivotal Internet streaming sector. (11)

Finally, to conclude its busiest month of the third quarter and most progressive technological month of any quarter in recent memory, Warner Bros Home Entertainment agreed to a multiyear deal with Redbox, a DVD, Blu-ray, and video game distribution service owned by Coinstar, to bring Warner Bros titles to Redbox kiosks. All Warner Bros titles will be released to the kiosks just 28 days after their initial retail release dates. In addition, Redbox has agreed to promote Ultraviolet, Warner Bros innovative streaming service that would allow consumers to buy a title once and then access it anywhere on any device. (12)

November 2012

Warner Bros picked up in November right where they left off in October, continuing its mass effort to release content across multiple platforms. The new hobbit trilogy is not even out in theatres yet, but it is already hitting the mobile circuit. Warner Bros Interactive Entertainment has teamed up with Kabam, a leading producer of multiplayer games for electronic devices, to launch “The Hobbit: Kingdoms of Middle-earth” app for iPhone, iPad, iPod touch, and Android devices. The game is based on collective strategy with other users and is free for all consumers of the aforementioned devices. (13)

In the midst of these new platforms, Warner Bros did not forgot about the one that made it a player in the first place: the big screen. In 2003, Warner Bros became one of the first film companies to partner with the IMAX Corporation. A few weeks before Thanksgiving, the two sides agreed on a new 20-picture deal over the next three years. Among the anticipated Warner Bros titles that will be showcased via the IMAX experience are “300: Rise of an Empire” (August 2, 2013) and “The Hobbit: The Desolation of Smaug” (December 13, 2013). (14)

References

Universal Pictures

Aside

by [Bobby O'Brien]

Universal Pictures Logo [1]

Overview & History

Universal Pictures, a subsidiary of NBC Universal, is considered one of the planet’s most renowned film studios. For nearly a century the company has produced academy award winning films and culture shaping content. Over the past 6 months, Universal Picture’s tradition of excellence has continued. Since June 29th 2012, Universal Pictures has released 5 major motion pictures. Of these films, 4 have placed within the top 70 grossing films of 2012, and 3 have placed within the top 50. These five films have accumulated a combined gross product of $442, 317, 963. [2]

Carl Laemmle [4]

In 1915, German-American Film pioneer, Carl Laemmle, founded Universal Studios with the help of Abe and Julius Stern. The trio constructed two movie sets on a former chicken farm in Los Angeles California. Ninety-eight years later, 100 Universal City Plaza Drive in Los Angeles California remains the home of Universal Studios. [3] Today Universal Pictures is spearheaded by several accomplished and capable leaders, including James Schamus, Jimmy Horowitz, Cindy Gardner, Adam Fogelson, and Rick Finkelstein.

Executives

James Schamus [6]

James Schamus is the Chief Executive Officer of Universal Pictures. He has held the position since May of 2006. Schamus also serves as the Co-President of Focus Features, a sister company of Universal Pictures. [5]

In May of 2010, Jimmy Horowitz was named president of Universal Pictures. Horowitz manages day to day business operations for the studio and serves as a key member for Universal’s senior management team. He has worked for Universal for more than 18 years. [7]

Cindy Gardner has served as Universal Studio’s Senior Vice President since September 2005. Gardner is responsible for the company’s media relations, issues management, philanthropy, and special events. [8]

Adam Fogelson has held the title of Chairman of Universal Pictures since October of 2009. He oversees worldwide operations for the motion pictures group. Projects that Fogelson has worked on include American Pie, Knocked Up, and Erin Brockovich. [9]

Rick Finkelstein serves as Universal Pictures Vice Chairman and Chief Operating Officer. This Jerry Seinfeld-look-alike oversees Universal Picture’s worldwide home entertainment and television distribution. [10]

Recent News

September:

September 7th, 2012

The Street has recently informed the public of Universal Pictures plans to release Pitch Perfect, a musical comedy staring Anna Kendrick, on Friday September 28th, one week earlier than its scheduled premiere on October 5th. The film’s wide release is set to remain on its prior date, however select theaters in North America will have an opportunity to see it ahead of time. The limited release was constructed following positive feedback from early screening moviegoers. Universal Pictures feels that Pitch Perfect has a reliable and sturdy target audience that is eager for the film’s release. To some surprise, Universal Pictures has promoted Pitch Perfect with “the most extensive screening campaign in the studios history.” [11]

September 25th, 2012

The Hollywood Reporter reports that Universal Pictures has set a record for the “highest grossing-year domestically in the studio’s 100 year history”. On Monday September 24th, the studio surpassed the previous record of $1.27 billion set in 2008. More than a third of the studio’s gross product came from The Lorax and Ted, acquiring a combined $432 million. This ground-breaking news comes before the release of four major Universal Pictures’ films, including Pitch Perfect, The Man WIth the Iron Fists, This is 40, and Les Miserables. Universal Pictures is on track to shatter its 2008 record. Perhaps it will be far more than four years before the record of 2012 will be broken. [12]

October:

October 29th, 2012

According to Variety, Universal Pictures has alas acquired the rights to Subdivision. The sci-fi comedy written by Morgan Jugerson and Alex Ankeles will be produced by Justin Lin and Elaine Chin. All involved in the deal have been sure to keep the

Fast Five [16]

premise under wraps. Lin may be remembered for his recent success associated with Fast Five, a film he produced that was released in April of 2011. Universal’s VP of production, Kristin Lowe, will oversee the project. Unfortunately, a feasible release date for the film has yet to be determined. [13]

October 31st, 2012

PR Newswire has reported that Universal Pictures will release its Despicable Me 2, trailer on iTunes today. The occurrence marks the first time that the studio has released a trailer on iTunes with international versions available within the same 24 hour period. This development perhaps illustrates the studio’s continued technological and global advancements. Despicable Me 2 hits theaters on July 3rd 2013. [14] Universal will attempt to play off of the success of Despicable Me, which raked in a total domestic gross of $251,513,985 in the summer of 2010. [15] Look for Despicable Me 2 to make a big splash this summer.

November:

November 12th, 2012

The Hartford Courant has recently reminded us that, November 15th, 2012 marks the 50th anniversary of the groundbreaking premiere of To Kill a Mocking Bird. Universal

To Kill A Mockingbird [18]

Pictures’ adaptation of Harper Lee‘s novel will be re-released on Thursday, November 15th in select theaters. The 1962 film won Gregory Peck an Oscar for his portrayal of Atticus Finch. It will forever be remembered as an American classic. [17]

November 13th, 2012

At 9 a.m. pacific standard time, the Los Angeles Times reported a story that is sure to shake up the film industry. According to the newspaper, Michael Eisner‘s Tornante Co. has finalized a distribution deal with Universal Pictures. The multiyear deal will lead Universal Pictures to market and distribute movies financed by Tornante. Eisner is the former Chief Executive Officer of the Walt Disney Company. In an attempt to “return to his roots” of moviemaking Eisner looks to take advantage of the industry’s lack of original stories. He hopes that the first of Tornante’s feature films will be released no later than early 2014. In a time when the film industry is cluttered with sequels and remakes, it is encouraging to hear of an opportunity for new and original content. With the money and support of Universal Pictures, Tornante Co., is likely to become a household name in Hollywood. [19]

November 29th 2012

In March of 2012 Universal Pictures Spent $5 million to acquire the movie rights of Fifty Shades of Grey, the best selling novel written by E.L. James. The Hollywood Reporter has released a story stating that Universal pictures has recently filed a lawsuit against Smash Pictures and director James Lane, who have recently finished producing Fifty Shades of Grey: A XXX Adaptation. Luv Moves a distribution company that packaged and allocated DVD’s of the porn parody has also been targeted in the lawsuit. Universal Picture’s and Fifty Shades Ltd. are requesting an injunction and further monetary damage. [20]

December

December 4th 2012

Universal Picture’s Les Miserables, is one of the most highly anticipated films of 2012. Set to be released on Christmas day, the musical starring Hugh Jackman, Russell Crowe, and Anne Hathawayis due for a strong opening weekend and perhaps some

Les Miserables [21]

recognition from the academy. The Sacramento Bee has reported an announcement from Universal Pictures, stating that the film will be “digitally remastered into the immersive IMAX format” and released in IMAX theaters worldwide. The film will be released in IMAX theaters in New York, Los Angeles, Toronto, and Montreal on December 25th. Those abroad will have to wait until January 10th for the film’s IMAX release. Greg Foster, the President of IMAX entertainment, stated that Les Miserables “lends itself perfectly to the IMAX Experience”. The IMAX release of Les Miserables is sure to amplify the buzz surrounding the movie and its premiere. The second format option and increase in screens may lead to a tremendous financial success. [22]

Future

The upcoming winter and remainder of 2012 appears to be promising for Universal Pictures. On December 21st 2012, This is 40, a film written and directed by Judd Apatow, will be widely released in North America. The highly anticipated Les Miserables, will premiere on Christmas day and the Osama Bin Laden murder thriller, Zero Dark Thirty, will be released two and a half weeks later. A fitting end to a record-setting year seems to be in store for Universal Pictures.

Sources:

[1] Universal Pictures’ Twitter Account; https://twitter.com/UniversalEnt

[2] Box Office Mojo; 2012; http://www.boxofficemojo.com/yearly/chart/?yr=2012&p=.htm

[3] U.S. History: Universal Studios; http://www.u-s-history.com/pages/h3086.html

[4] Silent Hollywood; http://silenthollywood.com/carllaemmle.html

[5] Bloomberg Business Week; http://investing.businessweek.com/research/stocks/private/person.asp?personId=2144227&privcapId=2092219&previousCapId=804881&previousTitle=Universal%20Studios,%20Inc.

[6] IMBD; James Schamus; http://www.imdb.com/name/nm0770005/

[7] NBC Universal Website; Executives; Jimmy Horowitz; http://www.nbcuni.com/corporate/management/executive/universal-pictures/jimmy-horowitz/

[8] NBC Universal Website; Executives; Cindy Gardner http://www.nbcuni.com/corporate/management/communication-lead/universal-pictures/cindy-gardner/

[9] NBC Universal Website; Executives; Adam Fogelson http://www.nbcuni.com/corporate/management/senior-corporate-executives/universal-pictures/adam-fogelson/

[10] NBC Universal Website; Executives; Rick Finkelstein http://www.nbcuni.com/corporate/management/executive/universal-pictures/rick-finkelstein/

[11] PR Newswire; The Street; http://www.thestreet.com/story/11689878/1/universal-pictures-to-release-pitch-perfect-in-select-theaters-on-friday-september-28-2012.html