Universal Pictures

Posted on April 13, 2016 by Yeagee Jung

UNIVERSAL STUDIOS

100 Universal City Plaza
Universal City, CA 91608

www.universalstudios.com

HISTORY

Universal Studios was founded by Carl Laemmle, Mark Dintenfass, Charles O. Baumann, Adam Kessel, Pat Powers, William Swanson, David Horsley, Robert H. Cochrane and Jules Brulatour. Following the boom of film studios of the time, Universal Studios became a vertically integrated company, linking movie production, exhibition, and distribution all into one corporate entity. Universal ranks among the “Big Six” film studios and is a subsidiary of NBC Universal who indirectly belong to Comcast, a huge media conglomerate. They’ve produced films such as Jurassic World which grossed at $651,926,506 making it the fourth highest grossing film of all time domestically and worldwide [15].

KEY EXECUTIVES

—Donna Langley, Chairman, Universal Pictures – Source: Forbes [16]

—Jeff Shell, Chairman (Filmed Entertainment), Universal Pictures – Source: BBG [17]

FINANCIALS

While Universal Studios is a privately traded company, Comcast is its parent company and they are publicly traded. In the most recent quarterly report, Universal cited a revenue increase of 25.8% to $1.6 billion compared to $1.3 billion in the previous year. There was a 74.9% increase in home entertainment revenue drive by the strong performances of Jurassic World and the Minions and Universal has cited an upward trend of revenue into the 2016 year. Earnings per share increased 6.8% with the value being held at $0.79 compared to the $0.74 reported in the fourth quarter of the previous year [7].Universal Studios is currently 5th place in terms of top grossing film companies with a market share of 7.7% and a total gross of $252.4 billion [12]. They hold an average of $36,054,255 per release for its 7 releases so far in 2016. Their top grossing release is Ride Along 2 which cited a total gross of $90,862,685 which exceeded their budget of $40 million [11]. Universal Studios is planning 15 releases for the rest of the 2016 year with the genres being split roughly in half between comedy and horror [13].

IN THEATERS

—The Boss (2016) [19]

The Boss

The Boss is another one of Melissa McCarthy’s slapstick style comedy movies and was released on April 8th, 2016. The opening weekend of The Boss beat out Batman V Superman by a mere $45,000 proving McCarthy’s star power as a movie she stars in tops another $20+ million opener. The movie opened its weekend with a total gross of $23.48 million with a reported budget of $29 million [1]. The second weekend saw a larger-than-expected 57.8% drop, but still remained in the top five grossing movies that week. The longevity of the movie may extend a little more seeing as the next R-rated comedy doesn’t release until around late May with Neighbors 2 [3].

—The Huntsman: Winter’s War (2016) [20]

The Huntsman: Winter’s War

The sequel to Snow White and the Huntsman, which grossed a total of $396.6 billion, called The Huntsman: Winter’s War was released on April 22, 2016. It charted at number 2 behind Jungle Book, even though Jungle Book was in its second week of circulation [2]. The Huntsman: Winter’s War earned a total of $20,080,000 in its opening weekend domestically and $80,200,000 internationally, proving the series popularity in the foreign market. With an estimated budget of $20 million, it brought in approximately 36% of the opening weekend total of its predecessor. The audience skewed 61% female and 39% male with 47% of the audience being over the age of 30. Comparatively, Snow White and the Huntsman attracted a much more evenly distributed gendered audience with about 53% of them being female [14]. Looking forward, it’s unlikely that the movie will reach an overall domestic cume of $55-60 million off their reported budget of $115 million.

SPRING/SUMMER 2016 RELEASES

Neighbors 2: Sorority Rising

Neighbors 2: Sorority Rising is an R-rated comedy sequel to the popular Neighbors movie starring Zac Efron and Seth Rogen. Director Nicholas Stoller has said that the sequel was actually inspired by “Toy Story 2“. The film has a bigger budget than the previous one and is expected to focus of different aspects of college greek life. The movie is slated for release on May 20, 2016 [23].

The Purge: Election Year

The Purge: Election Year is also another movie in the series of Purge movies slated for release on July 1, 2016. The movie is third in the series and will follow Senator Charlene Roan played by Elizabeth Mitchell and her head of security Leo Barnes played by Frank Grillo as they escape those looking to kill them for the night. Director of the first two films, James DeMonaco, has agreed to return to direct this third installment [22].

FUTURE FOR UNIVERSAL PICTURES

Following competition from other big name companies like Paramount and Warner Bros, Universal Pictures has invested into turning a selection of its movies in 4K Ultra HD this summer. The upcoming Warcraft and Jason Bourne movies will pioneer the format along with UHD versions of Everest, Lucy, and Lone Survivor [6]. The home entertainment movie sector will offer an enhanced selection of new release and catalog titles mastered in Dolby Vision™ and plans to makes all titles available in 4K Ultra HD Blu-Ray and 4K Ultra HD digital formats by the end of 2016 [8].

—Jurassic World 2 teaser poster [18]

In terms of future releases, Universal will be continuing on the success of Jurassic World, the movie that brought in $1.6 billion dollars, and produce the sequel which has a release date of June 22, 2018. The director for the sequel was just announced on April 18th, 2016, to be J.A. Bayona, a Spanish filmmaker who make a name for himself through his tsunami drama The Impossible [5]. Chris Pratt and Bryce Dallas Howard, the stars of Jurassic World, are expected to reprise their roles for the follow-up film.

The Chinese media company, Perfect World Pictures, announced their plan to co-finance up to 50 movies, or movies for a time span of five years, for $500 million with Universal Pictures in an effort to diversify into the English-language film sector [4]. The president, Rong Chen, stated that an even larger phase of investment into Hollywood will follow the deal with Universal this year. Sources familiar with the deal states that Perfect World’s investment would get it a 25% share of most, but not all, of the films released by Universal [9]. This marks the first time a non-state-owned enterprise entertainment company from China will be working directly with a major U.S. studio. In addition, this will be the first time a Chinese company will invest in a multi-year deal with a major U.S. studio [10].

SOURCES

[1] Brevet, Brad (April 10, 2016) Melissa McCarthy’s ‘The Boss’ Narrowly Tops ‘Batman V Superman’ for Weekend #1. Box Office Mojo. Retrieved April 23rd, 2016.

[2] Mendelson, Scott (April 24, 2016) Weekend Box Office: ‘The Huntsman’Opens 64% Lower Than ‘Snow White And The Huntsman.’ Forbes. Retrieved April 25rd, 2016.

[3] Brevet, Brad (April 21, 2016) ‘Jungle Book’ To Repeat at #1 Over ‘The Huntsman: Winter’s War.’ Box Office Mojo. Retrieved April 23rd, 2016.

[4] Brzeski, Patrick (April 21, 2016) China Exec Who Put $500M Into Universal Pictures Says “More To Come.” The Hollywood Reporter. Retrieved April 23rd, 2016.

[5] Kit, Borys (April 18th, 2016) ‘Jurassic World’ Sequel Finds Its Director. The Hollywood Reporter. Retrieved April 23rd, 2016.

[6] Palladino, Valentina (April 20th, 2016) Universal Pictures to release 4K Blu-ray movies, starting with Jason Bourne. ArsTechnica. Retrieved April 23rd, 2016.

[7] Comcast Fourth Quarter 2015. Comcast. Retrieved April 23rd, 2016.

[8] Unknown (April 19th, 2016) Universal Pictures Home Entertainment Unveils First 4K Ultra High Definition Offerings. PR Newswire. Retrieved April 23rd, 2016.

[9] Faughnder, Ryan (February 17, 2016) China’s Perfect World invest up to $450 million in Universal film slate. Los Angeles Times. Retrieved April 23rd, 2016.

[10] Petski, Denise (February 17th, 2016) Universal & China’s Perfect World Confirm 50 Film Funding Deal. Deadline. Retrieved April 25th, 2016.

[11] Ride Along 2. Box Office Mojo. Retrieved April 25th, 2016.

[12] Studio Market Share. Box Office Mojo. Retrieved April 25th, 2016.

[13] Box Office by Studio: Universal. Box Office Mojo. Retrieved April 25th, 2016.

[14] Brevet, Brad (April 24, 2016) ‘Jungle Book’ Repeats, ‘Huntsman’ Falls On His Axe and ‘Zootopia’ Tops $900M Worldwide. Box Office Mojo. Retrieved April 25th, 2016.

[15] Universal Studios. Comcast. Retrieved April 25th, 2016.

[16] Donna Langley. Forbes. Retrieved April 25th, 2016.

[17] Jeff Shell. BBG. Retrieved April 25th, 2016.

[18] Jurassic World Sequel Teaser. Twitter. Retrieved April 25th, 2016.

[19] The Boss. IMDB. Retrieved April 25th, 2016.

[20] The Huntsman: Winters War. IMDB. Retrieved April 25th, 2016.

[21] Youtube: Neighbors 2: Sorority Rising. Youtube. Retrieved April 25th, 2016.

[22] Youtube: The Purge: Election Year. Youtube. Retrieved April 25th, 2016.

[23] Jogwar, Sangati (April 13, 2016) ‘NEIGHBORS 2: SORORITY RISING’ INSPIRED FROM ‘TOY STORY 2’ AND ‘MAD MAX.’ Movienewsguide. Retrieved April 25th, 2016.

MGM

Posted on February 18, 2016 by Bradley Hanford

MGM Logo [1]

Finances

After a bankruptcy declaration in 2011, Metro-Goldwyn-Mayer has regained its position as a profitable major film studio in the last five years. MGM Studios is owned by the larger parent company of MGM Holdings Inc., a company formed from what was formerly Spyglass Entertainment [2]. In 2015, the studio made $1.56 billion in revenue, resulting in an operating income of $258.78 million. This was up from $1.44 billion and $243.03 million, respectively, in 2014. 2015 was the company’s third consecutive year of posting record revenue and income. MGM Holdings’ total assets currently stand at $3.045 billion [3]. The studio has been in the process of repurchasing its stocks since its bankruptcy, and in March announced that $300 million more would be added to their repurchasing plan. The ramping up of the repurchasing plan has been taken as a sign of confidence in the company’s continued growth [4].

Recent Acquisitions

In January of 2016, MGM fully acquired the United Artists Media Group, a film and television production company that had been a joint venture with Mark Burnett, Roma Downey and Hearst Productions. MGM had acquired a 55% stake in Burnett, Downey and Hearst’s One Three Media and LightWorkers Media in September 2014, and relaunch the companies as United Artists. As of January 2016, all revenues, expenses and assets of United Artists are now consolidated under the MGM name [5].

Gary Barber [6]

Mark Burnett [7]

Jonathan Glickman [8]

Executives

MGM’s three top executives are Chairman and Chief Executive Officer Gary Barber, President of the Television and Digital Group Mark Burnett, and President of the Motion Picture Group Jonathan Glickman. Barber and Glickman were previously the heads of Spyglass Entertainment, where Barber oversaw the production of a total of $5 billion in box office productions. MGM became the first studio to release back-to-back films making over $1 billion at the box office under Barber’s leadership with The Hobbit: An Unexpected Journey and Skyfall. Burnett was named to his position in January 2016, when MGM fully acquired his United Artists company. His former United Artists co-owner Roma Downey is President of LightWorkers Media, which is now the “faith and family division of MGM Television” [9].

Current Releases

How To Be Single [14]

MGM has only released two films thus far in 2016, both of which were coproduced with New Line Cinema and were distributed by New Line’s parent studio Warner Brothers [10] [11]. These films were How To Be Single and Barbershop: The Next Cut, both relatively small-scale but still distinctly mainstream offerings, opening in 3,343 and 2,661 theaters respectively. How To Be Single was by far the more successful, bringing in $46.8 million in domestic box office revenue and a total of $105.3 million worldwide, against a production budget of $38 million [12]. Barbershop was less successful, though not necessarily a flop. It brought in $20.2 million in its opening weekend (April 15-17) against predictions in the high-$20 millions range. Its production budget has not been released to the press [13]. These films also show that MGM is willing to target underserved demographics with their films, with How To Be Single being described as attempting to be a “feminist rom-com” and Barbershop being specifically marketed towards African-Americans.

Upcoming Releases

MGM has three more coproductions with release dates in 2016, each with their own significant potential for profit.

Me Before You is slated for a June 3 release, and is a romantic drama abou a young woman (Emilia Clarke) who falls in love with a paralyzed man she is caring for (Sam Claflin) [15]. The plot description puts in squarely in the vein of other successful films like The Fault In Our Stars and Me and Earl and The Dying Girl, which also dealt with themes of serious illness and young adult romance. The film’s cast should also appeal to this young demographic, as Emilia Clarke is a rising star due to her role as Daenerys Targaryen on the HBO television show Game of Thrones (also in the film is Clarke’s Thrones co-star Charles Dance) [16], and Sam Claflin has gained fame from the Hunger Games series [17]. The film is based on the acclaimed novel of the same name by Jojo Moyes. MGM is co-producing the film with New Line Cinema (a division of Warner Bros.) and Sunswept Entertainment [18].

Ben-Hur is the first of MGM’s two remakes of classic films in 2016, and will be released on August 19. It’s also the more outwardly risky- its director, Timur Bekmambetov, is hardly an established hitmaker, and the only big name in its cast is Morgan Freeman in a supporting role (the title role is played by the essentially unknown Jack Huston) [19]. Still, Ben-Hur has the name recognition of one of the most famous and successful films ever made, as well as the appeal of a big-budget summer blockbuster. MGM is co-producing the film with Paramount Pictures [20].

The Magnificent Seven, set for release on September 23, is a remake of the classic John Sturges Western starring Steve McQueen and Charles Bronson, itself a remake of Akira Kurosawa’s legendary Seven Samurai. The film is being directed by Antoine Fuqua (Training Day, Southpaw), and stars Denzel Washington, Chris Pratt, and Ethan Hawke, among others [21]. That combination of commercially successful director and all-star cast is a solid predictor for the film’s financial success. Pratt, especially, has been a major draw at the box office, headlining such hits as Guardians of the Galaxy and Jurassic World [22]. MGM is co-producing the film with Columbia Pictures, a subsidiary of Sony Pictures [23].

MV5BMTM4ODI5MjA2N15BMl5BanBnXkFtZTcwODUwODk1OQ@@._V1_UY317_CR0,0,214,317_AL_

Michael B. Jordan [28]

In Development

Future projects of MGM’s include a recently announced reboot of the Tomb Raider series, which they will coproduce with Warner Bros [24] (Daisy Ridley, star of Star Wars: The Force Awakens, has been confirmed as being in talks to star in the series) [25]. This would be the newest in a succession of recent MGM coproductions with Warner Bros., including films like the Hobbit trilogy and Creed and its upcoming sequels [26]. Other future MGM productions include a remake of the 1968 heist thriller The Thomas Crown Affair with Creed star Michael B. Jordan [27].

Conclusion

It’s not clear whether MGM will make a return to producing or distributing films by themselves, or whether they will continue serving only in a co-producer or co-distributor role, as they have since their bankruptcy. The studio has released progressively more films per year since the 2010 bankruptcy, climbing from one release in 2010 to seven in 2015 [29]. Metro-Goldwyn-Mayer is still a long way from their former position as the largest and most profitable movie studio in Hollywood [30], but the success they’ve had in their recent films and their continued financial growth bodes well for the future of the company.

[1] Koscis, James (November 10th, 2009). MGM Logo. James Koscis Design + Imaging. Retrieved: April 18th 2016.

[2] Ovide, Shira and Spector, Mike (November 5th, 2010). Everything You Need to Know about the MGM Bankruptcy. The Wall Street Journal. Retrieved: April 10th 2016.

[3] Investor Relations. MGM Studios. Retrieved: April 12th 2016.

[4] Lieberman, David (March 25th, 2016). MGM Board Adds $300M To Stock Repurchase Plan. Deadline. Retrieved: April 13th 2016.

[5] McNary, Dave (December 14th, 2015). Mark Burnett Named President of MGM Television. Retrieved: April 12th 2016.

[6] Today. MGM Studios. Retrieved: April 12th 2016.

[7] Today. MGM Studios. Retrieved: April 12th 2016.

[8] Today. MGM Studios. Retrieved: April 12th 2016.

[9] Today. MGM Studios. Retrieved: April 12th 2016.

[10] How to Be Single (2016)- Company Credits. IMDb. Retrieved: April 15th 2016.

[11] Barbershop: The Next Cut (2016)- Company Credits. IMDb. Retrieved: April 15th 2016.

[12] How to Be Single (2016). Box Office Mojo. Retrieved: April 10th 2016.

[13] Barbershop: The Next Cut (2016). Box Office Mojo. Retrieved: April 10th 2016.

[14] How To Be Single. IMDb. Retrieved: April 10th 2016.

[15] Titles- Me Before You. MGM Studios. Retrieved: April 17th 2016.

[16] Game of Thrones. IMDb. Retrieved: April 17th 2016.

[17] Sam Claflin. IMDb. Retrieved: April 17th 2016.

[18] Me Before You- Company Credits. IMDb. Retrieved: April 17th 2016.

[19] Ben-Hur. IMDb. Retrieved: April 18th 2016.

[20] Ben-Hur (2016)- Company Credits. IMDb. Retrieved: April 18th 2016.

[21] The Magnificent Seven. IMDb. Retrieved: April 18th, 2016.

[22] Chris Pratt. IMDb. Retrieved: April 18th, 2016.

[23] The Magnificent Seven (2016)- Company Credits. IMDb. Retrieved: April 18th, 2016.

[24] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ Reboot. Variety. Retrieved: April 20th, 2016.

[25] Ritman, Alex (March 21st, 2016). Daisy Ridley Confirms ‘Tomb Raider’ Reboot Talks. The Hollywood Reporter. Retrieved: April 20th, 2016.

[26] McNary, Dave (February 25th, 2016). Warner Bros. Joins MGM on ‘Tomb Raider’ Reboot. Variety. Retrieved: April 20th, 2016.

[27] Kit, Borys (February 24th, 2016). Michael B. Jordan, MGM to Remake “The Thomas Crown Affair. The Hollywood Reporter. Retrieved: April 20th, 2016.

[28] Michael B. Jordan. IMDb. Retrieved: April 23rd, 2016.

[29] Metro-Goldwyn-Mayer: Completed. Movie Insider. Retrieved: April 23rd, 2016.

[30] Metro-Goldwyn-Mayer, Inc. Encyclopedia Britannica. Retrieved: April 23rd, 2016.

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