Relativity

Posted on April 17, 2015 by Nicholas Matarazzo

by Nicholas Matarazzo

[1] Relativity Media Logo

HISTORY

Relativity Studios, or simply Relativity, consists of the film and television divisions of Relativity Media LLC. Founded by Ryan Kavanaugh in 2004, the company has produced, distributed and structured financing for over 200 feature films garnering 60 Oscar® nominations. Led by President and Chairman Tucker Tooley and President of Production Robbie Brenner, Relativity has released No. 1 box office openers such as Immortals, which grossed $83 million domestically [2], and produced Academy Award Winning films such as the Internet biopic The Social Network (2010) and The Fighter (2010).

[2] "The Social Network" is one of Relativity's most critically acclaimed films, winning Best Adapted Screenplay, Best Original Score, Best Film Editing at the 2011 Academy Awards.

[3] “The Social Network” is one of Relativity’s most critically acclaimed productions, winning Best Adapted Screenplay, Best Original Score, Best Film Editing at the 2011 Academy Awards.

Relativity produces films for large audiences both foreign and domestic, which provide entertainment for a wide variety of target audiences and demographics. With genres ranging from heart-felt romantic dramas to action packed, adrenaline filled thrillers, Relativity strives to bring premium feature films to theaters all over the globe. Some of Relativity Studios’ most successful films include Limitless (2011), starring Bradley Cooper, and Mirror Mirror (2012), starring Julia Roberts.

In addition to film production Relativity also houses both financing and distribution divisions, equipping itself as a fully fledged vertically integrated company. The company has the resources to finance, produce and distribute a film from start to finish and has done so even more effectively since 2010 when the company absorbed the marketing and distribution holdings of Overture Films.

KEY EXECUTIVES

[4] Ryan Kavanaugh, CEO of Relativity Media

[5] Tucker Tooley, President and Chairman of Relativity Media

[6] Robbie Brenner, President of Production of Relativity Studios

FINANCIALS

Relativity ranks 9th in overall film distributor companies, owning 2.5% of the total market share as of April 12, 2015. The company’s total gross is $73.6 million with 4 films released thus far in 2015 [7]. Relativity has improved in market share from the previous year, ranking 9th with 1.8% market share and grossing $186.5 million with its 8 films that were released in 2014 [8]. Relativity saw a 22.7% decrease in gross between 2013 and 2014 due in large part to the lack of success of the McG action flick Three Days to Kill [9].

IN THEATERS

“Desert Dancer” (2015)

[10] “Desert Dancer” is biographical drama based on the cultural repression of Afshin Ghaffarian, an Iranian dancer.

The biographical story depicts the life of Afshin Ghaffarian, a dancer who fled Iran in 2009 due to cultural repression. The film originally debuted at the Cannes Film Festival in Cannes, France in May of 2012. In 2013, the distribution rights were acquired by Relativity at the American Film Market and the film was slated for release in the spring of 2015. In limited release, the film opened on April 10, 2015, in 23 theaters in the US. The film has a current domestic gross of just under $60,000, as of April 16th, 2015 and will move to expanded release on the 17th [11]. Andy Webster of the New York Times says “The fictionalized biopic “Desert Dancer” explores fascinating aspects of present-day Iran but suffers mightily from simplistic and sentimental tendencies” [12].

SPRING 2015 RELEASES

“Black or White” (2015)

Starring Academy Award Winners Kevin Costner and Octavia Spencer, "Black or White" follows a young girl caught in a custody battle, mixed within racial qualms of two seemingly different families.

[13] Starring Academy Award Winners Kevin Costner and Octavia Spencer, “Black or White” follows a young girl caught in a custody battle, mixed within racial qualms of two seemingly different families.

The heart felt drama was released on January 30, 2015, and saw a domestic gross of $21.5 million. In it’s opening weekend, Black or White ranked third among weekend releases, opening in 1,823 theaters, and averaged $3,408 per theater, attributed to 28.9% of the total domestic gross. Against a production budget of $9 million, the film failed to make budget in its first weekend with a $6.2 million weekend gross [14]. The film received mediocre acclaim for it’s simple and overly-stereotypical characters, and failed to live up to the promised look at the diverse world the audience is brought in to. With a 37% rating on the website Rotten Tomatoes (from 83 reviews) [15], and 45 out of 100 rating on Metacritic [16], it appears that the “inspired by true events” drama garnered average reviews at best. Says the critic consensus on Rotten Tomatoes “”Black or White” has more on its mind than your average family drama, but the film’s approach to its thought-provoking themes too often lives down to its title.” [17]

“The Lazarus Effect” (2015)

Released on February 27, 2015, this horror-thriller starring Olivia Wilde, opened at No. 5 on the weekend box office. The Lazarus Effect, opened in 2,666 theaters; the film averaged $3,827 per theater and grossed a weekend total of $10.2 million which made up 40.1% of the total gross [18]. Despite a strong weekend opening against a production budget of $3.3 million, the film’s success was short lived due to poor critic reviews. Critical consensus on the popular website Rotten Tomatoes said “”The Lazarus Effect” has a talented cast and the glimmer of an interesting idea, but wastes it all on insipid characters and dull, recycled plot points” which is no surprise given its 14% rating [19].

UPCOMING

“Masterminds” (2015)

Originally titled Loomis Fargo, and based on the true story of the 1997 Loomis Fargo robbery, in which a vault supervisor for the bank stole $17 million and fled to Mexico, Masterminds is the latest comedy from Napoleon Dynamite director Jared Hess. The film stars Zach Galifianakis, Owen Wilson, Kristen Wiig, Jason Sudeikis, Ken Marino, Kate McKinnon, and Leslie Jones. Eastbound & Down producers Jody Hill and Danny McBride both worked on the script and executive-produced [20].

PROJECTIONS FOR RELATIVITY

With few releases slated for in the first half of 2015 and even fewer in the coming months Relativity is looking at yet another decrease in total gross. Looking forward, it appears that the amount of pressure on such upcoming summer releases as Masterminds, Big Game, and Jane Got a Gun is becoming more apparent. It’ll be interesting to see how the rest of the year pans out for Relativity, heading into a shaky second quarter, after a not so strong first.

SOURCES

[1] Relativity Media Logo Relativity Media Retrieved April 10 2015

[2} Box Office by Studio: Relativity Box Office Mojo Retrieved April 10 2015

[3] The Social Network Movie Poster IMP Awards Retrieved April 10 2015

[4] Ryan Kavanaugh Relativity Media Retrieved April 10 2015

[5] Tucker Tooley Relativity Media Retrieved April 10 2015

[6] Robbie Brenner Relativity Media Retrieved April 11 2015

[7] Studio Market Share: Yearly Comparison Box Office Mojo Retrieved April 11 2015

[8] Studio Market Share: 2014 Box Office Mojo Retrieved April 11 2015

[9] Studio Market Share: 2013 Box Office Mojo Retrieved April 11 2015

[10] Desert Dancer Movie Poster Movie Insider Retrieved April 11 2015

[11] Gross Domestic Box Office Results: Desert Dancer Box Office Mojo Retrieved April 12 2015

[12] Review: Desert Dancer New York Times Retrieved April 12 2015

[13] Black or White Movie Poster Mixed Nation Retrieved April 12 2015

[14] Total Gross Box Office Results: Black or White Box Office Mojo Retrieved April 12 2015

[15] Review: Black or White Rotten Tomatoes Retrieved April 12 2015

[16] Review: Black or White Metacritic Retrieved April 13 2015

[17] Review: Black or White Rotten Tomatoes Retrieved April 13 2015

[18] Total Gross Box Office Results: The Lazarus Effect Box Office Mojo Retrieved April 13 2015

[19] Review: The Lazarus Effect Rotten Tomatoes Retrieved April 13 2015

[20] 2015 Preview: Masterminds Rolling Stones Retrieved April 13 2015

Relativity Media

Posted on November 4, 2013 by Erin Morris

By Erin Morris

Courtesy of Relativity Media

RELATIVITY MEDIA
9242 Beverly Blvd. Suite 300
Beverly Hills, CA 90210
Telephone: 310.724.7700
Website: http://www.relativitymedia.com/

KEY EXECUTIVES

Ryan Kavanaugh, CEO and Founder [1]

[1]

Tucker Tooley, President [1]

[1]

Happy Walters, Co-Chief Operating Officer [1]

[1]

Gregory Shamo, Co-Chief Operating Officer [1]

[1]

HISTORY

Ryan Kavanaugh and Lynwood Spinks, former venture capitalists and business consultants, founded Relativity Media in 2004. The film studio originally began as a middleman agent, making deals with other studios and then arranging financial support with banks. However, in 2009, Relativity acquired Rogue Pictures from Universal, and since has been involved in developing, creating, and distributing films its own films. Over the last decade, the studio has produced, distributed or structured financing for roughly 200 films, earning over $20 billion worldwide and garnering a total of 73 Oscar® nominations for motion pictures such as The Social Network and The Fighter. [1]

FINANCIALS

Relativity Media is not a publically traded company, and as such, specific quarterly information is not available. However, box office and studio market share information is readily accessible.

Relativity ranks 9^th among film distributors for the year with a 2.3% market share as of November 20^th, 2013. The studio also finished 9^th in 2012, but with a 1.9% market share. However, with other studios gearing up for Oscar season and Relativity having just one upcoming release, both the market share and ranking might go down. [2] [3]

The studio has grossed $217,267,120 in 2013 thus far, with $104,312,782 of it earned by its four fall releases: The Family, Don Jon, Romeo and Juliet, and Free Birds. [2] [4] [5] [6] [7]

RECENT RELEASES

Don Jon

[5]

Longtime actor Joseph Gordon-Levitt made his writing and directorial debut with Don Jon, the story of a charming New Jersey man who struggles with finding true intimacy because of his porn addiction. Scarlett Johansson, Julianne Moore, and Tony Danza also starred in the critically acclaimed controversial film. [5]

Don Jon, which was originally produced by Voltage Pictures for $6 million, premiered at the 2013 Sundance Film Festival where Relativity acquired the rights for $4 million. [8]

The film began its theatrical run on September 27th in 2,400 theaters with a $9 million opening weekend. Don Jon went onto gross over $24 million. [5]

Upon first glance, the numbers look astounding for Relativity – a $24 million gross on a $6 million production budget. However, when Relativity acquired the rights to Don Jon at Sundance, the studio pledged to a $27 million marketing budget. [8]

Relativity distribution chief Kyle Davies still maintained that they were pleased with the film’s performance, citing the film’s strong reviews as a success and that the studio wants “to be in the Joseph Gordon-Levitt business.” [8]

Romeo and Juliet

[9]

Relativity also acquired the rights to Romeo and Juliet, little known Italian filmmaker Carlo Carlei’s 2013 adaptation of the Shakespeare classic. Oscar, Emmy, and Golden Globe winner Julian Fellowes, creator of BBC darling Downtown Abbey, wrote the screenplay. Hailee Steinfeld, who rose to fame in 2010 when she received an Oscar nomination at 14 years old for her performance in True Grit, and Douglas Booth portrayed the titular star crossed lovers. Damian Lewis of Homeland fame played Lord Capulet, Stellan Skarsgård acted as Prince of Verona, and Oscar nominee Paul Giamatti portrayed Friar Laurence. [6] [9] [10]

Oddly, given the star power attached to the project, Relativity gave Romeo and Juliet a limited release. It opened in just 461 theaters on October 11^th, 2013 and earned $520,116 during its opening weekend and a mere $1,143,238 to date. [6]

The film received mixed reviews from critics, who called the modern adaption – which kept the traditional Verona setting but not the Shakespearean language – muddled, dull, and dumbed-down. [11]

FUTURE RELEASES

Out of the Furnace

[12]

Relativity’s remaining release for year is Out of the Furnace, a drama starring Christian Bale that will be released December 6^th, 2013. The star-studded cast also includes the likes of Oscar nominees Casey Affleck, Woody Harrelson, Sam Shepard, Willem Dafoe, Oscar winner Forest Whitaker, and Zoe Saldana of Avatar and Star Trek fame. [12]

The film focuses on Bale who plays a blue-collar man that seeks justice when his younger brother – a war veteran that got involved in a dangerous crime ring – disappears and the police fail to search for him. [12]

Directed by the critically acclaimed writer and director of Crazy Heart Scott Cooper, the film has already gained Oscar buzz for Bale, who won the statue back in 2010 for The Fighter, and Affleck, who was nominated once in 2007 for The Assassination of Jesse James by the Coward Robert Ford. [13]

Given the film’s early December release date, falling between the big Thanksgiving and Christmas opening weekends, Out of the Furnace will not directly go up against any other major films and faces little competition at the box office.

A trailer for the film can be viewed here.

IN THE NEWS

From the Theater to the Classroom

[14]

Relativity didn’t appear to believe in Romeo and Juliet enough to advertise heavily or give it a wide release, but the studio did use the film to market their latest venture: the Relativity School.

Relativity will become the first major motion picture studio to invest in forming a school for filmmaking and performing arts. Pending the State of California’s approval, Relativity will begin accepting applications in March of 2014 and class will begin four months later. [14]

On October 4^th, 2013, Relativity previewed Romeo and Juliet at the New York’s All-American High School Film Festival to promote its college. The studio also offered the festival’s young filmmakers – and prospective students – a meet and greet with Relativity President Tucker Tooley. [15]

The school, located in Downtown Los Angeles, will offer degrees in Master of Fine Arts, Bachelor of Science, Bachelor of Fine Arts, and Associate of Fine Arts in fields such as Performing Arts, Entrepreneurship in Media, and Film Production. Relativity has called the school a place where “higher education meets Hollywood” due to industry insiders creating the curriculum and it being located on a working studio lot. [14]

From the Big Screen to the Small Screen

[17]

Relativity has branched out not only into education but also television. On October 6^th, 2013 it was announced that the National Geographic Channel will produce a scripted TV series based on the Relativity film Act of Valor. Act of Valor, a war film about an elite team of US Navy SEALs, garnered the studio over $80 million after its February 2012 release. [16] [17]

CEO Ryan Kavanaugh cited the 2010 Relativity-distributed Nev Shulman documentary Catfish – which later spawned a popular MTV reality series by the same name – as inspiration for the business venture. Production for the Act of Valor series will start in early 2014. It will be the first scripted show for both National Geographic and Relativity. [16]

[19]

Act of Valor isn’t the only Relativity movie that’s being given the TV treatment. It was announced on October 6^th that the Bradley Cooper flick Limitless will have a spin-off series as well. The star-studded thriller brought in over $160 million after it premiered in March 2011. Cooper will serve as an executive producer on the series. [18] [19]

SOURCES

[1] About Relativity Media – Company History and Executive Biographies and Images. RT 11/13/13

[2] Box Office Mojo Relativity Media Results for 2013. RT 11/15/13

[3] Box Office Mojo Relativity Media Results for 2012. RT 11/15/13

[4] The Family Box Office Results. RT 11/15/13

[5] Don Jon Box Office Results. RT 11/15/13

[6] Romeo and Juliet Box Office Results. RT 11/15/13

[7] Free Birds Box Office Results. RT 11/15/13

[8] Hollywood Reporter Article on Don Jon’s Production and Marketing Budgets. RT 11/15/20

[9] Relativity’s About Romeo and Juliet. RT 11/15/20

[10] IMDB for Julian Fellowes. RT 11/15/20

[11] Rotten Tomatoes Reviews of Romeo and Juliet. RT. 11/15/20