Boxoffice-July.1995

NATIONAL NEWS
DREAM OF $1 BILLION A REALITY
South Korea-based One World Media
Corp. is investing $300 million in
DreamWorks SKC. This, combined with
Microsoft co-founder Paul Allen's recent investment
of $500 million and other investments,
brings Steven Spielberg, Jeffrey
Katzenberg and David Ceffen very close to
their goal of $900 million in outside funding
for their film, television and multimedia entertainment
company. DreamWorks' founding
triumvirate put up $100 million among
them for a 67 percent stake; outside investors
will splita 33 percent stake, with Allen taking
1 8.5 percent and One World 1 0.8 percent.
At press time, DreamWorks was also talking
with Seagram Co. Chief Executive Officer
Edgar Bronfman )r. about an alliance with
MCA/Universal, under which MCA would
have international theatrical distribution
rights to DreamWorks films. Seagram acquired
80 percent of MCA from Matsushita
Electrical Industrial Corp. in April for $5.7
billion. Terms of the DreamWorks/MCA deal
are reportedly nearly finalized.
In a related item, director/producer
Spielberg recently announced at a ceremonial
dinner for the Artists Rights Foundation
that DreamWorks intends to grant its
filmmakers "moral rights" to protect the original
versions of their films after release. Infringements
on these rights would include
colorization, re-editing, technological alterations
or any other changes made post-release.
MUSICAL CHAIRMAN?
Creative Artists Agency Chairman Mike
Ovitz has refuted speculation that he plans
to close a deal with Seagram's Edgar Bronfman
Jr.
to take over Lew Wasserman's position
as MCA chairman. (Wasserman would
then be shifted to a chairman emeritus position).
Rumors still persist, however, based in
part on articles in The New York Times predicting
the move, and on the claims of investment
bankers, analysts and Hollywood
insiders who assert Ovitz is talking to MCA.
Several sources have even outlined points in
the discussions. Reportedly, Ovitz will only
make the move if a DreamWorks SKG/MCA
pact goes through (see above). Ovitz denies
there have been any negotiations, and CAA
maintains that Ovitz is not leaving the
agency.
IT'S A CUTTHROAT INDUSTRY
Carolco's much-publicized financial troubles
continue to spiral downward. The independent
film company began selling off
development assets earlier this year in order
to keep alive "Cutthroat Island," the $80
million Renny Harlin-directed epic pirate
actioner starring Ceena Davis. Now, as part
of an ongoing effort to make cutbacks in staff
and overhead, Caroico has sold its building
at 8800 Sunset Blvd. to real estate investment
company Dolphinshire L.P., the mortgage
holder. Caroico continues to occupy office
space in the building through a lease arrangement
with Dolphinshire. Meanwhile, "Cutthroat,"
intended to be a summer blockbuster
and the company's financial savior, has been
pushed back to a Christmas release because
the May delivery date could not be met for its
originally scheduled July 21 release through
MGM.
Pioneer Electric Corp., which owns 41
percent of Caroico, feared throwing good
money affer bad and announced it would
write off' $90 million in losses from its investment.
This ruled out the possibility of a fiscal
infusion, thereby placing Caroico on the
vergeof bankruptcy and possible liquidation.
OCTOBERFRETS
Lipsky, October Films' founding part-
Jeff
ner and co-managing executive in charge of
marketing and distribution, abruptly resigned
left Lipsky
from thecompany in April. Conflicts between
Lipsky and his partners, Bingham Ray, Amir
Malin and John Schmidt, were reportedly the
reason behind his departure, though Lipsky
would only say he wanted to "pursue other
interests." Sources speculated that October
bought out Lipsky's share for about $1 million.
October's recent releases include "Red
Firecracker, Green Firecracker," "Moving the
Mountain" and "Search and Destroy." October
grabbed headlines earlier this year when
the company sued the Academy of Motion
Picture Arts and Sciences in an unsuccessful
attempt to make eligible its acclaimed film
"The Last Seduction," which was disqualified
because it had been shown on HBO prior to
receiving a Los Angeles theatrical release,
which is prohibited in AMPAS regulations.
Lipsky founded October Films with Ray in
1991.
EXPORTS BRING IN $4.1 BILLION
1994 was a record-setting year for American
international distribution receipts. The
major U.S. film distributors took in nearly
$4.1 bill ion from theatres worldwide, beating
lastyear's record by approximately $700, 000.
Germany proved to be the top export market,
a position held by second-place Japan for the
previous nine years.
MGM AND DANJAQ WIN
INJUNCTION AGAINST HONDA
Metro-Goldwyn-Mayer Inc. and Danjaq
Inc. have won their request for a preliminary
injunction against American Honda Motor
Co., with a federal court in Los Angeles enjoining
Honda from any further broadcasts of
a Civic del Sol commercial. MGM and Danjaq
alleged that the commercial was a "patent
ripoff" of the James Bond character. "The
Court believes that Plaintiffs are likely to
prevail on their copyright claims," said Judge
David V. Kenyon, who ruled that "several
specific aspects of the Honda commercial
appear to have been lifted from the James
Bond films." The court rejected Honda's
claim that the James Bond character is not
sufficiently developed to warrant independent
copyright protection. MGM's 17th installment
of the Bond series, "Goldeneye," is
being cross-promoted with BMW, who designed
the new roadster used in the film as
Bond's "company car." The film stars Pierce
Brosnan and is slated for a Thanksgiving
release.
ONE MAN'S POISON...
while campaigning in Ohio, Sen. Bob
Dole, the Republican presidential front-runner,
publicly admonished Hollywood because
he feels the entertainment industry
"poisons the mindsof our young people." He
further stated on "Meet the Press"; "If I'm the
President of the United States, I'm going to
encourage consumers to. ..not patronize
these movies," in reference specifically to
"Priest," a film that incited furor and boycotts
from the religious right. Although Dole says
he does not believe censorship is the answer,
he believes we should "hold Hollywood accountable
for putting profit ahead of common
decency."
A NEW ALLIANCE
Alliance Communications Corp.,
Canada's largest independent producer, received
shareholder approval for a stock restructuring
plan in an attempt to gain U.S.
investors. The plan involves reclassifying Alliance
common shares into voting and nonvoting
classes, with each common share
being exchanged for one-half of a Class A
voting share and one-half Class B nonvoting
share. All shareholders will retain their current
proportional share of equity and voting
control. Alliance Chairman Robert Lantos
said that limitations would be put on U.S.
control of Alliance so that the company
would remain eligible for film and television
funding support from the Canadian government,
along with regulatory benefits.
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