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I executive<br />
I<br />
and<br />
STUDIO<br />
NEWS<br />
by Annlee Ellingson<br />
REPORT REVEALS<br />
WORLDWIDE REVENUES<br />
As the domestic boxoffice broke records<br />
on the home front, worldwide movie distribution<br />
income also grew eight percent to<br />
reach a total of $33.4 billion. According to<br />
a report on international media and entertainment<br />
industries compiled by Schroder<br />
and Wilofsky Cruen Associates, films produced<br />
by the United States garnered nearly<br />
90 percent of worldwide revenue, earning<br />
$29.8 billion compared. European films,<br />
meanwhile, earned $2.25 billion, and<br />
Japanese movies made $1.33 billion. Both<br />
U.S. and European film income grew eight<br />
percent, and Japanese income rose two<br />
percent.<br />
While the single biggest income source<br />
for U.S. distributors was the domestic<br />
home video market, which generated $9.7<br />
billion in revenue, foreign theatrical<br />
rentals ($4.2 billion) topped domestic<br />
exhibition returns ($4 billion) for the fourth<br />
consecutive year. Domestic theatrical<br />
income, meanwhile, culminated at $7.5<br />
billion (see lead story).<br />
ARTISAN IS BULLISH<br />
Artisan Entertainment has named investment<br />
bank Merrill Lynch its lead underwriter<br />
for its initial public offering. The deal allows<br />
as much as 20 percent of the company to be<br />
sold to the public. The fast-growing indie<br />
distributor has been expanding its business<br />
since the smash success of summer sleeper<br />
"The Blair Witch Project," inking overseas<br />
output deals (see Studio News, February)<br />
and building its film and television library.<br />
The company is also looking at moving into<br />
television.<br />
SAMUEL GOLDWYN<br />
REACHES FOR STRATOSPHERE<br />
Stratosphere Entertainment and Samuel<br />
Goldwyn Films are reportedly near an<br />
agreement that would combine the companies'<br />
distribution arms into a single entity.<br />
The independent distributor, which would<br />
be backed by Seven Arts Entertainment parent<br />
CanWest, could launch as soon as the<br />
middle of the month with the expansion of<br />
"Onegin," starring Ralph Fiennes and Liv<br />
Tyler.<br />
Samuel Goldwyn president Meyer<br />
Gottlieb would serve<br />
as CEO of the as-yetunnamed<br />
company,<br />
while Stratosphere<br />
VP production<br />
and acquisitions<br />
Ronna Wallace<br />
Samuel<br />
Goldwyn chief of<br />
marketing and distribution<br />
Jeff Lipsky<br />
would share the pres-<br />
Lipsky idency. The move is<br />
designed to cut down<br />
on prohibitive P&A costs and increase the<br />
clout of both companies.<br />
LEAD STORY: '99 BOXOFFICE<br />
REELS IN RECORD NUMBERS<br />
As predicted, the industry broke boxoffice<br />
records for the eighth year in a row,<br />
grossing nearly $7.5 billion, an eight percent<br />
increase over 1998's unprecedented<br />
$6.95 billion. Admissions also rose to 1 .48<br />
billion admissions, a four-percent increase<br />
over last year's figures. The remaining difference,<br />
of course, was due to higher ticket<br />
prices, which increased an average of eight<br />
percent.<br />
The boxoffice champ, obviously, was<br />
Fox's "Star Wars: Episode I—The Phantom<br />
Menace," which had earned $430 million<br />
by the end of the year. Buena Vista's "The<br />
Sixth Sense" and "Toy Story 2" and New<br />
Line's "Austin Powers: The Spy Who<br />
Shagged Me" also grossed over $200 million<br />
each. A record 17 films released in<br />
1999 crossed the $100 million mark—five<br />
more than in 1998.<br />
With its two $200 million-plus releases,<br />
Disney once again dominated the<br />
market share, garnering 1 7 percent of the<br />
domestic pie in 1999. Warner Bros, came<br />
in second with 14 percent of the market,<br />
and Universal rebounded from ninth<br />
place last year to third in 1999 and a 1 3-<br />
percent market share. Without "Titanic"<br />
in its arsenal, Paramount slid from second<br />
to fourth place, and Fox finished in<br />
fifth.<br />
FILMS4SALE<br />
In an effort to support independent filmmakers,<br />
Films4Auction is sponsoring "The<br />
World's First Film Auction," to be conducted<br />
by the William Doyle Galleries in Los<br />
Angeles on March 3. Sponsored by DeLuxe<br />
Film Labs, lighting equipment rental firm<br />
Cinemills and insurance broker Mesirow<br />
Financial, the auction eliminates much of<br />
the time and money it takes to bring independent<br />
filmmakers and distributors together.<br />
"Films4Auction was designed to be a filmmaker-friendly<br />
enterprise," says managing<br />
partner Ricardo Del Rio. "Our concept is<br />
revolutionary, but we will succeed because<br />
we have the best interests of filmmakers at<br />
heart and because we are responsive to their<br />
needs."<br />
Submissions had to be feature-length and<br />
not attached to a distributor to be considered<br />
for auction. The 20 films that were ultimately<br />
chosen will be screened from February 29<br />
to March 2 for potential buyers before they<br />
go on the block on March 3. For more information,<br />
call (323) 467-4444 or (312) 726-<br />
0110 or logon at Films4Auction.com.<br />
ROTHS CREDITS ROLL<br />
Walt Disney Studios chairman Joe Roth<br />
has left the company, citing plans to return<br />
to independent producing. Peter Schneider,<br />
a 1 5-year Mouse House executive who most<br />
recently headed the animation and theatrical<br />
divisions, will fill Roth's position. Roth's<br />
unnamed production shingle probably won't<br />
hang in Disneyland, and he hasn't yet lined<br />
up financing, but industry insiders predict<br />
he'll attract A-list talent like Julia Roberts<br />
and Bruce Willis and may even be linked<br />
with producer Jerry Bruckheimer.<br />
Roth's departure has led to speculatio<br />
that other management shifts will occu<br />
Schneider has no live-action experience<br />
and Walt Disney Motion Picture Grou<br />
chairman Richard Cook may, for example<br />
take on more responsibility.<br />
Previously a chairman at Fox, Roth als<<br />
stepped down from that position in 1992 t<br />
form Caravan Pictures, an independent filr<br />
division based at Disney.<br />
LAW DOES THE FULL MONTY<br />
Fox Searchlight prexy Lindsay Law ha<br />
exited the company and inked an exclusiv<br />
production deal with Fox. The departur<br />
comes two months after Fox's Tom Rothmar<br />
who founded the specialty division and wa<br />
instrumental in Law's appointment there<br />
was promoted to president of the Fox Filr<br />
Group.<br />
Law's first order of business will be to tur<br />
legit, producing a stage version of his bigge;<br />
cinematic hit, "The Full Monty," the $3.<br />
million indie that grossed $256.4 millio'<br />
worldwide, making it the most profitabl<br />
film of 1997. The production will open<br />
April in San Diego, expanding to two oth«<br />
cities and eventually ending up<br />
Broadway in October. Then Law will pursu<br />
film projects at Fox.<br />
46 boxoffice
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