One film-making tradition that does not change

November 7th, 2007 9:26pm

Hollywood_sign Talking of illusory media revenues, there was some gloom at the Media and Money conference about the chances of hedge funds and other investors being able to make decent returns on equity investments in Hollywood films.

One panel was full of warning noises about the returns that will be made by hedge funds that have rushed to Hollywood in the past two or three years. They have mostly placed money into "slate deals" of up to 25 films packaged by studios for outside investors. I have written sceptically about this before.

Chip Seelig of Dune Capital, which has invested in films produced by Fox Filmed Entertainment, was  pessimistic about many equity investors being able to achieve a 20 per cent equity return, which Dune regards as the hurdle rate.

"There is a constant supply of capital coming to the market that takes sub-optimal returns so I think it will continue to be difficult," he said. In other words, Hollywood still suffers from star-struck investors coming to town and having their money taken from them by old hands.

If it’s Halloween, Saw must top the box office

October 29th, 2007 12:15am

Pumpkin_2Some things do not change. It is late October and there are pumpkins and cobwebs on stoops in Brooklyn.

On Saturday night, my New York subway carriage was filled with people in Halloween costumes, including a tall Frankenstein with a bolt through his neck who stood up and roared to general applause.

And, yes, the latest installment of the Saw franchise (in this case, Saw IV) has debuted at the top of the box office chart, once again showing the wisdom of Lionsgate, the studio behind the franchise.

I cannot tell you anything much about the Saw franchise, since I have not seen any of them and do not intend to. I am too squeamish to do anything more scary at Halloween than help my daughter prepare her skeleton costume for trick and treating.

But it is intriguing that Lionsgate, which pioneered the resurgence of the low budget horror franchise aimed at a college student audience, has struck gold once again. Saw IV is estimated to have brought in $32m this weekend, a year after Saw III brought in $33m on its opening weekend.

It does not seem as though there is anything to stop Lionsgate carrying on with Saws V, VI, VII, VIII etc.

Given that Hollywood is beset by volatility and unpredictability ("Nobody knows anything," the screeenwriter William Goldman observed) a low-budget franchise with no stars to demand a slice of the back-end and an impeccable revenue record is something to be envied.

Michael Clayton and the evil corporation

October 22nd, 2007 2:00am

Last night, I went to see Michael Clayton. I do like a thriller in which a lone figure takes on the evil force of the dark corporation and George Clooney, in the title role of the lawyer-fixer who gets an attack of conscience does not disappoint.

It made me think about why corporations and corporate executives are almost always villains in Hollywood films. There is a grand tradition of the sinister corporation reaching back to Soylent Green, a sci-fi tale about a company that makes biscuits out of people. Sorry if I have just given away the plot, but you have had 30 years to see it.

Continue reading "Michael Clayton and the evil corporation"

Do directors dream of endless re-edits?

October 15th, 2007 7:59pm

Bladerunner I’ve always liked Blade Runner, the 1982 Ridley Scott film based on Philip K. Dick’s Do Androids Dream of Electric Sheep? I remember watching with awe in a London cinema the opening pan over a futuristic Los Angeles lit by flares.

But this is ridiculous.

On its 25th anniversary, five versions of Blade Runnder are extant, including the (disappointing, in my opinion) "director’s cut" of a few years ago and the latest one, called the "final cut" (we can only hope). It is playing around the corner from my office at the lovely Ziegfeld cinema.

I suppose it reflects the temptation to endlessly cut, re-cut and remix things that have found a fan base in the hope of getting a bit more out of the franchise. There has never been a Blade Runner 2 so we have been treated to Blade Runners 1.1, 1.2, 1.3 etc instead.

You will soon be able to get the whole lot in high-definition (and a metal case) for a mere $78.

But I prefer the original version, no matter how resentful Scott was that the studio made him attach a voice-over and a happy ending. Sometimes the Philistines are right.

A market lesson for tweeny-boppers

October 11th, 2007 5:01pm

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Column on the Financial Times comment page, October 11th

One must hand it to Hannah Montana. She has not only overcome the handicap of being a fictional character to achieve pop stardom but tickets to her live show have become the most prized and controversial securities since Google’s initial public offering three years ago.

Ms Montana (aka Miley Cyrus, 14-year-old daughter of the country singer Billy Ray Cyrus – he of the achy breaky heart) takes to the stage next week for her US tour. Before a note is sounded, she has caused mayhem among fans, parents, attorneys-general and all others with a stake in live shows.

The rest of this column can be read here. Post comments below.

Living in a material world

September 25th, 2007 5:23pm

Madonna_iiMadonna’s negotiations to ditch her record label Warner Music Group in favour of Live Nation, her tour promotor is further bad news for music labels, which are suffering badly from the decline in CD sales and problems in getting people to pay for downloads.

But it is also of interest because it shows the pressures on flat-tariff pricing for all bands and singers, which is  being played out between the music labels and iTunes. Apple has resisted the push from some music labels to charge more for downloads from popular artists than its flat rate 99c (in the US) per song.

Variable pricing is alive and well for pop concerts. Indeed, the price of admission for Madonna, the Rolling Stones and other classic acts has inflated wildly in the past few years.

Continue reading "Living in a material world"