Smoke Free Movies: Who's Who: Studios

Hollywood studios used to have producers, editors and property masters on staff and held directors, writers and actors under contract, like major league sports teams do their players. Many studios even owned their own national theater chains.

Now major studios are like a cross between property developers and wholesale distributors. Today, Hollywood agents assemble project teams of writers, directors and actors from their client rosters. If a studio “greenlights” a project, it will distribute the finished film, assuring the production financing. It then develops the project to fit into the larger corporate matrix of its parent company’s print, TV and cable franchises.

Who's in charge here?

Studios commit as little of their own money as possible while maintaining maximum control. Studio-developed films depend on outside investors as much as small independent films do. And top directors and actors (who alone may account for $30-$40 million of the film’s cost) work for a deferred amount guaranteed by a share of the movie’s gross box office receipts. To manage cash flow, studios carefully balance expenses, such as advertising, against ticket income over the few short weeks of a movie’s theatrical life. The studios’ real payday comes later — on video and overseas revenue at least twice that from domestic (North American) ticket sales.

How closely do studios manage film productions? They specify the MPAA rating the delivered film should earn. They usually have the right to re-edit the film, before release, for commercial reasons — for length, “clarity,” even to change the ending. They can also replace key personnel on a production — writers, directors, actors. To cut their losses, they can decide to send a disappointing or ill-conceived project “direct to video” to save the costs involved in theatrical distribution and advertising.

Smoking on screen? The buck stops over there.

When shareholders challenged media companies to study the health impacts of on-screen smoking, the companies excused themselves to the U.S. Securities and Exchange Commission (SEC), claiming that their executives have day-to-day charge of movie content, including tobacco content, and such “ordinary business” is off-limits to shareholder questions. At the same time, studios tell the public that smoking content is the purview of “independent” creative talent and they do not interfere out of “respect.” Both statements cannot be true.

The most important thing to know about the major studios is that none stands on its own. All are now part of gigantic, vertically-integrated media conglomerates with other brands and larger concerns. In fact, almost any movie studio, cable channel, TV network, theme park or video chain you can name is now owned by just five companies. The CEOs of these companies are ultimately responsible for what their studios do — and don’t do.

Media Company Policies on Smoking in Movies (as of September, 2008)
COMPANY	Share of 1999-2007 tobacco impressions	Date	Films covered	Policy exceptions	Adds anti-tobacco messaging?	Bars tobacco deals?	Bars brand display?	Markets covered
Time Warner* Read policy	23%	July 2005, revised July 2007	English-language G, PG and PG-13 films produced and/or distributed in US	Youth-rated: “actual historical figure...compelling historical accuracy ... conspicuous anti-smoking reference.” R-rated: “compelling creative reasons.” Ex-US; co-productions; distribution only.	truth® and California spots on all DVDs	TW companies only, not production companies; covered films and DVDs state" No person or entity associated with this film received payment or anything of value, or entered into any agreement, in connection with the depiction of tobacco products.”	No	US only
Sony*	20%	—	—	—	California spots on youth-rated DVDs only	—	—	—
GE* Read policy	18%	April 16, 2007	Films from Universal- owned labels released in U.S. with G, PG and PG-13 ratings	“Importance of incident,” “factual or creative” factor, “difficulty in removing” incident from film. Co-productions; films acquired complete or in post-production; films distributed “on behalf of a third-party producer”	“Tobacco labeling in certain distribution channels...may appear” in “end credits, DVD content and packaging, and marketing materials” — California spots on youth-rated DVDs only	Universal only, not production companies; no certification	Only paid placement	Ambiguous
Disney* Read policy	14%	October 26, 2004	“Disney” labeled (G/PG)	“Creative vision” of directors, actors, etc. who believe smoking depiction is “important.” “Limited circumstances” for Disney brand. Touchstone and Miramax labels (PG-13 and R); produced outside U.S.; distribution only deals.	truth® and California spots on youth-rated DVDs	No	No	US only for “Disney” label; ex-U.S, “seeks to discourage ...where appropriate and practical.”
Viacom*	10%	—	—	—	California spots on youth-rated DVDs only	—	—	—
News Corp.*	8%	Circa 2005	Not public	Not public	California spots on youth-rated DVDs only	Not public	Not public	Not public
Lionsgate	4%	—	—	—	—	—	—	—
Weinstein	<1%	October 2006	DVDs only	None	truth® spots on DVDs	No	No	Unknown
“Indies”	<1%	—	—	—	—	—	—	—
Policy Exceptions : Depending on definitions, the exceptions drawn among productions (co-productions, third-party productions, etc.) could exclude most studio releases from these policies. Markets Covered: US films deliver an estimated two-thirds of their tobacco impressions to non-US audiences. The studios’ involvement in non-US “country films,” overseas, is also increasing. *MPAA members.

The real Hollywood map.

Who owns whom in the U.S. motion picture industry:

THE DISNEY COMPANY
2008 sales: $37.8 billion
CEO: Robert (Bob) Iger
• Walt Disney Studios
2008 sales: $7.3 billion
Chairman: Rich Ross; President: Alan Bergman
Walt Disney Pictures, Touchstone, Miramax, Pixar
Also owns: ABC, ESPN (80%), A&E (37%), 80 TV/radio stations, theme parks.
Studio scorecard | Contact Disney

THE NEWS CORPORATION
2008 sales: $33 billion
CEO: K. Rupert Murdoch
• Fox Filmed Entertainment
2008 sales: $6.7 billion
Co-Chairs: James N. (Jim) Gianopulos, Thomas E. (Tom) Rothman
20th Century Fox, Fox 2000, Fox Searchlight, 20th Century Fox Animation
Also owns: Fox Broadcasting, Fox Cable, Fox Sports Networks, DIRECTV (35%), HarperCollins, The Times of London, New York Post, 35 TV stations in U.S., cable/satellite units on four other continents.
Studio scorecard | Contact News Corp.

SONY CORPORATION
2008 sales: $89.6 billion
CEO: Sir Howard Stringer
• Sony Pictures Entertainment
2008 sales: $8.1 billion
Co-chairs: Michael Lynton and Amy Pascal
Sony Pictures, Sony Classics, Columbia Pictures, Columbia TriStar, MGM (dominant share)
Also owns: Consumer electronics units, PlayStation, music labels.
Studio scorecard | Contact Sony

TIME WARNER
2008 sales: $47 billion
CEO: Jeffrey L. (Jeff) Bewkes
• Warner Bros. Entertainment
2008 sales: $11.4 billion
CEO: Barry M. Meyer
Warner Bros. Pictures, New Line
Also owns: Time, Entertainment Weekly, Times Mirror Magazines, IPC Media (UK), Warner Books, America Online, Time Warner Cable (79%), HBO, UPN (co-owned), The WB TV Network, TNT, CNN, Atlanta Braves, DC Comics, etc.
Studio scorecard | Contact Time Warner

GENERAL ELECTRIC
2008 sales: $182.5 billion
CEO: Jeffrey R. (Jeff) Immelt
• NBC Universal (80%)
2008 sales: $15.4 billion
CEO: Jeff Zucker
Universal Studios (2.1 billion, 2008; Pres: Ron Meyer)
Universal Pictures, Focus Features
Also owns: NBC, Telemundo, Bravo, USA Network, Universal Parks & Resorts. Infrastructure, finance, and industrial interests.
Studio scorecard | Contact General Electric

VIACOM (controlled by National Amusements, Inc.)
2008 sales: $14.6 billion
CEO: Philippe P. Dauman
• Paramount Pictures, Paramount Vantage, MTV Films, Nickelodeon Movies, Marvel (distribution agreement)
2008 sales: $5.8 billion
CEO: Brad Grey
Also owns: MTV Networks: Nickelodeon, Comedy Central, Black Entertainment Television (BET); Famous Music. Broadcasting and publishing interests split off as CBS Corp.
Studio scorecard | Contact Viacom

Three companies independent of the large media conglomerates have a history of developing and distributing high-grossing films:

DREAMWORKS
2008 Sales: (private)
CEO: Stacey Snider
Studio scorecard | Contact DreamWorks

LIONSGATE ENTERTAINMENT
2008 sales: $1.4 Billion
CEO: Jon Feltheimer
Lionsgate Films, Trimark, Artisan, CinemaNow (30%), Roadside Attractions
Studio scorecard | Contact Lionsgate

THE WEINSTEIN COMPANY LLC
2008 box office gross: $150 million (total revenues not public)
Co-Chairs: Bob Weinstein, Harvey Weinstein
The Weinstein Company, Dimension, Genius
Studio scorecard | Contact The Weinstein Company