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Studios

The good guys and the bad guys.

The US Centers for Disease Control and Prevention published an analysis of top-grossing films that reported that the three studios that had implemented policies designed to reduce smoking in their films had cut over 96% of the smoking in their youth-rated films between 2005 and 2010: Time Warner (A in the CDC report), Comcast (B), and Disney (C). The other three studios -- Viacom (D), News Corporation (E), and Sony (F) -- and the Independents (I) showed only 42% drops. Read the CDC report.

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 six 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 June 2011)

COMPANY

Share of 2005-2010 tobacco impressions

Date

Films covered

Policy exceptions

Adds anti-tobacco messaging?

Bars tobacco deals?

Bars brand display?

Markets covered

Comcast*

Read policy

21%

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

2%

March 20, 2012

“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.

California spots on youth-rated DVDs

No

No

US only for “Disney” label; ex-U.S, “seeks to discourage ...where appropriate and practical.”

News Corp.*

8%

California spots on youth-rated DVDs only

Not public

Not public

Not public

Sony*

Read Policy

13%

December 1, 2012

 

Sony Pictures Entertainment films "produced by the company or any wholly-owned film division"

With regard to film acquisitions, co-productions, and films produced and distributed outside of the United States, Sony Pictures Entertainment may have limited influence over the content. In these instances, SPE will discourage depictions of tobacco use where reasonable and practical.

California spots on youth-rated DVDs only

 

SPE does not enter into product placement arrangements to depict of tobacco products. SPE will indicate in the end credits of films with tobacco depictions that no product placement arrangement was made.

No

United States

Time Warner*

Read policy

19%

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.

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

Viacom*

Read policy

18%

January 1, 2013

California spots on youth-rated DVDs only

“Indies”

18%

Weinstein used truth® spots 2007-9

*Motion Picture Association of America member companies.
All companies' top-grossing films delivered 110 billion tobacco impressions to US theater audiences and 330 billion (est.) worldwide, 2005-10.

The real Hollywood map.

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

COMCAST CORPORATION
2010 sales: $37.9 billion
CEO: Brian Roberts
NBC Universal (51% share)
2010 sales: $16.9 billion (inc. non-studio revenue)
Chief executive: Steve Burke
Universal Studios
President & COO: Ron Meyers
Universal, Focus Features
Comcast also owns: E! Entertainment Television, Golf Channel, VERSUS, G4, Philadelphia Flyers (hockey) and 76ers (basketball), interests in Internet and VoD services, and cable access for more than 26 million households. General Electric retains 49% share of NBC Universal.
Studio scorecard | Contact Comcast

THE WALT DISNEY COMPANY
2010 sales: $38.1 billion

CEO: Robert (Bob) Iger
Walt Disney Studios
2010 sales: $6.7 billion

Chairman: Alan Horn; President: Alan Bergman

Walt Disney Pictures, Marvel, P
ixar, Touchstone, Buena Vista
Also owns: ABC, ESPN, Disney Channel, A&E, 40+ TV/radio stations, a cruise line, theme parks worldwide.

Studio scorecard | Contact Disney

NEWS CORPORATION
2010 sales: $32.8 billion
CEO: K. Rupert Murdoch
Fox Filmed Entertainment
2010 sales: $7.6 billion
Co-Chairs: James N. Gianopulos, Thomas E. Rothman
20th Century Fox, Fox 2000, Fox Atomic, Fox Searchlight, 20th Century Fox Animation
Also owns: Fox Broadcasting, Fox Sports Networks, DIRECTV (35%), HarperCollins, The Times of London, New York Post, 35 TV stations in U.S., cable/satellite units on five continents.
Studio scorecard | Contact News Corp.

SONY CORPORATION OF AMERICA
2010 sales: $86.7 billion
CEO: Michael Lynton
Sony Pictures Entertainment
2010 sales: $8.7 billion
Chair and CEO: Michael Lynton
Sony Pictures, Sony Classics, Columbia Pictures, Columbia TriStar, Screen Gems
Also owns: Consumer and professional electronics units, PlayStation, music labels.
Studio scorecard | Contact Sony

TIME WARNER
2010 sales: $26.9 billion
CEO: Jeffrey L. Bewkes
Warner Bros. Entertainment
2009 sales: $11.1 billion
CEO: Barry M. Meyer
Warner Bros.
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

VIACOM (controlled by National Amusements, Inc.)
2009 sales: $13.6 billion
CEO: Philippe P. Dauman
Paramount Pictures, Paramount Classics, Paramount Vantage, MTV Films, Nickelodeon Movies; DreamWorks Animation and Marvel (distribution agreements)
2009 sales: $5.5 billion
CEO: Brad Grey
Also owns: MTV, Nickelodeon, Comedy Central, Black Entertainment Television (BET), Spike. Broadcasting and publishing interests split off as CBS Corp.
Studio scorecard | Contact Viacom

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

DREAMWORKS
2010 sales: $150 million (est.)
Co-chairs: Stacey Snider (CEO), Steven Spielberg
(Note: DreamWorks Animation is a separate company.)
Studio scorecard | Contact DreamWorks

LIONSGATE ENTERTAINMENT
2010 sales: $1.1 billion (films only)
CEO: Jon Feltheimer
Lionsgate Films, Trimark, Artisan, Mandate, Redbus, Roadside Attractions
Also owns: EPIX (share), FearNET (share), Debmar-Mercury (TV distributor). Lionsgate’s TV unit produces 10 cable series, including Mad Men, Weeds, Crash and Nurse Jackie.
Studio scorecard | Contact Lionsgate

THE WEINSTEIN COMPANY
2010 sales: $250 million (est.)
Co-chairs: Bob Weinstein, Harvey Weinstein
The Weinstein Company, Dimension, Genius
Studio scorecard | Contact The Weinstein Company

Updated: March 2013



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