Disney plans to build major production facility near Santa Clarita

Old news as of October but wanted to pass it on ..
Jean-Luc


Bucking a trend toward 'runaway production,' the company proposes creating a 56-acre complex that would include soundstages and other facilities for film and TV projects.

The Walt Disney Co. said Wednesday that it would build a 56-acre production facility in northern Los Angeles County, casting a ray of light on an otherwise gloomy film economy that has hemorrhaged thousands of jobs in the last decade.

The Burbank company said the proposed Disney/ABC Studios at the Ranch would occupy a corner of the Golden Oak Ranch, a sprawling 890-acre parcel off California 14 that has been the setting of such classic films as "Old Yeller." Plans call for 12 soundstages, production offices, a commissary and other facilities that could be used for film, television, commercial and new media projects.

Hollywood back from the brink Entertainment dealmaking poised for a comeback

What a difference a year makes.

When Variety ran its Dealmakers Impact Report last September, the financial world was on the brink of collapse. This time around, it seems to be on the verge of recovery.

But although dealmaking has slowed down, it has hardly ground to a halt, as shown by the activity chronicled in this report.

Nevertheless, "The volume of deal flow is off," says an entertainment financier, "and several banks have left the market, especially satellites of foreign banks."

One casualty has been the coin available for pre-sales, which over the years has been a major source of funding for indie films. "A chasm has opened up between pre-sales proceeds and film budgets," says this financier.

On a broader level, a dealmaking environment that was once awash in money and easy credit is now seeing its economic underpinnings shrink. Talent that had grown accustomed to lucrative remuneration is finding it more difficult to command the multifigure fees of the recent past.

"Look at the amount of money that came into the film industry from private equity and hedge funds," says Jay Cohen, head of film financing and packaging at the Gersh Agency. "When the stock market crashed and the economy took a hit, they pulled out from the film business and focused more on core investments. That affected the domestic product supply because the studios didn't have all that outside money. It shrank the market."

Talent agencies have been caught in the middle. "The cost structure of the business has decreased, but producers are telling us that the agencies still haven't gotten with the program with respect to their clients," says another financier.

Last year, Variety's Dealmakers issue focused on how agencies -- in the face of the WGA and SAG strikes, de facto and otherwise -- were diversifying into such strike-resistant areas as music, publishing, reality TV and digital. This year their story is not one of diversification but of consolidation.

It now looks like the market will improve, but it won't return to its profligate ways anytime soon. "There was more liquidity from 2004 to 2007 than probably at any other time in the history of our country," says Stephen Prough of investment bank Salem Partners. "In the future, standards will be higher. Investors are demanding a greater return on their money."

But one thing Hollywood has always had going for it -- in both good times and bad -- is its glamour. For years it has attracted outside investors who enjoy rubbing shoulders with showbiz types. And while any investment or acquisition is based on certain financial expectations, companies will sometimes pay something extra to make a deal.

"When buyers become desperate to buy something for competitive reasons, it creates a premium in the bidding process," says Mark Patricof, co-founder of Mesa, a merchant bank. "In the entertainment business, that transaction … is more emotional. (There's) a level of passion (that can lead to) an incremental price for the deal."

Patricof believes things are about to pick up. "You're going to see a lot of big deals happen in the next 12 months," he says. "There will be cable deals, … digital deals, and the IPO market will really open up."

And now Comcast is making the game-changing acquisition of 51% of NBC Universal.

Any business recovery, however, will occur against a backdrop of permanent technical change. There is no going back to the predigital era, when physically distributed films drew patrons to theaters and appointment TV viewing lured advertisers into auds' living rooms without challenge or question.

"Traditional media are in a state of dire retrenchment as a prelude to complete collapse," says Bob Garfield in his new book "The Chaos Scenario." He backs this up with shocking examples of shortfalls and fiascos among media companies failing to understand the impact of new technology not just on the means of production and distribution but -- more significantly -- on consumer behavior.

But the good news is that those consumers will always want to be entertained and the creative community will always fill that need. And where there's entertainment, there are deals.

`Princess and the Frog' hops to No. 1 with $25M

Hello all,

Take note towards the end of this article .... With nearly three weeks left in the year, 2009 domestic revenues already have set a new record of $9.79 billion, surpassing the previous high of $9.68 billion in 2007,......... etc



Jean-Luc Martin

By DAVID GERMAIN, AP Movie Writer David Germain,

LOS ANGELES – "The Princess and the Frog" earned a big wet kiss from family audiences as the animated musical leaped to No. 1 with $25 million in its first weekend of nationwide release, according to studio estimates Sunday.

The Disney musical is the studio's first hand-drawn animated tale in five years, a contrast to the computer-animated films that now dominate the cartoon world.

"I've always believed that when you start with great storytelling, then the format aside doesn't mean anything," said Chuck Viane, head of distribution for Disney.

The movie also is a return to Disney's reinvention of classic fairy tales, offering a 1920s New Orleans twist on the Brothers Grimm story "The Frog Prince," following the adventures of a young woman turned into a frog by a kiss from an amphibian.

Despite its No. 1 finish, "The Princess and the Frog" drew modest crowds compared to many big animated tales, which can open with two or three times as much business. Those films typically open during the busy summer season, though, and Disney is counting on the long shelf life that many films manage during the holidays.

"The Princess and the Frog" took over at No. 1 from the inspiring sports tale "The Blind Side," which slipped to second-place with $15.5 million. Released by Warner Bros., "The Blind Side" raised its total to $150.2 million.

A surprise box-office sensation, "The Blind Side" is on its way to a domestic total of about $230 million, said Dan Fellman, Warner Bros. head of distribution.

"The Blind Side" chronicles the real-life story of Baltimore Ravens rookie lineman Michael Oher, who had been a homeless teen taken in by a wealthy couple (Sandra Bullock and Tim McGraw).

"It's the heartland that's pulling the strings of the movie," Fellman said. "While it's performing well everywhere, the response in smaller marketplaces and Christian communities has been outstanding."

The film opened the same weekend as "The Twilight Saga: New Moon," but with only a fraction of that movie's blockbuster business. Audience word-of-mouth has kept crowds coming for "The Blind Side," while "New Moon" has waned to the No. 4 spot with an $8 million weekend, raising its domestic haul to $267.4 million.

Warner Bros. also had the No. 3 film with a $9.1 million debut for another inspirational sports drama, Clint Eastwood's Nelson Mandela saga "Invictus," featuring Morgan Freeman and Matt Damon. Freeman stars as the South African leader, who uses an underdog World Cup run by the country's rugby team to help unite the racially divided nation.

Though it had a modest start, "Invictus" debuted in the range of Eastwood's sober drama's "Mystic River" and "Million Dollar Baby" in their first weekends of wide release. Eastwood's films draw older audiences and tend to have a long life at the box office, Fellman said.

"The Lord of the Rings" creator Peter Jackson had a strong opening in limited release for "The Lovely Bones," which pulled in $116,000 in three theaters.

The Paramount Pictures release features Saoirse Ronan, Mark Wahlberg, Rachel Weisz and Stanley Tucci in an adaptation of Alice Sebold's best-seller about a murdered girl looking back on her grieving family from the afterlife.

The Weinstein Co. drama "A Single Man" also started well with $216,328 in nine theaters. The film stars Colin Firth as a gay academic in the early 1960s who's planning to end his life amid grief over his lover's death.

Hollywood is poised for a big finish to its record box-office year, with James Cameron's science-fiction epic "Avatar" opening Friday, followed Christmas week by the family comedy "Alvin and the Chipmunks: The Squeakquel," Robert Downey Jr.'s action tale "Sherlock Holmes" and the nationwide expansion of George Clooney's comedy "Up in the Air."

With nearly three weeks left in the year, 2009 domestic revenues already have set a new record of $9.79 billion, surpassing the previous high of $9.68 billion in 2007, according to Paul Dergarabedian, Hollywood.com box-office analyst.

Domestic grosses should top $10 billion for the first time within the next 10 days or so. Dergarabedian estimates that Hollywood will finish the year with $10.5 billion domestically.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Final figures will be released Monday.

1. "The Princess and the Frog," $25 million.

2. "The Blind Side," $15.5 million.

3. "Invictus," $9.1 million.

4. "The Twilight Saga: New Moon," $8 million.

5. "Disney's a Christmas Carol," $6.9 million.

6. "Brothers," $5 million.

7. "2012," $4.4 million.

8. "Old Dogs," $4.39 million.

9. "Armored," $3.5 million.

10. "Ninja Assassin," $2.7 million.

Hollywood back from the brink

Entertainment dealmaking poised for a comeback
By PETER CARANICAS

What a difference a year makes.

When Variety ran its Dealmakers Impact Report last September, the financial world was on the brink of collapse. This time around, it seems to be on the verge of recovery.

But although dealmaking has slowed down, it has hardly ground to a halt, as shown by the activity chronicled in this report.

Nevertheless, "The volume of deal flow is off," says an entertainment financier, "and several banks have left the market, especially satellites of foreign banks."

One casualty has been the coin available for pre-sales, which over the years has been a major source of funding for indie films. "A chasm has opened up between pre-sales proceeds and film budgets," says this financier.

On a broader level, a dealmaking environment that was once awash in money and easy credit is now seeing its economic underpinnings shrink. Talent that had grown accustomed to lucrative remuneration is finding it more difficult to command the multifigure fees of the recent past.

"Look at the amount of money that came into the film industry from private equity and hedge funds," says Jay Cohen, head of film financing and packaging at the Gersh Agency. "When the stock market crashed and the economy took a hit, they pulled out from the film business and focused more on core investments. That affected the domestic product supply because the studios didn't have all that outside money. It shrank the market."

Talent agencies have been caught in the middle. "The cost structure of the business has decreased, but producers are telling us that the agencies still haven't gotten with the program with respect to their clients," says another financier.

Last year, Variety's Dealmakers issue focused on how agencies -- in the face of the WGA and SAG strikes, de facto and otherwise -- were diversifying into such strike-resistant areas as music, publishing, reality TV and digital. This year their story is not one of diversification but of consolidation.

It now looks like the market will improve, but it won't return to its profligate ways anytime soon. "There was more liquidity from 2004 to 2007 than probably at any other time in the history of our country," says Stephen Prough of investment bank Salem Partners. "In the future, standards will be higher. Investors are demanding a greater return on their money."

But one thing Hollywood has always had going for it -- in both good times and bad -- is its glamour. For years it has attracted outside investors who enjoy rubbing shoulders with showbiz types. And while any investment or acquisition is based on certain financial expectations, companies will sometimes pay something extra to make a deal.

"When buyers become desperate to buy something for competitive reasons, it creates a premium in the bidding process," says Mark Patricof, founder of Mesa, a merchant bank. "In the entertainment business, that transaction … is more emotional. (There's) a level of passion (that can lead to) an incremental price for the deal."

Patricof believes things are about to pick up. "You're going to see a lot of big deals happen in the next 12 months," he says. "There will be cable deals, … digital deals, and the IPO market will really open up."

And now Comcast is making the game-changing acquisition of 51% of NBC Universal.

Any business recovery, however, will occur against a backdrop of permanent technical change. There is no going back to the predigital era, when physically distributed films drew patrons to theaters and appointment TV viewing lured advertisers into auds' living rooms without challenge or question.

"Traditional media are in a state of dire retrenchment as a prelude to complete collapse," says Bob Garfield in his new book "The Chaos Scenario." He backs this up with shocking examples of shortfalls and fiascos among media companies failing to understand the impact of new technology not just on the means of production and distribution but -- more significantly -- on consumer behavior.

But the good news is that those consumers will always want to be entertained and the creative community will always fill that need. And where there's entertainment, there are deals.