Deep pockets. Flashy logos. High-powered execs.
For a startup indie, what's wrong with this picture?
As USA Films -- the amalgam of Gramercy, October, Polygram and certain properties of Propaganda and Interscope -- approaches its first birthday in April, some of the contours of what looks to be a key player in the indie arena are coming into focus.
Gotham-based chairman Scott Greenstein and L.A.-based president Russell Schwartz, who insist they speak dozens of times a day on the phone or via teleconferencing, hope the world will sit up and take notice of their Oscar contenders ("Being John Malkovich" and "Topsy-Turvy"), their aggressive campaign to straddle both indie and studio worlds with low-to-mid-budgeted pics and, most of all, their taste for material.
But its patriotic stripes notwithstanding, USA is still an enigma.
No one quite knows why Barry Diller was so keen on putting the company together in the first place, or exactly how Greenstein and Schwartz plan on making it soar. Do they want star-driven pictures? Do they want smaller art or festival films -- and, if so, why do they keep going to festivals, bidding conservatively, and ultimately buying little?
Just what is USA's gameplan?
Inasmuch as they have attempted to define themselves, company toppers -- including "Shakespeare in Love" producer Donna Gigliotti, who serves as prexy of production -- have variously said that they want to make a broad spectrum of movies with budgets in the $10 million-$25 million range.
Effects-driven pics are "out"; USA is hunting for smart thrillers, franchisable stories and the occasional superstar vehicle -- provided the superstar in question takes a salary cut.
Indeed, as USA completes the longer-than-expected process of merging the disparate cultures of primarily October and Gramercy, it is making aggressive pushes for big ticket-projects -- although one such project they wanted, the Steven Soderbergh-helmed, Harrison Ford-starring "Traffic," recently went to Fox Searchlight.
Still, the company is betting on "Therese Raquin," an adaptation of the Emile Zola novel set to star Kate Winslet and begin production later this year.
Inherited pics
This year's releases are inherited pics, including the David Twohy-helmed thriller "Pitch Black," which opens wide today; Neil LaBute's whimsical comedy starring Renee Zellwegger, "Nurse Betty," due in theaters in the summer; and Harold Zwart-helmed, Michael Douglas-produced Liv Tyler starrer "One Night at McCool's," slated for a fall release.
Also on this year's slate are Stanley Tucci's "Joe Gould's Secret" and the Geoffrey Wright-directed teen horror flick "Cherry Falls."
In addition, USA has an arrangement with Universal wherein the specialty label has the opportunity to make or distribute projects more suitable to its needs.
One such pic is the restored Hitchcock classic "Rear Window," which USA released Jan. 21 with positive results (the company also plans a summer re-release of a key Gramercy pic, the Coen brothers' "Blood Simple").
Meanwhile, USA is expediently assembling a lean bi-coastal machine (the staff totals 135) geared to handle 15 productions a year and pump as much as $100 million into them. Of this 15, approximately seven will be inhouse, three or four acquisitions, and five or six financed through split-rights deals.
Add to this the revenues of an in-house vid distribution system and built-in international distribution via Good Machine Intl. and you get a formidable presence in the indie world.
New player in town
Though not yet poised to compete with Miramax or New Line, USA has enough going for it to alert indie producers and agents that a major buyer has jumped into the pond.
As studios seek to lay off risk on chancy pics and focus on event films, a void exists in the marketplace for mid-budgeted films supported through aggressive marketing -- and USA Films is all about filling that void.
USA challenges
But despite the positives, the hurdles facing USA are palpable:
- The company is burdened with pics inherited from the old labels that need to be released, causing concern -- even frustration -- over when and how the pics will reach the marketplace. By the end of the year, USA is likely to have released all the remaining pics, though the company is still jostling for dates.
- The future of the company is unclear. Sources close to the original negotiations say Diller was allowed to pick up Gramercy and October for a song because U needed the cash. And U chairman Edgar Bronfman was willing to give Diller first crack at buying Universal Studios overall. While that scenario may never come to pass, it certainly has fueled the rumor mill.
- Questions remain about the relationship between Greenstein and Schwartz. Once rumored to be contentious, the pair appears to have moved beyond their differences and grown respectful of each other's strengths.
- The addition of Gigliotti late last fall caused insiders to wonder whether her indie style will mesh with the rest of the company. She has a clause in her contract allowing her to divert into a production deal at the end of the first year.
- USA has yet to replenish its production and development staff. Last summer, most of the junior execs were given pinkslips; it's unclear whether USA wants to replace them.
- The new company has nothing in production. USA execs hope all that will change in the coming months, with several projects awaiting a greenlight.
The Jodie Foster-helmed "Flora Plum," starring Russell Crowe and Claire Danes, is slated to start principal photography in late spring, with a budget upwards of $30 million. The Steve Golin-produced "The Match" and the Michael London-produced "Passengers" (under consideration with helmer David Fincher), are said to be in active development.
- USA's first attempts at big-ticket material have suffered. Albert Brooks' "The Muse" and Ang Lee's "Ride with the Devil" were box office disappointments, despite such stars as Sharon Stone, Jeff Bridges and singer Jewel. While the results may raise USA's doubts about the commercial feasibility of mid-sized pics, company insiders stress "Muse" will end up recouping some of its losses through video and DVD rentals, and lively airline business.
- The industry is unsure how committed USA Films is to acquisitions. While top execs, including Gigliotti, are active on the acquisitions circuit in the U.S. and abroad, the company hasn't exactly been an aggressive acquirer. (USA did, however, scoop up U.S. rights to Cannes Palme d'Or winner "Rosetta" from Belgian filmmaking brothers Luc and Jean-Pierre Dardenne, as well as worldwide rights to tyro writer-director Attica Locke's thriller "59.") At this year's Sundance, however, the company bid conservatively on "Girlfight" and "Saving Grace."
Either you believe USA's company line that there was nothing exciting enough to justify the prices or the doubters who wonder if their total pass on Sundance product bespeaks indecision born of disunity or a lack of clear goals.
Cautious bids
Despite such concerns, insiders insist any company that wants to be taken seriously needs time to develop: "Look how long it took DreamWorks to get up and running," said one exec.
Other observers feel USA's strengths are equal to, if not greater than, its drawbacks.
Like most studios, USA has a recognized vid distribution company that is a wholly owned part of the company. With shorter theatrical windows for pics of all sizes, the indie is bolstered by the fact that its vid division can create a longer life for each pic and can produce considerable revenue sharing.
Whatever detractors say, Diller and his chief lieutenants are motoring their enterprise full steam ahead.
The company is aggressively buying book properties (including screen rights to Presidential candidate John McCain's bestselling memoir, "Faith of My Fathers"); sending acquisition execs overseas to scout and acquire pics; and closing talent deals. The greenlight has been used judiciously, though the company has dozens of projects in active development.
Talent deals
In addition, the company remains committed to talent deals with Douglas, LaBute, London, Tucci (who recently renewed his deal), the Paite Brothers, Broadway producer Ariel Tepper, Sean Penn, Jonathan Demme, Forest Whitaker and Steve Golin.
The Golin connection is an important one, given Golin's current golden boy status because of "Malkovich," as well as his talent relationships dating back to co-founding Propaganda, the launching pad for directing talents such as Fincher, Simon West and Michael Bay. Upcoming possibilities include a pic with "Topsy-Turvy" director Mike Leigh and one with "The Three Seasons" helmer Tony Bui.
In addition, USA will team with Interscope (which had a pact with Polygram prior to the buyout) on several productions, including "Casca," "R.V.," "Truck 44," "Earl Watt" and "Door Men." Under a similar arrangement, certain Propaganda projects are also in development at USA.
Still, while their list of films and talent relationships is impressive, the industry awaits a stronger statement of purpose from USA toppers.
Alternative voice
Greenstein and Schwartz have made it clear that they wish USA to straddle the worlds of indie and studio filmmaking and make "quality" pictures for a price. But it remains uncertain how their alternative voice will give USA a distinctive identity.
"They have the ability to be a real alternative to New Line and Miramax," said UTA agent David Kanter, who has worked closely with both Greenstein and Schwartz over the years and feels that the enterprise is moving along at a healthy pace.
"My sense is that they really want to make movies for the upper part of a wide audience," Kanter added. "But above all they want to make quality movies at a price and create a healthy alternative to the studios."
"It's too soon to say how it will all work," said Golin, who produced "Being John Malkovich" and has several projects in development at USA. "But they have done a tremendous job with 'Malkovich.' I think the movie would have gotten lost at a studio."
Allison Segan, Douglas' producing partner at Furthur Films, noted: "I'm not sure what the agenda is, but they are incredibly supportive of filmmakers. I think like many people, they are just looking for interesting material."
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