Brad-zooks!: Par's 'outsider'
Freston hires management maven to run film operation
Almost simultaneously, he underwent another initiation ritual, receiving lavish gifts and fulsome phone calls as Hollywood denizens lined up to curry favor. In short, it was a typical day for a brand-new production topper (or a Mafia kingpin).
Of course, no one knew where to put the gifts, since Grey doesn't start until March 1 and no decision has been made yet where his office will be.
But that's a minor detail. The big news was that Tom Freston, who's been co-president and co-chief operating officer of Viacom for only seven months, had succeeded in his goal to shake up Par.
Grey's appointment as chairman-CEO of Paramount Motion Pictures Group came as a shock to many in Hollywood, including Par employees and those with deals at the studio. They were surprised because Freston decided to cast against type.
Freston says, "I talked to almost 100 people about this job" and he deliberately appointed, in his words, "an outsider."
For decades, there has been a limited talent pool for the role of studio topper: Whenever a position was vacant, one of the usual suspects stepped in.
But, as Freston says of Grey, "It's positive that he may be an outsider to the studio system. He is an outsider with insider know-how. These skills are transferable, after all. His lack of hands-on experience will be an advantage for him in that he can bring in a new perspective."
Freston himself has that insider-outsider perspective: He was a cable guy -- albeit an extremely successful one -- when he assumed his new duties last June.
As corporate dictates and technological changes have altered studios' methods, the role of topper has similarly changed.
With his new duties as chairman-CEO of Paramount Motion Picture Group, Grey brings years of dealmaking experience (as manager of such clients as Brad Pitt, Jennifer Aniston, Nicolas Cage and Adam Sandler) and fostering TV production (via Brillstein-Grey and Grey TV, which produced such shows as "According to Jim," "Just Shoot Me" and "The Sopranos").
Grey's appointment also underlines the changing role of managers, who have increasingly become enmeshed in production.
Former partner Bernie Brillstein says, "Brad understands talent and understands how to talk with them."
Not everyone in the film biz was dancing in the streets at the announcement, resentful that the new head of a studio has been a limited practitioner in films (including "What Planet Are You From?").
"Has he ever read a screenplay?" asks one prominent producer.
Grey has plenty on his plate in the next several weeks. He'll have to transfer ownership of Brillstein-Grey, with partners Cynthia Pett-Dante and Mark Gurvitz destined to be principal partners.
Subsidiary Brad Grey TV has a hit in "According to Jim," which came about before the shingle signed at 20th. More recent efforts -- including last season's "The Lyon's Den," "Cracking Up" and "Married to the Kellys" -- have proven short-lived. Shingle is currently producing ABC's upcoming John Stamos laffer, which is set to bow this spring.
On the cable front, where Grey produces "The Sopranos" and "Real Time with Bill Maher," HBO execs said they anticipated no changes should Grey exit Brillstein-Grey. For one thing, "The Sopranos" is about to begin production on its final season and at this point operates as a finely-tuned machine.
Grey must also sort out what happens with Plan B, the Warner Bros.-based production shingle he runs with Pitt and Aniston. Formal talks haven't taken place; Plan B projects may end up as Paramount/Warner co-productions. (Warner Bros. will distribute the shingle's "Charlie and the Chocolate Factory" on July 15.)
Freston and Grey are under the gun. Thanks to a series of B.O. underperformers, Par has been the doldrums in terms of generating profits.
Key question yet to be resolved is whether Par expands its tentpole business. It's got two big-budget summer movies coming, with remakes of "War of the Worlds" and "The Longest Yard" and hopes to go ahead with the long-planned "Mission: Impossible 3" for release in 2006.
Despite the studio's box office woes, Viacom chairman-CEO Sumner Redstone and Freston have gone out of their way to stress that the 2005 slate looks promising, singling out "War," "Yard" and Cameron Crowe's "Elizabethtown."
"There is an opportunity now to substantially improve our share," Freston says. "The wind is at our backs. We have some excellent films in the pipeline."
On or before March 1, Grey will formally replace Sherry Lansing as the 10th executive to occupy Paramount's top slot. (Lansing's title is chairman of the Motion Pictures Group.) Grey will have final greenlight authority, with Freston stressing that Grey will have plenty of involvement in film development, marketing and specialty films.
Freston, who's been overseeing Par since June, stresses that Grey will be beefing up the studio's role in niche pics. Paramount Classics, established in 1998, has operated as a relatively low-key studio affiliate compared to Fox Searchlight, Focus Features and Sony Classics and been limited by Par's tight grasp of the purse strings.
In the wake of other studios' successes with "Fahrenheit 9/11," "Garden State" and "Napoleon Dynamite," Freston noted recently that specialty films have the potential for great breakout success.
Par has long adhered to the notion that profitability is far more important than market share, but that philosophy led to missing out on hot projects and the potentially huge profits from tentpoles.
Viacom's entertainment division (led by Par) contributed about $275 million in operating income in 2003 -- just 7.6% of Viacom's operating income of $3.625 billion. And that $275 million figure has remained flat since 2001, a period in which profit growth of other congloms' studio divisions has increased significantly.
No one would comment on the terms and length of Grey's tenure, though he described it as a long-term deal. He and Freston say that the deal, which has been in the talking stages since Thanksgiving, was delayed by decision-making, not deal-making.
Grey says, "I'm not a creature of change. I don't do these things in a cavalier way." Freston adds, "Once his decision was made, we resolved the deal points rather quickly."
Asked why he's doing it, Grey says, "I love movies. I grew up loving the entertainment industry. Plus, Tom is a friend, as is (Viacom co-president) Les Moonves."
Brillstein and others say that Grey has made a lot of money and is ready for a new challenge.
Grey's job will combine elements of Lansing's chairman role, but will also include the filmmaking oversight aspect of Jonathan Dolgen's job as Viacom Entertainment president. However, it will exclude Dolgen's other responsibilities in the entertainment division (Simon & Schuster, theme parks, theaters and international TV).
Grey asserts he'll take time to get to know execs and producers. He stressed that he's impressed by the work of Paramount Pictures co-president Donald De Line, who took over the slot a year ago from John Goldwyn.
"I respect the job Donald De Line has done," Grey notes. "I want to take some time to decide on the best team." (De Line also holds the title of vice chair of the Motion Picture Group.)
But Par's executive corps probably won't stay intact once he begins to get a feel for the studio. After Lansing departs, the top remaining execs will be De Line, Paramount Pictures co-president Tom Jacobson, Paramount Pictures vice chair and Motion Pictures Group COO Rob Friedman and Par Pictures production president Karen Rosenfelt.
Par is likely to become home to more producing deals with top talent. Rumors have started that Sandler, a Grey client, would move from his Sony base. Plan B is expected to relocate to the studio.
Still, the relationship between WB and Par is cordial, all sides emphasize; despite the delicacy of the situation, there's no acrimony, with Alan Horn expressing respect and fondness for Grey.
Par's already got an array of over two dozen producers, led by Scott Rudin and Cruise/Wagner. Signings since Freston came aboard include "Sideways" producer Michael London and music execs Jimmy Iovine and Paul Rosenberg, who are producing "Locked and Loaded" with rap star 50 Cent, directed by Jim Sheridan.
Insiders agree that Nick and MTV will become far more active, autonomous and independent, as Freston has made it clear that he wants Paramount to aim toward younger, hipper audiences. Nick's two recent films, "SpongeBob SquarePants" and "Lemony Snicket's Series of Unfortunate Events," have performed respectably; next up is MTV's "Coach Carter," which opens Jan. 14.
