UNIVERSAL tentpole franchise kings hiking ahead

ScreenDaily reports on the huge turnaround, after a poor 2014

IN THIS POST: Analysis of how Universal's shifting strategy impacts on WT; an outline of what this strategy is, with key figures; details of how the new horror universe was proposed in 2014, and how its taking shape in 2016; the Battlestar Galactica bid to take on Star Wars.

Working Title's conglomerate parent, NBC-Universal, clearly knew what it was doing in downgrading its subsidiary's relationship to 'first look' status*; NBC-U would have first refusal over any new WT production, but had no obligation to pick it up for distribution or to fund production proposals. WT have to find their own financing now, even if that still often means pre-signing distribution deals with StudioCanal or UIP, all part of the NBC-U (and Comcast) conglomerate. Gone are the days of massive block funding for WT.

*See this post for details on the new deal (and a definition of first look), signed in 2012 and due to run out in 2015; no news yet of any changes

This shift in approach, which may seem surprising given how successful WT have been, reflects a hardening of Universal's commitment to the tentpole strategy, and the franchising that largely underpins this. Anita Elberse, who uses the term 'blockbuster' in her book, would approve: she argues that this is the only viable approach for any major player in any entertainment industry (she also considers football and music among other industries - a very interesting, digestible read, I recommend it).

WT's relationship with NBC-Universal reduced to first look

UPDATE, MARCH 2015: Seems apparent that this has severely dented WT's ambitions; they'll now have to be smarter and try to create hits (it seems) with sub-$20m budgets, a long way from the tentpole level of Green Zone: About Time ($15m), Theory of Everything ($12m) - the Oscar bait strategy of the latter (with top class production values) has worked well.

I might later consolidate several past posts on this, but for now: WT has an ongoing production deal with Universal running to 2015 (the arrangement was due to end in 2013). Signed in April 2012, the new deal sees a significant change which gives WT back some of the freedom they lost when initially hooking up with Hollywood majors back in 1992 (Polygram, who sold out to Universal in 1999), but means they're not so sure of getting distribution for WT productions in future:

Universal Pictures has re-upped Working Title Films partners Tim Bevan and Eric Fellner through 2015. This comes after the studio re-upped Imagine Entertainment in January, keeping the studio’s most tenured production companies in the fold. Like Universal chairman Adam Fogelson and co-chairman Donna Langley did with Imagine, Working Title’s deal has been scaled back; instead of exclusive, it is now a first-look deal. The Working Title pact was due to expire next year. Working Title’s films at the studio have grossed $4.25 billion since they began with Universal in 1999, and Bevan and Fellner bring a British sensibility and a supply of prestige to the studio. [emphasis added]