FEATURE Universal recently lost its international pro-


duction head when London-based Christian Grass stepped down from his post as president of Universal Pictures International productions & acquisitions. The division’s projects have included French hits Heartbreaker and Gains- bourg and multi-territory pick-ups Kick-Ass and Inglourious Basterds. David Kosse, London-based president of


Universal Pictures International, says the deci- sion not to replace Grass does not mark a change in acquisition strategy (the studio recently appointed former Focus Features exec- utive Peter Kujawski as New York-based execu- tive vice-president of worldwide acquisitions). On the local production side, however, there


has been “a subtle shift to be slightly more opportunistic”, Kosse says. The studios’ evolving approaches to interna-


tional production and acquisition may in part be the result of new ownership or new execu- tive regimes. But they also represent an attempt to adapt to a changing marketplace. International industry players suggest some


of the studios may have expanded into interna- tional production and acquisition too quickly, over-reacting to spikes in market shares for local product in volatile territories such as France. Now, with DVD no longer providing a reliable safety net, the studios are pulling back. The studios’ increasing reliance on globally


appealing tentpole films could be another factor. For companies that can take in several billion dollars a year in the international marketplace, returns of $50m or even $100m from interna-


OPINION


Why the US studios are struggling with Asian production. By Liz Shackleton, Asia editor


In a region where film-making is fast and furious, rather than subject to long periods of development and risk analysis, the US method of making films has struggled to take root. There have also been misconceptions


on both sides that resulted in many studio-backed films getting lost in translation. A slam-dunk on paper, Disney’s High


School Musical: China faltered because it used local unknowns, rather than stars, as it was initially believed the High School Musical brand would be enough to carry the film. However, this eventually led to disagreements between the studio and local partner Huayi Brothers on how to market the film and position the actors. With marketing decisions made far too


late in the day, the film performed well below expectations. A common error made by studios is


they often use their in-country distribution people to head their local-language production activities, instead of working with development and production executives. Even though their distribution


n 10 Screen International at the AFM November 3, 2011


people are usually local, they are often more rooted in the US studios’ global distribution culture than Asian production culture. Being a whizz at marketing Hollywood blockbusters, doesn’t guarantee you can recognise a good local- language script. The studios have also made the


mistake of selling themselves to local film industries as having the ability to push local-language productions through their global distribution networks. In practice, this rarely happens because


only a handful of local hits have the ability to travel. However, there are some exceptions.


Fox has had several Asian-language hits by going native. Rather than tap its local distribution


people, the studio is working with seasoned producers and industry insiders in each major East Asian territory including Hong Kong, Korea and Japan. In India, Fox is working with its sister company, Star TV, which after nearly 20 years of producing and distributing


Indian-language content is a de facto Indian company. While Disney may have withdrawn


from making individual films, it is also effectively taking the same route as Fox in India by buying out local studio UTV Software Communications. The deal covers much more than film-making as UTV is also involved in broadcasting and the video games industry. Viacom has also become an Indian producer through its joint venture with Indian broadcaster Network18. Indies such as Lionsgate, Relativity,


Legendary, Hyde Park and The Weinstein Company may not have jumped into local- language film-making, but are working successfully with Asian partners in several areas. They have recognised the key to working


with Asia is to build long-term relationships based around a mutual exchange of talent, financing and distribution capabilities. The West needs to understand what


Asia really needs. It doesn’t need money or empty promises all local films can be distributed globally. It does need some help with making


Disney’s High School Musical: China performed below expectations


global movies — Hollywood still leads the world in universal storytelling and worldwide distribution — but not every Asian film needs to go global. » A longer version of this piece appears on ScreenDaily.com


Fox International Productions’ Korean thriller The Yellow Sea


tional productions and acquisitions may simply not be worth the time and effort. “That’s a great business for a small com-


pany,” suggests former international studio executive Randy Greenberg, now president of entertainment consultancy the Greenberg Group, “but is it the right business for a billion dollar-plus organisation?” The studios’ restructuring moves may also be


designed better to integrate international pro- duction and acquisition activities into increas- ingly global multi-media distribution operations. The success of Warner’s local-language pro-


duction and acquisition business — whose recent hits have included German smash Kokowaah and Spanish action comedy Torrente 4 — can be put down in part to the scope of the studio’s international theatrical, video and TV distribution network and the fact that network is also overseen by international production chief Richard Fox. As Fox puts it, for the studio’s international


production operation to work, “we need to use our infrastructure”. Similar thinking appears to be behind Para-


mount’s decision to unite not just its domestic and theatrical distribution operations but also its global home entertainment, digital licensing and television licensing activities under a new home-media distribution banner. The move, the studio said, “will allow us to


more effectively take advantage of worldwide opportunities, adjust to the changing market- place and propel us forward on a unified, global basis”. n


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