MGM watch: Will studio be affected by media consolidation?

MGM logo

AT&T Inc.’s pending $85 billion acquisition of Time Warner may kick off a new wave of media consolidations, analysts told Reuters.

So where does that leave Metro-Goldwyn-Mayer, a small fry on the media landscape?

MGM, the home studio of the 007 film series, emerged from bankruptcy in 2010 as a small company. It’s unable to release its own movies and has to cut deals with other studios. It’s also more of a television production company, making shows for cable networks.

Many bigger studios are already parts of conglomerates, including Warner Bros. (Time Warner), Columbia (Sony Corp.), Paramount (Viacom), Universal (Comcast), etc., etc., etc.

With AT&T’s announced purchase of Time Warner, still subject to regulatory review, even more consolidation is expected. Here’s an excerpt of the Reuters story by David Shepardson and Jessica Toonkel:

Media content companies are having an increasingly difficult time as standalone entities, creating an opportunity for telecom, satellite and cable providers to make acquisitions, analysts say.

Media firms face pressure to access distribution as more younger viewers cut their cable cords and watch their favorite shows on mobile devices. Distribution companies, meanwhile, see acquiring content as a way to diversify revenue.

“The industry needs to consolidate,” said Salvatore Muoio, whose firm invests in a number of media companies, including Time Warner. “You have a lot more competition from the likes of Netflix, Amazon and Hulu.”

“Media content companies” include movie and TV studios.

There’s no telling how this will turn out. AT&T doesn’t expect the Time Warner acquisition to be completed until the end of 2017. Also, the purchase is going to be carefully examined by U.S. regulators.

It’s just worth noting the media business is going through new uncertainty. The Bond film series is tied to a small player in MGM. It may be worth watching how the consolidation unfolds.

Craig’s post-007 career looking promising, Vulture says

Daniel Craig and Aston Martin DB5 in a Skyfall publicity sill

Daniel Craig and Aston Martin DB5 in a Skyfall publicity sill

Daniel Craig is setting himself up for a good post-007 career, whenever that may be, the Vulture entertainment news blog says.

The article, by Kevin Lincoln, is more an analysis than a news story. The blog, part of New York magazine, says three projects comprise “a solid triptych of projects that might begin to usher Craig into the next wave of his career, should he decide to give up martinis and gunplay for good.”

The three are Logan Lucky, a heist movie that was in production this fall; Purity, the 20-episode limited TV series on Showtime set for production in 2017; and Kings, a drama about the 1992 Los Angeles riots.

Kings is listed as in development at, with information only available on the professional part of the website. The Deadline: Hollywood entertainment website reported this summer that Craig was in early talks about the project.

Vulture also argues that Craig is benefiting from the rise of comic book-based films.

“With that shift also came an expectation that most major, and even serious, actors would also have their own franchise, making Bond likely less of an albatross for Craig than it might’ve been for his predecessors, who worked in eras when those types of ongoing character obligations weren’t nearly as common,” Lincoln wrote.

Just when Craig’s post-Bond career will start isn’t known. The 48-year-old actor said earlier this month in New York that no decisions have been made about Bond 25, although he said he’d miss the Bond role.

“There’s no conversation going on because genuinely everybody’s just a bit tired,” Craig said at The New Yorker Festival on Oct. 7.

Also, the 007 franchise is in a bit of a hiatus. Metro-Goldwyn-Mayer, which isn’t big enough to release its own films, hasn’t yet struck a deal with another studio to distribute future Bond movies. Sony Pictures has released all four Craig 007 movies but its most recent deal expired with 2015’s SPECTRE.

To read the entire Vulture analysis, CLICK HERE.

MGM watch: Studio’s 2nd remake fares considerably better

MGM logo

The Magnificent Seven, Metro-Goldwyn-Mayer’s second remake this year, fared considerably better in its opening weekend in the U.S. compared with the studio’s “re-imagining” of Ben-Hur.

The western film generated an estimated box office of $35 million, according to Box Office Mojo.

The film was a remake of the 1960 film of the same name released by United Artists. MGM acquired UA in 1981, including its film library. In addition to the 1960 Magnificent Seven (and its sequels) that film library at the time also included the first 12 James Bond films produced by Eon Productions.

Both the 1960 and 2016 Magnificent Seven films, in turn, were based on the 1954 Japanese movie, Seven Samurai.

MGM, which exited bankruptcy in 2010, is trying to demonstrate it’s more than just the 007 film series. MGM these days mostly makes television shows for cable channels while producing a few movies annually.

The studio’s Ben-Hur remake, which was released and co-financed by Paramount, was a big setback for MGM. That movie’s U.S. opening weekend was only $11.2 million, finishing No. 6 that weekend, according to Box Office Mojo. Its total U.S. box office was $26.2 million. The movie generated worldwide box office of $82.6 million against an estimated $100 million production budget.

The new version of The Magnificent Seven was distributed by Sony’s Columbia, which has released the last four Bond films. The post-bankruptcy MGM doesn’t have the resources to release its own movies. As a result, the studio strikes deals with bigger studios to distribute MGM productions.

At this point, MGM doesn’t have a studio partner for Bond 25 after Sony’s most recent two-picture 007 deal expired with SPECTRE.  MGM intends to sell stock to the public within three to five years.

Craig fans start petition for actor to remain 007

Daniel Craig photo opposing Brexit

Daniel Craig photo opposing Brexit

Some Daniel Craig fans have started an ONLINE PETITION AT CHANGE.ORG urging the actor to remain in the role of James Bond.

Here’s part of the text:

Daniel Craig’s portrayal of 007 is one of the best in all times and deserves the to be in top 3.If you are a fan of Daniel Craig and want to see him again as 007 this might be your last chance. Support this petition and share this with as many people you can. Tell Craig how much we love him and we want him back. This petition is certainly not to force him but to tell him how much we love him as 007. Even after all this he chooses not to come back then we honor his decision but we have to give a last shot right?

Craig, 48,hasn’t actually said he’s out as Bond. But Michael G. Wilson, co-boss of Eon Productions, said late last year the actor isn’t under contract for future 007 appearances. Craig has played Bond in four movies, most recently in 2015’s SPECTRE.

Neither Eon nor Metro-Goldwyn-Mayer is under any particularly urgency about Bond 25 right now. Also, MGM has yet to find another studio partner to actually release the movie.

Anyway, if you want to check out the petition, CLICK HERE.

Craig angered MGM chief, Vanity Fair says

Poster for SPECTRE

Poster for SPECTRE

Metro-Goldwyn-Mayer’s top executive was angered last year when SPECTRE star Daniel Craig said he’s rather “slash my wrists” than play James Bond again, Vanity Fair reported.

The disclosure was part of a broader story mostly intended to knock down last weekend’s Radar Online story that the actor is being offered $150 million to do two more 007 films. (The publication says the offer is “is as fictional as Francisco Scaramanga’s third nipple”).

Here’s an excerpt that concerns MGM’s CEO, Gary Barber:

Craig’s “slash my wrists” comment didn’t exactly endear him to MGM’s chief executive and chairman Gary Barber who, Vanity Fair has learned, personally contacted the actor last year to express his frustration in no uncertain terms. (An email to Craig’s publicist was not immediately returned.)

“Gary hit the ceiling when he read the story,” says a source with knowledge of the situation, who declined to be identified because the person was not authorized to speak publicly about the matter. “He called up Daniel to yell at him. He was furious.”

Quick recap: Craig made the mark in an interview with Time Out London. The interview was conducted a few days after the seven-month shoot of SPECTRE was completed but not published until October.

The article was in Q&A format and the “slash my wrists” comment was in response to the 17th of 22 questions. Neverthless, other outlets jumped on the quote, leading with it in their summaries of the interview. Craig fans have been crying foul ever since on social media.

This isn’t the first time something like this has been reported. The New York Post’s Page Six gossip page  said 11 months ago that executives at Sony Pictures, which co-financed SPECTRE with MGM, had told Craig to shut up.

Vanity Fair, though, is considerably higher brow than the tabloid New York Post. The Vanity Fair story also says Craig still is contractually obligated to do another Bond movie. Michael G. Wilson, co-boss of Eon Productions, said last year that Craig is not.

To read the entire Vanity Fair story, CLICK HERE.

About Daniel Craig’s supposed big 007 offer

Daniel Craig in SPECTRE's main titles

Daniel Craig on the verge of a $150 million pay day?

Over the weekend, Radar Online reported that Daniel Craig, the ever-reluctant 007, is being offered $150 million to do two more James Bond films.

Naturally, this generated a lot of discussion among Bond fans.

On one 007 message board, a poster said the equivalent of, “Why are you guys so upset? It’s not your money.”

Here’s one way of thinking about it.

Michael Cimino (figuratively) thought the same thing when he was directing Heaven’s Gate. For sure, it wasn’t his money. It was United Artists’ money.

However, in the end, he spent so much of UA’s money — and his film generated so little box office — it spelled the end of UA as a separate studio. It’s parent company, Transamerica, threw in the towel. MGM bought UA.

Now some argue Cimino’s movie was better than the reviewers thought. And perhaps it was. Nevertheless, Heaven’s Gate doomed UA. MGM bought UA and merged it into its operations.

How many fewer movies were made because UA was no longer an actual studio? There’s no way to know, of course. But likely a decent number.

Leaving that issue aside, MGM absorbing UA still had an impact on the James Bond film series. The UA-Eon relationship was generally a good one. The MGM-Eon relationship, less so. The Heaven’s Gate situation clearly had a major impact on the Bond film series. It’s still being felt to this day.

Here’s another example for old timers.

In the U.S. market, Cleopatra (1963) sold about the same number of movie tickets (actually a little more) than Goldfinger. Cleopatra sold an estimated 67.2 million tickets, according to the Box Office Mojo website. Goldfinger sold 66.3 million

Goldfinger was a big fat success while Cleopatra almost bankrupted 20th Century Fox.

Why? Because Fox spent — squandered — so much money that Cleopatra couldn’t make a dime of profit despite being a popular success. Meanwhile, Goldfinger had a budget that ensured a huge profit.

Fox survived, but only because it’s television division sold a number of TV shows (Voyage to the Bottom of the Sea, 12 O’Clock High and Peyton Place) for the 1964-65 season.

Some fans will argue, “But this is James Bond! How can you say such a thing?”

Well, to cite a John Gardner 007 continuation novel title, “Nobody Lives Forever.”

Albert R. Broccoli, the co-founder of Eon Productions, once said something to the effect that James Bond is bigger than any actor who plays him. It took a while for him to be proven correct, but he eventually was.

If the Radar Oneline story is accurate (and that remains to be seen), the Cubby Broccoli approach is dead, once and for all.

Also, in the U.S. market, Skyfall had a per-day gross of $2.8 million ($304.4 million divided by 109 days of release) while SPECTRE had a per-day gross of $1.3 million ($200 million divided by 154 days of release).

Nothing is easy, or automatic, in the movie business. Just ask those folks who thought Batman v Superman: Dawn of Justice was a cinch to have a billion-dollar global box office.

For a Bond movie, with its leading man getting $75 million, to make a profit, it would have to consist of said actor sitting on a stool doing a dramatic reading of the script — perhaps with ads running on the bottom of the screen.

Then again, it’s not my money. So why get upset?

UPDATE: After this post was published, the blog was asked how would other big actor pay days compare when adjusted for inflation. The INFLATION CALCULATOR of the U.S. Bureau of Labor Statistics is a useful tool for such calculations.

Elizabeth Taylor was paid the then-regal sum of $1 million for 1963’s Cleopatra. That works out to $7.86 million in 2016 dollars. Sean Connery got what was seen as a staggering amount, $1.25 million, to do Diamonds Are Forever in 1971. That works out to be $7.43 million in 2016 dollars.

UPDATE II (7:30 p.m.) A website called Gossip Cop today HAD A POST where its unidentified source (“an individual involved in the James Bond franchise”) says Craig has received no such offer. In effect, Gossip Cop’s anonymous source is ragging on Radar Online’s anonymous sources. Caveat Emptor all around.


Comparing Daily Mail, Radar Online 007 stories

Daniel Craig in SPECTRE's main titles

Daniel Craig in SPECTRE’s main titles

Radar Online story this weekend saying Daniel Craig is being offered a ton of money to return as James Bond is similar a Daily Mail story from May.

Here’s a quick look:

–The Daily Mail said Metro-Goldwyn-Mayer offered Craig 68 million British pounds ($99 million at the time, $90 million at current exchange rates) to do two more James Bond films. The Mail said Craig turned down the offer.

“The sum included endorsements, profit shares, and a role for him working as a co-producer,” according to that story.

–Radar Online said Sony Pictures is offering Craig $150 million to do two more James Bond films.

The entertainment and gossip website quotes a person it didn’t identify as saying, “Daniel’s the key for a seamless, safe transition as far as Sony and Bond bosses are concerned, and they’re prepared to pay a king’s ransom to make it happen.”

According to this story, Sony is ready to announce it has a new deal to distribute Bond films. Its most recent two-picture deal expired with SPECTRE. The Radar Online story doesn’t mention MGM.