By Borys Kit and Gregg Goldstein
Bros
In a move that sent ripples of shock around town, Warners
said it is was shuttering both divisions, citing cost savings
and an elimination of redundant operations.
Most of the units' 70 employees are expected to lose their
jobs, including all 43 Picturehouse staffers. WIP president
Polly Cohen said that some of her 27 staffers will remain on
board to shepherd projects to the studio. The 11-year Warners
vet's contract runs for about two more years, and she will stay
within Warners for now, though she's unclear in what capacity.
Some Picturehouse staffers also might remain.
The future of Picturehouse president Bob Berney was unclear
Thursday, but a close associate said the executive is likely to
form his own independent distribution venture, adding, "Bob is
a very resourceful guy." No immediate announcement on his plans
is expected.
OVERHEAD ISSUES
Warner Bros. president and COO Alan Horn said that in the
competitive movie marketplace, which sees upward of 600 movies
released each year, profit margins are tough to eke out, and
that is exacerbated by overhead. Because New Line is part of
Warners, the company is able to handle films across the
spectrum of genres and budgets without overlapping production,
marketing and distribution infrastructures.
"We can't justify a third overhead," Horn said. "It just
doesn't make sense."
When Cohen replaced Mark Gill in May 2006, the plan was to
develop low-budget genre films at WIP. "You can't live on
art-house movies alone," she said.
JUMPING THROUGH HOOPS
"It was similar to what happened at New Line. Warners made
both of them (Cohen and Berney) jump through hoops for weeks,"
says a Berney associate.
"Bob wasn't getting a lot of calls from other studios since
the New Line announcement was made, but he was getting a lot
from people with venture capital," the colleague added. "Now
the call volume is getting really crazy."
Warners will release WIP and Picturehouse movies through
the fall. Titles on the Picturehouse side include historical
drama "Mongol" (June 6), the Abigail Breslin-starring "Kit
Kittredge: An American Girl" (in limited release June 20 and
wide release July 2) and the remake of "The Women" (September
12).
Warner Independent's upcoming releases include Alan Ball's
drama "Towelhead" (Aug, 8) and the Danny Boyle-directed romance
"Slumdog Millionaire" (in limited release starting November 7).
ClooneyPan's LabyrinthMarch of the
PenguinsDavid Gordon GreenKate BeckinsaleSimon Pegg
Reuters/Hollywood Reporter
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