Fox Feels the Pressure From Disney as Film Flops Mount
This report card isn’t going on anyone’s fridge.
Twentieth Century Fox received its first-quarter grades from the Walt Disney Co. last week, and in a public rebuke, the studio’s new corporate parent made it plain that it viewed the first few months as an ominous sign of trouble ahead.
In a sharp reprimand that left staffers at Fox reeling and worried about their already fragile job security, Disney chief executive Bob Iger declared on the company’s Aug. 6 quarterly earnings call that “the Fox studio performance … was well below where it had been and well below where we hoped it would be when we made the acquisition.” Iger’s tone was measured, but his message was clear: Shape up.
“I’ve never seen a public hanging like that,” remarks one prominent Hollywood producer.
Iger was giving voice to simmering frustrations on the part of many Disney insiders. Several people close to the matter say Walt Disney Studios chief creative officer and co-chairman Alan Horn and co-chairman Alan Bergman have been troubled by the poor box office returns and the viability of numerous projects in various stages of development.
Of the first few Fox films that Disney was tasked with distributing this year, only one, “Breakthrough,” released in April, was profitable. The faith-based movie grossed $50 million worldwide on a $14 million budget and was produced by DeVon Franklin — whose overall production deal at Fox dissolved in the merger.
The other Fox movies that Disney released — “X-Men: Dark Phoenix,” the action comedy “Stuber” and “The Art of Racing in the Rain,” which opened this past weekend to just $8.1 million — were flops. Those offerings had the added misfortune of arriving just as Disney was shattering records with blockbusters such as “Avengers: Endgame,” “Aladdin” and “The Lion King.”
Running a company that is seemingly allergic to failure, Iger and chief financial officer Christine McCarthy had to break the news to investors that Disney’s per-share stock price and revenue projections were off. Disney brass pinned much of the failure on Fox’s film division, though a close examination of the company’s quarterly report also revealed that lighter-than-anticipated attendance at Disney’s theme parks was also a drag on earnings.
Still, the Fox numbers were dismal. “Dark Phoenix” was a franchise-chilling failure that contributed to a $170 million write-down, and Fox is mired in seventh place in U.S. market share, behind all its studio rivals.
Looking for quick fixes, Disney has subsequently shuttered much of Fox film’s development slate, intends to shrink its theatrical output and has ordered reboots of beloved Fox library titles for its direct-to-consumer platform, Disney Plus. Rival studio executives estimate that Disney essentially torched at least $50 million worth of development. Watts has weathered the transition as the sole senior leader. Fox Film CEO Stacey Snider left in the first round of layoffs at the studio, and Fox 2000 head Elizabeth Gabler announced a move to Sony Pictures last month.
Fox has several completed films set to be released by Disney through 2020, including “X-Men” installment “New Mutants” and an astronaut drama with Brad Pitt titled “Ad Astra.” Many original scripts and optioned properties have been “paused” from going into production, one studio insider says. Disney is prioritizing making more broadly commercial projects, which includes ongoing work on sequels to James Cameron’s “Avatar” and starry safe bets like the on-screen reunion of Matt Damon and Ben Affleck in the drama “The Last Duel.”
Finished films looking for studio support are struggling, insiders say. Disney largely ignored “Dark Phoenix” after it acquired 20th Century in March, according to sources. The marketing team familiar with the film was laid off, and Disney did not spend as aggressively to promote the release. One insider says that the film’s lone premiere in Los Angeles was done with an eye to controlling cost — a bit of economizing that annoyed the film’s creative team. Other filmmakers seeking reshoots for their projects have been asked to submit rigorous storyboards to justify the additional expenses, another knowledgeable insider says.
Disney is optimistic that handing Fox superhero properties such as “Fantastic Four” and “X-Men” to Marvel Studios president Kevin Feige will improve the quality of these movies, but bumps must be smoothed over in that transition. The studio is unimpressed with “New Mutants,” an “X-Men” spinoff with a haunted-house vibe, and believes it has limited box office potential.
The studio is also grappling with how to fit the very R-rated Deadpool into its PG-13-rated Marvel Cinematic Universe.
The goal is to find a way for the character to move seamlessly between “Avengers” spinoffs and bloody, profane stand-alone adventures.
Fox’s footprint in comic book, family and animation fare is disappearing from the theatrical marketplace and moving onto Disney Plus, set to launch in November. Iger told investors that “reimaginings” of Fox library titles like “Home Alone,” “Night at the Museum,” “Cheaper by the Dozen” and “Diary of a Wimpy Kid” are all being ordered for the digital platform. Fox Family chief Vanessa Morrison is overseeing these projects. While Iger touted a new installment of “Planet of the Apes” on last week’s call with analysts, little progress has been made on sequels to the sci-fi series.
Full Article: Fox Feels the Pressure From Disney as Film Flops Mount
This report card isn’t going on anyone’s fridge.
Twentieth Century Fox received its first-quarter grades from the Walt Disney Co. last week, and in a public rebuke, the studio’s new corporate parent made it plain that it viewed the first few months as an ominous sign of trouble ahead.
In a sharp reprimand that left staffers at Fox reeling and worried about their already fragile job security, Disney chief executive Bob Iger declared on the company’s Aug. 6 quarterly earnings call that “the Fox studio performance … was well below where it had been and well below where we hoped it would be when we made the acquisition.” Iger’s tone was measured, but his message was clear: Shape up.
“I’ve never seen a public hanging like that,” remarks one prominent Hollywood producer.
Iger was giving voice to simmering frustrations on the part of many Disney insiders. Several people close to the matter say Walt Disney Studios chief creative officer and co-chairman Alan Horn and co-chairman Alan Bergman have been troubled by the poor box office returns and the viability of numerous projects in various stages of development.
Of the first few Fox films that Disney was tasked with distributing this year, only one, “Breakthrough,” released in April, was profitable. The faith-based movie grossed $50 million worldwide on a $14 million budget and was produced by DeVon Franklin — whose overall production deal at Fox dissolved in the merger.
The other Fox movies that Disney released — “X-Men: Dark Phoenix,” the action comedy “Stuber” and “The Art of Racing in the Rain,” which opened this past weekend to just $8.1 million — were flops. Those offerings had the added misfortune of arriving just as Disney was shattering records with blockbusters such as “Avengers: Endgame,” “Aladdin” and “The Lion King.”
Running a company that is seemingly allergic to failure, Iger and chief financial officer Christine McCarthy had to break the news to investors that Disney’s per-share stock price and revenue projections were off. Disney brass pinned much of the failure on Fox’s film division, though a close examination of the company’s quarterly report also revealed that lighter-than-anticipated attendance at Disney’s theme parks was also a drag on earnings.
Still, the Fox numbers were dismal. “Dark Phoenix” was a franchise-chilling failure that contributed to a $170 million write-down, and Fox is mired in seventh place in U.S. market share, behind all its studio rivals.
Looking for quick fixes, Disney has subsequently shuttered much of Fox film’s development slate, intends to shrink its theatrical output and has ordered reboots of beloved Fox library titles for its direct-to-consumer platform, Disney Plus. Rival studio executives estimate that Disney essentially torched at least $50 million worth of development. Watts has weathered the transition as the sole senior leader. Fox Film CEO Stacey Snider left in the first round of layoffs at the studio, and Fox 2000 head Elizabeth Gabler announced a move to Sony Pictures last month.
Fox has several completed films set to be released by Disney through 2020, including “X-Men” installment “New Mutants” and an astronaut drama with Brad Pitt titled “Ad Astra.” Many original scripts and optioned properties have been “paused” from going into production, one studio insider says. Disney is prioritizing making more broadly commercial projects, which includes ongoing work on sequels to James Cameron’s “Avatar” and starry safe bets like the on-screen reunion of Matt Damon and Ben Affleck in the drama “The Last Duel.”
Finished films looking for studio support are struggling, insiders say. Disney largely ignored “Dark Phoenix” after it acquired 20th Century in March, according to sources. The marketing team familiar with the film was laid off, and Disney did not spend as aggressively to promote the release. One insider says that the film’s lone premiere in Los Angeles was done with an eye to controlling cost — a bit of economizing that annoyed the film’s creative team. Other filmmakers seeking reshoots for their projects have been asked to submit rigorous storyboards to justify the additional expenses, another knowledgeable insider says.
Disney is optimistic that handing Fox superhero properties such as “Fantastic Four” and “X-Men” to Marvel Studios president Kevin Feige will improve the quality of these movies, but bumps must be smoothed over in that transition. The studio is unimpressed with “New Mutants,” an “X-Men” spinoff with a haunted-house vibe, and believes it has limited box office potential.
The studio is also grappling with how to fit the very R-rated Deadpool into its PG-13-rated Marvel Cinematic Universe.
The goal is to find a way for the character to move seamlessly between “Avengers” spinoffs and bloody, profane stand-alone adventures.
Fox’s footprint in comic book, family and animation fare is disappearing from the theatrical marketplace and moving onto Disney Plus, set to launch in November. Iger told investors that “reimaginings” of Fox library titles like “Home Alone,” “Night at the Museum,” “Cheaper by the Dozen” and “Diary of a Wimpy Kid” are all being ordered for the digital platform. Fox Family chief Vanessa Morrison is overseeing these projects. While Iger touted a new installment of “Planet of the Apes” on last week’s call with analysts, little progress has been made on sequels to the sci-fi series.
Full Article: Fox Feels the Pressure From Disney as Film Flops Mount
Surprised that Devon Franklin movie made a huge profit. I didn’t see any promotion at all for it.
@ new mutants. I really wanted to see that shyt. They can't even D+ or Hulu that shyt? C'monnnnnn
