Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Time Warner to Release Bigger, Louder, Fewer Movies


Brief scrutiny of today's headlines.

Warner Brothers hopes The Dark Knight will take the studio to the sunny uplands of steady profitability.

The studio, a subsidiary of Time Warner (TWX), plans to release fewer but bigger movies into the crowded market each year, the Wall Street Journal reports.

Earlier this year, Warner closed its 2 art-house labels, Picturehosue and Warner Independent Pictures. The studio now releases 25 to 26 movies a year, but plans to cut production to 20 to 22 films by 2010.

As part of the new strategy, Warner will build future movies around superheroes, some centered on characters from its DC Comics unit, including Batman.

The reason: Superheroes have global appeal.

Last year, Warner films took in $1.4 billion domestically, but $2 billion worldwide.

Superheroes offer seemingly endless links with consumer products and games that can be marketed around the world.

Warner goes head-to-head with Marvel Entertainment (MVL), which scored big with this summer's Iron Man. Marvel's characters include Spider-Man, the X-Men and Daredevil. It markets action figures and games through a deal with Hasbro (HAS).

Warner has adopted Marvel's tactic of releasing a single film for each character and using the sequels to build a multi-character film.

But movie-goers know what they like when they see and it's difficult to anticipate hits. Warner's Speed Racer took in $43.9 million in the United States, but cost as much as $150 to produce. Get Smart reportedly hasn't met expectations.

Warner produces and distributes the Harry Potter films, DVDs and has the world largest film library. It makes TV shows, including ER for NBC, a unit of General Electric (GE) and The New Adventures of Old Christine for CBS (CBS).
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos