International distributors have full supply chains: Sony
Sony Pictures Releasing MD Stephen Basil-Jones admits that while the company is increasing its involvement with the local industry, “there would have to be a seismic shift” for it to change its purpose: to release Sony’s US productions.
What’s stopping Sony from making local films instead of just distributing them? What incentives are necessary to take that step?
It’s not just Sony; it’s most of the MPDAA studios. Our primary reason for being is to distribute and market films that are produced by our respective studios. We are their international local distribution office.
There would have to be a seismic shift in the supply chain and business model to change that principal purpose of business. The requirement and need to bolster the studio slate and offerings does vary from year to year, but for the most, we at SPR have a very full supply chain, which is bolstered by additional films from Sony Classics (Crouching Tiger Hidden Dragon),Screen Gems (Resident Evil 4, Burlesque) as well as CBS films (The Back-up Plan, Faster, Beastly) and the Sony Pictures Worldwide Acquisition Group (District 9) which acquires pics from all the film markets around the world.
What were your strongest performing films of the 2009/2010 financial year?
The Ugly Truth ($12.5m), District 9 ($8.3m), Julie and Julia ($7.3m), Michael Jackson’s
This Is It ($9.5m), 2012 ($20.3m), Cloudy with a Chance of Meatballs ($8.1m) and the small hit Moon ($800,000). These and others made up for a record year at Sony Pictures Releasing Australia.
What titles didn’t necessarily meet their expectations?
Whilst we did wonderfully well with Julie and Julia, we were a little disappointed. The team really felt they had worked the film well enough for a $10 million hit….but what we didn’t count on was Mao’s Last Dancer over-performing and soaking up $16m in the marketplace, which was right on our target audience.
We expected more from The Taking of Pelham 123, but its older/mature male age appeal hindered more upside.
Were there any surprises, positive or negative?
Moon was a lovely surprise, a gem of a small movie that we kept working and working, and for its size it did fabulously well.
Michael Jackson’s This Is It also delivered so well, in only a three week period – way beyond estimates.
How experimental are Sony’s plans in terms of distribution models?
I think it’s “Watch This Space“, not just for Sony but for the industry globally. The business model has changed, as it did for the music industry. Worldwide, home entertainment revenue streams have diminished and we need to look at how we recover that lost money, which was a primary source for film production finance. We also have to listen and react to the threats of piracy and consumers’ new demands on when and how they consume their entertainment.
Are you focusing your promotional efforts across a wider range of platforms?
We have been forced to increase marketing budgets as a result of advertising costs rising significantly over and above the CPI, and promotional efforts have broadened via new digital and online areas.
What was your best campaign of the year?
Michael Jackson’s This Is It was not your normal film and one that came to us quickly and under extraordinarily sad circumstances. The speed with which the studio and team had to bring the campaign together, the way we worked with our other Sony partners (Music/Electronics), the distribution we secured and the execution of the key marketing elements were all first class. It was a fantastic result for a limited season.
With an increasing number of 3D titles already competing for a limited number of screens, do you anticipate a saturation level where there are more films than screens?
That’s happening right now, and it won’t be fixed for at least 12-18 months as the cinemas try and gear up.
Do smaller 3D films – which are now being produced in many countries – have a chance competing for screens with the major blockbusters?
Sure, though it will be tougher given the limited 3D screen availabilities compared to the 2D landscape but with smart strategic planning and hopefully the quality and merit/release timing/audience and counter-programming appeal of the pic, it will find enough screens.
What genres/types of film don’t seem to be working in Australia at the moment?
Horror films continue to struggle relative to the USA . However, of most concern though is the profitability of mid-range films ($2-5 million box office levels) both here and in North America. They are very problematic, and the long term implications for the release viability of this mid-range product are serious. Not only is it theatrically impossible to make money, they’re not selling the quantity of volume on DVD on these titles anymore to make up for the theatrical losses.
While 2009 registered a record box office intake, attendance was down a little. Can ticket premiums compensate for that decrease in attendance, in the long term?
They are compensating at the moment, but in the long run our concern/priority has to be the quantity of visits and the quality of them.
Are audiences losing the meaning of the movie going experience as better home entertainment systems become available?
Clearly not, and I’m sure you’ll hear the same response from my colleagues. The quality is also there at most cinemas; you just can’t replace the magic and experience of sitting in a great new state of the art cinema, with a big screen and perfect digital sight and sound with a like-minded audience. It’s a social event that can’t be replicated at home, despite the wonderful advances of “home theatres”. Consumers’ expectations are higher at the cinema now as a result, and we need to keep ahead of that.
How can the sense of experience balance audience’s need to have things when they want them, where they want them?
The industry is very cognoscente of that and it does relate to the earlier point relating to compressed windows and alternate means of delivering product in a more timely manner and on different platforms, digitally and on-line.
Will the performance of recent local hits increase distributors’ interest in local product?
I’d love to think it gives the private and government funding bodies, as well as filmmakers, some more confidence and comfort but in reality, we all know the ebbs and flows of this biz, and the economic and market realities of local films here.
Sony in the US acquired two Australian films this year (Animal Kingdom. Red Hill). How did the Red Hill deal for Australia happen? Would you have considered that film if Sony US had not acquired it? Funnily enough, we became properly aware of the US deal” after viewing the film locally. That may sound strange but the film was first picked up by our worldwide acquisitions group via Berlin, and the film was not available for Australia/New Zealand at that time.
It was only after [producer] Al Clark and [director] Patrick Hughes had us see the film some time later did we investigate what the Sony rights were domestically. It was comforting to know that the studio felt the same about the pic as we did; a cross between High Plain Drifter and No Country for Old Men… a really well constructed, beautifully shot action/thriller, with a talented young director in charge pus a great cast with a very popular lead, Ryan Kwanten.
Certainly, it gave us comfort to know we were both on board for the same right reasons. It’s one we’re really proud to distribute.
Do you think the proposed Coalition Government $60m fund to promote distributor investment in mid-range films – previously recommended by SPAA with $90m over three years – would work?
It’s a fresh new approach to try and get more commercial sized films produced with the support and partnership of major distributors, and it’s a commendable effort which we all hope will succeed.
Is there any audience knowledge that distributors have that is not reaching local producers/writers/directors?
Distributors have or at least should have a better grasp on the audience appeal and commercial realities of the marketplace for a filmmaker’s pic, and that objective knowledge would/should always be shared with a partnering producer. The knowledge too is often advising them there just ain’t the audience there they think exists for their pic!
Compared to other international divisions, how does Sony Australia compare in terms of distribution/co-production of local projects?
The relative market size and share of local films and productions in foreign markets historically (Japan, Germany, France, Brazil, Mexico, Spain, etc) means we’ll never be of the same scale.
What are the main mistakes that Australian producers make when they approach a distributor?
My involvement and hence perspective is more limited to perhaps someone more active like Joel Pearlman (Roadshow), but from my modest position, I actually think they are getting a whole lot better actually…. more professional and objective in their approach, presentation and understanding.
What should they keep in mind when pitching a project – emphasis on the business side instead of just the storyline, perhaps?
Both, but with a greater bias to storyline and its audience appeal; that’s why they exist in the first place. The distrib\utor has to have the larger commercial expertise and distribution savviness . Whilst every film doesn’t have to be potentially huge at the box office, and they won’t be, you have to be smart as to the relative risks/costs up against the expected returns.
What are Australian distributors really looking for in a local film?
Simply put….one that will work here, first and foremost – not necessarily overseas. That it has an engaging story – accepting it’s often difficult to be entirely original and unique – and it has an audience for it. At the end of the day, we look for a film we hope will garner local critic and public support that delivers a profitable result, whether that be theatrically or after some of the other business ancillaries are exploited.
Do you provide feedback when you turn down a local film for distribution?
Nearly always…. and we’re as honest as we can be.
How would you describe Sony’s past experience distribute Australian films?
Good….and proud to be associated with the recent ones we’ve had. Gabriel was a success, The Proposition a fine film, and we can’t wait to release Patrick Hughes’ Red Hill. We’ve got a couple of others in the pipeline too; one I just love…..and if the finance comes through, we’ll be right in the Aussie ball game!