NEW YORK (Hollywood Reporter) - It’s a wrap for New Line
Cinema.
The struggling studio behind the blockbuster “Lord of the
Rings” trilogy, will be absorbed into Warner Bros. Pictures,
their Time Warner Inc parent said Thursday.
The cost-cutting move will lead to the layoffs of an
undetermined number of New Line’s 600 staffers. The first two
heads to roll belonged to New Line co-chairmen and co-CEOs Bob
Shaye and Michael Lynne.
Shaye, who founded New Line in 1967 as a distribution
company for movies such as “Reefer Madness,” and Shaye made
millions with low-budget John Waters comedies, and the
“Nightmare on Elm Street” and “Austin Powers” franchises.
In recent years, as New Line’s ambitions have grown, it has
taken on more risk. The three “Rings” movies, released between
2001 and 2003, resulted in a box office bonanza. But New Line
hasn’t maintained that momentum. Although it scored two $100
million-plus hits in 2007 with “Hairspray” and “Rush Hour 3,”
most of its lineup failed to ignite, and its costly fantasy
“The Golden Compass,” though a hit abroad, fell flat
domestically.
New Line will remain more than just a production label
within Warners, though. It will retain its own separate
development and production, marketing and distribution
operations. The unit now will report to Warner Bros.
Entertainment chairman and CEO Barry Meyer and president and
COO Alan Horn.
FEWER FILMS
The announcement was made by newly-appointed Time Warner
CEO Jeff Bewkes, who is seeking to shake up the sleepy media
monolith. The company is in the process of reducing the number
of films it distributes from both Warners and New Line, with
Warners reducing its product flow from 25-30 films a year to
18-20. Bewkes said New Line, in turn, must “focus on being an
indie, rather than being halfway to a major.”
Questions also surround the future of Picturehouse, which
released the Oscar-winning movie “La Vie en Rose.” The
specialty film unit, headed by Bob Berney, has been run as a
joint venture between New Line and HBO, another Time Warner
unit. HBO has been reassessing its involvement in Picturehouse.
According to one scenario making the rounds, Picturehouse could
be consolidated with Warners’ specialty unit, Warner
Independent. Without divulging his plans, Bewkes said, “We are
proud of Picturehouse,” adding that he would find the best
solution for its future. Continued…
