Marvel Mines Own Archives

[Lantern]

NEW YORK -- Gotham-based comic company Marvel Enterprises is exploring a move into film production in an effort to drill deeper into its library of 4,700 comicbook heros and villains and retain equity in the films its characters spawn. It will roll out an ambitious strategic agenda that includes producing its own slate of mid-budget films and direct-to-video productions revolving around some of its less well-known characters, primarily financed by third parties.

 

Avi Arad, prexy-CEO of Marvel Studios, said Marvel has a unique ability to raise financing thanks to the "trump card" of its well-known stable. "It's a sure thing to open and it's strong on DVD," he said of potential Marvel character-based pics.

 

Arad is eyeing films with budgets between $8 million and $50 million, but will leave distribution and blockbuster pics to the studios.

 

He would not reveal which titles Marvel wants to develop but noted that even lesser-known comic brands like "Blade" had developed huge box office followings.

 

The next eight films in Marvel's pipeline are all structured as equity participation deals, including Artisan's April release "The Punisher."

 

The leap into indie filmmaking is part of a broader effort at a resurgent Marvel to secure a greater share of backend profits, particularly for its less-mainstream characters that may be ignored by its studios partners.

 

Marvel has transformed itself from a bankrupt comicbook publisher into a box office and stock market darling thanks to sleeper hits including "Men in Black," "Daredevil" and "Blade," not to mention "Spider-Man," "X-Men" and "The Hulk."

 

In addition to next summer's second helping of "Spider-Man," Fox is due to open "Fantastic Four." However, without a director or final -script, the film may miss its original December 2004 release date.

 

Marvel's core biz is licensing fees from its character library, however, strong theatrical releases also drive its merchandise and publishing businesses.

 

Under threat

 

But Marvel faces increasing competition from fellow licensor DC Comics and other comic companies like Archie Comics Entertainment, which recently inked a deal with Miramax.

 

Last month Marvel hired Universal licensing chief Timothy Rothwell as prexy of its Consumer Products Group to shore up alternative revenue streams and extend the earnings life of its character rights. Rothwell is expected to push Marvel merchandise further into Europe and ink licensing deals in China and Japan, where comics are a $1 billion annual business.

 

O'seas ops

 

Rothwell intends to set up a Marvel-owned overseas operation to handle all licensing of games, publishing, toys and apparel for the explosive Asian markets. Currently, these functions are outsourced to third-party agents.

 

Marvel prexy-CEO Allen has been bullish about TV prospects as well. Marvel is developing TV spinoffs of its core characters, such as the "Spider-Man" project on MTV. Company is also looking into its "Blade" franchise and several other live-action projects.

 

Other films in development include "Iron Man" with New Line and "Submariner" with Universal.

 

 

Source:

Variety.com

Date in print: Mon., Sep. 29, 2003

 

[OldGuy]

Brace your self for the low budget s.hit storm.

[joe_collector]

The end is nigh....

 

Marvel is making a huge mistake trying to "capitalize" on their movie properties after the trend is on the way out. Nothing like closing the barn door after the cow's ran out.

 

Even worse:

 

"The next eight films in Marvel's pipeline are all structured as equity participation deals, including Artisan's April release "The Punisher.""

 

An equity participation deal on The Punisher? That's like handing a hobo a $20 an expecting a return on your investment.

[dam60]

"The next eight films in Marvel's pipeline are all structured as equity participation deals, including Artisan's April release "The Punisher.""

 

An equity participation deal on The Punisher? That's like handing a hobo a $20 an expecting a return on your investment.

 

Flip side - more of an incentive for a movie studio to take a chance with a character as the upfront costs to the licensing co are minimal to non-existant.

 

DAM

[joe_collector]

Flip side - more of an incentive for a movie studio to take a chance with a character as the upfront costs to the licensing co are minimal to non-existant.

 

Sure, but I remember Jemas stating that the best thing about being involved in the movie biz was taking the licensing and merchandising fees and not having to worry about losing your shirt if the movie takes a dump.

 

It seems that Arad is going the other way, seeing past (lost) dollars from Blade and ASM, and trying to "repeat past successes" by investing Marvel dollars in the upcoming projects. Arad seems to like the movie scene and may be listening to the wrong people or drinking too much wine. He missed the boat on their hits and now he's gonna lose his shirt on their misses..

 

As much as I dislike Jemas, the guy does have a head for business, and he was dead-on with his comments. Marvel is NOT a movie studio and trying to insert yourself into such a cut-throat business is economic suicide.

 

There was a great line in Carlito's Way that summed it up, and I paraphrase:

 

"You a movie producer now? You can't learn it at school... you can't have a late start."

[Darthdiesel]

That's like handing a hobo a $20 an expecting a return on your investment.

 

 

these similies get better everytime

[Bugaboo-migration]

I think this move is a sure sign that the comic market crash is upon us.

[Aman619]

It doesnt say anywhere that Marvel is putting up the money for these films. That WOULD be a extreme case of egotism on Arad's part. Theres always the greed that overtakes movie guys that start out with hits: they resent the other guys (the studios in particular) that get the lion's share of the proceeds.

 

So fuirst chance they get, they decide to make th efilms, and own 100% of the profits, instead of 5%. And if they do this with their own money...well, they get stuck owning 100% of [!@#%^&^]. I think this announcement has more to do with th enegotiations for Artisan anyway. It says "We no longer want to buy you. We'll go it alone." trying to get a lower price.