Universal Film Flops Lead To Loss
Seagram said Wednesday that a succession of box office flops at its Universal Pictures unit will lead to a fiscal second-quarter loss of about $65 million in cash flow for the filmed entertainment division.
The company (VO) also said the film segment could post a "modest" loss for fiscal 1999.
In the year-ago period, filmed entertainment cash flow was a positive $98 million, including proceeds from the USA Networks cable and production company. USA results won't be included in the current-year figure.Universal Pictures is a unit of Universal Studios, Seagram's entertainment arm that includes film, music and theme park enterprises.
In the current quarter, Universal has had two major disappointments. Babe: Pig in the City, the follow-up to the studio's phenomenally successful 1995 hit about a talking pig, has earned less than $9 million in its two weeks in release. The film was budgeted at $100 million.
Meet Joe Black, a supernatural romantic yarn starring Brad Pitt, which cost $90 million, has grossed just over $39 million since its Nov. 15 release.
Other misfires during the year included Primary Colors, Fear and Loathing In Las Vegas, Mercury Rising, Out of Sight and Baseketball.
Edgar Bronfman, Seagram's chairman and chief executive, responded to this string of disasters by snatching greater control of the company's entertainment holdings. Universal Studios Chairman Frank Biondi and Universal Pictures Chairman Casey Silver were given their walking papers within the last month.
Written By David B. Wilkerson