TLDR;
This video explores the history of Hollywood Pictures, a film production label created by the Walt Disney Company in 1988. It discusses the reasons for its formation, its initial struggles, eventual successes like "The Hand That Rocks the Cradle," "While You Were Sleeping," and "The Sixth Sense," and its eventual decline and disbandment. The video also touches on the broader changes within Disney during the 1990s, including shifts in strategy towards big-budget event films and the impact of executive changes.
- Hollywood Pictures was created to produce films for teen and adult markets, similar to Touchstone Pictures.
- The label experienced mixed success, with some films performing well and others flopping.
- Internal conflicts, market changes, and shifts in Disney's overall strategy contributed to the label's eventual demise.
- Despite its relatively short lifespan, Hollywood Pictures played a significant role in Disney's history and launched the careers of several high-profile individuals.
The Genesis of Hollywood Pictures [0:12]
In December 1988, The Walt Disney Company announced the creation of Hollywood Pictures, a new film production label. This division was Disney's third, joining Walt Disney Pictures and Touchstone Pictures. Touchstone, founded earlier, released films aimed at teen and adult audiences. Hollywood Pictures was intended to produce general appeal films, similar to Touchstone, with low to mid-budgets, expanding Disney's reach beyond family films.
Disney's Evolution and the Need for Expansion [0:43]
Founded in 1923 as Disney Brothers Cartoon Studio, the company initially produced animated shorts. Renamed Walt Disney Productions in 1929, it moved into feature films in the 1930s, producing animated classics before transitioning to live-action in the 1940s and 50s. Early Disney films were distributed by RKO Pictures and United Artists until 1953, when Disney formed Buena Vista, its own distribution company. By the late 1970s, after the death of its founders, Walt Disney Productions faced an identity crisis and declining returns from its family-friendly releases. To broaden its appeal, Disney released films aimed at teens and adults in the early 1980s, but most flopped.
Touchstone's Success and the Rise of Multiplex Theaters [2:02]
In 1984, Disney founded Touchstone Films to release teen and adult-oriented movies, allowing Walt Disney Pictures to focus on family films. Touchstone's first release, "Splash," was a hit. Michael Eisner became CEO in 1984, bringing in Frank Wells as president and Jeffrey Katzenberg as studio chairman. They secured funding through Silver Screen Partners to finance Touchstone's productions. Touchstone's successes, like "Three Men and a Baby," "Good Morning, Vietnam," and "Cocktail," revitalized Disney. The film industry boomed, with new independent companies emerging and multiplex theaters growing in popularity.
Market Dynamics and Internal Conflicts [3:35]
By 1988, film production peaked and began to decline, with several indie studios facing financial troubles. Disney executives saw an opportunity to increase film production to fill the expected void in the growing ecosystem of multiplex theaters. Internally, conflicts arose between executives Ricardo Mestres and David Hoberman at Touchstone. This rivalry, along with the desire to increase film production, led Michael Eisner and Jeffrey Katzenberg to create Hollywood Pictures in late 1988, with Mestres at its head.
The Launch of Hollywood Pictures and Initial Expectations [4:40]
Disney publicly announced Hollywood Pictures in late 1988. The name dated back to Eisner's time at Paramount, where he considered rebranding American International Pictures as Hollywood Pictures. The new label would release low to mid-budget, adult-oriented films unsuitable for Walt Disney Pictures. Disney aimed for Hollywood Pictures to release 12 films per year, distributed through Buena Vista, funded by Silver Screen Partners. Ricardo Mestres received $100 million to duplicate Touchstone's success.
Early Releases and Disappointments [5:47]
Hollywood Pictures' first release was "Arachnophobia" in 1990, a horror-comedy. Despite high expectations, it grossed $53 million on a $25 million budget, failing to meet Disney's blockbuster hopes. Paramount's "Ghost" became a smash hit instead. The next release, "Taking Care of Business," also underperformed. While Disney became the top-grossing studio in 1990 due to Touchstone's "Pretty Woman," concerns arose about the high costs of films like "Dick Tracy."
The Blockbuster Mentality and Increased Competition [7:31]
In January 1991, Jeffrey Katzenberg warned against the "Blockbuster mentality," urging the studio to avoid high-cost, high-risk projects. Despite a disappointing 1990 for Hollywood, 1991 saw increased film releases, driven by growing foreign market revenue. However, this increased competition drove up marketing costs and made securing theater spots more difficult.
1991: A Challenging First Full Year [8:26]
Hollywood Pictures slated four films with recognizable stars for 1991: "Run," "The Marrying Man," "One Good Cop," and "V.I. Warshawski." Disney aimed to attract adult moviegoers and establish a brand known for high-concept, quality films on modest budgets. However, all four films flopped, contributing to an overall 4% drop in ticket sales amidst rising star salaries and soaring budgets.
1992: Breakthrough with "The Hand That Rocks the Cradle" [9:21]
Disney continued with Hollywood Pictures, planning to release 10 films in 1992. "The Hand That Rocks the Cradle," a psychological thriller, became the breakout hit, debuting at number one and staying there for four weeks. It was dethroned by Hollywood Pictures' next release, "Medicine Man." By February 1992, Disney had four films in the top 10. "The Hand That Rocks the Cradle," produced for $12 million, grossed $140 million worldwide.
Mixed Results in 1992 and "Super Mario Brothers" Disaster in 1993 [10:20]
Hollywood Pictures released eight more films in 1992 with mixed results. "Encino Man," starring Brendan Fraser, did well, grossing $40 million on a $7 million budget. "The Distinguished Gentleman," starring Eddie Murphy, grossed $86 million but received negative reviews. Six other films flopped. In 1993, the most prominent release was "Super Mario Brothers," based on the Nintendo video game. With a budget of $45 million, it was a critical and commercial disaster, grossing only $38 million.
1993: Minor Successes with "Son-in-Law," "The Joy Luck Club," and "Tombstone" [12:13]
Most of Hollywood Pictures' other films from 1993 flopped, except for "Son-in-Law." "The Joy Luck Club" received positive reviews and performed moderately, grossing $32 million on a $10 million budget. "Tombstone," co-produced by Synergy, did fairly well but failed to cross $100 million.
1994: Leadership Change and "Quiz Show" [13:11]
1994 was a rough year, with the first three releases bombing. Ricardo Mestres stepped down as head of Hollywood Pictures and became a film producer for Disney. Michael Linton, from Disney's publishing wing, became the new president, promising to produce high-quality mainstream films. "Quiz Show," directed by Robert Redford, performed modestly but earned four Academy Award nominations, including a best picture nomination for Hollywood Pictures.
Turbulent Times at Disney and Uncertain Future for Hollywood Pictures [15:21]
Despite Hollywood Pictures' struggles, Disney soared in 1994, becoming the first studio to earn $1 billion at the box office in a single year. However, Frank Wells died, and Jeffrey Katzenberg left the company, replaced by Joe Roth. It was uncertain if Hollywood Pictures could continue, having produced only one breakout hit in four years. While the division developed "The Santa Clause," Walt Disney Pictures released it, earning $190 million worldwide.
1995: A Breakout Year with Multiple Hits [16:30]
1995 was a breakout year for Hollywood Pictures. "While You Were Sleeping" grossed $182 million worldwide. "Crimson Tide" grossed $157 million. "Dangerous Minds" grossed $179 million and produced a triple platinum soundtrack.
1995: Failures and Leadership Credited for Successes [17:38]
Despite the successes, 1995 also had failures like "Judge Dredd" and "The Scarlet Letter." The successful projects were greenlit under Ricardo Mestres, while Joe Roth was credited for big marketing pushes for films that tested well. "Nixon" was a commercial flop but received four Academy Award nominations, and "Mr. Holland's Opus" achieved both critical and commercial success.
Shift in Strategy and the Blockbuster Mentality [18:51]
During the mid-1990s, Disney shifted its strategy to focus on big-budget, star-driven event films. "101 Dalmatians" (1996) exemplified this strategy, capitalizing on existing intellectual property. Joe Roth predicted event films could generate two to three times the profits of ordinary films. However, this led to the "Blockbuster mentality" that Katzenberg had warned against, with rising star salaries and expensive development deals.
Financial Strain and Leadership Changes [21:07]
Despite star power, Hollywood Pictures suffered flops in 1996, losing an estimated $180 million due to development deals and overhead costs. The studio reduced its workforce, and Michael Linton stepped down, replaced by David Vogel. Disney initiated a plan to scale back film production.
Decline and Consolidation [22:00]
1997 was worse, with only "Gross Point Blank" being a modest success. Joe Roth merged the operations of Hollywood Pictures, Touchstone, and Walt Disney Pictures into Buena Vista Motion Picture Group. Hollywood Pictures cut its production slate, releasing just two to four films per year.
The Unexpected Success of "The Sixth Sense" [22:56]
Hollywood Pictures' next release, "The Sixth Sense" (1999), exceeded all expectations. Director M. Night Shyamalan's script caught David Vogel's eye, and Bruce Willis starred in the film. "The Sixth Sense" grossed $26 million its opening weekend, remaining at number one for five weeks and surpassing $600 million worldwide.
Lost Profits and Irrelevance [24:44]
Despite developing Disney's highest-grossing live-action film, Joe Roth sold the international and domestic rights to "The Sixth Sense" to Spyglass Entertainment to recoup production costs. Disney only received a distribution fee, losing out on the majority of the profits. Hollywood Pictures became increasingly irrelevant, with its next films flopping.
Defunct Status and Theme Park Presence [25:39]
In 2001, Hollywood Pictures released one final film, "Just Visiting," before going defunct. The name lived on in Disney's California Adventure theme park, with a themed land called Hollywood Pictures Backlot.
Brief Revival and Final Demise [26:42]
Hollywood Pictures made a surprising return in 2006 with the horror film "Stay Alive," aiming to become a horror and thriller label. However, "Stay Alive" and subsequent films performed poorly, and Hollywood Pictures was put to rest for good in 2007. Disney simplified its branding, renaming Touchstone Television as ABC Television Studio and Buena Vista Distribution as Walt Disney Studios Motion Pictures.
Legacy and Conclusion [27:33]
Disney acquired companies like 20th Century Fox, Marvel Studios, and Lucasfilm, moving away from the original small to mid-budget films that Hollywood Pictures was known for. Despite its ups and downs, Hollywood Pictures made its mark on the film industry, launching careers and expanding Disney's capabilities.