PolyGram Filmed Entertainment
PolyGram Filmed Entertainment (formerly known as Filmworks, Casablanca Records & Filmworks, PolyGram Films and PolyGram Pictures or simply PFE) was a film production company founded in 1975 as an American film studio, which became a European competitor to Hollywood within two decades, but was eventually sold to Seagram Company Ltd. in 1998 and was folded a year later. Among its most successful and well known films were The Deep (1977), Midnight Express (1978), An American Werewolf in London (1981), Flashdance (1983), Four Weddings and a Funeral (1994), Dead Man Walking (1995), The Big Lebowski (1998), Fargo (1996), The Usual Suspects (1995), The Game (1997), Barney's Great Adventure (1998) and Notting Hill (1999).
This article is about the defunct PolyGram Filmed Entertainment whose assets belong to Universal Pictures. For the former record company and Universal Music Group's current film unit, see PolyGram.Formerly
Filmworks (1975–1976)
Casablanca Record & Filmworks (1976–1980)
PolyGram Pictures (1980–1983)
1975
1999
Acquired by Seagram and folded into Universal Pictures; majority of assets were sold to Metro-Goldwyn-Mayer
Some of its North American distribution assets sold to USA Networks
Studio:
Universal Pictures
USA Films
Focus Features
PolyGram Entertainment
Library:
Metro-Goldwyn-Mayer
(pre-April 1996 films with exceptions)
Universal Pictures
(post-March 1996 films with exceptions and some pre-March 1996 films)
- PolyGram (1980–1998)
- Universal Pictures (1998–1999)
Universal Pictures is founded
NBC is founded
Walter Lantz Productions is established
MCA Inc. establishes Revue Studios (later Universal Television)
NBC begins first compatible color broadcasts, preceding other networks by nine years
NBC's first peacock logo debuts
American Cable Systems is founded
NBC broadcasts the first Super Bowl
American Cable Systems rebrands to Comcast
Comcast began trading on the New York Stock Exchange (NYSE)
Universal releases Jaws
PolyGram renames Casablanca Record & Filmworks to PolyGram Pictures
MCA Videocassette‚ Inc. (later Universal Pictures Home Entertainment is established
Universal releases E.T. the Extra-Terrestrial
Walter Lantz Productions' assets are sold to Universal
Telemundo is founded
Universal releases Back to the Future
General Electric buys RCA for $6.4 billion, including NBC and a stake in A&E
NBC relaunches Tempo Television as CNBC
Universal Studios Florida opens
Law & Order premieres on NBC
Sky Television and British Satellite Broadcasting merge to form British Sky Broadcasting
Universal Cartoon Studios (later Universal Animation Studios) is established
Universal releases Jurassic Park
DreamWorks Animation is founded
NBC and Microsoft replace America's Talking with MSNBC
Barry Diller purchases Universal's domestic television assets
Seagram acquires PolyGram Filmed Entertainment
Universal Television is renamed Studios USA Television
PolyGram Filmed Entertainment is folded into Universal Pictures
Universal Studios Florida expands to become Universal Orlando Resort
Law & Order: Special Victims Unit premieres on NBC
Grand opening of Universal Studios Japan
Universal releases The Fast and the Furious
Vivendi purchases Studios USA
NBC acquires Telemundo and Bravo
Studios USA assets are folded into Universal
Focus Features is formed
Comcast acquires AT&T Broadband for $44.5 billion
Universal becomes the first studio with five summer releases breaking the $100 million mark
GE and Vivendi merge NBC and Universal into NBCUniversal
The Office premieres on NBC
Comcast sets up a joint-venture with PBS, Sesame Workshop & HIT Entertainment to form PBS Kids Sprout
Comcast & Time Warner Cable jointly acquire Adelphia Cable assets for $17.6 billion
USA Network begins 13-year streak as #1 cable network in total viewers
Illumination is founded
Universal releases Illumination's first film Despicable Me
Vivendi divested in NBCU; Comcast buys 51% of NBCU from GE, turning it into a limited liability company
NBCUniversal Archives is founded
Universal celebrates its 100th anniversary
NBCUniversal divests its A&E Networks minority stake
Comcast buys GE's remaining 49% of NBCU
Comcast/NBCU assumes full ownership of Sprout
Comcast attempts to acquire Time Warner Cable for $45.2 billion
NBCUniversal reaches a new long-term deal with WWE
NBCU acquires DreamWorks Animation
Sprout relaunches as Universal Kids
Comcast acquires Sky after a heated bidding war with 21st Century Fox
NBCU acquires Cineo Lighting
NBCU launches Peacock
Grand opening of Universal Beijing Resort
The Super Mario Bros. Movie becomes Illumination's highest-grossing film
Overview[edit]
In 1975, Peter Guber formed its own production company FilmWorks, then in 1976, it became Casablanca Records & FilmWorks after a merger with Casablanca Records, which PolyGram got a 50% by 1977, and by 1980, PolyGram took the other 50% stake in the company and renamed the film unit as PolyGram Pictures.
During the late 1980s and early 1990s, PolyGram continued to invest in a diversified film unit with the purchases of individual production companies. In 1995, PolyGram purchased ITC Entertainment for $156 million.
In May 1998, PolyGram was sold to Seagram, which owned Universal Pictures and Universal Music Group (UMG), for $10 billion. Seagram sold off some of PolyGram's assets while mainly acquiring its music division: the ITC Entertainment library was sold to Carlton Communications for £91 million, the pre-March 1996 PFE library was sold to MGM, and PolyGram's US distribution operation was sold to USA Network.
After many of its assets were sold, the remains of PolyGram's film division were folded into Universal Pictures. When the newly formed entertainment division of Seagram faced financial difficulties, it was sold to Vivendi, and MCA became known as Universal Studios, as Seagram ceased to exist.
Vivendi remained the majority owner of the UMG until 2021, when it sold most of its stake. MGM owns the rights to most of the pre-April 1996 library, and the remaining post-March 1996 film and television library is owned by NBCUniversal.
In 2017, Universal Music Group established a film and television division, resurrecting the PolyGram Entertainment name.[1]
History[edit]
FilmWorks, Casablanca Records & FilmWorks and PolyGram Pictures[edit]
In 1975, Peter Guber quit Columbia Pictures to start out FilmWorks with a producing deal. A year later, during the production of The Deep, it was merged with Casablanca Records to form Casablanca Records & FilmWorks.[2] The company would enjoy success with The Deep and Midnight Express. The music company PolyGram (owned by Dutch-based Philips and Germany's Siemens) bought out its share of Casablanca Records & FilmWorks in 1977. Two years later, in 1979, Casablanca Record & Filmworks left Columbia Pictures to join Universal Pictures, and gave Casablanca Records & Filmworks creative control over the pictures.[3] A year later, PolyGram took on its stake of the company and it was renamed to PolyGram Pictures in 1980.[4] PolyGram reserved the finances and Guber would run as CEO. Guber would form a partnership with Barbra Streisand's hairdresser Jon Peters, who co-produced his client's A Star Is Born remake. Peters would produce PolyGram's films, and eventually become a stockholder with Guber.[5] He had intended to work with Boardwalk Records, but he was forced to join PolyGram Pictures instead.[6][7][3]
The first film under the Universal/PolyGram alliance was King of the Mountain (1981), which was a box-office flop. More money-losers followed. Ancillary markets such as home video and pay television were not yet established, and broadcast television networks were paying less for licenses to films. PolyGram's European investors were not happy; they had lost about $80 million on its film division. Not long after, Siemens parted with Philips. Guber and Peters left PolyGram Pictures in 1982, taking their plans for a new Batman movie with them, along with a few other projects. The duo eventually found a home at Warner Bros. A part of their exit proceedings, PolyGram would still own 7.5% of profits from some of its projects, including the 1989 Batman film.[5] Also in 1980, PolyGram launched a syndicated television division, PolyGram Television, to be headed by former Columbia Pictures Television syndication executive Norman Horowitz,[8] both the film and TV units eventually closed down by 1983 after a string of first-run syndication strip flops.[9]
PolyGram Filmed Entertainment[edit]
In the early 1980s, PolyGram Video was launched. PolyGram Video, headed by Michael Kuhn and David Hockman, was created to distribute concert films and feature films acquired from third-parties, as well as long-form music videos; in 1986, a joint venture with Heron Communications, Channel 5 Video began operation.[10] Channel 5 Video later began to obtain the rights to titles from Heron's US children's arm, Hi-Tops Video.[11] Kuhn and Hockman were able to parlay PolyGram Video's success into financing feature films. The first film produced by PolyGram's new film division was P.I. Private Investigations in 1987.[12] During the late 1980s and early 1990s, PolyGram continued to invest in a diversified film unit with the purchases of individual production companies.[13] In 1989, PolyGram launched Manifesto Film Sales to handle the licensing of films outside North America.[14] In 1991, PolyGram's Michael Kuhn became the head of PolyGram Filmed Entertainment,[13] with US$200 million pumped in with the intention of developing a European film studio that could produce and distribute films internationally on a scale to match the major Hollywood studios.
Following the style of its music business, the company produced films through a number of creatively semi-autonomous 'labels', such as Working Title Films in the United Kingdom and Propaganda Films and Interscope Communications in the United States; it also built up its own network of distribution companies.
Film production within PolyGram differed from traditional Hollywood studios, in that power to make ('green light') a film was not centralised in the hands of a small number of executives, but instead was decided by negotiations between producers, management and marketing. Kuhn claimed that "movies sort of green lit themselves."
In 1993, PolyGram purchased the video arm of Virgin Group from General Electric Capital for $5.6 million and remodeled the label as Vision Video Ltd.
PolyGram also built up a sizable film and television library that could be profitable. In 1995, the company purchased ITC Entertainment for $156 million.[15] Through this purchase, PolyGram acquired 350 feature films, several thousand hours of television programming, and gained further access into the television market.[13] That same year, PolyGram Filmed Entertainment acquired a 75% majority stake in British home video distributor Abbey Home Entertainment. In 1997, PFE agreed to purchase the Epic film library, which included a thousand feature films from a variety of companies, from Crédit Lyonnais for $225 million.[16] PolyGram also attempted purchasing MGM[17] and The Samuel Goldwyn Company's library,[18] but to no avail. In July 1998, PolyGram was in talks to sell their stake in Abbey Home Entertainment back to Ian and Anne Miles, letting AHE trade independently again. On December 7, 1997, PolyGram and Warner Bros. reached a deal to co-finance films produced by Castle Rock Entertainment.[19]
PFE's film distribution arm was based in the United Kingdom, and invested heavily in British film making — some credit it with reviving the British film industry in the 1990s. Despite a successful production history, new Philips CEO Cor Boonstra began to draw back Philips' media operations, excepting their stake in PolyGram, in 1997.[20] At the time, Philips was seen as a bloated conglomerate riddled with problems; Boonstra initially denied that PolyGram would be sold.[21] However, by early 1998, Boonstra's attitude had shifted and various bidders began to make themselves known, as Philips began to pursue a manufacturing-only business model.[22] At the same time, PolyGram had been suffering from their own internal issues, chiefly a series of loss-making films and a lack of major pop music hits.[23] In hindsight, analysts have also pointed to another reason for Boonstra's sale of the assets, namely Philips manufacturing blank CDs, as music piracy subsequently impacted the music industry hugely in the years afterwards.[24]
Philips ultimately decided to sell PolyGram to the beverage conglomerate Seagram in 1998 (Seagram had chosen PolyGram over EMI because of PolyGram's better management);[25][26] only interested in PolyGram's music operations, Seagram, which at the time controlled Universal Pictures, looked forward to divesting in PFE. After being dissatisfied with offers to buy the studio (including a joint venture between Canal+ and Artisan Entertainment), Seagram opted to sell off individual assets and folded whatever remained into Universal.[27] In October 1998, Metro-Goldwyn-Mayer (MGM)[28] paid $235–250 million to acquire 1,300 films released before March 31, 1996, from PolyGram.[29] In 1999, the ITC library was sold to Carlton Communications (later known as ITV Studios) for $150 million.[30] Some of PFE's North American distribution assets were sold to USA Networks.[31] Universal would later take over the remaining titles, which included a third of the pre-April 1996 films, as well as PolyGram Television's library. Universal would eventually set up their international arm from the ashes of PFE's international division on February 9, 1999, that included theatrical and video distribution when its contracts with United International Pictures and CIC Video expired.[32] After the box office failure of Mickey Blue Eyes, a title inherited from PolyGram that became one of the few titles that were self-distributed by Universal internationally, all the theatrical assets of Universal Pictures International were merged with United International Pictures, which continued to exist until 2007.[33]
PolyGram Video took over the distribution of Manga Entertainment's titles in Australia and New Zealand in late 1996 after Siren Entertainment's license to the Manga Video catalog expired, but PolyGram lost the license to the Manga Video catalog in 1998 after Madman Entertainment took over the licenses. This was due to Manga Entertainment being moved from Island Records to Palm Pictures.
US distribution[edit]
In 1992, PolyGram partnered with Universal Pictures to create a joint venture called Gramercy Pictures. Gramercy primarily distributed PolyGram films in the United States, and it doubled as a specialty label for Universal. In January 1996, PolyGram bought out Universal's 50% stake[35] and in 1997, PolyGram Films was founded to release PFE's mainstream titles in the United States, while Gramercy became a low-budget/art-house sublabel.[36][37] PolyGram Films' first release was The Game.[37][35] When PolyGram was acquired by Universal in 1999, the company merged Gramercy with October Films, which included its subsidiary Rogue Pictures[38] to create USA Films, which eventually became Focus Features. Gramercy was revived in 2015 as a label of Focus Features,[39] but shut down and went dormant the next year.