Warner Bros. Chief Getting Back to (Movie) Business

While Warner Bros. rides high on a record $850-million deal with NBC for the nation’s top-rated TV show, “ER,” the studio’s prolonged dry spell at the box office has forced co-Chairman Terry Semel to refocus his energies on the company’s beleaguered motion picture business.

Since Semel and his longtime studio partner, Bob Daly, were handed the added responsibility of overseeing Warner’s vast global music operations two years ago, Semel hasn’t paid as close attention to the movie side as he once did. (The pair is now accountable for a $10-billion-plus entertainment empire that also includes television, theme parks and retail stores.)

Agents, producers and executives who do business at the studio have complained that Semel has been spread too thin. Over the last year, Hollywood’s traditionally most stable and successful live-action movie studio has seen its market share dive and its film division falter amid executive unrest.

Although Semel has always had a say in all major decisions on the movie side, the studio chief has delegated more responsibility to production chiefs Billy Gerber and Lorenzo di Bonaventura, who run the day-to-day operations of the division.

“I do intend to spend more time than I have in the last year with the film division, but in no way should this be interpreted as lessening the responsibilities of Billy and Lorenzo and all the other people involved in feature films,” Semel said through a spokeswoman.

Semel denied rumors that his New York-based corporate bosses at Time Warner Inc., including Ted Turner and Gerald Levin, had come down hard on him for the movie division’s poor performance and had basically ordered him to get more involved.

“The subject has not been broached by Ted, Jerry or anyone,” said Semel, who along with Daly was in New York this week for budget meetings.

Time Warner spokesman Ed Adler also said that although “it’s true that Terry is more involved in production, this was not directed by New York.” He stressed that it is strictly Semel and Daly “who decide how to run the studio.”

Semel’s not the only one with a redefined role at the studio. His right-hand person on the business side, Jim Miller, has been given added duties overseeing all business-related aspects of the filmmaking process. In his new post as president of worldwide theatrical business operations, the 20-year Warner vet will continue to watch over business and legal affairs and the business aspects of physical production, as well as take on an expanded role in developing new relationships with independent, self-financed production companies and overseeing Warner’s joint ventures with Village Roadshow and PolyGram/Castle Rock.

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A Warner source said of Miller’s expanded role, “He’s going to be Terry’s gatekeeper and be very actively involved in the management of movies, not just dealing with outside suppliers.”

Warner officials insist Miller’s promotion was in the works long before the studio’s box-office woes began and that his added duties don’t reflect further tightening of controls over the production process. When his contract expired, sources said Miller had considered various options, including partnering with producer Steve Reuther, who is expected to sign a new deal at the studio.

Various sources at Warner confirm that Semel has in fact begun to re-immerse himself in creative meetings and various production-related matters.

“He’s hunkered down,” said one producer on the lot.

Another Warner insider noted: “He’s become the new de facto head of production. He’s much more involved in the day-to-day picture business, not only in terms of what movies get made but who makes them and who is in them.”

The source said he believes Semel will make a difference.

“He’s one of the best executives in the business,” said the source, referring to 54-year-old Semel, who has been running the studio with Daly for the last 18 years. “His presence makes a big difference.”

But to bring a turnaround at the box office, sources agree that both Semel and Daly now have to rethink their mind-set that big stars automatically deliver hits, after such debacles as “The Postman,” starring Kevin Costner; “Father’s Day,” with Robin Williams and Billy Crystal; and “Mad City,” teaming John Travolta and Dustin Hoffman, proved otherwise.

Over the last year (from Jan. 6, 1997, to Jan. 6, 1998), Warner’s domestic market share eroded to less than 11%, placing the distributor in fourth place, with 10.8%--behind Sony Pictures (20.3%), Disney (14.2%) and Paramount (12.3%).

While Warner Bros. top executives are quick to point out that their division overall--including TV, the Warner stores and theme parks--has been enjoying record profit, they also acknowledge the recent downturns in movies and music.

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Sources say there’s further anxiety on the movie side over the potential playability of such expensive 1998 offerings as Barry Levinson’s “Sphere” and “Lethal Weapon 4,” which begins production today without a final shooting script, according to sources.

One potential recipe for disaster in Hollywood is setting a release date for a movie--as Warner has with the “Lethal” sequel (July 10)--and working backward, that is, rushing into production and accelerating the filmmaking and editing process no matter what the consequences to ensure the release slot.