"No investment is safe," said Law,
but this has "every chance for success."
Independent film is the "most active arena in movies today,"
because film audiences have developed
"infinitely more eclectic tastes.
That's a good sign
for the kinds of movies we make."

American Playhouse goes indie with PBS blessing
New firm starts first filming soon, series pipeline to dwindle in '96

Originally published in Current, April 11, 1994
By Karen Everhart Bedford

In a venture that PBS hailed as creatively responsive to the tight fiscal climate in public television, the producers of American Playhouse recently unveiled plans to boldly go where no PBS "signature series" has gone before--into the commercial world of independent filmmaking.

The producers announced March 29 the launch of Playhouse Pictures, a for-profit subsidiary of American Playhouse. The new firm is seeking private backing for a package of 15 independent feature films that Samuel Goldwyn Co. will distribute worldwide.

The arrangement allows PBS to spin off one of its most expensive continuing series while pursuing other unspecified dramatic projects. Drawbacks include a significantly reduced drama pipeline beginning in the fall of 1996, an extended delay before Playhouse films reach PBS's broadcast window, and eventual loss of its exclusive rights to Playhouse television premieres.

Since 1982, public TV has invested almost $100 million in American Playhouse, its only showcase for original American drama. By pulling in other backers, producers have more than doubled the return to the system, delivering 216 productions worth about $213 million.

That return was not high enough to keep PBS's commitment. The network's funding constraints and some stations' increasing discontent with the series were key factors spurring Playhouse to pursue financial independence, acknowledged Executive Director Ward Chamberlin.

"They were saying they don't have the money, and none of the stations were screaming and yelling for more," said Lindsay Law, executive producer. "When push comes to shove, we were the ones that got shoved out."

"We all wish it were otherwise," he added. "Luckily, we had the foresight to begin creating other plans." That process began in 1992, and was pushed into fast forward last fall.

Kathy Quattrone, PBS programming v.p., commended Law and Sandra Schulberg, senior v.p. of Playhouse, for being "very creative in dealing with the very difficult financial picture of PTV."

"Part of the beauty of this is that we continue to retain the talents of Lindsay and Sandra, working on behalf of PTV while opening up the range of financial opportunities and the playing field they're working in," she added.

"We would hope the Playhouse Pictures venture is extremely successful and their programs continue to be available to public television in much the same scenario," she said.

On their own

Success of the Playhouse subsidiary rests entirely with its executives, who are in the process of concluding their distribution agreement with Goldwyn, according to Chamberlin. Playhouse needs to raise about $30 million from private investors; the projected cost of producing and releasing the first package of 15 films is $70 million. Of that amount, $40 million will go into production.

In purchasing international rights, Goldwyn will kick in about half of the projected costs, according to a report in the New York Times. Chamberlin said the distribution deal is contingent on Playhouse delivering a certain number of films, not necessarily all 15.

Since 1989, Goldwyn has distributed several Playhouse films--"Longtime Companion," "Straight Out of Brooklyn," "Much Ado About Nothing" and "Golden Gate" during "windows" preceding their PBS airdates.

"We've had successes and failures with them," which provided good tests for "how people really get along," said Law. "We weren't looking for a partner to get through the end of the year. We wanted to establish a long-term relationship."

The distribution deal demonstrates the "great sense of confidence that Goldwyn's people have in Playhouse and that we have in them," said Chamberlin.

Essentially, Goldwyn is agreeing to distribute and promote 15 films when he "doesn't even know what the films are going to be," Chamberlin elaborated. "Nothing in the arrangement gives him say." That commitment shows Goldwyn's "trust and faith in Lindsay, primarily."

The four-station consortium that operates American Playhouse--including WNET, WGBH, South Carolina and KCET--will retain majority ownership in the subsidiary and will have at least one rep on its board, Chamberlin said. Minority interest will be reserved for key employees and may also be sold to consortium stations.

Chief financial officer of the new subsidiary is Timothy Brennan, first v.p. of finance of Silver Screen Management, which backed a number of Walt Disney Co. pictures. Brennan and Schulberg, who developed the corporate plan for Playhouse Pictures, are charged with completing the company's financing. Law heads the subsidiary as president and c.e.o.

"No investment is safe," acknowledged Law, but this has "every chance for success." Independent film is the "most active arena in movies today," because film audiences have developed "infinitely more eclectic tastes."

"That's a good sign for the kinds of movies we make," he added.

If the deal works, it will give Playhouse two things--more money and much more certain theatrical distribution, said Chamberlin. "Our key people will have more time to spend on films and will have to spend much less on scratching up money to put together films. The nature of the films probably will not change."

Production of "The Lady Chieftains" by David Picker, the first film to roll for Playhouse Pictures, begins this summer. Other films in the works include "Angels and Insects," a Gothic tale adapted from the novel by A.S. Byatt and directed by Philip Hass, and "Some Mother's Son," an original screenplay written and directed by Terry George, who was nominated for an Academy Award as co-writer of "In the Name of the Father."

No change on air "for a while"

The final deal with PBS preserves the network's renewals for both fiscal 1994-95 and 1995-96 at $6.6 million, and provides a final grant of about $2.5 million in 1996, according to Law.

With the renewal funds, Playhouse will deliver two more full seasons of nine programs. "That's why the audience, luckily, will not notice any difference for a while," Law explained. In the fall of 1996, 15 new Playhouse Pictures films will begin to "slowly feed" to PBS. Playhouse then will have then a "sporadic presence" in the PBS schedule, more like Hallmark Hall of Fame on commercial TV than its present broadcast configuration.

For the first five Playhouse Pictures films, PBS has acquired rights to television premieres, according to Chamberlin. All subsequent films may debut on cable before reaching PTV.

Windows for the films' theatrical, home video and cable releases may double the delay before new films become available to PBS. Now PBS must wait about 18 months to air Playhouse films, Law said. If the financial package for a Playhouse Picture includes all three non-PTV windows, that production won't reach PBS until almost three years after its initial release.

Quattrone said PBS remains committed to providing a varied service including drama. "If anything, we'd like to enhance domestic drama's presence and are working on ways to do that," she added. "We continue to rely on Playhouse and are exploring a range of other options." She declined to elaborate on those alternatives, except to say that international funders and corporation are potential funders to augment PTV's increasingly limited monies.

Both Law and Chamberlin remain optimistic that Playhouse's relationship with PBS will continue beyond this deal. "I have hope that in another year or two PBS might decide to re-fund drama ... before the pipeline runs out," said Law. "I might be wildly naive to expect so."

To Law, Playhouse seemed to be "much more valued in ... the entire world of independent production and film" than "within its own community" of public television. Now, "the arena that did value it is going to finance it."

"We're still only talking about making high-quality, valuable films, we're not talking about making different kinds of movies," he added. "Maybe when public television regroups and figures out its new existence, it will figure out a way to return to this in a more meaningful way."

	.	To Current's home page
	.	Later news: Rescue plan fails when Playhouse's Hollywood partner collapses.

Web page revised April 15, 1996
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