American Playhouse curtain falls as Goldwyn falters
Originally published in Current, Oct. 9, 1995
By Karen Everhart Bedford
Stymied by the financial collapse of its partner, Samuel Goldwyn Co., American Playhouse is preparing to shut down operations after its failed bid for independence.
"We've held on for as long as we can," said Lindsay Law, president.
The nonprofit company that produces American Playhouse, PBS's only series to present original American drama, has already reduced its staff by half. Another round of layoffs will come in December, as Playhouse downsizes to the bare bones necessary to see through its remaining projects and keep track of incoming film revenues.
"In effect, public television is out of the drama business," said Ward Chamberlin, chairman of American Playhouse and head of broadcasting for WNET, New York. One problem is that drama is "so damned expensive."
Last spring, Playhouse announced it would rely on commercial filmmaking after PBS made its last commitment to the series in 1994. Through a new for-profit subsidiary, Playhouse Pictures, producers sought private backing for a package of 15 films for which the Samuel Goldwyn Co. guaranteed U.S. and international distribution.
When news of the Goldwyn studio's financial troubles broke this June, Playhouse's venture began to unravel, said Law. Potential partners "immediately backed off."
"We hoped the situation would resolve itself."
Goldwyn has carried out its obligations in full, said Chamberlin, but the relatively small studio still holds the Playhouse contract, leaving Playhouse with little else to offer potential investors.
Samuel Goldwyn Co. posted a $20 million loss for 1995's first quarter, and is struggling under a $62 million debt load, according to Variety. This summer Turner Broadcasting and Jones Intercable explored purchasing the company--valued at $100-150 million, according to Reuters--but went no further. Instead, Turner itself has been merged with Time Warner.
The recent spate of mergers in the entertainment industry altered "the whole universe" in which Playhouse is now dangling, Law explained. Goldwyn's assets, including a film library, are "definitely worth what they're selling for" but potential buyers are put off by the need to compete with big companies with huge war chests.
Goldwyn must either find new backers or go into bankruptcy, which Law described as the "worst possible scenario."
"It would greatly impact on the amount of money Playhouse would earn." Goldwyn executives have assured Law "that's not what they're contemplating."
"I have to believe them."
"Heads held high"
Playhouse will complete its obligations to PBS, said Chamberlin, which include delivering about 15 films over the next few years.
Among those will be the four films Playhouse Pictures completed this year, Law said, and the multipart dramatic documentary An American Love Story by independent filmmaker Jennifer Fox. The series, which chronicles the life of an interracial family, will air weekly in as many as 13 parts, said Law. He has screened the first two episodes, which are "really spectacular."
"We can go out with our heads held high with very good work."
The four films produced since Playhouse pursued its independent business plan include "Angels and Insects," "Reckless," "Palookaville" and "I Shot Andy Warhol."
Playhouse's demise renews questions about public television's commitment to original American drama. When PBS announced its last grant to its signature drama series, programmers said they would explore other ways to bring it to the schedule. So far, PBS hasn't turned up anything that executives will discuss publicly, said spokesman Harry Forbes.
PBS backed away from the show because of its "cost-benefit" ratio, explained John Grant, who was the No. 2 PBS program executive at the time. "It was very expensive and it wasn't delivering in terms of audience or in perception of value to the audience."
American Playhouse brought some "tremendous successes" to the schedule, Grant added. Part of the problem was that programmers had an "unrealistic expectation" that Law would have a high batting average, when every drama producer has a share of failures.
"Because Lindsay was trying so hard to make these films artistic successes, not just commercial successes, that was a pretty substantial burden."
"The chances for American-produced drama on public television is, I would say, rather slim," said Peter McGhee, head of national productions for WGBH and a member of Playhouse's board. He cited an "inexorable increase in the cost of production" that has catapulted drama beyond "even the wildest and most optimistic scenario of public TV."
At a recent meeting on the National Endowment for the Humanities' strategic plan, the endowment proposed to make no further grants to dramatic production, McGhee noted. "Because it's so expensive, the cost-benefit ratio doesn't work." Funders commit $300,000-$500,000 to a $2 million drama project, and "that commitment sits there for years."
Law himself sees "no hope" for a continuing domestic drama presence on PBS. "It took a long time to get into the business we were in," especially to develop the ability to leverage PBS's declining investments into increasingly costly projects.
"It will go back like the old days and just be piecemeal, which is unfortunate," Law added.
"We have to figure out a way to do drama, even if it's one person shows shot in black in white with a handheld camera," said Jackie Kain, director of broadcasting for KCET, Los Angeles.
"Lindsay has all those connections and a history and a position," Kain added. "I would keep [Playhouse] going, even if it's just specials for three years. It takes a long time to build a signature series, and that was one."
"We are not going to give up on drama," said Don Marbury, v.p. for programming at CPB. "I am trying desperately to squirrel away dollars to allow sporadic infusions into projects that could end up on PBS, whether they end up being a two- or three-parter or a special."
One project, now in the scripting stage, is "Diamonds of Color," according to Sandra Pedlow, associate director of CPB's TV program fund. The miniseries about the black baseball leagues is aimed for a 1997 release that will coincide with the 50th anniversary of Jackie Robinson's entrance into the major leagues.
Marbury has been asking producers to bring him "drama that can galvanize and is less expensive," he said. He's received a few ideas, including several from Jac Venza's production unit at WNET, but he can't discuss them.
Producers, Marbury hopes, can make up for their lack of funding with creativity and uniqueness.
Earlier news: PBS approves its last support for American Playhouse.
Later news: Shut-down of American Playhouse lets hit film escape to ABC
Web page revised April 15, 1996
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