Warner Bros. Consolidates Its Properties and New Line is Swallowed
New Line toppers say bye-bye
This doesn't come as a surprise to folks that keep up on the business end of things, but Warner Bros. today confirmed in a press release the consolidation of New Line Cinema and Warner Bros. Entertainment. The move means that New Line's 40-year run as an independent studio is coming to an end. This doesn't mean New Line is necessarily gone, since it will still operate as a separate identity in terms of development, production, marketing, distribution and business affairs operations, but will closely integrate and coordinate those functions with Warner Bros. to maximize film performance and operating efficiencies, achieve significant cost savings, and improve margins.
The biggest announcement is probably that New Line’s Co-Chairmen and Co-CEOs Robert Shaye and Michael Lynne have elected to leave the studio, but are in discussions about possible future business relationships with the company.
New Line's lack of success following on the Lord of the Rings trilogy is most likely the reason for the move as Time Warner's President and Chief Executive Officer Jeff Bewkes said, "We are moving quickly to improve our business performance and financial returns. New Line has built a strong franchise of cutting-edge entertainment. We can enhance its value by combining it with Warner Bros. Given the trend toward fewer movie releases, New Line and Warner Bros. will now have more complementary release slates, with New Line focusing on genres that have been its strength. With the growing importance of international revenues, it makes sense for New Line to retain its international film rights and to exploit them through Warner Bros.' global distribution infrastructure. We can also take better advantage of digital distribution platforms by combining our studios. These changes will enhance our revenue opportunities and drive dramatic cost efficiencies and higher margins at New Line."
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