Sony Pictures is weighing whether to offload several projects to streaming services to minimize the studio’s risk and maximize its profits. A trusted source tells Collider that newly-promoted Sony execSanford Panitchhas had multiple meetings with Netflix’sTendo Nagendaabout selling off risky development projects, andthe Hollywood Reporter’s aceKim Mastersreports that the He-Man movieMasters of the Universeis among them.
Now, before you start with “the sky is falling at Sony” line of thinking, this is actually a smart move for the studio, from a business perspective. Every single movie is a risk, particularly movies likeMasters of the Universethat have been stuck in development hell for a dozen years. While Sony has finally gotten the script to the point where the studio is ready to greenlight the movie, the IP isn’t nearly as hot as it once was, and marketing costs continue to rise. It costs so much money to market tentpoles these days that it has become even harder for them to turn a profit. According toTHR, Sony’s marketing chiefJosh Greensteinhas reportedly been concerned about rising marketing costs, especially for costly flops likeMen in Black: Internationalthat the public could sense weeks before opening. Back in the day, studios would simply throw money at the problem and “buy the opening.” Greenstein allegedly argued against throwing money after bad money. Which makes sense to me, not that sense always prevails in Hollywood.
Rising starNoah Centineois attached to play Prince Adam inMasters of the Universe, but does he have what it takes to lead a major motion picture, or is he the handsome flavor-of-the-month? As a reporter, I’m inclined to give him the benefit of the doubt, but if I were a studio executive, I’m not sure that’s a gamble I’d be willing to take. So when THR says that Sony boss Tom Rothman is “exploring the prospect of getting risk-free cash for the pricey project by making it for Netflix instead,” that adds up. THR says the talks are “preliminary,” andMasters of the Universeis still on Sony’s release calendar for March 2021, but I wouldn’t be surprised if the two companies consummate a deal. After all, it’s a win-win for everyone, since box office is irrelevant to Netflix, where Centineo already has a fanbase thanks toTo All the Boys I’ve Loved Before,Sierra Burgess Is a LoserandThe Perfect Date.
Sony wouldn’t be the first studio to sell dicey projects to Netflix, as Universal sold off theMichael Penasci-fi movieExtinction, while Paramount sold off the horror movieEli, which will debut on the streamer later this month. And Netflix doesn’t have to be Sony’s only customer, as the studio just sold off its Valiant Comics adaptationHarbingerto Paramount. I’m not sure what that says, if anything, about Sony’s upcomingVin DieselmovieBloodshot, which is also based on a Valiant comic. Oh, and who was Sony eyeing to co-star inHarbingerbefore it sold the project to Paramount? Noah Centineo, according to sources.
THRgoes on to report that Sony’s TriStar label is already “devoting resources to streaming deals,” and that Paramount is “looking into dedicating a division to that purpose.” The trade even says that Warner Bros. may sell movies to outside streamers despite the fact that HBO Max is hungry for its own content. This on the heels of A24’s multi-year deal with Apple to produce a slate of films for the tech giant. Does this signal that studios are looking to get out of the theatrical business? Hardly. But it is a sign that they’ve acknowledged the fact that with the Streaming Wars upon us, it may make more sense to provide ammunition (i.e. movies) for the warring streamers than to compete against them with B-list tentpoles that require A-list marketing spends.
Disney and Universal seem to be in business for themselves for the time being, so any films they deem non-theatrical will head to their respective streaming services Disney+ (launching this November) and Peacock (April 2020).
The reason I imagine that Netflix is open to picking up Sony’sMasters of the Universeis that the streamer is already invested in that universe between the animated seriesShe-Ra and the Princesses of Powerand the upcomingHe-Mananime series fromKevin Smith. Frankly, I think a Noah Centineo-led He-Man movie would be eaten alive in this hyper-competitive theatrical landscape, and Sony would be wise to pawn the project off to Netflix, which skews younger and wouldn’t have to sink tens of millions into a marketing campaign.
Say what you will about Rothman, but he has done a pretty good job at the helm given what he’s had to work with. Not only wasVenoma smash hit, butSpider-Man: Far From Homegrossed $1.3 billion worldwide, whileQuentin Tarantino’sOnce Upon a Time in HollywoodtoppedJordan Peele’sUsto become the year’s highest-grossing original film with $360 million. Rothman also came to his senses and gave Disney a bigger piece of theSpider-Manfranchise in order to keep the character in the MCU, since it’s his connection to the larger Marvel universe that was likely responsible forFar From Home’s box office bump.
We’ll keep you posted as this situation continues to develop, but don’t be surprised if Sony sells off a few more projects to streaming services – especially Netflix, which in the future aims to open one tentpole-type movie each quarter, such asMichael Bay’s6 UndergroundstarringRyan Reynolds, and the upcomingDwayne Johnson-Gal GadotmovieRed Notice. Watch the trailer for6 Undergroundbyclicking here.
