Douglas County-based Liberty Media Corp. is making a foray into the movie business, announcing Monday it has formed Overture Films, a motion-picture studio.
Overture will be based in Los Angeles and will be part of Starz LLC, a Liberty subsidiary that operates the Starz Media suite of premium pay-TV channels. The studio will leverage its relationship with Starz for distribution of films to pay TV, broadcast TV and DVDs.
Former Metro-Goldwyn-Mayer executive Chris McGurk will head Overture, reporting to Starz chairman and chief executive Robert B. Clasen. McGurk was responsible for films such as “Barbershop,” “Legally Blonde” and “Hotel Rwanda.”
McGurk has served as a Starz adviser for new ventures since earlier this year.
Industry experts applauded the move, stating that Liberty and Starz have a management team capable of success. Company chairman John Malone controls Liberty Corp. and hired former Oracle Corp. president Greg Maf fei a year ago to run the company as CEO.
“They’re a smart business; (Starz has) been showing films for a long time,” said Paul Maxwell, a columnist for CableFax, a Golden-based trade publication. “I thought, why not? I think that’s some of the thinking. You have to give them credit for trying.”
Overture will produce eight to 10 films annually, including comedies, drama and horror. Budgets for these films will range from $25 million to $30 million.
“We think that’s the right space to operate in economically and creatively,” McGurk said. “Operating in lower budget space results in better movies. We can bring artists in and really empower them to make the movie they want to make, break new ground and not follow the formula that happens when making a $100 million film.”
Liberty will finance Overture projects through equity and debt, said Clasen.
Distribution of films past the box office is key for studios, and with Starz, Overture films can be distributed on pay TV, broadcast TV and DVD, and through the Internet via its movie download service, Vongo.
Clasen said it’s important that Overture have a way to distribute movies after they leave theaters.
“That’s pretty important in financing these deals,” he said. “The key is getting all the distribution lined up. Now, we’re able to produce films and give assurance that they have distribution. With over 20, 30, 40 to 50 films, you can do enough to be successful.”
Starz tried to follow other pay-TV channels, such as HBO and Showtime, and develop original TV programming, hiring a former HBO executive, Robert Leighton, in 2002. Leighton left the company in 2005.
“Bob Leighton did a great job at Starz Pictures. They did some really nice work … but the scale was not there,” said Paul Jacobson, a former vice president for Starz. “The frequency wasn’t there to create the aura of original productions associated with HBO or even Lifetime Films.”
Overture will not build a movie lot, McGurk said, but will begin hiring up to 70 employees to focus on marketing and distribution. It expects to release its first film during the second half of 2007.
Staff writer Kimberly S. Johnson can be reached at 303-954-1088 or kjohnson@denverpost.com.
