By Anousha Sakoui and Doni Bloomfield, Bloomberg,
Warner Bros., the biggest Hollywood studio, plans to release at least 10 superhero films from its DC Comics library over the next six years, targeting the riches reaped by Walt Disney Co. (DIS)’s Marvel unit.
The studio, under pressure with its parent Time Warner Inc. (TWX) to boost revenue and profit, also plans at least three pictures based on the work of J.K. Rowling, whose “Harry Potter” books produced some of of the company’s biggest theatrical successes, studio chief Kevin Tsujihara told investors today in New York.
Under the six-year plan, Warner Bros. is “doubling down” on multifilm franchises and superhero movies, Hollywood’s biggest moneymakers, Tsujihara said at Time Warner’s investor meeting. A slate of 22 to 24 films a year will include three Lego movies, an attempt to build on this year’s hit based on the toy building blocks, and a greater focus on consumer products, where Disney is also a leader.
“Disney’s success with Marvel shows us what’s possible,” Tsujihara, chief executive officer of Warner Bros., said at the meeting.
Time Warner’s film unit, a perennial box office leader, ranks third in domestic sales this year behind 21st Century Fox Inc. and Disney, after holding the No. 1 or No. 2 positions annually since 2007, according to researcher Box Office Mojo.
Two films from Disney’s Marvel unit, “Guardians of the Galaxy” and “Captain America: The Winter Soldier” rank among the most successful films this year, with $1.4 billion in worldwide ticket sales, according to Box Office Mojo.
LEGO Spinoffs
Warner Bros. plans two spin off movies from the original “The LEGO Movie,” a picture titled “Ninjago” for release in 2016 and “The LEGO Batman Movie” in 2017. There will also be a sequel to the original film in 2018, the studio said.
Warner Bros. is assigning the Harry Potter creative team to Rowling’s big-screen extension of the wizard story, Tsujihara said.
He also estimated Warner Bros. could earn $150 million in additional profit by narrowing the gap between consumer spending on Marvel products and films and those of DC Comics by 50 percent.
Warner Bros. already has “Batman v Superman: Dawn of Justice” scheduled for release in 2016, bringing the two DC Comics characters together on screen for the first time. In his presentation, Tsujihara laid out plans for other new films titled “Suicide Squad,” “Wonder Woman,” “Aquaman” and “Cyborg” among others.
‘Justice League’
The studio plans “Justice League” films in 2017 and 2019, with Ben Affleck, Henry Cavill and Amy Adams reprising their starring roles in at least the first.
“DC will be a key engine for growth across all of Warner Bros.,” Tsujihara said. Such big budget pictures will be the foundation of the studio’s film business, with more sequels planned beyond 2020, he said.
Tsujihara said the film and TV studio will cut costs by around $200 million annually and that it is targeting high single-digit percentage growth in adjusted operating income. That’s about double what analysts forecast, he said. The studio also plans to produce local language films in China.
Time Warner rose 2.2 percent to $72.21 at the close in New York. The stock has gained 8 percent this year, compared with 7.4 percent for Disney.
Time Warner is holding its investor day to outline its plans to accelerate revenue and profit growth as an independent company after rejecting a $75 billion takeover bid from Rupert Murdoch’s Fox.
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