Brief Background and History of Twentieth Century Fox Film Corporation

History of 20th Century Fox Film Corporation

History of Twentieth Century Fox Film Corporation

Twentieth Century Fox Film Corporation is a subsidiary of Fox Inc., which is owned by media mogul Rupert Murdoch's News Corporation Ltd. Throughout its long history, the company has enjoyed a reputation as a major Hollywood motion picture studio. It produced some of the more prominent box-office hits--such as The Sound of Music and Star Wars--and has expanded into related areas of the entertainment industry through the development of subsidiaries such as Fox Animation Inc. and Twentieth Century Fox Home Entertainment.

William Fox and his Nickelodeons

In 1904 William Fox, a 25-year-old Hungarian immigrant, bought his first nickelodeon, an early form of movie theater, in New York City. Within a few years Fox and two partners, B.S. Moss and Sol Brill, had parlayed their success into a chain of 25 nickelodeons.

The partners soon opened the Greater New York Film Rental Company, and then in 1913, concerned that the demand for movies had begun to outstrip supply, they organized the Box Office Attraction Company to begin producing their own movies. In 1915 Fox founded the Fox Film Corporation to produce, distribute, and exhibit movies and moved his operation to California, where he believed the temperate climate would be better suited to film production.

In 1925 Fox Films relocated to its fourth California location when Fox purchased the 250 acres of land in Hollywood which was to become the company's permanent home. In 1929 Fox Films bought 55 percent of Loew's Inc., then the parent company of MGM, but was later forced by the government to sell that interest.

After several years of steady growth, the company experienced a series of shake-ups beginning in 1927, and in 1930 a group of stockholders ousted William Fox. Fox was replaced by Sidney R. Kent in 1932, and two years later Fox Film Corporation merged with Twentieth Century Pictures.

The Rise of the Twentieth Century Company

In 1933 Darryl F. Zanuck, head of production at Warner Brothers, had joined Joseph M. Schenck, head of United Artists, in forming the Twentieth Century Company. With Schenck as the administrator and Zanuck head of production, the Twentieth Century Company made 18 films in 18 months, including The House of Rothschild, The Affairs of Cellini, and Les Miserable. During this time, Twentieth Century began tapping into current news events for subject matter, with releases like the gangster films Little Caesar and Public Enemy. When the company merged with Fox Film Corporation in 1935, Zanuck became vice-president in charge of production of the new Twentieth Century Fox Film Corporation.

The company distinguished itself by producing two Academy Award-winning films during this time, The Grapes of Wrath in 1940 and How Green Was My Valley in 1941. Zanuck served as a lieutenant colonel during World War II, making training and combat documentary films. He was awarded the Legion of Merit for his wartime services.

After the war, Twentieth Century Fox produced such hits as The Snows of Kilimanjaro, Winged Victory, Twelve O’clock High, The Razor's Edge, and All About Eve. Zanuck also attacked controversial issues in several financially successful movies, proving that audiences would not shy away from such topics as mental illness, race relations, and anti-Semitism with The Snake Pit, Pinky, and Gentleman's Agreement.

Management Shake-Ups in the 1990s

Roth left Twentieth Century Fox in 1992 to become an independent producer for Walt Disney studios. The former president of the Fox Entertainment Group, Peter Chernin, replaced Roth as president. As management changed, confusion resulted regarding the responsibility for making key decisions at the Twentieth Century Fox Film studios. Rupert Murdoch himself suspended production of Steven Seagal's Man of Honor, the actor's directorial debut. Actor Macaulay Culkin's father appeared to be making production decisions on his son's thriller The Good Son. Even new president Chernin stepped in to decline the Madonna film Angie, I Says when its producers would not comply with a re-write request.

More management changes followed when Strauss Zelnick, president and chief operating officer since 1989, resigned after accepting a position as president and chief executive of an entertainment software company in 1993. Bill Mechanic then moved from the Disney studios, where he served as president of the home video division, to assume the presidency of Twentieth Century Fox Film Corporation. As Zelnick's successor, Mechanic came to the studio with an extensive video background. In his new position, Mechanic was responsible not only for Fox's home video activities, but for production, marketing, distribution, international theatrical activities, and pay TV as well.

Exploring New Products and Positions

Unlike some major studios, Twentieth Century Fox Film supported the development of pay-per-view (PPV) television in 1993, a service through which customers could order new movies over the telephone for in-home viewing on their televisions. Although the company was not considering pay-per-view as a venue for new movie releases, the studio developed promotional and marketing strategies for its pay-per-view releases. For example, the company engineered retail tie-ins with the Improve, a comedy club, for the pay-per-view showings of such comedies as Hot Shots! Part Deaux! and Robin Hood: Men in Tights. In 1994, Twentieth Century-Fox Film negotiated a pay-per-view distribution agreement with DirecTV.

Twentieth Century Fox Film also established an "interactive division" that year. Fox's prior experience with video games had met with mixed results, as earlier forays in the pre-Nintendo days fell victim to the video game "crash" of the mid-1980s. Since then, Fox had typically licensed its film properties to video developers. This practice slowed, however, as the announcement of the new interactive division grew closer. One of Twentieth Century Fox Film's first products in this arena was based on its movie The Pagemaster, an animated adventure set in a library. The Pagemaster game product was made available for a variety of platforms, including Sega Genesis, Nintendo Super Entertainment Systems, and Nintendo Game Boy. The company selected Al Ovadia, president of licensing and merchandising for the studio, to lead the new division.

Twentieth Century Fox Film launched another new enterprise in 1994--an animation unit headquartered in Phoenix, Arizona. Called Fox Animation Inc., the new unit expected to issue one animated feature every 18 months or so. The studio recruited exceptional talent to lead its animation division, in particular Don Bluth and Gary Goldman, creators of such animated hits as An American Tail and Land before Time.

A year later, Twentieth Century Fox Film created yet another new division, Twentieth Century Fox Home Entertainment, to distribute its video and interactive programming products. Bob DeLellis assumed the presidency of Twentieth Century Fox Home Entertainment North America, and Jeff Yapp served as president of the division's international operations.

In 1996 Twentieth Century Fox Film received the largest film financing in history through Citicorp, a bank holding company. The studio intended to use the capital for film production and acquisitions. "With the help of Citicorp," explained Simon Bax, chief financial officer of Fox Filmed Entertainment, "we were able to put together an innovative film financing structure on attractive terms. As a major studio and as a part of the News Corporation, we were able to put in place a mechanism for funding our full production slate over the next three years, while providing investors with an attractive return on their investment."

In 1997 Twentieth Century Fox Film's animation unit released its first feature-length production, providing Disney studios with stiff competition. Anastasia, the story of the Russian tsarina thought to have survived the massacre of the Romanovs, received promotion valued at about $200 million from a variety of sponsors. Pictures of characters from Anastasia appeared on the packages of products from Dole Foods, while Hershey manufactured Anastasia-themed chocolate bars. Other products offered toy coupons or movie ticket orders. Anastasia even had a float in the Macy's Thanksgiving Parade that year. Mechanic had great faith in the success of the unit's first feature. "If you said to me I had to put my job on the line for any movie, I would put it on this one," the executive told Fortune. Anastasia made in excess of $58 million at the box office.

Twentieth Century Fox Film distributed Anastasia through pay-per-view television during the summer of 1998. Service providers were pleased with the decision, since it attracted a new audience for them. "Anastasia could be the building block for the distribution of more nontraditional PPV programming in the future," Jamie McCabe, a vice-president of worldwide PPV, told Multichannel News.

In 1998 Twentieth Century Fox Film experienced one of its greatest successes to date, producing the Oscar-winning disaster picture Titanic. Breaking all box-office attendance records, the movie opened a merchandising treasure chest for the studio, which licensed merchandise, such as costumes and life jackets, to be sold through the catalog firm of J. Peterman. Other licensing agreements for t-shirts and collectibles followed, as did some unauthorized material. In fact, Twentieth Century Fox Film initiated litigation against Suarez Corporation Industries, located in Ohio and doing business as Lindenwold Fine Jewelers, for marketing a copy of a necklace featured in the movie.

A Hollywood institution, Twentieth Century Fox Film was likely to produce its share of blockbusters in the future. As technologies progressed, the company also planned to make its mark on other related areas of the entertainment industry, including interactive video games and animation.

0 Comments