What is 'Area 51' really worth? (NYT)
By Nancy Tartaglione
Hollywood is puzzling, The New York Times says, over just what the next film from "Paranormal Activity" director Oren Peli is really worth. CAA and IM Global are said to be scrambling to sell US rights to Peli's next movie, "Area 51," before the week is out. At least six companies, including several major studios, have expressed interest.
But, excitement over a potentially hot property is being tempered by caution at seeing traditional industry economics quickly inflate the price, and perhaps lower the profit potential, of what on the surface appears to be another guerrilla-style property from Peli, the NYT says.
"Paranormal's" story is now legendary: ultra low-budget thriller gets university screenings as Paramount conducts Web campaign encouraging audience demand, release continues to expand, film picks up $22 million in fifth weekend to beat a stalwart franchise for the top spot and is now poised to do similar - or better - repeat business as Halloween weekend approaches.
To date, the film has earned $62.5 million.
Paramount, however, is out of the bidding for Peli's follow-up. "We are not in active discussions to buy 'Area 51,'" a Paramount spokeswoman told the NYT.
DreamWorks, whose executives brought "Paranormal Activity" to Paramount during their tenure there; Overture and Lionsgate have not been active bidders for "Area 51," either, the paper says citing people involved with the sale.
"Area 51" producer Jason Blum had no comment for the Times. Stuart Ford, chief executive of IM Global, also declined to discuss "Area 51." Missy Davy, a spokeswoman for CAA confirmed that her company was representing the film but did not elaborate.
"Area 51" cost a little less than $5 million and Ford has been looking for bids of $10 million or more for domestic rights. DreamWorks and Paramount paid only about $300,000 for "Paranormal Activity."
One issue with the new film is that studios will not be able to push it as a sleeper hit since Peli is now so high on everyone's radar.
"In a world of grass-roots wildfires, Hollywood realized that this would not have the same force without the underlying buzz - the confusion between reality and drama - that the rough original film clearly delivered," entertainment lawyer Peter Dekom, who is also co-author of "Not on My Watch: Hollywood vs. the Future," told the NYT.
A deal would be expected, and desired, prior to next week's American Film Market when international distributors will be circling. Some distribs who picked up "Paranormal" have been moving release dates up in order to capitalize on the ruckus the film is making in the States and it will be interesting to see how foreign sales go for "Area 51" given that "Paranormal's" international rollout doesn't begin in earnest until mid-November.
Related Links
Following ‘Paranormal,’ What Price Scary Glory? (NYT)
'Avatar' trailer to unspool before 80,000 at Cowboys-Seahawks game on Sunday (VAR)
'District 9,' 'Paranormal': To Sequel or Not to Sequel, That Is the Question (HWD)
Witherspoon follows 'Rule #1'; Seltzer screenplay at Fox Searchlight (THR)
OWN sets Singer as exec VP of distribution (VAR)
VIDEO: 'Lost' final season teaser trailer (/F)
Lifetime Has Trouble Making 'Runway' Work (TW)
Seacrest's Alleged Stalker Arrested at E! (TMZ)
SWITZERLAND REJECTS POLANSKI'S SECOND, INCREASED-DEPOSIT REQUEST FOR RELEASE ON BAIL (BLOOM)
Auction for crypt above Monroe's ends without one serious bid (NYDN)
Sony Corp. reports fourth straight quarter of losses; games sales rebound (VAR)
Resources Connection to combine Sitrick, and Brincko following $43M joint acquisition (TW)
Penn had letter from VF and HuffPo on Cuba trip, whether there's a specific story to be assigned is yet to be determined (TW)
