STX Trims Theatrical Distribution & Marketing In Pivot Toward More Hybrid & Streaming Releases

EXCLUSIVE: We hear that STX Entertainment has made cuts in notably its theatrical distribution and marketing departments in the lower level executive tiers and down.

The news comes as STX is pivoting away from 12 theatrical releases a year, and more toward a multi-tiered distribution model. STX plans to make 15 films a year with five destined for the big screen and the balance split between straight-to-streaming, or international theatrical distributed/PVOD-or direct-to-streaming titles.

STX is currently re-organizing itself financially; de-merging from Eros, and segueing to the Najafi Companies. There was an option on the table to have STX absorbed by Lionsgate, both library and staff; a bid STX full-out rejected, I hear, so that they can remain an independent studio. Two films were placed separately in bankruptcy under shell companies of late, Greenland 2 and the Chris Pine-Ben Foster movie The Contractor. This was a means of protecting those features so the studio can monetize them on the other side of completing its transaction with Najafi.

Many have perceived that move by STX as re-arranging deck chairs on the Titanic; I hear that’s not the case and a lot of this agita has to do with the divorce from Eros. Once STX has its house of cards in order, they plan to re-hire in other departments.

The Contractor was sold to Showtime in a deal north of an estimated $15M. The movie received a limited theatrical release on April 1 and to date has earned $1M. The pic’s financier 30West filmed a complaint in a U.S. Bankruptcy Court in New Orleans asking for them to dismiss the chapter 11 case, and claiming that STX failed to make $8.4M in contract payments. The bankruptcy filing automatically prohibited 30West from ending its defaulted deal with STX. 30West was seeking to end its contract and reclaim the movie.

Michael Viane, STX’s co-president of theatrical distribution recently went over to Comscore as their Head of Global Revenue. Head of theatrical distribution Kevin Grayson remains in addition to STXfilms Chairman Adam Fogelson, Co-President and General Counsel Noah Fogelson, Production Boss Sam Brown, President of Marketing Keri Moore and President of Media and Marketing Amy Elkins among other senior level executives.

When reached, STX provided no comment.

 

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