By Ben Fritz
At the premiere last week of the hip-hop biopic "Straight Outta
Compton, " Ice Cube told the crowd that Donna Langley, the
British-born chairman of Universal Pictures, "is the sixth member
of NWA, no doubt."
Whether it's rappers and producers in Hollywood or executives at
corporate parent Comcast Corp., it's hard to find anyone not
swooning over Universal, which is a dominant No. 1 at the box
office this year.
"Compton," a $30 million production that opened to a knockout
$56.1 million this weekend, will be the ninth profitable movie out
of 10 the studio has made and released in 2015. Universal has so
far collected $5.76 billion in box office world-wide--more than the
prior record for an entire year of $5.52 billion set by Twentieth
Century Fox in 2014. In the first six months of 2015, the studio
generated $715 million in operating cash flow, more than in any
full year since Comcast acquired the NBCUniversal conglomerate in
2011.
Leading the way is "Jurassic World," the third-highest grossing
movie of all time with $1.6 billion since its June release. Close
behind it is the studio's "Furious 7," which has grossed just over
$1.5 billion, making it the fifth-biggest movie ever.
Other massive hits include the "Despicable Me" spin-off
"Minions," at $958 million, and "50 Shades of Grey," which has
grossed $570 million. But inexpensive movies have also done very
well, including a capella comedy sequel "Pitch Perfect 2," Amy
Schumer comedy "Trainwreck" and now "Compton."
The only miss has been "Ted 2," which has grossed a weak $174
million, compared to $549 million for the original in 2012.
Any spectacular run at the box office is in part due to
circumstances, which seem to have conspired to make for a
blockbuster 2015 for Universal. "Furious 7," "Minions" and
"Jurassic World" had all been scheduled at one point or another to
come out last year, but were delayed.
But executives are betting that along with some luck, changes
they made are now bearing fruit.
"This is an exceptional year, but our expectations for the film
business have risen," said Steve Burke, chief executive of
NBCUniversal. "We expect the overall water level to rise on a
sustainable basis."
When Comcast took over Universal, the studio had long been a
laggard, ranking last in box office among Hollywood's six major
studios for three of the prior five years and not having been No. 1
since at least 1988--the earliest year for which records are
available.
One reason was that under its former owner, General Electric
Co., Universal spent less than most competitors, making it
difficult to produce the kind of costly tentpoles that dominate the
global box office. Comcast has boosted the studio's annual
production budget by more than $300 million to close to $1.2
billion, said Mr. Burke. Partners such as Legendary Pictures LLC,
which co-financed "Compton," kick in more than $200 million
annually.
Universal also had little intellectual property under its
control akin to Disney's Marvel super-heroes. Several attempts to
generate mega-hits out of thin material fizzled, most infamously
with 2012's "Battleship."
But Universal has proven adept at building franchises out of
source material grown in-house. "Fast and Furious" started as a low
budget movie about street racing in 2001 but over the years morphed
into a series of over-the-top action films that have, since No. 4
in 2009, consistently grown at the box office.
"Despicable Me" and "Jurassic World" are also homegrown. In the
latter case, though, it took more than a decade to find a script
and director for a sequel to 2001's "Jurassic Park III" that
producer Steven Spielberg would approve.
"50 Shades of Grey," which Ms. Langley landed amid intense
competition, is the one major property acquired from the
outside.
Ms. Langley oversees most day-to-day operations at the studio.
Her boss, Universal's filmed-entertainment group chairman Jeff
Shell, is a Comcast veteran appointed in 2013 who has focused more
on strategic issues, including consolidating previously distinct
domestic and international operations and establishing an office in
the fast-growing Chinese market.
Universal has also sought to better use its big screen
properties to draw theme park visitors and sell toys. Its annual
consumer products revenue has risen to $100 million from $30
million right before Comcast took over , said Mr. Burke, driven in
large part by the little yellow Minions.
Universal Studios parks have recently added attractions based on
the Minions and Fast & Furious--though a licensed Harry Potter
land continues to be the Orlando park's biggest draw.
Those extensions help make up for the inherently less attractive
economics of moviemaking compared to television. NBCUniversal
between January and June generated less than half as much profits
from film as it did from cable networks.
"Movies are an important part of the company that go beyond the
pure profit they generate," said Mr. Burke.
Successful franchises can set up studios for years to come.
Though as Warner Bros. learned with this weekend's flop "The Man
from U.N.C.L.E.," an $85 million production that opened to a weak
$13.5 million, reviving or maintaining them is fraught.
To keep up its current momentum, Universal will need more
franchises, as sequels to this year's hits won't arrive until 2017
and 2018.
Next year's attempts include"The Huntsman," a less costly follow
up to 2013's so-so performer "Snow White and the Huntsman," a new
"Bourne" movie that seeks to recharge the spy series with the
return of Matt Damon, and animated movie "The Secret Life of
Pets."
But as evidenced by "Compton," which drew a diverse crowd along
racial, age and gender lines, Universal believes it can keep
over-performing with the low budget movies too. Some, such as the
comedies "Ride Along" and "Neighbors" and horror film "The Purge,"
have turned into their own mini-franchises, with sequels scheduled
for next year.
Write to Ben Fritz at ben.fritz@wsj.com
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