EXCLUSIVE: We hear that Entertainment has made significant reductions, especially in its theatrical distribution and marketing departments in lower-level executive classes and down.
The news comes as STX is slipping away from 12 theatrical releases a year and more towards a multi-tiered distribution model. It intends to produce 15 films per year, with five destined for the big screen, and the balance between both direct-to-streaming or international theatrically distributed PVOD and direct-to-streaming titles.
STX is reorganizing 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 it may remain an independent studio. Two films were placed separately in bankruptcy under shell companies of late: and the Chris Pine-Ben Foster film The Contractor. This was a means of protecting those features, so the studio can
Many observers believe that STX is rearranging deck chairs on the Titanic; I know that is not the case, and that a lot of this agita is involved in the divorce from Eros. Once STX has its house in order, it intends to re-hire in other industries.
30West, a picture from the company, claimed that STX failed to pay $8.4 million in contract payments. The bankruptcy filing prohibited 30West from ending its defaulted deal with STX. 30West was seeking to terminate its contract and reclaim the film.
Michael Viane, the co-president of theatrical distribution, has recently left Comscore as its head of global revenue. Kevin Grayson, alongside Chairman Adam Fogelson, Co-President and General Counsel, produces production Boss Sam Brown, President of Marketing Keri Moore, and Media and Marketing Amy Elkins, among other senior-level executives
When reached, STX made no comments.