EXCLUSIVE: We learn that STX Entertainment has made cuts to its distribution and theatrical marketing departments, especially in the lower and lower executive levels.
The news comes as STX moves away from 12 theatrical releases per year, and more towards a tiered distribution model. STX plans to make 15 films a year, five of which are destined for the big screen and the balance split between direct-to-streaming titles or international theatrical/PVOD or direct-to-streaming titles.
STX is currently in the process of reorganizing itself financially; disassociating itself from Eros and joining the Najafi societies. There was an option on the table for STX to be absorbed into Lionsgate, both library and staff; a full-out STX offer rejected, I hear, so they can remain an independent studio. Two films have been separately bankrupted under shell companies lately, Greenland 2 and the movie Chris Pine-Ben Foster The contractor. It was a way to protect those features so the studio could monetize them on the other side of closing its deal with Najafi.
Many saw this STX move as a reorganization of the deck chairs on the Titanic; I hear that’s not the case and a lot of that fuss has to do with Eros’ divorce. Once STX has their house of cards in order, they plan to rehire in other departments.
The contractor was sold to Showtime in a deal north of around $15 million. The film received a limited theatrical release on April 1 and has grossed $1 million to date. The financier in the photo, 30West, filmed a complaint in a US bankruptcy court in New Orleans asking them to dismiss the Chapter 11 case and claiming that STX had failed to make $8.4 million in payments contractual. The bankruptcy filing automatically barred 30West from terminating its defaulting agreement with STX. 30West was looking to terminate its contract and reclaim the film.
Michael Viane, co-president of theatrical distribution at STX, recently joined Comscore as head of global revenue. Chief of Theatrical Distribution Kevin Grayson remains in addition to STXfilms President 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 executives.
When reached, STX provided no comment.