“Sony’s Chiefs On What’s Next For Movies”

Not often you get to read an interview with the head of production at a movie studio, but in today’s Forbes, there’s Q&A with Sony Picture Entertainment’s co-chairpersons Amy Pascal and Michael Lynton. A few excerpts:

Forbes: How is Hollywood holding up in the recession?

Amy Pascal: The theatrical is doing very well. People are going to the movies like crazy and that’s a good thing. The problem is the DVD market is down from where it was before. Since we are very dependent on that as a studio, that is a problem for us. We have to rethink how we put deals together.

In what way?

Pascal: We are starting to rethink how we pay people. It isn’t just that the movies are expensive. The talent we work with is expensive. We’re going to see a world where the talent share in the profits at the same time as the studios.

Translation: What the hell were we thinking giving talent first dollar gross participation deals where they get paid before us? No more of that nonsense!

You work with two of the highest paid actors in Hollywood, Will Smith and Adam Sandler. Will they be asked to cut their salaries?

Pascal: No. I’ll take them any time. They pay their way. They’re worth every nickel they get.

Lynton: Adam is growing internationally, and Will is the biggest movie star in the world.

Translation: No-no-no, ah, when we said no more of that nonsense, we certainly didn’t mean you Mr. Smith and Mr. Sandler. Sweet deals still coming your way!

Do you think DVD sales are down for good?

Lynton: What you see happening is that every time a new technology or means of distribution show up, about every decade or so, there’s an enormous growth in the business because there’s another way to exploit the library. We just went through one with DVD. Now we need the next one. I don’t mean to sound Pollyannaish but there’s always a next one.

Translation: Please-please-please-please-please, dear God, let there be a new hot technology!

Sony has been successful for three straight years, so clearly Pascal and Lynton are doing something right. Or just lucky (read: Paul Blart: Mall Cop).

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