Lions Gate Films president Jeff Sackman sits, dressed in sweater casuals, in his busy Toronto office. Periodically checking his computer for fast-breaking information, Sackman speaks to Playback about the company’s u.s. operations, the new name plates on the ceo’s door, the changing Canadian distribution business and life since selling cfp (Cinepix) to Frank Giustra and Lions Gate in June of 1997.
Sackman begins by discussing the history of Cinepix, which started in 1962. When Sackman joined cfp in 1991, he explains, ‘We were four people in Toronto and an office in Montreal.’ At the time, Famous Players was a partner. Then, in 1995, cfp bought out Famous Players and set the stage for a round of financing in 1996 from TD Bank, Royal Bank and Caisse Desjardins.
‘Shortly thereafter,’ Sackman recounts, ‘we met Frank Giustra.’
Since then, Sackman has been working hard to embark on what he calls ‘this u.s. adventure.’ Sackman believes it’s going great. ‘I’m proud to say, I think we’re the most successful Canadian that’s ever tried [the u.s. distribution business]. There were two companies [before us]. Spectra Films was the first company and Cineplex Odeon, the second.
‘We’ve established ourselves and had greater success in the first three years than any company has. Including New Line. Including Miramax,’ Sackman claims.
Sackman leans back to discuss the seed that sprouted the u.s. operation: ‘I remember when Alliance [took] Miramax from us [in a 1995 distribution output deal with aac]. And they had Pulp Fiction. And I remember saying to Robert Lantos, ‘Congratulations.’ And he said, ‘Why? We only get a little fee. To really make money, you’ve got to be with a u.s. distributor.’ And those words [still] ring true.’
However, the industry veteran fears that, in the time spent building the u.s. operation, Lions Gate may have alienated those in its original Canadian marketplace.
‘People think we’ve neglected the Canadian scene,’ Sackman reports. ‘First of all, we’ve been the strongest [Canadian theatrical distribution] company in Quebec for the last few years. Two, we recognize the realities of Canadian distribution. And it’s a very difficult market. Over the last four or five years, there’s been less support from Telefilm, the video revolution has matured and the growth curve is over. Pay television isn’t paying what they were once paying. Free television isn’t buying Canadian films to the degree they ought to. So it’s very difficult to have a self-sustaining Canadian operation,’ Sackman says.
Despite this, Sackman insists he is parlaying this American success into good news for Canada.
‘We’re getting bigger and more important films [American Psycho, Dogma, Dog Park] – that allow us to revamp our Canadian operation.’
Sackman explains that Lions Gate has made Tamara Shannon its director of development to ‘find the next wave of the Atom Egoyans or Cronenbergs. We’ve got to find those people and pump them through our global distribution system.’
Shannon is heading up development because Sackman feels ‘past the age where I can be the key liaison [with young filmmakers]. I don’t speak the language any more.’
Other Canadian initiatives include a reconstitution of Canadian distribution systems.
‘We had them [theatrical releasing in Canada] subbed out through Odeon for a couple of years because that made the most sense during our transition phase. Now, we’re back and we want to use our presence in the u.s. and our international sales division so that we’re getting worldwide rights to Canadian films,’ Sackman explains.
Sackman shifts to the trend toward digital distribution. He believes the hype is a little ahead of reality. Even so, he says, ‘I’ve maintained for a number of years that we don’t really care how people see a movie on their home viewing screen. Whether its called a television, home theatre or computer screen. What ever they want to watch it on, we’re cool with.’
Sackman is even excited about the content being diffused across so many different media.
‘It’s better. It’s broader distribution for us. And where we have trouble, because we’re not a big and powerful studio, it will actually eliminate some barriers, as it will for some producers who find us a barrier,’ Sackman says.
Sackman turns his attention to the issue of Canadian content. ‘I just think the notion of Canadian content as this cultural protectorate [is off base]. The proverbial Prairie movie – that’s not what Canadian content has to be. People are going to have to come up with stuff that’s of interest. We’ve never participated greatly in Cancon because it’s a ‘Prairie film.’ We participate because it’s got commercial potential.
‘I think Telefilm and the funding bodies have to recognize that they’re playing in a different arena and they should be very supportive of commercial product,’ Sackman concludes.
In terms of mega-mergers, such as the proposed Rogers/Videotron morph, Sackman sees an increased ‘appetite for content. There’s going to be opportunities for companies nimble enough to go after them. Ultimately, those big companies are going to need relationships with suppliers and we’re going to have a lot of product to supply.’
The conversation shifts to life under Giustra and the recent executive shuffles at Lions Gate. Has Sackman’s life become more complicated since the 1997 buyout?
‘It complicates your life to the degree that there is a scrutiny that comes from being a public company. It’s the best access to capital, but you’re under a spotlight. And a lot of the decisions you make are questioned,’ he notes. ‘So does it complicate your life? Sure it does. Is it necessary? Yes. Are we glad we did it? Yes. Are there some things, in retrospect, we would change had we had perfect foresight? Yes, but that applies to a lot of areas of life.’
What then would Sackman have done differently, if he were able to rewind three years?
‘I think the desire to satisfy the market causes people to do things without proper thought. You [can] move too fast initially. I think there should be almost a grace period where it’s: ‘Let us implement this at the proper rate, not at an accelerated rate to try and satisfy the market.’ But that’s the way the world is. You can’t ask for the money and then say, ‘But I’d like to have it exclusively on my terms,’ ‘ Sackman says.
More recently, the change in the operational control of Lions Gate from Giustra to new ceo John Feltheimer has raised questions about the future direction of the company. Insisting Lions Gate Films is ‘a fairly autonomous group,’ Sackman plans to continue operating as usual. As for his rumored strained relationship with Giustra, at least outwardly, Sackman seems unperturbed.
‘Like I say, there’s been a certain amount and there remains a certain amount of autonomy at Lions Gate Films. That was the deal we had made with Giustra when we sold the company. We’re deemed to be expert and knowledgeable about this [distribution] part of the business. Just as he was deemed to be expert and knowledgeable about the stock part of the business. And we didn’t tell him how to deal with Bay Street. So, there’s a certain respect for everybody knowing what they know and doing what they do. And I expect that to continue,’ Sackman says.
As for the potential consolidation of Canadian offices reported in the April 3 edition of Playback, Sackman is direct and adamant.
‘I can guarantee a Toronto office,’ he begins. ‘I think people shouldn’t speak to the press about the plans for offices and things like that until they’re done. And nothing has been done yet. We’re here. We’re going to maintain a presence here, regardless of anything else. [With the new technology] I don’t think it’s important where people are anymore. I think what’s important is do we have the right theatres? Are we spending the right amount of money? Are we getting the word on American Psycho out?’
The word on American Psycho is already on the streets. Although the film will be available in its entirety in Canada, the u.s. screenings will be slightly different. Controversy over the mpaa rating does not faze the wily distributor.
‘No scenes had to be cut,’ Sackman says. ‘Minuscule amounts of seconds had to be cut from one scene. We never understood why the mpaa gave it an NC17. But we thank them for their contribution to our publicity.’
American Psycho was released in Canada (and the u.s.) on April 14. It opened in 130 theatres across Canada (1,200 prints in the u.s.). Lions Gate paid nothing for the distribution of the film because it was a Lions Gate production. Approximately $1.5 million was spent on prints and advertising support, across Canada.
Sackman is entrenched at Lions Gate, and expects to remain so. He explains: ‘I consider Lions Gate Films a layer of skin. I believe in it. I think we’re just at the beginning.’