De Laurentiis Entertainment Group

De Laurentiis Entertainment Group, commonly known as DEG, was an American film production and distribution company created by Italian producer Dino De Laurentiis during the expansion of film production in North Carolina in the 1980s. The company combined a production studio, a North American distribution operation, and international financing and sales arrangements. Its principal studio complex was developed in Wilmington, North Carolina, after De Laurentiis's production of Firestarter there demonstrated the state's potential as a filmmaking location. The facility later became one of the most important production sites in the region and is now associated with Cinespace Wilmington. The corporate structure that became DEG began with the North Carolina Film Corporation, founded in early 1984 with Martha Schumacher as president. In 1985, under the leadership of Stephen Greenwald, the company acquired Embassy Pictures from The Coca-Cola Company. That transaction gave De Laurentiis a domestic distribution platform for films produced or financed through his organization, while he continued to use advance sales to overseas distributors to help finance projects. The business was presented as an effort to create a studio capable of competing with established Hollywood companies, but much of its production slate consisted of relatively modestly budgeted features rather than the larger productions associated with the major studios. DEG became a public company in May 1986, raising $240 million. Its first releases arrived during the same year. The company's film portfolio included commercially and critically notable titles such as Manhunter, Blue Velvet, Near Dark, Evil Dead II, King Kong Lives, and Bill & Ted's Excellent Adventure. DEG also distributed The Transformers: The Movie and was connected with a range of films made through production, financing, or distribution arrangements. In addition to theatrical films, the company explored television syndication, partnering with Fred Silverman and Gordon Farr on projects including Honeymoon Hotel and California Girls. The company also pursued an international studio strategy. In 1986 it established De Laurentiis Entertainment Limited in Australia and built a studio on the Gold Coast. The Australian operation expanded the group's physical production capacity but increased the capital and operating commitments of a company whose theatrical slate was already exposed to unpredictable box-office results. King Kong Lives and Tai-Pan were among the more expensive projects associated with the studio, while many other productions were made at budgets below the typical level for major-studio releases. By August 1987, DEG had reported $16.5 million in debt and attributed its financial difficulties to a sequence of box-office failures or disappointments. De Laurentiis declined offers to sell the company because he wished to retain control. The company halted theatrical distribution after late 1987, leaving some films to be released directly on home video or handled by outside distributors. In 1988, Dino De Laurentiis left DEG and established Dino de Laurentiis Communications, effectively ending the original studio's independent expansion. The Gold Coast studio was acquired by Village Roadshow in 1988, while the Wilmington studio was sold to Carolco Pictures in April 1989. DEG's film library, together with the Embassy library it had acquired, subsequently passed through Paravision International and Canal+ and is now generally associated with StudioCanal, subject to individual title rights and exceptions. DEG is therefore remembered both for its recognizable 1980s film catalogue and for the financial and strategic risks of attempting to build a vertically integrated independent studio in a highly competitive theatrical market.

De Laurentiis Entertainment Group emerged from Dino De Laurentiis's effort to establish a permanent production base in North Carolina. In 1983, De Laurentiis produced Firestarter in Wilmington. The production attracted the attention of Governor Jim Hunt, who viewed filmmaking as a source of economic development and supported incentives and financing that helped De Laurentiis acquire a local warehouse and convert it into a studio. In early 1984, the resulting North Carolina Film Corporation was established, with Martha Schumacher serving as president. The company expanded beyond physical production into a broader studio model. In 1985, DEG acquired Embassy Pictures from The Coca-Cola Company. The acquisition supplied a North American distribution operation for De Laurentiis's new films, while overseas rights continued to be supported through pre-sales to international distributors. Stephen Greenwald was associated with the company's innovative financing structure. DEG subsequently sought to combine film production, distribution, television activity, and international studio facilities under one organization. The company became publicly traded in May 1986 and raised $240 million. Its initial release slate appeared that year. DEG's catalogue included a mixture of commercially oriented genre films, prestige projects, sequels, and lower-budget productions. Among its best-known titles were Manhunter, Blue Velvet, Near Dark, Evil Dead II, King Kong Lives, and Bill & Ted's Excellent Adventure. The company also distributed The Transformers: The Movie. In Canada, distribution of DEG titles was handled by Paramount Pictures through its Famous Players division. Cineplex Odeon later unsuccessfully challenged Paramount over an alleged conflict involving an earlier distribution arrangement with Pan-Canadian Films. DEG's ambitions extended to television. During 1986, it formed partnerships with Fred Silverman and Gordon Farr involving syndicated programming, including Honeymoon Hotel and California Girls. The company also incorporated an international production strategy by creating De Laurentiis Entertainment Limited in Australia and developing a Gold Coast studio. This gave DEG a substantial physical presence outside the United States, but it also increased its exposure to construction, production, and distribution costs. The business model proved vulnerable to uneven theatrical performance. Although De Laurentiis publicly compared the enterprise with the major studios, most of the slate reportedly had budgets of $10 million or less, below the contemporary major-studio range. King Kong Lives and Tai-Pan were notable exceptions as larger-scale productions. A number of releases failed to meet commercial expectations, and DEG was reported to have accumulated $16.5 million in debt by August 1987. De Laurentiis rejected proposals to sell the company in order to preserve his controlling interest. Around this period, Raffaella De Laurentiis left her position as president of production. After The Trouble with Spies was released by HBO Pictures in December 1987, DEG stopped theatrical distribution. Some remaining projects moved to home video, while others were assigned to outside distributors, including United Artists for Illegally Yours and Pumpkinhead. In 1988, Dino De Laurentiis left DEG and established a successor company, Dino de Laurentiis Communications. DEG's Gold Coast studio was acquired by Village Roadshow, and the Wilmington studio was sold in April 1989 to Carolco Pictures, controlled by Mario Kassar and Andrew G. Vajna. The Wilmington facility continued to influence regional film production after the transaction. The company had also been developing an early version of Total Recall, with Patrick Swayze considered for the role later played by Arnold Schwarzenegger and Bruce Beresford attached as director; the project ultimately moved away from DEG and was completed under different circumstances. DEG's library, together with the Embassy library it had acquired, was sold to Paravision International in 1989. The non-Filmation portion of the Paravision holdings later moved to Canal+ in 1994 and is generally held today through StudioCanal, although rights can vary by title. DEG's brief existence left a durable 1980s catalogue and helped establish Wilmington as a significant American film-production centre.

• 1989

  Wilmington studio is sold to Carolco

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  Carolco Pictures acquired DEG's Wilmington studio in April, marking the end of DEG's direct control of its principal American facility.

• 1988

  Dino De Laurentiis forms a successor company

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  Dino De Laurentiis left DEG and founded Dino de Laurentiis Communications.

• 1987

  Financial distress becomes public

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  DEG was reported to be $16.5 million in debt after disappointing box-office results and subsequently halted theatrical distribution.

• 1986

  DEG becomes a public company

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  The company went public in May and raised $240 million, then released its first slate of films.

• 1986

  Australian subsidiary and Gold Coast studio are established

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  De Laurentiis Entertainment Limited was formed and a studio was developed on Australia's Gold Coast.

• 1985

  Embassy Pictures is acquired

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  DEG acquired Embassy Pictures from The Coca-Cola Company, adding a North American distribution capability.

• 1984

  North Carolina Film Corporation is founded

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  The North Carolina Film Corporation was established in Wilmington, with Martha Schumacher as president, creating the organizational basis for De Laurentiis's regional studio.

• 1983

  Firestarter is filmed in Wilmington

  [1]De Laurentiis Entertainment Groupen.wikipedia.org

  Dino De Laurentiis's production of Firestarter in Wilmington helped demonstrate North Carolina's potential as a film-production location and encouraged state support for a permanent studio.

Independent film studio combining production, North American distribution, international pre-sales, and purpose-built studio facilities.

• Feature film · 1986

  Manhunter

  A crime thriller directed by Michael Mann and adapted from Thomas Harris's novel Red Dragon. It is one of DEG's best-known production credits and became an important title in the company's 1980s catalogue.

• Feature film · 1986

  Blue Velvet

  David Lynch's surreal mystery film, produced in association with DEG. The film became one of the company's most critically distinguished releases and is frequently cited among its signature titles.

• Horror film · 1987

  Near Dark

  A vampire horror film directed by Kathryn Bigelow. It represented DEG's emphasis on genre cinema and developed a lasting reputation within the company's horror and cult-film catalogue.

• Horror film · 1987

  Evil Dead II

  Sam Raimi's horror comedy sequel, distributed and associated with DEG during the company's active release period. It became one of the most durable genre titles linked to the studio.

• Feature film · 1986

  King Kong Lives

  A sequel to Dino De Laurentiis's earlier King Kong remake. It was one of the unusually large-scale productions financed by DEG and contributed to the company's financial exposure when its theatrical performance did not meet expectations.

• Comedy film · 1989

  Bill & Ted's Excellent Adventure

  A time-travel comedy that became one of DEG's strongest-known commercial properties. Its later cultural profile contrasts with the company's short operating life and eventual collapse.

• Animated feature film · 1986

  The Transformers: The Movie

  An animated feature based on the Transformers franchise. DEG handled distribution of the film in its active period, adding a major branded animation property to its release portfolio.

• Feature film · 1986

  Tai-Pan

  A large-scale historical adventure adapted from James Clavell's novel. It was one of the two productions specifically identified as receiving studio-level financing from DEG.

• 1989

  Sell the Wilmington studio to Carolco PicturesM&A

  Background

  After DEG's theatrical distribution business had collapsed, its principal American production facility remained a separable asset.

  Action taken

  DEG sold the Wilmington studio to Carolco Pictures in April 1989.

  Aftermath

  The sale ended DEG's control of the Wilmington complex, which continued to operate under subsequent ownership and contributed to the region's film-production infrastructure.

  Source

• 1988

  Dino De Laurentiis departs and establishes a successor companyOther

  Background

  DEG's financial difficulties and failed or underperforming releases made continued operation under the original structure increasingly difficult.

  Action taken

  Dino De Laurentiis left DEG and formed Dino de Laurentiis Communications.

  Aftermath

  The departure effectively ended the founder-led expansion associated with DEG, while the company's studios and library moved to other owners.

  Source

• 1987

  Halt theatrical distributionStrategy

  Background

  A series of box-office failures or disappointments left DEG with substantial debt and weakened its ability to continue releasing films directly.

  Action taken

  The company stopped theatrical distribution after late 1987, shifting some remaining titles to direct-to-video release or outside distributors.

  Aftermath

  The decision curtailed DEG's independent studio operations and preceded the departure of Dino De Laurentiis and the eventual sale of its production facilities.

  Reported debt. $16.5 million (August 1987)

  Source

• 1986

  Pursue public financing and international studio expansionStrategy

  Background

  DEG sought to operate as a diversified independent studio rather than solely as a producer-led film company.

  Action taken

  DEG raised $240 million through a public offering and formed an Australian subsidiary that developed a Gold Coast studio.

  Aftermath

  The expansion increased production capacity and geographic reach but also added capital commitments during a period of uneven film performance.

  Capital raised through public offering. $240 million (May 1986)

  Source

• 1985

  Acquire Embassy Pictures to create a domestic distribution platformM&A

  Background

  DEG needed a North American outlet for films produced through its expanding studio structure while continuing to use international pre-sales for overseas financing.

  Action taken

  The company acquired Embassy Pictures from The Coca-Cola Company and incorporated its distribution capabilities into the DEG strategy.

  Aftermath

  The acquisition broadened DEG's catalogue and distribution reach, but did not protect the company from later box-office and debt problems.

  Source

1. 1De Laurentiis Entertainment Groupen.wikipedia.org