Warner Bros. has unveiled a slate of superhero films that the big Hollywood studio believes will help drive profit after it suffered through an uncharacteristically poor summer.
The studio plans to release 10 films from its DC Entertainment imprint, including at least two that feature both Superman and Batman, starting in 2016. Warner Bros. also intends to make three movies based on a book by J.K. Rowling, whose “Harry Potter” series was the biggest franchise in the Burbank studio’s history.
The ambitious strategy comes at a crucial time for Warner Bros., which told Wall Street investors Wednesday that it planned to cut its annual overhead by $200 million and is set to embark on a major round of layoffs. There have been some reports that the company, a unit of Time Warner Inc., could eliminate about 1,000 jobs.
Chief Executive Kevin Tsujihara said at a Time Warner investors meeting in New York that his studio had a “tough summer.” But he signaled to Wall Street that the studio will deliver financially.
“We are firmly committed to improving our margins,” Tsujihara said. “Through that process we have committed to cutting costs significantly.”
The studio is betting big on franchise movies, which, while often expensive to produce, have the benefit of being known quantities for audiences and can pay major dividends at the box office. Last year, eight of the top 10 grossing films in the U.S. and Canada were sequels or projects tied to well-known intellectual property.
Among Warner Bros.’ forthcoming films from DC Entertainment are “Batman v. Superman: Dawn of Justice” (slated for 2016), “Wonder Woman” (2017) and “Green Lantern” (2020). The movies will put Warner Bros. in even deeper competition with Walt Disney Co.’s Marvel Studios, the company behind recent hits including “Guardians of the Galaxy” and “Captain America: The Winter Soldier.”
“DC will be a key engine for growth across Warner Bros.” Tsujihara said.
The studio also announced three Lego-branded pictures that would be released between 2016 and 2018.
Entertainment industry analyst Harold Vogel said the strategy reflects “the reality for every studio.”
“This is more or less what you’d expect them to say,” Vogel said. “It’s nice to hear - but the devil is always in the details.”
Warner Bros., which has about 8,000 employees, is set to begin cutting jobs by early November. The reductions are expected to affect all divisions of the film and TV studio at offices around the world. Tsujihara did not disclose the number of jobs that would be eliminated, and Warner Bros. declined to comment.
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