Artisan Entertainment

Artisan Entertainment was an American film studio and home-video company whose business developed from the direct-to-video market into independent-film production, theatrical distribution, television distribution, and ownership or control of a substantial catalogue of filmed entertainment. The company was founded in 1980 by Noel C. Bloom as Family Home Entertainment, initially operating in connection with adult-film distributor Caballero Control Corporation. Its early activity centered on videocassette distribution, including family programming, genre films, sports titles, and releases supplied by outside rights holders. During the 1980s, the business expanded and changed identities several times. U.S.A. Home Video was created for non-family and genre-oriented releases, while Family Home Entertainment remained associated with family programming. In 1984, these operations were consolidated under International Video Entertainment, while the Family Home Entertainment label continued to be used for selected content. Carolco Pictures acquired IVE in 1987 after previously taking a minority interest in Bloom's broader entertainment group. The company also acquired the assets of Vista Home Video and entered distribution arrangements involving film and television libraries. A 1988 merger with Lieberman Enterprises led to the formation of LIVE Entertainment. LIVE broadened its activities beyond home video through music and video retail investments, international distribution, and film production. It financed or distributed independent features such as Reservoir Dogs, Light Sleeper, and other films, while also acquiring or handling portions of catalogues associated with Vestron, ITC Entertainment, Carolco Pictures, Republic Pictures, Miramax Films, Hemdale Film Corporation, The Shooting Gallery, and other rights holders. The expansion was accompanied by substantial financial pressure. LIVE filed for Chapter 11 bankruptcy protection in 1993, after which its business was restructured and its retail operations were reduced. Bain Capital acquired LIVE in 1997 and took the company private. A new management group led the strategic repositioning of the company around its video library and independent-film opportunities. In April 1998, LIVE was rebranded Artisan Entertainment. The change coincided with a move to Santa Monica and an effort to distance the company from LIVE's uneven commercial reputation and from negative publicity associated with the earlier company structure. Artisan's most prominent commercial success was The Blair Witch Project, released in 1999. The film became a landmark independent release because of its low production cost, documentary-style presentation, internet-oriented publicity, and exceptional theatrical performance. Artisan also distributed or produced a range of critically recognized and commercially varied titles, including Requiem for a Dream, Pi, Killing Zoe, Novocaine, Startup.com, Grizzly Falls, and National Lampoon's Van Wilder. Its home-video business remained central, with licensing and distribution arrangements involving Hallmark, Republic Pictures, Discovery Communications, Alliance Atlantis, and other companies. The company also pursued new media and strategic partnerships. In 2000 it launched Artisan Digital Media and iArtisan, acquired a minority interest in The Baby Einstein Company alongside a home-video distribution arrangement, and negotiated a proposed co-production and distribution relationship with Marvel Studios involving multiple characters. In 2001 it acquired Canadian film and television company Landscape Entertainment. In 2003, Artisan and Microsoft promoted a high-definition DVD edition of Terminator 2: Judgment Day using Microsoft's Windows Media 9 technology. On December 15, 2003, Lions Gate Entertainment merged with Artisan in a transaction valued at approximately $220 million. Following the transaction, Artisan's video releases were reissued through Lionsgate Home Entertainment…

Artisan Entertainment began in 1980 as Family Home Entertainment, founded by Noel C. Bloom. Unlike traditional studios, its initial foundation was videocassette distribution. It operated alongside other Bloom-controlled labels and obtained rights and distribution arrangements for family programming, genre films, sports videos, and established film libraries. In 1983, the company established U.S.A. Home Video for non-family releases, while Family Home Entertainment continued to serve the family market. In 1984, the operations were reorganized under International Video Entertainment. The IVE identity was generally used for non-family material, while Family Home Entertainment remained an active label. During the decade the company added television distribution and expanded its catalogue through deals with companies including Wizard Video, Monterey Home Video, MGM/UA Home Video, Filmation, and MCA. Carolco Pictures acquired IVE in 1987, and the company also purchased assets associated with Vista Home Video. The 1988 combination with Lieberman Enterprises produced LIVE Entertainment. LIVE pursued a broader entertainment strategy, including music and video retail, international distribution, and feature-film production. It acquired VCL in Germany and sought to build value from both physical-media distribution and film rights. LIVE financed Reservoir Dogs in 1992 and handled or acquired rights connected with a number of independent and library titles. It also announced an intended acquisition of Vestron during the company's financial decline. The expansion created considerable financial strain. A planned combination with Carolco was abandoned, Lieberman-related assets were sold, and LIVE defaulted on debt obligations in 1992. The company filed for Chapter 11 bankruptcy in February 1993. Under Roger Burlage, LIVE sold unprofitable retail assets and emphasized film production and distribution. When Carolco ceased operations in 1996, StudioCanal obtained control of the Carolco library, while LIVE retained video-distribution responsibilities through a separate arrangement. Bain Capital acquired LIVE in July 1997. Bill Block, Amir Malin, and Mark Curcio became the principal new executives, and the company closed its existing film-production unit while attempting to use its home-video library to support selective independent-film investment. In April 1998, LIVE was renamed Artisan Entertainment. The corporate headquarters moved from Van Nuys to Santa Monica, and the New York office moved to Tribeca. The new name was intended to present the company as a more focused independent entertainment business. Artisan expanded its licensing activity through deals with Hallmark Entertainment, 20th Century Fox Home Entertainment, Republic Pictures, Discovery Communications, and Alliance Atlantis. The company distributed or released films such as Pi, Killing Zoe, Requiem for a Dream, Startup.com, Novocaine, and National Lampoon's Van Wilder. Its most important release was The Blair Witch Project in 1999. The film's unusual marketing, online discussion, and low-budget production helped make it a major independent hit and gave Artisan a high-profile identity in the late-1990s film market. The company also experimented with new media and strategic partnerships. It created Artisan Digital Media and iArtisan in 2000, invested in The Baby Einstein Company while receiving North American video-distribution rights, and negotiated a proposed joint venture with Marvel Studios. The Baby Einstein arrangement ended early after Disney acquired that company. Artisan purchased Canadian company Landscape Entertainment in 2001 and later collaborated with Microsoft on a high-definition release of Terminator 2: Judgment Day. On December 15, 2003, Lions Gate Entertainment merged with Artisan in a transaction reported at $220 million. Artisan's home-video output was subsequently placed under Lionsgate Home Entertainment, and the Artisan corporate identity became defunct.

1. 2003Artisan merges with Lions Gate

   The transaction integrates Artisan into Lionsgate and ends the Artisan corporate brand.

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2. 2001Landscape Entertainment is acquired

   Artisan acquires the Canadian film and television company Landscape Entertainment.

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3. 2000Artisan expands into digital media

   Artisan Digital Media and iArtisan are launched as the company explores internet and digital opportunities.

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4. 1999The Blair Witch Project is released

   Artisan distributes the breakout independent horror film, its best-known commercial release.

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5. 1998LIVE becomes Artisan Entertainment

   The rebranding accompanies a strategic shift toward independent film and exploitation of the company's video library.

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6. 1997Bain Capital takes LIVE private

   Bain Capital acquires the company and installs a new management group.

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7. 1993Chapter 11 restructuring

   LIVE files for bankruptcy protection amid debt and cash-flow problems.

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8. 1988LIVE Entertainment is formed

   A merger with Lieberman Enterprises creates LIVE Entertainment and broadens the company beyond home video.

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9. 1987Carolco acquires IVE

   Carolco Pictures takes control of International Video Entertainment and expands its role in the company's home-video business.

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10. 1984Operations consolidate under International Video Entertainment

    The company's principal distribution operations are reorganized under the IVE name.

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11. 1983U.S.A. Home Video is established

    A separate label is created for non-family and genre-oriented videocassette releases.

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12. 1980Family Home Entertainment is founded

    Noel C. Bloom establishes the home-video company that ultimately develops into Artisan Entertainment.

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Independent film studio and home-video distributor

• The Blair Witch ProjectTheatrical film distribution1999

  Artisan's defining release was this low-budget 1999 independent horror film, presented as recovered documentary footage. Its internet-oriented publicity, ambiguity about the fiction's authenticity, and unusually strong theatrical performance made it a landmark in independent-film marketing and distribution.

• Requiem for a DreamTheatrical film distribution2000

  Artisan released Darren Aronofsky's psychological drama, an intense adaptation of Hubert Selby Jr.'s novel. The film strengthened Artisan's association with ambitious independent cinema and auteur-led projects.

• PiTheatrical film distribution1998

  Artisan distributed Aronofsky's black-and-white psychological thriller, an early example of the company's support for distinctive, formally experimental independent films.

• Reservoir DogsFilm financing and distribution1992

  LIVE Entertainment provided more than one million dollars toward Quentin Tarantino's feature directorial debut and participated in the film's distribution history, helping demonstrate the company's move into independent feature production.

• Artisan Home Entertainment catalogueHome-video distribution

  The company's home-video operation distributed its own films and licensed programming from numerous rights holders. The catalogue included material associated with Republic, ITC, Miramax, Hemdale, Carolco, The Shooting Gallery, Hallmark, Discovery, and other libraries.

• Terminator 2: Judgment Day: Extreme EditionHigh-definition home video2003

  Artisan and Microsoft promoted this edition as an early high-definition DVD release using Windows Media 9. Playback was designed for compatible personal computers running Windows XP, making the title both a catalogue release and a technology demonstration.

• 1999The Blair Witch Project internet-led publicity campaign

  United States

  Artisan supported a publicity approach that used the internet, mystery surrounding the film's supposed documentary premise, and grassroots discussion to generate interest before and during theatrical release.

  Outcome. The campaign helped turn a very low-budget independent horror film into a major cultural and commercial success.

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• 2003Merger with Lions Gate EntertainmentM&A

  Artisan owned or controlled a large film and home-video library but operated as a private independent mini-major.

  What changed. Lions Gate Entertainment merged with Artisan on December 15, 2003, in a transaction reported at approximately $220 million.

  Aftermath. Artisan releases were reissued through Lionsgate Home Entertainment and the Artisan brand was discontinued.

  reported transaction value. $220 million (December 15, 2003)

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• 2000Proposed Marvel co-production ventureOther

  Marvel Studios sought financing and distribution support for projects involving a group of Marvel characters.

  What changed. Artisan negotiated a joint venture covering potential films, television projects, direct-to-video releases, internet projects, and related licensing.

  Aftermath. The arrangement did not become the long-term Marvel film platform later associated with other studios.

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• 1998Rebrand as Artisan EntertainmentStrategy

  New private-equity ownership and management sought to reposition LIVE around its home-video library and independent-film opportunities.

  What changed. The company changed its name to Artisan Entertainment, moved its headquarters to Santa Monica, and closed the existing film-production unit.

  Aftermath. Artisan developed a stronger independent-film identity and released several critically notable films.

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• 1993Restructure after Chapter 11 filingStrategy

  LIVE faced debt and cash-flow problems after expanding into retail, international distribution, and film production.

  What changed. The company entered bankruptcy protection and subsequently reduced its retail exposure while emphasizing film and video assets.

  Aftermath. The restructuring laid groundwork for the later Bain Capital acquisition and Artisan rebranding.

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• 1989Murder of IVE executive José MenendezControversy

  José Menendez, who had become head of International Video Entertainment, and his wife were murdered by their sons in 1989. The crime became associated with the company in later public discussion, although it was not a corporate misconduct finding.

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• 2003Artisan and Microsoft announce a high-definition DVD release

  The companies promoted Terminator 2: Judgment Day: Extreme Edition as an early high-definition DVD release based on Windows Media 9 technology and designed for compatible Windows XP computers.

  Product launchProduct generation
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• 2003Lions Gate Entertainment merges with Artisan

  Lions Gate completed its combination with Artisan on December 15, bringing Artisan's catalogue and operations into Lionsgate and ending the independent corporate brand.

  M&A
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• 2000Artisan reaches a proposed Marvel co-production arrangement

  Artisan and Marvel Studios negotiated a proposed joint venture covering film, television, direct-to-video, internet, licensing, and merchandising activity connected to a group of Marvel characters.

  M&AOther
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• 1999Artisan releases The Blair Witch Project

  The release became a defining independent-film success and demonstrated the commercial potential of low-budget filmmaking supported by novel publicity and distribution tactics.

  Product launchCampaign
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• 1998LIVE Entertainment is rebranded as Artisan Entertainment

  Following its acquisition by Bain Capital and a management restructuring, LIVE adopted the Artisan name and refocused on its film library and independent-film activities.

  Leadership change
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• 1993LIVE Entertainment files for Chapter 11 bankruptcy

  The company entered Chapter 11 protection after debt and insufficient cash flow placed pressure on its expanding distribution, retail, and production businesses.

  Bankruptcy
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1. Artisan Entertainment