The Highest-Grossing Film "Spirited Away" In Japanese History To Disney

The highest-grossing film in Japanese history is headed to the United States as a Walt Disney Co. release.

Disney has acquired the domestic theatrical, home entertainment and TV rights to the animated film "Spirited Away," the latest release from legendary Japanese filmmaker Hayao Miyazaki. The film, which grossed $234 million in Japan, will be released Stateside in the fall after "Toy Story" director and Pixar Animation honcho John Lasseter serves as creative consultant for a newly dubbed version.

"This is one of the greatest animated films ever made, and I absolutely love it," Lasseter said. "My job will be to act as the guardian of this amazing work."

Lasseter said no cuts have been made to the film and that the animation will not be altered in any way. He is overseeing the translation of the script and the voice casting.

Disney chairman Dick Cook echoed Lasseter's enthusiasm for the project.

"We are thrilled to be associated with the great Hayao Miyazaki and Studio Ghibli in bringing 'Spirited Away' to audiences around the world," Cook said. "This film has already become a boxoffice phenomenon in Japan, and its visionary story and artistry is sure to be a hit with moviegoers all over the globe."

In addition to the domestic rights, Disney acquired the Japanese video distribution rights as well as all theatrical, home entertainment and television rights in Hong Kong, Taiwan, Singapore and France.

"Spirited" follows the fanciful adventures of a 10-year-old girl named Chihiro who discovers a secret world when she and her family get lost and venture through a hillside tunnel. When her parents undergo a mysterious transformation, Chihiro must fend for herself as she encounters strange spirits, assorted creatures and a grumpy sorceress who seeks to prevent her from returning to the human world.

The project is the latest deal between Disney, Miyazaki and Studio Ghibli. In 1998, Buena Vista Home Entertainment released "Kiki's Home Delivery Service" and followed that with the release of "Princess Mononoke." The studio also is preparing several of Miyazaki's other films for release on video and DVD this year.

Bend It Like Beckham, Indian Comedy Hits Western Audience

Bend It Like Beckham is Gurinder Chadha first British film after her acclaimed Bhaji On The Beach. To the alarm of their parents, two soccer-obsessed 18-year old girls (played by Parminder Nagra - and Keira Knightley) dream of playing professionally.

You can say this about acting in a football film: at least it gets you more interesting promotional duties. Parminder Nagra -- the 26-year-old star of new British comedy Bend it Like Beckham -- has just spent the afternoon yakking with Gabby Logan on Football Focus. Was she passing her expert eye Alan Hansen-like over the coming week's fixtures? Click for Full Story....

"Pinocchio" buy puts Benigni on a string

Italian movie powerhouse Medusa Film has acquired domestic theatrical and TV rights from financially crippled rival the Cecchi Gori Group to a package of releases led by Roberto Benigni's $40 million fairy tale, "Pinocchio."

The deal signals another giant step in the seemingly unstoppable rise of market leader Medusa, the film division of Prime Minister Silvio Berlusconi's communications group, as well as a further sign of defeat for former titan Cecchi Gori, which effectively puts its ailing distribution unit on hiatus.

In addition to raising questions regarding the future of CGG and the ability of Vittorio Cecchi Gori -- one of the Italian industry's most colorful players -- to resurface from such a prolonged crisis, the Medusa deal looks to have some fallout on Benigni's political persona.

A stalwart supporter of the left whose playfully irreverent but hardline attacks on Berlusconi have long been a part of his comic routines onstage and in national television appearances, Benigni now finds himself in the prime minister's corporate fold as "Pinocchio" goes out via Medusa.

While financial terms of the agreement were not disclosed, the "Pinocchio" sale alone is likely worth $22 million.

Asking price was believed to be $12 million for theatrical rights, a $4 million P&A guarantee and $6 million for TV rights. Italian home entertainment rights to the Benigni film are held by majority financer Miramax, which has all other international rights.

If the estimated figures are correct, Medusa will have to make $44 million theatrically from "Pinocchio," a massive sum by Italian standards, in order to turn a profit on the pickup. Currently in post-production, the film is scheduled for an October release.

Other titles in the Cecchi Gori-Medusa deal include French veteran Claude Lelouch's "And Now Ladies and Gentlemen, " which is tipped for an out-of-competition slot at Cannes. Agreement also covers four more Italian films: Paolo Virzi's "My Name Is Tanino," Sergio Rubini's "L'Anima gemella," Giovanni Albanese's "AAA Achille" and Alessandro Paci's "Andata e ritorno."

Package marks the second group of Cecchi Gori titles acquired for release by Medusa following a deal finalized last November to handle five Italian titles, including popular comedian Leonardo Pieraccioni's Christmas box office hit "The Prince and the Pirate."

With its slate of upcoming releases virtually cleared by the Medusa deals, all signs point to the end of Cecchi Gori as a distribution player.

But group exhibition and distrib chief Leandro Pesci says the division will remain operational and poised to step back into the marketplace.

"For now, we have no intention of closing," Pesci told the Media. "We are going ahead with the production of other films that will eventually be released by Cecchi Gori."

Until two years ago, CGG handled a slate of around 100 titles per year and held Italian market leadership by a wide margin. With group debt reportedly hovering around the $500 million region, the film division has taken a heavy hit.

Distribution operations have been drastically scaled back over the past two seasons, with only two films released since last summer.

While the distribution deal was concluded between Medusa and Cecchi Gori, reportedly without the involvement of Benigni's company, the question arises, will the comic soften his stance on Berlusconi?

The actor-director was unavailable for comment after the deal announcement Thursday. But his recent statements indicate that the barbs will keep coming.

Appearing as a presenter at the David di Donatello film awards Wednesday in Rome, Benigni said: "Enough with awards! They've given more awards to me than investigation notices to Berlusconi."

Warners teams with Stephen Norrington on 'Akira' redo

Warner Bros. and filmmaker Stephen Norrington have teamed on a Western adaptation of the classic Japanese animated sci-fi adventure feature "Akira," with Norrington writing the story and directing. Jon Peters is producing.

"Akira," released in 1988, was based on a Japanese comic book novel and is set in a postapocalyptic Tokyo. It centered on a group of motorcycle-riding teens who must stop one of their members from running amok after he acquires telekinetic powers in a government experiment known as Akira.

Norrington, who may write the first draft of the screenplay subject to his other commitments, said in an interview that his story "preserves the tone, the visual and the epic scope of the original whilst telling a somewhat more accessible story (to Western audiences)."

Warner Bros. senior vp production Lionel Wigram is overseeing the project.

Norrington, repped by ICM, is readying "The League of Extraordinary Gentlemen," starring Sean Connery He is best known for helming 1998's "Blade."

Legal: Former TV chief Eric Tannenbaum sues AMG, Ovitz

In the latest bad news for Michael Ovitz, he and his Artists Management Group have been sued for $9.6 million by Eric Tannenbaum, the former president of AMG's now-defunct television production unit.

Tannenbaum filed suit Thursday in Los Angeles Superior Court, just hours after a round of talks aimed at settling his five-year contract failed to reach a resolution. ATG shut down in September; sources said AMG continued to honor Tannenbaum's contract through last November.

The suit accuses Ovitz of backing out of a promise to pay Tannenbaum a seven-figure salary and give him complete control of ATG's operations. According to court papers, Ovitz falsely told Tannenbaum that the company had secured a $1 billion line of credit through J.P. Morgan, that Ovitz would personally guarantee his salary, and that he was committed to funding the enterprise for at least five years.

The suit also claims that Ovitz criticized Tannenbaum's management abilities in the industry following the shutdown of ATG. Ovitz accused Tannenbaum of being "financially reckless and irresponsible" in overseeing ATG's operations, according to the suit. An AMG spokesman declined to comment, saying he had not seen a copy of the suit.

Before he joined ATG as president and CEO in 1999, Tannenbaum was the president of Columbia TriStar Television, where he presided over the production of such shows as "Mad About You" and "Dawson's Creek." Tannenbaum's complaint alleges that Ovitz lured him away from Columbia TriStar with promises of building a major TV operation that would make money by distribution of programming through traditional outlets as well as broadband and wireless networks. "In fact, Ovitz had no such plan -- or even any cognizable business plan for ATG."

In its first year of operation, ATG found surprising success, placing four shows on networks' fall 2000 schedules: "Madigan Men" for ABC, NBC's "Cursed," Fox's "The $treet," and the WB Network's "Grosse Point." However, none of the shows lasted beyond a single season, and ATG ended up being stuck with much if not all of the deficits for the shows, which ran into the tens of millions of dollars.

According to the suit, Ovitz had by then wrested control of ATG away from Tannenbaum, whom he later fired.

"When ATG encountered its first tough challenges as a fledgling production company, Ovitz panicked, abandoned ATG and shut down its operations over Tannenbaum's objections," the suit says.

The suit is the latest in a string of problems for AMG. The company is currently unwinding a deal with Vivendi Universal's StudioCanal USA that had paid the overhead for its film unit, Artists Production Group. Ovitz is believed to be seeking another partner for the unit.

Earlier this week, comic Robin Williams left AMG, where he had been repped for the last several years, to join CAA.

Tannenbaum's suit isn't the first legal action to stem from the ATG shutdown. Last October, the WB Network sued ATG to recoup $1 million in advance payments it had made for the reality series, "Lost in the USA," that ATG was to have delivered to the network for a September launch. Sources said that suit has since been settled.

Law firm White O'Connor Curry Gatti & Avanzado filed the case on behalf of Tannenbaum. AMG is repped by Munger, Tolles & Olson.

Studios Settle 'Austin Powers' Row

MGM has agreed to let New Line Cinema parody its James Bond film "Goldfinger" in the title of the new "Austin Powers" sequel.

In January, MGM successfully petitioned the Motion Picture Association of America to ban the suggestive name of the summer comedy "Austin Powers in Goldmember," saying it infringed on the title of its 1964 James Bond thriller.  Both studios reached an agreement Thursday to permit the title.

Part of the deal stipulated that "any future titles that may be construed as parodies of James Bond titles will be subject to MGM's approval," according to a joint statement from the studios.

New Line's 1999 sequel "Austin Powers: The Spy Who Shagged Me," was a parody of the 1977 Bond film "The Spy Who Loved Me."

The Hollywood trade publication Variety reported Monday that MGM was negotiating to place an ad for the upcoming Bond adventure "Die Another Day" before the "Austin Powers" film and New Line's second "Lord of the Rings" film. Both studios, however, refused to confirm whether that was part of the final agreement.

"Austin Powers in Goldmember" debuts July 26. It stars Mike Myers as a toothy, flower-child secret agent and co-stars Destiny's Child singer Beyonce Knowles as his lover Foxy Cleopatra. Myers also plays several bad guys, including hairless schemer Dr. Evil and the new villain, Goldmember.

"There are three or four big labels aggressively pursuing her. Mariah's a smart business woman and is taking her time before she makes any decisions," said Carey's spokeswoman on Thursday.

Carey, who got $28 million to part ways with EMI Group's Virgin Records in January, is now talking with Vivendi Universal's Island Def Jam, run by Lyor Cohen, AOL Time Warner Inc's Elektra Entertainment Group, run by Sylvia Rhone and J Records, run by music legend Clive Davis.

Music industry sources said Carey has also talked with Warner Brothers Records, another label under the AOL Time Warner umbrella.

Music: Mariah Carey Weighing Her Options

Mariah Carey is playing hard to get and who can blame the pop diva who got nearly $30 million just to walk away from her last gig? Carey, who has had more number one songs than anybody except for Elvis Presley and the Beatles, had a falling out with EMI after her album and movie, both titled "Glitter", fared poorly.

The artist, who is set to star in an upcoming film with Mira Sorvino, also suffered a breakdown from nervous exhaustion in the past year. Warner and J Records declined comment.

But in an interview with Reuters on Thursday, Universal Music chairman and chief executive officer Doug Morris acknowledged the company was in talks to sign Carey.

"We are trying to sign her," he said, adding that he was aware that he was competing against Davis at J Records and Rhone at Elektra. "I'm not sure who'll get it, but we have a very good chance," he said.

He declined to comment on possible contract terms, but its a foregone conclusion, according to industry sources, that Carey's next deal will be valued far below the estimated $80 million to $100 million EMI originally agreed to pay.

Under the buyout pact, Carey got $28 million to walk away and retained another $21 million previously paid to her when the EMI contract was first signed in April 2001.

Carey's fallout with EMI reflected some of the difficulties facing the music industry as labels have paid huge sums of money for certain artists who have not panned out during a turbulent year when sales are hit hard by free online music swapping.

The recording companies are also dealing with a coalition of pop stars who have raised concerns about industry accounting practices.

But despite the industry's woes and Carey's rollercoaster year, the labels are anxious to get Carey, who has become one of the biggest selling pop artists of all time since her former husband Sony Corp Sony Music Entertainment chief Tommy Mottola discovered her as an 18-year-old waitress.

Industry: Murdoch Tries to Keep Options Open on KirchPayTV

Failing German media group Kirch's pay-TV company put off filing for insolvency on Thursday as media mogul Rupert Murdoch's representatives tried to save it from collapse in talks with banks, sources said.

A KirchPayTV spokesman said talks were continuing between banks and shareholders and would continue on Friday, but he declined to give further details.

Kirch Gruppe, which has debts of over 6.5 billion euros ($5.7 billion), on Monday declared its core television and rights unit KirchMedia insolvent after weeks of rescue talks involving shareholders Murdoch and Italian Prime Minister Silvio Berlusconi's Mediaset eventually failed.

Sources close to Kirch earlier had said the pay-TV unit would probably follow suit. But company and banking sources on Thursday said an insolvency was unlikely this week.

"Murdoch wants to avoid the same thing happening again," one banking source said. "With another insolvency, he'll lose his last foot in the door to the German media landscape."

A rescue could entail Murdoch injecting the cash needed to turn the loss-making pay-TV operation around and the creditor banks swapping part of their loans for equity, the sources said.

Murdoch and the banks could agree on a deal to stave off insolvency or on a deal to buy the company's core assets after it becomes insolvent, they said.

Through his British pay-TV station BSkyB, Murdoch holds a 22 percent stake in KirchPayTV. BSkyB has repeatedly said it would not invest any further in KirchPayTV and wanted to exit via an option to sell back its stake to Kirch's umbrella holding for 1.7 billion euros.

DEJA VU IN MUNICH

Banking sources said the banks were ready to provide a 150-200 million euro bridge loan to keep KirchPayTV afloat until June if shareholders including Murdoch would provide a subsequent capital increase.

Bankers and shareholder representatives negotiating on KirchPayTV in Munich may be forgiven for feelings of deja vu as the proposals on the table closely mirror the gamble for KirchMedia that eventually collapsed last weekend.

Even the individuals involved in the talks were partly the same as in the past weeks, sources said. The group was smaller, as two of the KirchMedia banks are not exposed to pay TV and Berlusconi's Mediaset has no stake in this company.

Murdoch is interested to try and strike a deal now as an insolvency would remove the leverage he has through BSkyB's equity stake, the sources said.

KirchPayTV's channel Premiere World, Germany's only pay-TV station, which made a pre-tax loss of almost one billion euros last year, needs "several hundreds of millions of euros" to continue operating this year, Chief Executive Georg Kofler said last month.

Premiere has seen very little growth in the past two years as it competes with some 30 free German channels. Subscriber numbers rose 100,000 to 2.4 million in 2001.

Analysts believe Murdoch's media group News Corp, rather than BSkyB, would back any KirchPayTV investment.

"The more likely outcome is that the assets of will be put into administration, with News Corp -- and not BSkyB -- a possible purchaser," said Kingsley Wilson, a media analyst at Investec Henderson Crosthwaite in London.

News Corp and BSkyB declined to comment on the talks.

HOLLYWOOD EYES GERMAN PAY TV

The bulk of the pay-TV unit's losses are due to movie license deals with Hollywood studios, including Viacom's Paramount and Sony's Columbia, which Kirch managers admit have been overpriced.

A direct deal between the banks and the studios is currently the only realistic alternative to a Murdoch takeover other than a simple shutdown of KirchPayTV, sources close to the studios and Kirch sources said.

The studios have started their own talks with Kirch's creditor banks in the past weeks. Sources close to the studios say some studios, including Paramount and Columbia, are eying a majority stake in KirchPayTV after an insolvency filing cut off KirchPayTV's debt.

"If the studios strike a deal with the banks, an insolvency filing becomes more likely -- simply to get rid of Murdoch," a source close to Kirch said.

The studios are concerned a distribution channel into Germany, Europe's largest media market, could be less lucrative if Murdoch -- who controls the 20th Century Fox studio -- took it over alone, one source close to the studios said.

KirchPayTV's top creditor banks are half-state-owned Bayern LB and Germany's second-largest bank HVB Group. The unit's debt stood at 962 million euros at the end of 2001, Kirch's Kofler said in March.

United States to keep Taiwan on watch list for intellectual property rights violations

The United States will not lower its scrutiny this year of copyright infringement in Taiwan, because the island's authorities have not done enough to crack down on the rampant sale of pirated movies, music and software, a U.S. official said Friday.

The United States last year added Taiwan to its priority watch list for intellectual property rights violations. Governments on the list face U.S. trade sanctions if pirating problems in their countries are not addressed.

Taiwan will be kept on the list this year, partly because Taiwanese law does not allow for efficient prosecution of copyright offenders, U.S. Under Secretary of Commerce Grant Aldonas said. One of the biggest loopholes is that authorities cannot act against violators until piracy victims ask the police to investigate.

Taiwanese officials expressed surprise at the U.S. statement, which came at the end of a two-day visit by Aldonas. The United States usually releases the watch list at the end of April.

"It's unfair," said Lu Wen-hsiang, deputy director-general of the economic ministry's Intellectual Property Office. "There's no country in the world that works as hard as we do."

The government recently added 100 policemen to a special piracy task force, and vowed to "get tough" on piracy this year.

In the past two months, the government has confiscated 2.2 billion Taiwan dollars (dlrs 62.8 million) worth of fake CDs and movies, Lu said.

Aldonas applauded the island's efforts over the past year to intensify its crackdown on piracy. These included stiffer punishments for copyright infringement and a new law tightening requirements for labeling CDs.

But much work remains, he said. "We need to see a strong and sustained effort to be able to eliminate the problem."

Intellectual property piracy in Taiwan last year cost the United States 11 billion Taiwan dollars (U.S. dlrs 333 million) in lost revenue, a recent U.S. Trade Representative report said.

The piracy problem is unlikely to go away soon because the temptation for offenders to buy pirated goods is stronger than ever. Taiwan is in the middle of its worst recession in decades.

At night markets across the island, recently released Hollywood movies can be bought for as little as 100 Taiwan dollars (U.S. dlrs 2.86 ) and music CDs for as little as 50 Taiwan dollars (U.S. dlrs 1.43).

Original Video Compact Disc movies cost as much as 800 Taiwan dollars (U.S. dlrs 22.9) and music CDs over 300 Taiwan dollars (U.S. dlrs 8.59).