Paramount Fires Ad Firm From $60-Million Account

The major film studios have been writing some very unhappy endings recently for their Los Angeles advertising agencies. That trend continued on Tuesday when Paramount Pictures abruptly fired D’Arcy Masius Benton & Bowles from its estimated $60-million account.

“It’s the same old story: The new man wants his own people,” said Jim Helin, managing director of the Los Angeles office of D’Arcy, in a statement.

That “new man” is Arthur Cohen, who was named Paramount’s president of worldwide marketing in November. Cohen, who declined to comment Tuesday, was formerly the New York-based marketing chief at Revlon.

A Paramount spokeswoman, who asked not to be identified, confirmed the move. “We’ve severed our relationship with the agency,” she said. She declined to comment on what agency will get the business, but there is already speculation that the Los Angeles offices of Young & Rubicam, BBDO and Ogilvy & Mather are potential candidates.

It may be of little consolation, but D’Arcy has plenty of company. A rash of agency changes have been taking place in the entertainment industry. Advertising executives attribute this to rapid turnover at the studios --and to increased competition.

Little more than a week ago, the Tri-Star Pictures division of Columbia Pictures Entertainment took its estimated $150-million spot TV media buying business away from AC&R; Advertising and handed it to McCann-Erickson. And in recent weeks, 20th Century Fox Film Corp. said it was taking its estimated $30-million network business away from the J. Walter Thompson agency, and planned to purchase the media time itself. Several other film studio accounts are said to be on shaky turf, too.

“You start losing accounts in the entertainment business the day you get them,” said one top Los Angeles advertising executive, who asked not to be identified.

At Paramount, the numbers tell the story. Its box office market share has been steadily slipping. In 1989, it ranked fifth among film studios with a 13.8% domestic box office share, according to the trade magazine Variety. In 1987, it ranked No. 1 with 19.7%.

And although Paramount had some very successful releases in 1989, including “Indiana Jones and the Last Crusade,” which has posted domestic box office grosses of $196 million, it has also had some very disappointing films, such as “Harlem Nights”--starring Eddie Murphy and Richard Pryor--which has only grossed $56.8 million since it opened more than seven weeks ago.

Helin said he was uncertain whether the loss of the account would result in layoffs at D’Arcy. “I hope not, but it could happen,” said Helin, whose agency will announce a home-video client next week that should help offset the Paramount loss. “We need a new studio account,” said Helin, “and we’re working on that.”