Cable Connection : Growing Trend in Hollywood Is to Bypass the Box Office for Pay TV

Fresh from their work on the summer hit “Patriot Games,” producers Robert Rehme and Mace Neufeld are filming their latest project in historic Gettysburg, Pa.

“The Killer Angels,” based on the Pulitzer Prize-winning Civil War novel by Michael Shaara, stars Tom Berenger and a cast of thousands. In scope, at least, it’s the kind of film that was once a staple of the major studios.

But don’t look for it at a theater near you.

“The Killer Angels,” like a lot of the most provocative and ambitious material coming out of Hollywood, is headed for cable--in this case, Turner Network Television. The $11-million project landed there after collecting dust on studio shelves for more than a decade.

“We’re motion picture producers, but cable allows you to do certain material you could never do in features,” said Rehme, whose company is producing the film along with Robert Katz and Moctesuma Esparza. “I think you’re going to see more and more of this.”

In fact, top talent is already flocking to cable networks such as TNT, HBO, Showtime and USA. With studios and independent production companies buying less material and taking fewer creative risks, these films represent the last frontier for many actors, directors and producers looking to stretch--or simply to work. And most experts see the trend continuing as the popularity of cable movies grows.

Academy Award-winning actor Robert Duvall will star in HBO’s “Stalin” this November, while James Woods will appear in the network’s “Citizen Cohn” next month. Arnold Schwarzenegger flexed his directing muscles for the first time in a recent TNT cable movie called “‘Christmas in Connecticut.” Other cable converts include director Barry Levinson (“Bugsy”) and producer Ray Stark (“Steel Magnolias”), both of whom have projects in the works.

Because of cable’s economics, the networks can churn out dozens of films a year with only minimal financial risk. The average production budget is $4 million, compared to $26 million for features. And whereas multimillion-dollar salaries are common for theatrical films, they rarely exceed six figures in cable because of budget restrictions. The logistics of cable are also different. The small-screen productions, with their more modest technical requirements, require less time to film. That can justify the lower pay stars receive.

“Given that a cable network might spend upwards of $5 million (for the short-term rights) to a theatrical movie that did reasonably well at the box office, many of these (made-for-cable) movies actually come in under that budget,” said Larry Gerbrandt, senior analyst and vice president of Paul Kagan & Associates, Carmel-based media and entertainment analysts. “The economic formula has held up quite well.”

Unlike theatriical films, cable movies also have a built-in audience of subscribers. The films rarely turn a profit, but costs are usually recouped through subscriber fees, advertising and foreign licensing deals.

Companies such as TNT also use made-for-cable films to build an audience. “If we can get close to recouping our investment, we’ve met our short-term goals,” said Dennis Miller, executive vice president of TNT. “These films basically help establish the value of the service.”

Hollywood talent agents and others see another value in cable: a means of doing business at a time of deep cutbacks in project development.

“The way the studios’ health is now, cable has become a much more viable market,” said Bruce Kaufman, a literary agent at Broder, Kurland, Webb, Uffner in Beverly Hills. “There’s an insatiable demand for projects.”

Indeed, product-hungry cable executives have essentially thrown out the welcome mat to agents, lawyers and producers, who are more accustomed to cooling their heels outside of studio chiefs’ offices. The trade-off in cable is lower salaries and less prestige, but agents say it’s a deal most talent is willing to make.

Judy Coppage, a self-employed talent agent, recently sold three screenplays intended as features to cable. Alan Berger, who heads TV at International Creative Management, says cable has opened up a whole new arena for talent. “TNT will do material none of the broadcast networks will do,” he said. “So will USA. And HBO will do projects some feature studios wouldn’t do.”

The thematic scope of theatrical movies used to be wider. Critics say Hollywood usually rejects controversial or serious-minded material now because of the financial risks involved.

The life of CBS founder William Paley, for instance, hardly seems the stuff of movie magic. But HBO solicited Baltimore Pictures, headed by director Levinson and Mark Johnson, to make such a film for cable.

Veteran producer Ray Stark took his “Barbarians at the Gate,” based on the best-selling book on the sale of RJR Nabisco, to HBO after it was rejected by Columbia Pictures. The move forced him to slash the $25-million budget, but Stark said it was “fun making a classy picture for $7 million.”

The producer also noted that the movie “will play to more people in the first couple of performances on HBO than it would in 10 weeks in theaters.” Is there a stigma to working in cable? “There’s more stigma to making a bad picture,” Stark said.

Cable movies evolved from a cottage business to a full-blown industry over the past three years, as production accelerated and more established talent became involved. Cable executives turned to original movies partly as a way to distinguish themselves from their competitors in cable and broadcast TV, and partly out of a basic need for programming. Surveys have shown that viewers prefer original programs to warmed over theatrical films.

Critically acclaimed projects such as HBO’s “Josephine Baker Story,” Showtime’s “Paris Trout” and TNT’s “Conagher” established the medium, which has become a hub for everything from sexy thrillers to historical dramas.

The most prolific cable movie outlet is the USA Network, a partnership of MCA Inc. and Paramount Communications. USA has aired 76 original movies, with 30 planned this year alone. The advertising-driven network, which is available in 58 million homes as part of basic cable service, specializes in mildly provocative films costing anywhere from $2.5 million to $4 million.

Tom Piskura, USA’s vice president of West Coast programming, says the network pumps about million a year into the Hollywood economy through original movies, some of which are hand-me-downs from Paramount and MCA’s Universal Pictures.

Piskura recalled that in 1988, he “couldn’t beg anyone to come in” with projects. Now the company is inundated with scripts. It received nearly 3,000 last year.

The network’s strongest ratings are from movies such as “Are You Lonesome Tonight” starring Jane Seymour and “Body Language” with Heather Locklear. Locklear and Seymour are cable standbys.

Piskura describes USA’s movies as film noir, since they usually involve “someone in jeopardy.” He explained: “There’s a little heat, but we are not a nudity network.”

As a subscriber network seen by 28 million to 30 million people, HBO has the advantage of being able to push the envelope a little further.

When James Woods signed for the lead role in HBO’s film about lawyer Roy Cohn, part of the lure was the chance to paint a realistic portrait of the controversial Cohn.

Robert Cooper, senior vice president of HBO Pictures, said cable can more easily address tender topics because “we don’t have the pressure of box office receipts breathing down our backs.”

HBO Chairman Michael W. Fuchs was more specific. “When Danny Glover works on HBO, he plays Nelson Mandela,” Fuchs said. “When he works for Warner he does Lethal Weapon 3.”