Columbia Move on Arnolds Movie Raises Budget Issue

Columbia Pictures’ recent 11th-hour decisions to drop two movies just about to go into production seem to signal that studios are weighing the risks more cautiously in these tough economic times--even on moderately budgeted movies and at the cost of alienating high-profile talent.

Earlier this week, the studio canceled plans to make a road film starring Roseanne and Tom Arnold even though shooting was supposed to begin June 15. The $16.5-million film, referred to as “Car Picture,” was deleted from the production schedule only a few weeks after the studio decided to abandon the $18-million “Ed Wood,” to be co-produced and directed by Tim Burton, considered one of the industry’s major talents after his two “Batman” films. Cameras had been scheduled to start rolling in a month.

Although both pictures were modestly budgeted, many people in Hollywood see Columbia’s actions as a sign of growing toughmindedness at a time when production and marketing costs are escalating. Columbia executives are known to be in a dither over “Last Action Hero,” which did not do well in a test screening. Many believe the film, starring Arnold Schwarznegger and scheduled to be released June 18, cost far more than the $70-million figure the studio has owned up to.

While anxiety over “Last Action Hero” could well be leading studio executives to more closely watch their wallets, Columbia itself does not seem to be suffering financial difficulties. Last week Sony Corp. announced that its entertainment holdings, including Columbia and TriStar Pictures, were a bright spot in an otherwise bad year for the corporation. Sony Pictures last year captured a 20% share of the U.S. moviegoing market.

“Columbia’s cash position is extraordinarily good,” said studio spokesman Mark Gill. “If you look at the number of movies in production, greenlit or about to be made, you can see there’s a lot of activity.”

Three movies are currently in production: the $35-million to $40-million “Wolf,” a contemporary werewolf tale starring Jack Nicholson; the $30-million “Geronimo” with Jason Patric; and the $18-million “My Life,” starring Michael Keaton as a man dying of cancer. Gill said production on “My Girl II” and “Karate Kid IV” is slated to begin June 14, while filming on “Blankman,” starring Damon Wayans, is scheduled to start July 7.

The studio also has solid plans to make the female Western, “Outlaws,” Gill said.

Nevertheless, some insiders find it puzzling that the studio would damage, perhaps permanently, its relationship with Burton and the Arnolds. The studio dropped “Ed Wood,” about a cross-dressing B-movie director, after Burton insisted late in the game on making the picture in black and white. The film is now at Disney.

“That’s a bad relationship to blow,” said one high-ranking executive at another studio. “It’s not on its face the most commercial of movies but you make a movie like that because you believe in Tim Burton.”

Upset with Columbia’s decision, Burton has decided not to make “Mary Reilly,” which was being developed at sister studio TriStar.

Others, however, questioned whether the rift will be permanent. “(Burton) does have a long-term relationship with (Columbia Chairman) Mark Canton,” said one source close to the director. “I don’t think it was completely severed by this.”

As for why Columbia would alienate the Arnolds after having assiduously courted them, some sources close to the project say studio executives were dismayed by the script, ultimately deciding it was unworkable. “For the first 50 pages, mostly they just talk,” said someone who has seen it. Studio executives were also unhappy that preproduction on the film had to be speeded up to accommodate the couple’s television schedule.

This latest decision has given rise to speculation that the tension over “Last Action Hero” has left Columbia executives ill-equipped to take on another headache quite so soon. The Arnolds have a reputation for being difficult to deal with and--as their recent conflict with ABC demonstrates--are quick to take their grievances public. The film is now being shopped at other studios--but without the participation of producers Ned and Nancy Graham Tanen, who have an exclusive contract with Sony.

Columbia officials declined public comment on the Burton and Arnold decisions.