Spielberg’s Creativity May Be Getting a New Focus : Entertainment: Expansion into high-tech ventures is a possibility. Deal-making could eclipse filmmaking.

After creating dinosaurs real enough to scare up nearly $1 billion at the box office with “Jurassic Park” and a wrenchingly real-to-life vision of the Holocaust with “Schindler’s List,” what’s next for Steven Spielberg? The answer could be “Let’s Make a Deal.”

The 46-year-old director/producer, who is expected to sweep tonight’s Academy Awards for “Schindler,” has signaled that he may temporarily shift his attention from filmmaking to deal-making in the coming year as he takes a well-publicized directing sabbatical.

Spielberg has always been ambivalent about the pure business side of the business--even as he has amassed vast personal wealth from a string of hits stretching from “Jaws” to “Jurassic Park.” But sources say he finally appears ready to take advantage of opportunities to expand Amblin Entertainment, the company that has served as his base for more than 10 years.

Creative Artists Agency, the Hollywood talent firm that represents Spielberg, is in discussions with top technology companies over a number of business ventures that would move him swiftly onto the information superhighway. Sources say that Spielberg, who is personally close to CAA’s deal-making chairman, Michael S. Ovitz, sees much of his future in interactive technology, computer games and other forms of “alternative” entertainment.

“He’s had discussions about all of that,” one associate said. “But he’s not thinking about anything now except the Academy Awards, and he won’t focus on this for several months.”

New technology would be a natural progression for Spielberg, who has always operated on the cutting edge of special effects in movies and television, and who is technically proficient enough to play video games over long-distance phone lines with actor/comedian Robin Williams.

The director, who is responsible for four of the top 10 movies of all time, is mum on the question, though friends say he is intrigued by the idea of reinventing himself as a New Age entertainment/technology guru, after overseeing video game spinoffs of his movies. At Amblin, which is housed in a Southwestern-style complex on the MCA/Universal Pictures lot, plans are under way to consolidate Amblin/Universal’s London-based animation group, Amblimation, with the rest of Spielberg’s Los Angeles operations as part of the restructuring.

Yet the big question on many industry executives’ minds is whether Spielberg has the same will to direct a broad-based entertainment empire as movies. The prevailing view in Hollywood is that Amblin operates more as an outlet for Spielberg’s personal creative impulses than a traditional business. That has served the company well in the film arena, where Spielberg lavishes most of his attention. But the company is considered an underachiever in other media.

“Steven tends to obsess over one project at a time,” one associate said. “That’s a great quality in an artist, but not such a good quality if you’re running a company.”

One example of that is feature animation, where Amblin was seen as a threat to Walt Disney Co.’s hegemony in the 1980s, after producing “An American Tail” and “The Land Before Time” for Universal Pictures. Amblin was also behind “Who Framed Roger Rabbit,” which became a major hit for Disney. But lately it has had trouble duplicating that success.

Amblin’s most recent release was “We’re Back,” a dinosaur tale that quickly became extinct despite its shared pedigree with “Jurassic Park.” After being blasted by critics, it took in only $9 million at the box office last fall. The explanation from Hollywood insiders: Spielberg was too busy working on “Jurassic” and “Schindler’s” to supervise it.

Amblin has had more success in TV animation, with “Tiny Toons” and “Animaniacs” on the Fox network. At Warner Bros., which distributes both programs, President Terry Semel said those cartoons alone qualify Spielberg as a major animation force.

“He has two of the most successful animated shows on the air ever, two Emmy-award-winning and financially successful shows,” Semel said. “He helped create all these characters and is actively involved in every episode and all the marketing and merchandising of the product that has come about.”

But even if Spielberg can lay claim to the hearts and minds of kiddie cartoon watchers everywhere, he is still searching for that same level of acceptance in prime time.

Amblin’s latest launch, “seaQuest DSV,” ranked 78th in the most recent Nielsen ratings. In its Sunday time slot, it is in fourth place behind CBS’ “Murder, She Wrote,” ABC’s “The Adventures of Lois and Clark,” and Fox’s “Martin/Living Single” combination.

Some industry analysts also see disturbing similarities to “Amazing Stories,” the ambitious but unsuccessful Amblin anthology series that ran on NBC in the 1980s. In both instances, they say Spielberg may have miscalculated the tastes of the viewing audience.

“The incredible success he has had in features is unique and it hasn’t happened in the TV world, at least as yet, probably because of cost considerations and in a sense, the audience is different than his core audience in the feature world,” said Kenneth Ziffren, one of Hollywood’s leading attorneys. “His successful pictures are selling to the 12-to-24 or 12-to-34-year-olds and that’s not the bulk of the core TV network audience today.”

Brandon Tartikoff, who headed entertainment at NBC when “Amazing Stories” aired, said he was awe-struck by Spielberg’s story-crafting. But, like many people who have worked with Amblin, Tartikoff said the magic often disappeared when Spielberg delegated. “This is a business where you’ve got to have not just great chiefs, but great Indians,” Tartikoff said.

Amblin’s staff of 60 is unlike most others in Hollywood. From the start, Spielberg has surrounded himself almost entirely with creative people instead of business executives. On the positive side, that has made Amblin more nimble than many competitors.

Entertainment attorney Linda Lichter said: “I think dealing with Amblin is much better than dealing with the studios because the chain of command is shorter. People obviously have to check with Steven on creative issues like hiring a director or writer, but Amblin likes to have its own creative controls and the studios don’t look to overrule them.”

The creative hothouse environment at Amblin has also spawned a lot of fresh talent, said David Kanter, a motion picture agent at United Talent Agency. “Steven has championed a number of young writers and directors,” Kanter said. “When he’s in town and focused, he gets extremely involved. He’s not an absentee producer. He develops personal relationships with people he wants to work with. His seal of approval is extremely important in this town.”

Among the filmmakers Spielberg has helped launch are Robert Zemeckis of “Back to the Future” fame, director Chris Columbus of “Home Alone,” Kevin Reynolds, whose film “Fandango” was a first starring role for Kevin Costner, and director Phil Joanou.

On the downside, critics say that Amblin’s unconventional structure encourages cult-like devotion to Spielberg, rather than Hollywood’s usual creative give and take.

“It’s a very dysfunctional place emotionally because Steven is perceived as a deity,” said one former employee who asked not to be identified, partly on grounds that all Amblin workers are required to sign lifelong confidentiality agreements. “He’s not really the head of a company, he’s sort of god. He’s protected at all turns from everything that will be unpleasant. The line you walk there is you never bring anything unpleasant to him.

“When I got there, someone said: ‘Steven is the company, don’t ever forget that,’ ” the former Amblin executive added. “It’s not like a regular working experience.”

Most people agree that former Amblin president Kathleen Kennedy was the only person who consistently stood up to Spielberg. She and her husband, Frank Marshall, ran Amblin until last year, when they left to form a production company at Paramount Pictures. Neither returned repeated calls for comment.

In May, another husband-and-wife team will replace them. Writer-producer Walter Parkes has been hired as president of Amblin’s movie division, and producer Laurie MacDonald will serve as executive vice president. But even in light of Amblin’s likely forays into the high-tech arena, Parkes and MacDonald said they are committed to keeping the company close to its roots.

“Amblin has been a filmmaker enterprise historically, that has been the key to its success,” Parkes said. “Steven and I have had no specific talks, but I get the impression he’s looked at certain (high-tech) companies. . . . The real challenge is going to be to help focus on the most essential thing--the creative impulse that flows into these new business opportunities.”

Creativity versus commerce. That has always been the key issue in discussions over Spielberg’s future, and there is no reason to believe that will change. Sources say he receives counsel from a close circle of associates that includes Ovitz, MCA President Sidney J. Sheinberg; his manager, Gerald Breslauer, and his lawyer, Bruce Ramer. Ultimately, however, Spielberg tends to follow his own instincts.

In the past that has meant maintaining the status quo, despite countless opportunities to grow his business beyond its core base of movies, TV, video and merchandising. A few years ago, Spielberg and director Martin Scorsese considered launching a low-budget film company called Red Shoes. The idea, sources said, was to make independent, filmmaker-driven movies that might be too offbeat for the studios.

Spielberg and Scorsese spoke to various Japanese investors but were unsuccessful in raising money, supposedly because neither was willing to make a total commitment to be involved creatively with the projects. One source close to the talks said Spielberg--who is accustomed to others financing his dreams--balked at the idea of having to pay $200,000 to put together a business plan for the company, which died after three months of discussions.

On the financial side, Spielberg has declined offers to take Amblin public, even though Wall Street sources said he could easily raise half a billion dollars, based on his name alone.

One reason is that Spielberg has access to more than enough cash needed to finance his assorted projects. He has worked all over Hollywood, but is closest to MCA/Universal and Warner Bros. Universal Pictures Chairman Tom Pollock said Spielberg has the clout to make whatever he wants, though Universal also brings certain projects to his attention.

“I think he’s always had this thing about focusing on the projects, not focusing on the machine,” one source said. “He’s used Universal and Warner to basically be his machine.”

Friends point to that as a prime example of Spielberg’s business savvy, which is sometimes overlooked in stories focusing on the goofy man-child image of the director. Spielberg has helped perpetuate that image by saying things like: “I’m not really interested in making money. That’s always come as a result of success, but it’s not been my goal.”

Walt Disney Studios Chairman Jeffrey Katzenberg is partnered with him in the restaurant DIVE!, which they plan to take national after the first one opens in May in Century City. Asked about Spielberg’s financial prowess, Katzenberg laughed and said: “Give me a break, the guy’s a killer. He’s as smart as anyone, and he understands the business as well as anyone.”

That is borne out in Hollywood deal meetings, where sources say Spielberg has the unsettling ability to segue from boyish yarn-spinner to flinty negotiator. Knowledgeable executives said he receives $1 million to $1.5 million against a small piece of initial gross receipts on his movies. Once a studio has recouped its production costs and earned a low distribution fee, Spielberg’s overall take of the net receipts is said to skyrocket to 50%.

One former negotiator said: “I think he’s a son-of-a-bitch business-wise. George Lucas is the same way. They have a huge amount of leverage, so they can make tough deals.”

Spielberg’s tough negotiating stance and occasional brusqueness have created a certain level of hostility toward him within his industry. But Warner’s Semel said he is worth the money. “In general, it’s fair to say, both as director and producer, his deal is commensurate with his success. He has a very good deal. If you’re up there as one of the best, as Steven is the best, he’d be a fool not to be compensated as the very best.”

Although few people know his precise worth, it is believed to be in excess of $500 million. Friends are fond of pointing out that Spielberg will continue to make more money than most Hollywood heavyweights, whether he expands his business or not.

Yet keeping people guessing about his next moves has always been part of Spielberg’s magic. For the near term at least, Amblin continues to churn out highly commercial entertainment.

“The Flintstones,” which is in post-production, is being touted as Universal’s big summer movie. Still before the cameras are “The Little Rascals” and “Casper.” “Little Giants” starts next month. Another project, which bears the title, “To Wong Foo, Thanks for Everything, Julie Newmar,” goes into production in July.

Amblin is also taking another swing at feature animation with “Balto,” the story of an Alaskan dog that saves lives. “Tiny Toons,” “Animaniacs” and “seaQuest” are cranking away.

MCA’s Sheinberg, who has served as a mentor to Spielberg for more than a quarter of a century, said he expects the director to remain intimately involved with Amblin, even during his sabbatical. He recalled driving onto the Universal lot just two days after the Jan. 17 earthquake, and finding Spielberg busily inspecting the damage to his sets and building.

Sheinberg would not speculate on where Amblin goes from here, but said its future is secure.

“He can do whatever he wants with Amblin,” Sheinberg said. “The test should always be, does it work for Steven?”