‘Van Helsing’ Carries Huge Stakes for NBC

Universal Pictures is hoping to bring good things back to life.

On the eve of its acquisition by General Electric Co.’s NBC, the studio is counting on the long dormant Dracula, Frankenstein and the Wolf Man to deliver a monster hit when “Van Helsing” is released in theaters next month.

The dark tale of a monster slayer who takes on the classic trio was launched long before GE expressed interest in Vivendi Universal’s U.S. entertainment assets. Now, “Van Helsing” is shaping up as the first test of NBC’s ability to find synergies in the combined operations.

The only major broadcaster without a film studio, NBC was drawn to Universal in large part because it wanted to exploit the studio’s vast film library. To capitalize on “Van Helsing,” NBC has teamed up with Universal to develop a pilot for a TV series spinoff called “Transylvania.” The series, which could premiere on NBC as early as this fall, is among several steps Universal is taking to build a franchise around its trademark characters: The company is also releasing a new DVD collection of the original horror movies, as well as a “Van Helsing” interactive game, theme park attractions and even gothic-style clothing.

“There’s so much riding on this movie,” said Paul Dergarabedian, president of Exhibitor Relations Co., the box-office tracking firm.

If successful, “Van Helsing” stands to reap a financial windfall for both Universal and NBC. But with a price tag of about $150 million, the effects-laden movie is one of the most expensive in the studio’s history -- so “Van Helsing” has a high mark to hit before it can turn a profit.

What’s more, the movie’s performance will be closely watched by NBC’s famously thrifty corporate parent. The industrial giant traditionally had been leery of the risky hit-and-miss nature of the movie business.

“Obviously, GE is famous in business schools for its very tight management approach, and that’s why people felt they never wanted to own a studio,” said Matthew Harrigan, an analyst with Colorado investment bank Janco Partners Inc. “You’re crazy if you don’t believe that GE hasn’t been scrutinizing [Universal’s] budgets already.”

For Universal Pictures, “Van Helsing” is about both the future and the past.

The Dracula, Frankenstein and Wolf Man characters, brought to life by Hollywood acting legends Bela Lugosi, Boris Karloff and Lon Chaney Jr., helped build the Universal empire in the 1930s and ‘40s.

“These are the crown jewels of the Universal library,” said Universal Pictures Vice Chairman Marc Shmuger. “They were just sitting on the shelves and a little bit neglected for a long time.”

No more. The monsters are being brought back with a vengeance, which analysts say makes economic sense -- so long as “Van Helsing” makes money.

With expectations so high, studio executives have been loath to over-hype the movie, though they have spent more than $30 million to pump it and bought commercial time during the Super Bowl.

They have good reason to be cautious. Last summer’s big action movie, “The Hulk,” was a rare misfire for Universal Pictures, which has been one of the few bright spots within Vivendi Universal. The former French utility was forced to sell the studio and its other entertainment assets to NBC to raise cash and slash crippling debts.

Universal Pictures’ hits have included “Bruce Almighty,” “Seabiscuit” and “2 Fast 2 Furious.” Other blockbusters were “The Mummy” and “The Mummy Returns,” which combined reaped more than $800 million worldwide. And writer-director Stephen Sommers, the force behind those, did the honors for “Van Helsing.”

Studio executives say that is the closest thing to a sure bet.

“There are very few filmmakers, if any, that we would entrust the legacy of our monsters to besides Stephen,” Shmuger said. “Stephen has delivered for us twice before.”

Added Scott Stuber, vice chairman of worldwide production at Universal Pictures, “Obviously, this is an extremely important movie. We’re confident we’ve got a terrific film.”

Still, sensitivities about how audiences will react are running high.

Harry Knowles, editor of the Aintitcool.com movie website, said Sommers complained to him about two negative reviews posted on his website by horror fans who attended an early, rough-cut screening.

“He thought it was a little unfair, and felt that the screening went extremely well,” Knowles said. “I said, ‘I can’t control the feedback.’ ”

Knowles noted that horror fan reactions often don’t reflect those of mainstream audiences. “The fans are a fickle group,” he said.

Sommers said he wasn’t bothered by the reviews. “I couldn’t care less,” he said.

Starring Hugh Jackman, “Van Helsing” will face little competition when it opens May 7. Universal executives also hope to benefit from the enduring popularity of horror movies, including its own recent hit, “Dawn of the Dead” and last year’s “Freddy vs. Jason” by New Line.

“Van Helsing” hasn’t yet been rated, but executives expect it will garner a PG-13.

The movie tells the story of a monster hunter -- Van Helsing, a character who appears in Bram Stoker’s classic book, “Dracula” -- who is sent by a secret order to vanquish evil in a dangerous Eastern European land.

Sommers says the idea came to him two years ago while he was sitting in his “writing pad” near the Santa Monica Pier contemplating his next project after “The Mummy Returns.”

A studio executive had suggested a romantic comedy. But that wasn’t panning out. Sommers, who credits watching classic horror movies as a child in St. Cloud, Minn., with inspiring his interest in filmmaking, found his inspiration while glancing at a poster of “The Mummy” on his wall.

“I thought, ‘I wonder if I should revisit the classic horror pictures,’ ” recalled Sommers in an interview .

The only question was: Which monster? Francis Ford Coppola already did “Dracula.” “And I didn’t want to spend two years of my life doing a werewolf movie,” he said.

Then he had an epiphany. “What about making a movie that combines all three?”

Three months after he successfully pitched the idea to Universal Pictures Chairwoman Stacey Snider, Sommers produced a script. It offered a contemporary interpretation of the classic genre and made the monsters more human, more sympathetic. “There are no monsters in this movie, just people with really bad problems,” Sommers said.

Realizing Sommers’ vision wasn’t cheap. The 44-year-old had to use a host of elaborate and costly digital effects to make the monsters believable for teenagers who flock to horror films -- and have never heard of Boris Karloff.

“You can’t make a horror movie for $80 million,” Sommers said. “It’s got to have everything but the kitchen sink in it.... Nobody wants to see a guy wrapped in bandages.”

Nonetheless, the movie’s budget, which was originally set at just under $160 million (excluding marketing costs), drew heavy scrutiny. To reduce costs, Sommers gave up his upfront fee and the studio filmed more scenes in Prague, Czech Republic, where it is less expensive than filming in Los Angeles.

As much as it is steeped in the studio’s history, “Van Helsing” also could play an important role in the whole company’s future.

The hope is that the movie will create a new franchise, serving as a kind of launch pad for a bevy of horror-themed entertainment across the combined Universal-NBC operation. (The acquisition is expected to be finalized by June.)

“These characters have such a rich cultural history,” Shmuger said. “There are so many opportunities that present themselves for how we can extend [them] across so many other businesses.”

Of course, it all depends on how well “Van Helsing” does at the box office. And Universal executives know that their new bosses at NBC, who declined to comment for this story, will be more than casual observers.

“I feel a combination of excitement and pressure,” Snider said. “We’ve done everything I think we can to set this up to be successful.”

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It’s alive -- again

With the release of its ambitious summer movie “Van Helsing,” Universal Pictures is seeking to build a new franchise around its classic monsters. The effort includes:

* “Transylvania,” a spinoff dramatic fantasy television series for NBC.

* DVD release of the films that started it all: “Dracula,” “Frankenstein” and “The Wolf Man.”

* An interactive “Van Helsing” game for PlayStation 2 and Xbox.

* Universal theme park attractions.

* An animated DVD adventure featuring the voice of Hugh Jackman.

Source: Universal Pictures

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High-priced company

“Van Helsing,” a dark tale about a monster slayer who takes on Dracula, Frankenstein and the Wolf Man, ranks among the most expensive films in Hollywood history. The list includes: Domestic Release Budget* gross Film Distributor date (In (In millions) millions)

Titanic Paramount 12/19/97 $215 $601 Wild Wild West Warner 7/2/99 195 114 Terminator 3: Rise of the Machines Warner 7/2/03 180 150 Waterworld Universal 7/28/95 175 88 Dinosaur Buena Vista 5/19/00 165 138 The Matrix Reloaded Warner 5/15/03 155 281 Tarzan Buena Vista 6/18/99 150 171 Van Helsing Universal 5/7/04 150** NA Speed 2: Cruise Control Fox 6/13/97 145 48 Die Another Day MGM 11/22/02 142 160 Last Samurai Warner 12/5/03 140 111

Budget numbers are estimates by Kagan World Media using studio and news sources. *Does note include costs of prints and marketing **From industry sources NA: Not available Source: Kagan World Media