Rewinding the Real-Life Reel: Births, Deaths, Foibles of ’93

Company Town is not a sentimental place. Its emotional maturity level is only slightly higher than its age--which is 7 months. So it’s wary of putting a tidy bow on 1993, especially with the epic battle for control of Paramount Communications technically unresolved.

But the past year still provided plenty to ponder. As science and scandal competed for the Hollywood headlines, there was also a no-go on GATT, a rebirth for MGM, a near-death for Euro Disney, some surprising news from the box office and a captivating prostitution soap opera.

What follows, in no particular order, is Company’s Town’s Top 9 Lessons Learned in 1993.

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Technology Is Your Friend: Entertainment met weird science in the form of a new-technology revolution this year, giving technophobes a shock to the system.

As terms such as information superhighway and video compression entered the entertainment lexicon, Forbes dubbed 1993 “the dawn of the multimedia entertainment/information age.” At the same time, Wall Street was stirred by technology-driven deals such as the Paramount takeover battle, the Tele-Communications Inc. merger with Bell Atlantic and Ted Turner’s march on Hollywood.

Look for the pattern to continue in 1994. Insiders predict that Sony will press on with its search for a technology-based investor in Sony Pictures Entertainment. There’s also speculation that Walt Disney Co. will make a major acquisition, possibly of CBS. Another scenario has one or more major studios entering into partnerships with the leading video game makers.

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France Is Not Your Friend: After years of grandstanding about the dire consequences of losing out on GATT, the entertainment industry did exactly that. While the cost of the defeat is difficult to gauge, the industry clearly suffered a black eye at the hands of the French when they refused to budge on quotas and subsidies for its fragile film industry.

The result will probably be more international partnerships and more emphasis on new technologies that will open the door to further growth. Look for Rupert Murdoch’s British Sky Broadcasting--Europe’s largest satellite TV service--to become one of next year’s political hot potatoes.

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France Is Not Disney’s Friend: GATT wasn’t the only example of French culturalism. Euro Disney’s massive financial problems were also exacerbated by French resistance to the park--which many defenders of the Gallic way of life saw as an unwelcome invasion of American pop culture. Auditors last week warned that Euro Disney will be forced to close without a massive restructuring. Predictions are that Disney, which is expected to lose about $500 million a year on the park under current conditions, will take at least one more swing at salvaging the operation before walking away.

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The Best Things in Life Are Free: Hollywood gained a whole new appreciation for hearth and home after shuddering through the summer of Heidi Fleiss. While no major Hollywood executives were publicly accused of hanky-panky by Fleiss, the scandal still strained some marriages and may have damaged careers. Next up: Fleiss’ case moves through the courts.

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Time Warner and 7 Make a Tantalizing Mix: Seagram’s steady accumulation of Time Warner stock should continue through the new year. Seagram has acquired 9.3% of the entertainment conglomerate and has disclosed that it might buy up to 15%. While the liquor company headed by Edgar Bronfman Jr. says its intentions are friendly, some insiders still look for it to make a hostile move on Time Warner management. At the very least, Seagram is expected to gain some seats on the board.

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One Oughta Do It: Forget about “In the Line of Fire . . . Again” and “Another Indecent Proposal.” The sequel genre lost its luster this year, as movies such as “Addams Family Values,” “Wayne’s World 2,” “Sister Act 2” and “Beethoven’s 2nd” did tepid business at the box office.

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The Lion Never Sleeps: MGM showed that it still has more lives than the proverbial cat by attracting the attention of several prospective buyers, despite its near-terminal condition.

First came the rumors of a mysterious purchase plan by the Cargill family, which has made its fortune in grain. Then came the more substantive overture from Bill Koch. There were even reports that Italian financier Giancarlo Parretti was plotting to reclaim it. In the end, owner Credit Lyonnais took the advice of Creative Artists Agency Chairman Michael Ovitz -- opting to revive the studio with a cash infusion and a new management team headed by Frank Mancuso.

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You Can Be Too Rich or Too Thin: Two events this year showed that no amount of money and fame can protect you from trouble. The career of Michael Jackson, the world’s biggest star, has been thrown into a tailspin by a 13-year-old’s accusations of sexual molestation. And actress Kim Basinger was forced into bankruptcy after a court found that she illegally backed out of an agreement to star in the film “Boxing Helena.”

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The Only Constant Is Change: Management stability remains something of a novelty in entertainment. Look for more musical chairs in 1994 as the fates of executives such as CBS’ Jeff Sagansky, Tristar Pictures’ Mike Medavoy and Warner Bros. Records’ Mo Ostin are resolved. There will also be changes at Paramount, whether QVC or Viacom prevails.

And who knows? Dawn Steel may finally make up her mind about Turner Pictures.