Vestron bites the dust

An article titled Another Indie Bites the Dust, written by Anne Thompson, was published by the LA Weekly on August 10, 1989 -- almost two years after the movie Dirty Dancing was released.

The article includes the following passages:

Back in the summer of 1987, Vestron Pictures president William Quigley, anticipating the company's first major opening, Dirty Dancing, told this column: "Dirty Dancing's wide release may be foolhardy. We're playing with our own money. If it doesn't work it will be very hard to ramp up another one."

Dirty Dancing turned out to be the biggest independent hit of its year, earning $25 million in domestic theatrical rentals (the share of the gross returned to the distributor), plus $36 million in domestic video revenues. It was also probably the worst thing that could have happened to the fledgling production-distribution company.

"After Dirty Dancing it was easy to think that lightning would strike again," observes Universal acquisitions director Sam Kitt. "It didn't."

Vestron has followed the pattern of success breeding failure that has struck so many independent companies in past decades, from American International Pictures to Island, Alive and Atlantic. The companies start small, raise money, have a success or two -- and begin to think too highly of themselves. They abandon caution, overreach and overspend, betray the canny strategy or blind luck that got them where they are, and go under.

The companies that survive tend to stick to their original game plan (Skouras Pictures), have libraries or subsidiaries (the Goldwin Company) or a lucrative franchise (New Line Cinema's Nightmare on Elm Street sequels) to buttress their risks.

Industry veterans recognize that the business is cyclical and dangerous: boom periods yield to recessions. they don't risk capital they can't afford to lose. But many novices, after a hit or two, think they can compete with the majors.

In February 1988, Quigley hosted a lavish, studio-style presentation of upcoming product for 4,000 or so attendees of Las Vegas' ShoWest exhibitor convention. He told the theater owners that the company that brought them Dirty Dancing would not only deliver a sequel (applause), but would provide a constant stream of top-notch product to their theaters. ....

The exhibitors were ... impressed by a personal appearance by Patrick Swayze.

Industry watchers wonder why Vestron didn't go into production on Dirty Dancing II right away. (It still has no start date.)

"Vestron went too quickly," says Kitt. "They didn't develop properly and, except in budget terms, they lacked a vision of the kind of movies they wanted to make. Their films ere off-center and review-dependent. A promsing movie like Parents just didn't get the reviews."

After ten unsuccessful released in 1987, another 16 in 1988 and eight in 1989, on June 30 [1989] the entire Vestron company was up for sale. Yet another indie had lost the gamble on trying to produce and distribute its own movies.

Vestron was unique in that it was a home-video company first and went into production in order to feed its video pipeline, hungry for A-titles.

"If you want to go bankrupt," states Skouras president Jeff Lipsky, "go into production. You can't produce movies as an independent. There is this mythical belief that making movies for $3 million to $5 million is safe and secure. But if you're spending seven figures, you're competing with the majors. And you can't risk money on projects shepherded by less than top, experienced production talent." ....

I found this article through Newspapers.com