A Case Study & Look At Marvel Studios

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While I originally intended this as a straight-up news article regarding the dismissal of the Marvel Creative Committee, it has got me to think about the company, its management system and how the restructure will affect future ventures. I am a student who was specialized in business and marketing during my Bachelor’s so while I confess I lack experience to be called an expert, I still thought it might be interesting to look at Marvel Studios, the company itself, in the following Case Study. So, I will not try to talk about how the films are marketed individual, but only focus on communications aspects when they are appropriate. Neither will I discuss the films themselves, this is merely me taking a look at the history and the future of Marvel Studios. I will publicly state that everything within this paper/article/case study is objective except if I clearly state a subjective opinion. All sources used will be given at the end of the article if anyone wants to read them.

Case Study-Structure
I won’t be looking at the entire history of Marvel Studios, as I lack the appropriate sources to truly take a look into the entire history, but with recent reports I will try to rhyme together the situation of how it has worked since Iron Man to this point and what could potentially happen in the future. Furthermore, I will throw in how this affects the Marvel Cinematic Universe in general and maybe even throw in my own subjective outlook on what potential changes might still be required to ensure its future ventures. So, without further ado let us get into the matter.

If you want to skip specific parts, then here is a short overview of the chapters that will be tackled within this Case Study.

1.    Marvel Studio’s Beginnings
2.    The Avengers Effect
3.    The Two Sides Of The Same Coin
4.    When Expectations Change
5.    A New Age, A New Structure
6.  What Future Does It Hold?


Marvel Studio’s Beginnings
At first glance as an external party, it seemed that Marvel Studios is a small independent film production company that focuses on using the core characters from the Marvel brand. In simple terms, that is exactly what it is, as the film company at the time was not a part of the Disney license and had to produce its films together with Paramound Pictures so they could acquire enough funding to even make Iron Man and The Incredible Hulk at the time. As the characters original slated films have been in developments hells at the various companies, they were able to retrieve the rights at the time and start production on the films. Enough pressure was laid on the production of Iron Man, as its financial success would ensure the future of Marvel Studios or even potentially its downfall.

After Iron Man turning into a hit and the small Easter Egg of a potential Avengers film buzzing up headlines, it seemed like the future was bright for the company as it started producing its next films focusing on Captain America, Thor and a sequel to Iron Man, which would all lead into an Avengers film. Trouble was that most heavy hitters of the Marvel brand weren’t with the actual company and Ant-Man, a film originally slated to appear even before Iron Man, was trapped in development hell at the time, they had to try and sell rather unknown characters. Even Thor, a character of Norse mythology, was a hard sell considering it had to fit into the at the time established Marvel Cinematic Universe. So, the Marvel Creative Committee at the time tried to keep an overview as much as possible so that it would keep a consistent tone and themes as they build their way towards the Avengers. These “showrunners” were the Alan Fine, who came from Toy Biz, Brian Mcihael Bendis, a famous writer for Marvel Comics, Dan Buckley, publisher of Marvel Comics and Joe Quesada, current Chief Creative Officer of Marvel Enterprise. In addition, they worked under the surveillance of Ike Perlmutter, who was quite famous for being stingy and adding more pressure to the company.

As a small company, they tried to use lesser known actors at the time to portray their famous heroes, as it would allow for cheaper contracts and even to create multi-film contracts keeping the actors contractually obligated to participate in the crossover film and even in the potential sequels. Already quite a risky move considering there was no true knowledge that their films wouldn’t even prove to be a success at the time. Scipts and their writers, directors and various film production members were forced to wait for feedback from three various parties each on different levels. This is a pure managerial horror for anyone, as it leads to many delays and especially in an artistic environment push many people away, something that had happened to Edgar Wright for Ant-Man, supposedly Petty Jenkins for Thor: The Dark World and could be the reason why Ava DuVernay decided against directing Black Panther.

So, you have a small independent company trying to make a living off of a limited amount of characters, as a plethora have been sold to other companies before they started their own independent productions, with a managerial structure that only got more complicated as Disney purchased Marvel, in a strongly artistic environment, which can scare away a considerable amount of directors, writers and many more. I think it is a miracle that we have received the products that we have up to this point.


The Avengers Effect
Here comes the hardest part for a small starting company. Up to this point the most successful film was Iron Man 2 with an international gross of around $630 million, which is already quite a considerable success, but Thor only truly made around $450 million, which is certainly a success, but a regular one for most companies. This alongside Captain America: The First Avenger making $370 million was certainly proof that Marvel Studios was not just a small producing company anymore, but a growing and ever-expanding business. Superhero films were slowly growing, while some would point out this is the start of the “superhero boom”, it was more the quiet before the storm. What was the storm you ask? None other than The Avengers themselves.

I have a hard time believing anyone expected Marvel’s The Avengers to become the third (now fourth) highest grossing film of all time and imagine if you are a small company with some considerable great successes and some plans for the future are suddenly told that what you expected to be at least a great success at the same level of Iron Man 2 was suddenly a behemoth of a film making headlines. From a financial stand point, this opens up gates no one would have ever believed, which is certainly proven in the upcoming Phase 3 of the Marvel Cinematic Universe, but from a business or even communications standpoint this is dangerous.

Some might be wondering, isn’t this great? I mean, it makes Marvel Studios very publicly known and certainly a headline grabber, as it was the one who started the superhero phenomena. Yet, from a Public Relations standpoint for a small company, where I am unsure if they outsource certain functions or not, this means more work, more risks and the scariest part, more backlash. Anyone remember Iron Man 3’s reaction by the public? While being a financial success it was critically pandered and we had the first time someone voiced the words: “Is this a sign for Superhero fatigue?”, which to a certain degree was proven wrong as Thor: The Dark World and Captain America. The Winter Soldier proved to be quite successful. Then, throw in another huge surprise hit with Guardians of the Galaxy, which made much more money and started the expectations of the “Avengers effect”. Every film that came out afterwards was going to be a proven success, as “Marvel Studios cannot fail”. If I was in the PR team behind them, I’d get scared because how do you walk away from that when you actually don’t meet expectations.


The Two Sides Of The Same Coin
Here comes Marvel Studios biggest issue, the rapid expansion yet separation of the Marvel Cinematic Universe itself. ABC’s production of Agents of S.H.I.E.L.D. was not what people expected and at Marvel’s high-point became quite a success in its pilot episode, but lost viewers due to these expectations just not aligning as they should. What did they expect? Naturally, you hear Joss Whedon you already have high expectations for the TV show and in addition, people expected the company was going to bring the Avengers to the small screen, but were met with something completely different. While Agent Carter did not quite draw in the audience it wanted as well, it seemed that Marvel could do not right on television.

What is it’s biggest flaws here? Marvel Television is headed by Jeph Leob, who has proven to be quite a successful man in the industry, but the problem is that due to Marvel Studios focusing on film and keeping its Television department a complete separate entity, you not only managerial separate them, but also publicly. There have been public statements that drive the nail in the coffin that they are separate entities, especially when film actors are willing to join the show but never are given even the offer. You add to the public feeling that these stories told on television are not an essential aspects to the films, and while Agents of S.H.I.E.L.D. has had many storylines that directly tie into the films, even introducing elements that would only be explored later on, it feels like this is not necessary to the entire MCU experience. This might actually be even more of a communications issue, as TV markets film, but the cross-marketing aspect is never truly won if the films don’t market television.

Yet, suddenly something changed as Marvel made quite a massive deal with Netflix to create four separate TV shows that would all lead into a mini-series titled The Defenders. It is the television equivalent of Phase 1 that aims to explore the much darker regions of the MCU, which Kevin Feige explained would never truly be looked at in the films, so the focus is laid on Netflix. Daredevil was a massive hit, which actually proved one thing, the audience while interested in the expanded universe known as the MCU, are completely focused on seeing the superhero aspect, something that Agents of S.H.I.E.L.D. is trying to sell with the upcoming third season’s Secret Warrior storyline. If you consider it, without that show we wouldn’t have the Netflix deal, even if some still tend to heavily critique it online.


When Expectations Change
Now, we have the next issue that was probably a question of time. Avengers: Age of Ultron tried to top every storyline from the first film and meet expectations, but that was in a way the issue. It only met expectations, something Agents of S.H.I.E.L.D. couldn’t truly achieve, as expectations were already too high and the same happened to Age of Ultron. It tried to up everything from the first film, and had a much more distinct Whedon touch in addition to being the “middle” film that needs to build up towards Phase 3 and Thanos’ arrival. What seemed perfect at first glance, was almost meant to not achieve what it could before, because if you think about it, Avengers already met something no one expected it to. Yet while already many articles were stating that the “superhero fatigue” has finally come, Age of Ultron as still a considerable success that probably came out in the worst time possible, shortly before 2015’s surprise success Jurassic World. It did pass the billion dollar mark, which has happened so often at this point it is almost expected to a ridiculous degree, but because it didn’t surpass the first it is almost considered a quasi “failure” by the public or at least its greatest critics.

This year certainly proved one thing, the film industry is a gamble on a massive scale, we are talking about investments between $100 to $200 million dollars if you think about Summer Blockbusters alone. After Age of Ultron slightly missed the mark set by the first, came Marvel’s first original film focused on a complete new superhero since 2011 and a year after the first new first installment with Guardians of the Galaxy. While Ant-Man was not a surprise hit like Guardians of the Galaxy, it still made around the same money Captain America: The First Avenger did. In addition to Fantastic Four being the bomb that it was, articles on the matter have probably written themselves at this point. Yet why is Ant-Man, probably the most difficult character to sell with a production history that many could describe as poisonous to the films success, still considered by the public as another showing that superhero films are dying out?

With Warner Bros. now having officially stated their plans until 2020, they forced Marvel to start thinking similarly and they officially announced their plans up until 2019 for Phase 3. Competition is getting stronger and the rivalry with 20th Century Fox regarding the rights to specific characters is certainly not helping the situation. Opening up a brand new possibility was making a risky deal with Sony Entertainment to share the rights to Spider-Man may could be a new direction for Marvel Studios, it still seemed like the future was going to be quite a difficult one. Fantastic Four was a colossal failure for Fox, so now the question remains what will happen with those characters in the near future. Will they also undergo a similar deal like Sony Entertainment? Or is the competition opening a completely new issue? Did this maybe force Marvel Studios to rethink everything?


A New Age, A New Structure?
Now, while I probably already lost quite a considerable amount of readers, we come to the recent events. Marvel Studios has completely restructured itself due to the rise in competition and simply due to the pressure behind the scenes. The audience is getting more and more hyped for each film while the general consensus among the media seems to be in regard to the superhero films slowly reaching their limit before it even began. Not helping is the fact that many auteur in the industry commonly voice their opinions against the genre, even Steven Spielberg recently stating it will follow the same path the Westerns did, but the question remains how does this affect Marvel Studios, the focus of this case study?

Well, Marvel Studios unlike 20th Century Fox and Warner Bros. only sells superhero themed films, so unlike them they have no other products to truly sell. They cannot make a random artistic piece focusing on a young couple trying to get through life, or even just a blockbuster film focusing on a post-apocalyptic world with one lone survivor. People will see the Marvel Studios logo and at this point expect a superhero film or at least heroic characters that all share the same universe. Anything that happens to this industry will greatly affect the company, which while still greatly successful is still a small company in comparison to others with a very strong and complex structure it needs to work with.

So, maybe the competition, the public view and opinions, which commonly have turned into high expectations before the film, great reviews during the film’s release that then end in voicing that it was just mediocre to begin with, forced its current president Kevin Feige to take a strong, firm look at the company within. Any business will tell you that a companies success starts within the company, so a lean and functioning management can make or break the future a company, especially if it seems they are fighting each other. So up to this point, Marvel Studios was battling against Perlmutter, its own Creative Committee to create more artistic films and then having to adapt to regulations made by Disney Studios. It was only a matter of time until their hands were forced.

And so without hesitation, it seems Kevin Feige managed to make Marvel Studios a more independent company by trying to bypass the publicly and supposed stingy middleman, Marvel CEO Perlmutter directly to Disney, which should decrease delays and allow more flexibility for the company itself. Then they decided to get rid of the Creative Committee that also halted many productions and led to supposed creative differences that in the long-run have publicly scarred the companies reputation among the more creative directors in the industry. Edgar Wright being probably the most infamous event especially considering how close before production it had occurred.

From a personal standpoint, this is a natural progression of a company that is growing far beyond what it started and had more and more expectations thrown at it. Kevin Feige has certainly proved himself to be a juggernaut within the industry, so I am sure that he has a clear vision in mind with this restructure. To a certain degree, it also seems to be something Disney wanted, as it would probably would minimize the efforts to ensure a film can be produced and give more creative freedom. Disney has garnered quite an experience in handling subsidiaries such as Pixar and now LucasArts with the Star Wars franchise. If you think about it, being a part of such a large corporation, it is even a wonder that it managed to give itself a much more flexible environment.

Personally, I think there is one major flaw with the way it was restructured. The Marvel Television division is still under Perlmutter’s control and some rumor that the Creative Commission is still a functioning element in that division. My problem here is that Marvel Studios and Marvel Television are still separate, or at least the Marvel Cinematic Universe aspects are. To a certain degree, the MCU has far surpassed Marvel Studios at this point and the universe in itself needs one structural system, not two separate ones. Both the ABC and Netflix produced shows are still an important element of the MCU, and per se should probably be more a part of Marvel Studios. This restructuring of Marvel Studios has made the direct separation of TV and film a much more apparent issue.


What Future Does It Hold?
Where is Marvel Studios heading from this point on? Well, from a public standpoint this could mean that the films might go more into a creative direction and could potentially show a new level of film production. Sadly I do not work for Marvel Studios yet so I, just as anyone else, can only guess where they can go and how much this truly will influence them. My professional guess is that all films that have yet to be produced, maybe even Doctor Strange to a certain degree, as it seems to be quite a passion project of Marvel Studios president and could be the most distinctive film in their repertoire. It could even strongly influence the way they tackle Black Panther, which could become quite a controversial film and hold a very strong political message.

My only concern is probably how this will affect the TV division. Considering that it is still separated I don’t believe the quality of the productions will be affected, as Luke Cage is now officially starting its production and we are still anticipating the official word on Jessica Jones’ release date. Yet I worry that the marketing departments will still be strongly separated and I sadly still won’t expect seeing a trailer for Agents of S.H.I.E.L.D. before or after a film. I know its probably bizarre to some, but just a short exclusive snippet with the words: “Explore another aspect of the Marvel Cinematic Universe” could go a long way to just put a thought in the heads of the general audience. Yet, this is a just a personal wish for the future of the MCU.

We still have a long way to go with 4 more years of films planned and I am certainly looking forward to what Marvel Studios has in store for us. This entire case study is very much on the surface and bare bones due to the limitations of information I can access. Still, there is a lot of history there and some events that give us a look at the behind-the-scenes. Marvel Studios is famous for its secrecy and one must respect in a world of transparency and connections through World Wide Web.

Yes, I went a little further than I even expected with this, but I hope I could maybe give a glimpse and overview (well not a short one) of Marvel Studios history, current events and even potential future. Leave a comment below and your thoughts on the whole thing.

Sources:
www.heroichollywood.com
www.themcuexchange.com

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