A24 To Reportedly Expand To “Action And Big IP Projects” After Recent Box Office Losses

Last year, A24 became the first studio in the Oscars‘ 95-year history to sweep the six major awards categories with “Everything Everywhere All At Once.” So things couldn’t be better A24, right? Not so fast, says The Wrap. The outlet reports that the small studio that’s made big waves since it debuted a decade ago will switch up their strategy after several of its theatrical releases lost money this year. In short, that means more commercial films from A24, a pivot from the studio’s brand.

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An agent with insider knowledge of the studio told The Wrap that A24 acquisition executive Noah Sacco went around to talent agencies this summer looking for “action and big IP projects.” And that’s what audiences should expect more of from A24 in the near future. The agent confirmed that the studio is “deemphasizing the traditional character/auteur-driven dramas” for more fare geared toward the general audience. “Everyone in the independent film space is aware that A24 needs to pivot to more commercial films alongside its arthouse slate,” a distribution executive told TheWrap. “With a $2.5 billion valuation, it’s pretty obvious that they need to expand into more commercial films.”

But what does this really mean for A24? Will the studio give up what’s made their brand so popular with cinephiles for the past ten years? Or will it keep doing what it’s always done while also “doing more” commercially viable stuff, as someone close to A24 put it? “Widening the aperture” is something A24 arguably already does. The same source said that the studio “is always trying to find new ways to reinvent themselves from the documentary space,” which includes Steph Curry‘s upcoming doc for Apple TV+. And then there’s adaptations like Paris Hilton‘s new scripted TV show, its “Friday The 13th” prequel series “Crystal Lake” for Peacock, and Alex Garland‘s upcoming action epic “Civil War.” A24 is also getting into the remastering business, with its 4K re-release of “Stop Making Sense“ in theaters now.

So if A24 already has an expansive release strategy, why expand it further with action movies and big IP? That’s because, despite producing Oscar Best Picture winners in the past seven years with the Daniels‘ film and Barry Jenkins‘ “Moonlight,” a lot of A24’s films lose money. “Everything Everywhere All At Once” is the studio’s first and only film to cross the $100 million barrier at the box office. And while its teen horror movie “Talk To Me“ grossed $90 million worldwide this summer, other recent releases have tanked with audiences. That includes Ari Aster‘s “Beau Is Afraid,” which lost $35 million, 2019’s “Waves” and 2021’s “The Green Knight,” among others. As always, money is the name of the game in Hollywood, and A24 needs to produce safer releases to keep it rolling in.  

But the studio won’t move away from auteurist fare entirely. A production executive close to A24 also told The Wrap that it’ll still release dramas from directors like Aster, Trey Edward Shults, and David Lowery, just less of them all around. And this is the same direction other small indie studios went to survive, too.  Miramax, The Weinstein Company, Annapurna, and Paramount Vantage all attempted to shift their focus after successful runs of auteur fare, to varying degrees of success. “The auteur business is a lousy, high-risk business that does not attract potential buyers,” said the top agent. “That’s a big problem if you’re looking to sell or seek additional investment.” So if A24 wants to remain viable in the film marketplace, it must adjust its tactics.

But that doesn’t mean the studio must also get bigger. “Auteur film labels never last unless they stay small, like Sony Pictures Classics,” the top agent continued. “Whenever, they go big, they fail.” The Wrap cites films like P.T. Anderson‘s “There Will Be Blood” and Alexander Payne‘s “Nebraska” as two films who, despite high marks from critics, floundered at the box office, leaving its studios crippled financially. But why are those films failures despite their critical accolades? “Because no one watches those movies,” the top agent said. “A24 will obviously win awards, but there’s only so long you can lose money.”  

So what does this mean for A24’s future? If anything, snagging some big IP won’t change the studio’s brand of heady, high-concept, director-driven cinema. But expect A24 to release more stuff on top of those kinds of dramas. The studio already has 15 releases in theaters and streaming this year, and may expand to even more in 2024 and beyond. That’s simply to weather the potential losses from its art film fare. “On one hand, a large number of films being released means a larger library, which is obviously more attractive to prospective buyers,” the agent said. “On the other hand, too many films crowds the marketplace. But the bottom line is that auteur films don’t make any money and are super risky. It’s just not a good long term strategy. They have to have a good balance of both.”

And A24 looks to strike that balance moving forward. It’s not likely the studio will lose the identity it has with film audiences by producing more commercial stuff. But be wary, filmgoers: you may see A24’s iconic logo in front of some movies that feel altogether less risky than what it usually puts out soon.