Business
On a Hollywood studio lot, a new New York comes to life
Last summer, when the Hollywood writers’ strike had shut down film and television production, a crew of scenic painters at the legendary Fox Studio Lot took advantage of the lull to mess up New York City.
Work had recently been completed on a new set of façades meant to mimic Manhattan streets, but the result was too pretty and clean. Even the smooth gray concrete curbs looked suspiciously fresh.
“After the curbs were perfectly poured, we had a gentleman with a jackhammer come in here and chip away at them,” said Gary Ehrlich, president of studio operations. “It was slightly heartbreaking to see.”
Today, the curbs are suitably beaten up, with dings and black smears as if tires had been rubbing against them for decades. Fire escapes look corroded and other metal fixtures such as banisters have been coated to look old or rusty, while walls appear water-stained. A patina of age has settled over this faux city.
A film crew gets ready for a shoot at the new New York set at Fox Studios in Los Angeles on March 26, 2024. The new set that is different from conventional backlot façades because it has stages inside the New York “buildings” where filming can take place.
The painstaking besmirchment of New York Street was one more twist in the long saga of one of filmdom’s most famous outdoor sets. Looming near the front gate like an adult-sized playhouse, an earlier version of the set and now the new one have long served notice to visitors that they have arrived at a movie studio that is itself a leading character in Hollywood lore.
Its lineage is suitably rich in Hollywood flavor: In 1967 Fox was preparing to shoot the film version of “Hello, Dolly!,” a Tony-award winning musical set in 1890s New York City that ran for years on Broadway. The script included a spectacular outdoor parade with thousands of extras, and studio executives determined that it would be impossible to shoot on location in New York because the city had changed too much.
Fox production designer John DeCuir, who had already won Academy Awards for his design of “The King and I” and “Cleopatra,” came up with a streetscape that required more than 500 workers to labor for four months to build. The $2.25-million price tag made it the most costly movie set built to date, the UPI news service reported at the time.
It required more than 300,000 feet of board lumber and 22 miles of telephone wire strung between poles, the way it was in old New York. A painted 11-story office building façade obscured the view of the Century Plaza Hotel looming next to the lot, according to Barbra Archives, which chronicles the career of “Hello, Dolly!” star Barbra Streisand.
Barbra Streisand marches with a band in a scene from the 1969 romantic comedy “Hello, Dolly!” filmed on Fox’s New York set in Century City.
(John Springer Collection / Getty Images)
Dominating the street was a replica of an elevated train station and a steam locomotive acquired from a sugar plantation in Hawaii, where it had been used to transport workers.
On July 16, 1968, the Valley Times reported, “The parade stretching one-fifth of a mile and comprised of 675 persons in 16 units passed through a crowd of 3,108 film extras” in period costumes. Among the performers were the UCLA marching band and the Budweiser Clydesdales. The director was actor-dancer Gene Kelly.
As impressive as the set was, it was intended to be temporary, said Michael Whetstone, a production designer who worked on building the new version of New York Street.
“It was supposed to be torn down but wasn’t because it was too expensive” to remove, he said. At the time the studio was reeling from financial setbacks including a $30-million loss on “Hello, Dolly!,” according to the New York Times.
Maintenance and prop makers James Scobie, left, and Norm Greene, work on the façade of the new New York set at Fox Studios .
The set enjoyed a second, money-making act in the years that followed as Fox rented it out for use on pictures that included Warner Bros.’ comedy “Up the Sandbox,” starring Streisand, and MGM’s musical “New York, New York,” starring Liza Minnelli and Robert De Niro. Among the television shows that used it were “Charlie’s Angels” and “Moonlighting,” while Bruno Mars, Lady Gaga and other musicians used it for music videos.
But a few years ago, with the set showing its age, the studio started considering its replacement, Ehrlich said. “It had been exposed to the elements for five decades and was past its useful life.”
Fox tapped Culver City architect Nathan Moore of House & Robertson Architects to design something sturdier.
Construction required 49 tons of rebar and more than 1,000 cubic feet of concrete. The set is held up by 260 tons of structural steel and backed inside with 4,400 square feet of catwalks. Lighting and other electrical functions are supported with 21,000 square feet of conduit and wire, allowing productions to hook up to house power instead of rolling in generators. The set also had to comply with building codes and be tracked by city building inspectors.
The new New York Street was made to look like the city in the mid 20th century, a decision that required detailed craftsmanship such as window heads and sills that would have been carved out of wood in years past but were instead fabricated out of plastic foam and finished with plaster. Windows were installed to be easily replaced so productions can break them when scenes call for it.
Whetstone oversaw the project and, as part of his research, made several trips to New York, spending long hours on foot trying to get a sense of how light plays on buildings at night.
“I was literally walking Lower Manhattan from 10 p.m. to 4 in the morning taking pictures,” he said.
Where the original “Hello, Dolly!” set was based on a commercial section of 1890s New York suitable for a parade, Fox elected to make the new set feel like a neighborhood from a later era.
“It’s more Lower Manhattan, more Bowery,” Whetstone said. “Definitely the Lower East Side.”
A film crew member waits to set up for a shoot at the new New York set.
While the set is “a default vision of New York City,” said Whetstone, it also is intended to stand in for any major city. Through the years, Fox’s New York Street has subbed for Chicago, Washington, D.C., and Pasadena.
Even though improving camera technology through the years has made it easier to shoot on location, there are reasons filmmakers keep shooting on studio lots, said Jason E. Squire, entertainment podcaster and professor emeritus at USC School of Cinematic Arts.
As filming equipment and cameras got lighter and more portable, the more free-flowing New Wave cinema that emerged in the late 1950s and ’60s employed provocative camerawork.
“This liberation led to people shooting off the studio lot,” Squire said. “Filmmakers wanted to get away from the studio.”
But it has remained expensive to shoot a large-scale production in the real world with all the vehicles, equipment and personnel required to be transported and managed on-site.
“One of the key decisions early in any production is whether to build sets on a lot or shoot in a real location,” Squire said. “That depends on how intricate the sequences are going to be, how intimate. It’s a judgment call and a money call, and the money usually wins.”
Shooting behind studio gates also prevents uncomfortable collisions between fantasy and reality.
“On the lot you don’t have interference from civilians,” Squire said. “You can control traffic, you can control lighting. All of the equipment is at your beck and call.”
Whetstone recalled having to flee location shooting in downtown L.A.’s Arts District when working on Season 1 of “New Girl,” a Fox television comedy starring Zooey Deschanel that premiered in 2011.
“We started out shooting in downtown Los Angeles, and by the end of our fifth night shoot we had angered so many of the neighbors around in the community that we ended up building downtown L.A. on the Fox lot,” Whetstone said.
Gary Ehrlich, president and general manager of studio operations at Fox Studio Lot, shows off the scaffolding for lighting inside one of the buildings in Fox’s new New York Street set.
The makeover of New York Street is in addition to a planned $1.5-billion upgrade of the Fox Studio Lot announced last year by Fox Corp. that is to include more soundstages and offices. Fox Corp. retained ownership of the lot when Walt Disney Co. bought most of 21st Century Fox’s entertainment assets in 2019.
The upgrades come as the real New York mounts an aggressive effort to lure TV and movie producers from L.A. by building new studios and soundstages.
On New York Street in Los Angeles, Fox also was able to transform the set behind the façades, adding 4,000 square feet of interior space that makes it easier to meld outdoor and indoor action. The studio declined to reveal exactly how much the new multimillion-dollar set cost, but Fox wants it to stand for another half-century at least.
“This project was approached not just as temp architecture but as something more permanent,” Whetstone said. “We want this to last a long time.”
Disneyland Resort in Anaheim will offer $59 tickets for select evening admission to either theme park as part of a new promotion.
The one-day, one-park evening ticket offer will allow attendees to enter Disney California Adventure at 5 p.m. or Disneyland at 7 p.m. Park reservations are still required, as has been the case since the COVID-19 pandemic.
The offer only applies for admission from July 12 through Aug. 5 on Sundays to Wednesdays.
Disneyland Resort is commemorating its 70th anniversary through Aug. 9, and has introduced new shows and additions to rides as part of the occasion.
Walt Disney Co.’s theme parks and experiences business are a crucial boost to its finances, making up about 56% of the company’s operating income last fiscal year.
During the Burbank-based company’s most recent earnings call in May, Disney executives said attendance at its U.S.-based parks was down 1% compared with the prior year, a shift they attributed to “continued softness” in international visitations. However, the company said at the time that it was starting to move past those issues.
Disney’s experiences division reported $9.5 billion in revenue in that fiscal second quarter, up 7% compared with the same period a year ago, something executives said was due to higher guest spending domestically and more capacity on its cruise line.
An aging downtown office complex will be converted into apartments as part of an ambitious plan by local real estate companies to create 4,000 affordable housing units in Los Angeles.
The first project will be a $200-million makeover of the L.A. World Trade Center, a sprawling white elephant of an office complex on Figueroa Street built in the 1970s that will be turned into 512 apartments in one of the largest affordable housing conversions to date downtown.
Future projects being planned in the central city for delivery over the next five years will include other office-to-apartment conversions and new housing built from the ground up.
The 10-story World Trade Center, right, at Figueroa and Fourth streets in downtown Los Angeles, was built in the mid-1970s.
(Myung J. Chun / Los Angeles Times)
Behind the building campaign unveiled Monday are two of the region’s largest real estate companies, Jamison and Kennedy Wilson. Jamison is the city’s most prolific converter of offices to market-rate apartments and currently has a major makeover of a downtown office skyscraper underway for tenants who can pay top rents.
Kennedy Wilson, a real estate investment company based in Beverly Hills, owns Vintage Housing, which builds and operates affordable housing using tax credits and other state and federal financing to help fund it.
Vintage Housing and Jamison’s new affordable housing division, Arden Residential, will take on the campaign to build the housing where qualified tenants will pay rents below market rates.
Rents in the World Trade Center — which will be renamed Sky Castle when it opens in early 2028 — are expected to start at $937 for a one-bedroom unit. Some two- and three-bedroom units would rent for $1,100 and $1,300 per month, respectively, developers said.
Sky Castle will have shared amenities found in more expensive modern apartments, the developers said, such as a fitness center, resident lounge and co-working space. It already has six tennis courts on the roof, which may be converted to pickleball courts, Jamison Chief Executive Garrett Lee said.
The goal is to build higher quality affordable housing by using efficient construction methods Jamison has learned through building more than 8,000 market-rate apartments in the past, Lee said. The makeover of the World Trade Center will mark Jamison’s 15th conversion of an office building to housing.
The plan to redevelop the L.A. World Trade Center, bottom left, is one of the largest affordable housing conversions to date downtown.
(Myung J. Chun / Los Angeles Times)
The 10-story World Trade Center was built in the mid-1970s to fanfare saying it would be home to international companies. In 1976, The Times described the center as a place to prepare for an overseas trip where visitors could get passports and visas, as well as exchange dollars for francs, marks, rubles and other currency. There was a language school and branches of U.S., Swiss and Japanese banks.
By the mid-1980s, the 400,000-square-foot office complex covering a city block at Figueroa and Fourth streets had lost its international flavor and was falling out of favor with corporate tenants who were moving into glossy new skyscrapers on Bunker Hill and in other locations.
The building has been cleared of remaining office tenants to allow work to begin in August, Lee said.
Kennedy Wilson is a nationwide operator of market-rate apartments that has also moved into building affordable housing in the last decade, said Nicholas Bridges, global head of capital markets at the company.
Building affordable, workforce housing “in almost all cases requires public subsidies,” Bridges said, and Kennedy Wilson has developed expertise in assembling “a cocktail of public financing sources” that includes low-income housing tax credits and tax-exempt bonds.
In the past, many housing developers have shied away from building affordable housing because assembling the subsidies needed to make construction profitable is challenging.
An artist’s rendering shows what the L.A. World Trade Center could look like after being redeveloped into affordable housing. The new complex is to be called Sky Castle.
(Ian Camarillo)
“It’s complicated,” Bridges said, “and not for the faint of heart.”
Eligible tenants must earn between 30% and 80% of the median income in the area where the housing is built.
Jamison and Kennedy Wilson will develop about 15 affordable housing projects between downtown and the 405 Freeway, Bridges said, many of them in aging office buildings such as the World Trade Center that are already owned by Jamison and are close to public transit.
Substantial potential for affordable housing lies in L.A.’s underused office buildings, he said.
“In this post-COVID world, the way people are utilizing office buildings, particularly older office buildings, has just fundamentally changed,” he said.
It makes sense for developers of conventional multifamily housing to move to building affordable housing, Lee said, because the government supports it through subsidies, zoning reform and the fast-tracking of construction permits. The city of Los Angeles also recently streamlined its adaptive reuse rules to make it easier to convert office buildings to housing.
“There are a lot of incentives pushing us in this direction,” Lee said.
Comcast is spinning off its NBCUniversal entertainment and news media businesses into a separate publicly traded company, a move that would unwind an audacious play the cable giant made for the storied Hollywood assets 15 years ago.
The plan would put broadcast networks NBC and Telemundo, NBC News, cable network Bravo, streaming service Peacock, the Los Angeles-based Universal film and television studios, Universal theme parks and British TV service Sky in a new stand-alone company.
Philadelphia-based Comcast would remain in its core business of distributing pay-TV channels, broadband internet and wireless services.
The spinoff would be the second such move by Comcast in two years. Late last year, the Brian L. Roberts-controlled company cast off most of its cable portfolio, including CNBC, USA Network, MS NOW and Golf Channel to form a new entity called Versant.
But the maneuver failed to budge Comcast’s listless stock, which has languished for years as its primary business lost thousands of broadband customers.
Comcast executives needed to make a bolder move to mollify frustrated investors.
Comcast stock peaked at nearly $26 per share Monday before closing at $24.22, up roughly 4.5% from Friday. Still, the stock remains below its 52-week high of $34.34.
The plan announced Monday would unravel Comcast’s bold decision to acquire NBCUniversal from General Electric Co. in 2011. At the time, Comcast saw tremendous value in marrying NBC’s entertainment operations, including its then-lucrative cable channels, with its cable TV distribution service that Roberts’ late father, Ralph, launched in Tupelo, Miss., in 1963.
“They were two distinct businesses,” longtime cable analyst Craig Moffett wrote in a Monday note to investors. “Having them under the same roof didn’t make either better.”
Consumers shifted to streaming, and Comcast’s attempt to build a top-tier digital service, Peacock, has fallen well short of its goal. Peacock lags behind rivals despite billions of dollars in investment from Comcast.
The concept of unwinding its NBCUniversal operation began in earnest in the fall, when Comcast joined the bidding for Warner Bros. Discovery. Comcast executives knew they could ill afford to spend billions to buy a rival; Wall Street would have pummeled the company.
So Comcast offered to spin off NBCUniversal and pair it with Warner Bros., turning two original Hollywood studios into a new media colossus.
But 43-year-old billionaire David Ellison prevailed in the bidding, agreeing to pay $111 billion to capture Warner Bros. Discovery. Losing the auction forced Comcast to find a different path forward.
On a call with investors, Roberts said the separation would bolster the two firms as they navigate increasing competitive challenges while technology companies continue to transform entertainment.
“We asked ourselves three basic questions,” Roberts said. “One, can these businesses stand alone and have the heft to stand alone in separate companies? Two, do they have a clear, viable capital allocation path to invest? And three, is now the right time? And the answer we came back with was yes to all counts.”
A free-standing NBCUniversal, home of the “Minions” and “Jurassic Park” franchises, probably would be an acquisition target, as media companies have been consolidating in an effort to get more content and mass distribution for their streaming services. Ellison’s Paramount is on track to close its Warner Bros. purchase, which would combine such media assets as HBO Max, CBS, CNN, Paramount Pictures and Warner Bros. studios.
With its Sky business, NBCUniversal has a toehold in Britain and Europe at a time when Amazon and Netflix are flexing their global distribution muscles.
Comcast would be positioned to combine with another cable and internet provider, such as Connecticut-based Charter, which owns the Spectrum television service. Charter is in the process of buying the smaller Cox cable service, which also has operations in Southern California.
Comcast is expected to complete the spinoff next year and will retain an 19% stake in the new entity.
The timetable could put NBCUniversal up for grabs by 2028 — when the company is set to broadcast the Summer Olympics, which will be held in Los Angeles.
Comcast acquired NBCUniversal in 2011. The industry-reshaping deal combined the largest distributor of TV channels with a provider of top-rated TV channels and a movie studio. But the streaming revolution has decimated the cable television business. Traditional TV viewing has been in a steady decline over the last decade. NBC has relied heavily on NFL broadcasts, and more recently, NBA and Major League Baseball games to remain relevant.
NBCUniversal has invested heavily in its streaming service, Peacock, but has been unable to reach the scale necessary for profitability. Comcast‘s stock price has struggled as a result.
Roberts, chairman and chief executive of Comcast, will continue to be involved in the leadership of Comcast and NBCUniversal, working in partnership with the CEOs of both companies.
Mike Cavanagh will remain as CEO of NBCUniversal, and Comcast’s former chief financial officer, Michael Angelakis, will return to run Comcast after the spinoff.
“Perhaps the best part of today’s welcome announcement … is that Mike Angelakis is coming back,” Moffett, the analyst, wrote. “He will now helm the cable business, [which] is unequivocally good news. With Mike Angelakis’s return, Comcast has come full circle.”
Moffett added that, despite Monday’s announcement, the 2011 combination was not a complete bust.
“The deal to acquire NBCU from GE was financially brilliant,” he said. “It was structured so that Comcast paid for just half of the acquisition and then let NBCU’s own cash flow pay for the rest.”
Over the years, Comcast has raked in billions in profit from its media holdings.
Comcast executives on the analyst call played down the notion that the two companies were being positioned for another deal.
“Absolutely not,” Roberts said. “This is the right move to put each company in the strongest position to create value, fully monetize its assets and aggressively pursue its own organic growth strategies.”
Cavanaugh, who has been running the combined company for three years, sounded more like a buyer than a seller.
“Our plan for NBCUniversal and Sky is to build and invest for growth,” he said. “We have the freedom now to explore adjacent businesses where we have the right to play, and that’s thanks to the stability of our company and management team.”
The spinoff announcement comes a week after Fox Corp. announced its deal to purchase the streaming platform Roku for $22 billion. The deal is aimed at ensuring that Fox has a means to get its portfolio of sports, news and entertainment channels into viewers’ homes as the traditional pay-TV business continues to erode.
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