Embassy Pictures

Embassy Pictures Corporation

Company type	Independent company
Industry	Film production and distribution
Founded	1942
Founder	Joseph E. Levine
Defunct	1986
Fate	Sold to The Coca-Cola Company (1985), then to Dino De Laurentiis Productions (1985)
Headquarters	United States , United States
Area served	United States
Key people	Joseph E. Levine, Robert Rehme, Norman Lear, Jerry Perenchio
Products	Films and television programs
Parent	Avco Corporation (1967–1982), Embassy Communications (1982–1985)

Embassy Pictures Corporation—also recognized as Avco Embassy Pictures and Embassy Films Associates—was a U.S.-based independent company specializing in film production and distribution from 1942 until 1986. The studio was behind prominent movies such as The Graduate, The Producers (1967 film), The Fog, The Howling (film), Escape from New York, This Is Spinal Tap, and Swamp Thing (1982 film), as well as television programs like The Jeffersons, One Day at a Time (1975 TV series), and The Facts of Life (TV series).

Established in 1942 by Joseph E. Levine initially as a distributor of international films, Embassy expanded its scope to include film production by 1945. The company was purchased by Avco Corporation in 1967. After experiencing difficulties throughout the 1970s, Embassy adjusted its strategy toward producing lower-budget genre films by the end of that decade. In 1982, television mogul Norman Lear and his business partner Jerry Perenchio acquired the company, steering it more toward television content creation. Ownership changed once more in 1985 when The Coca-Cola Company took over, only to sell it later that year to Dino De Laurentiis Productions.

Today, most of Embassy's theatrical catalog is under the ancillary rights management of StudioCanal, while the global television syndication rights for its films and series are controlled by Sony Pictures Television.

Origins and initial expansion

In 1942, entrepreneur Joseph E. Levine founded Embassy with the purpose of distributing foreign cinema within the United States. The firm ventured into film production three years later with the documentary Gaslight Follies, co-produced alongside Maxwell Finn.

Embassy established a strong market presence by securing U.S. distribution rights for the Japanese motion picture Godzilla (1954 film) at a cost of $12,000. Following a promotional investment of $400,000 under the rebranded title Godzilla, King of the Monsters!, the film earned $1 million in theatrical rentals. Subsequently, in 1958, Embassy acquired the French-Italian movie Attila (1954 film) for $100,000 and allocated $600,000 toward marketing efforts, resulting in $2 million in rentals. The company's significant breakthrough occurred with the 1959 release of Hercules (1958 film), featuring Steve Reeves and distributed via Warner Bros. Levine invested $120,000 on dubbing and audio enhancements plus $1.25 million on promotion, which generated $4.7 million in rentals and ignited interest in sword-and-sandal films.

Focus on art cinema

After releasing the sequel Hercules Unchained (1960), Embassy broadened its operations to include thirteen offices across the U.S., along with branches in Rome, London, and Paris. The company formed collaborations with Italian production house Titanus and producer Carlo Ponti, concentrating on distributing European art films. In 1961, Embassy secured North American rights for Two Women, directed by Vittorio de Sica and starring Sophia Loren. Through strategic marketing campaigns featuring prominent advertisements and targeted Academy Award efforts, Levine helped Loren become the first actress performing in a foreign language to receive the Academy Award for Best Actress.

Embassy's distribution portfolio also encompassed critically lauded titles such as Divorce Italian Style (1961), Salvatore Giuliano (1962), Federico Fellini’s 8½ (1963), Ponti-produced Boccaccio '70 (1962), and de Sica’s films Yesterday, Today and Tomorrow (1963) and Marriage Italian Style (1964). Additionally, Embassy produced adaptations including The Thief of Baghdad (1961) and Rick Carrier’s Strangers in the City (1962).

Leveraging Ingmar Bergman’s acclaim, Embassy released his earlier works to American audiences such as The Devil's Wanton (1949) and Night Is My Future (1948). It also handled distribution for productions by Robert S. Baker and Monty Berman like What a Carve Up! (1962) and The Hellfire Club (1963). Other Ponti-associated titles distributed included Claude Chabrol’s Landru (1963), Jean-Luc Godard’s Contempt (1963), along with The Empty Canvas, The Ape Woman (1964), Casanova 70 (1965), The 10th Victim (1965), and de Sica’s later work Sunflower (1970).

Paramount Pictures partnership period

During the 1960s, Levine evolved Embassy into a full-fledged production entity. In 1963, he arranged a $30 million agreement with Paramount Pictures, wherein Paramount provided financing for films while Embassy received a share of the profits. This collaboration resulted in successful productions such as Harold Robbins' The Carpetbaggers (1964) and its prequel Nevada Smith (1966), alongside less commercially successful projects like Harlow (1965). The three-film arrangement was completed with another Robbins adaptation, Where Love Has Gone (1964).

Embassy also distributed several films featuring Stanley Baker, including Zulu (1964), Dingaka (1965), and Robbery (1967).

Towards the latter part of the decade, Embassy operated independently and produced notable works such as animated features from Rankin/Bass Productions—namely The Daydreamer (1966) and Mad Monster Party? (1967)—alongside critically acclaimed live-action films including Mike Nichols' directorial debut The Graduate, Mel Brooks' inaugural film The Producers, both released in 1967, and the award-winning The Lion in Winter (1968).

Transition to Avco ownership

Following the tremendous success of The Graduate, which became the top-grossing film of 1967, Joseph E. Levine capitalized on this momentum by selling Embassy to Avco for $40 million while retaining his role as CEO.

In 1969, Embassy broadened its scope by bringing Mike Nichols onto its board and acquiring his production firm, Friwaftt. Levine also settled a longstanding disagreement with Ponti and Loren, leading to the production of Loren’s comeback film Sunflower. That same year, Levine inaugurated Avco Embassy Records in collaboration with Hugo Peretti and Luigi Creatore, thereby expanding the company's portfolio.

Nevertheless, the 1970s saw a downturn in financial results. Notable successes during this period included Nichols' films Carnal Knowledge (1971) and A Touch of Class (1973). By 1973, Avco Embassy reported losses amounting to $8.1 million. Levine stepped down as president in 1974 to focus on independent production ventures, with Bill Chaikin succeeding him. By 1975, Avco Embassy had completely halted film production.

In 1968, Avco Embassy established Avco Embassy Television to syndicate its motion picture catalog. This broadcasting arm along with Avco Program Sales was sold to Multimedia, Inc. in 1976, forming Multimedia Entertainment, which today is part of NBCUniversal Syndication Studios.

Robert Rehme leadership era

Towards the end of 1977, Avco Embassy aimed to revive its production activities. In 1978, Robert Rehme was appointed president and chief operating officer, securing a $5 million budget for production. Under his guidance, the company concentrated on producing lower-budget genre films and found success with titles such as The Manitou (1978), Phantasm (1979), The Fog (1980), Scanners (1981), Time Bandits (1981), and The Howling (1981). This approach benefited from diminished competition following American International Pictures’ departure from the exploitation film market.

Rehme exited his position in 1981 after boosting company revenues from $20 million to $90 million. That same year, Tom Laughlin proposed a $24 million acquisition offer for the company but subsequently retracted it.

Norman Lear and Jerry Perenchio

In January 1982, television producer Norman Lear along with his partner Jerry Perenchio purchased the studio for $25 million, reinstating the Embassy Pictures name by removing "Avco." They transformed T.A.T. Communications into Embassy Communications, Inc., establishing Embassy Television as the production division and Embassy Telecommunications as the distribution branch. The company was responsible for popular TV programs such as The Jeffersons, One Day at a Time, The Facts of Life, Diff'rent Strokes, and Archie Bunker's Place. They also introduced new series including Silver Spoons, Square Pegs, Who's the Boss?, It's Your Move, and Gloria. Additionally, they ventured into television films with productions like Eleanor, First Lady of the World (1982) and Grace Kelly (1983).

Toward the end of 1982, Embassy purchased the Andre Blay Corporation, rebranding it as Embassy Home Entertainment; prior releases from their film catalog had been distributed via Magnetic Video.

By 1984, Embassy Pictures had evolved into Embassy Films Associates. That year, it handled distribution for Fanny and Alexander, which earned the Academy Award for Best Foreign Language Film.

During this era, director Rob Reiner initiated his filmmaking career with Embassy releases such as This Is Spinal Tap (1984) and The Sure Thing (1985). His third project, Stand By Me (1986), began under Embassy's banner but faced cancellation following the studio's sale to Columbia; Norman Lear personally financed its completion to guarantee its release.

Coca-Cola and others

On June 18, 1985, Lear and Perenchio sold Embassy Communications, including Tandem Productions, to The Coca-Cola Company for $485 million. At that time, Coca-Cola was also the owner of Columbia Pictures. Later that year, on November 1, Coca-Cola divested Embassy Pictures to Dino De Laurentiis but retained control over Embassy’s television division. De Laurentiis merged Embassy into his De Laurentiis Entertainment Group (DEG), while the home video sector became Nelson Entertainment, overseen by former DEG executives.

Despite acquiring Embassy, De Laurentiis did not gain rights to forthcoming films such as Crimewave, Saving Grace, and the Stephen King adaptation Stand by Me, which remained with Lear and Perenchio.

In the early 1990s, ownership of the Embassy library changed hands due to bankruptcies among companies holding different portions. Assets from De Laurentiis transferred to Parafrance International and Village Roadshow; meanwhile, Nelson’s holdings were taken over by Crédit Lyonnais Bank before being sold to PolyGram. Nelson’s parent firm, NHI, continued operations into the mid-1990s. In 1994, French production company StudioCanal acquired Parafrance's assets and currently holds most ancillary rights to the Embassy theatrical library.

In North America, video distribution rights for much of Embassy’s film catalog are held by Amazon MGM Studios through its Orion Pictures division following its acquisition of PolyGram’s pre-March 31, 1996 film library—including the Epic catalog that encompassed Nelson Entertainment. Sony Pictures Television maintains worldwide television syndication rights to the theatrical library as well as full ancillary and distribution rights for content produced by Embassy Television.