PRODUCER SATISFYING NICHE FILM MARKET.

Byline: Greg Hernandez Staff Writer

SHERMAN OAKS - When the urban comedy ``Barbershop'' became a crossover box-office hit last fall, its success caught the movie industry by surprise. But it was no surprise to Tanya York, an independent film producer and distribution executive who has been scoring major success with direct-to-video urban fare since the late 1990s.

``Everybody in the world has perceived urban as the hot new genre,'' York said recently, sitting in her office just off Ventura Boulevard. ``We started releasing films five years ago when nobody else was releasing urban films and established ourselves in the market.''

York, 33, founded York Entertainment 13 years ago and has shepherded its growth into a major player in the home video industry. Its recipe for success? Not competing head-to-head with fare being released on home video by the major studios.

``(Tanya York) is pretty visionary - an aggressive player in the independent video production area,'' said Scott Hettrick, editor of Video Business, an industry trade publication. ``She was the first one to get into the urban market and to see that it was going to be a huge market.''

In recent months, York has been getting increased recognition that has included the November cover of Entrepreneur Magazine under the headline ``Young Millionaires'' and being named to The Hollywood Reporter's annual Women in Entertainment Power 100 list.

``I think I'm like 14 places away from Barbara Walters (on the power list), and I'm right before Katie Couric, so I watch Katie Couric every morning and I wonder, How did that happen?'' York said with a laugh.

York Entertainment releases more than 50 films a year, a handful of which are produced by the company itself.

Ironically, the success of ``Barbershop,'' ``Brown Sugar'' and new releases ``Biker Boyz'' and ``Deliver Us From Eva'' mean a more crowded marketplace, which is forcing the company to branch out into other areas. It had its biggest success yet with the recent action flick ``Bling Bling,'' which is high on the rental charts. There is also a line of Latino- themed films available, and the company releases its first horror film, ``Scare Crow,'' next month.

``All of the products that we have released, we tend to target underserved markets at that time and it has worked for us,'' York said. ``They are small markets not being served by the big studios. The big studios tend not to pay attention to the smaller markets until something big happens like 'Barbershop' and '8 Mile,' then they go crazy on that genre until it burns out.''

``Scare Crow,'' to be released March 25, is being touted by the company as a ``brand new creature franchise'' and is an example of how the company has been open to shifting directions to meet changing public tastes.

``They understand what the people really want, are very cost-effective and prudent,'' said Emmanuel Itier, who wrote and produced the horror film. ``They gave me enough freedom but at the same time knew what they needed.''

While York declined to discuss financial specifics about her privately- held company, it has been reported that she expected 2002 sales to hit $20 million for the first time. Her company just expanded to the international market two years ago and now has about 50 titles available for foreign sales.

Almost all of her product is carried by the major chains Blockbuster and Hollywood Video and by Wal-Mart, the largest retailer of home video, as well as other major retailers. As a result, they don't do a lot of consumer advertising or marketing, with most of their marketing geared to the film industry.

``Our products are secondary products,'' York said. ``It's not what is driving consumers, but it's product that is priced right and it's genre specific. The consumer will go in there and the title appeals to them and they'll buy it.''

Finding product is not a problem. The company has about 100 films submitted each month from hopeful filmmakers looking for a distributor. York personally screens at least part of each submission and buys an average of about four films each month.

``There are a lot of wonderfully made films that we pass on that just don't have a marketing hook,'' York said. ``I know within a couple of minutes if it's something that we're interested in or whether it's a pass. I'm thinking about how I am going to sell it and separate it from the 10,000 other movies that are in the video store.''

The first genre the company had success with was the erotic thriller, which lasted a few years, then they transitioned into the sci-fi genre and mainstream action films with B-action stars, and then moved into urban.

``We have a lot of different product lines; urban is just one of them and at any given time during the history of the company we usually have two or three or sometimes as many as four different lines going, depending on where we are,'' York said. ``As one phases out, another one kicks in and becomes stronger.''

CAPTION(S):

2 photos

Photo:

(1 -- color) TANYA YORK

Keeping ahead of the studios.

(2) Sanaa Lathan, left, and Taye Diggs in a scene from ``Brown Sugar''