UNIVERSAL EXECUTIVE TAKES FALL.

Byline: Dave McNary Daily News Staff Writer

The long-awaited ax fell Monday on Universal Studios chief Frank Biondi Jr. as the mild-mannered executive became the latest victim of the studio's dismal performance.

Biondi, 53, resigned as chairman and chief executive after Universal's ``Meet Joe Black'' delivered adequate but not blockbuster results on its opening weekend. That stretched the studio's hitless streak to 18 movies since it released ``The Lost World: Jurassic Park'' in May 1997, an apparently galling development to parent Seagram Co. since overall box office revenues have been surging upward at 10 percent annually in the United States.

``Someone has to take the fall, and `Meet Joe Black' was obviously the last straw,'' said analyst Barry Hyman of Ehrenkrantz King Nussbaum, who has a buy rating on the stock of parent Seagram Co. ``They're going to have trouble breaking even on it, so I am not surprised about Biondi. I'm not happy because it means more confusion, and that doesn't translate to a higher stock price.''

Biondi's departure, after 2-1/2 years in the post, underscores the uncertainty and turmoil that have hampered Universal since Seagram bought control in 1995 for $5.7 billion from Matsushita Electric Industrial Co.

The ouster puts Universal under the direct control of 43-year-old Seagram chief Edgar Bronfman Jr., whose family owns 32 percent of the Montreal-based liquor and entertainment company.

``Edgar has clearly decided he wants to run it himself,'' said Arthur Rockwell, an analyst with Drake & Co. and a former studio executive. ``He's trying to show he's smarter than Sumner Redstone or Rupert Murdoch, and that's an expensive game to play. You can destroy a lot of lives in the process.''

Departures such as Biondi's are common among underperforming studios, but Seagram's purge of top executives has been especially bloody. Production chief Mark Platt, marketing chiefs Kathy Jones and Buffy Shutt and operations czar Howard Weitzman all left last spring, and there is speculation that Universal Studios president Ron Meyer and film division chief Casey Silver will be sacked.

Universal's instability has held down the price of Seagram shares compared with rival stocks. Wall Street was unimpressed with Biondi's departure, and Seagram's already depressed stock, which topped $45 in May on optimism over its pending buyout of PolyGram NV, slid 25 cents to $34.0625.

``We're going to sit on the fence for a while,'' said Linda Bannister, an entertainment analyst with Edward Jones who has a ``hold'' on the stock. ``Edgar may not have as much understanding of what it takes to run a company as Frank Biondi did. We're not saying that he's going to fall flat on his face, but we are going to keep our eye on the situation.''

Biondi's resignation had been rumored since last fall, when Bronfman sold a controlling interest in Universal's cable business to Barry Diller without first telling Biondi, who built his reputation by running HBO. Those rumors gained credibility as Bronfman revamped Seagram into a major entertainment conglomerate through its $10.4 billion buyout of PolyGram.

``With the PolyGram acquisition, Biondi was left in no-man's land,'' said Steve Cesinger, an investment banker with Grief & Co. ``He really wasn't necessary anymore. I like Edgar's vision and the fact that he's going to be actively involved in the decision-making. You like to see the guy with the checkbook do that.''

The reorganization leaves Meyer, who built Creative Artists into a powerhouse Hollywood agency before joining Universal in 1995, as Universal's top executive. He will be in charge of film, TV and theme parks and report directly to Bronfman.

Seagram will also create a new operating division for music and Doug Morris, chairman of Universal Music Group, will now report directly to Bronfman. Seagram is expected to complete the deal for PolyGram by the end of the year, making it the world's largest music company with a 22 percent share of the international market. Extensive layoffs and consolidation will likely follow.

Wall Street investors remain perturbed over an ill-fated deal that Bronfman engineered in 1995 to sell Seagram's stake in chemical giant DuPont to finance the deal for Universal. DuPont's shares have increased substantially since the deal while Seagram's have languished.

``Edgar is going to have to answer to shareholders in 1999 - that's the year of show and tell,'' Hyman said. ``There's no turning back now that he's buying PolyGram.''

Of Seagram's major businesses, the movie business is widely acknowledged as the trickiest with brutal consequences for any mistakes. As recently as two weeks ago, Universal was thought to be on the verge of turning around with the best November-December schedule of any major studio.

Then ``Meet Joe Black'' was hammered by critics for its three-hour length, slow plot and the casting of Brad Pitt, who has yet to deliver a major hit. A weekend premiere for the costly ``Babe: Pig in the City'' was canceled late last week because the family comedy had not been completed. It's still scheduled to open Nov. 25.

However, the studio's next two films - a ``Psycho'' remake and a Robin Williams drama-comedy, ``Patch Adams'' - should perform well. Robert Bucksbaum, president of the Reel Source forecasting service, believes ``Joe'' will take in about $75 million domestically, while ``Psycho'' should top $50 million.

``We think `Patch Adams' will make people forget about everyone else,'' Bucksbaum said, adding he expects the film to receive Academy Award nominations for best picture and best actor. He also said next year's schedule looks solid, led by ``Ed TV,'' a comedy directed by Ron Howard.

BOMBS AWAY

Universal Studios has failed to release a hit in the 18 months since it opened ''The Lost World: Jurassic Park.``

Title, release date, domestic box office

''A Simple Wish,`` July 1997, $8 million

''Leave It to Beaver,`` August 1997, $10.7 million

''Kull the Conqueror,`` August 1997, $6 million

''The Jackal,`` November 1997, $54.9 million

''For Richer or Poorer,`` December 1997, $31.5 million

''The Boxer,`` December 1997, $5.8 million

''Half-Baked,`` January 16, $17.3 million

''Blues Brothers 2000,`` Feb. 3, $13.7 million

''Kissing a Fool,`` Feb. 27, $4.1 million

''Primary Colors,`` March 20, $38.9 million

''Mercury Rising,`` April 3, $32.6 million

''Black Dog,`` May 1, $12.8 million

''Fear and Loathing in Las Vegas,`` May 22, $10.6 million

''Out of Sight,`` June 26, $37.5 million

''BASEketball,`` July 31, $7 million

''One True Thing,`` Sept. 18, $23.1 million (xx)

''Bride of Chucky,`` Oct. 16, $30 million (xx)

(xx) --still in theaters

HOT PROSPECTS

Universal Studios has a fairly strong slate of upcoming films through 1999

Title, release date, star

''Babe: Pig in the City,`` Nov. 25, James Cromwell

''Psycho,`` Dec. 4, Anne Heche

''Patch Adams,`` Dec. 25, Robin Williams

''Virus,`` Jan. 15, Jamie Lee Curtis 

''Life,`` Feb. 5, Eddie Murphy 

''Ed TV,`` March 19, Matthew McConaughey

''The Mummy,`` May 7, Brendan Fraser

''Bowfinger's Big Thing,`` July 23, Steve Martin

''For the Love of the Game,`` Summer, Kevin Costner

''The Bone Collector,`` not set, Denzel Washington

''New Jersey Turnpikes,`` not set, Kelsey Grammer

''Pittsburgh,`` not set, Norm McDonald

''East Great Falls High,`` not set, Jason Biggs

''Ride With the Devil,`` not set, Tobey Maguire

CAPTION(S):

Photo, Box

PHOTO (Color) BIONDI

BOX: BOMBS AWAY (See text)