Chapter 101: Hollywood Ledger

"Danny, at the moment several major studios are very interested, and the business prospects are definitely very secure. However, in order to maintain control of the project, Daenerys Pictures prefers to invest on its own. On the other hand, I don't have until the end of the year to use the money in my hand, but the film has to start shooting in September. That's why we choose to work with third parties. ”

Although he took the initiative to contact this side after Daenerys Pictures released rumors of seeking cooperation, Dennis O'Brien listened to Simon explain the general situation of the project, and still keenly raised his doubts.

"Simon, as far as I know, Daenerys Films has absolute control over both projects. It shouldn't be difficult for you to get the same treatment from the Big Seven, right?"

Simon shook his head and said, "Danny, this time is different. The point is that I intend to invest as well. If you cooperate with one of the seven major universities, even if you can get control of the production process of the project, the follow-up distribution, not only the North American theater chain, but all other channels will inevitably be completely tied to each other. Also, the accounting system of the big studios can't guarantee that Daenerys Films gets the benefits we deserve, as you must know. ”

Dennis O'Brien nodded sympathetically.

Almost all the film capitals that enter Hollywood hate the 'Hollywood ledger' of major studios and even second- and third-tier distribution companies.

In order to retain as much as possible the benefits of independent producers, Hollywood distribution companies will do everything possible to falsely state costs.

Take theatrical distribution as an example, if it is a project of a single producer, the usual rules for sharing accounts between Hollywood distributors and producers are as follows.

After the release of the film, the distributor will first deduct a part of the box office of the movie as a distribution commission. The proportion of this money is determined by the contract between the two parties, and the stronger the producer, the lower the distribution commission.

When DreamWorks cooperates with companies such as Paramount, the distribution commission that needs to be paid is only 8%, but the distribution commission that weaker producers need to pay can be as high as 15%.

But that's just the beginning.

The distributor's next publicity and distribution costs are the 'essence' of Hollywood's ledger system.

Film distribution definitely costs money.

Copy costs, TV commercials, offline expenses for loss-making projects, studio lawn mowing, management vacations, everything you can count will be counted.

Ultimately.

In fact, it may be less than half of the production cost, and it will even be higher than the production cost of the film on the books of the distribution company.

So, can the 'Hollywood ledger' be avoided?

No.

This is already a clear rule for Hollywood studios, and even a single series that once had a global box office of $1 billion is actually losing money on the books. Even if the producer is strong enough to personally send an accountant to follow up on the distribution, the result will only be an inflated publicity figure.

Of course, this is where the problem comes.

None of you are stupid.

Hollywood does this, why is there still so much capital rushing to it?

Obvious.

The 'Hollywood Ledger' certainly still has a strategy for coping.

For strong capital, they usually invest at the level of the entire large studio, and then calculate the general ledger and share the profit and loss. No matter how tricks a film company plays on a single project, the overall financial statements must be clear. Otherwise, the Federal Tax Service will not agree.

As for small and medium-sized film investors, they either choose to sell out the copyright directly, or set up a film company to distribute it themselves.

Now.

Simon's release plan is basically similar. Retain the copyright of each channel as much as possible, first promote the film to North American theaters, and then gradually operate the follow-up distribution according to the local box office results.

Inside the office.

Simon and Amy spent more than an hour explaining in detail to Dennis O'Brien the details of the main creative cast, shooting schedule, distribution strategy and other details, before they talked about the investment ratio and the distribution of benefits.

"Danny, if Craft Pictures is interested in investing, my request is that everyone will pay half of the $15 million budget, which is $7.5 million each. However, in the future distribution of profits, as the producer who leads the entire project, after deducting the budget cost, Daenerys Pictures needs to take 60% of the project's net profit, and the remaining 40% will go to Craft Pictures. ”

When Dennis O'Brien heard this, he immediately shook his head and said, "Simon, it's too high. ”

Simon insisted: "It's not high at all, Danny, you see, it's on the premise that the project is profitable. Daenerys Films, which does all the production work, actually only asks for a 20% share of the net profit as a commission, which is fair. ”

Dennis O'Brien hesitated for a moment and asked, "Simon, what about the future earnings settlement process, and if we participate in the investment, when will we be able to recover the money?"

"You can discuss this with Amy next. However, Daenerys Films intends to stay in Hollywood for a long time, and we will never deliberately default on our partners. In order to show good faith, after reaching a cooperation, Craft Pictures can send an accountant to follow up on the entire project. ”

Dennis O'Brien thought for a while, and finally said, "Simon, I still need to discuss this matter with George, and maybe give you an answer next Monday." ”

Simon nodded, "Of course it's fine." However, for this project, we are not in contact with Craft Pictures, Daenerys Pictures gives everyone the same terms of cooperation, and we will not bargain. So, if someone gives an answer tomorrow, or even tonight, then we can only say that we regret it. ”

With that, Dennis O'Brien stood up, and Simon and Amy also got up.

Sending O'Brien away, Simon and Amy return to the company building.

Simon returned to his office, Amy also followed, seeing Simon turn back to the desk and sit comfortably in the leather chair, she walked to the reception area to pack up the pile of documents just now, and said, "Simon, you shouldn't have just offered to promise O'Brien that he could send an accountant." ”

Simon took the book, flipped to the bookmark, leaned back in the leather chair with the book, and said, "Amy, I was very sincere just now. I hope Daenerys Pictures will go far and there will be no need to play tricks on these details. ”

Amy picked up the stack of papers and put them back in the filing cabinet on the wall, and continued: "Many studio founders have actually thought so, but, Simon, reality often doesn't allow us to play tricks. ”

Simon smiled and said, "In that case, it's up to you to discuss the matter of repentance with them." ”

Amy rolled her eyes slightly, closed the cabinet door, turned around and sat down across from Simon's desk again, looked at the young man opposite, and said, "Ron, Wes, and I are going to New York tomorrow." Now that the location is complete, we're going to go through all the scenes, and we're going to have to talk to the Queens and JFK about how to shoot them. Speaking of which, this project was won by you from Fox, and now it seems that you don't care about it at all. ”

Tomorrow is Saturday.

However, the federal 40-hour workweek is really only designed to protect the lower wage earners.

There is a special clause for the management of more than two senior executives, which is not protected by the 40-hour work day under the labor law. This part of the people work overtime, and the boss does not have to pay overtime pay.

In Simon's view, this is actually telling people a very simple truth, if you want to be a good person, you should not expect to work only eight hours a day.

Simon listened to Amy's half-truthful complaints, turned the pages of the book in his hand, and said, "I'm the boss, and getting the share clause from Fox is the job I need to do." As for the rest, this project is not worth following up with me all the time. ”

After completing the script and finalizing the director, Wes Craven, with the assistance of Amy and others, Simon was very relieved about the project.

Another big success, and now no one thinks that it will not cross the $20 million minimum threshold, such a purely entertaining teen horror film, Simon really doesn't need to spend too much thought.

After continuing to chat, Simon glanced at his watch, closed the book, and asked Amy, "I'm going to get off work soon, do you have any arrangements for the evening?"

Amy raised an eyebrow and said with a smile, "I made an appointment with my boyfriend for dinner." ”

"Oh, that's it," Simon shrugged and explained, "It's actually Jonathan." You know, De Niro has never had an agent, and after he lost the lead actor in Fox's part some time ago, he began to think about finding an agency for himself. Jonathan wants to pull De Niro to MA and has a party dedicated tonight, hoping I can come over too. ”

Speaking of which, Simon's acceleration of the collection of some copyrights is also influenced by many projects that have been discovered recently.

Like what.

In the original time and space, this movie not only achieved a good result of breaking 100 million at the North American box office, but also brought Tom Hanks the first Oscar nomination for Best Actor.

Simon also learned that Robert De Niro had also fought for the project while chatting with Jonathan Friedman in private. In addition, Fox has already confirmed that this is also a box office hit series.

In addition to Fox, many other hot projects that exist in Simon's memory are no longer available to him.

Moreover, there are some projects that Simon is also hesitant to meddle with.

Like, this is next year's North American box office champion in the original time and space, and the current script is still in a state of no settlement.

It's just that this year's North American box office champion has been basically determined, and if the North American box office champion next year, the year after next, or even the year after tomorrow is related to Simon, this is not just conspicuous, this is completely a matter of not letting others live.

If others can't live.

Tut.

With this in mind, Simon has planned to consciously incorporate some projects that are not popular in his memory in the next process of collecting copyrights, and will actually put into production when he has sufficient funds.

Across from the desk.

Amy heard Simon's explanation, but said, "Even if De Niro finds a brokerage company, it should be more likely to go to CAA." By the way, why did you ask Susan to pass that, well, Nicole Kidman information to Jonathan and let them poach people?"

Remembering Monday's meeting with Michael Ovitz, Simon shrugged and said, "It's nothing, I just think that CAA is too strong now, and we should use fewer CAA customers in the future." ”