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Chapter 30: Dividing the Cake

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Today's movies have a $130.02 million North American box office, but this huge sum will not fall into the pockets of anyone or a company. From theaters to distribution, from production to investment, this cake will be shared in many aspects.

In the last few days of June, the accounting firm representing Duke and Mrs. Leah began close business dealings with 20th Century Fox and Lucasfilm, checking the dense accounts and share of all sizes.

This kind of thing doesn't require Duke to come forward. He will not have any effect except causing trouble. Although PwC's professional accountants are expensive, their business capabilities and reputation are trustworthy.

Besides, the lawyers representing Duke and others will also supervise the entire process.

Twentieth Century Fox signed the most common share account with the theater company. After the theater company subtracted the fixed expenses, it shared the share with the publisher according to different proportions during the release period. After deducting taxes and other payments, Twentieth Century Fox received a share of more than 62 million US dollars.

Lucas Pictures has no power to move this part of the money. As the publisher, 20th Century Fox can receive a 15% release commission of the North American box office - $19.5 million!

After taking the release commission, Fox also deducted the advance publication and public relations fees and other fees. "Life and Death Speed" printed more than 5,100 copies, with a unit price of around $600. The cost of large-scale printing will drop a little, with a total cost of $3 million. In addition, the film's trial public relations, warehousing and transportation, capital recovery costs, hiring investigation companies, secretly checking theater box offices, various publicity expenses, etc., Fox invested a total of $8.5 million.

In other words, Twentieth Century Fox will take another $11.5 million from it, and they can share half of the $62 million in total.

Excluding $11.5 million in expenses, the remaining $19.5 million is almost all gross profit from Fox.

Issuing companies have broad publicity channels and strong distribution capabilities. There is no reason why they can stand at the top of the industry. Hollywood does not mean that by simply acquiring a company with issuance rights, they can achieve the level of six major or even second-tier issuers in publicity and distribution.

If this is true, Lucasfilm would not rely so much on the distribution channels of 20th Century Fox and Paramount on projects such as Star Wars and India of Lost Ark. Could it be that George Lucas has no money? He has not had enough connections and has poor abilities?

If the distribution problem is really easy to solve, the later Pixar Studios and DreamWorks Animation Studios would not go around looking for publishers. The former is so frustrated under Disney, and the latter even wants to sell itself to publishers.

After Twentieth Century Fox took away their money, more than $1 million was used to pay one-third of the remaining $31 million for the actors and crew, as well as various industry association expenses, including the Actors Union. Then the money came to Lucasfilm's account. According to the agreement signed with investors such as Leah, Lucasfilm would definitely not choose a guarantee of $2 million, but instead took 10% of the North American box office share from it, and they took 13 million of it.

The remaining $17 million was the turn of investors including Duke to share. Mrs. Leah's $10 million accounted for two-thirds of the production cost. She could get more than $10 million, and it seemed that she would still make a profit, but don't forget to pay taxes. After paying the tax, the money will definitely be a loss.

If this is the case, investors who invest money in Hollywood should cry.

However, this is only a part of the film's revenue, and "The Speed ​​of Life and Death" can earn a large amount of revenue in other aspects.

The first is North American TV copyright and video tape copyright. Because Twentieth Century Fox has the power to draw 50% of the money, they dominate the negotiation team composed of Lucas Pictures, Duke's agents and other aspects. Last year, Fox just joined hands with Carlok Pictures to sell the peripheral copyright of "Ultimate 2" at a high price - North American video tapes for 7 years and TV copyrights of $10 million - they have rich experience in this area.

Duke also did not participate in the negotiations. He would not have a say in the negotiations completely dominated by 20th Century Fox, and it would be useless if he went there. As the biggest profit party, 20th Century Fox must want to sell at a high price.

After several tug-of-war negotiations, the North American videotape copyright of "Speed ​​of Life and Death" sold $7 million, and the TV copyright received $5 million, and the 20th Century Fox took out $6 million in priority.

Although he was a little jealous, Duke knew that this was the rule of Hollywood and it was impossible for newcomers to break the rules, otherwise the whole of Hollywood would be your enemy.

Hollywood is not a place where you can make good enough movies.

Of course, as the director who has taken the first step in success, Duke will not let it go when it comes to fighting.

In the conference room on the top floor of Fox Building, Duke sat in a chair. A morning was about to pass. He had basically never spoken. He just watched Nancy Josephson's mouth flew up and down, and confronted Fox's negotiators in words.

This is the negotiation on overseas copyright of "Speed ​​of Life and Death" started after the film was removed from North America. It is now the fifth round, but the two sides have been unable to reach a consensus.

Since Lucasfilm did not have the opportunity to take a commission, George Lucas, in addition to sending an executive president to take charge and vaguely show his support, handed over the leadership of the negotiations to Leah, the largest investor, while Leah threw it directly to Duke. Duke naturally chose his new agent as his plenipotentiary representative.

"The movie we negotiated is not a bad movie like "Alien 3"!"

Standing up from the chair, Nancy paced back and forth in the conference room a few steps, and walked behind the Fox negotiators, almost yelling, "This is "Life and Death Hour", Duke Rosenberg's "Life and Death Hour"! A super big movie that won more than $130 million in North America! You paid $65 million for the overseas copyright of "Terminator 2". What is its North American box office?"

Nancy speaks very fast and does not give the other party a chance to interrupt. "It's just a little more than $200 million! "The Speed ​​of Life and Death" is to sell all overseas copyrights and sequels to you in packages and sell them to you, and it's only $50 million! Is this price high?"

After playing the roaring skills, Nancy sat back on her chair and changed into a tone of reasoning. "With the drastic changes in Eastern Europe and the collapse of the Soviet Union, our films have a broader market. Nowadays, most mainstream Hollywood commercial films can earn more profits overseas than North America..."

Just like a professional at a data analysis company, Nancy talked about several examples of Hollywood movies making profits overseas. "Don't say "The Speed ​​of Life and Death" will be an exception! This movie will definitely be among the top ten in the annual box office list in North America. If such a movie is not profitable overseas, Fox should not make any strategy to overseas markets."

She is a typical and capable agent! This is Duke's evaluation of Nancy's work.

This smart woman will never give anyone a good color when she should be proud; when she should be shy, her skin is thick enough to block the Mississippi River; when she should be loud and her voice can be comparable to the lion in the Disney Animal World; when she should be slow, she will be gentler than **.

Such a highly professional agent is also the agent Duke needs.

As long as she doesn't tear her face, Nancy can compete with Fox. With her presence, Duke can avoid direct contact with Fox on sensitive issues, and there is also a buffer between the two sides.

Although $50 million is the package price for all copyrights, Duke is not James Cameron after all, and Keanu Reeves is not Arnold Schwarzenegger, and the price is not realistic.

Of course, the $25 million offered by Twentieth Century Fox is also unrealistic, they are clearly robbing!

It was another long day of negotiations, and both sides made some concessions. In the afternoon, they were arguing with almost $10,000 as the base price, and finally reached an agreement. Twentieth Century Fox bought the overseas copyright and sequel copyright of "Life and Death Hour" for a package price of $37 million.

There are also some reasons for Duke that the price has reached this point. He told Nancy that he must ask Twentieth Century Fox to pay the money within one month, and that the one-year mortgage loan purchased by Mrs. Leah will be due. If there is no money to repay the debt, not only will it use the working capital of Santa Fia Company, but it may be possible that even the house will be taken away by the bank. By then, the Rosenberg family will be a joke in the entire Los Angeles upper class.

As for the method of sharing overseas distribution with Fox, Duke basically did not consider it. Not to mention his mother's accounting issues, Lucasfilm clearly would not participate and he lacked sufficient preparation, there were very few measures to monitor Fox. The publisher falsely reported and issued a tax credit, tax offset and other methods. It was unexpected that they could not do it, especially long-term revenue video tapes and TV copyrights, which could be done more.

Yes, the United States has various legal provisions, but even in North America where regulation is strictly regulated, Hollywood giants dare to cheat Wall Street funds, let alone overseas markets all over the world.

Now is not an era of smooth information in the future. It is too difficult to regulate. Instead of pinning your hopes on Fox's moral standards, it is better to sell them directly.

This is also the consensus of all investors in the film.

In this way, the benefits that investors can share are clear and clear, with the $17 million remaining in the North American box office balance, the $6 million remaining in North American video tape TV copyright, and the $37 million just negotiated, totaling $60 million.

Duke enjoys one-fifty share of it, which is $400,000. Although he still has to pay a considerable personal offense, it is still very cost-effective compared to the $100,000 investment in the director's remuneration.

His mother could share the $40 million of the money. Even if she had to pay taxes, the return on investment for a year would be terrifying.
Chapter completed!
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