Hollywood Director 1992

[Chapter 54: Box Office Situation]

"Sir! You wanted to see me?"

Michael Leeson walked in and stood in front of the desk.

"Michael, this is the box office information from 20th Century Fox. Currently, the overseas box office for Buried is $38.85 million, but I have my doubts about the accuracy of this data. I need you to hire a few people in Japan, the UK, and Hong Kong to check the local box office situation. It would be great if everything checks out, but if there are discrepancies, we need to understand how much we've lost."

Link handed him the document.

"Sir, it's tough to get to the bottom of these things. In Hollywood, it's common for big studios to fix their box office numbers. Compared to the major studios, independent companies are at a disadvantage. Even if we figure it out, it doesn't do much good. They control all the data regarding movie releases, and they have a hundred ways to authenticate those figures."

Michael had worked in the Hollywood film industry for over a decade. He was an industry veteran with a deeper grasp of things than most.

Hollywood studios were key clients for major accounting firms like PricewaterhouseCoopers and KPMG. The books of movie companies were managed by these large firms.

To question the accuracy of the box office figures from the big studios was akin to questioning the integrity of some of the top accounting firms on Wall Street. If anyone raised doubts about the box office data, the first gate they would hit was at those accounting firms.

As a result, even though many understood that there might be issues with the films released by the major studios regarding ticket sales, no one could blow the whistle.

"Michael, I understand your point. 20th Century Fox is powerful, and Guess Pictures is small, but just small, not incompetent. We need to understand if we lost anything on the release of Buried and how much we lost. If we were at a loss and remained oblivious, treating it as a given, we'd only face bigger setbacks in the future."

He wanted to get a clearer understanding of whether box office subsidies were based on the original film's ticket sales doubled, or if the current figures for Buried were being quadrupled. Knowing this would help him better navigate the system.

"Alright, sir, I'll arrange for someone to investigate."

"Just check four to five main markets. Getting some reliable data will be sufficient; there's no need to dig too deep."

"Got it!"

Michael took the documents and left.

---

Link continued to sift through files, looking at the box office data for horror films in North America during the first half of the year.

During that period, 105 films had been released in theaters across the United States, of which 16 were horror-thrillers, making up roughly one-sixth of the total.

This genre was performing well, with several sleeper hits, and Buried ranked first for its exceptionally high return on investment.

Coming in second was the family thriller The Hand That Rocks the Cradle, which had a budget of $12 million and earned $140 million globally, ranking eighth in North America.

Third was the erotic thriller Basic Instinct, with a production cost of $49 million and a global box office of $352 million. Among all the movies released in the first half of the year, it ranked fourth in North America.

Fourth was the sci-fi thriller Alien 3, directed by David Fincher, which released in early May, costing $50 million and accumulating a global box office of $130 million. The numbers looked solid.

With several horror films performing strongly in the first half of the year, 1992 was viewed as a blockbuster year for horror. Many media outlets predicted that horror films would continue to thrive next year as well.

What was the significance of these figures?

It mattered a great deal. Paranormal Activity was a horror film. Currently, the market favored this genre, and audiences loved these kinds of movies. This positive trend would give the distributors more confidence when promoting the film.

If a studio was willing to distribute this movie, Guess Pictures could negotiate from a position of strength.

---

"Link, how's the new movie coming along?"

"So far, everything's going smoothly."

"Be careful. There's a lot of buzz in the industry about your new film, and many media outlets are predicting a disappointing performance for your second project."

At the Grove Shopping Center, in a Starbucks cafe, Jerome Preston stirred his coffee and spoke up.

"They'll probably end up disappointed."

"Ha! You're still that confident Link I know; I like that!" Jerome pointed at him and continued, "I brought you here today to share some good news."

Jerome's good news was that after a review by AMC Entertainment, two of Link's proposals for increasing theater attendance had been accepted. AMC planned to implement these strategies over the next three years.

Jerome had been recognized by AMC Entertainment and promoted from the manager of the theater at the Grove Shopping Center to the head of AMC's operations in the Greater Los Angeles area, overseeing the distribution for nine cinemas.

Los Angeles was the entertainment capital, and AMC was the second-largest theater chain in the country. Becoming a key player here meant not just financial security, but a promising future as well.

"Now that's good news, Jerome. Congratulations!"

"Link, I owe it all to you."

Jerome Preston sat up straight, his expression serious.

"Don't mention it; the smooth release of Buried was just as much your doing."

"It's different. The successful release of Buried was your hard work, and to be honest, the film performed well because it was genuinely good; audiences wanted to support it. I regret I couldn't help you more. Next time your film releases, I can arrange things at those nine AMC theaters."

"Is that really appropriate?"

"Ha! That's part of the theater manager's power. For instance, when theaters partner with a movie studio, they often prioritize films from the major studios. They give their posters better placement and recommend those films first to customers.

This usually happens because films from those studios tend to perform better and generate higher profits. Additionally, theaters want to strengthen partnerships with major studios to secure more distribution rights and profit from them.

If your movie screens at AMC in Los Angeles, I can flex some influence," Jerome added with a smirk and gestured a few inches apart with his fingers.

"That sounds great," Link nodded. "I heard that major studios have been known to inflate box office figures -- do you have any insight into that?"

"Link, the industry's full of pitfalls; knowing too much doesn't help. Major studios tend to exaggerate their promotional budgets, at least by a few millions. They prefer this method because it's much easier to deal with.

If they team up with theaters to cook the books, whether inflating or deflating the numbers, there will always be discrepancies that could cause problems later on when IRS start digging.

Moreover, there isn't just one studio or theater chain; there's competition among them. Pulling off such tricks quietly isn't easy. You're a director; focus on creating good films. Once you produce great content, studios and theaters will be eager to partner with you.

When you become the one with the resources, you'll be a big deal at Hollywood parties rather than just a target."

Jerome Preston raised his thick eyebrows, his expression turning serious.

"I appreciate the advice."

Link clinked his coffee cup against Jerome's, acknowledging their conversation.

*****

https://www.patreon.com/Sayonara816.