Hollywood Director 1992

[Chapter 59: Distribution]

[The film production was completed, and box office subsidies were being calculated...]

[Host's participation rate was 78.3%, and the film's completion rate was 90.6%]

[Rewards: 3.5 times box office subsidy; director experience +20%; director stamina +10%]

[Updating...]

[Update Successful]

[The new box office subsidy was based on the host's participation rate, the film's completion rate, any awards received, marketing investments, and how well the film aligned with market expectations. The higher the index, the more generous the subsidies would be.]

...

After the film screening ended, representatives from various film companies, including Scott Rudin, Brian Grazer, Robert Shaye, and Harvey Weinstein, approached Link, hoping to collaborate and represent the film's distribution. Seeing the industry's recognition of his work, Link felt relieved.

In the early '90s, art films still dominated the landscape, with those in the film industry treating movies as a serious art form. This seriousness extended to filmmakers and media opinions, using high standards to evaluate a film's merit. Films were expected not only to possess artistic value but also to have significant viewing appeal and meet mainstream expectations.

Even though his first movie, Buried, suffered from a rough production, it had profound themes that critiqued the unresolved Cold War through personal narratives, advocating for peace and opposing war. Moreover, Link demonstrated proficiency in camera usage and had a mature plot structure that showcased a level of artistic flair.

Despite the criticism, Buried was still widely accepted by mainstream filmmakers due to its depth. However, the current film, Paranormal Activity, was a stark contrast, leaning heavily on sensationalism and thrill for commercial success, lacking artistic integrity. It was, indeed, an impressive feat to have this type of film gain unanimous approval from the majority of producers present.

...

After chatting with Scott Rudin, Brian Grazer, Steven Soderbergh, and the others, Link gradually understood their appreciation stemmed from the film's innovation and entertainment value. The original Paranormal Activity was filmed in 2007 and released in 2009, following the trends set by films like The Blair Witch Project and [REC].

Before Paranormal Activity's release, the mockumentary-style film had grown somewhat stale in the market, lacking novelty. Bringing this style forward by fifteen years into theaters undoubtedly represented a form of innovation and exploration in the art of cinema. Scott Rudin noted how the proliferation of handheld camcorders had inspired many to think, "Could I direct a decent movie with my camera?"

Previously, no one had dared to attempt this. Some were hindered by technology barriers while others lacked funding. Now, Link had managed to create an outstanding film on a mere $20,000 budget, one that could scare audiences silly.

This innovative approach proved that ordinary people could, with simple tools and limited finances, still create compelling cinema. This realization had significant implications for the film industry's future -- it might lead to an era where "everyone could be a director." This was the film's most significant achievement.

...

When the praise flowed in, Link felt a swell of pride. However, when it came to negotiating film distribution rights, the producers shifted their demeanor entirely, willing to pay very little for distribution rights, and were unwilling even to offer him a share of the box office revenue.

Twentieth Century Fox offered two options: either a $3 million buyout for global distribution rights and all video and ancillary rights, or $1 million with a 10% share of global box office, which would buy all rights. Warner Bros., Paramount, Columbia, and other studios offered even lower bids. Their reluctance to go high in pricing stemmed from the film's unconventional style; it was untested in the market, and they weren't sure audiences would embrace it.

Distribution companies were hesitant due to uncertain box office performance: the higher the price offered, the greater the risk. A successful box office outcome for this film would hinge on solid pre-release marketing efforts -- something that required a substantial budget, potentially running into the millions.

With high financial stakes and risks involved, companies pressed to keep acquisition costs down. During negotiations, Link stated he could forgo the base licensing fee but insisted on at least 25% of the North American box office revenue and a minimum of 15% for international profits.

Upon hearing his terms, the studio representatives collectively shook their heads, deeming the conditions unacceptable. The first round of negotiations ended in collapse.

...

Later, Robert Shaye and Harvey Weinstein approached him one after the other, expressing willingness to collaborate with Guess Pictures for Paranormal Activity's distribution and agreeing to his revenue-sharing terms. However, they sought the rights to a sequel while collaborating on films like Se7en and The Butterfly Effect, requiring both studios would maintain at least 50% of the investment share.

After considering their offer, Link declined. New Line Cinema and Miramax were independent companies with significantly weaker distribution capabilities compared to the major studios.

When distributing the movie, expenses remained for purchasing distribution resources from major media groups, making collaboration less appealing. The only potential upside of working with these two companies would be securing more marketing funds.

However, Link was not lacking in funds at that moment. While he might secure additional marketing resources through partnerships, he would be forced to share a larger portion of box office revenue, cutting into his profit.

...

Since the major studios didn't view the film favorably or want to offer better shares, he decided that Guess Pictures should handle the distribution independently. After parting ways with Robert Shaye, Link called a meeting with Michael Leeson, Daniel DeVito, and others in his office to discuss the distribution plans.

Having Guess Pictures handle the distribution of Paranormal Activity closely resembled the process he followed when he self-financed Buried. The difference was that he now had more money and support, making the entire process smoother.

...

"Boss, we have a problem," Lily burst into the office, her expression serious, with a hint of indignation.

"What is it? Don't panic; just take your time. We can solve this together," Link replied, handing her a cup of coffee.

"During our internal test screening, a group of reporters showed up outside our building. Andrew Reiner, during an interview, slammed our film as awful, claiming a three-year-old could have made it. Other producers echoed negative sentiments, asserting that the movie was terrible and implied you weren't a professional director."

"Anything else?"

"Several producers left midway through in fear, and even though they didn't give interviews, reporters observed their early exits and concluded the movie must lack quality. Our PR team has notified us that many media outlets have prepared articles and plan to publish negative stories about the film starting tomorrow. They're wondering if we should inform the media to suppress these stories." 

"First, find out which outlets are involved. For major newspapers and networks, we can spend a bit to manage the coverage and suppress the bad news. The small tabloids, we can ignore for now. We still have time before the movie's release. Their reports won't impact us significantly."

"Got it. I'll go check," Lily replied, gathering her folder and leaving the office briskly, her professional attire making her look capable and focused.

*****

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