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Chapter 90: Tiered Revenue Share
🕑 Added 2024-10-03 16:34:25 +0000 UTC"I won't change my style, yes! It's all about explosions, more explosions!"
As the press conference was nearing its end, Duke answered several media inquiries about the theme of his new movie. His response was simple yet powerful: "Next summer, you'll see unprecedented explosion scenes; the whole of North America and even the entire world will be engulfed in flames."
"Director Rosenberg!" a reporter shouted, "Are you planning to destroy the whole world?"
"If I could, I would," Duke shrugged. "I'd love to do that in a movie! I hope to have such an opportunity in the future."
"Can you disclose the specific theme?" another reporter asked.
"It will be a science fiction film," Duke replied timely. "Basically, it's a story about an alien invasion of Earth and humanity's desperate counterattack."
After finishing his comments, he signaled to the host, who promptly announced the end of the press conference.
Returning backstage, he handed the signed agreement to Nancy Josephson and left the press hall of the Four Seasons Hotel. He took a side security passage, going up the stairs to the third floor, where Warner Bros. and 20th Century Fox were hosting a media party in their banquet hall.
As for the agreement he signed at the press conference, it was merely a formality; the specific contract had been signed several days prior. Nancy had conducted several rounds of tough negotiations with the producers from Warner Bros. and 20th Century Fox for this.
Initially, Nancy had asked for a top-tier director contract of $15 million as a base salary plus 20% of the film's total earnings. The producers rejected it without hesitation, leading to a lengthy bargaining process. Both Warner and Fox were aware that, given Duke's current success, he had the leverage to demand a profit share. They countered with an offer of $5 million plus 15% of the net box office earnings.
To reach an agreement, both sides had to make certain concessions. After more than a week of discussions and probing each other's limits, they finally reached a consensus on the director's treatment, with Duke's agreement and the management's approval from Warner and Fox.
Because Duke focused on the box office share, he had to compromise on the base salary. The combined base salary for the director, screenwriter, and executive producer was reduced to half of Duke's expectations, only $5 million.
However, securing the box office share wasn't easy. Hollywood's production and distribution companies are notorious for being ruthless; without sufficient profit guarantees, they wouldn't easily concede.
This was a tiered revenue-sharing agreement. Duke would receive compensation in the form of "advance payment + box office revenue sharing." Initially, he could receive $5 million in three installments as an advance, with further earnings based on the film's box office performance.
If the North American box office for "Independence Day" only exceeded $100 million, Duke would only receive a base reward of $500,000. If the North American box office exceeded $150 million, he would earn 5% of the box office; if it surpassed $200 million, the share would increase to 10%; at $250 million, it would be 15%; and at $300 million, it would reach 20%, which was the maximum share.
For overseas box office earnings, $150 million was the base share point, also with a $500,000 reward, and for every additional $100 million in overseas earnings, the share would increase by 5%, capping at 20%.
The better the film performed, the more the director would earn. This contract tightly bound Duke to the film.
This tiered income-sharing model for key creative personnel would become a standard in Hollywood blockbusters. On one hand, it incentivized the core creators to invest wholeheartedly; on the other, it mitigated the massive risks associated with high upfront investments.
To achieve high earnings, it was simple: do everything possible to make the film more polished and appealing.
Upon entering the banquet hall, people from Warner Bros. and 20th Century Fox were already waiting at the door. They led Duke to Jeff Robinov and Tim Fisher, where he introduced himself to some media professionals present.
The banquet hall was expansive, the size of three basketball courts, yet it felt extremely crowded. This reflected the tremendous draw of Warner and Fox; they were no longer independent production and distribution companies, as they were backed by larger media platforms with promotional power beyond what independent Hollywood companies could compare.
Of course, this was beneficial for both Duke and "Independence Day." Otherwise, he wouldn't have had Nancy connect the two companies for cooperation.
Great films needed even greater promotional and media platforms, a well-known principle in Hollywood.
The attendees were mostly media from Time Warner and News Corporation. With Nancy Josephson by his side, Duke found it manageable to navigate social interactions. Occasionally, when representatives from News Corporation's tabloids posed overly personal questions, he skillfully diverted the conversation away.
While he was open to promotion, Duke would not disclose his own secrets, especially since this was still the early phase of movie publicity, not the time to reveal everything.
"Duke, this is Robert Shay, the president of New Line Cinema!"
After handling the media, Duke stepped into the film company circle, while Nancy whispered names and identities in his ear.
"Hello, Mr. Shay."
"Hello, Duke."
Robert Shay appeared somewhat indifferent, simply shaking Duke's hand and tentatively asking, "I heard you have another script, perhaps you could consider New Line as a partner?"
"There will be opportunities to collaborate," Duke replied casually.
Although New Line had just been acquired by Warner, Robert Shay remained the largest individual shareholder and retained operational autonomy over New Line. Thus, New Line still operated independently from the other film companies within the Warner group.
This meant New Line still retained its notorious reputation.
In the past, present, and future, New Line had a terrible reputation. While other Hollywood companies might restrain their actions to some degree, trying to keep things buried, under Robert Shay's leadership, New Line was notorious for hiding box office figures, delaying payments to cast and crew, and delaying profit-sharing with investors, which was almost standard procedure.
Perhaps now it was just small projects, not widely known to the media and public, but during the making of "The Lord of the Rings," New Line concealed how much in box office receipts, eventually leading to an undisclosed settlement with the rights holders of Tolkien's works after paying out a multi-million dollar compensation package. Meanwhile, the poor director Peter Jackson was denied over $15 million in director fees for two years due to New Line's actions, forcing him to take the matter to court.
When Duke thought of Robert Shay and New Line, he recalled these incidents. Given their reputation and strength, they were not within his consideration for collaboration.
After exchanging pleasantries with Robert Shay, Duke took a general stroll around the banquet hall. Many people surrounded him, mostly agents from talent agencies promoting their actors, particularly agents representing actors who had auditioned for roles.
"Director Rosenberg."
A female agent blocked Duke's path and brought over a pair of African American individuals. "Will, Halle…"
The man had prominent ears, making him memorable, while the woman was someone he had seen during auditions before—future Oscar-winning actress Halle Berry.
The production team had already extended an audition invitation to Will Smith, and the agent's goal was not merely to pitch his role.
"Will and Halle know each other; they'd be perfect as a couple in the film…"
The agent rambled on for quite a while. Once she paused, Duke raised his hand, noticing she hadn't introduced herself. He decided to speak up, "I'll consider your suggestion!"
After that, seeing others approaching, he headed to the restroom. When he came out, he didn't return to the center of the banquet hall but instead took a side exit to the largest terrace at the front. Perhaps due to its location on the third floor, the terrace was below the hotel's main entrance and the road, making it a less desirable spot for those seeking quiet or social interactions. Duke finally found a rare moment of peace.
Those agents were incredibly persistent; to pitch their actors, they could easily talk for ten minutes without stopping.
Standing by the terrace railing, Duke glanced back and could still see those struggling for opportunities in the banquet hall through the curtains. Over two years ago, he was one of them; now, he was someone who could determine others' fates.
"Will you wait here for a moment?"
Sofia Coppola appeared with a pair of mothers and daughters, threading through the crowd, pointing out the terrace. "I asked Nancy, and she said Duke is here."
"Sofia…" the little girl's eyes brightened, and she looked down, asking, "Can I go meet him myself?"
"Oh?" Sofia tilted her head, showing interest in the girl. "Are you sure?"
"I think Duke wouldn't want to be influenced by your opinion."
The little girl, with her hands behind her back, slowly pulled back the curtain separating the banquet hall from the terrace, excitement evident in her demeanor. She looked at the middle-aged blonde woman, "Mom always tells me that opportunities are earned by oneself."
"Hmm… alright." Seeing the girl's mother didn't object, Sofia nodded in agreement.
This girl, under Mrs. Leah's tutelage, clearly possessed a maturity and cunning beyond her years. After all, she was no fool; when a big fox and a little fox come together, what would happen?
Pulling back the curtain, as she walked toward the terrace, the little girl couldn't help but pout. If her mentor hadn't gone to Israel and wouldn't return until next month, she wouldn't have begged her mother to ask Sofia Coppola for help.
