America is in control

Chapter 242 Head-to-head confrontation and before release

"John, long time no see. Congratulations on winning the boxing championship unification match. Your boxing career has taken another big step forward!"

"I have already watched the finished film of "Looking for the Midnight Kiss". The quality is quite good and it is very innovative."

"New Line Cinema is willing to come up with better terms and reach a cooperation with New Caesars Entertainment!"

Xie Yi looked at General Liu who walked into the reception room, stood up on his own initiative, and extended his right hand towards him.

A smile as warm as the spring breeze appeared on his face, and his attitude was much better than last time.

After complimenting the other party first, Shay immediately turned to the topic and talked about the film distribution agreement.

With a standard smile on his face, Liu Jiang shook hands with the other party and said modestly.

"Mr. Shea, you are too complimentary. I still have a long way to go in professional boxing!"

"I'm so honored that you can watch the movie "Looking for the Midnight Kiss"!"

"I wonder what conditions your company is prepared to offer?"

Shay smiled, motioned for the other party to sit down before talking, and asked his secretary to bring in two cups of coffee.

"John, New Line Cinema will buy out the North American distribution rights to "Searching for the Midnight Kiss."

"Twenty-eight percent of the North American box office revenue is taken, and all costs incurred at the time of distribution are included in this."

"The total income from video tapes, DVDs, and all TV copyrights will be 35%, and the derivative income will be 50%."

"At the same time, New Line Cinema has promised to invest no less than US$100 million in promoting the film in North America."

Xie Yi opened a document on the table and explained it to General Liu word for word.

Before inviting the other party, he also got the news that MGM and Buena Vista Pictures are currently competing for the film's distribution contract.

Shay knew that if he brought out his previous conditions again, the other party might immediately turn against him and leave.

After careful consideration, he simply gave up the overseas rights and sequel production rights of "Looking for the Midnight Kiss".

Give up the uncertain profits to the other party and try to give Liu Kai a head start and win the movie in one fell swoop.

As for the other conditions given by Xie, it can only be said to be slightly lower than the highest commission ratio commonly used in the industry, just barely.

After listening to the conditions of the issuance agreement given by Xie, Liu Jiang felt moved in his heart.

The conditions offered by New Line Cinema this time are much better than before! At least it’s a normal release agreement!
What's more important is that the other party did not seek the overseas copyright and sequel production rights of "Looking for the Midnight Kiss".

This is undoubtedly a huge benefit to myself!

If the movie does well at the box office after its release, overseas rights and sequel production rights can fetch big money.

You must know that MGM and Buena Vista Pictures have never given up the overseas rights and sequel production rights of "Looking for the Midnight Kiss" from beginning to end.

Although the final box office commission ratios released by the two of them are about a few points less than those released by New Line Cinema.

But if Liu really had to choose, he would rather take a gamble and reach a cooperation with Shay.

Having said that, you still have to fight for what you have to fight for. In business negotiations, it is only fair to weigh penny and penny!
As long as the other party doesn't know what they really think, it's not a bad idea to take the opportunity to seek more benefits.

"Mr. Shea, I don't quite understand why New Line Cinema only wants the North American distribution rights for "Searching for the Midnight Kiss"?"

“Don’t your company have the ability to issue overseas?”

Liu Jiang deliberately pretended not to understand the situation and stabbed Shay in the chest.

Before meeting the other party, he knew the details of New Line Cinema.

Unlike the Big Seven, New Line Cinema, as a second-tier Hollywood distribution company, has not established a complete overseas distribution channel.

Overseas distribution channels are the dream of all distribution companies aspiring to climb up, and New Line Cinema is no exception.

But before New Line Cinema could realize its dream, Warner Bros. Entertainment came calling.

After various tactics and hard work, Warner Bros. Entertainment acquired part of New Line Cinema's equity from Shea.

New Line Cinema's establishment of overseas distribution channels is over!

Ultimately, this action by Warner Bros. Entertainment is actually a manifestation of the collective will of the seven major Hollywood bodies.

Overseas distribution channels have also become an eternal pain in Xie Yi’s heart!
At this time, stabbing the opponent with a knife is only one aspect of revenge. More importantly, it is to point out New Line Cinema's weaknesses.

Turn the other party's disadvantages into your own advantages so as to seek more benefits.

The corner of Xie Yi's mouth twitched, and his expression suddenly turned ugly. He felt a little unhappy as the other party refused to open the pot.

But Shay soon stabilized his mentality. After all, this young boxing champion had just stepped into Hollywood, so it was normal for him to not understand the situation.

What the other party said was all true, and there was no way he could deny it.

After thinking for a moment, he admitted this clearly.

"John, New Line Cinema's overseas distribution channels are not perfect enough. Currently we only deal with the North American market."

"This is actually good for you. If the movie is a hit at the box office, then overseas rights and sequel production rights will be available."

Liu frowned and shook his head vigorously, interrupting Xie Yi's confusion.

"I'm very sorry! Mr. Shea, my goal is global distribution, and the distribution appointment you gave does not meet my expectations!"

"If I reach a cooperation with you, then I will have to find another overseas publisher, which is not only troublesome but also requires me to pay a greater price!"

"As for the situation you mentioned, there are too many uncertain factors."

"Although I also want the movie to be a hit at the box office, but who can guarantee this!"

Liu Jiang hid his true thoughts, seized the opponent's weakness and refused to let go, and launched a crazy attack.

After a pause, he added a few more words.

"Mr. Shea, you must also know that MGM Films and Buena Vista Pictures are negotiating with me about a distribution agreement."

"Not only did their North American box office commission for this movie be less than yours, they were also responsible for pushing the film overseas."

"I really can't find any reason to cooperate with you, how about we do this for today!"

As soon as he finished speaking, General Liu immediately stood up, pretending to shake hands with the other party, and showed that he was ready to leave.

Xie Yi was worthy of being a veteran. After being stunned for a moment, he immediately stood up and stopped the other party.

"John, don't worry! If you are not satisfied with this distribution agreement, we can still talk about it!"

"New Line Cinema is really not as good as MGM and Buena Vista in terms of distribution channels."

"But they are either production companies themselves, or they hold a large number of shares in the production company." "Do you know how many movies they release a year? These two companies will not invest much in your movies at all. Lots of resources!”

Shay lowered his stance and decisively acknowledged New Line Cinema's shortcomings.

Then, he changed the topic and tried to persuade the other party from another angle.

Seeing General Liu retracting his hand and falling into deep thought, Xie knew that his words had obviously had an effect.

He lightly patted the other party's shoulder and continued to confuse him.

"The situation in our company is different. There are only a limited number of movies released in a year."

"The resources New Line Cinema invests in each film are unmatched by the small projects released by those two companies!"

"You also know that for low-cost romantic comedies, the North American market is the key, and overseas box office revenue is not much at all!"

"As for the share of the North American box office, we can definitely discuss it again!"

Shea actually didn't believe that MGM and Bowie Pictures could offer Liu any good terms.

But he also saw that his bargaining chip to give up overseas copyrights and sequel production rights was obviously not enough.

If he wants to win the movie "Looking for the Midnight Kiss," he has to continue to make concessions.

Hearing Xie Yi say this, General Liu felt happy, but the expression on his face looked very hesitant.

After hesitating for a moment, he said slowly.

"Mr. Shea, the promotional funds offered by MGM and Buena Vista for "Searching for the Midnight Kiss" are no less than US$100 million."

"They also promised to push the film into theaters this year, allowing the new Caesars Entertainment to recover funds as soon as possible."

"If you can make the same commitment and at the same time reduce the commission ratio to cover my lost overseas box office revenue, I am willing to talk to you again."

Regarding the schedule, General Liu is of course making nonsense. He cannot push the envelope at this time, let alone when.

The cost of time is also a cost. If "Looking for the Midnight Kiss" can be released as soon as possible, the money you invested can be recovered in the shortest time.

"John, you're not bluffing me! When did MGM and Buena Vista become so generous!"

"Even if they value the movie "Looking for the Midnight Kiss" again, they won't make such a big concession!"

"This is too unreasonable! It's beyond my imagination!"

Xie Yi was indeed a little surprised. If the other party was talking nonsense about the box office commission, he would understand it.

Business negotiations! Bluffing is naturally indispensable.

But it’s a little abnormal that the publicity and distribution expenses and release schedule can be so exaggerated!
These two conditions are not as confidential as the box office share, and you can get a rough idea with a little inquiry.

Even if the other party can make it up, they won't use these two conditions to bluff people.

If everything the other person says is true, then only part of it is true.

This only proves that MGM and Bowie Pictures have really worked hard to win the movie "Looking for the Midnight Kiss".

Both companies are very optimistic about the box office potential of this movie, and they are unwilling to give up this piece of fat, so they gave such conditions.

"Mr. Shea, with your connections in Hollywood, it is not difficult to figure this out!"

"If you really don't believe it, then I have no other choice!"

"It seems that there is no need to continue the negotiations between us!"

General Liu was about to leave again, but Xie Yi's expression changed, and he finally stopped him.

"John, don't be angry. It's not that I don't believe you, it's just that these conditions are a bit too generous for a small-budget romantic comedy!"

"Don't forget that the publicity and distribution expenses given by those two companies are higher than that of New Line Cinema, but you can't just calculate it. Part of their publicity expenses have to be spent overseas, while we only focus on the North American market!"

"As for the schedule issue, New Line Cinema has not released any films recently, and "Searching for the Midnight Kiss" has also been produced. If we can reach an agreement quickly, I will arrange for the film to be released as soon as possible."

Xie Yi's mind was spinning quickly and he explained to General Liu the issues regarding the publicity and distribution costs and release schedule.

If the other party can agree to these two conditions, then the negotiation can continue.

As for the conditions Liu General mentioned, I will send someone to investigate clearly afterwards.

Anyway, we probably won't be able to sign the contract today, and the empty talk can be overturned at any time.

If everything Liu Jiang said was true, or partially true, then he would not be able to let go of the movie "Looking for the Midnight Kiss".

Can Metro-Goldwyn-Mayer and Bowie Pictures spare the cost? Can’t we, New Line Cinema?
After Liu Jiang thought for a while, he nodded slowly and said.

"Twenty percent of the North American box office revenue and a commission of the total revenue from video tapes, DVDs, and all television copyrights."

Shay shook his head without hesitation, his face instantly turned ugly, and he answered with great difficulty.

"Absolutely impossible! Not to mention making money with this commission ratio, New Line Cinema may not even be able to recover the promotional expenses!"

"John, for the sake of director David Lynch, can you stop bargaining so hard!"

"Twenty-seven percent will be taken from the North American box office revenue, and a commission will be taken from the total revenue from video tapes, DVDs, and all television copyrights."

Huh! At this time, I thought of building relationships! How did you deal with me before?
Liu Jiang secretly cursed, not believing the other party's lies at all, but business negotiations must have some back-and-forth to be interesting.

"Twenty-one percent of North American box office revenue"

"John, the theaters that New Line Cinema can influence are located near schools and other places where young people gather."

The two began to bargain and use their own methods to engage in a fierce confrontation.

Of course, one negotiation could not solve all the problems. In the next few days, the two sides began a tug of war.

Shay brought in two negotiators from New Line Cinema, while General Liu roped in two Hollywood veterans, Jonathan and Kemal.

After numerous rounds of negotiations, New Line Cinema and Caesars Entertainment finally signed a North American distribution agreement.

New Line Cinema takes a 25 percent cut of North American box office receipts, including all costs incurred on distribution.

The total income from video tapes, DVDs, and all television copyrights will be 20%, and the derivative income will be 50%.
At the same time, New Line Cinema has promised to invest no less than US$120 million in promoting the film in North America.

Among them, 40 US dollars are specifically used for Internet promotion, which General Liu specifically proposed to Shay.

Since then, "Looking for the Midnight Kiss" has entered the promotion and release stage, with the release date initially set at late October.

The long march of thousands of miles is just one step away, and General Liu can't completely relax yet.

(End of this chapter)