Entertainment tycoon since 83

Chapter 260 Issuance Conditions
Huang Ze knew what the other party would discuss, but he didn't care at all.

Don't think about those things.

Eat when you should, drink when you should, and don't take anything to heart.

Just play, have fun, and don't think too much about anything.

With the previous "Pulp Fiction" as a foundation, he now lacks everything except a company to distribute the film.

Even if Warner doesn't want it, there are plenty of people who do!
If you want to do it, do it. If you don’t want to do it, get out!
As long as it can be released, no matter who gets it, they will definitely spend money on publicity. If you have that much free time, you might as well worry about whether the audience will like the film if it is released ten years in advance.

I had dinner and met up with some friends in LA, and the time went by really fast.

In the blink of an eye, it was the third day. George also called Huang Ze and asked him to discuss the distribution of "Crouching Tiger, Hidden Dragon" at Warner.

Huang Ze came to Warner again with the negotiation experts and lawyers he had used several times before.

After some polite exchanges, we got down to business.

"Huang, we are willing to buy out the North American distribution of your "Crouching Tiger, Hidden Dragon" for five million U.S. dollars." After all, the other party did not give a price that was too low.

They were also worried that the price would be too low and the negotiations would fail, forcing a potential director like Huang Ze to never work with Warner again.

After all, Huang Ze is a young man. At the age of 30, he is definitely young in the director circle. Most directors are still working as assistant directors at this time.

And this young man has just achieved great success in the film industry.

Once the temper flares up, no one can predict.

"This is not in line with my employer's worth. Pulp Fiction has at least brought Warner hundreds of millions of dollars in profits. His new film should get a higher price, not such an insulting offer."

"But Crouching Tiger, Hidden Dragon is an oriental kung fu film, and there has never been a precedent for such a film being a big hit."

"Before Pulp Fiction, there was no precedent for such a film to sell so well." The negotiation expert began to flatter Huang Ze. "The facts have proved that Huang is a director who has set a precedent. Since the first film he made, he has never failed. Successful people will continue to be successful, right?"

The two of them started chatting back and forth.

Huang Ze was daydreaming nearby.

The first day passed like this. On the second day, the negotiations still failed, so Huang Ze finally stated the real condition, "Share it."

How much money can you make if you sell at a bargain price?
No one realized the potential this film could have.

But Huang Ze knew.

Then we can’t sell them all out, it’s better to share the profits to retain employees.

"Profit sharing?"

"Haha." Huang Ze smiled and said nothing.

Profit sharing, what’s the difference between that and giving it to you for free?
The Hollywood account book is well-known, and Wall Street would have to pay a heavy price if they came in. Huang Ze doesn't think he has that ability. He can't even think about agreeing to such terms.

"Of course it's a share of the box office!" The negotiation expert continued to talk about the intention Huang Ze had told him before, "Warner will pay for the publicity costs, and we will only get a share based on the North American box office figures."

"According to convention, for foreign films to enter the North American market, our distribution fee is 40% of the box office revenue. We can also distribute your film on this condition."

Huang Ze knew that the convention the other party was talking about was correct.

It is indeed that cruel.

The cinemas get nearly half of the profit, the distributors get another 40%, and finally the producers get just over 10%.

That’s it. Many people want to get in but there’s no chance.

This is also the reason why Harvey was successful in his previous life by asking for a high price, asking for a deposit, and finally only paying the deposit, because compared to that money, everyone wanted to enter the North American market more.

However, Huang Ze already had a successful precedent, and could not apply the conventions used by those unknown directors. Such conditions would naturally not be agreed to, and there was another round of scramble.

Huang Ze then timely put forward a series of requirements including the minimum publicity expenses, the number of theaters to open the film, and the funds for Oscar submission.

After another three days of talks, the final agreement was finalized.

The publicity and promotion costs are 28% of the box office, and publicity costs are not calculated separately. Warner takes 50% of the video tape copyright, 20% of the television broadcast rights, etc., and Warner also takes a 50% share of derivative products.

Maybe it’s because Huang Ze’s previous movie was too successful.

It is also possible that he wanted to tie up Huang Ze.

This condition is something that ordinary American film companies cannot get, and most of them have to take a 30% commission.

After Warner obtained these, they had to ensure that no less than 100 theaters would be opened to support the film's Oscar bid, with the cost of the bid being no less than one million dollars, and the film's publicity costs being no less than two million dollars.

The final advertising expenses are actually just a small cover to prevent the other party from going too far, and it doesn’t have much significance.

If you really want to set a number, even if it's 20 million for advertising, the other party can do it for you.

And if the box office is good after the film is first screened, the other party will be happy to add additional publicity expenses without any regulations.

"Happy cooperation!"

The two parties shook hands as usual.

"I hope we can get a result that satisfies both of us."

"I have confidence in myself." Huang Ze smiled, "You will definitely not regret today's cooperation, and you may even be very grateful."

"If that's the case, that would be great." The Warner representative grinned.

After letting go of his hand, the other party said.

"This film will be screened for a long time. In order to win an Oscar, we have to release it as soon as possible. We have contacted the theaters to squeeze in a schedule. One hundred theaters should be no problem."

"Crouching Tiger, Hidden Dragon will be released on November 1st. If possible, Huang, you can release a few new songs and sign the new album together with the movie promotion. This movie may not suit the audience's taste, and we need your fans to attract other audiences to the cinema."

Warner also benefited from Huang Zeshang's several promotions of his music albums and movies together.

And they would take two bites at a time, one for the film company and one for the record company. Naturally, they started to think of ways to get Huang Ze to do it again.

"It's coming out in early November, so it's too late to make an album. I'll just make an EP."

"..."

Warner representatives didn't know what to say.

I was thinking of just making a new song.

They are actually going to make an EP, and it has several songs, “Can we catch up?”

"It should be fine." I am famous for my speed, so three days at a time shouldn't be a big problem.

It only took about ten days to finish the three songs.

A quick decision, almost.

"Okay!" The Warner representative had nothing more to say and ended the negotiation.

Huang Ze returned to the hotel and contacted Warner Records while picking out three lyrics and music that he had written (copied) in the hotel over the past few nights.

(End of this chapter)