Hollywood Hunter

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A private airport on the south side of Chicago.

After Daenerys Entertainment's Falcon business jet landed, Robert Iger and Ella Deutschman were very enthusiastic to get a couple off the plane, where the company was assisting John Hughes in the filming of "Uncle Buck" "The team also specially sent a car to pick up people, which seemed to be meticulous.

After the couple left, Iger and Deutschman re-boarded, and the Falcon took off and continued eastward.

In the cabin, when the plane was in a stable state, Ella Deutschman took out a thick list of Oscar judges from her briefcase, opened it, found a name, and wrote a few words with a pen.

Today is Monday, January 23rd.

The previous weekend, Deutschman not only negotiated the rights to adapt six stage plays, but also hosted a reception for awards PR for three consecutive days starting on Friday.

The couple who just got off the plane, whose husband is a judge for the Oscar photography awards, said at a cocktail party on Saturday that they were going back to Chicago today, and Ella Deutschman kindly invited them to take the company's private jet.

This kind of small favor and small favor doesn't cost much, but it can leave a very deep impression on the couple.

This year's Oscar nominations have yet to be announced, but Daenerys Entertainment's PR campaign has already begun.

Robert Rehm was busy expanding Daenerys Entertainment's overseas distribution channels. The business nature of Highgate Pictures was destined to rely on major film awards to survive. Simon entrusted the company with the award PR tasks for several films last year. ichman.

After losing her bid for Sex, Lies, and Videotape, Ella Deutschman realized that her strategy of buying as many copies as possible for distribution would not work out so well. While adjusting the plan, the public relations results of this awards season have become the key to whether he can be recognized by Simon during the one-year trial period.

In the last trip to the UK and this time on business trip to New York, Ella Deutschman did not forget to visit the award-related contacts accumulated over the years in her spare time. Working with the awards marketing team, no effort was spared.

The Golden Globe Awards, which is the vane of the Oscars, will be held this Saturday, and the corresponding public relations work has ended. His next focus is the Oscars.

Speaking of which, with the current popularity of "Rain Man", under normal circumstances, this film is destined to be the big winner of awards season.

However, Simon did not want Rain Man director Barry Levinson and actor Dustin Hoffman to win the award, but he wanted to secure the best picture, and he also wanted Dead Poets Society to win the best director award. , This is the biggest difficulty in PR this year.

Iger and Deutschman both agree very much with the collaborative mechanism proposed by Simon and implement it, so they get along very well. The three-day cocktail party on weekends is held at Iger's house for two days.

The two chatted about work all the way. After more than two hours, the Falcon business jet landed again, this time it was still not Los Angeles, but Salt Lake City, Utah.

The 5th Sundance Film Festival kicked off last Friday. Although he knew that any film the company was interested in could be scrambled by other studios, Deutschman still planned to see if there were any outstanding films at the festival this year. Or an up-and-coming filmmaker worth wooing.

Moreover, there should also be no shortage of Oscar judges who can contact the feelings in person at the film festival.

Simon's explanation to Deutschman is to take every step of the way.

There are more than 3,000 Oscar judges, one by one, attracting one by one, one by one in public relations, and one by one in establishing contacts, and one day they will be able to understand them all.

The reason why the Weinstein brothers in the original time and space can be invincible at the Oscars is not that the brothers put a lot of energy into public relations every year for each judge, but the most important thing is the deep-rooted strong personal connections and profound influence accumulated over the years.

The Falcon business jet finally arrived at Los Angeles' Santa Monica Airport around 11:30.

Iger sent the two entourage employees to Burbank and came to Daenerys Entertainment headquarters by himself. Amy's assistant Vanessa was already waiting for him.

After a brief greeting, Vanessa said, "Please come with me, Mr. Iger, Ms. Pascal is attending a meeting. She said that you can go directly to the conference room after you come."

Iger was a little unclear, so he followed Vanessa to a small conference room in the company's office building.

Pushing the door and going in, Nancy Brill, who was in front of the slide screen, saw Iger, stopped explaining temporarily, and said hello, "Good morning, Bob."

"Good morning," Iger nodded to Nancy, shook hands with Amy who got up, sat down beside her, and said to Nancy, "I'm sorry to interrupt you, Nancy, please continue."

Vanessa handed Iger a copy, and Nancy continued: "Blockbuster won a game rental lawsuit with Nintendo two years ago, gaining the right to sell and rent game cartridges." Teenage Mutant Ninja Turtles "After the development is completed, we can also use Blockbuster's channels to distribute goods, and we can take the initiative in both the local channels and marketing in North America."

Iger listened to Nancy's introduction, and quickly read the information that Vanessa handed over.

It turns out that this is a development plan for the video game "Teenage Mutant Ninja Turtles" for the Nintendo fc game platform. Seeing this, Iger couldn't help but think of the Atari crash a few years ago.

Atari was originally a game console and software development company owned by Warner Bros.

In 1977, the Atari 2600 game console launched by Atari quickly swept the United States and reached its peak.

It even reached the level of popularity of one Atari game console in every three American households.

However, after the success of the Atari 2600, Warner began frantically squeezing profits from this game platform, unchecked, allowing game makers of mixed quality to develop a large number of inferior games.

Countless inferior games flood the market and continue to consume the patience of users.

In the end, the 1982 video game "Alien et", which Warner had hastily developed in six weeks, became the trigger for a major meltdown.

Users who have been devastated by various inferior games originally thought that the fame of "Alien et" and the games produced by Warner's official brand must have quality assurance. As a result, the quality of "Alien et" is extremely low, and even There are many low-level bugs that the most inferior games do not appear.

As a result, only 1.5 million copies of the 4 million cassettes Warner had prepared for "Alien et" were sold, and the rest were sent to the junkyard for direct destruction.

But it's not the worst.

After that incident, users abandoned Atari completely.

The sales of Atari game consoles and software fell off a cliff in the following years. In the early 1980s, the game market size exceeded 3 billion US dollars, and in the most deserted period in 1985, it even shrank to 100 million US dollars.

Some analysts believe it will take at least 20 years for the North American video game market to recover.

However, after the short market "Ice Age", Nintendo, which learned the lessons of the Atari collapse, gradually filled the North American market vacancy left by the Atari collapse through a series of restrictions on the quality of the game such as the royalty system.

In recent years, the North American video game market has begun to recover again. Of course, this field has unfortunately become the world of Japanese companies.

Nancy in front of the stage ended the introduction, discussed a few words with Amy, and humbly asked Iger's opinion.

The total budget in his hand was only 2 million US dollars, but he made a full 28-page planning plan. Iger thought for a while and asked: "Nancy, buying the video game development rights of "Teenage Mutant Ninja Turtles" requires 200,000 US dollars , but you're only going to make this game with a budget of $500,000, can you guarantee the quality?"

Of the total budget of $2 million, $200,000 is used to purchase the video game development rights of Teenage Mutant Ninja Turtles, $500,000 is used for production, $300,000 is used to maintain the daily operations of the game company, and the final $1 million is for the completion of game development After the production and marketing and other expenses.

Nancy nodded earnestly and said, "The main expenditure for video game development is labor, because it is the first time I am involved in the field of video game development. In the early stage, I only planned to set up a studio with about 10 people. The budget of $500,000 is enough."

Iger asked again: "Superheroes such as "Spider-Man" and "Fantastic Four" on Marvel's side are also very suitable for adaptation into games, and they are more famous than "Teenage Mutant Ninja Turtles", why choose "Ninja God" What about Turtle?"

Nancy shook her head and said, "I tried talking to Simon, and he said no."

Iger wondered: "Huh?"

Nancy was a little helpless, and said: "Simon seems to be very fond of Marvel, and he doesn't give me any room for negotiation. I also talked to him about "The Lord of the Rings", and he was rejected, and "Lola Run", he The surrounding copyrights have been packaged and sold. It just so happens that the company recently set up a live-action movie "Teenage Mutant Ninja Turtles". After researching it, I found that its character setting is very suitable for adapting it into a fighting game with a horizontal version. And Phantom Studio After contact, they haven't sold the game development rights of "Teenage Mutant Ninja Turtles", so I bought it."

Iger is not familiar with the field of video games. Since Nancy has considered all the problems that he can think of in a short time, he has not made any comments rashly.

After a few more chats, it was already noon, so we hurried to a nearby restaurant for dinner.

Just recently completed the investment in Blockbuster, Nancy quickly came up with another plan, which once again brought a lot of pressure to Amy.

Amy actually considered getting involved in video game development, but didn't have the time to push it.

Now, Nancy has come up with this plan, and the established game studio will also be affiliated with the consumer goods department, rather than the direct departments of companies such as Daenerys special effects and Pixar animation. If successful, Nancy's credit must be the greatest. Even if it fails, the loss of $2 million is really irrelevant to Daenerys Entertainment now.

So at lunchtime, while trying not to show herself, Amy inevitably got a little closer to Iger.

The mild-mannered Iger is far from the energetic and aggressive temperament of Nancy.

Obviously, Amy could not have known what Simon expected of Iger.

Nancy's consumer goods division, even if it grows in a few years, will be far from comparable to the TV division. Moreover, the consumer goods department is located in Los Angeles, and it is destined to be under the control of the parent company at all times. Iger, who is far away on the east coast, is in charge of the TV department alone, but he is completely at the level of a "frontier official".

They chatted and chatted for a while, and even though they were having a meal, they quickly talked about work.

Daenerys Entertainment's TV series are mainly produced on the West Coast. With the advent of the spring TV season, Iger will start the work rhythm of flying to Los Angeles every week. This time, in addition to the preparations for several TV series, there are more important things.

"About Who Will Be a Millionaire, Tom talked about it in detail yesterday when he invited me to dinner at noon, and he said that if we are not willing to make concessions, abc can only reduce the number of episodes ordered for the second season and adjust the screening. time," Iger finished, noticing Nancy's puzzled eyes, and explained: "

ABC Chairman, Tom Murphy. "

Nancy nodded, but did not answer.

Amy asked, "What about the conditions?"

Egger said: "The quotation for each issue is halved, and abc also participates in the revenue share of advertising placement in the program."

Amy frowned immediately and said, "Simon should not agree to this."

Nancy looked around and couldn't help but ask Iger, "Bob, what's our profit on Who Will Be a Millionaire?"

As the head of the consumer goods department, Nancy is well aware of the peripheral product revenue data of "Who Will Be a Millionaire". However, the company's annual financial audit has not ended, and she does not know the overall revenue and profit scale of this phenomenal popular reality show.

Facing Nancy's inquiry, Iger did not hide it, saying: "According to last year's financial data, it is about 180 million US dollars. If you calculate the entire first quarter, it is about 250 million US dollars."

Nancy's eyes widened, her red lips parted slightly.

She felt that she might have heard it wrong, or that Iger had explained it wrong, so she asked, "Total revenue?"

Iger shook his head: "Net profit."

Nancy had always thought she wouldn't be surprised by anything, but this time she couldn't help but take a deep breath.

Slowly exhaling a big breath, she still didn't quite believe it, stared at Iger and said, "$250 million, how is this possible?"

Being able to make a beautiful woman look surprised is still very satisfying for a man's vanity, Iger explained patiently with a smile: "Compared to TV shows that only have 13 or 26 episodes per season, 'Who Will Be a Millionaire' has 69 episodes per season. , the transaction price per issue is $2 million. The first season of "Who Will Be a Millionaire", according to the settlement rules we negotiated with abc, after the winter break last year, abc has paid us $83 million for the first season. Expenses, including the $30 million for the additional 15 pre-season installments, are just $110 million in revenue. In addition, the total revenue from in-show ad placements is $56 million, and syndicated distribution and overseas licensing revenue is about $27 million.”

Nancy listened attentively, and quickly reported the final statistics: "The total revenue is 196 million US dollars, and the net profit is 180 million, which is really reasonable. God, no wonder our little boss is so profligate, the two companies under his name. The financial situation has never been in trouble, and it’s really profitable.”

However, as the thinking went deeper, Nancy also immediately discovered the problem.

As far as she knows, the best-run nbc TV network among the four major TV networks.

The financial year cycle of the big four TV networks is basically calculated from the last quarter of each year.

According to GE's public financial data, affected by the screenwriter's strike last year, the nbc TV network's total revenue in fiscal year 1987-1988 was $3.3 billion, but its net profit was only $310 million, compared with 3.8 in the previous year. Billion dollars fell sharply, with a profit margin of less than 10%.

After careful consideration, Nancy confirmed that "Who Will Be a Millionaire" can bring Daenerys Entertainment a net profit of $250 million in one season, but there is no problem.

The network operates seven days a week, and the total number of prime-time shows is about twenty or thirty.

However, just like the movies produced by Hollywood studios every year, these TV shows must be a small part of profit or loss, and most of them are basically breaking even. Coupled with the huge basic operating expenses of a national TV network, it is very rare to be able to make $310 million a year like nbc.

Let's watch "Who Will Be a Millionaire", this show occupies the most prime three days of the week at eight o'clock, and it is an hour-long show. Because of the phenomenal ratings data, the scale of its advertising revenue is completely comparable to the studio's most profitable box office blockbuster film that exceeds 100 million each year.

Compared with the comprehensive investment of abc to operate a national TV network, as a producer, Daenerys Entertainment only needs to bear the production cost of only about 20 million US dollars in total and a small amount of marketing expenses in the early stage.

Therefore, for Daenerys Entertainment, the total revenue brought to the company by the first season of "Who Will Be a Millionaire" is about 280 million US dollars, which is less than 10% of the TV network's annual revenue. But like a low-budget, high-grossing movie, Daenerys Entertainment's profit margin on the show is close to 90 percent.

Occupying the most high-quality resources and taking the most lucrative profits, without sharing the huge operating expenses and cost of loss-making projects of the abc TV network, Daenerys Entertainment naturally makes money and makes money.

Thinking of this, Nancy quickly asked Iger again: "Bob, how much can abc earn on this project?"

Iger thought about it and said, "If you only count this show, it's probably $80 million."

Hearing this, Nancy glanced around between Amy and Iger, pulled the corners of her mouth and silently made a weird grimace.

Amy and Iger also looked at each other silently.

Daenerys Entertainment earns 250 million. As the platform owner, ABC, which should be in a strong position, only has a profit margin of 80 million US dollars, which is less than one-third of Daenerys Entertainment. .

Tom Murphy was able to patiently negotiate with Daenerys Entertainment, mainly because abc is really inseparable from "Who Will Be a Millionaire".

Although the average viewing data of a single show is firmly suppressed by "Survivor", "Who Will Be a Millionaire" is 3 issues per week compared to 13 issues per season of "Survivor".

With the superlatives of "Who Will Be a Millionaire"

In terms of high viewing data and TV network's comprehensive viewing share, ABC, which was originally only a little stronger than the emerging Fox among the four major TV networks, has gone through last year's autumn season, and has already shown a slightly overtaking attitude to the No. 1 nbc TV network.

Under such a good situation, abc will definitely not dare to abandon "Who Will Be a Millionaire" rashly.

But at the same time, if Daenerys Entertainment is unwilling to make compromises and the distribution of benefits is seriously unbalanced, as long as the abc management has a little foresight, the TV network will definitely try to get rid of the "Who Will Become a Millionaire.

Everyone was silent for a moment, and Amy finally said: "Simon will decide this matter himself, Bob, talk to abc again, and then write a report and send it to Melbourne."

Iger nodded, the stakes are very important, and it can only be the case at the moment.

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