After the crew started shooting, Michael consciously lowered his presence on set. Maintaining the director's authority during regular filming is a fundamental skill for a producer unless the director makes significant mistakes.
Michael understood that when it came to on-set filming, he couldn't hold a candle to James Wong.
Remaining humble is never a bad thing.
Moreover, the set was still under Michael's control. He needed to sign off on daily financial expenditures and review the footage James Wong shot.
He took the latter very seriously to verify his recollection of the related scenes and increase his experience.
A week into filming, Michael confirmed that James Wong was very skilled at handling horror scenes. Even though the footage wasn't processed and was somewhat fragmented, it really had a strong feel.
Moreover, after a week of coordination and adjustment, the actors and various behind-the-scenes departments got familiar with each other, and the shooting got on track.
From Michael's observations, the lead actors Robert Knepper and Melissa Leo had very good acting skills. For actors like them, who had been in the industry for years but never became famous, the problem usually wasn't their acting ability.
The two Arab actors were also quite capable.
In contrast, Michelle Williams and Amanda Seyfried seemed a bit inexperienced.
This was normal and within controllable limits.
As a producer, Michael also had to deal with inquiries from several social organizations.
"The Purge" had gained some publicity initially, attracting the attention of some organizations.
However, there were no guild issues for now since the project wasn't registered with any Hollywood guilds and was a typical non-union project.
Non-union theatrical films were becoming rarer these days but were not unheard of.
The first to approach the crew after the shooting started was the Producers Guild of America (PGA). Since "The Purge" was filed with the PGA and Seashore Entertainment, the producer, was a member, they came to remind Michael that projects filed with the guild must pay a fee after earning revenue.
The amount wasn't much, but it was mandatory.
This was actually a rule set by the PGA, modeled after Hollywood's major guilds. Projects registered with a guild must pay a certain percentage of industry dues. When a project's total revenue (including but not limited to box office) exceeds $100 million, this fee can reach $1 million.
When a crew hires a certain percentage of guild members, it must register with the corresponding guild, or the guild will cause trouble.
Michael knew that if "The Purge" succeeded, with potential future investments increasing and the number of hired personnel rising, they would inevitably have to deal with the guilds. New projects would turn into union-registered projects.
The thought of negotiating with some guilds in the future was headache-inducing. How much better would it be if Hollywood guilds were just ornamental, taking orders from the capital?
Another organization took their inquiry much more seriously than the PGA.
The Los Angeles branch of the American Children's Welfare Bureau sent two officers to the set to verify Amanda Seyfried's child labour protection.
This is a procedure that crews with child actors must follow.
California law has explicit provisions regarding child actors under the age of eighteen, limiting their work hours, ensuring minimum hours of education, and prohibiting them from participating in dangerous or health-damaging shoots.
In addition, California law stipulates that a portion of child actors' earnings cannot be paid directly but must be placed in a trust fund for the child actor as the beneficiary.
This also protects child actors' futures, especially given that many child actors' parents are unreliable.
Children represent the future, and any civilized country actively protects children's rights.
Michael made sure to avoid trouble in these areas, ensuring everything was nearly impeccable. After an on-site inspection and interviews with the Seyfried mother and daughter, the welfare bureau officials quickly exited the set.
After sending off the welfare bureau, Michael began preparing another crucial task for "The Purge." This task was beyond the director's scope and had to be handled personally by him as the producer and owner of Seashore Entertainment.
"What does a movie need after it's finished?" Michael asked and answered himself in Seashore Entertainment's office, where the four were gathering again. "Obviously—distribution!"
Robert looked at Michael, who nodded and continued, "Whether it's direct-to-video, broadcast on TV, or released in theatres, it all falls under distribution."
"It's well known that distributors are at the top of this industry chain, able to take a cut from the producer's various revenues, with an overall percentage reaching as high as forty percent!"
George and Mary said nothing. Filming "The Purge" without entering the distribution phase would be meaningless.
Michael knew Robert was speaking the truth. A forty percent distribution cut was substantial but familiar in the industry. Companies playing with such high percentages often distributed their own production company's films.
The benefits were clear. A significant part of a Hollywood movie's budget comes from financing. Famous directors or actors often enjoy profit-sharing. With a higher distribution cut, the costs increase, profits decrease significantly, and the profit-sharing parties' income drops.
Hollywood's financial calculation rules were something Michael had been studying meticulously in his spare time.
There's much to gain here, especially when dealing with overseas investors.
It's not just Arab oil money. Hollywood attracts a lot of international capital, especially after "Titanic" made a massive profit, giving outsiders the illusion that profiting from Hollywood movies is easy.
Michael suddenly asked, "I heard an Indian delegation recently inspecting Hollywood?"
Well-informed as always, George said, "They came in early May, not many of them, and stayed for less than a week. They intend to invest in Hollywood films but are still in the preliminary inspection stage."
Michael nodded and said to Robert, "Collect information on India, Bollywood, and Mumbai, especially regarding Indian investments in Hollywood."
A bit excited, Robert asked, "Are we planning a big move in India?"
Remembering the thrilling yet rewarding experience in Abu Dhabi, Michael's team felt both financial rewards and an adrenaline rush.
That could be something to boast about for a lifetime.
Michael said directly, "I just have an idea. The detailed plan hasn't been made yet. Gather information first. A plan should be targeted."
"Okay!" Robert agreed without hesitation.
George raised his hand, "Can I skip house-sitting this time?"
"We'll see," Michael laughed. "Turning ideas into plans and plans into reality takes time."
Mary cautioned, "It's best to think it through. The more thorough the plan, the fewer the troubles."
That was a good sign. Even the conservative Mary didn't oppose.
Michael made a note in his notebook about India, knowing it might be helpful in the future.
There seemed to be a group of newly wealthy people in India?
Michael shifted the topic back, "These are for the next stage. The immediate priority is finding a suitable distributor for 'The Purge.'"
George added, "Seashore Entertainment lacks distribution capability and needs to rely on other companies for distribution. This isn't something that can change quickly."
Michael was well aware. He had only been here a few months, trying to understand the economic landscape, resolve the company's financial crisis, attract investments for new film projects, and adapt to American society. There was no time to handle distribution.
"We'll take a two-step approach," he said slowly. We'll rely on external labels for distribution now and build our distribution channels in the future." He looked at the three, asking, "What do you think?"
Robert, arms crossed, said, "A film company aiming to establish distribution channels has two main routes: build and expand its own channels or acquire an existing distribution company."
Having worked in the industry for over a decade, Robert knew it well. "The former is time-consuming and labour-intensive, like DreamWorks, founded in '94 but only establishing a complete distribution channel last year with 'The Peacemaker.'"
"The latter requires money. Acquiring a distribution label or a department within a company demands substantial funds. An example is Lionsgate, founded last year. With strong financial backing, they spent tens of millions to buy a distribution company and released the new version of 'Lolita' last year."
George added, "Even with distribution channels, we can't compete with the big companies."
Robert agreed, "Exactly."
Michael nodded. If Seashore Entertainment wanted to grow and avoid becoming like Carolco or Orion, it needed its own distribution label.
North American distribution was manageable, but international distribution took a lot of work.
DreamWorks and Lionsgate currently lack international distribution capabilities.
The Big Six tightly controlled the distribution industry's pie. Even if they became the Big Five, near-monopolistic control wouldn't change.
Hollywood wouldn't see a seventh major player in the next twenty years or more. Even DreamWorks' trio couldn't achieve it.
Traditional distribution wasn't viable. Maybe the internet was the future?
"We don't have the funds for now. Establishing a distribution department will take at least until next year," Michael said clearly. "George, keep an eye out for suitable distribution companies for acquisition."
Mary interjected, "We don't have the funds."
Michael frowned slightly. "I'll figure out the money. Meanwhile, gather information about 'The Purge' and send formal business letters to all Hollywood distribution labels. Also, Mary will accompany me to visit some distribution companies starting tomorrow."