"How did you like the film?"
"It's alright, definitely watchable."
As Gray Enrick walked among the crowd of film company representatives in the theatre lobby, he overheard a few audience members discussing the movie as they passed by.
"I thought it was okay, not that scary."
"Terrible movie!"
"You don't understand. Once you experience the real world, you'll find this movie truly terrifying. I'll recommend it at next week's film club meeting."
"Yeah, it's worth recommending to the guys. Just wonder when it's officially releasing."
The group continued discussing the film as they left the theatre.
More audience members emerged one after another, and discussions about "The Purge" filled the air. Opinions were mixed.
Walking among the crowd, Gray Enrick nodded to himself. A movie that sparked discussion was a movie that piqued interest.
It was usual for some to like it and some to dislike it.
At the theatre entrance, Michael Davenport and a middle-aged man named Robert waited. Gray Enrick greeted them, politely declined their invitation to dinner, and left the theatre.
The other attendees quickly followed suit.
After seeing them off, Michael felt a bit relieved.
"Will the mixed reviews affect the outcome?" Robert asked quietly.
"No film can please everyone," Michael replied, feeling satisfied with how things had gone. "It's normal to have both praise and criticism."
"Just hope it has some impact," Robert said, looking into the distance.
Michael smiled, "As long as it influences their decisions even a little, we win."
Robert admired Michael's strategy, "You always have a plan."
Michael nodded, "The film itself is the foundation, but we can always think of ways to enhance its appeal. Marketing becomes increasingly important."
Robert nodded in agreement, realizing that aside from experience, Michael surpassed him in many aspects.
Still, working for such a boss was motivating and educational.
Michael changed the subject, "Will the copies arrive tonight?"
"Twenty film copies," Robert assured, "They will be delivered by 8 PM."
"Make sure they are delivered to the companies tomorrow," Michael instructed.
The screening was just the beginning. The film copies needed to reach each attending distribution company.
Distributors often conduct multiple evaluations before deciding.
The next day, Michael ensured the copies were delivered and had the company's newly hired phone operator call the distributors every couple of days.
"Sir, our film 'The Purge' has great market potential. Have you made a decision? Not yet submitted to your superior? You can invite your superior to watch it together..."
During that week, Michael personally made several calls but received mostly disappointing responses.
Warner Bros.' Bran Milner was the first to decline, followed by the Hollywood Films representative who said the film didn't fit Disney's live-action style. Dimension Films agreed to distribute but wanted to buy out the rights, and Lionsgate's Gray mentioned his superior had yet to watch the copy.
"Sorry, Michael," DeLong said, holding the phone in one hand and picking his ear with the other, "New Line isn't interested in your new film. Maybe next time."
After hearing a response, DeLong hung up, placed "The Purge" copy in a large cabinet, and stacked it with many other dust-covered copies.
If the film couldn't even pass his judgment, there was no point in bothering his superior.
Five days after the screening, Michael finally received good news. Sony Entertainment's distribution company was willing to have preliminary talks about "The Purge."
"Your film has flaws but also features," Chris from Sony Distribution said, looking at Michael in the meeting room. "Sony Entertainment is interested in collaborating."
Michael nodded, "I hope we can work together."
Chris got straight to the point. As Columbia Pictures' parent company, Sony Entertainment didn't want to waste time on such a small project, "Let's talk about distribution commission."
This was the core issue. Without consensus, there was no need to continue. Chris stated, "Sony Entertainment will buy the global distribution rights for 'The Purge.' The commission for North American box office revenue is 30%, 40% for overseas box office revenue, 40% for all home video and new media rights, and 50% for merchandising revenue, the industry standard."
Michael frowned slightly. While not the highest in the industry, these commission rates were quite steep.
He had reviewed cases where small production companies worked with major distributors, with box office commission rates reaching 40% and all ancillary revenue commissions at 50%.
Chris wasn't finished, "Additionally, Sony Entertainment will hold the sequel rights for the film."
In business negotiations, one always aims for the maximum benefit.
"The commission rates are too high," Michael said slowly. "Unless the film becomes a huge hit, Seashore Entertainment will certainly lose money."
He tried to negotiate, "Let's discuss overseas distribution rights after the North American release. Reduce ancillary revenue commission to 20%, and Seashore Entertainment retains sequel rights..."
Chris raised a hand to stop him, "Mr. Davenport, these are Sony Entertainment's conditions for distribution." He smiled, "Frankly, no other company has expressed interest in collaborating with Seashore Entertainment so far."
Michael remained calm, "That's true for now."
This fact was apparent to those paying attention. Chris was clearly taking advantage to lower the price.
Being so passive in negotiations was entirely within Michael's expectations. Seashore Entertainment lacked the leverage to haggle, especially since Sony Entertainment had no competitors.
To be blunt, Seashore Entertainment needed Sony Entertainment, while Sony could do without "The Purge."
Even if Columbia Pictures, owned by Sony Entertainment, was the least successful of Hollywood's Big Six.
After thinking for a moment, Michael remembered that Gray from Lionsgate mentioned his superior hadn't watched the copy yet and decided to stall, "Can I have a few days to consider? I need to discuss it with my team."
Chris had patience, "Don't keep us waiting too long. Our schedules for this year and next are quite full."
Michael smiled, "A week at most."
It wouldn't take a week to find out Lionsgate's proper stance. After all, Lionsgate was newly established and had few distribution projects.
...
In Lionsgate's screening room, staff were storing the dismantled copy.
Distribution director Navas was the first to leave the screening room. Gray quickly collected everyone's questionnaires, glanced through them, and followed Navas to his office.
"This film is better than I expected," Navas said, wiping his uncomfortable eyes with a tissue. "The strengths and weaknesses are equally prominent."
As the recommender, Gray had to speak favourably, "We've focused on horror films in recent years. Should we consider this one for this year's distribution lineup?"
Navas didn't answer but asked, "What do others think?"
Gray placed the stack of questionnaires on the desk, "Two B's, three B-minuses, and two C's."
Though there were no A's, Navas nodded, "Not bad."
Even within professional companies, horror films generally received lower ratings.
"There's another thing," Gray said, "At the screening, although many said the film wasn't good, a significant portion of the audience said it was. Oh, and..."
He recalled, "Some viewers were so engrossed that they walked backward to the bathroom to keep watching."
Navas stroked his chin, "So, the film is very appealing to some audiences."
Gray nodded, "You could say that."
Making a note of viewers willing to hold their bladders and walk backward, Navas thought if Gray was right, "The Purge" should have an audience.
Moreover, the internal feedback was generally positive.
"Alright, let's do a few more internal screenings," he decided. "Then bring Michael Davenport in. I'll talk to him."
(Regarding distribution commissions, 30% for North America and 40% for overseas is standard. Some even exclude promotional expenses from these calculations.)