"How is the atmosphere in the new company?" Michael asked.
Robert thought for a moment and said, "Overall, it's not bad. The sense of exclusion isn't strong. Of course, saying I'm welcome would be false, but it hasn't affected normal work. Management, like Garcia and Thomas, actually welcomed the acquisition. They want to distribute real big movies instead of buying small films from overseas every year and waiting to reap those few million dollars. The previous three owners were too conservative."
Michael didn't mind employees having their own ideas since people aren't machines: "The distribution work will get busy soon."
The two discussed many things about the distribution company. Embassy Pictures wasn't huge, and the personnel relationships were relatively simple, but internal factions and competition still existed, as they do in any typical company.
"Actually, my main concern isn't the management," Robert said seriously. "Many employees in this company have gradually developed habits in a slow-paced work environment. I'm worried they won't keep up with our fast pace."
Michael also had this concern and said, "As long as the distribution channels are smooth, we'll use a survival-of-the-fittest approach."
"Understood," Robert replied.
"The Sundance Film Festival is coming up," Michael said, sharing his plan. "I'm planning to go and see if we can buy a suitable low-budget film to get the distribution company busy."
After the acquisition, cohesion and unity can't be resolved in a short time.
The best way is to use the success of one film to get the new company on track.
Robert nodded, "That's a good idea. It will test the employees and provide experience in large-scale film distribution." He reminded, "When buying, don't pay too high a price, okay?"
Michael had some confidence in the distribution channels that Embassy Pictures had built over more than ten years and said, "We'll see when we get there if there's a suitable film."
The Sundance Film Festival is a paradise for independent films. It features not only films produced in Hollywood but also many small productions by filmmakers not affiliated with Hollywood.
These small productions often can't find distribution channels under normal circumstances and will spend a lifetime in storage. The roadside screenings at the Sundance Film Festival are their best chance. In recent years, several low-budget films have achieved box office success after debuting at Sundance.
Having just acquired a distribution company, Michael planned to sort out "Kingsman" and then try his luck there.
Maybe he would find an ideal film.
Robert asked about "Kingsman": "How's 'Kingsman' going?"
Michael shook his head lightly, "Still haven't found a suitable director."
This film is meant to raise funds but also needs to be made as well as possible to recoup more money. They couldn't just hire any lousy director.
Robert joked, "If it doesn't work out, you could direct it yourself."
Michael shrugged, "I can imagine 'Kingsman' becoming the worst film in Hollywood history."
Leaving Embassy Pictures, he was still thinking about the film, which was still being refined and modified, differing somewhat from what the Abu Dhabi Investment Authority had seen.
The Arab protagonist would not change, but supporting characters on the side of justice could be white, black, Latino, etc. Minority groups do have some movie consumption power.
Adding characters of different ethnicities would also benefit future marketing and distribution.
To recoup as much money as possible, they couldn't rely solely on Arab audiences.
Michael then met up with George Clinton and visited various unions. With the success of "The Purge" and the relatively high investment in these two productions, hiring employees on a large scale and dealing with unions was unavoidable.
Otherwise, if the unions caused trouble, it would be a massive headache.
Seashore Entertainment was no longer the unknown video production company it once was.
They visited the Producers Guild, the two major Actors Guilds, the Technicians and Coordinators Union, and the Directors Guild, which James Wong had just joined. Michael went to each, completing the union registration and filing for "Final Destination" and "Kingsman."
These two films became bona fide union projects, with the crew's corresponding cast and crew protected by the unions and future film revenues subject to hefty union management fees.
Other things aside, having the unions charge capitalists didn't sit well with Michael.
Isn't this upside-down?
However, this industry has developed for nearly a century, with established rules that a small company can't challenge.
Being a registered union project also meant employee salaries had to meet regulations.
As is well known, unions have minimum wage standards.
Additionally, the crew needed comprehensive insurance, meaning they had to pay extra to buy insurance from an insurance company.
They needed more than one type of insurance.
Michael contacted Allianz's Fireman's Fund Insurance Company. Over 60% of Hollywood crews and mainstream commercial productions used this company for third-party guarantee services.
Strictly speaking, insurance isn't a bad thing. In case of an accident, the insurance company would pay.
In film production, anything could happen: equipment theft, crew injuries, or damage to filming locations.
What if a chandelier falls and burns the carpet? What if someone breaks a leg during filming? In such situations, Michael, as the producer, would be responsible.
Also, insurance proof could be used as a guarantee when renting locations, props, and equipment.
Michael, following union requirements, purchased actor insurance, film and videotape insurance, equipment insurance, workers' compensation insurance, and errors and omissions liability insurance from Fireman's Fund.
Because of the stunt team, the workers' compensation insurance coverage was as high as $300,000.
"Mr. Davenport, I need copies of the stunt scripts and stunt scene designs for filing."
Bob from Fireman's Fund told Michael, "Once the insurance contract takes effect, no major changes to the stunt scenes are allowed without the insurance company's consent."
Michael found this bothersome but said, "Don't worry, I don't like dangerous stunts either."
Bob said thoughtfully, "To be clear, if there's a breach, we'll cancel the insurance."
Michael nodded, having some understanding of Hollywood's insurance business.
In the past, Hollywood's most famous daredevil, Tom Cruise, performed all the stunts himself in the scene where he leaps from the world's tallest building, Burj Khalifa, in "Mission: Impossible - Ghost Protocol." He trained on the tower for eight days.
The original insurance company refused to insure the dangerous stunt, demanding a script change or a stunt double. Tom Cruise refused, fired the insurance company, and the producers temporarily switched to another insurer. It was said no company was willing to insure, and ultimately, a personal fund provided the guarantee.
Such cases, like Tom Cruise's, are rare. Although Hollywood actors are generally dedicated, few are as daring as him.
Insurance companies refusing specific businesses isn't unprecedented.
For example, Robert Downey Jr., due to drug addiction in his youth, was in and out of rehab from 1996 to 2001. Because of the high risk, no insurance company was willing to insure him, leading many films to pass on him.
This situation only improved when Mel Gibson vouched for him.
And Nicole Kidman, this Hollywood queen's decline, also involved insurance companies.
David Fincher's film Panic Room originally had Nicole Kidman as the lead, but she withdrew due to old injuries and personal reasons, nearly canceling the film. The insurance company almost had to pay $54 million. Fortunately, Jodie Foster stepped in, but the project exceeded schedule, and the insurer had to pay $7 million.
This made Nicole Kidman one of the least favoured actresses by insurance companies.
When no insurance company is willing to insure a star, it affects the crew's choices.
After securing the insurance contract with the crew, Bob, just an unremarkable small business manager at Fireman's Fund, asked with his own thoughts, "Mr. Davenport, if I may ask, which company is your third-party guarantor?"
"That's a trade secret," Michael casually dodged.
Third-party guarantee? That's for later. Using it now would be asking for trouble.
Bob was smart enough not to press further, instead handing Michael his business card, "Feel free to call me if you need anything."
Michael took it, "I will."