Sitting in the café, Daniel Malik's eyes, hidden behind glasses, kept glancing at the glass door, his hands twisting together nervously. After running around many film companies with his DV movie and exhibiting at the Sundance Film Festival, he received nothing but derogatory comments and insults. It seemed no one saw any value in the film he and Eduardo Sánchez had created.
Suddenly, his heart skipped a beat as he recognized a familiar face. The young man who had watched his film for a long time last night was walking through the door. Malik suspected he was a film buyer.
As the man approached, Malik's mind raced. Did this person see some value in his film that he didn't? Or maybe he could at least make some money out of it.
The production of this film, combined with the cost of promoting it to film companies and exhibiting at Sundance, had cost him thousands of dollars. Regardless of the situation, having a buyer was good news. He needed to recover his costs and hopefully make a profit.
As the two men approached, Malik stood up and stepped forward, saying, "Are you Mr. Davenport?"
"Hello, Director Malik," Michael said, shaking his hand. "I'm Michael Davenport from Seashore Entertainment."
He then introduced the man beside him, "This is Tony Koch from Koch Films in Germany."
After the introductions, they quickly got down to business.
Michael wasted no time, probing, "Director Malik, on behalf of Seashore Entertainment, I want to buy your film. Name your price."
Michael had thought it over last night. He had $40 million from Abu Dhabi, $10 million still pending from Koch Films, $4.5 million in tax rebates, and $20 million in profits from "The Purge" set aside by the company.
After accounting for the $5 million acquisition of Embassy Pictures and the $30 million production budget for the two films, with the marketing and distribution costs yet to be planned, he still had a substantial amount of funds. Additionally, Judith from the bank frequently called him, making it clear that securing a loan wouldn't be difficult.
If he could acquire this film and manage it properly, funding wouldn't be an issue.
"Name any price?" Malik thought to himself. That's quite generous, but indeed, there's a limit.
"Seashore Entertainment?" Malik asked, puzzled. He had never heard of the company.
Michael explained briefly, "It's a comprehensive entertainment company. Its subsidiaries, Seashore Entertainment and Embassy Pictures, specialize in film production and distribution."
Malik knew these companies. Seashore Entertainment had a low-budget hit horror film last year, and Embassy Pictures had rejected him last year. This person represented Seashore Entertainment, probably someone of higher status than the person who had rejected him.
"Mr. Davenport," Malik, in his thirties, had many thoughts. "Are you looking to buy my film 'The Blair Witch Project'?"
Michael nodded. "Yes."
Malik felt a surge of excitement but suppressed it. He had struggled to get this far, and he wouldn't give up easily if he could secure more benefits.
He probed, "Can we sign a distribution agreement instead?"
Michael glanced at Malik, saying, "That's impossible." His tough stance was evident. "If you only want distribution, then we do not need to talk."
Without owning the distribution rights, investing a large sum to promote a low-budget film from which others would reap significant profits wasn't smart. If it weren't for potential copyright issues and subsequent troubles, he could have someone make a similar film.
Malik was taken aback by Michael's firm attitude.
Michael continued, "This is just a DV recording. How many people do you think will watch it in theatres?"
Malik wanted to argue that his film would be a hit, but after so many rejections, he lacked the confidence.
Michael added, "We'll barely call your work a film. One of your male characters said it best."
"What?" Malik asked.
"I thought I was watching a film about witches," Michael said slowly. "But it was just about characters getting lost."
If someone had said this when he first made the film, Malik would have retorted angrily. But after so many rejections, he didn't have the confidence.
Malik countered, "I used an innovative DV documentary style to make the experience feel real for every viewer, immersing them in the witch's world."
Tony retorted, "Did it? I saw viewers leaving because they couldn't stand the poor quality and shaky footage."
"It's an innovation!" Malik still tried to secure favourable terms. "This is a horror film like a real documentary, a new type never seen in Hollywood."
Michael laughed, "Director Malik, do you know what innovation in Hollywood means? It means risk. If I buy your film at a high price, innovation brings me huge risks, not the market and profits!"
He became serious. "I can't buy a film that will lose money."
"But this film…" Malik wanted to argue but was interrupted by Michael, "How much box office revenue can this film generate if it enters theatres? It could be out of theatres within a week, even three days. Do you think the VHS and DVD sales and rentals will be high? $500,000? How long will it take to recoup $500,000?"
Michael held up five fingers, "$50,000."
Malik was anxious. "$50,000 isn't even enough to cover my costs!"
"Director Malik, this film only cost two or three thousand dollars to make," Michael said deliberately. "A profit of over double is significant in the film industry."
Malik argued, "I incurred travel expenses and exhibition costs at Sundance. Aren't those part of the film's costs?"
Hearing this, Michael quickly realized there were no competitors.
Feeling reassured, Michael subtly signalled Tony with a nudge under the table.
"Those costs are your responsibility," Tony said immediately. "If you don't want to sell, you can leave it in storage to rot."
Michael continued, "Seashore Entertainment needs films to fill our catalogue, so I'm willing to invest in your work and will push for a theatrical release. Director Malik, having a theatrically released film is valuable for your future career."
He added, "The difference in treatment for directors with and without publicly released films is significant in the industry."
Malik furrowed his brow, deep in thought. After a long pause, he said, "I can lower the price to $100,000, but with conditions."
"Still too high," Tony interjected.
Malik ignored Tony and addressed Michael, "But Mr. Davenport, your company must distribute the film in theatres."
Michael smiled, "$100,000 is too high, too risky. However, theatrical release is a given. If I buy your film, I will test it in theatres."
Malik reiterated, "I can lower it to $80,000 but with conditions!"