Sitting in the café, Daniel Myrick's eyes, hidden behind his glasses, constantly glanced at the glass door. His hands twisted together, fingers fidgeting restlessly, clearly showing his anxiety.
Having taken his DV film to so many production companies and then exhibited it at the Sundance Film Festival without a single positive response, he received only derogatory and scornful comments. No one saw any value in the film he and Eduardo Sanchez had created, making it seem worthless.
Suddenly, his eyelids twitched as he recognized a familiar face among the two young men who had just walked through the door. One of them had watched his screening for a long time last night.
Recalling the person's face, Daniel Myrick suspected the man might be a buyer from a film company. As they approached, he quickly contemplated whether they saw a value he himself hadn't noticed or if he could at least make some money from them. Producing and trying to market this film had already cost him tens of thousands of dollars.
"Are you Mr. Anderson?" Daniel Myrick stepped forward, greeting one of the men.
"Hello, Director Myrick." Michael shook his hand. "I'm Michael Davenport from Relativity Entertainment Group."
He introduced his companion, "This is Tony Koch from Koch Films in Germany."
After the introductions, they got straight to business. Michael tested the waters, "Director Myrick, on behalf of Relativity Entertainment, I'd like to purchase your film. Name your price."
Michael had already calculated last night. After acquiring $40 million from Abu Dhabi, $10 million from Koch Films (not yet paid), and $4.5 million from tax rebates, the $20 million profit from The Purge was budgeted. Excluding the $5 million acquisition of Embassy Pictures and the $30 million production budgets for the two films, a significant sum was still available.
Additionally, Judy at the bank was always willing to extend a loan, making funds for this purchase not a problem.
"Relativity Entertainment Group?" Myrick asked skeptically.
"A comprehensive entertainment company," Michael replied. "Our subsidiaries, Seashore Entertainment and Embassy Pictures specialize in film production and distribution."
Myrick was familiar with these companies, especially Seashore Entertainment, which was known for a successful low-budget horror film last year. Embassy Pictures had rejected him in the past, making him believe Michael's position was higher than those he'd previously encountered.
"Mr. Anderson," Myrick said, considering his options, "are you proposing a distribution contract for my film?"
Michael nodded, "Yes."
Sensing an opportunity, Myrick countered, "Could we discuss a distribution deal?"
Michael immediately rejected, "That's not possible. If you only want distribution, we have no basis for negotiation."
Myrick felt a pang of panic. His numerous failed attempts had depleted his confidence. Michael's firm stance made him realize he had to be more reasonable.
"$80,000 is still a bit high," Michael remarked but decided to listen. "What are your conditions?"
Licking his dry lips, Myrick said, "The film must be released in no less than 500 theatres."
Michael noticed Myrick was not done and waited.
"$80,000 is the base price," Myrick continued. "I also want a share of the box office revenue or a bonus."
Michael remained silent, waiting for Myrick to finish.
"If the film makes over $500,000 at the box office, I want at least $30,000 as a bonus!" Myrick declared.
"$500,000?" Tony interjected. "Can this film even make $50,000?"
Michael raised his hand to stop Tony and calmly addressed Myrick, "Do you understand Hollywood film distribution?"
Myrick hesitated, "I... know some."
"500 theaters," Michael shook his head. "That means at least 500 film prints, costing $1,500 each for printing, storage, transportation, and insurance."
Myrick's face fell. Was his condition too demanding?
Michael continued, "500 prints cost $750,000. With additional promotional and distribution costs, Relativity Entertainment would bear huge risks, investing over a million dollars in a film that cost only a few thousand to make."
He concluded, "You're not negotiating. You're robbing me."
"It's to ensure mutual benefit," Myrick argued.
Michael directly countered, "No, you're ensuring your maximum benefit. Business is about a win-win situation. According to your terms, Relativity Entertainment would suffer a huge loss."
He sighed, "Let's end this here."
Tony stood up, "Let's go, Michael. There are plenty of better indie films outside."
"Wait," Myrick hurriedly said, "Can we negotiate? It's about resolving differences, right?"
Michael didn't waste time, "$80,000, for all rights including sequels."
He softened slightly, "We'll release it in at least 50 theatres. We'll also hold a media event with at least 10 media outlets to interview the director and key creatives."
Hearing this, Myrick's eyes lit up. Fame could open up more opportunities for him.
Michael added, "We'll also distribute the film on video, DVD, TV, and online to reach a broader audience."
Sensing the negotiations were going in the right direction, Myrick found these terms acceptable.
Michael knew that if the film performed as he envisioned, future collaborations would require Myrick's cooperation. He added a motivational clause, "If the film grosses $500,000 in North America, we'll give a $5,000 bonus to the main creatives."
Feeling the sincerity and recognizing the potential for immediate gain, Myrick agreed, "Deal."
Michael added his terms: "All creatives must participate in promotional activities. To meet release standards, you must provide all raw footage for possible re-editing."
Myrick, seeing these as beneficial for his reputation, readily agreed.
"We need to finalize this quickly," Michael pressed, not wanting to waste time on a single project.
Myrick confirmed, "Eduardo and I are here in Park City."
Michael dismissed the concern, "Give me their contact info. We'll handle the contracts after the festival. Just give them a heads up."
"Sure," Myrick agreed.
With the deal set, they contacted the festival's transaction office. That afternoon, Michael signed the rights transfer for "The Blair Witch Project" under the witness of the festival staff and lawyers, making the transaction official.
Michael, with Tony, spent two more days at the festival but found no other valuable indie films. The more expensive ones were out of Relativity's reach.
Soon, Michael returned to Los Angeles with "The Blair Witch Project."