As the final installment of the series, even a fool would know that the two parts of Harry Potter and the Deathly Hallows would inevitably push the young wizard to unprecedented heights and bring in unimaginable box office and merchandise revenue.
By this point, the actors forming the Gryffindor Golden Trio had become synonymous with their respective roles. With only the last two films left in the series, the production team would never lightly replace the actors.
And indeed, even someone like Duke wouldn't dare to rashly replace the main cast at the series' closing stage.
This gave the actors and their agents the perfect opportunity to demand sky-high fees. Even though the crew had raised the individual pay for the Gryffindor Golden Trio to 15 million dollars per film, they still refused to sign the contracts—they wanted a high percentage of box office and merchandise revenue!
Moreover, the British actors in the crew strongly supported them.
The very afternoon Irene Lauder arrived in Los Angeles, Duke hurriedly left the city and flew to London with Warner Brothers' CEO Doug Walter to deal with the actors' demands.
"How are the negotiations going?"
Entering the studio office, Duke asked Robin Grand first, "Still no one willing to sign?"
Robin Grand shook his head. "All the British actors in the crew refuse to sign the actor contracts."
He glanced at Doug Walter. "We'll inevitably have to make concessions on the revenue sharing."
Duke and Doug Walter exchanged looks. They had already agreed on the plane that concessions were inevitable, but the income from Harry Potter and the Deathly Hallows was directly tied to Duke's interests and Doug Walter's performance and bonuses, so neither would let the actors easily take what rightfully belonged to them.
Doug Walter asked Robin Grand, "How far have their demands dropped now?"
"15 million dollars base pay plus 8% of the film's total profit," Robin Grand said seriously. "These are the conditions from Emma Watson and the other two actors."
"8%?" Duke raised his eyebrows. "They might as well be robbing a bank."
Doug Walter's face darkened as well. This was the Harry Potter series that had already generated nearly 10 billion dollars in value, and those three were indeed crucial. But without the series, they were essentially nothing.
Of course, he understood that at this stage, replacing the actors was unrealistic.
Replacing actors would definitely be the last option. Duke knew this clearly as he sat there, looking at the Harry Potter posters on the office walls, where the Gryffindor Golden Trio stood out prominently.
Even he couldn't deny that Emma Watson and the other two had full qualifications and rights to revenue sharing. The problem was, he didn't want to give it to them.
An 8% share of the profit how huge a number would that be?
If Emma Watson and the others were still useful in the future, he could consider it. But after the Harry Potter series ended, their value to him approached zero...
If they were other well-known actors who could star in his or his investment films and bring some clout, that would be one thing. But with their level of acting skill and the image they were fixed in, they would probably do more harm than good, even causing some negative effects.
This had nothing to do with personal conflicts or opinions. As one of the main investors, Duke naturally considered things from the perspective of investment returns.
In fact, from the day the series was greenlit, he had anticipated today. His approach to dealing with these three actors—who had almost no power in Hollywood and were represented by British agencies—was not without strategy.
Doug Walter and Robin Grand were still discussing countermeasures when Duke mentally reviewed his initial idea and interrupted them.
"I have an idea."
Hearing this, Doug Walter and Robin Grand stopped talking and looked at him. Duke went straight to the point: "Put Harry Potter and the Deathly Hallows on hold for now. Robin, drag out the negotiations."
They didn't quite understand Duke's meaning but kept watching him.
Duke sped up, trying to keep it simple: "We spin off the Harry Potter studio from Warner and Duke Studios, establishing it as an independent company responsible for its own profits, losses, and financial accounting..."
Doug Walter chuckled and nodded lightly. As Warner Brothers' CEO, although he hadn't thought of this, Duke's reminder made him realize where this was going.
"The Harry Potter studio will still be a shell company without funds to start Harry Potter and the Deathly Hallows…"
Hearing this, Doug Walter took over: "Then the Harry Potter studio will borrow money at high interest from Warner Brothers or your fund. After the film earns revenue, not only does it have to repay the debt, but also the interest."
Duke nodded with a slight smile. "Exactly."
He turned to Robin Grand and added, "The Harry Potter studio also has no distribution capability, so the film can only be distributed by Warner Brothers. We can raise distribution and promotion costs to the highest industry standards—even though we won't need that much money, but..."
Duke shrugged, "Loan costs, high promotion fees, transportation and labor costs—legally making Harry Potter and the Deathly Hallows a low-profit or even loss-making film from an accounting perspective should be no problem."
"A bit difficult," Robin Grand's serious expression was gone. He looked at Doug Walter and said, "But it shouldn't be too hard for Warner Brothers."
"Back to Los Angeles…" Doug Walter agreed fully, "I'll gather company experts to discuss feasibility."
"Robin, remember, the third-party guarantee agreement only covers their base pay!" Duke reminded. "When signing the revenue sharing agreement, try to limit it strictly to box office profits, though you can slightly raise the percentage!"
"I know what to do." Robin Grand nodded.
Under Hollywood's crafty accounting system, a movie that originally made huge profits can be legally calculated as a box office loss a common tactic producers use to deal with actors who always demand exorbitant fees.
Just as actors always use various methods to fight for their rights, producers also employ all sorts of ways to protect their own interests.
Hollywood is not a peaceful circle; it's always full of conflicts.
Harry Potter and the Deathly Hallows is just a microcosm of how producers design around actors.
Duke's goal was simple: to prevent the actors from taking too large a slice of the Harry Potter and the Deathly Hallows pie, so he could keep more for himself.
If actors, directors, and other crew members expect investors like Duke to suddenly have a conscience and give up their share of profits, that's completely unrealistic — capital never has a conscience.
Moreover, the three actors, represented by Emma Watson, are neither part of his team nor do they possess top industry status like Charlize Theron or Tom Cruise. Why should Duke give in?
Suppressing and exploiting them by all means aligns with his own interests.
Duke, Doug Walter, and Robin Grand discussed at length afterward. Besides this proposal, they finalized several backup plans.
In short, it's definitely not easy for the young actors of Harry Potter and the Deathly Hallows to secure profit shares.
To be precise, they are no longer "young actors."
However, compared to their childhood days, these actors, represented by Emma Watson, have faced overwhelming criticism regarding their acting skills.
This is normal both the industry and supporters had high expectations, but after becoming famous, these actors basically showed no progress, and their acting became unbearable to watch. If it weren't for several consecutive Harry Potter films creating the public perception that the roles were essentially their real selves, the wave of criticism would have already buried them.
Last year, Duke watched the latest Harry Potter film and really wanted to bring some teachers to London to teach Emma Watson and the others how to act.
But he quickly gave up on the idea.
First, it was completely unnecessary once the series ended, those young actors would have no further cooperation with him.
Second, Emma Watson and the others simply had no time.
Like other child stars in Hollywood, Emma Watson and those young actors inevitably became money-making tools controlled by film companies, agencies, and their parents.
Poor acting skills cannot be entirely blamed on their talent or effort; external factors and time also play a big role.
How many Hollywood child stars manage to continue pursuing their goals like Jodie Foster or Natalie Portman after becoming famous?
Besides, Harry Potter promotional events came one after another. These young actors had to constantly attend appearances. Emma Watson, whose mother is both her agent and lawyer, even signed Chanel endorsements, with advertising campaigns nonstop where was the time to improve their acting?
Also, Emma Watson, while not indulging in drugs like Drew Barrymore or River Phoenix, changed romantic partners at a speed no slower than theirs. The crew worked hard to suppress her scandals to maintain the good Hermione Granger image.
Doug Walter returned to Los Angeles ahead of Duke. Just a few days later, good news arrived from London: Warner Brothers' professionals had already begun drafting detailed plans. The production of Harry Potter and the Deathly Hallows was temporarily postponed. The Harry Potter studio would become a financially independent company as soon as possible.
Once established, this company responsible solely for the Harry Potter series would take loans from Duke's foundation and Warner Brothers to produce Harry Potter and the Deathly Hallows.