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Chapter 165 - Chapter 158: The Last Compromise

On April 1, three other new films joined the Easter weekend competition.

Aside from Tim Burton's Beetlejuice, the remaining two posed no threat whatsoever to When Harry Met Sally.

Simon was well aware of Beetlejuice's box-office potential. In the original timeline, its success had been the very reason Burton landed the directing gig for Batman.

Yet Warner Bros., it seemed, harbored no great expectations for Beetlejuice either. Though they granted it an Easter release, they allotted exactly 1,000 screens, far fewer than the 1,700 given to Police Academy 5 just two weeks earlier.

Consequently, over Easter week, When Harry Met Sally dipped a mere 13 percent, pulling in another $15.49 million for a cumulative total of $37.05 million. Trailing closely behind was Beetlejuice, which opened to $13.24 million, nearly double Police Academy 5's debut.

Warner Bros., as one of Hollywood's Big Seven, quickly flexed its considerable muscle.

Thanks to that strong opening, Beetlejuice expanded to 1,523 screens in its second week.

By comparison, When Harry Met Sally, now in its third week of wide release, remained stuck at 1,077 screens. Though Disney had not outright refused to increase showings, they insisted the process would take at least four weeks.

A cursory glance at current North American releases revealed the truth: Disney preferred to keep 1,500-plus screens for Good Morning, Vietnam, now averaging barely $2,000 per theater, rather than free up more for When Harry Met Sally, which was still pulling over $13,000 per screen.

That was reality.

Had the original contract not guaranteed a minimum of 1,000 screens, the film's situation could have been far worse.

April 11.

Tonight was the 60th Academy Awards ceremony. The writers' strike continued, pushing back an event originally scheduled for late March to this date.

Though he would attend the ceremony that evening, Simon spent the entire day immersed in work.

The film was now in its fifth week overall and third week of wide release; the Easter holiday had ended.

Over the weekend of April 8 to 10, When Harry Met Sally inevitably saw a larger drop, 25 percent, and took in $8.11 million, pushing its cumulative total to $45.16 million.

Starting this week, Disney would take 18 percent of the film's North American gross as their distribution fee.

Burbank.

It was already afternoon.

Simon and Amy left Disney's headquarters together. Once in the car, Amy glanced at Simon, who was leaning back with his eyes closed in thought. After waiting a moment, she spoke.

"The company has too many projects in motion right now, Simon. I think we should consider Eisner's proposal."

With When Harry Met Sally's box office and critical reception now settled, Simon had begun planning subsequent distribution. Because of the priority clause in the original contract, any such plans required Disney's agreement.

That was why he and Amy had come to Burbank, to negotiate with Michael Eisner.

Based on the film's trajectory and an assumed $100 million North American total, the deal Disney had struck with exhibitors was a 50-50 split, though everyone knew there was padding in those numbers, and Daenerys Films had no choice but to accept it.

Of the resulting $50 million in producer/distributor revenue, after subtracting Disney's 18 percent fee and an equally inflated marketing spend of roughly $10 million, Daenerys would recover approximately $22 million, enough to cover production costs and generate modest profit.

Few Hollywood films recouped their entire budget from domestic theatrical alone. For a movie expected to cross $100 million, failing to do so would have been the joke.

As for ancillary markets, after hard bargaining with Eisner, Daenerys retained domestic videocassette and television rights. Overseas theatrical, video, and television rights were sold to Disney in a package for $30 million.

That $30 million was roughly equivalent to the $35 million outright sale of Run Lola Run's overseas rights the previous year.

Back then, Simon had been too new to Hollywood and too desperate for cash to fund his stock-index futures play; he had essentially dumped Run Lola Run's ancillary rights at fire-sale prices. Warner, which bought the full overseas package, had made a fortune from its $200 million international haul.

When Harry Met Sally would not match Lola's numbers, but Simon was no longer the rootless teenager he had been a year ago. He refused to keep giving ground.

Even so, the $30 million buyout represented a compromise on his part.

If the film performed overseas at even half its domestic total, Disney would turn a profit, never mind the lucrative video and television windows.

By accepting $30 million for overseas rights, Simon preserved domestic video and television for Daenerys.

After wrapping up When Harry Met Sally's ancillary deals, Eisner had proposed continuing to distribute several other Daenerys titles, the very suggestion Amy now thought worth considering.

Hearing her words, Simon opened his eyes, glanced at his executive, and shook his head. "Amy, I've already made too many compromises lately. That's enough. I want you to understand: today's negotiation was my final concession to Hollywood. After this, no one gets to take advantage of Simon Westeros again."

Amy sensed the edge in his voice. "The two issues aren't in conflict, Simon. Daenerys is still small. We absolutely need to build our own distribution channels, but given our current position, we also have to maintain some cooperation with the majors."

Simon did not disagree. He nodded. "Of course, Amy. But of the films we have coming, Pulp Fiction, Basic Instinct, and Rain Man are already placed with other studios. I won't surrender any more. Eisner offered a ten-percent fee, generous on the surface. Yet look at When Harry Met Sally: Beetlejuice expanded fifty percent in its second week with no effort, while we wait passively for whatever screens Disney deigns to give us. I won't let any other Daenerys film face the same treatment."

Amy replied, "If we go independent, we might get even fewer screens than Disney provides."

"Theaters want to make money. After the successive hits of Run Lola Run, The Butterfly Effect, Final Destination, and now When Harry Met Sally, I don't believe North American exhibitors will turn away a Daenerys picture. Besides, the writers' strike has been going on for over a month. If it drags another month or two, the summer season might survive, but the fall slate will be thin. The majors won't be able to supply enough product, that's our opening."

Amy thought of the reality-show pilots the company was developing and frowned slightly. "The WGA has already resumed talks with the AMPTP. They could reach a settlement before the end of the month. Next month is the upfronts; neither side wants to torpedo that season. It would hurt everyone."

Simon only shook his head. "Amy, if you feel overwhelmed, hire more people. Going forward, we handle a lot of this ourselves. That's non-negotiable."

"Fine," Amy conceded. She glanced at her watch. "It's already two-thirty. The Oscars are tonight, aren't you going to get ready?"

Simon shrugged. "This suit is fine. And I still have something to deal with."

Amy hesitated. "The Mcmillan situation?"

Simon gave a wry nod.

Back at Daenerys headquarters in Santa Monica, Simon surveyed the bustling, newly expanded offices and mentally noted the need for larger premises. He soon reached his second-floor office.

Ron Mcmillan, the producer who had helped him complete Run Lola Run, was already waiting.

Thanks to that collaboration, Mcmillan had naturally become Daenerys's first signed producer when the company formed.

After finishing Final Destination with Wes Craven the previous year, he was now co-producing Scream with the same director.

The matter Simon needed to discuss concerned Scream.

Seeing Simon enter, Mcmillan, noticeably more prosperous than the down-on-his-luck figure of two years ago, rose enthusiastically and shook hands. "Simon, how'd it go with Disney?"

"It's settled," Simon replied, shaking hands before circling to his desk. He pulled out a folder. "Ron, we need to have a serious talk."

Mcmillan sat opposite him and grew uneasy at Simon's suddenly grave expression. "Is something wrong?"

Simon slid the folder across. "Regarding Scream. I distinctly remember saying at the first production meeting that the opening kill, Casey, is critical to establishing the film's tone. To maximize audience impact, we need a recognizable actress."

Macmillan opened the folder, saw the actress profile inside, and a flicker of guilt crossed his face.

Still, under Simon's steady gaze, he tried to sound casual. "Simon, doesn't Amanda Price fit the bill? She debuted ten years ago and has appeared in plenty of films."

"Supporting roles so small I wouldn't know her name if I hadn't seen the résumé," Simon said, shaking his head. He fixed his eyes on Macmillan. "Ron, that isn't even the main issue. During casting, I selected Phoebe Cates and told you to approach her. You informed me she'd passed, then bypassed every other candidate and pushed this actress's file. But here's the thing, Ron, I'm not some outsider who struck it rich and wants to buy Hollywood prestige with a film or two. Phoebe Cates is repped by WMA. One phone call would have confirmed it. Jonathan told me neither Phoebe nor her agent ever received an offer for Scream."

Caught outright, Mcmillan's expression turned sheepish. After a pause he tried to defend himself. "Simon, it's only a small role."

Simon frowned. "Ron, I don't object to people using their position for a little private amusement, half of Hollywood does it. But the prerequisite is that you remain responsible for the project in your hands. Scream has a ten-million-dollar budget. Do you understand what that means? In any city, a thousand dollars will buy very high-quality companionship. Ten million would buy ten thousand such nights. Lower the standard and you could have a hundred thousand, more than one man could manage in a lifetime. No woman is worth risking a ten-million-dollar movie. And I won't allow anyone to gamble with my ten million. Are we clear?"

Mcmillan's face shifted through several shades before he finally muttered, "I'm sorry, Simon."

Simon studied the older man a moment longer, then softened his tone. "Ron, I value what we accomplished together on Lola. I hope we can keep working together. So, go get Phoebe Cates signed. As for this other actress, give her a different small part if you want. I don't want any messy gossip. This is your one pass. It will not happen again."

After seeing Mcmillan out, Simon leaned back in his leather chair, suddenly weary.

Lately, as Daenerys expanded, problems had begun arriving in waves.

Earlier in the month he had visited the Rain Man set in Palm Springs and found the entire production drifting in a carefree, almost reckless mood. He could sense that Tom Cruise, Dustin Hoffman, and the rest had already written the film off as a failure and were treating the shoot like a paid vacation.

To prevent further budget overruns, he had already granted considerable leeway, Simon assigned an accountant to monitor the set full-time. He continued reviewing dailies twice a week and resolved to oversee post-production personally to ensure nothing went wrong.

On the other projects in prep, many of the talent approached behaved as though Daenerys were a fat sheep ripe for shearing, demanding salaries well above industry norms.

Simon was beginning to understand why Carolco, in the original timeline, had repeatedly produced record-breaking budget overruns and even delivered Hollywood's first $100 million production, Terminator 2. Backed by German tax-shelter money, the company had clearly been treated as an easy mark.

His words to Amy on the drive back from Disney had been the culmination of all these frustrations.

Because of the deep-seated detachment etched into his bones, Simon felt no real anger toward those who saw him as a fool. Still, Daenerys would not be working with them again anytime soon.

With the Tolkien Middle-earth library, Superman, Batman, The Fast and the Furious, Forrest Gump, Dances with Wolves, Pretty Woman, and dozens of other valuable properties and scripts in his memory, Simon now held more than enough chips. If he wished, he could produce a domestic box-office champion every year.

He had no intention of letting Hollywood continue to mistake him for easy prey.

If they wanted a big score, they were welcome to try, just so long as their teeth were sharp enough.

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