Chapter 143: Greedy Behavior

Many Hollywood film companies have the capability to distribute films in North America but struggle to do so overseas. PolyGram Filmed Entertainment's situation was quite the opposite.

This film company, registered in the UK, was established in the early 1990s, initially focusing on film production. It wasn't until 1993 that they truly gained the ability to distribute films, initially limited to the UK.

Thanks to PolyGram's mature record distribution system, PolyGram Filmed Entertainment quickly established its film distribution channels. By the time PolyGram was acquired by Seagram, PolyGram Filmed Entertainment had already developed the capability to distribute films in Europe, Australia, East Asia, Southeast Asia, and Latin America.

However, PolyGram Filmed Entertainment had no distribution channels in North America. The North American film market is the most exclusive in the world, making it very difficult for foreign companies to break in, even for British companies.

In recent years, PolyGram Filmed Entertainment primarily relied on Sony Columbia Pictures and Gramercy Pictures to distribute their films in North America.

In the conference room, Garcia asked, "Are the people in PolyGram's distribution department familiar with Sony Columbia Pictures?"

Michael found a piece of information and handed it over. "Sony Columbia has distributed seven films for PolyGram."

Garcia read through the document and then passed it to Robert. "We don't know anyone at PolyGram. This will be a major obstacle."

Michael agreed. "Having a mutual acquaintance to introduce us would make things much easier."

Robert immediately chimed in, "Sony Columbia Pictures?"

Michael nodded. "From the gathered information, PolyGram Filmed Entertainment's distribution department is led by Allen Albert and Danny Donald. Allen Albert is the director, and Danny Donald is his deputy. Both have high prestige in the distribution department. If we can get them on board, we can attract their entire distribution team. With this team, we can secure distribution channels outside of North America, the Middle East, and Africa."

"We have the North American distribution channels," Robert said. "As for the Middle East and Africa, those markets are smaller and can be developed gradually on the existing foundation."

Garcia reminded, "That is, if we can secure them."

Michael's expression turned serious. "You're right. If Universal Pictures does lay off PolyGram Filmed Entertainment's staff, these people are likely to attract attention."

Companies like DreamWorks and Lionsgate would dream of having overseas distribution channels.

Especially for DreamWorks, establishing overseas distribution capabilities would give them some real leverage against the major studios.

Michael asked Garcia, "What did you find out from Universal Pictures?"

"The internal information at Universal Pictures," Garcia replied, "is the same as what you gathered. Universal Pictures is genuinely interested in PolyGram Filmed Entertainment's film library and has no interest in the staff, who require significant human capital. Moreover, Universal's overseas distribution system is far more comprehensive than PolyGram's, so they don't need PolyGram's recently established channels."

Michael then asked, "Have you heard if any other companies are interested in PolyGram?"

Robert and Garcia exchanged a glance, and Garcia said, "Not yet."

Michael knew the allure of distribution channels for any film company looking to grow. "Keep an ear out for any news, especially about DreamWorks and Lionsgate."

Most production companies in Hollywood focused on their core business, but many aspired to grow larger. However, few actually took the steps to do so. The issues of funding and risk alone could deter 99% of small companies.

Relativity Entertainment currently had ample funds, and with the distribution fees from Embassy Films, "The Blair Witch Project" had generated substantial revenue.

The North American box office grossed $79.5 million, the sequel rights sold for $12 million, and the first-week sales of VHS and DVD brought in $7 million, with subsequent months adding up to $9 million. International rights totaled $50 million, TV broadcast rights for the first run brought in $3 million, and the subsequent two runs added $1 million.

The total revenue for the film was $161.5 million, with continued income expected from TV broadcasts and home video sales.

The net profit wasn't quite that high, as there were channel fees and other expenses.

As for the tax authorities, Michael never wanted to provoke them, so tax avoidance was done legally, with investment deductions being the best method.

Currently, "Final Destination" was still screening in North America, with a cumulative box office of $65.5 million. It wouldn't be long before this film also generated significant revenue.

With funds in hand, Michael had the confidence to proceed. Without enough salary to offer, how could he attract people?

Michael called lawyer Diana and the investigator in London again, asking them to gather more detailed information. If Universal Pictures acted as expected, he wanted to be well-prepared with a targeted plan to attract the right people.

Even Michael had gotten wind of PolyGram Filmed Entertainment, so the information was undoubtedly reaching some big names in the industry.

In a small meeting room at DreamWorks, the three founders gathered with several core executives.

"I've worked with Universal Pictures for years and just contacted Ron Meyer," Spielberg said, his relationship with Universal quite complicated. "Ron Meyer confirmed that Universal only wants PolyGram Filmed Entertainment's film library and isn't interested in the staff."

David Geffen, sporting a bald head, asked, "Steven, can't Universal acquire PolyGram and then transfer the distribution department to us?"

Spielberg showed a wry smile. "David, that's not possible. My relationship with Universal..."

David Geffen, being more from the music industry, wasn't fully aware of some Hollywood intricacies. Spielberg didn't want to explain. His tangled relationship with Universal was complex and deeply personal.

In the early '90s, to fund "Schindler's List," Spielberg was pressured by Universal to reluctantly accept the director's role for "Jurassic Park." Since then, his relationship with Universal had soured, prompting him to co-found DreamWorks.

Jeffrey Katzenberg said, "DreamWorks' rise will inevitably affect the established powers. The major studios don't want to see DreamWorks establish a full distribution network. Do you think Universal would sell us their overseas distribution channels?"

This comment had a hint of accusation. David Geffen glanced at Katzenberg, his expression displeased.

Katzenberg snorted slightly, clearly not fond of Geffen either.

DreamWorks had been founded five years ago, but the initial unity among the three had long been eroded by various interests and power struggles.

However, they still maintained a united front on major issues benefiting the company.

Spielberg intervened in time. "Overseas distribution channels are crucial for DreamWorks! Not just for our film and TV production departments," he said, first looking at Katzenberg. "Our animation department's films can also enter the global market through DreamWorks' channels." Then he glanced at Geffen. "We can also emulate PolyGram, using the film channels as a foundation to establish a global music distribution network."

Both Geffen and Katzenberg nodded, indicating their support for Spielberg.

The three had engaged in covert battles and compromises, leading to Spielberg overseeing live-action films and TV, Katzenberg handling animation, and Geffen managing music and related businesses.

In some ways, the three giants stood as equals.

This might have stabilized the top-tier power structure, but for a startup company, such a tripartite arrangement wasn't beneficial.

Spielberg added, "Ron Meyer only shared this information due to our personal relationship. Universal helping DreamWorks is out of the question."

Katzenberg asked, "Steven, this information will soon spread. The overseas distribution channels are too important for us. We need to secure them quickly."

Geffen remained silent but looked at Spielberg with concern.

Among them, Spielberg was the most knowledgeable about the film industry.

Spielberg replied, "I've never contacted anyone at PolyGram, nor am I familiar with their management. Currently, all PolyGram staff are in London. We need to send someone to London immediately to make contact and strive to bring PolyGram's entire distribution team into DreamWorks."

He looked at a dark-haired man with a large nose. "I've already asked acquaintances in London to gather information about PolyGram. We'll have updates soon. Albert, you need to go to London and secure PolyGram's distribution team."

Facing the three founders, Albert responded confidently, "Expect good news from me."

Geffen reminded, "The news hasn't fully spread yet. Be discreet to avoid attracting more competition."

Spielberg also said, "Yes, keep it confidential."

"Understood." Albert nodded solemnly.

Spielberg trusted him. Although his abilities weren't exceptional, his loyalty was commendable, and he would never betray DreamWorks' interests.

Due to his limited capabilities, Albert didn't hold a high position. If he succeeded in this task, Spielberg could justifiably promote him.

After discussing some details, the meeting ended. Albert left DreamWorks, heading home to pack for his early morning flight to London.

In the lobby, a familiar entertainment agent approached him.

"Mr. Hoffman," the agent said, lowering his voice. "About the role we discussed last time..."

Albert replied, "Have them meet me at the Seaside Hotel tonight. I'll discuss the roles with them personally."

The implication was clear. The agent quickly agreed, "No problem. I'll have them there by seven."

Watching Albert Hoffman leave, the agent's smile faded, and he spat on the ground: "That guy's such a lecher. His greed is disgusting!"