Chapter 150: Project Plan

 This was the reality, and Murphy wasn't exaggerating at all. Compared to the investment required for making a film, Stanton Studio's funds were indeed limited.

"Saw" wasn't sold off in a one-time deal like "Hard Candy"; recouping the investment would take time. Just the North American box office earnings wouldn't be settled until February next year. The subsequent TV rights and DVD sales were long-term income. Even the outright sale of international distribution rights, according to Hollywood norms, wouldn't be paid in one lump sum.

Even in the most optimistic estimate, they would have to wait until the film was off the screens overseas, which could be a year or even longer.

As is well known, the film industry's speed of recouping investments is not fast. Most films need a long time to turn profitable.

Murphy wasn't in a hurry. His past two investments can be said to be opportunities he created for himself in difficult situations. After all, how many companies would be willing to invest in a director without any track record?

The North American box office success of "Saw" fundamentally changed everything. A North American box office of $60 million was enough to make many companies willing to invest in Murphy's next project.

Commercial success is always the best qualification and proof in this circle, and the biggest source of confidence for investors.

"Leave it to me," Bill Rossis said with confidence, "This is what CAA does best."

Although he hadn't personally handled a one-stop packaging service, with the support of his company, these were not issues.

Murphy nodded, which was exactly his intention.

He was a director, not a full-time producer. Managing both roles for "Saw" had already stretched him thin. An outstanding director needs to focus, not be distracted by miscellaneous tasks. CAA's packaging service could help him deal with these troubles.

Indeed, CAA's one-stop service fees are a headache, but Murphy's funds were limited, and he didn't plan to invest in himself anymore. CAA's cut didn't conflict with his interests.

Most importantly, such services could genuinely and effectively help directors at the start of their careers.

Since the last film, when Bill Rossis provided extensive services for the crew, Murphy had specifically studied CAA's business strategy and found that its downsides were far less than the benefits he could receive, provided the conditions were right.

It's well known that many film projects depend on stars, but stars need good projects, and good projects need to be carefully discovered.

Starting from the early '80s, CAA formed a collaboration with New York literary agents to find good stories. Then, CAA hired brand-name screenwriters to turn those stories into scripts, which were then used to attract stars and directors, etc.; negotiating with production studios with this package.

Hollywood studios, especially mid-sized production companies, love this time and effort-saving operation mode, so they spend a lot of money to buy this package.

Therefore, CAA suddenly represented all the stars and backstage staff in the package, not just an individual.

Furthermore, the old habit in the entertainment agency circle was person-to-person, but CAA's approach is a team serving one person, as provided for Murphy.

In this regard, CAA's core logic is to reverse roles from always being the buyer to becoming the seller once they have enough clients.

Like the entry barrier to the media industry was very high initially. Without connections, it was impossible to get things done. When holding enough clients, different package combinations can be used to force those controlling the entry points.

After studying these, Murphy had to admit it was a brilliant and genius business strategy that changed the entire entertainment agency industry.

Of course, the development of anything is not smooth sailing, and CAA is no exception.

CAA focused only on the television field for the first 5 years, with no involvement in movies, music, etc. Their shift from TV to film was also from scratch.

They aggregated creativity and information, introduced clients to each other, and introduced clients to non-clients. Normally, signing artists of the same attribute, like CAA's Robert De Niro and Al Pacino, wouldn't be advisable, but CAA thought it better for these people to gather and know what each other was doing.

Additionally, CAA created a department specifically for finding creativity, like digging stories from news headlines.

Moreover, every CAA agent had to work outside the company, such as finding inspiration in schools and communities, constantly creating products for clients.

This company's development into a dominant force in the entertainment agency world is definitely not by chance; many of its strategies truly meet the market's needs.

For example, for Murphy now, if he were to go it alone, even with the box office numbers of "Saw" as a qualification, getting enough investment would still require running from one company to another, explaining his creative ideas, the potential market, and even making an effort to build a good relationship with investors...

These would consume a lot of energy, affecting his work as a director.

After discussing related matters with Bill Rossis, Murphy checked the time, ready to leave.

"Murphy," Bill Rossis reminded at the end, "don't forget, after finishing the script, you also need a project plan."

"I know," Murphy nodded.

Scripts and project plans are indispensable; you can't expect CAA to approach a production company with nothing but words about their director preparing a project and then pull in investments, right?

Legend has it that CAA agents can walk into the big six studios, say they have a project, and the studios would eagerly invest as if they've struck gold... well, Murphy only hears such stories.

It's obvious to anyone with common sense how brain-dead the executives of the big six would have to be to act that way.

Leaving the Death Star Tower where CAA is located, Murphy first went to a car dealership in West Hollywood, where a black Cadillac he had reserved earlier had arrived.

Yes, he was planning to change cars. His old, second-hand Ford, although not having had any major issues, had its fair share of minor problems. It wasn't suitable to continue using it.

Murphy didn't opt for a luxury car, settling for a standard black Cadillac sedan for the time being.

Additionally, after Carey Mulligan met the requirements, he had her apply for a learner's permit. In a car-dominated kingdom, knowing how to drive is essential.

With the contract with CAA signed, putting an end to other agencies' attempts to poach him, and without agents frequently disturbing him, Murphy returned to his pre-vacation work mode. Having already completed a first draft of the script, he began preparing the more important project plan.

The script is the foundation of the project's existence, while budget funding is the basic condition for realization.

Even though the new project's investment would far exceed "Saw," it still wouldn't match the mainstream commercial productions of Hollywood. In a broader sense, it still didn't leave the independent film category.

Budgeting isn't just about listing all possible expenses; convincing investors requires some skill.

This wasn't difficult for Murphy.

In Hollywood's independent film scene, there's never a "correct budget," but there is a "correct way to calculate a budget."

Before applying this method, Murphy needed to consider drafting a film budget as seriously as writing a script. A former mentor taught him a trick to determine if a movie scene is complete: if removing a single word makes the scene unshootable.

This rule also applies to the initial framework of cost estimation; he needs to start with the lowest budget that still allows the film to be made.

Under this budget, removing a dollar might make the film unshootable.

But Murphy would keep this amount secret, not mentioning it to anyone, not even Bill Rossis. This "bare-bones budget" would be his little secret, hidden in a closet or somewhere no one could find for months, rather than being publicly discussed.

Unless Murphy was truly backed into a corner, he would never easily use this budget for filming.

The actual budget presented would be several times this figure, as film investments don't match the plan exactly. No one is that naive; a bargaining margin must be left.

With a script and budget, Murphy then needed to consider how to impress investors.

Having some credentials is true, but when it comes to millions of dollars, who would easily throw that money out? To willingly part with their money, investors need to see potential returns.

This is arguably the most crucial part of the project plan. Hollywood investors don't invest in movies for art or other lofty goals; their motive is very simple — profit!

The estimated initial profit directly relates to the actual budget Murphy could receive.

Murphy could assume all resources were available, propose a perfect-world cost for shooting the film, and then estimate the return investors could expect based on market forecasts.

Intending investors would naturally try to cut costs based on this figure, then subtract the estimated earnings from selling the film in international markets, considering the current political and economic situation. For example, in today's market environment, the revenue from China, Russia, and India is virtually worthless.

After subtracting overseas earnings, adding the tax rebate eligibility based on filming locations, you get the actual investment for an independent film.

This will also determine the film's actual shooting location.

If the budget after subtracting overseas earnings is less than $1 million, then shoot in Los Angeles, California; if less than $5 million, in New Orleans, Louisiana; if over $10 million, consider buying a "Romanian for Dummies" book and apply for a passport to rush to Bucharest.

___________________

(Support with power stones, comments or reviews)

If you guys enjoy this story, In support me on Patreon and get access to +200 advance Chapters

Read Ahead

Patreon.com/INNIT