Chapter 40: Former British Agent

"The new work is still an explosive action movie. As for the specific content? You'll have to wait for the film's release to see it in theaters."

Facing numerous reporters, Duke maintained his calm demeanor, responding to their questions in the most appropriate way. "Why choose Warner Bros.? Because Warner Bros. is my favorite film company. They have a long history, mature concepts, and rigorous systems, making them the dream partner for every film director..."

This was the signing ceremony between Duke and Warner Bros., completely different from the situation with "Speed." Warner Bros. held a press conference for this event, with over fifty reporters present. The name Duke Rosenberg was not unfamiliar to these entertainment reporters.

Of course, this was all for the promotion of the film!

Since Duke signed the agreement, Warner Bros.' promotional efforts had already begun. News about "The Rock" started appearing in newspapers and magazines under the Warner Group. Many national tabloids also stirred up gossip that Keanu Reeves would continue as the male lead, while the female lead was rumored to be either Julia Roberts or Jodie Foster...

As long as anyone interested in entertainment and film noticed that a movie called "The Rock" was about to start filming, the initial promotional goal had been achieved.

As for the male and female leads, they were certainly unrelated to the media's rumored choices. Besides, there wasn't really a female lead in this film.

"What does it feel like to be in the media spotlight?"

As soon as he walked into the back lounge, Duke heard Sophia's distinctive voice. He shrugged and replied, "I'd rather be sitting behind the monitor..."

The preparations for the crew had already begun. Duke didn't stay long at the hotel where the signing ceremony was held; he headed directly to Warner Bros. headquarters.

Today was more about promotion; the official contract had actually been signed yesterday.

As Duke had hoped, he secured $10 million, which was one-fifth of the film's investment. He also took on the roles of director, screenwriter, and executive producer, totaling a personal salary of $3.5 million. Meanwhile, Sophia Coppola, Zack Snyder, Mike Dawson, Robin Grand, and John Schwartzman had passed Warner Bros.' evaluations to take on positions such as assistant director, first assistant director, editor, second production manager, and cinematographer, respectively.

These were the details that were settled first during negotiations, as their individual capabilities were not in question. Naturally, the longest negotiation time was spent on the profit-sharing agreement for Duke's Duke Productions.

The film had three main investors: Warner Bros. financing, Duke Productions, and the AUG Film Fund from Malibu, alongside several smaller investors. To ensure the film's completion and release, Warner Bros. also took out insurance with the American Ally Insurance Company, bringing them in as a third-party completion guarantee for the film.

To be honest, Duke did not like involving third parties because many aspects of the shooting would need their approval. However, this was a common practice in Hollywood's film production system that could not be opposed by individuals.

The investment structure of Hollywood films is very complex, often involving pre-sales. Without a third-party insurance company as a guarantee, why would investors trust that the film would definitely be completed? If the project faltered midway, wouldn't their investments be wasted?

There are numerous examples of such situations, leading to the establishment of the third-party insurance system.

Investors and prepayment parties do not transfer funds directly to the film company or the crew. Instead, the funds are overseen by a third-party insurance company. Each expenditure by the crew undergoes strict scrutiny. If the project fails to be completed, the third-party insurance company must either ensure its completion or compensate for the related losses.

In summary, this is a very complex and well-established system, and it serves as a crucial guarantee for the normal operation of the Hollywood film system.

Even so, in the past, present, and future, it is not uncommon for Hollywood production companies and crews to deceive investors regarding their funds.

For directors, having third-party oversight is certainly not a pleasant feeling. But even Duke today, let alone Spielberg and James Cameron in the future, must operate their films under this system.

According to the information Duke received, there were over ten small investors who had invested tens of thousands of dollars in "The Rock," which reflected that after the success of "Speed," the investment market still had some confidence in him as a director.

As for how Warner Bros. would share profits with them, that was a trade secret, and Duke was not concerned; he only needed to focus on the profits he could obtain.

Duke Productions, holding one-fifth of the film's investment, was entitled to one-fifth of the film's profits. From the profit-sharing agreement signed, it indeed appeared that way.

Duke Productions would receive one-fifth of the net global box office revenue and one-fifth of the television and video rights transfer fees. This was the profit Duke Productions could expect to gain. As Nancy had mentioned, these were all short-term profits, and according to the contract, Warner Bros. must settle the payments within six months after the film's theatrical run ends.

Future profits from television and video sales, as well as other peripheral income, would have nothing to do with Duke Productions.

Furthermore, once the profit was distributed, Duke Productions would automatically relinquish the corresponding rights resulting from its investment, and Warner Bros. would hold full rights to the film, including sequel rights.

Outside investors do not acquire rights, which is also a default rule in Hollywood. Duke could certainly oppose this, but it would hit Warner Bros.' bottom line. Not just Warner Bros., but second- and third-tier film companies in Hollywood would not allow simple investors to share film rights.

It's important to note that some films, when looking at box office or peripheral income, may be complete failures. However, as long as the rights are held, the film company can still obtain long-term profits. Since the success of "Star Wars," the most significant change in Hollywood has been that film revenues have become significantly less reliant on box office performance, while revenues from related rights have seen a clear increase, and this trend has been growing in recent years.

The traditional six or seven major studios are Hollywood giants not only because they have a well-established distribution channel but also because they possess thousands of film rights.

The major studios can share rights amongst themselves and even with second-tier film companies, but a newly established Duke Productions should refrain from that.

Duke never intended to stake a claim in rights; he only wanted a share of the box office and the television and video rights. If the film could achieve its expected revenue, that would be enough to give Duke Productions a good financial standing.

Of course, Duke wouldn't overestimate Warner Bros.' credibility, so the agreement naturally included his hired accounting team's full participation in the film's preparation, shooting, production, promotion, and payment processes.

In reality, securing this portion of revenue from Warner Bros. wasn't easy. Duke actively compressed his salary and signed a 1+2 agreement with Warner Bros., meaning they had priority for investment and distribution rights for his next two films.

Upon arriving at Warner Bros., Duke headed straight to a large conference room, where the crew members who had tentatively signed agreements were gathered, discussing the upcoming work.

The producer of the film was Jeff Robinov himself, with the first production manager being Warner Bros. representative Charles Roven. The second production manager was Robin Grand, and with Duke as the director and executive producer, along with the finance supervisor dispatched by the insurance company, they made up the first tier of the "The Rock" crew.

The meeting was held among these people, and after hearing a bunch of dizzying numbers from the third-party representative, they needed to determine the art director, sound designer, sound director, stunt coordinator, pyrotechnics, and other key positions from among the candidates Warner Bros. had assessed and those who wanted to apply.

Unlike during "Speed," where everything was decided by George Lucas, Duke needed to participate fully in the process and find individuals whose concepts were similar to his own, especially regarding pyrotechnics; the previous team's technology was really subpar.

Having once excelled in this area, he certainly knew the names of the top teams in Hollywood. Unfortunately, most of them were currently nowhere to be found, and the list did not include relevant names.

"Let's put the pyrotechnics team on hold for now," Duke suggested. "I need top-notch pyrotechnicians; I want to speak to the applicants personally."

No one objected; the selection process for each job would take time.

"Do you have any suitable audition recommendations for the main character roles?"

The topic shifted as the production manager Charles Roven spoke first. "Tom Cruise is very interested in the role of Gus B. However, his agent has requested modifications to this character..."

He looked around at everyone. "Well, although he has box office appeal, let's rule him out for now."

"I'll suggest a few audition candidates."

Duke gestured to Sophia to distribute the prepared materials to everyone. "For Stanley Gus B, I propose Nicolas Cage. For General Hammer, I think Ed Harris fits the image I have in mind."

Nicolas Cage and Ed Harris had been working in Hollywood for many years and had starred in numerous films. Duke had no worries about their acting skills.

There was another role he didn't mention. After the project was established, Nancy suggested Naomi Watts to play Gus B's fiancée. The choice of actor for such an inconsequential role didn't matter, and Duke had no objections.

"You forgot about an important role..." Robin Grand looked at Duke. "John Mason's selection."

"Former British agent." Duke spread his hands and surveyed the laughing crowd. "Is there a more suitable candidate?"

"Sean Connery; no one is better than him!"

"But Sean Connery has a bad temper, an impulsive personality, and has struggled with alcohol and drugs. He's notoriously difficult to deal with!" some people expressed their concerns.

"Let's get in touch first," Charles Roven suggested. "After the meeting, I will send a formal invitation to CAA."

CAA?

Duke then realized that he had overlooked a problem. Sean Connery was not only a contracted actor with CAA but also had one of the longest tenures in the industry!