Chapter 111: A Common Phenomenon

"Is it over there?"

Seeing James Franco hang up the phone, Murphy quickly asked, "How did it go?"

Seth Rogen also leaned in closer.

James Franco put away his phone. "Maurice Entertainment is very interested in the film. They offered a buyout price of four million dollars, but no higher..."

He shook his head.

Murphy slapped the steering wheel, both to remind his companions and to caution himself. "Stay calm. We still have Lionsgate and Fox Searchlight ahead."

Back at Stanton Studio, Murphy had a detailed discussion with Bill Rossis, who had hurried back. Maurice Entertainment could basically be ruled out. This small distribution company couldn't offer a higher price and wasn't interested in non-exclusive distribution rights.

Early the next morning, Murphy went to Lionsgate. Milton Johnson and his team also had a high assessment of the film's market potential.

Hollywood's major distribution companies have mature evaluation systems. While many factors can influence a film's success, they still have the ability to assess whether a film has real market value.

The selling point of "Saw" was obvious. A typical horror film production and distribution company like Lionsgate couldn't miss its strengths.

But they wouldn't offer very favorable terms either.

"Director Stanton..." Milton Johnson sat behind his desk, looking at Murphy across from him. "Lionsgate has signed distribution contracts with other companies before; this isn't unprecedented."

He gently tapped the table. "Thirty percent distribution commission is our bottom line."

Murphy was about to say something when Milton Johnson raised his hand, indicating he hadn't finished. "According to company policy, Lionsgate must also own fifty percent of the film's rights."

This was completely beyond what Murphy could accept, even harsher than the conditions from Miramax.

On the other side, Bill Rossis couldn't help but say, "Mr. Johnson, you've seen this film. You should be able to tell it's one of the best horror films..."

"Bill, you're from CAA, you've seen a lot." Milton Johnson leaned back in his chair, arms crossed, with a hint of sarcasm in his voice. "Tell me, does a well-made movie always succeed? Is there no risk in Lionsgate distributing this film? Can you guarantee it will be profitable?"

Even with a thick skin, Bill Rossis didn't dare make such a promise.

Milton Johnson continued, "Lionsgate has to bear the high risk of distribution, so we also need to expect high returns! Otherwise, how can I convince the others in the company?"

Murphy shook his head at Bill Rossis, indicating there was no need to continue the discussion.

He didn't even speak; Milton Johnson gave them no room to negotiate. This kind of negotiation was completely exploitative, even harsher than Harvey Weinstein. There was no need to waste words.

With such conditions, there was no way they could reach an agreement. Murphy and Bill Rossis soon left Lionsgate's headquarters in Santa Monica.

In the office, Milton Johnson dialed a number. "Jamie, activate the backup plan."

Murphy and Bill Rossis got into the same car. In the passenger seat, Murphy asked the more experienced Bill Rossis, "Will they lower their terms?"

Bill Rossis shook his head. "Unless you're willing to sell the rights."

Murphy replied without hesitation, "Lionsgate will be the last resort for now."

Hearing the terms offered by Milton Johnson, he had no interest in further negotiation.

While it was common for small production companies to be exploited by larger distribution companies, it was uncomfortable to be on the weak side of the negotiation.

"Thirty percent distribution fee." Murphy lowered the car window, letting the outside air blow away some of the stuffiness. "Isn't this the kind of distribution contract big companies give to their own films?"

Typically, Hollywood's distribution fees range from five to twenty percent.

"It's simple. Your Stanton Studio..." Bill Rossis brought his fingers together, making a small gesture. "And other distribution companies won't offer much better terms either. It's common for upstream companies to exploit downstream ones in this industry. Even if someone offers better terms, they can adjust. Plus, other companies' thirty percent distribution fee usually includes marketing costs, but Lionsgate's doesn't!"

Murphy fastened his seatbelt, feeling stronger than ever about the idea of self-distributing his film.

However, distribution isn't something that can be successfully established in a short time. Creating a relatively complete distribution mechanism also requires a lot of capital.

How could he break this deadlock? Murphy couldn't think of a good solution at the moment. The near-dominant advantage of distribution companies in the industry wouldn't change even in ten years.

He couldn't just infiltrate these companies' top levels and threaten them with a knife to distribute his film, could he?

Actually, during the negotiations for "Hard Candy," he had thought about finding some dirt on Harvey Weinstein to get better terms.

But times have changed. Freelance journalists could do that, but directors couldn't. Doing so would make everyone shun you, and you might never find a collaborator again.

Thinking about his goals, Murphy realized that this approach would be self-destructive.

As Bill Rossis had said, several other distribution companies, including DreamWorks, that had seen the preview contacted Murphy. Murphy, like a diligent ant, kept going in and out of these companies. However, most Hollywood distribution companies seemed to have an unspoken rule: they had a similar attitude toward small production companies.

The buyout prices offered by these companies were similar. Murphy had a film with over a million dollars at the box office as a basis. They could also contract for distribution, but the terms were similar.

In comparison, Miramax's buyout price and the terms of an intent film contract were relatively more favorable.

"We're still dealing with second-tier distribution companies. First-tier companies are even tougher."

Bill Rossis started the car and merged into traffic. "After decades of growth, the giants not only monopolize their own films' distribution rights, but also use their control over blockbusters to 'intimidate' theaters—in the same release period, films distributed by the giants get more theater support and promotional support, squeezing out independent filmmakers."

He shook his head. "In such a market structure, independent filmmakers have to choose giants as distributors if they want a wide release, which is a prerequisite for earning huge box office revenue."

Murphy also knew that the traditional Big Six in Hollywood couldn't be shaken from their positions in the distribution field in the short term.

Suddenly, he remembered some rumors he had seen online and couldn't help but ask, "I heard the Big Six often manipulate some film data using distribution commissions?"

"That's right. It's a common phenomenon."

Having never discussed this topic before, Bill Rossis continued, "Their methods are very sophisticated. Often, even if you know there's a problem, there's nothing you can do about it."

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