Chapter 115: Distribution Contract

The sky had darkened, and the temperature had dropped. In the courtyard in front of Stanton Studios, a table was set up in the center. Murphy, James Franco, Seth Rogen, and Jonah Hill sat around it, speaking loudly. When Kerry Mulligan approached with a fruit platter, their voices quickly lowered.

Since that night, they had gradually formed a small group.

"If I become a star in the future," Jonah Hill, still fuming from the news from Bill Rossi, expressed, "I will never work with trash companies like Lionsgate!"

A beer mug slammed onto the table with a loud thud as Seth Rogen, looking seemingly innocent, his chubby face flushed, declared, "Count me in too!"

Their vigor was evident, despite being newcomers to the industry.

Standing up, Kerry Mulligan raised her glass boldly after taking a sip, wiping her mouth with the back of her hand. "Count me in too!"

She was determined to take down the top brass at Lionsgate!

Hearing this, James Franco grabbed a grape and popped it into his mouth, about to say something when he noticed Seth Rogen, Jonah Hill, and Kerry Mulligan all staring at him.

Avoiding Kerry Mulligan's gaze, he nodded to the other two and raised his glass, saying loudly, "Count me in too!"

"Thank you!" Murphy raised his glass, gesturing to each of them in turn. "Thank you all for your support."

He downed the remaining contents of his glass, and the others followed suit.

Having experienced life in prison, Murphy's heart was tough enough. Hearing their words, he felt a bit moved. Having people support him and fight alongside him was much better than struggling alone.

Although they couldn't do much beyond words.

On the other side of the Pacific, he was a lonely man. Coming here led him straight into a place devoid of daylight. Now, with a girlfriend and a few like-minded friends, life was undoubtedly moving in a better direction.

Though there were countless obstacles ahead, like Lionsgate and Miramax, Murphy believed he could persevere and reach the pinnacle of his directing career.

As he drank, Kerry Mulligan's face twisted in concern. Reminding Murphy about Bill's warning regarding Lionsgate's interest in producing a similar film to Miramax's, she asked, "What should we do?"

She couldn't help but worry. With two films under her belt, she had some understanding of the industry. If "Saw" didn't find a suitable distributor, and Lionsgate's film entered theaters first, Murphy would likely suffer significant financial losses, possibly even failing to recoup the investment.

Glancing back at the darkened building hiding in the shadows, she thought about what would happen if "Saw" failed. They probably couldn't afford to rent this house anymore. She and Murphy might end up homeless in the park...

Although it seemed romantic in the mind of a young girl, the thought of the financial and emotional toll Murphy might endure made her heart ache.

What should they do?

Seth Rogen, Jonah Hill, and James Franco looked to Murphy. It was easy to shout slogans, but they knew solving the problem depended on Murphy.

"In any industry, big companies upstream exploit smaller ones downstream," Murphy said, leaning back in his chair, his tone gradually relaxing. "Actually, this matter isn't difficult to solve. We just need our film to enter theaters first."

He cleared his throat, and Kerry Mulligan handed him a glass of water. After taking a sip, he continued, "Let's make a hypothesis. Lionsgate is determined to produce a similar film, but it would take them at least twenty days from preparation to completion. If we can enter theaters during this time, even if they follow closely behind, they'll just be imitators."

James Franco understood Murphy's point. "Imitators never match up to the original in terms of reputation or box office."

"Bingo!" Murphy snapped his fingers. "As long as we can beat Lionsgate to the theaters, the impact on us will be minimal. And as for Lionsgate? If they really go ahead with a similar project after we've just premiered, their risk will at least double!"

For professional horror film companies like Lionsgate, doubling the risk might not seem like much. But it was likely why they dared to discuss this project.

This was Murphy's own idea. Since Lionsgate had discussed the project at the executive level, it meant there was a possibility of it becoming a reality.

As he said, the best way to avoid Lionsgate's influence was to push "Saw" into theaters as soon as possible.

Of course, Murphy and Bill Rossi weren't entirely sure if Lionsgate would actually proceed with their plans, but it was better to be prepared for anything.

Reality didn't give him much time to wait. Murphy accelerated the pace of negotiations, leaving an offer of $15 million plus two film contracts with Miramax, but negotiations reached another deadlock.

However, to leave room for maneuvering, he kept Rossi in touch with Miramax.

As for DreamWorks, Morris Entertainment, and a few other companies, they either couldn't reach an agreement due to significant differences or were rejected by Murphy.

The only progress was with Fox Searchlight.

Perhaps due to their corporate strategy or the impact of their exceptionally poor first-quarter performance, they showed significant interest in Murphy's estimated million-dollar film for the North American market.

As the boss of Stanton Studios and the film's rights holder, Murphy engaged in five rounds of negotiations with Fox Searchlight's Gordon Clyde. Like their initial negotiations, Clyde remained relatively mild-mannered, always wearing a smile that could charm anyone. However, when it came to interests, he was unwavering.

Negotiations were tough, and at times, Murphy even considered accepting Miramax's offer given the lack of progress. But thinking of Harvey Weinstein's true colors and Miramax's attitude, he still treated them as a backup option, even though Miramax was rumored to be moving forward with a horror project...

The biggest point of contention between Murphy and Fox Searchlight was undoubtedly the distribution fees. In negotiations with Clyde, Murphy haggled tirelessly, managing to lower the fee from 30% to 25%. This meant that if "Saw" made $10 million at the North American box office, Fox Searchlight could take home $2.5 million.

While this condition seemed stringent, it was actually quite good. Murphy's most significant success was ensuring that all of Fox Searchlight's publicity and distribution channel expenses were included in this 25%, along with other miscellaneous expenses like venue fees, transportation costs, labor costs, PR fees, and insurance.

Stanton Studios had to bear very little. The largest expense was the cost of making copies. With less than $100,000 in hand, Murphy couldn't afford it. According to the supplementary agreement between the two parties, Fox Searchlight would advance the money, which would be deducted from the box office share.

The cost of making copies may not seem significant, but it was quite high. For a film like "Saw," even with Murphy compressing it to around ninety minutes, the cost of making a copy was substantial.

A standard 35mm print, lasting about 4.5 minutes, cost around $150. For a ninety-minute film, it would cost at least $3,000. With 100 copies, that's $300,000...

Even though bulk printing would be cheaper

, no distribution company would readily bear such expenses.

For a union-registered project like "Saw," Murphy also had to pay fees to several union organizations, which Stanton Studios had to bear independently.

Then there was the matter of rights. Half the rights requested by Fox Searchlight were obviously not feasible. Both parties made some concessions, with Stanton Studios retaining 70% of the rights, and the remaining 30% going to Fox Searchlight. This meant that aside from box office revenue, other peripheral rights income would be split according to this ratio.

This was the best deal Murphy could negotiate with any distribution company.

With all terms settled and officially documented by the union, Murphy, representing Stanton Studios, signed the distribution contract with Fox Searchlight. Fox Searchlight had conducted market assessments and planned to push "Saw" into theaters as soon as possible.

For commercial companies, time was also a cost.

The period was still in the midst of North America's hottest summer, but by early July, most of the major mainstream productions with massive investments had already passed their prime. Films that considered themselves contenders, even some second-tier and small productions, would start sharing the scraps of the summer box office.

Fox Searchlight planned to release "Saw" in mid-July, with a two-week promotion period beforehand. For such a small production, this extended promotional time was rare.

They had drawn up a promotion plan and budget, which they also shared with Murphy. It was hard to say how accurate it was.

The plan definitely had some padding, but with such a limited investment, Murphy felt like shouting at Fox Searchlight to be more frugal!