Chapter 186: Birthday Party

Santa Monica.

Not far from the headquarters of Daneris Entertainment, on 2nd Street, there's a five-story office building that used to be the headquarters of a real estate company.

The stock market crash last year led to a collapse in the North American property market, and the struggling real estate company moved to the southern Ocean Park area to save on expenses. Simon then rented the entire five-story office building for the Daneris Effects Company.

Although this office building doesn't have as large a floor area as the two-story Daneris Entertainment headquarters or its own parking lot, its total area still exceeds that of Daneris Entertainment headquarters, perfectly meeting the needs of the Daneris Effects Company.

After several months of adjustments, Simon has integrated the two companies he acquired, Alias-Research and Wavefront-Technologies, under one roof, with the founder of Wavefront-Technologies, Mark Silvers, serving as the president of the new company.

During this period, Daneris Effects has been continuously recruiting, and in just over three months, the number of employees has reached more than 110, double the size of Daneris Entertainment.

However, unlike Daneris Entertainment, which has been continuously making substantial profits through projects like "When Harry Met Sally" and "Who Wants to Be a Millionaire," Daneris Effects is still in a money-burning phase. Simon plans to incorporate Daneris Effects into the upgraded Daneris Entertainment company as he integrates New World Entertainment.

It's July 26th, in the afternoon.

Inside a small meeting room at Daneris Effects, Simon, Terry Semel, and a few senior executives of the effects company, including Mark Silvers, are gathered around a desk watching a clip projected on the screen.

Over the past few months, acquiring two companies, hiring staff, and purchasing expensive graphic workstation equipment has cost Simon over ten million dollars. Naturally, he doesn't intend to let these hundred-plus employees idle.

The development of movie effects is driven by various projects. Simon has been providing Daneris Effects with various ideas for "Batman" and even the planned "Ghost" projects, asking them to research solutions and create various CG effect shots for practice, similar to making 3D animated shorts.

On the projector screen, a large swarm of bats flies through city streets like a terrifying cloud. Although there's no sound, the scene still gives a chilling effect. Mark Silvers plays this less-than-ten-second clip several times, and the room lights up as the curtains are reopened.

Playing with a pencil in his hand, Simon says to Mark Silvers as the room brightens, "The composite effect is very good, but the bats still don't look real enough. I hope they can be more detailed."

"It's a rendering issue," explains Mark Silvers, adding, "Simon, if possible, we'd like to develop a new rendering software based on the current technology. With sufficient funds and personnel, it could be completed in about a year."

Movie CG effects production is generally divided into modeling, rendering, and compositing.

The companies Simon previously acquired specialized in 3D modeling software (Alias, the precursor to Maya) and post-production compositing (Wavefront), leaving a gap in rendering technology.

Rendering is the process of using complex calculations of lighting, shadows, and textures to make raw digital CG models appear as real objects.

Pixar's famous Renderman rendering tool was already developed, suitable for both 3D animation and real-movie CG effects rendering. However, Jobs has yet to show any willingness to negotiate, and Simon isn't planning to rely on Pixar.

"I can agree to this," Simon nods and continues, "But 'Batman' can't wait a year. From now, you have at most eight months. 'Batman' will enter post-production in eight months."

Mark Silvers considers and replies, "Eight months is also fine. We can prioritize the technology needed for 'Batman.'"

After discussing for a while, Mark Silvers and a few executives leave the meeting room.

Once they're gone, Warner Bros. CEO Terry Semel, who had been quietly listening, smiles and says, "Aside from the schedule at the end of next year, I'm becoming more optimistic about 'Batman.'"

Simon knows Terry Semel's recent call to check on "Batman's" progress isn't his main purpose, so he follows the conversation, "Good movies always take time to perfect."

Semel gets straight to the point, "Simon, I heard Pascal is looking for new projects?"

Simon doesn't deny, "Yes, our company is too small. After finishing current tasks, we realize we have no films for next year's prime slots."

"How about we collaborate?"

"Hmm?"

Semel proposes, "I remember you were interested in the 'Bourne' novel rights held by Warner at the beginning of the year. Our company also wants to launch this project, so why not Warner and Daneris Entertainment collaborate?"

Simon smiles but doesn't reveal his thoughts.

If not for Simon's interest, Warner might have turned "Bourne" into a TV miniseries this fall, a common practice during the writers' strike.

Paramount's "Mission: Impossible" film also became a casualty of the strike.

However, Paramount has already released two blockbuster films this summer, "Crocodile Dundee II" and "A Trip to America," securing a profitable year, hence not needing to seek collaboration with Daneris Entertainment like Warner.

Simon hears that after the film version of "Mission: Impossible" was scrapped, Paramount plans to restart the TV version this fall.

Semel notices Simon's smile, feeling bitter.

Unlike the continuous box office hits from Paramount, Fox, Daneris, and Orion this summer, Warner Bros., one of the top seven, has had mediocre summer box office results.

"Funny Farm" in June made less than $25 million to date. "Tiger Detective," released alongside "Instinct" this month, saw a 33% drop in its second weekend, making a comeback unlikely, with expected North American total around $30 million.

In contrast, "Instinct," despite controversies, only saw a 17% drop in its second weekend, adding $13.91 million.

With $23.92 million in its first week, "Instinct's" ten-day North American total reached $37.83 million, a figure "Tiger Detective" might not catch up to even by its end.

Moreover, Warner Bros.' family comedy "Little Big League 2," with a $20 million budget and 1556 screens, only made a pitiful $3.96 million in its opening weekend, expected to barely cross $10 million in North America.

To date, Warner Bros. has released 24 films this year, with the best performance from Tim Burton's "Beetlejuice," reaching a North American total of $71.63 million by the past weekend, expected to close around $73 million.

The second highest-grossing Warner film in the first half of the year is "Funny Farm," with just over $20 million, describing Warner's film performance as dismal.

Terry Semel, backed by Warner chairman Steve Ross, isn't too worried about his career despite the poor performance, as Ross is known to protect his own. However, as a public company, Warner's dismal film business means Semel must bear responsibility.

Even Spielberg, celebrated in recent years, had a disappointing collaboration with Warner last year with "Empire of the Sun," costing $35 million but only making $22.23 million in North America.

Daneris Entertainment's success has challenged many people's perceptions.

From "Run Lola Run" to "The Butterfly Effect," "Final Destination," "When Harry Met Sally," "Pulp Fiction," and the recent "Instinct," five out of six films have reached the $100 million box office club, a feat beyond miracles, almost divine.

If Simon Westerlow wasn't in his early twenties, his prestige in Hollywood would be unmatched, comparable to Spielberg post-"E.T.," who couldn't maintain the success of "E.T." in subsequent films.

Simon is aware of his growing prominence and has considered making more mediocre films to lessen Daneris Entertainment's visibility. However, like avoiding an obvious pitfall, he's reluctant to intentionally produce failures.

Seeing Semel's hopeful look, Simon spreads his hands, "Terry, you see, I'm too busy to take on more projects."

"There's no need for that, Simon. None of us has that much energy," Semel presses, sensing Simon's softening tone, "Just agree to collaborate with Warner, and we can bring in anyone you want and make the film entirely to your liking."

Realizing something, Simon sees his company's lack of pressure from Hollywood's traditional forces is due to collaborations with major film studios.

Except for Orion, Daneris Entertainment's six projects have benefited Fox, Warner, and Disney, maintaining ties with MGM and Warner for "Rain Man" and "Batman," keeping these studios from pressuring Daneris Entertainment.

Deciding quickly, Simon asks, "What's the specific collaboration proposal?"

Semel, prepared, suggests, "We can follow the 'Instinct' model, splitting rights evenly between Warner and Daneris for this project, with Daneris fully responsible for production and Warner for distribution."

"The 'Bourne' series' success partly comes from its sharp action style and realistic filming, which could be replicated a decade earlier. However, without direct oversight, Hollywood might not have a director capable of handling the project, risking a less impactful version," Simon thinks, facing similar issues with "Rain Man."

After some thought, Simon refuses, "Terry, I have many innovative ideas for 'Bourne,' but I haven't found anyone in Hollywood who can fully realize them."

Semel offers flexibility, "We can collaborate on other projects, not just 'Bourne.'"

Simon smiles, "For other projects, I don't necessarily need to partner with Warner."

Semel smiles back, "What do you want, Simon?"

Simon states his terms, "Daneris can collaborate with Warner on a project, splitting 'Instinct's' benefits. In exchange, I want two rights from Warner, 'Bourne' and 'Wonder Woman.'"

"Done," Semel agrees quickly, "But Warner must retain investment and distribution rights for these projects."

"That's unacceptable," Simon declines, "I can't always bind my company's projects to other studios. For projects like 'Instinct,' considering a North American box office of $100 million, plus overseas and subsequent channel operations, Fox could earn over $100 million in profits. So, 'Bourne' and 'Wonder Woman' are bargaining chips."

"Simon, you can't guarantee our collaboration will reach 'Instinct's' level."

"Indeed, no guarantees," Simon shrugs, smiling, "Let's take a chance."

After negotiating, Semel doesn't immediately agree, especially for "Wonder Woman," whose rights technically belong to DC, requiring parent company approval.

Simon isn't overly concerned about Warner launching these projects on their own.

Everyone knows different projects yield different results under different hands.

After wrapping up afternoon work, Simon leaves around six and heads to Beverly Hills instead of Malibu.

Today is Sandra's birthday, and Simon had received an invitation to her party last week. However, although Janet knew, she didn't attend with Simon, sternly reminding him to be home by midnight.

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