Chapter 189: The New Contract from the Producers Guild

In the southern part of Venice Beach, near the famous Marina del Rey in Los Angeles, there's an office park.

Michael Ovitz had just parked his car when Jennifer Reubold approached him, politely saying, "Mr. Ovitz, the boss has been waiting for you. Please follow me."

Ovitz was slightly displeased not to see Simon greeting him but maintained his composure in front of the lady and nodded, following Jennifer into a spacious warehouse in the park, filled with various vehicle assembly parts. Simon was discussing something in low voices next to a uniquely shaped 'motorcycle' with a Caucasian middle-aged man.

"Good afternoon, Michael," Simon greeted Ovitz, shaking his hand before introducing the other middle-aged man, "This is Adam Lockheart, a former designer at General Motors, now running his own studio."

After shaking hands with Adam Lockheart, Ovitz turned his attention to the 'motorcycle.'

The reason it was called a 'motorcycle' was solely because it had two wheels, both of which were wide tires typically used in racing. Apart from that, the vehicle's exaggerated, tech-savvy design hardly fit the traditional 'motorcycle' category.

Ovitz, who had been somewhat following Simon's activities, quickly understood the purpose of this 'motorcycle,' asking, "Simon, is this for 'Batman'?"

The 'motorcycle' in question was actually the super cool Batpod from the original "The Dark Knight" series.

Simon, not interested in Nolan's purely utilitarian Batmobile design, had come up with a new design for the Batmobile but kept the concept for this Batpod. Once he decided to shoot "Batman," he had it designed.

Simon showed Ovitz the Batpod, asking, "What do you think?"

Ovitz examined the striking vehicle closely, asking, "It looks innovative, but I don't see the power system. Can it run?"

Adam Lockheart, standing by, explained, "Mr. Ovitz, this motorcycle uses hub motor technology. Its power, transmission, and braking systems are all integrated into the hubs and driven by electricity, so yes, it can run."

Ovitz, always curious, became more interested upon hearing this and began to inquire about the vehicle's various details. The trio engaged in conversation, and Ovitz even had a chance to drive it a short distance within the warehouse.

Despite being able to move, the Batpod was quite slow at this stage, with Simon only expecting it to reach speeds of about 30 kilometers per hour for filming purposes.

After getting off the Batpod, Ovitz, reminded of Adam Lockheart's introduction to the advantages of hub motor technology, exclaimed, "It's surprising. I didn't expect such advanced technology to exist. Maybe we're on the verge of a new revolution in the automotive industry."

Lockheart carefully pushed the Batpod back to the center of the warehouse, responding to Ovitz's comment with a shake of his head, "Mr. Ovitz, hub motor technology isn't new at all. It has a history almost as long as the internal combustion engine. As early as 1900, Ferdinand Porsche, the founder of Porsche, designed the first electric car using hub motor technology. It's just that the automotive industry has focused on internal combustion engine development for a century, preventing the widespread adoption of hub motors and electric vehicles."

Ovitz realized, "That's a shame."

Simon lamented, "I've always believed that due to fundamental interests rather than pure scientific pursuit, we've missed out on so much. The Apollo program put humans on the moon in the sixties, but since then, the aerospace industry hasn't advanced; it's actually regressed."

Ovitz felt the Apollo program was somewhat wasteful.

Simon argued, "Before the Age of Exploration, some countries on this planet had numerous chances to dominate the world, yet it was England, with just a few million people, that built the empire where the sun never sets. The universe above us is infinitely more vast than the oceans. Who knows what it could bring us?"

After some casual conversation, Simon and Ovitz sat down at a workbench in the warehouse, with Adam Lockheart tactfully excusing himself.

Playing with a wrench, Simon asked Ovitz, "How did it go with Sony?"

Ovitz was surprised, as he hadn't concealed his trip to Japan but didn't expect many to know he was discussing the acquisition of a Hollywood movie company with Sony.

Since Simon mentioned it, Ovitz didn't deny it, saying, "Sony wants to acquire a major Hollywood studio, and CAA is also looking to expand its business. Speaking of which, Simon, the Japanese are very interested in you. They specifically asked about Daenerys Studios."

"I'm not interested in the Japanese," Simon said, moving on to the main topic, "Now that you're back, Michael, I hope the recent drama can end. Levinson and the others have achieved their goals, so I hope they'll all keep quiet now."

Ovitz's previously smiling face became serious, "Simon, you shouldn't have fired Barry just like that."

Simon looked at Ovitz, "Michael, we're both smart men. They all believed 'Rain Man' couldn't succeed. Levinson didn't want his newly acquired A-list status from 'Good Morning, Vietnam' to be tarnished, and Hoffman was afraid of repeating last year's box office failure with 'Ishtar,' so they blamed me. Now that they've got what they wanted, it's time to move on."

Ovitz wanted to negotiate more benefits for his clients from Simon, but Simon made the situation clear, leaving Ovitz no room to argue. He didn't want to appear foolish.

"I'll talk to Barry and the others," Ovitz agreed after a moment of silence, then asked, "What will you do next, Simon?"

"I like the script, Michael, as do you. Next, I'll personally take over the post-production of this project until it hits theaters," Simon explained, "Since the three of them no longer wish to be associated with 'Rain Man,' it's none of their concern. Daenerys Studios will pay them their contractually due amounts. All they need to do is keep quiet. And now, the whole country knows about 'Rain Man,' which is actually a good thing. Whether marketing is positive or negative, as long as it makes more viewers aware of the movie, it's successful."

Ovitz didn't express outrage at Simon's slight against his clients, instead showing understanding, "Is this the strategy you used for 'Basic Instinct'?"

"Exactly, it's called controversy marketing, very effective. You can try it when you run a movie company."

Ovitz shook his head, "I have no plans to run a movie company."

"If you miss the opportunity, it's your loss. CAA's scope is ultimately too limited, and you must be tired of it, or you wouldn't have consulted for Sony," Simon recalled Ovitz's career, adding casually, "But if you take over a movie company without absolute control, your loss will be even greater."

Ovitz thought about the invitation from Sony's executives during his trip to Japan to take over a major Hollywood studio after its acquisition.

While CAA's influence in Hollywood seems to be growing, the industry's limitations mean it's still a small player. Its over six hundred clients only bring in one to two hundred million dollars in total revenue annually. After paying the salaries and bonuses of over a hundred agents, not much is left for Ovitz himself.

In contrast, even the struggling MGM earns more than a billion dollars a year, and the Universal Studios parent company MCA (Music Corporation of America) that he recommended Sony acquire is a behemoth.

Since both had matters to attend to, Ovitz soon left. Simon continued discussing the Batpod's design details with Adam Lockheart before heading back to Daenerys Studios in Santa Monica.

Upon settling in his office, Amy came in with a document, explaining, "This is the new contract the Producers Guild just offered to the WGA."

Simon browsed the document, which included today's new contract and the one from mid-June that the WGA voted down.

He noticed the Producers Guild's tough stance in the new contract, demanding a four-year term instead of the usual three and completely rejecting the WGA's demands for syndication profits from one-hour TV shows to be based on rerun counts, insisting on a revenue share calculation with a mere 1.2% share, far below the industry's expected 2%.

The June contract, although setting a payment cap, offered a compromise allowing writers to choose between fixed and proportional sharing.

As for the WGA's other demands like movie profit shares, minimum wage standards, and more creative control, the Producers Guild also reduced these from the June proposal, decreasing the contract's value by $50 million, equivalent to at least a month's salary loss for over ten thousand WGA members.

Furthermore, the Producers Guild demanded a response within a week, threatening to delay negotiations by another month if the new contract was rejected.

With ABC's "Who Wants to Be a Millionaire" revival by Daenerys Studios drawing 20 million viewers, and NBC and FOX promoting their new reality shows, the pressure on the WGA was clear.

Simon wondered if the WGA would accept the contract, with Amy expressing concern about the impact on their TV business. Simon suggested they might invite non-union writers or look overseas if necessary.

Discussing the meeting with Ovitz, Simon mentioned they had reached an agreement, with no intention of completely falling out with CAA. Amy worried about Simon personally overseeing "Rain Man's" re-editing, but Simon felt he was one of the few familiar enough with the project to handle it.

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