Box Office Gross Profit Sharing

After the time entered 2002, the Hollywood movie market was also very busy. 

The 9/11 crisis brought a bit of confusion and panic to Hollywood last year. However, with the arrival of the new year, people have forgotten the unhappiness of the past.

 People in Hollywood are now thinking more about how to make money.

In 2002, Hollywood has indeed entered the era of blockbusters. Spider-Man, Lord of the Rings 2, Star Wars Episode 2, and Harry Potter 2, these series of movies, just hearing that they are in post-production now, is enough to let people know this year's box office war will definitely be bloody again.

As one of the major Hollywood companies now, Enigma Company is not lagging behind. 

They are also preparing to launch their movie Resident Evil in May this year. 

The production speed of X-Men is not slow, but they are not sure if it can be broadcast in time this year. 

These two movies can also be regarded as big-budget and big-investment movies, and they are not far behind in this box office battle.

These blockbusters, which are sure to dominate the box office, are now extremely popular in the media. Which movie will be the box office champion? This is also one of the topics that people compete on.

At this time, another piece of news also surprised people: Enigma Company has not only prepared two movies, but in addition to these two movies, Levi is also preparing a new film, and his movie is a science fiction blockbuster with a huge investment.

This news also surprised Hollywood.

Everyone knows that big productions and big investments make money. However, large-scale production and large investments may also lead to bankruptcies, which is what everyone is worried about. 

After the new century, more and more superhero movies have become popular, and there is a very important reason. 

It's because superhero movies have a very broad mass base, and they can be said to have a lot of die-hard fans. Even if they are slightly poorly made, some people will still curse them but pay to watch them.

Enigma clearly knows this. Otherwise, they wouldn't be busy releasing Resident Evil right now while preparing to make a new X-Men. These two movies, one with a gaming background and the other with a comic background, both have potential audiences. Saying they don't understand these principles would mean underestimating them too much.

However, at this moment, Levi still chose to shoot a story with a new theme. A new theme, a new story. There is always some danger in investing in extremely large-scale investment in shooting.

Although film companies seem to be making huge investments all the time, most film companies are raising funds. Even big companies can hardly withstand the failure of investment in a blockbuster film - although Windtalkers has not yet been released and MGM has not gone bankrupt, people still have this common sense.

But, such an approach, if successful, can also bring large-scale benefits. Look at Bruckheimer preparing an unpopular pirate-themed story like Pirates of the Caribbean.

Looking at Levi preparing a science fiction-themed story, one can only lament their choice: some people always have unique courage.

Amid people's exclamations, Levi's film is also being prepared step by step.

For him, the best news is the actors were already in place, and the cast of actors was not much different from what he had imagined.

On Isabelle Adjani's side, she readily agreed to Levi's invitation: she obviously had no intention of taking a break immediately and was still very interested in participating in the movie. The casting of other roles is also in full swing, making Levi very satisfied.

What made him most happy was that Denzel Washington agreed to take over the filming of this movie, but the salary he proposed was not a salary cut, but a salary of 10 million and a 15% share of the gross profit.

This price can be said to be quite accurate.

Obviously, Denzel Washington's agent is not stupid. The remuneration he proposed is the most popular model in Hollywood now. Since Tom Cruise used this model, more and more Hollywood movies have begun to use this model.

The so-called gross profit sharing refers to the total profit from the box office minus the theater and distributor portions and the portion received by the producer minus the production fee. 

In this part, it stands to reason that there is also money, such as the screenwriter's share, the director's share, etc. However, when the actors ask for the share, they are asking for this part of the share. The gross profit of the film production company is the object of their share.

This is already rare for actors: in Hollywood, one of the most important rules is that no one can directly get a share of the box office. The total box office figure is divided among theaters, distributors, and producers. Unless it is the tax bureau which can take money from it, no one else should even think about it.

The total box office will be in the hands of the theater chain, which will share the accounts, after taking their cut, with the distribution company, which in turn will share with the production company after taking the distribution cut. These parties cooperate with each other.

After the accounts are divided, each party will share them separately. The actors' money will be divided from the production company. 

That's what Denzel Washington means - the 15% he put forward is compensated from this. The current actors in Hollywood ask for roughly this amount; floating between 10-20% is a common rule.

For example, based on the investment of 100 million US dollars in this movie, if its global box office exceeds 600 million, the production company will get around 200 million. The amount given to Denzel Washington should be 15 million. Including the 10 million he initially requested, this is already a reward of 25 million - compared to his own salary of 20 million, this may be higher.

Moreover, this is just a normal situation. In fact, if the movie is well-filmed in the next two years, ticket sales can exceed this number. For example, released last year, Harry Potter and the Philosopher's Stone grossed 976 million dollars at the global box office. The actors' income would be extremely astonishing if such a movie had a gross profit share.

In Levi's memory, later actors did indeed do this - in Pirates of the Caribbean 4, Depp's box office was already ridiculously high.

Of course, this also creates a certain risk: if the movie really fails, the funds he received would only be 10 million.

However, Denzel Washington is not worried about this: since it is a big investment movie, the production company must have some confidence, especially in Levi's movies - Levi is a very successful person in Hollywood. Every investment he made basically made a profit. Few people believed that he would fail.

It is precisely because of this that Denzel Washington proposed the share with great confidence. And his asking price was very precise: Levi's film investment was about 100 million. No matter how bad the total box office is, it will still be around 500 million. In this way, as a producer, the final gross profit will be around 50 million. The remuneration he asks for can be said to be in line with his status demands on him. 

Levi just looked at it and gave a reply. "Let him slightly reduce the proportion of the share: If he is the absolute protagonist, then I am willing to give him a 15% share. However, although his role is very important, he is not the absolute protagonist. 15% of the box office share is too much. Let him reduce it."

Giving actors a share of the box office will undoubtedly reduce the profits of film production companies. Levi also knows this method very well. It is becoming increasingly popular among Hollywood actors that they cannot just say no. And that's not necessarily a bad thing.

"If we agree to his request, we can reduce part of our initial expenditure and invest more money in special effects production. And with better special effects, we can attract more people. The audience and the overall box office will also increase - this is not a money-losing business; the key is to use the money in the right place."

Levi also explained his thoughts to Alexander. What he wants is better movies, not stingy money-making. In his opinion, saving part of the money for special effects production can obviously make the film better. 

This is a good thing for everyone with money to earn. If the salary is increased in order not to give a share, there will be no money for special effects, and the result will be a movie with only ten minutes of special effects, so the film might as well not have been made.

However, Levi still felt that the price Denzel Washington asked was too high - this is a story with three main lines. If the protagonist of one line pays such a high price, what should he do with the other two lines? If everyone was given such a high salary, why would he make a movie...

Therefore, what he proposed to Denzel Washington was for him to reduce the proportion of his share slightly. In response, Washington's agent quickly responded.

"If it were another director who asked Denzel to play a supporting role, Denzel would definitely not agree. However, since it is directed by Levi, Denzel is willing to consider it. The basic salary of 8 million, plus The 10% share, cannot be any less."

Levi also knew that being able to reduce the money to this level was already the biggest concession. He said nothing more and directly stated that he could sign the contract.

However, when signing the contract, Levi also pointed out that Denzel Washington would have to continue filming at this price if there was a sequel.

In this regard, not many people in Hollywood care about it now, but Levi is very worried.

Shooting a sequel can give the movie a better audience and reduce risks, which is also a common practice. Since the 1990s, about 15 high-grossing movies have had sequels every year. 

In the 21st century, although this number has remained unchanged, investment has been increasing because such movies can make money.

However, movies can make money, and the pay will increase accordingly. Spider-Man was unable to continue filming after three films and was later rebooted into The Amazing Spider-Man. One of the biggest reasons was that the protagonist asked for too high a salary. 

It is obviously a superhero movie that does not require any acting skills, but the actor dared to ask for more than 20 million dollars in compensation plus a share. This is also the most important reason why their negotiations collapsed.

Denzel Washington is not a particularly important role in the movie, but he does have a lot of parts. If he opens his lion's mouth, Levi will not be able to bear it.

Denzel Washington did not raise any objection to Levi's request: At this time, there were not many sequels in Hollywood that had disputes over remuneration, and he did not realize what Levi meant.

As the movie's biggest star, his agreement can be said to be a big step towards the movie's success.

Levi's commercial blockbuster is finally going to be shot.

*****

Thanks and kudos for my patreons 

Marcelo Maia

Britanna

Mandy G

Scott DePaepe

Danny York

MMMCMXCIX, or 3,999

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