Until Lionsgate held its second internal screening, Navas allowed Gray to contact Sand Sea Entertainment to negotiate the distribution of "The Human Purge."
"I didn't expect Mr. Anderson to be so young," Navas said, somewhat surprised to see Ronan. "Youthful and promising."
Ronan didn't take the pleasantries seriously. "Thank you," he said with a smile. "I've just entered Hollywood and haven't fully figured out how movies work yet."
Navas smiled, immediately realizing that the other party might be intentionally showing weakness.
"I watched your film, 'The Human Purge,'" he got straight to the point. "It has its unique qualities, but also many flaws."
Ronan didn't address the latter part, instead seizing upon the former. "So, your company also sees its uniqueness? Having unique qualities can attract audiences."
Navas glanced at Ronan, becoming more convinced that age wasn't indicative of one's capabilities. "But the flaws in the film will push more audiences away from the theater."
"You've been in the industry for many years, more experienced and capable than me," Ronan began with a small compliment before shifting gears. "You must understand better than me that no film can please everyone. Even 'Titanic' had its critics, let alone 'The Human Purge,' which is just a horror thriller."
Navas knew all too well about these aspects. "The supporting roles in the film overshadow the protagonist, diminishing the audience's viewing experience."
"That's indeed a flaw," Ronan admitted.
Navas smirked, seeing the opportunity to press forward, likely to secure a more favorable distribution contract.
"But this flaw is also an advantage," Ronan's unexpected response caught Navas off guard. "It makes the target audience of the film clearer!"
He continued pointedly, "A clear target audience facilitates the distribution side in devising targeted marketing strategies, thereby saving a significant amount of unnecessary promotional expenses."
Navas immediately thought of the African American character who ultimately saves the protagonist's family. "You're targeting a minority audience?"
Ronan didn't deny it but said, "I held test screenings, and a significant portion of horror enthusiasts found the film appealing. Minority audiences also like to see..."
He paused to word it carefully. "...unfortunate events happen to characters like the protagonist's family."
Discrimination is a severe issue in American society, and there are certainly many who enjoy seeing misfortune befall white characters in films.
Navas remembered a market research report from last year and commented lightly, "So, you killed off the morally corrupt male lead?"
Ronan smiled but didn't answer directly. Instead, he opened his briefcase and handed over a meticulously collected data report, saying, "This is the audience composition data collected from the beginning of last year to the middle of this year. The proportion of minority audiences has been increasing every month, with a growth of up to three and a half percentage points since January."
Navas skimmed through the report. As Lionsgate had conducted similar surveys, he could tell it wasn't fabricated.
Ronan added, "In a way, Will Smith is also benefiting from the changing audience demographics. The African American audience is growing rapidly, and there are also quite a few Arabs in America. Asians don't have a negative view of Arabs, and even some white people... like me, actually support film equality."
The new company wasn't as rigid as the old one. Lionsgate originated from Canada, essentially outsiders in the North American market, so they understood the mindset and circumstances of outsiders.
The terms offered by Sony were too poor. Ronan hoped to break through with Lionsgate, continuing, "Lionsgate is currently focusing on horror films, and they are more professional in the reputation and operation of horror films than I am. That's indisputable. But the promotional resources for films often have a wastage rate of over sixty percent."
Navas nodded lightly, acknowledging Ronan's words.
Film advertisements often adopt a bombardment approach, with much of the resources being repetitive and wasteful. While there was consensus in the industry, there wasn't a good solution.
Everyone knew that the more aggressively you advertise, the easier it is to attract audiences.
Ronan continued, "During the promotion and distribution of this film, outdoor advertisements can be concentrated near minority communities, and platform advertisements can choose media with a large minority audience. You can also negotiate with theaters to increase the number of screens and showtimes near minority communities, often in relatively obscure cinemas."
"Even in the promotion, more focus can be put on the black character, such as increasing his presence on posters."
He emphasized, "It's well known that security is a concern in minority communities, with frequent violent incidents. Most minority communities have experienced various levels of violence, so for a film that condemns social violence like this one, it's easy to resonate."
This point was only realized after James Huang mentioned it. During filming and post-production, they intentionally highlighted the anti-violence theme.
Navas stared at Ronan. Although the discussion was general, it hit upon the film's advantages precisely.
He even had a feeling that missing out on this film would definitely be a decision error.
Ronan Anderson was well-prepared, speaking not just empty words but backed by solid facts.
Extremely difficult.
Navas sighed inwardly, swiftly making a decision to abandon the strategy of bargaining through the film itself.
Bringing up the issue of the supporting roles of minority characters at this point would make him appear somewhat foolish.
"Mr. Anderson, you've convinced me," Navas said as if he had just made a decision. "Let's discuss the distribution of 'The Human Purge' now."
Ronan was well aware that even facing Lionsgate, Sand Sea Entertainment still lacked capital. He wasn't delighted to have just repelled Navas's attack because even tougher negotiations lay ahead.
How could they ensure that "The Human Purge" would be shown in North American theaters while retaining more profits for themselves?
"Lionsgate has two distribution strategies," Navas wanted to regain the initiative. "One calculates revenue sharing, with a higher percentage; the other has a lower percentage but deducts promotional and distribution expenses later."
He looked at Ronan, the corners of his mouth subtly lifting. "Mr. Anderson, which one do you choose?"