Chapter 106: A High Stakes Game

"Sorry, Mr. Stone."

In the conference room of the Empire Entertainment Theater Company, Miller politely addressed the project manager from Warner Brothers, "I don't have the authority to expand the screening of 'Eyes Wide Shut' to more theatres. My boss is at the headquarters. We can discuss this once he returns."

This was clearly an excuse, as the big six companies are the primary sources of films.

Stone smiled, "The Los Angeles branch holds significant weight within Empire Entertainment. Mr. Miller, you're not only a selection expert but also oversee theatre operations. Expanding the 'Eyes Wide Shut' screening is just a matter of your word."

Seeing that he couldn't avoid it, Miller admitted, "I really can't make that decision. Empire Entertainment has no free theatres at the moment."

"I heard you plan to pull 700 theatres." Stone was well-informed. "Can't we get a third of that for 'Eyes Wide Shut'?"

Realizing he couldn't deceive Warner Brothers, Miller confessed, "These theatres are already planned for other films."

Stone frowned, "Planned for what? DreamWorks' upcoming 'The Haunting'? No, that movie is set for 2,800 theatres. Could it be for 'The Blair Witch Project'?"

Miller did not deny it and nodded.

Stone immediately questioned, "Allocating 700 theatres to 'The Blair Witch Project' is too risky. From what I know, its budget was around $50,000, and it has no notable cast."

Miller didn't argue but stated, "The marketing and distribution budget for 'The Blair Witch Project' is $15 million! It's comparable to 'Eyes Wide Shut'."

Stone retorted, "But 'Eyes Wide Shut' is Stanley Kubrick's last film! It stars Tom Cruise and Nicole Kidman! It was last weekend's box office champion!"

"Your 'Eyes Wide Shut' has an average of only $9,000 per theatre," Miller shook his head, "While 'The Blair Witch Project' averages $59,000 per theatre."

Seeing Stone still wanting to argue, Miller stopped him, "Your company knows better than us that 'Eyes Wide Shut' won't gross over $100 million in North America. Its obscure content makes it hard to attract audiences. Without Tom Cruise and Nicole Kidman, we would have reduced its screens this week."

Out of respect for Warner Brothers, Miller added, "The screening of 'The Blair Witch Project' at 200 theatres yielded $59,000 per theatre. Its market potential is far from being fully realized."

The theatre company isn't a charity. Despite the ties with the big six companies, it can't ignore a film that could be hugely profitable.

Stone talked a bit more, but seeing no results, he left.

Miller escorted him out. Empire Entertainment had been quite accommodating to Warner Brothers. 'Eyes Wide Shut' would keep its current screens and schedule for the week.

As for 'The Blair Witch Project'...

Sighing, Miller picked up the relevant statistics from his desk. This film had indeed translated social buzz and discussion into actual market revenue.

With years of industry experience, he realized he had misjudged, but he was somewhat prepared. Expanding the screening wasn't tricky for Empire Entertainment.

Given the current situation, the crazy marketing campaign had succeeded.

How did Seashore Entertainment come up with such a plan? He had known Garcia Rodriguez for a long time. He was capable, but such a crazy plan wasn't his style.

Miller recalled that Seashore Entertainment had recently been acquired by a young producer named Michael Davenport. Could this be Davenport's doing? This guy was extraordinary!

Miller decided to investigate and report to the headquarters, as the theatre's film selection also considered the producers.

The phone suddenly rang. Miller answered, finding it was Brown from AMG.

Their conversation revolved around 'The Blair Witch Project'.

"A crazy, brilliant, and successful marketing campaign. The person behind this will change Hollywood's marketing landscape."

Miller agreed, "This person is not only skilled but also stays behind the scenes, avoiding potential risks. This mix of audacity and caution is rare."

Miller asked, "How many theatres are AMG dedicating to 'The Blair Witch Project'?"

"Nearly 700," Brown didn't hide, "This film will bring us huge crowds."

Crowds bring ticket sales. More importantly, they drive high-profit concession sales like soda and popcorn.

Miller calculated that with other companies' contributions, 'The Blair Witch Project' would screen in over 2,000 theatres the next weekend.

Given the $15 million budget, such treatment was reasonable.

This unique and effective marketing campaign was also a financial gamble.

Miller hoped the film wouldn't disappoint after the expansion.

Unlike Artisan Entertainment, Seashore Entertainment, under Michael's guidance, had prepared comprehensive plans. Just the post-first-week work plan had three scenarios. They were now executing the ideal one.

Garcia's negotiations with commercial theatre chains went smoothly. As commercial entities, the theatres wouldn't miss out on such a lucrative opportunity. At the start of the new week, Seashore Entertainment confirmed the number of theatres for the second weekend.

'The Blair Witch Project' would expand to 2,750 theatres!

Michael immediately decided to invest further, ordering 500 more copies.

Seashore Entertainment had borrowed $17 million from Relativity Entertainment for this project.

This included a $10 million bank loan and $7 million Michael had raised through various channels.

This money wasn't all spent. The marketing costs were staggered.

With enough buzz, further large-scale marketing wasn't needed.

Michael estimated the total investment for the film to be over $18 million.

The so-called low-budget miracle was mainly the film's production cost. The total investment was still high.

But the revenue was now predictable. Based on social response and first-week box office, several forecast agencies estimated the North American gross to be at least $80 million.

And there was the international box office.

After the theatrical run, with home video and TV rights, the conservative estimate was $100 million.

Luckily, Michael had secured the distribution company early. Without it, even with plans, he'd be stuck.

Distribution channels were crucial. Acquiring them later would be tough.

Michael remembered Lionsgate acquiring Artisan Entertainment in the past for $450 million and Relativity Entertainment struggling to build distribution channels, spending nearly $200 million for 45% control of a minor distributor in 2010.

Now, having the chance to acquire a relatively complete distributor, Michael felt fortunate.

There was already controversy about 'The Blair Witch Project' on the internet and media. The film couldn't fool everyone. Michael didn't intervene. Controversy was the best publicity as the film expanded.

The following weekend, 'The Blair Witch Project' would compete with DreamWorks' horror film, 'The Haunting,' which had over 2,800 theatres.

It starred Liam Neeson and Catherine Zeta-Jones.

The following weekend, Julia Roberts' 'Runaway Bride' would premiere.

Then came August, marking the end of the traditional summer season and a slow period for North American cinemas.

Michael wasn't concerned about these films. If 'The Blair Witch Project' performed poorly, he might try to capitalize on Julia Roberts' fame. But given its current state, others would likely ride its coattails.

On Monday, 'The Blair Witch Project' continued its momentum in 200 theatres, maintaining an average of $10,000 per theatre, grossing $2.6 million.

On Tuesday, it rebounded to over $3 million.

The film had become a societal phenomenon. True to Hollywood style, many sought to capitalize on its success.