Chapter 47: Universal

"NC-17 rating, MPAA rated Saw as NC-17?" Charles received feedback from the MPAA at Carpe Film Productions.

"James, they're saying the film's scenes are too gory and violent," someone informed him.

James Wan nodded and asked, "So, should I cut some scenes and resubmit it?"

"Handle it, I'll talk to the distributors," Charles frowned. The MPAA is really tough.

Warner Bros., Sony Columbia, 20th Century Fox, Disney, Universal, Paramount, and MGM - these seven companies were the current MPAA members.

Independent film companies not only faced pressure regarding ratings but also competed with large theater chains, which often signed exclusive agreements with the Big Seven to target smaller art house theaters.

What is the MPAA's role? Rating films is just part of it. Its main functions are political lobbying, strengthening ties between Washington and Hollywood, promoting American culture and commercial expansion, and fighting film piracy to protect Hollywood's interests.

Each MPAA member paid at least $20 million in annual fees. Who would the association protect if not its members?

Only by becoming a full MPAA member could a company be considered a top-tier Hollywood player. Full membership wasn't easy to obtain.

Sony inherited its membership by acquiring Columbia Pictures. RKO was also a member in the early days until it went bankrupt.

The Big Seven memberships had been stable for many years and would not increase.

"Duna, set me a meeting with Mr. James Schamus in Los Angeles this afternoon," Charles instructed.

The quickest way to solve issues was within the framework of the Big Seven, reducing many complications.

Of course, Carpe Films could submit multiple reviews and eventually get an R rating, but it would take more time.

At a high-end cafe on the second floor of Universal CityWalk.

Charles met James Schamus, the head of Focus Features at Universal, and Donna Langley, the head of production at Universal Pictures.

"Charles, Carpe Films is doing well. Why not find a long-term distributor? Universal has always supported independent film companies," Donna Langley, originally there to discuss the distribution of Saw and Brokeback Mountain, brought up long-term cooperation.

Charles looked up and asked, "What kind of cooperation?"

"Universal Pictures and Carpe Films sign a four-year distribution contract, with Universal deciding the investment amount based on the budget. Universal takes a 15% box office commission for each film, and profits are shared based on the investment ratio," Donna said, taking a sip of coffee.

"Additionally, Universal will pay Carpe Films $1.5 million annually for operating expenses."

This was essentially a hiring offer. Major distributors often used this approach, which could at least solve funding and distribution issues.

However, Carpe Films had gained considerable attention after its success. Distribution wasn't a major problem, only the conditions mattered.

As for funding, Charles believed that after several successful films, financing wouldn't be an issue.

"Four years, 15% distribution commission, and Universal decides the investment amount based on the budget?" Charles shook his head. "My films progress quickly and won't wait for Universal's funding approval. Even without external funding, I can invest myself!

15% distribution commission is too high. Lionsgate only asked for a 12% box office commission for Saw," Charles noted to Donna Langley.

"Ms. Langley, you underestimate me. I have confidence in my films!"

"Charles, with Universal's support, you could save a lot of time on financing and distribution, giving you more time to develop your films. I've heard you haven't taken a vacation in two years," James Schamus added.

"Charles, producers as young as you are rare in Hollywood. Sometimes a film's loss is too much for you to bear," Donna Langley genuinely wanted to bring Charles Carpe on board.

"I think we should sign a regular distribution agreement. Carpe Films can still offer Universal an investment share of 25% to 50% in our films," Charles clearly did not want to be tied to Universal for four years.

Donna Langley frowned, understanding Charles' thoughts, and glanced at James Schamus beside her.

James Schamus, catching the hint, said, "Focus Features and Rogue Pictures will distribute your Brokeback Mountain and Saw with a 12% distribution commission, deducting the marketing costs from the revenue."

This was a good offer. Donna Langley then proposed, "Alright, Carpe Films and Universal Pictures will sign a distribution contract for five new films."

"Five films?" Charles shook his head again, "No more than three films, and the contract will last for three years starting next year. I'll provide film projects for Universal to choose or reject for cooperation."

"Only three films? And only three years? Charles, that's not good," Donna Langley was clearly displeased.

"I haven't finished. For these three films, Carpe Films will take on at least half of the investment budget, and they won't be low-budget films, but large productions with budgets in the hundreds of millions," Charles continued, ignoring the surprise on the faces of the two people across from him.

*****

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