Chapter 358: A War of Words
[Chapter 358: A War of Words]
After the tremendous success of Paranormal Activity 2, numerous articles surfaced suggesting a "Guess Pictures Threat" narrative, with even renowned filmmaker Woody Allen publicly criticizing the film as shallow and crude.
In no time, critiques flooded the media, targeting Guess Pictures.
Former Castle Rock Entertainment president Rob Reiner took a stand, condemning Guess Pictures for monopolizing the market. He cited that Paranormal Activity 2 was released in over three thousand cinemas, outnumbering summer blockbusters like Apollo 13 and Die Hard with a Vengeance. This dominance rendered many quality indie films unable to secure adequate screenings, a practice that he argued needed to be strictly prohibited.
Moreover, over thirty unemployed filmmakers demonstrated outside Guess Pictures, demanding that the company stop competing with major studios and reduce the number of films released, in an effort to restore a stable order in Hollywood.
...
In response to the backlash, Guess Pictures couldn't afford to remain silent; their head of public relations, Lily, swiftly responded. She stated that the large-scale release of Paranormal Activity 2 was due to the current lull in the industry -- there weren't many films playing, resulting in more available screens for this movie.
Furthermore, she explained, the thrilling content of Paranormal Activity 2 attracted enthusiastic support from audiences, which led cinema chains to prioritize showing it over lesser-known indie films that catered more to directors than to viewers.
In regard to claims that the rise of Guess Pictures led to chaos and even decline in the North American film market, Lily countered by presenting real data. Over the past three years, Guess Pictures had released over thirty critically acclaimed and commercially successful movies, including Se7en, Speed, and The Shawshank Redemption, among others.
These films had garnered numerous awards, including Oscars, Golden Globes, and Cannes accolades, setting trends like "mockumentary" films and igniting the careers of emerging filmmakers.
In the previous three years, thanks to Guess Pictures, North American box office revenues had soared from $4.5 billion in 1993 to $5.2 billion. The increase in revenues led to a flourishing film market with higher earnings for industry professionals.
This also translated to Guess Pictures producing 32 films, employing over 13,000 actors and related workers, and distributing over $1.2 billion in salaries, benefiting many filmmakers and their families.
In the upcoming three years, Guess Pictures projected at least 500 full-time jobs and 20,000 short-term roles to allow even more filmmakers to share in this prosperity.
This was tangible progress.
Without Guess Pictures' ascendancy, the North American film market from 1994 to 1995 would not have displayed its current success.
"Ms. Lily, are you implying that the prosperity of the North American film market is attributable to Guess Pictures?"
At a press conference, Al Simmons from the Los Angeles Times raised his hand to ask.
"Absolutely!" Lily confirmed as she stood at the podium. Dressed in a stylish black business suit with a white fitted shirt that revealed her smooth skin along the collarbone, and adorned with a delicate gemstone necklace, her long black hair simply draped over her shoulders, presenting an image that was both beautiful and professional.
"In 1993, Guess Pictures ranked sixth in total box office earnings in the industry. By 1994, it reached number one in the sector. This year, our company's box office performance currently places it at the top. From 1993 to 1995, the market share of our films increased from 9% to over 25%, dominating the industry and driving growth within the film sector.
From these data points, it is clear that the prosperity of the North American film market is closely linked with Guess Pictures' rise; even if it wasn't a full 100%, at the very least, it was an 80% contribution."
"Ms. Lily, you mentioned earlier that the success of Paranormal Activity 2 in over three thousand theaters was due to support from cinema chains, but we have learned that Guess Pictures spent over $20 million on marketing for the film.
Such expenditure far exceeds what a typical production company could handle. Doesn't this suggest that your company might be engaging in over-promotion and market monopolization?"
A reporter of from the National Review inquired.
"No! Guess Pictures is also a regular film company; we do not artificially inflate our marketing costs. Such actions wouldn't benefit the company's growth.
As I mentioned before, the scale of marketing for Paranormal Activity 2 is primarily determined by current box office data. Audiences love it, and the release department puts in considerable effort to promote it. The higher the box office returns, the more investment we make in marketing.
Our goal is simply to make sure more people know about this film, showcasing its entertainment value, and also respecting the hard work of those who produced it."
Lily stated evenly.
"You mentioned earlier that Paranormal Activity 2 was made for audiences, while certain films are made for directors. Are you referring to Woody Allen's film, Mighty Aphrodite?"
A reporter from the New York Post asked.
"I've not seen Mighty Aphrodite, but I've heard from a few reliable film critics that it's not to my tastes. The type of films I meant aren't specifically targeting any one title, but rather encompass those smaller productions that don't resonate with general audiences."
Laughter erupted from the audience at her response, as it echoed Woody Allen's earlier words on television with great similarity.
Her reply seemed to convey her dissatisfaction with Woody Allen's criticism that Paranormal Activity 2 was a poor film.
...
"Damn! How can this despicable woman say such things? By saying this, she is showing me disrespect. How dare she disrespect me?"
In a cafe, Woody Allen listened to the unfolding events at the Guess Pictures press conference via the radio, feeling deeply discontented at Lily's comments. As a world-renowned filmmaker with a formidable reputation in Hollywood, despite having engaged in some unsavory and unethical conduct, few dared to publicly challenge him due to his stature.
Now, a woman like Lily had dared to criticize him and his film, which struck him as particularly egregious.
"Woody, don't get upset. You have a huge fanbase worldwide, and if Guess Pictures' spokesperson chooses to publicly challenge you, it will surely draw backlash from fans. Their films will feel the heat, and in the end, they will be the ones facing the consequences."
Harvey Weinstein reassured him.
Woody Allen furrowed his brow.
"Harvey, if Guess Pictures can spend over $20 million to promote that terrible film, why can't Miramax be bolder and invest more on marketing Mighty Aphrodite to ensure more people are aware of it? Our film has received good reviews, and with a stronger push, the box office will surely rise significantly."
Harvey felt helpless; it wasn't that he didn't want to invest more in film promotion, but they simply couldn't. This year, the company had released over ten films that performed disastrously, racking up losses exceeding $60 million, and they didn't have that kind of capital for new film promotions. Moreover, Mighty Aphrodite's niche subject matter and decent yet unappreciated reception meant that ticket sales would likely be poor, projected profits only around $500,000 in North America; even if it did well in Europe, they'd still face millions in losses.
As an experienced film businessman, Harvey wasn't willing to pump more resources into a project he knew would result in losses. However, given Woody Allen's significant clout and connections with affluent friends, he decided to approach the conversation with tact.
"Woody, it's fall now, and horror-thriller films tend to perform better during this season. Our strategy for a limited release of Mighty Aphrodite at this time isn't primarily about competing for box office sales, but rather preparing for the year-end awards season, aiming for nominations at the Golden Globes and the Oscars. With those accolades, Mighty Aphrodite's box office would experience significant growth. Even if it can't surpass the revenue of Paranormal Activity 2, it will certainly shine in terms of reputation and visibility," Harvey argued.
Woody Allen nodded, acknowledging that his films generally became contenders during Oscar season, given their traditional style and artistic flair often appealed to the Academy's older demographics.
Even more so, the Oscars had significant influence from Jewish members, which worked in his favor. Since 1978, he had received 18 Oscar nominations, securing one Best Director win and two Best Screenplay awards. He felt confident that Mighty Aphrodite might snag at least two nominations next year.
Once nominated, the chances were that box office performance would climb, whereas the flawed Paranormal Activity 2 would quietly vanish post-release, barely remembered.
This illustrated a contrast between art films and commercial cinema.
Woody Allen adjusted his glasses with a satisfied grin.
Seeing Woody Allen sporting a relaxed expression, Harvey Weinstein chuckled, "Woody, our company is currently shooting an artsy film with a lovely eighteen-year-old actress who looks quite young for her age. Her acting skills are lacking, and we could really use some expert guidance; do you have the time to assist?"
Knowing Woody's preferences for petite young women, Harvey seized the moment to flatter him.
Woody raised an eyebrow and responded warmly, "Harvey, we're friends; you don't need to flatter me like this. However, I do enjoy helping actors; I could take a look if I'm free."
"Haha, I get it. Whenever you're available, I'll ensure everything is in place; there won't be any issues," Harvey winked while smiling.
---
After the conclusion of the Guess Pictures press conference, Lily's comments garnered significant attention in the industry and stirred considerable debate.
Some supported her assertions, believing that Guess Pictures had indeed released many successful films, enriching the North American film market and diversifying its themes. Furthermore, many of the films produced by Guess Pictures were groundbreaking, inspiring fellow filmmakers, and their approach to distributing films was worth emulating.
Conversely, others argued Lily was merely boasting, claiming Guess Pictures' influence in the American film industry wasn't as significant as she portrayed it to be. Critics insisted that Guess Pictures was disrupting Hollywood's established order, undermining the stability of the North American film market, and in comparison, the negative consequences outweighed any positive effect.
Some believed Lily's rebuttal against Woody Allen was somewhat disrespectful toward an established artist and suggested she should apologize. Others sided with Lily, asserting her response was clever and that someone like Woody Allen, with no moral compass, deserved the sharpest critique to make him feel the shame -- Lily's remarks at the press conference were seen as not too excessive, and some argued that a sharper tone would have been even better.
...
Michael Leeson, executive president of Guess Pictures, also stood up to respond to the slew of negative press. In a recent interview with The Hollywood Reporter, he shared that since its inception in 1992, Guess Pictures had faced immense pressure from competitors but had thrived due to the able leadership under chairman Link, with colleagues working in unity, allowing Guess Pictures to emerge stronger from each challenge. Therefore, they were not afraid of pushback and skepticism.
Concerning the "Guess Pictures Threat" narrative, Michael Leeson asserted that such rhetoric didn't significantly impact the company. Guess Pictures had no intention of reducing its film output due to negative reports; instead, it would seek to enhance its production capabilities to match the major studios, aiming to produce over 20 films yearly.
Though this strategy might raise the competitive intensity within the film industry, it could also ignite a stronger resolve among peers to elevate their creative efforts and produce better films for the viewers.
---
General audiences appreciating Leeson's remarks echoed their hope to see more quality films in theaters moving forward. However, the major studios' executives reacted fiercely to the article, lamenting that with Guess Pictures producing about ten films each year, the North American market was already in turmoil, applying immense pressure on them; should Guess Pictures scale up to 20 films annually, the consequences would be dire.
...
"Greg, when is Guess Pictures planning its third round of financing?"
In Universal Pictures' office, Ron Meyer scrutinized the newspaper while calling Greg Davis, chief investment officer at Vanguard Capital, a stakeholder of Universal's parent company, MCA; Greg was also a Jewish investor.
"Third round? We just wrapped up the second round in May; Guess Pictures isn't in need of funds currently, so I don't see them pursuing a third round in the immediate future. Moreover, Link places significant value on his stake, likely won't initiate a third round for the next five years," Greg Davis replied.
"Five years? That's too long of a timeframe." Ron Meyer's expression turned serious. "Greg, can you find a way to urge Link to expedite the third round of financing and secure additional shares to try and control Guess Pictures? Guess Pictures has severely influenced the interests of the major studios, impacting our leverage and control in Hollywood. This situation can't last; we need to rectify it soon."
"That might be quite a challenge. Although Link doesn't own 50% of the shares, he possesses over 70% of voting rights, and Guess Pictures operates primarily under his directives. It would be difficult for other stakeholders to threaten his position. Additionally, under his leadership, Guess Pictures has seen accelerated growth over the past two years with extremely lucrative returns on investment; shareholders are quite pleased, trusting in his competence and willing to support his leadership. As long as Link doesn't make serious errors in film investments, no one can threaten his standing in the company, not to mention controlling it.
Your concern about Guess Pictures' rise seriously affecting major studios' interests raises an interesting question. How is it that amidst seasoned studios, with decades of production experience, massive talent resources, and the backing of media conglomerates, Guess Pictures, established just four short years ago with essentially no funds and still building its production and distribution capabilities, can frequently outperform them? This is puzzling; can you provide some clarity here?" Greg Davis inquired.
Ron Meyer appeared stumped and couldn't find a suitable answer.
Greg's observations held merit; in terms of both resources and soft capabilities, any major studio dwarfed Guess Pictures, yet they were often outperformed at the box office that left the executives in a bind.
They had investigated this matter. The crux was that Guess Pictures excelled in film selection, production, and distribution, bolstered by Link's high-level directing and prolific output.
But he couldn't reveal this to Greg, who would perceive them as inept.
Seeing Ron Meyer at a loss for words, Greg Davis urged him not to merely compete against Guess Pictures but rather to glean insights to emulate their operational success. By strengthening Universal and other studios to reclaim their formidable presence in the market and grasp a larger box office share, they could counteract or mitigate the influence of Guess Pictures, preventing disruption to Hollywood's old order or any threat posed by Link to Jewish interests in the industry.
For Greg's suggestion to control Guess Pictures and suppress its earnings, thereby risking its bankruptcy, was not in line with the investment strategy, and the investment division wouldn't back that approach.
Ron Meyer breathed out a resigned sigh upon hearing this, acknowledging his thoughts, later asserting that he would enhance company management to boost box office performance and generate greater returns for shareholders.
...
After hanging up, Ron Meyer reached out to other Jewish executives from several investment firms.
Among these executives, those who held stakes in Guess Pictures displayed no interest in undermining it and instead encouraged their peers to rise above Guess.
Those without stakes expressed willingness to help but would only do so with a tangible plan in place. They wanted assurance of their gains in exchange for efforts toward collapsing Guess Pictures -- greater prospective returns warranted more support, while mere empty promises held no appeal.
Ron Meyer expressed gratitude for their backing, assuring them they would see concrete benefits.
After negotiating with investors, Ron Meyer continued to contact figures like Barry Diller and Michael Eisner, seeking their opinions on Guess Pictures' potential for dominating the total box office rankings once again.
They agreed the situation looked dire and merited caution, inquired for his suggestions while recalling that prior to Michael Ovitz's departure, he typically spearheaded such initiatives among the major studios.
Now that Ovitz had joined Disney, the lack of liaison made collaborative efforts challenging.
Ron Meyer proposed Harvey Weinstein take up the mantle, stepping into Ovitz's role to forge alliances within the studios, rallying all forces to confront Guess Pictures head-on.
Simultaneously, he suggested a sustained push against Guess Pictures at the box office to apply pressure on their executives, increasing the likelihood of mistakes in their operations.
Barry Diller, Michael Eisner, Sherry Lansing, and Terry Semel acquiesced to this plan.
Harvey Weinstein, upon hearing the news, enthusiastically agreed, pledging to commit to the struggle to bring down Guess Pictures and Link as soon as possible.
*****
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