Chapter 77: The Opening Win

[Chapter 77: The Opening Win]

'Damn it, I'm also the chairman and CEO of a film company that owns its own distribution channels!' Charlie thought to himself.

Smart people have this downside - they can easily catch when others look down on them.

Thomas seemed to realize this too. But instead of explaining or apologizing, he changed the subject, showing his rudeness wasn't intentional.

"Charlie, your evaluation is spot on. According to agency surveys, nowadays people are willing to drive an extra 30 miles just to go to a stadium-style multiplex theater. Audience attendance in these theaters has increased by about 30% to 52%. Although raising funds for renovations is tough, it's necessary!"

They entered a restaurant, a grand, luxurious place about 2,000 square feet, with a classic long table and silver cutlery.

Charlie gestured for the guests to be seated first. "I hope my hospitality doesn't seem neglectful."

"Oh no, I'm happy to chat with young filmmakers because you're always full of passion," Thomas sat down, feeling nostalgic. "This industry is getting harder. The first Oscars were held in 1929 when an average of 9,500 Americans visited cinemas weekly. Some theaters were built like palaces - the Roxy in New York had 6,200 seats! Later, the Paramount Decree ended the big studio monopolies; TV stole countless viewers, and the Americans with Disabilities Act in 1990 came into play. We had to renovate theaters into multiplex, stadium-style venues. All the concession profits ended up in the hands of contractors."

Most people who made money often flaunted it, but old-timers like Thomas preferred to play down their wealth.

Since 1989, there had been a wave of media mergers, and the 1995 FCC Syndication and Financial Interest Rules, along with the latest telecommunications law passed by Congress, reversed the media restrictions set during the Reagan era.

Hollywood was effectively entering a new golden era! Even though theaters were no longer the main revenue channel, they remained crucial for projects.

If these theater operators weren't profiting, that would be unbelievable.

No profits, no drive for stadium-style renovations.

Charlie inwardly scoffed but feigned agreement with a bit of sarcasm, "Yeah, this business is getting harder. Your theater renovations greatly increase our distribution costs. Back then, distributing a film nationwide only needed about 800 prints, costing $800,000. Now with 2,000 theaters, we need over 4,000 prints! The printing and theater upgrades already hit $6 million, not to mention advertising costs."

Thomas chuckled awkwardly.

Damn kid, no respect for seniors.

Still, he really understood the industry.

The movie Fifty Shades of Gray seemed to not rely only on Fox or luck.

Thomas looked at Charlie seriously, thinking.

The film's initial audience research scored mostly B or higher. With high quality as a base and a sharp eye for target demographics, combined with heavy marketing, it achieved a box office of over $60 million in 7 weeks.

...

As the meals were served, they started chatting over dinner.

After personally meeting Charlie, Thomas dropped his elderly act and seriously said, "Pierza, you found a great partner. You know, not many 19-year-olds have such ability!"

"Haha, yes, I was shocked at first!" Pierza smiled. He knew Thomas meant not just work skills, but industry knowledge and social savvy.

Like government affairs, the entertainment business heavily relies on relationship skills.

Thomas ate a small bite of oyster and asked, "Interested in giving me a preview of your company's future plans?"

Charlie nodded happily and gave Pierza a look.

Pierza immediately went off script: "Corleone Studios will focus mainly on producing and investing in thriller and horror films for the next three years. We're also collaborating with Miramax and others on some art films."

He named specific projects and market directions, and went on about development achievements.

Mafia Distribution Company would handle all or part of these releases.

Recently, the group's board approved a $10 million investment into Mafia to improve distribution channels.

They expanded the acquisitions team to scour global film festivals for projects.

Signed a long-term contract with Abner to save money on film copy preservation.

And partnered with print media like Variety.

"Of course, we're also planning to invest in a record label."

Thomas listened carefully, nodding thoughtfully, his hand pausing mid-air with fork and knife, as if wanting more. After a moment's silence, he looked at Charlie.

For a distribution company, a few film projects -- even ones not yet planned like Saw -- at least have the backing of bestselling authors.

The best project was The Stockbroker, featuring Will Smith.

For a fledgling studio, these were barely decent. Other films could be bought at festivals; with enough money, a dozen or twenty a year could fill the slate. But more important were VHS and TV distribution, plus steady producers for reliable content, which were not mentioned.

As a seasoned veteran, Thomas instantly saw through Corleone Entertainment Group's tough exterior but weak core.

The introductions were just to impress outsiders.

Charlie caught his doubt and smiled helplessly: "Mr. Abers, obviously that's our purpose here: to expand distribution capability. Our content output far exceeds sales right now. Corleone has Spike Lee, me, and strong ties with Miramax. You must have heard we're involved with the Lord of the Rings project."

Thomas nodded slightly. "Yes, you're right. Given your past producing track record, Hollywood Theaters could sign a three-year distribution deal with you. I'm also happy to introduce you to theater owners, and leaders of snack and drink vendors."

Charlie and Pierza exchanged delighted looks.

Having this stable sales window would positively impact future project acquisitions and financing.

Thomas noted that projects like The Stockbroker, with Will Smith, were not unknown.

With Charlie's relentless marketing tactics, the projects had a good shot at success.

So why not show a bit of goodwill and make a low-risk personal investment?

Pierza asked excitedly, "What about the details?"

*****

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