Chapter 78: Meeting Expectations with Some Shortcomings

[Chapter 78: Meeting Expectations with Some Shortcomings]

Previously, Mafia Distribution had a cooperation agreement with Hollywood Theaters. But that was a basic distribution contract. They accepted films offered by Mafia, but whether to schedule screenings still required further meetings with the theater chain operators. This left plenty of wiggle room for the theaters.

Charlie hoped for a clear minimum standard, like film production costs reaching $100,000 or $1 million, total advertising and marketing budget, and audience word-of-mouth from previews. "The data could be provided by a third-party audit firm. Once certain standards are met, you have to commit to a fixed number of theaters for wide release."

Thomas chuckled, "No problem. We mainly calculate by film costs and your advertising budget. Hollywood Theaters has 400 screens, mostly in the western region."

Charlie asked, "Can the specific screening regions also be specified in the contract? Also, the box office revenue share: if the first few weeks reach a certain amount, we get 70%, then a tiered decline until the box office falls to a certain level, after which you keep 100%."

The revenue split between film distributors and theater chains wasn't a fixed 50/50 from start to finish. Instead, it adjusted weekly. Blockbusters like Independence Day could get up to 90% of the box office in the first one or two weeks. Usually, theaters took a larger share later on.

This kind of split not only depended on film quality but also on the distributor's capability. Different films negotiated by different distribution companies ended up with different deals.

Thomas smiled at Charlie, then glanced at Pierza and shrugged, "We have cooperated for many years. For old times' sake, and of course because I admire you, Charlie, I've decided to sign a distribution contract for you equivalent to Orion Pictures!"

Charlie couldn't help but stand and reach out his hand, "Mr. Abers, I honestly don't know how to express my thanks!"

Orion Pictures was one of the most successful independent film studios from the 80s to 90s. Founded by top United Artists executives, it attracted directors like Woody Allen, James Cameron, and Jonathan Demme, collaborating on many successful films.

Thomas directly elevated Corleone Entertainment, next to the Big Six, United Artists, and MGM, to a top-tier independent studio ranking! This was a very friendly gesture. In terms of profit, just with this one theater chain, their concession exceeded 5%. For example, the previous revenue from Fifty Shades of Gray at Hollywood Theaters might have been $600,000, now increasing by $30,000.

Would other chains follow suit seeing this? The answer was definitely yes.

Increased distribution profits would positively reflect on purchasing domestic and foreign projects. Things don't exist in isolation. As Charlie leveraged Will Smith to pry open CAA, then gradually toppled Fox, many corporate collapses began with a tiny decision. A single step starts the journey of a thousand miles.

Though Hollywood Theaters wouldn't lose much, replacing the company or person might make meeting Thomas impossible.

"Don't mention it, Charlie," Thomas winked after shaking hands. "Actually, if Mafia Distribution hadn't been acquired by you, this contract would have come into effect after the successful joint release of Fifty Shades of Gray!"

Pierza shrugged innocently.

Charlie wasn't petty or angry this time, instead laughing heartily, "Yes, I'm well aware. But my colleagues and I are confident Mafia joining Corleone Entertainment, plus Thomas, you offering this contract, is the right call! Friends, let's raise a glass and look forward to that day!"

"Cheers!"

The atmosphere warmed immediately. Everyone stopped discussing work and started eating and drinking heartily, joyfully chatting about industry stories.

...

After two full hours, Charlie and Pierza personally saw Thomas off.

In the restaurant lounge, their faces flushed with joy, everyone slumped on sofas without caring about appearances.

"Dear, this business event will surely bring great success. I'm glad to see your career booming," Vera's eyes sparkled with joy and admiration.

"Oh, thanks, of course!" Charlie smiled as he chatted with the beauty.

Pierza said seriously, "This is a great start. I talked a long time with Thomas; he never explicitly expressed himself before. But after meeting you, he clearly has confidence in us."

Gert chuckled, "Yeah, anyone would question doing business with a 19-year-old boss at first. But once they meet you, all doubts disappear."

Charlie grinned jokingly, then turned serious, "It's no surprise to reach an agreement with Thomas, though he offered better terms than expected. The success of Fifty Shades of Gray, cooperation with Miramax, CAA, even Fox, were crucial bargaining chips. I believe tomorrow we'll sign long-term agreements with stronger chains like AMC and Galaxy Cinemas, though conditions won't be as good as Hollywood Theaters'. The key is expanding the number of theaters and, more importantly, TV and videotape distribution channels."

Pierza smiled wryly, "That will require long-term development, using hit films and quality products to build our sales platforms."

Etto suddenly said, "If you develop another Fifty Shades of Gray with strong sales tactics, I think theaters will fully support us, even selling the worst movies at huge value. They'd be happy to give us very favorable revenue shares."

Clear goals at last.

Toward the end, Charlie's voice grew soft as he pondered. This seemed like a good approach.

...

At noon that day, Charlie and Vera relaxed at the hotel pool, enjoying some entertainment. Etto and others also went their own ways to unwind.

The strong start gave everyone high spirits.

...

In the following days, multiple theater chains offered Mafia Distribution contracts matching their current assets.

Charlie worked hard during the day, handing out company flyers and giving speeches.

In evenings and late nights, he and Vera played around the Las Vegas Strip.

The company's distribution ability rose quickly, and Vera and Charlie's relationship deepened.

However, good spirits were slightly dampened on the last day.

...

In the public exhibition hall, Charlie and Etto happily wrapped up conversation with Hoyt Theaters' representative and said their goodbyes.

Not far off, a group clung to an AMC manager, earnestly almost pleading, "Sir, IMAX technology has to be the future mainstream of movie projections..."

Charlie noticed and tapped Etto's shoulder, "Go find out." Then smiling, he approached a plump middle-aged man, "Hey, Jimmy, have you made up your mind?"

Jimmy was the vice president of East Coast National Entertainment's theater division. He had previously been dismissive of Charlie's pitches and spent the last few days busy watching stars brought by several film companies, bothering some unknown actresses.

Corleone Entertainment's first event was poorly prepared, and this guy always avoided giving answers.

Jimmy blocked a woman a head taller than him, holding a wine glass and smirking. Hearing Charlie, he turned his head, raising it in annoyance, "Oh God, it's you again, so annoying. I've already told you I'm not interested in working with you."

Charlie's smile froze briefly, then resumed more brilliantly, "Oh really? Sorry, Jimmy. We've already been in talks with..."

Perhaps because the woman beside him looked Charlie over with interest, Jimmy annoyingly flicked his mustache and rudely interrupted, "Listen, kid, stay away from me! Our National Entertainment theater chain depends on the Big Six for 98% of ticket revenue! We won't expect independent distributors to make money, let alone a company like yours!"

*****

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