From Flower Vase to Film Emperor in Hollywood
#245 - Weighing the pros and cons
Indeed, Anson, with two lifetimes of experience, possessed advanced knowledge and a broader, more distant perspective. He could foresee the future in ways that Sony Columbia and William Morris couldn't.
However, Anson also had his blind spots. His understanding of the film market stemmed from 2023, and his concepts were already twenty years ahead. He could easily overlook the fact that it wasn't 2023.
Anson overlooked a very important thing:
In 2000, why wasn't profit participation the preferred choice for actors and agents?
Was it because they didn't want to increase their income? The answer is, of course, no.
The correct answer is the capacity of the film market.
Ten or fifteen years later, the North American film market would enter a prosperous era, with numerous films grossing $300 million in North America and $1 billion worldwide. But at the moment, the North American film market was still in the "$100 million era"; a film grossing over $100 million in North America was already a huge success.
Considering this background, profit participation wasn't so attractive.
Secondly, because the scale of the North American box office market was still in the "$100 million" range, the profit participation numbers for actors and producers were also obvious.
Even if the base for profit participation was the North American box office number instead of the box office profit, then a 10% share would only be a mere ten million dollars.
The rest is a math problem:
Is it better to choose a flat rate of "$20 million club," or to take on the huge box office pressure and risk of a final "base salary plus ten million dollars"?
The choice isn't difficult.
Here, there's another detail: is 10% the maximum profit participation for actors and producers?
Generally speaking, yes, it is.
The reason is very straightforward. A film's box office revenue often needs to be divided: 40% for the production company, 30% for the distribution company, and 30% for the theaters.
Of course, the specific numbers may fluctuate depending on the specific situation. Negotiations between the three parties may yield different results for different projects and works, but overall, that's roughly how it is. The Hollywood Big Seven film companies often handle both production and distribution, so their profit income is higher.
Here, the portion of the profits shared with the director, actors, writers, and producers comes from the production company's 40%, so naturally, it can't exceed a certain limit.
However, there are exceptions.
Tom Cruise's "Mission: Impossible" series saw him rejecting big-name directors and supporting actors, taking on the role of producer himself, ensuring that he was the absolute core of the entire crew, with no one else to share his profit participation. He used this to negotiate, and although he basically didn't take much of a salary, his final profit participation almost took away 40%.
Later, Paramount discovered that they were earning less from producing and distributing "Mission: Impossible 4" than Tom Cruise was, as if the film company was working for the actor. In a fit of anger, Paramount shut down the entire project, refusing to work with Tom Cruise, and Tom Cruise himself stubbornly walked away.
It wasn't until three years later, when Tom Cruise's career was in a slump, with four consecutive films flopping, both in terms of box office and word-of-mouth, and Paramount was also in dire straits, with consecutive losses, that the "Mission: Impossible" series was relaunched, and the two sides sat down at the negotiating table again.
Let's bring the focus back.
Precisely because of this, at this stage, almost no agency is actively pushing their actors to fight for profit participation. The "$20 million club" is their ultimate goal, and actors, media, film companies, and industry insiders all use the "$20 million club" to measure industry position.
In Edgar's view, he didn't think he could get Anson a 10% profit participation, or even 5%, and the deal wasn't worth it.
Not only might the salary number not be high, but they would also have to bear risks and pressure.
Anson is a newcomer. Edgar being optimistic about his prospects is one thing, but in the eyes of the Hollywood industry, Anson still hasn't proven his box office ability is another.
If they pursued profit participation, not to mention if the film failed, even if the film was successful, but didn't break $200 million in North America or achieve unexpected amazing success, Anson, such a tender newcomer, would find himself in an awkward position in the industry, which wouldn't be a good thing for future development.
Anson could sense Edgar's concerns.
He thought for a moment, especially about the key phrase "$200 million box office," and immediately realized his blind spot, and couldn't help but chuckle.
But Anson couldn't tell Edgar: Hey, buddy, trust me, the movie is 100% going to be a success—
Like a madman, blindly confident for no reason.
Moreover, Anson and Edgar had only just started working together. Trust needed to be built up gradually, otherwise, this cooperative relationship would be completely vulnerable in the face of absolute interests.
After thinking for a while, Anson said, "Captain, we should approach it from a different angle."
"We shouldn't say we're fighting for profit participation, but rather that we're advancing and retreating together with the project."
"Look, I'm full of confidence in the project and 100% invested in it. I'm willing to lower my salary, although not by much, but enough to ensure that every bit of production cost is used wisely. In return, I want to share the risks and rewards with the project through profit participation."
"I'm willing to advance and retreat together with the crew."
By slightly adjusting the purpose and intention, Anson's position and attitude became completely different.
Regardless of whether the film succeeds or fails, Anson's image and reputation in Hollywood will be established:
If the film succeeds, it shows that Anson has unique vision; if the film fails, at least they can spin it to show that Anson has done his best without reservation, reducing the responsibility that Anson, as the male lead, needs to bear.
In this way, the whole situation is completely different.
Edgar's eyes lit up, "Just like John Travolta starring in 'Pulp Fiction'."
Anson nodded slightly.
But..." Edgar looked at Anson again, "So, we're really not fighting for a higher salary?"
"Anson, in Hollywood, the salary threshold is very important. Whether you're in the three-million-dollar range or the eight-million-dollar range, those producers and directors will look at you completely differently."
"I'm thinking, maybe we should seize this opportunity. Even if it's your first time taking on the lead role, you should establish your position through your salary."
An agent, after all, has an agent's considerations.
Anson agreed, but his view was slightly different, "As you said, this is my first time taking on the lead role. Even if we get a salary of five million or even eight million, what do you think will happen next?"
"If the movie fails, then even the highest salary number is meaningless, and everything starts from scratch."
"But what if the movie succeeds?"
First update.
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