Hollywood starts with a broker

"Aaron, Village Roadshow Entertainment in Australia is willing to acquire the Australian distribution rights for 'Phone Booth,' but they're only offering $1.5 million!"

It was late April when Aaron had returned to Los Angeles and received a call from Nicole Kidman in Australia.

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"Accept their offer, and have them come to America as soon as possible. 'Ghost' is about to start filming," Aaron said, sitting lazily in his office at Dawn Pictures.

"Okay," Nicole Kidman replied excitedly over the phone.

After hanging up, Jessica Parker entered the office and said, "Come on, 20th Century Fox is calling again!"

Aaron shook his head, "'Phone Booth' has already grossed $31 million at the North American box office. Even if it doesn't reach $40 million by the time it finishes its run, it won't be far off."

"They think $7 million is too expensive for the video and television broadcast rights, even though the movie has good reviews?"

Look how happy PolyGram is making money. The international box office has already exceeded $15 million. PolyGram only spent $1.6 million to buy the European rights!

"Uh, 20th Century Fox is only willing to offer $6 million."

Aaron tapped on the table. He had brought back $15.5 million from New York, and with the $1.5 million that Nicole Kidman would soon bring back, that would be $17 million in total.

The North American box office revenue for 'Phone Booth' hadn't been settled yet, and selling the video and television rights would bring in several million more!

"Offer it for $6.5 million. Although 20th Century Fox has the right of first refusal, I believe other film companies would be willing to pay that price. If they don't agree, we'll contact other companies."

"Also, have 20th Century Fox settle the box office revenue as soon as possible."

For the first $15 million, 20th Century Fox would take a 20% distribution commission. The theatrical split for 'Phone Booth' was 50/50, leaving $4.5 million after the commission.

For the portion between $15 million and $30 million, 20th Century Fox would take an 18% commission, leaving Dawn Pictures with $4.8 million.

Of the first $30 million in box office revenue, Dawn Pictures only received $9.3 million. 20th Century Fox also spent $3 million on marketing and $4 million on prints, administration, transportation, taxes, and other costs.

After deducting that amount, Dawn Pictures' profit was only $2.3 million. As for the profit from box office revenue exceeding $30 million, it was estimated to be a little over a million dollars.

"20th Century Fox, how much have you screwed me over?"

Aaron cursed a few times. How could he cooperate with them in the future? They were ripping him off too much!

If it weren't for the international distribution rights, as well as the video and television broadcasts, he would have almost lost money just relying on the North American box office?

A few days later, 20th Century Fox wired $8.8 million to Dawn Pictures' account, including the revenue share from $30 million in box office receipts and the rights fees for video and television broadcasts.

Adding the $1.5 million in cash from Village Roadshow Entertainment in Australia, Dawn Pictures now had $25.8 million in its account, more than enough to develop 'Ghost'!

For 'Ghost,' Aaron specifically allocated a budget of $20 million, and reserved $1 million as a contingency in case of any unexpected events. After all, it was the first "high-cost" project he was producing.

In May, 'Pretty Woman' and 'Teenage Mutant Ninja Turtles' both surpassed $100 million, but 'Pretty Woman' clearly had more staying power.

New Line Cinema, as an independent distributor, also greatly increased its reputation, and Disney also fought a good battle with 'Pretty Woman'.

At the Roosevelt Hotel in Hollywood, Disney specially held a celebration banquet for 'Pretty Woman.'

Not only did 'Pretty Woman' break $100 million in North America, but it was also impressive overseas. After only three weeks of release, the overseas box office had already reached $150 million!

The film's director, Garry Marshall, and the male and female leads, Al Pacino and Julia Roberts, were all radiant.

Jeffrey Katzenberg, chairman of Disney Studios, was also beaming.

"This is Disney's reward for you!"

Jeffrey Katzenberg handed Aaron Anderson a check for $500,000.

"Thank you," Aaron said, accepting it calmly. The news he and Warren Beatty had created had also helped promote the film.

"Aaron, I heard you're developing a fantasy romance film with a $20 million investment?"

"Yes, filming starts next month!"

"That's great. You can choose to submit projects to Disney in the future," Jeffrey Katzenberg said, then looked at Nicole Kidman, who was next to Aaron.

"I won't disturb you young people."

After Jeffrey Katzenberg left, Aaron handed the check directly to Nicole Kidman, "Here, go spend it?"

Nicole Kidman rolled her eyes at the man, but still took the check. After all, Aaron Anderson was now a multi-millionaire!

"The crew has completed preparations and will start filming next month. The indoor scenes will be shot at Sony Pictures Studios in Culver City, and the location shots will be in Chicago."

"During this time, you need to go and start rehearsing with the cast and crew."

Aaron pinched Nicole's waist.

Nicole Kidman nodded, "Yes, I know. It's just that I have to go to Cannes for the film festival in the middle and late part of the month."

"'Wild at Heart' has been nominated for the Palme d'Or in the main competition at Cannes!"

Then, she leaned over and kissed Aaron on the cheek, "Want to go together? Cannes is your lucky place."

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Aaron smiled, there was some truth to that, "I'll see when the time comes."

Afterwards, Aaron ran into Al Pacino and chatted for a while, "Has 'The Godfather Part III' finished filming?"

"It just wrapped up, and is now in post-production. Paramount is planning to release it during the Christmas season!"

Al Pacino then smiled and patted Aaron on the shoulder, "You're really amazing, kid. A movie filmed with less than $2 million has actually achieved such high box office results?"

"Moreover, this 'Pretty Woman' is also a phenomenon. I'm glad I listened to you!"

Aaron's lips curled up, "I'm really looking forward to the release of 'Dick Tracy' next month."

Currently in Hollywood, less than ten films each year break $100 million at the North American box office. 'Pretty Woman' and 'Teenage Mutant Ninja Turtles' are both projects with budgets below $15 million.

They are typical examples of small investments yielding big returns, and judging by the momentum of 'Pretty Woman,' it can compete with last year's blockbuster 'Indiana Jones and the Last Crusade'!

Aaron didn't see Disney CEO Michael Eisner attend the celebration banquet at the Roosevelt Hotel.

However, he did see Disney's Group President Frank Wells appear.

"Interesting," Aaron seemed to sense the internal power struggles within Disney.

No one believes that 'Dick Tracy' will have higher box office revenue than 'Pretty Woman'. Warren Beatty's scandal has had an impact, and Michael Eisner's estimate is that he'll be lucky to break even.

And Jeffrey Katzenberg's 'Pretty Woman' was a resounding success!

As for Aaron Anderson's bet last year that 'Dick Tracy' wouldn't earn half of 'Pretty Woman's' box office, no one took it seriously.

But now, that possibility is very high, which would make Warren Beatty even more ashamed.