I am Hollywood

[Chapter 942: It's Time to Spit It Out]

Surprising everyone, after a $23.1 million opening day, the momentum for Rush Hour 2 continued into the weekend. On Saturday, the single-day box office hit a new high of $24.34 million, and Sunday saw only a 19% drop with another $19.95 million collected. In just three days, Rush Hour 2's opening weekend gross reached an impressive $67.4 million.

This box office number not only easily surpassed the competition during Thanksgiving, like Monsters, Inc. and Night at the Museum 2, but it also left the concurrently released Starship Troopers far behind. In contrast, Sony Pictures' big-budget special effects production, which cost $110 million, only managed to rake in $22.05 million over its opening weekend -- less than Rush Hour 2's first day earnings.

The result baffled everyone. No one expected Rush Hour 2 to become such a massive hit overnight, and even fewer anticipated the dismal box office performance of Starship Troopers, which had received much better reviews than the marginally successful Rush Hour 2.

Initially, Sony planned to release Starship Troopers ahead of Firefly's Jurassic Park 3 to compete directly with it. However, from the moment it hit theaters, it felt like a misstep. Unlike Rush Hour 2, which had a slight 19% decline on Sunday, Starship Troopers saw a staggering 34% drop after making $8.3 million on Friday and $8.28 million on Saturday, with only $5.45 million left on Sunday.

Entering the workweek, Starship Troopers' daily earnings plummeted even further, with a 61% drop to just $2.1 million on Monday. Comparatively, Rush Hour 2 saw a 51% decrease from Sunday but still garnered an impressive $9.47 million, far exceeding any single-day total from Starship Troopers' opening weekend.

To figure out what was going wrong, Eric took the time to watch Starship Troopers. He discovered that while the plot was technically sound and the special effects were exceptional, the combination left audiences with a disconcerting sense. It lacked any enjoyable or uplifting elements and felt heavily preachy instead. Despite media claims that it was a satire on fascism, most people were clearly uninterested. Additionally, during the Christmas season, viewers were more inclined to seek entertainment rather than heavy-handed themes, making Starship Troopers seem even out of place. Despite critic praise, the film suffered at the box office.

In contrast, Rush Hour 2, while not featuring a groundbreaking plot compared to its predecessor, resonated greatly with audiences. This comedy-action film that blended martial arts and humor was well-received. The opening weekend haul of $67.4 million surpassed all expectations, and when the Monday earnings of $9.47 million came in, it became apparent to many that Rush Hour 2 might be on track to become one of the highest-grossing films of the year, potentially even the only film to break the $100 million mark in its first week.

While it would be no surprise for the forthcoming Jurassic Park 3 to hit that milestone, considering the first two installments broke $100 million in their openings, it was simply astounding that such recognition would fall upon Rush Hour 2, a film initially expected to gross only slightly over $100 million domestically.

...

In Burbank, Los Angeles, at Firefly's headquarters, Bill Mechanic hesitated to exit the car even after the driver parked. The driver and assistant in the front seat knew better than to rush him. They were aware that Bill's mood had been rather dismal in recent days.

As the vice chairman of Sony Pictures and CEO of Columbia Pictures, Bill Mechanic found himself in a position far removed from the carefree days of Peter Guber and John Peters running Columbia. The company's performance was declining even further compared to when Guber was at the helm.

From summer through Christmas, Sony had attempted to launch two special effects franchises -- Godzilla and Starship Troopers -- both of which met with utter failure. Bill had once made a name for himself at Disney, where he had been the head of Disney's home entertainment division. At the time, he proudly held a position among the industry's elite, comparable to Jeffrey Katzenberg at Firefly and Michael Eisner at Universal.

However, he now often regretted accepting this job. Had he remained at Disney, he believed he might have been at the vice president level at Firefly by now, and perhaps even contended for the presidency once Frank Wells retired. Being president of Firefly could be seen as no less prestigious than leading Columbia Pictures today.

After procrastinating in the car for a while, Mechanic knew he had to get out as his meeting time with Katzenberg approached. The ongoing failures of Godzilla and Starship Troopers had Howard Stringer, Sony's U.S. CEO, feeling the heat. Sony Pictures was on a path of continued losses, and Stringer knew they needed a project that could turn things around quickly.

Consequently, the earlier collaborations between Columbia and Firefly like Men in Black, Jumanji, and Mr. & Mrs. Smith became the best options for reversing Sony's fortunes. Especially with Men in Black, which had significant popularity and a solid box office guarantee, it was crucial to pursue.

While Sony Pictures produced and released around a dozen films per year, the 80/20 rule was glaringly evident in Hollywood; 80% of profits came from just 20% of the films. If they could get Men in Black 3 off the ground, even if Sony's profits only comprised 40% of the proceeds, this would help ensure that the company's performance during the following year or two wouldn't look too grim.

...

Katzenberg didn't come out to greet his former colleague. Mechanic didn't expect this, knowing Katzenberg's character well. He stood outside Katzenberg's office with his assistant, five minutes from their scheduled time.

As he waited in the lounge, observing the flurry of activity from Katzenberg's various assistants and secretaries, Mechanic couldn't help but feel a twinge of envy. He chuckled to himself in self-deprecation, thinking that even if he were to hire four or five assistants like Katzenberg, Sony Pictures likely wouldn't have that much work for them.

Currently, Firefly had grown into a corporate giant far larger than the entire Sony conglomerate. Last year, Wall Street had valued Firefly at $85 billion, with an inevitable substantial increase projected for this year. The overall Sony Group's market value hadn't yet broken the $70 billion mark, while Sony Pictures was considerably less than one-tenth of the entire company's valuation.

"Mr. Mechanic, you can go in now."

Lost in thought, Mechanic quickly stood up at the sound of an assistant's voice, nodded, and walked into Katzenberg's office.

Upon seeing Mechanic enter, Katzenberg, who had been on the phone, put down the receiver and approached to shake his hand. "Sorry about the wait, Bill, it's a busy time of year."

"No problem," Mechanic said warmly, shaking his hand before they settled into the sofa in the meeting area.

Coffee was promptly served by the secretary, who then quietly stepped out of the office. Understanding Katzenberg's style, Mechanic wasted no time and took a symbolic sip of coffee before diving straight into the matter. "So, Jeffrey, what do you think about the proposal I mentioned during our last call?"

To facilitate the production of Men in Black 3, Sony had promised a $50 million promotional budget and reduced their cut from 15% to 13%, which was merely a starting point. Stringer and Mechanic's private bottom line could even go as low as 10%.

By making these concessions, Sony Pictures might not see profits from the box office but would secure guaranteed income from video sales and broadcast rights later. When it came to the comprehensive operations of the summer release Godzilla and the still-running Starship Troopers, they were uncertain whether they could even recoup the initial costs.

However, when Mechanic stated his proposal, Katzenberg just shook his head. "Bill, Firefly doesn't care about Sony's concessions on the distribution split; you know we have greater concerns."

Mechanic understood that what mattered more to Firefly was controlling the production cost of Men in Black 3. Over the last few years, with the rise of Chris Tucker from the Rush Hour franchise and the other two stars from the Bad Boys series, Will Smith was no longer the hot commodity he used to be.

Nonetheless, in terms of Men in Black, Smith showed no sign of backing down on his salary demands, insisting on a $20 million base salary and at least 10% of the box office. Tommy Lee Jones, the other lead actor, likely had similar demands.

If not for Firefly's restraint, to push this project through, Sony wouldn't hesitate over the requested salaries for the two stars. After all, Sony Pictures had few better options. Compared to the films like Godzilla and Starship Troopers -- projects that could likely flop -- Men in Black had a far lesser risk of losses.

Mechanic hesitated for a moment, but with a small flicker of hope, said, "Jeffrey, if Firefly is concerned about high costs for Men in Black 3 impacting profits, Sony can pay a licensing fee, then take full responsibility for the production. Would that work?"

"Bill, Firefly will not relinquish the rights to produce the Men in Black series. Also, if quality can be assured, Firefly won't skimp on the budget," replied Katzenberg. "Ultimately, this boils down to controlling the actors' salaries. Since Jim Carrey earned his first $20 million from Sony with The Cable Guy, Hollywood salaries have gotten out of hand in recent years. A significant part of that issue lies with Sony."

"Jeffrey, I disagree. The rise in Hollywood actor salaries generally stems from the expansion of the global film market. Companies can't be reaping huge profits while denying actors their fair share."

Katzenberg chuckled. "Bill, I think your argument is flawed. Moreover, the average income of Hollywood actors hasn't increased significantly in recent years. The major increases go to that tiny pool of top stars. That alone indicates your argument doesn't hold water. In conclusion, while we cannot control what other studios do, within the scope of Firefly, the highest fees for major actors are capped at $20 million, with a fixed salary not exceeding $10 million if they want a percentage and the profit share limited to 10% of worldwide box office revenue -- that's the rule. If you can persuade Will Smith and Tommy Lee Jones to accept such salary conditions, we can greenlight this project anytime."

Mechanic grimaced. "Jeffrey, that's impossible. Will Smith and Tommy Lee Jones won't budge, not even if you drag out negotiations for five years and secure the rights to the Men in Black series. Neither of them is lacking for offers."

"Not just them," Katzenberg replied, wearing a knowing smile. "In the future, this will apply to all top-tier stars. If they continue to demand unreasonable salaries, their opportunities will inevitably diminish."

Mechanic initially didn't grasp the deeper implications of Katzenberg's words, instinctively countering, "I still don't think that's the case. Even if they don't find work, do you think these people need the money?"

"Hollywood doesn't lack for actors. Even if they walk away, new stars will rise to take their place. Besides, it's not just about money. Take you, for instance. I believe you're not lacking for funds at this point, right? But if you had to abandon everything in Hollywood to live a retired life right now, do you think you could endure that?"

Mechanic fell silent, unable to respond, but deep down, he knew he couldn't give up all that he had at the moment.

Hollywood stars were likely the same. Accustomed to being in the spotlight, adored by fans, and enjoying the accompanying perks, the thought of suddenly surmounting that adversity -- having no one to praise you or shower you with attention and the women who once were drawn to you no longer giving you the time of day -- meant they'd most likely go insane, even if they had plenty of money.

Shaking his head, Mechanic said, "But, Jeffrey, your ideas just aren't feasible. Hollywood isn't just about Firefly."

"One step at a time, it is always possible," Katzenberg replied with a smile, his gaze fixed intently on Mechanic. "And look -- Rockefeller Center, which the Japanese bought, has now been sold back, and not to mention Universal Pictures, which they also returned. There are plenty of instances like this. So, with Sony having taken Columbia Pictures, it's about time they should be returning it as well."

*****

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