Calgary, Alberta, Canada.
"Eric, this is the most New Line Cinema can do. Let's both compromise."
Eric carefully read the contract and finally nodded.
"Alright, then let's do it this way. You've missed a good opportunity, so don't blame me later for not letting New Line Cinema get on board."
Bob Meyer smiled and shook his head: "Of course not. Actually, New Line Cinema doesn't have such big ambitions. We just want to do what we can."
"Eric, MGM's territory is spread too wide. New Line Cinema can't keep up with you, but I'm willing to compensate in other ways."
"That's a shame, but I still wish us a happy cooperation."
"Happy cooperation."
After signing his name on the contract, the partnership between MGM and New Line Cinema was officially established.
MGM sold the film adaptation rights for the hobbit to New Line Cinema, with an agreement to film a maximum of three parts over a period of six years.
Within six years, regardless of whether New Line Cinema filmed one, two, or three parts, MGM would reclaim the copyright.
New Line Cinema, in turn, had to grant MGM exclusive online streaming rights for all its film copyrights, though the most recently produced films would have to be released at least one month after their theatrical run.
The specific delay for each film would be negotiated individually, primarily to allow time for DVD sales.
Trash films with no potential for the video market could go online in half a month or a month, while classic epic blockbusters like the lord of the rings might be delayed by two or three months or even longer.
Additionally, due to not taking sides, New Line Cinema decided to make further concessions: 20% of the profit from each part of the hobbit would go to MGM.
Note that this refers to profit, not the box office that Eric mentioned at their last meeting.
Profit includes not only box office revenue but also extended earnings from film copyrights.
If calculated based on the high point of 1 billion US dollars, MGM would ultimately receive a share exceeding 200 million US dollars, tens of millions or even hundreds of millions more than simply sharing box office revenue.
In fact, Eric had also considered whether Lionheart Network should emulate video streaming sites, adopting the model of paid on-demand for popular single films, and the 12-second ads that even members couldn't skip.
However, after thinking it over, he still felt it was too disgusting. Such an approach would be too unpopular and would inevitably incur the audience's dislike.
Eric remembered that one viewer was enraged and sued for early on-demand access.
After an unknown amount of effort, including hiring lawyers and appearing in court, he eventually won, but was only compensated 1,500 yuan and half a month of premium membership.
What could 1,500 yuan buy? It's a joke.
And was it only one viewer whose rights were infringed? It infringed upon countless viewers and violated contract law.
Unfortunately, officials don't investigate unless reported by the public, and ordinary people don't have the leisure to file lawsuits. So, after winning, it took another one or two years for the cancellation of early on-demand access to finally be implemented.
If similar things happened in America, the final outcome would most likely be the same, just with more compensation and fines.
After all, they are major taxpayers. As long as you pay huge amounts of taxes, you can enjoy preferential treatment in most countries, except for peculiar ones like India.
But the loss of audience goodwill cannot be recovered, and doing so in the early stages of a startup is tantamount to suicide.
At that time, this matter also sparked widespread discussion in the industry. Everyone compared video streaming sites overseas and domestically, wanting to know who was really exploiting the users.
After data measurement and comparison, it was discovered that it was, in fact, the domestic ones.
Taking 2021 data as an example, the median disposable income for American residents was approximately 3885 US dollars per month.
The basic subscription fee for mainstream video platforms was around 7 US dollars, accounting for 0.2% of a middle-income American's monthly salary. The premium subscription fee was around 20 US dollars, accounting for 0.5% of their monthly salary.
In the same year, the median disposable income for residents was approximately 2497 yuan per month.
The ordinary membership fee for mainstream video websites was around 25 yuan per month, accounting for 1% of a middle-income citizen's monthly salary, which is 5 times that of America. The premium membership fee was around 45 yuan per month, accounting for 1.8% of their monthly salary, which is 3.6 times that of America.
Not only are the costs lower, but the service levels are also better. You can cast to your TV and enjoy high-definition quality. Isn't that infuriating?
Bob Meyer stood up and handed the contract to his assistant, who carefully put it into his bag. This stack of papers was worth who knows how many billions.
"Let's go, let's have dinner together. You left too quickly last time. I found a nice place in Calgary."
Bob Meyer waved his hand in refusal: "Next time, perhaps. I know your filming schedule is tight, so I won't delay you. I'll invite you to a party when you return to the country."
"So eager! You're not rushing back to prepare for filming, are you?"
"Hahahaha... I have to be responsible to the shareholders; they're still waiting for news."
"Alright then, in that case, I won't keep you. With the hobbit copyright, New Line Cinema can gallop ahead on the path of fantasy epic blockbusters."
Upon hearing this, Bob Meyer's raised foot suddenly lowered, and he asked with interest, "Eric, in your opinion, what is the prospect of epic films?"
Eric answered without hesitation: "Very promising. Before the lord of the rings, I was skeptical, but the birth of the lord of the rings shattered all doubts."
"It proves that as long as the story is compelling enough, audiences are very willing to pay, and you can also pick up a bunch of Oscars along the way. It's a perfect genre film that can integrate commercial art."
This answer pleased Bob Meyer: "That's my view as well—grand settings, grand stories, and grand productions are what bring in big box office!"
"Bob, so besides preparing for the hobbit, is New Line Cinema planning to film other epic movies?"
"We have that intention, but I need to keep it confidential."
Eric shook his head slightly: "Don't misunderstand, I'm not interested in New Line Cinema's secrets. However, since your company's focus is on epic blockbusters, why not sell some secondary IPs to MGM for development? Letting them sit there is a waste of resources."
"Hmm? What are you referring to?" Bob Meyer was momentarily stunned.
Eric held up three fingers: "The copyrights for a nightmare on elm street and Friday the 13th are both with New Line Cinema. I heard you also acquired the rights to The Texas Chainsaw Massacre."
"So, of the four major slashers, only the Halloween copyright remains. If you don't have the energy to manage it for now, why not let me handle it?"
Just a few words suddenly made Bob Meyer recall that in the past year or so, MGM had changed its style and indeed produced some horror and thriller films.
And these films were all successful, with box office revenues almost never below 100 million US dollars.
Especially the saw series, it was a super cash cow that made people envious.
Although the number wasn't very large, the quality was genuinely high, which indicated that the other party understood the horror film market and knew what horror fans wanted.
Since the millennium, several classic slasher IPs have actually been somewhat weak. After all, they had been rampant for decades, couldn't produce anything new, and audiences were indeed a bit tired of them.
Instead, horror figures like The Hills Have Eyes, Wrong Turn, and Chucky began to challenge the big brothers' positions.
It was only last year's freddy vs. jason that received relatively widespread praise from moviegoers, ultimately grossing 110 million US dollars at the box office.
However, the corresponding investment cost also soared to 30 million US dollars, while generally, such horror films could be completed with an investment of under 10 million US dollars. So, it didn't make as much money as imagined.
This high investment is the biggest constraint on filming horror movies, which is why, after 20 years, fans still haven't seen freddy vs. jason 2.
Thoughts flashed through his mind like lightning, and Bob Meyer couldn't help but think, if they handed the IP over to MGM, leveraging their strength to revitalize the major slashers on the big screen, it wasn't out of the question.
His small eyes gleamed: "Eric, if New Line Cinema gives the copyright to MGM, what do you plan to do?"
"Crossover, of course, we'll go with a crossover model."
"You know, Bob, I really like these guys. They look so cool hacking people on the big screen."
"Especially last year's freddy vs. jason, I even went to the cinema to support it. The crossover between these slashers is just too appealing."
"But just Freddy and Jason isn't enough. I want to see more, and I think audiences also want to see more slasher free-for-alls."
"If New Line Cinema gives the IP to MGM, I will try my best to secure more copyrights, and then make a slasher crossover blockbuster. That should be very interesting."
Bob Meyer shook his head: "Eric, I'm not optimistic about your idea. If you combine too many characters, how will the screen time be distributed? Have you considered that?"
"Actually, when we were filming freddy vs. jason, we also considered whether to include Leatherface, but we ultimately rejected it because we couldn't find a suitable place for him in the movie."
"If we forced him in, the effect would be very poor, and it would instead offend the fans."
Pushing his chair aside, Eric stood up: "Bob, that's what I should be considering. As the youngest Oscar Winner for Best Screenplay in history, you should have faith in me."
Bob Meyer shrugged: "Alright, I'll give it some serious thought."
After seeing him off, Nicole walked out of the adjacent room.
"Done talking?"
"Mm."
"Another collaboration achieved?"
Eric held her in his arms. These past few days, after finishing filming, he took turns comforting the two girls, and his body was getting thinner by the day.
Sigh!
This kind of life is truly too painful, who among my family understands!
"I can only say half a collaboration has been achieved. New Line Cinema isn't buying into my grand plans, and of course, other companies aren't either. Their choices are consistent."
Nicole's tongue explored Eric's body: "Mmm-hmm, they just don't have good foresight. I'll always be on your side, darling."
Eric let out a cold chuckle: "Bob Meyer's vision isn't necessarily bad, but under his leadership, I don't think New Line Cinema will be glorious for many years."
"Why?" Nicole was a little surprised.
"Because he's fallen into a trap, making the same mistake MGM made back then, which is being obsessed with big investments and big productions."
"In the 1950s, MGM came back from the dead with the massively invested Ben-Hur, and from then on, they committed to this model, plunging headfirst into the abyss of a major studio."
"the lord of the rings is to New Line Cinema what Ben-Hur was to MGM. Bob Meyer is now blinded and also believes in this outdated model."
"Back then, MGM's scale was much stronger than New Line Cinema's, and they still ended up selling themselves to Kirk Kerkorian. What's more, New Line Cinema? Let's see how many years its assets can sustain it."
"But didn't you give him the hobbit copyright?"
"Yes, but one the hobbit can't carry a company of New Line Cinema's caliber. At most, it will allow Bob Meyer to struggle for another year or two."
"When he eventually runs the company into the ground, I wouldn't mind joining the acquisition army. New Line Cinema's film library still has quite a few good things."
According to the development of the original timeline, New Line Cinema ultimately collapsed under this model.
After the lord of the rings, it went downhill. Within a few years, almost all the films it invested in suffered setbacks, and the money earned wasn't enough to cover the losses.
Finally, after the disastrous failure of The Golden Compass in 2007, New Line Cinema officially ceased to exist and was acquired by Warner Bros.
And it had only been three years since the lord of the rings swept the Oscars. In just three years, Bob Meyer had run a very promising company into the ground. It's hard to say whether to praise him or criticize him.
Eric had seen The Golden Compass because Nicole was the lead actress, but she was criticized for her poor acting, completely lacking the standard of an Oscar Winner.
Coupled with other reasons, the film's North American box office ultimately reached only 70 million US dollars. Compared to its production cost of 180 million US dollars and marketing cost of nearly 100 million US dollars, it was a huge loss.
The overseas box office, however, was strong, bringing in 300 million US dollars. But New Line Cinema's overseas distribution had not yet escaped the constraints of major companies, so Warner Bros. was responsible for it, and most of the money earned overseas went into Warner Bros.'s pockets.
As a result, New Line Cinema never recovered.
It died!
When that day comes, Eric will certainly add fuel to the fire. Even if Warner Bros. has shares in New Line Cinema, he can try to buy Bob Meyer's shares.
That old man has always maintained New Line Cinema's independent operating rights by relying on his 21% stake, which is more than Warner Bros.'s share.
"Change people! Quick, change people!"
Amidst the snow-capped peaks of the Rocky Mountains, Eric directed the set operations.
The main actors stepped down, and stunt performers took their places. The next scene to be filmed was an avalanche.
With the approval of the local government and calculations by relevant experts, the crew had already pre-buried a considerable amount of explosives on the mountaintop. With a single command, a small avalanche could be created.
This scene had been rehearsed many times, but it was still a very dangerous one, and Bale didn't dare to suggest going on set himself.
All non-essential crew members had already evacuated down the mountain, and the stunt performers were ready to give their signals.
Eric walked into a temporarily rented helicopter, with cameras mounted inside.
There were two other helicopters with the same setup, as this scene would likely only be filmed once, so it was crucial to capture it from multiple angles and camera positions.
After carefully checking everything and confirming it repeatedly, an order was given.
"Inception, take..."
Boom!
After a loud bang, the mountain forest seemed to shake.
Rolling white snow from the mountaintop transformed into a raging giant wave, rushing downwards!