Chapter 94: Chapter 94: Contract Issues
[Chapter 94: Turns Out It Was My Own Cocoon]
All the way there, Eric racked his brain on how to explain things to Barry Diller. At the celebration party for Pretty Woman, they had already discussed the next film, which had almost confirmed that Fox would release it during the summer schedule.
Now, suddenly changing course, it was hard to predict how Fox would react. If possible, Eric didn't want to make enemies with any film moguls; he simply didn't have enough strength yet, and facing any backlash could seriously damage him. Not to mention, Fox held the distribution rights for three of his films, which involved hundreds of millions in profits. Caught in his turmoil, Eric even accidentally ran a red light but was fortunate that nothing happened.
Finally reaching Fox's headquarters, Eric stated his identity and was swiftly guided to Barry Diller's office door.
"Mr. Williams, please wait a moment. Mr. Diller is in a meeting," Barry Diller's secretary led Eric into the waiting area, carefully bringing him a cup of coffee.
Curious, Eric glanced at the door to Barry Diller's office. The soundproofing was excellent, and he couldn't hear a thing. The young and pretty secretary noticed Eric's curiosity, hesitated for a moment, and whispered, "Fox Television's manager."
Eric raised an eyebrow, throwing a grateful glance at the young woman, who had managed to share valuable insight without really saying much at all. Moreover, as she leaned down, whether intentionally or not, her name badge caught Eric's eye, making it hard for him to forget.
After patiently waiting for seven or eight minutes, a middle-aged man walked out of the office, looking utterly dejected. Spotting Eric sitting on the sofa in the waiting area, he quickly hid his disappointment, nodded politely to Eric, and left in a hurry.
"Mr. Williams, you can go in now."
...
Eric walked into the office, and a faint smell of smoke wafted through the air; Barry Diller's ashtray was piled with several cigarette butts.
"Eric, sorry to keep you waiting," Barry Diller had already masked his earlier emotions upon Eric's entrance, but Eric could still detect traces of anger on Diller's face.
"It was only a few minutes." As Eric spoke, he moved to take a seat on the opposite sofa at Barry Diller's invitation.
Barry Diller didn't explain anything, but connecting the dots on the guy who had just left, Eric guessed the reason for Diller's outburst -- Fox's television ratings hadn't been great. For years, ABC, NBC, and CBS had dominated the North American broadcast market, and it wasn't likely that a newcomer would easily shake their status.
In this regard, Barry Diller indeed was a media genius; under pressure from the big three networks, he managed to develop Fox Broadcasting into the fourth-largest network in North America.
After some small talk, Barry Diller finally inquired about Eric's business.
Not having come up with any soft-spoken approach, Eric laid it out bluntly: "Mr. Diller, I'm afraid my next film can't be released by Fox."
Barry Diller double-checked that he heard correctly, furrowing his brow and squinting his eyes. He had just received some bad news from the manager of Fox Television, and now here was another blow.
"Eric, are you trying to breach the contract? Have you thought about the consequences of doing so?"
Now that the matter lay on the table, Eric gazed steadily into Barry Diller's eyes and answered, "Mr. Diller, I'm not looking to breach the contract. The agreement doesn't prohibit me from collaborating with other film companies, nor does it specify definite release dates for the three films, so as long as I deliver the three films to Fox by the end of the year, I will have fulfilled my obligations."
Barry Diller momentarily froze, a hint of regret surfacing.
He personally had overseen that contract being signed. The oversight allowing Eric to collaborate with other companies was indeed a mistake on Fox's part. Most of the attention during the drafting phase had been focused on the details of Home Alone. Furthermore, Eric had agreed to three films, and few directors in Hollywood managed to churn out three a year. Those who could consistently deliver one film a year were considered prolific. Who would have thought that this young man had such abundant energy?
However, the lack of a specified release date had been a deliberate oversight by Barry Diller. When drafting the contract, Fox had not been enthusiastic about the other two films Eric wanted to bundle, so although Eric had pressed the issue of scheduling, hoping to allocate all three films to prime holiday slots, Fox had ultimately rejected him for various reasons.
Fox had its own plans. If Eric's first two films flopped, they could comfortably place them in slower seasons like spring or fall, which wouldn't strain their resources too much while still honoring the contract.
Who could have foreseen that the following film, Pretty Woman, would become a smashing success, rendering any arguments down to luck or anything similar irrelevant? Many movie fans now eagerly anticipated his next film.
In the currently tense atmosphere of the office, after Eric's declaration, Barry Diller realized he had foolishly thought himself clever for denying Eric's release date requests, now confined to a tight spot of his own making.
"Eric, can't you be satisfied with a thirty-five percent cut? The budget for Pretty Woman was only $7 million. If you deduct the $1 million for Lamborghini's ad sponsorship, the actual cost of the film was just $6 million. Yet, Fox has spent over $15 million on promotion, two and a half times your film's budget, two and a half times! And we're only taking twenty percent of the profits. What else could you possibly be dissatisfied with?"
By the end, Barry Diller spoke with a voice nearly bordering on a roar, exuding an imposing demeanor. He had just returned from Europe the night before, exhausted from days of travel, and had barely got any sleep. Early that morning, he had also heard news about one of Fox's new shows being brutally attacked by the big three networks, crashing in ratings.
Having just scolded the manager of Fox Television and booted him from the office, he found himself facing yet another piece of bad news. The anger he had just managed to suppress erupted again.
However, Eric wasn't intimidated by Barry Diller's demeanor; he calmly rebutted, "Mr. Diller, while Fox has put in $15 million, it made over $80 million. Therefore, I don't owe you anything. Honestly, I've been quite anxious about coming here. I don't want to have a falling out with Fox; I just want to have a good discussion."
Seeing that the young man opposite him wasn't scared off and didn't respond with youthful bravado, but rather handled him calmly with a well-structured argument, Barry Diller quickly regained his composure and realized that his ability to control his emotions was lacking compared to that of a not-yet twenty-year-old. After some introspection, Barry Diller settled back into his chair, took a few deep breaths, still locking his eyes on Eric. "Alright, Eric, do you have any new conditions? Let's hear them."
Eric realized then that Barry Diller hadn't fully grasped his meaning and clarified, "Mr. Diller, I'm not looking to revise the contract. What I just said isn't an attempt to leverage more benefits from Fox. Someone has made me an offer that I could not refuse, seeking the distribution rights for my next film."
Barry Diller, having navigated Hollywood for many years, quickly considered the possibility as he calmed down and asked, "Columbia?"
Eric nodded.
Barry Diller bowed his head in silence, lighting a cigarette. Since Columbia had managed to sway Eric, it signaled that their offer was something Fox simply couldn't match. Right now, Columbia was doing everything they could to boost their stock price and extract more profit from the Japanese. During such a time, it wouldn't be surprising if the other side offered wildly enticing conditions to secure Eric's next film.
*****
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