章 747: Chapter 748: The Problem
[Chapter 748: The Problem]
As Cindy Crawford approached the door leading to the backyard, she glanced back and saw Eric and Terry Semel deep in conversation. She pushed the door open and stepped outside.
It was just before noon, and the deep autumn sun bathed the spacious estate with its light. The temperature had dropped below 68°F (20°C) by the end of October, and even the sunlight seemed pale and listless due to the cooler air. Although the lawn and surrounding shrubs that served as a fence were evergreen, there were still patches of withered leaves, detracting from the lively atmosphere.
Cindy wasn't fond of this chilly environment, but she looked up at the low autumn sky. A few white clouds drifted behind a breathtakingly bright blue, and it seemed that if she gazed over the nearby fence, she could see the horizon. This expansive view inspired a feeling of uplift in her heart, prompting Cindy to lazily stretch her body. She asked the maid who was clearing leaves by the fence where Joanna was headed and then walked across the lawn toward a spot where a few vibrant red maple trees grew by the seaside.
Joanna was sitting beneath one of the maples, a thick book resting on her lap, surrounded by two small figures who appeared to be collecting leaves.
When she noticed Cindy approaching, Joanna waved and smiled. She then took a maple leaf that Kevin handed her and patiently discussed it in a low voice with the little ones, sliding it into the book on her lap.
It was still before 11 a.m. Cindy didn't rush to relay Eric's instructions but instead took a seat beside Joanna, admiring the trees. "These maple trees are beautiful. Are they maples? The trunks seem different from the ones I've seen before."
Joanna nodded, pointing to several small holes in the tree trunk. "They are sugar maples. In spring, you can collect the sap to make maple syrup."
"Oh, so that's what a sugar maple is," Cindy said, realization dawning on her as she examined the small holes in the trunk. She appreciated that maple syrup was low in sugar and didn't easily cause weight gain, making it a favorite among women. She frequently enjoyed it but had never recognized the tree that produced it until now.
"We still have some freshly made maple syrup at home. You can try it at lunchtime," Joanna said. Just then, Hawaii ran over holding a leaf, while Joanna took the leaf from her daughter, examined it, and said softly, "Sweetie, this leaf seems to have some bug marks on it. Look at those spots; it doesn't look nice. Why don't you find another one?"
Hawaii looked where her mother pointed, still curious. "Mom, why do bugs leave those marks on the leaves?"
Joanna recalled that the marks were likely from secretions left by bugs that had damaged the leaves. She explained it gently in a way Hawaii could understand, sending her off to explore again.
Cindy had been listening to Joanna and once Hawaii trotted away, said, "Joan, you really have a lot of patience."
Joanna smiled, her gaze tender as she watched her little one gathering leaves, as if looking at the whole world. After a moment, she asked Cindy, "How did things go with Eric?"
Cindy nodded with a relaxed expression. "I plan to produce another season in the spring, and he's already agreed."
...
Since she had specifically come to visit, Cindy had a real reason - she wasn't just passing by. With the viewership ratings for America's Next Top Model climbing, she found herself a bit anxious.
When she first secured this project, Cindy had her private accountant calculate her potential earnings under a 10% profit-sharing contract. According to the accountant's calculations, the ratings threshold needed for her to earn more was around 1.5 million viewers, which matched what Lifetime expected. Below that mark, she'd only receive the guaranteed salary of $800,000, something she had negotiated pridefully during the contract drafting. Other people in the industry were unprepared and didn't have any guaranteed salary clauses. If the ratings fell short and the project didn't turn a profit, those months of work would feel wasted.
But now, that same contract made her feel trapped.
In strict business contracts, rights and obligations were always reciprocal. Thanks to that guaranteed salary clause, Lifetime included a stipulation for renegotiation of compensation for the second season. This was a condition set by Lifetime to ensure continuation of the program; essentially, if the ratings didn't skyrocket, they hoped Cindy would return at a lower salary. Unofficially, they had already come to a mutual understanding of a $500,000 intent.
In a casual chat with Linda, Cindy had expressed that she would be satisfied with a $3 million profit share from America's Next Top Model, which she found to be a more realistic figure after working in television for a few years.
To pull $3 million from this project, the show needed at least 2.5 million viewers. Given that Lifetime had previously struggled to reach even 1 million, Cindy had not been overly hopeful for this goal.
But now, the ratings results for both shows had far exceeded anyone's expectations. For the most recent episode of America's Next Top Model that she was responsible for, the peak viewership reached 4.6 million, and with Lifetime's growing subscriber base and the program's continued popularity, it was anticipated that the peak viewership could even exceed 6 million, with an average of no less than 4.5 million for the entire season.
According to the price floating contract signed between Lifetime and advertisers, an average of 30 seconds of advertising during the 1.5 million viewership would cost $50,000. An average viewership of 4.5 million would triple the advertisement price, generating $60 million in revenue just from advertising alone. With additional profits from syndication, DVD sales, and other ventures, the revenue would surely top $60 million. A project costing $20 million to produce could ultimately yield $120 million.
After deducting the production costs, the net profit would be no less than $100 million.
One hundred million dollars meant Cindy would pocket $10 million, and even top-tier Hollywood actresses who netted $10 million a year were few and far between.
So now the question arose.
With America's Next Top Model and Project Runway, she and Linda not only stood to surpass the million-dollar annual income threshold but would also leave all the other supermodels earning in the million range far behind. As long as the two shows maintained their popularity, they could reliably sit atop the throne of supermodel queens.
However, the repurchase clause originally included to secure their guaranteed salary had recently begun to gnaw at Cindy's peace of mind.
If viewership did not meet expectations and production costs needed to be cut, Lifetime could invoke their negotiation right to lower Cindy's guaranteed salary. But now, with the ratings soaring, the negotiation right still stood. If she earned a whopping $10 million in the first season, it seemed reasonable for Lifetime to request a lower cut should she return for a second season. If both parties couldn't reach an agreement, Lifetime still retained the authority to replace the host.
Cindy was unwilling to lower her slice, especially since America's Next Top Model had even eclipsed Project Runway in popularity. If her share became smaller than Linda Evangelista's next season, she'd look foolish. Word of that would spread like wildfire.
However, the looming threat of replacement terrified her even more.
Despite the show's uncertain beginnings, the host's position had sparked fierce competition behind the scenes, ultimately landing her and Linda in those seats.
Now that America's Next Top Model had achieved monumental success, if there was a rift between her and Lifetime, and word got out that they contemplated replacing her, the younger models would jump at the chance. Any media frenzy over a host change could overshadow any dip in ratings caused by her departure. This meant the dependency of America's Next Top Model on her wasn't as strong as she once thought, yet she couldn't afford to lose that position.
Caught in this dilemma, after much hesitation, Cindy finally sought out Eric today in hopes of solidifying everything ahead of time, finding a solid reason for her visit: she wished to kick off production for the second season by year-end.
According to competition rules, Project Runway would feature its three finalists at the New York Fashion Week in February, meaning the production cycle extended beyond six months with a two-month winter break. It was impossible to produce two seasons in a single year. On the other hand, America's Next Top Model was different; it consisted of thirteen episodes that could all air by December. After the first season finished, preparations for the second season could commence, allowing it to go live on schedule in the spring.
After rushing over that morning, Cindy discussed her plans for the second season with Eric, nervously addressing the negotiation issue. Judging by the smile on Eric's face, he seemed somewhat amused but didn't put her in a tight spot. He personally assured her that her contract would remain intact and indicated he would speak with Anne Sweeney about it.
Finally, the heavy stone that had been sitting on her heart for half a month lifted.
...
Reflecting on the earlier events, Cindy turned to Joanna, who was carefully trimming the leaves she had gathered with a small pair of scissors and slotting them into the book. She couldn't help but ask, "Joan, don't you find it boring just being with the kids all day?"
"After some years, you won't think that way, I assure you. Women always settle down," Joanna glanced at Cindy with a smile and continued, "You know, I was born in Poland, back when the Soviet Union still existed. Life in Poland was pretty tough. I even went hungry as a child; you probably haven't ever experienced real hunger, have you? Haha, I always dreamed of leaving Poland, and after so many twists and turns, I did. But I found out the outside world wasn't paradise either. It wasn't until four years ago that I accidentally met Eric, and then came Hawaii."
Joanna spoke casually, and when she noticed Hawaii running back over, she warmly embraced her, giving her a gentle kiss. The little girl sensed the change in her mother's emotion and, feeling a bit puzzled, called out, "Mom, what's wrong?"
"Nothing, sweetheart," Joanna shook her head, releasing Hawaii and glancing at her watch before turning back to Cindy, who seemed contemplative. "Cindy, could you help me look after Kevin and Hawaii? I need to pick up Emma. The kindergarten is close by, and I'll be back in fifteen minutes."
"Of course, no problem," Cindy quickly nodded, then added, "Oh, Eric just said he wants to keep Terry Semel for lunch."
"I'll have the kitchen prepare something," Joanna instructed the little ones and entrusted them to Cindy before she got up to leave.
...
Watching Joanna walk away, Cindy glanced at the album Joanna had left behind and smiled at the two kids. "Alright, darlings, let's continue. Aunt Cindy will play with you, okay?"
Hawaii and Kevin were no strangers to her but showed less attachment compared to how they were with Joanna. In a few minutes, they lost interest. With no experience looking after kids, Cindy eventually led the two little ones back to the villa.
As she stepped into the living room, she found Eric and Terry Semel still chatting. When Eric noticed Cindy walking in with the kids, he pointed to the sitting room on the right, signaling that she could take the children there to play. Terry Semel glanced at little Kevin and waved at Hawaii, receiving a cheerful response that made his smile broaden.
...
Since his arrival was posed as a casual visit, Terry Semel had engaged in light conversation with Eric. Seeing Cindy enter with the kids, he felt the time to speak up had come. "Eric, there's one more thing while I'm here. Lifetime has been doing quite well recently, and Warner has a substantial user resource; maybe we could explore a closer collaboration?"
Eric took a sip of coffee before responding, "Terry, while I don't follow the television operations too closely, I've heard that Lifetime's collaboration with Warner hasn't been smooth in the past."
"Eric, corporate cooperation isn't always smooth. Discrepancies are bound to arise as both sides must look out for their interests," Terry Semel assessed matter-of-factly. "Given Lifetime's recent popularity, I believe we can renegotiate the profit-sharing contract. Warner can raise the user share to 18 cents; what do you think?"
Eric shook his head, "Eighteen cents is too low. America's Next Top Model has reached a peak viewership of 4.6 million; there aren't many channels that have achieved this level."
"I think 18 cents is quite generous, Eric," Terry disagreed. "America's Next Top Model and Project Runway only air for a total of two hours every Monday, yet there are 22 hours of prime time weekly. Aside from these two reality shows, Lifetime's other programming hasn't outperformed, and these two will wrap up in two months. It's unlikely that Lifetime will find a great program to take on their viewer interest immediately, so overall, Lifetime still remains modest."
*****
https://www.patreon.com/Sayonara816.
週次パワーステータス
-- 推薦
ランキング 
-- 推薦
チケット