Chapter 29

"Negotiating like this is not how it's done; it's clear you don't understand the Hollywood model yet!"

Before he could finish, Katzenberg shook his head, wearing an expression of exaggerated innocence, and said, "A $40 million budget, oh my, I'd rather die. The investment for 'Saving Private Ryan' was only $70 million. Besides, do you think the script for 'The Sixth Sense' can compare to 'Saving Private Ryan'? The script fee won't exceed $600,000, and $200,000 for a first-time director is a very reasonable figure. After all, the President of the United States only earns $400,000 a year. As for the box office split..."

He smiled but didn't continue.

Hollywood directors earning over a million are a dime a dozen, and Spielberg's salary for directing 'Jurassic Park' was a staggering $250 million. But a million-dollar salary won't be given to an unknown young person.

'Saving Private Ryan' indeed had a $70 million investment, but that didn't include marketing costs, and it was based on Spielberg being the director. His name alone would save a lot of money!

The President of the United States... people would fight for the job even without a salary.

Chen Tian knew that the future 'The Sixth Sense' had a $40 million budget, which included the $10 million salary for the lead actor, Bruce Willis, and the director was not unknown.

Chen Tian didn't have these advantages but could streamline the production budget. A $40 million budget was far too much. In his calculations, even $10 million was excessive. However, he asked for $40 million to reserve more funds for marketing to compensate for the lack of star power. If the star power couldn't match Bruce Willis, then marketing would have to make up for it.

"Mr. Katzenberg, do you think 'Saving Private Ryan' has a chance at the Oscars?"

Katzenberg frowned, not speaking. He knew Spielberg's plan well. Even if 'Saving Private Ryan' performed poorly at the box office, DreamWorks would still spend money to lobby for the Oscars. Regardless of whether it gets a Best Screenplay nomination, as long as the film enters the Oscar nomination list, Chen Tian would ride the wave as the screenwriter.

Chen Tian smiled, "See, after the film is released, I won't be an unknown anymore. If I get a nomination by chance, a $1.5 million script fee would be reasonable."

Katzenberg loudly said, "Don't forget that it's also DreamWorks' effort, and it's based on your assumption being correct."

"That's why I didn't agree to New Line but chose DreamWorks."

Chen Tian shrugged and smiled, "The Chinese value loyalty, Mr. Katzenberg, you don't need to remind me."

Katzenberg thought for a moment and said, "We can discuss personal terms later. I'm very curious about how you came up with the $40 million budget. A budget isn't just a number; it requires a professional team to calculate. Does a horror film really need that much money?"

Chen Tian calmly patted the documents on the table, "I've organized some of it, please take a look."

Katzenberg frowned again, grabbed the documents, and carefully read through them. Halfway through, he shook his head, amused, "Marketing costs reach $10 million, and this is a horror film. The film stock and prop costs are all at the highest market prices. I wonder where you found these price lists. No wonder it reaches $40 million. The most ridiculous part is that you set the average number of NGs per shot at 20. What kind of unreliable actor would NG every shot from the first to the last, 20 times? Which company would be foolish enough to hire such an actor?"

Chen Tian looked wronged, "A newcomer like me would, and the company that hires me..."

"..."

Clearly, nothing was resolved in their first meeting.

But it's no problem. Rome wasn't built in a day, and he had anticipated this.

The next day, Katzenberg brought a more professional analysis team to re-evaluate his budget. Chen Tian had to take a leave from the production, as his absence wouldn't significantly affect the crew. Spielberg didn't say much; he knew what was happening since he had approved the investment for 'The Sixth Sense,' but he didn't want to be distracted at this time.

After several days of negotiations, things finally started to improve.

"What kind of director can propose a box office split?"

"A director with a hit film, a director with strong box office appeal, an award-winning director, an internationally renowned director..."

"In other words, everything is decided by the box office?"

Katzenberg said, "If you put it that way, it's not wrong. Although as a filmmaker, I don't think the box office is everything."

Chen Tian said, "Then let's talk in terms of the box office. I will invest my salary, script, and director fees into the film and take 15% of the box office, including the pure income from video sales."

"..." Katzenberg was taken aback, "You're that confident? But a $40 million investment is absolutely impossible."

"What's the maximum DreamWorks can offer?"

Katzenberg thought for a moment and gave a number, "Our budget won't exceed $15 million..."

Chen Tian directly interrupted, "30 million, and I want 20% of the box office."

Katzenberg shook his head, "20 million, a maximum of 10% of the box office, and no profit from video sales."

Chen Tian frowned, "What's your ideal box office with this budget?"

"20 million investment, to break even, the box office needs to exceed $50 million."

"Then let's just talk about the box office. DreamWorks' investment can't be less than $30 million. If the North American box office doesn't reach $50 million, I'll work for free. If it exceeds $50 million, I get 5% of the box office. If it exceeds $80 million, 10% of the box office. If it exceeds $100 million, 10% of the box office and payment according to my standards for the script, director, and lead actor. If it exceeds $150 million, 20% of the box office plus 5% of video and TV on-demand profits. If the North American box office exceeds $200 million, 30% of the box office and 10% of merchandise. If it exceeds $250 million, 30% of the box office, and an additional 5% of merchandise. If it exceeds $280 million, 30% of the box office and 20% of merchandise. If the overseas box office exceeds $200 million, I get one-third of the pure profit from the overseas box office. What do you think?"

Jeffrey Katzenberg and his team were speechless, then they couldn't help but laugh. Even Katzenberg, the gentleman, couldn't help but laugh.

A North American box office of $280 million and an overseas box office of over $200 million? Is he joking with us?

The negotiations naturally ended there for the day.

...

"Did he really say that?" Spielberg was surprised.

Jeffrey Katzenberg was a bit flustered, "Yes, those were his exact words. At first, he was a bit impatient, but the more we talked, the more composed he became, without any emotional fluctuations. Now, I'm the one feeling passive. Steven, do you think we should agree to his terms?"

Spielberg was also hesitant, "What do you think, and what did the team discuss?"

"The internal discussions were mostly mocking, calling him 'arrogant,' 'overconfident,' and 'proud Chinese.' But I, personally, am starting to admire that young man. Maybe this film will be a dark horse. If that happens, we'll lose a lot."

Spielberg was surprised, "How can we lose? If the film is a hit and the North American box office reaches $280 million, DreamWorks will make a fortune."

Jeffrey Katzenberg was shocked, "You agree with him?"

"He does have talent. When I tested him on set, he shot several scenes that even I couldn't criticize; they perfectly matched my vision. I haven't seen a young talent like him in a long time. Maybe he will create a miracle."

"..."

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