Chapter 47 of 100

Chapter 47

17 min read4,167 words

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At this time, "The Sixth Sense" also began its global release.

There was no news of the film being introduced to mainland China, and according to the usual policy of the State Administration of Radio, Film, and Television, it was unlikely that a horror film would be introduced, even if it was the most touching horror film.

However, outside of mainland China, "The Sixth Sense" had already signed distribution contracts in over 46 countries and regions worldwide, and it would be released in these regions throughout the year. According to the performance in some overseas regions, the film seemed to be doing even better than "Saving Private Ryan." Of course, further developments would need more time to verify.

In the sixth week, as schools in North America began to reopen, box office revenues plummeted, but "The Sixth Sense" still managed to earn $25.5 million in a single week, bringing its total to $203.16 million, officially breaking the $200 million mark. Although its reign as the weekly box office champion ended at five weeks, it still ranked second this week.

The media's prediction of a $210 million box office was now a joke. Everyone knew it was far beyond that level.

Perhaps thanks to "Titanic," American audiences seemed to have gotten used to watching movies for extended periods. In the seventh week, the decline was minimal, with $20.35 million, bringing the total to $223.51 million, officially surpassing "Saving Private Ryan's" $216 million to become the top-grossing film of the year in North America. "Saving Private Ryan" was still showing in some remote areas, but its box office growth was negligible.

A true dark horse, all the way to the end.

The only film that could become the top-grossing film of the year was "The Sixth Sense." In the eighth week, it earned $18.83 million, $15.58 million in the ninth week, $13.24 million in the tenth week, and $10.05 million in the eleventh week. By the time the film had been in theaters for three months, it finally fell below the $10 million mark, earning $8.57 million. In the thirteenth week, it earned $7.68 million, and in the fourteenth week, $4.85 million.

By the end of the fourteenth week, "The Sixth Sense" had officially broken the $300 million mark in North America, reaching $302.31 million, firmly securing its position as the top-grossing film of the year.

At this point, the potential of "The Sixth Sense" in North America was almost exhausted. With the number of theaters gradually decreasing, it would be lucky to earn another $10 million by the time it was pulled from all North American theaters. However, there was no doubt that this film was already a miracle, a legend.

Including marketing costs, the $30 million investment (which was actually less than $30 million, but DreamWorks would account for it as $30 million) had earned $302.31 million in North America alone!

The media was at a loss for words, "How long can it keep running?"

In the fifteenth week, it earned $2.01 million, and in the sixteenth week, $0.98 million... Although it still ranked in the top 20, the North American box office market had lost interest. It was finally pulled from theaters after 18 weeks, with a total North American box office of $305.68 million.

However, the overseas box office was a different story, with good news coming in one after another.

On the internet, fans from Europe, Japan, and other developed countries shared their thoughts on the film, with the majority being positive. This further boosted the overseas box office. Over several months, the box office successfully surpassed "Saving Private Ryan," reaching $358.3 million.

This overseas performance was about $30 million less than the original, due to Chen Tian's lesser fame compared to Bruce Willis. Therefore, by the time "The Sixth Sense" was pulled from theaters globally, its total box office had reached $663.98 million.

This "supernatural event" left all the film companies and analysts speechless. A $30 million investment with a 21-fold return on investment, this number made financial analysts in Wall Street comment, "The most profitable film of 1998 is not 'Titanic,' but 'The Sixth Sense.' When it is released on DVD, the profit margin could even reach 40 times."

"DreamWorks is making a killing, and this gem came to them on its own. Is their luck really that good?"

The box office was indeed high, but one question that everyone was most concerned about could not be avoided.

How much of the profit would Chen Tian, who planned, directed, and starred in the film, get?

When the North American box office broke $300 million, a media outlet leaked a contract that left all Americans in awe.

"No salary, all funds invested in the film... 30% of the box office and 10% of merchandise if the North American box office exceeds $200 million; 30% of the box office and 15% of merchandise if it exceeds $250 million; 30% of the box office and 20% of merchandise if it exceeds $280 million. If the overseas box office exceeds $200 million, Chen Tian gets one-third of the net profit."

Was this real? Had Chen Tian already aimed for a $200 million box office before the film was even shot?!

Was this confidence or recklessness? But it was definitely a bold gamble!

Believing in his own abilities, betting on his own future.

If this contract was real, how much would Chen Tian get? Let's do the math.

In Hollywood, theaters typically split the box office revenue with the distributor one month after the film's release, and then DreamWorks would split the revenue with Chen Tian. Because Chen Tian signed a special contract with DreamWorks, he wouldn't receive any money until the profits were maximized.

According to the "90/10 - with a floor of 70%" box office split model, the "90/10" split usually only applies to the first three weeks of release, followed by 60/40 in the fourth and fifth weeks, 50/50 in the sixth week, and 40/60 in the seventh week, with the specific split depending on the contract.

The American film industry is highly developed, and contracts are very detailed.

There are other arrangements between theaters and film companies, but generally, the total box office revenue is split 50/50 between the distributor and the theater.

After deducting marketing costs, print costs, shipping fees, and other expenses, DreamWorks would end up with about $145 million in profit. The overseas box office revenue was roughly $110 million, slightly less than the domestic market. After deducting the $30 million investment, the total box office profit was about $225 million.

—This is before taxes.

After DreamWorks' financial department completed the calculations, they began to pay various corporate taxes to the IRS. The Jews have considerable influence in certain areas, and two of the three DreamWorks executives are Jewish, so securing tax incentives was easy. However, they still had to pay nearly 20% in taxes, leaving them with about $180 million, which was much more than "Saving Private Ryan."

With a 30% split, Chen Tian would receive about $60 million.

—This number...

If there were a BGM to describe this, it would be, "I planted a seed, and it finally bore fruit. Today is a great day..."

Of course, the story didn't end there, as Chen Tian still had to pay federal and state income taxes, among other taxes. The American tax system is complex, and an ordinary person can't even understand it, let alone know how to avoid taxes legally. Therefore, lawyers are very important in the United States, and almost every wealthy person has their own lawyer.

Lawyer Donny was honored to receive this task again, and this time it was a super big deal.

It was the largest amount of business he had ever handled in his legal career.

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