Chapter 817 Talk About Termination

Along with the sharp decline of Disney Animation Studios, a new pattern of animated feature films in Hollywood has emerged, with Pixar Studios dominating.

Since the release of "Shrek", DreamWorks Animation Studio has soared, and "Shark Gang" has also been successful, becoming the animation producer second only to Pixar in the Hollywood industry.

"Madagascar" is the latest masterpiece of DreamWorks Animation Studio.

Under the agreement between Relativity Entertainment and DreamWorks, Embassy Pictures continued to promote and distribute the animated feature film.

Before the second weekend in August, "Madagascar" held its world premiere at the Hollywood Coliseum.

The Avenue of Stars in front of the theater has also become a paradise for animals.

Posters and giant dolls of various African animals are everywhere.

Ronan had seen the sample of "Madagascar" before, and he was sure that the quality of the film was guaranteed, and the investment of the Embassy Pictures in publicity and distribution was naturally guaranteed.

With the distribution capabilities of Embassy Pictures, it is not difficult to win over 4,000 theaters for "Madagascar" after the film has been tested and approved by the theaters.

Moreover, high-quality animated films are often the guarantee of profitability.

The opening scale of "Madagascar" in North America is as high as 4,288 theaters.

Similarly, this is also the positive response brought about by the success of two consecutive "Shrek".

On the day of the premiere, Jeff Katzenberg was the veritable center of attention.

On the other hand, in terms of Theory of Relativity entertainment, both Ronan and Garcia Rodriguez, who attended the premiere as a representative of the distributor, are very low-key.

The best way for the issuing company is to earn money quietly.

"Two "Shrek", how much profit does Embassy Pictures make as the distributor?"

Inside the theater, Ron Mayer, the former CEO of Universal Pictures, asked Garcia: "You also take at least half of the profits?"

Garcia was very modest: "There is no such exaggeration. The Embassy Pictures has also invested a huge amount of money in publicity and distribution."

Although Ron Meyer did not continue to work in Hollywood, he has some understanding of things in the circle: "Two "Shrek" and one "Shark Gang". As an online and offline distributor, Embassy Pictures is the largest winner."

Garcia smiled and said, "The first "Shrek" was released in North America by DreamWorks itself."

"Speaking of which, I really admire your Ronan Anderson." Ron Meyer looked at Ronan who was talking with Spielberg, and said slowly: "Relativity Entertainment's acquisition of Artisan Pictures will not only The business is highly overlapping, and the distribution department that is of no use to Relativity Entertainment is packaged and processed by DreamWorks. Most of the funds invested in Artisan Pictures have been recovered from DreamWorks, and DreamWorks has also given up the DreamWorks Animation Studio. The North American distribution rights of the animated feature film..."

"Relativity Entertainment and DreamWorks are strategic partners who have provided DreamWorks with much-needed distribution," Garcia said.

Ron Meyer had nothing to say,

Because this is indeed the case, the cooperation between Relativity Entertainment and DreamWorks is completely that one is willing to sell, and the other is also eager to buy.

Garcia continued: "Artisan can be said to be DreamWorks' last chance. Ron, you are an old man in the industry and know the industry very well. Even if you spend a lot of money to acquire distribution channels, can you still buy it? ?”

Ron Mayer, after all, is the former CEO of Universal Pictures, and of course knows that.

Why are the Big Six in Hollywood? It's not because of its strong production ability, but because it has the right to speak of MPAA and complete distribution channels.

Ron Meyer didn't dwell on this topic anymore, but went back to just now: "The three animated feature films of DreamWorks Animation Studio that have been released, your online and offline distribution profits will definitely not be lower than this figure. ?”

He held up two fingers.

Garcia said with a smile: "The specific statistics have not yet come out."

Ron Meyer shook his head: "You should be financially open and transparent relative to entertainment."

Garcia replied directly: "Relativity Entertainment is not a listed company."

On the other hand, Spielberg is having a very serious private informal discussion with Ronan.

"Last time, how did you think about my proposal?" Spielberg was speaking as the person in charge of DreamWorks: "Ronan, DreamWorks' distribution channels are improving day by day, and it's time for DreamWorks Animation Studio to return. DreamWorks, right?"

Watching the distribution company share nearly half of the online and offline profits of the three animated feature films, the heart of DreamWorks is bleeding.

Ronan thought for a while and said, "Steven, the contract hasn't expired yet."

Spielberg said with a smile: "I know, but the shareholders of DreamWorks put a lot of pressure on DreamWorks."

Ronan has been thinking about it, and now "Kung Fu Panda", "How to Train Your Dragon" and "Crazy Primitives" are all in the hands of Shahai Animation Studio.

The next three projects of DreamWorks Animation Studio, "Bee Story", "Super Villain" and "Monsters vs. Aliens", Ronan's impression is also a very general animated feature film.

Moreover, the successive successes of the "Shrek" series and "Shark Gang" have also boosted the confidence of DreamWorks Animation Studio. The most notable performance is the sharp increase in the production budget of animated feature films.

For example, "Monsters vs. Aliens", the production budget is as high as 175 million US dollars!

Even for the two projects of "Super Villain" and "Bee Story", DreamWorks Animation Studio plans to invest 150 million US dollars each!

What is this concept?

Looking at Hollywood, there is no company that plays like this except for the gangsters of Pixar Studios.

The thing is, DreamWorks Animation is not Pixar.

DreamWorks Animation has always followed the low-cost, high-volume route.

It can only be said that the great success of "Shrek" made the entire DreamWorks Animation Studio, including veterans like Jerry Katzenberg, feel confident.

Today's DreamWorks is no longer what it used to be, and the complete distribution channels also allow Spielberg to reawaken the goal of establishing DreamWorks.

"DreamWorks only has two businesses left: live-action movies and animated movies." Spielberg said: "Ronan, the complete DreamWorks can better share the pressure for Relativity Entertainment."

No one is an idiot, and Spielberg has already seen clearly that the alliance between Relativity Entertainment and DreamWorks is to allow DreamWorks to share part of the pressure from the six major companies.

Likewise, DreamWorks needed Relativity Entertainment to share the pressure.

Thinking of Shahai Entertainment Animation Studio, and DreamWorks Animation Studio's next three top animation feature film projects, Ronan made a decision: "Relativity and DreamWorks are allies. Steven, you and Jay River is also a friend, since you proposed it, I can't object."

The smile on Spielberg's face was even better, but he understood Ronan's personality somewhat, and immediately said: "Ronan, if you need DreamWorks, just ask..."

Ronan raised his hand to stop Spielberg from continuing: "Steven, don't worry, listen to me, okay?"

Spielberg nodded: "Please."

Ronan continued: "After "Shrek 3" is released next year, I will ask someone to discuss the termination of the contract with Jeff."

Hearing that it was next year, Spielberg frowned slightly, but then returned to normal. This is also expected, and Relativity Entertainment cannot give up the "Shrek" series.

It will be very difficult to cancel the distribution contract next year, after all, the distribution contract between the two parties was signed in 2008.

Spielberg said directly: "Yes."

Ronan also said: "For the films that DreamWorks Animation Studio cooperates with Embassy Pictures, the offline distribution will continue until the contract expires in 2008, but for the new animated feature film, Embassy Pictures will withdraw."

This request is very reasonable, and Spielberg didn't want to object secretly, and said quickly: "No problem."

Ronan's words were not finished: "To end the contract early, I also need to explain to the embassy film industry and the group company. Steven, I still have two conditions."

Spielberg understands that it is impossible to get back the distribution rights of DreamWorks Animation Studio without paying something.

"Go ahead." Spielberg decided to listen to the conditions first.

Ronan didn't go around in circles: "As a director and at a reasonable price, you signed a contract with Shahai Entertainment for two films."

Spielberg frowned slightly, thought for a while, and said: "A contract." He knew that he had to make a compromise: "I only want a salary of 20 million US dollars, and I guarantee the completion of the film."

Of course, this is measured from the perspective of commercial films. Spielberg's director's salary in large commercial productions will not be lower than the 20+20 model.

As early as 1994, the "Jurassic Park" project, Spielberg's total personal compensation reached 200 million US dollars.

Originally regarding the remuneration, Ronan wanted the people below to discuss with Spielberg's agent. Since Spielberg made it clear, of course he would not object.

"Yes." Ronan went on to say the second one: "As far as I know, you, Jeff, and DreamWorks all have part of the shares of Walt Disney?"

Spielberg said: "Yes, very few, and it adds up to less than one percent."

He owns a small stake, bought when Disney financed its expansion in the late 1980s.

Jeff Katzenberg has a lot in his hands. He was the head of Disney Animation Studios back then. Although he sold some of them when he founded DreamWorks, he still has about five thousandths in his hands.

Ronan said: "You and Jeff will sell the equity to me, and the market price will be traded when the agreement is reached."

Spielberg thought for a while: "I'll discuss it with Jeff."

Ronan nodded: "Yes."

It is inevitable that Relativity Entertainment will end its cooperation with DreamWorks Animation Studio. Those three large-scale animated feature film projects also made Ronan full of doubts about DreamWorks Animation Studio.

Ronan then entered the auditorium, sat in the guest seat in the third row, and explained a few things about DreamWorks Animation Studio and Embassy Pictures to Connie next to him.

Someone came over and sat directly next to Ronan.

"Hi, Ronan." Sofia Coppola greeted Ronan: "I didn't expect that we would cooperate again so soon."