Chapter 3 - Startup
Including Ronan, Sand Sea Entertainment only had four employees left. Although Mary is busy with the company's financial affairs, Robert Lee and George Clint in the marketing department have nothing to do.
Ronan's future plans require manpower, so he needs to ensure that these three remain.
Nonsense such as dreams and ideals could only be used to fool young and inexperienced employees such as fresh college graduates.
Naturally, to keep them, their salary must be paid on time. In addition to the salary, the three also needed to see some hope for the company's future.
Giving them hope was quite simple: give them work to keep them busy. It was easy for mind to wander and have drastic thoughts when idle.
---
That afternoon, Ronan held a meeting in his office.
"George, you have previously worked in the media industry. You are an expert in publicity and have contacts amongst the media."
Ronan said to George Clint, "Continue to maintain your relationship with them. We will need them soon."
George Clint was only in his thirties, but due to premature aging, his wrinkled face seemed to belong to a 50-year-old man, "Mr. Anderson..."
"Ronan! Just call me Ronan," Ronan quickly corrected George while smiling.
"We're going to start a new film project?" George Clint asked.
Mary and Robert Lee also looked at Ronan with concern evident on their faces.
Ronan nodded, "Yes, we need a new film to save ourselves."
Now, surprise evident on their faces. Just as someone planned to ask a question, Ronan said, "I will take care of the funding. Starting from February, your salary will be increased by 10%, and I promise it will be payed on time."
George Clint interjected, "Can't we gain Arab investment in the company, itself? Ronan, we just messed up a project so..."
Ronan shook his head, "If we let Arabs invest in the company, we may face much greater problems in the future."
The three experienced employees immediately understood the meaning behind his words. Hollywood, controlled by Jews, has always been opposed to the Arabs.
Ronan continued, "We should focus on getting their investment for film projects since a single film project is not that sensitive."
Mary quickly stopped him and said, "No need to do that, Ronan! It was their obligation to the company."
Ronan knew the importance of teamwork, so after appealing to their emotions, he decided to be appeal to them through money and said, "If we succeed in our plan, I promise to reward 1% of the total investment to each of you."
Ronan knew that he required their help for his future plans. Not to mention, they had truly stayed with despite the dire odds.
Robert Lee and George Clint glanced at each other before the latter asked, "Ronan, how much do you plan to raise?"
"My tentative goal is around $10 million," Ronan replied.
Since the three had stayed with the company until now, they certainly must have been attached to Sand Sea Entertainment. Coupled with the fresh stimulation of money, their spirits were refreshed.
In the office, Robert Lee said to George Clint, "It feels like Ronan has changed."
"Yeah," George Clint sighed and replied, "After experiencing such a miserable failure, it's only natural that he would change."
"I hope this time he won't mess up," Robert Lee said, still lacking confidence in Ronan.
George Clint said, "Who hasn't failed at least once in Hollywood? Ronan is quite talented, he just lacks experience."
Despite supporting Ronan in front of Robert Lee, George Clint didn't tell him that he had previously been considering resigning.
There were numerous small production companies like Sand Sea Entertainment in Hollywood.
"$200,000 for licensing fees is impossible!" Anthony Edwards's voice was calm, but his tone was slightly arrogant, "The box office of The Agent is not worth such a price."
Of course, Ronan knew that such a price was impossible, but he still wanted to sell it for as much as possible, "The Agent is a uniquely-styled action film that incorporates the grisly elements of a B-movie. This type of film has always been much more successful in the video tape market than the box office. In fact, there have been many successful films that had failed at the box office but were very popular in the video tape market such as Shawshank Redemption. It has performed very well in the video tape market during the past few years."
Anthony Edwards said with a slight disdain, "That film still hasn't even recovered its investment so far. It may only start to make profit five years later. Isn't waste of time time a cost, as well?"
Realizing that the buyer wouldn't be easily fooled, Ronan directly asked, "How much is your bid?"
Anthony Edwards replied coldly, "$80,000."
"That's impossible!" Ronan acted astonished and excitedly said, "The production cost of The Agent is over $6 million!"
---
In fact, this is a normal bid. In most cases, a film's video tape licensing fee is between 10%-20% of the film's North American box office.
The higher the box office, the higher the licensing fee. Some very popular films allow the producer to receive a share of the video tape sales and rentals, as well.
Sand Sea Entertainment has been working with Anthony Edwards for many year, however, such relations are nothing in the face of commercial interests.
Especially, in the current situation where Sand Sea Entertainment is about to go bankrupt.
---
Anthony Edwards shrugged, his tone of disdain again, "Let me remind you, the North American box office of The Agent was just $800,000."
Once again hearing that the film had such a terrible box office, Ronan felt all his confidence being deflated from him.
'But, $80,000 is still too low,' he thought.
Ronan thought for some time and said, "Except for basic standard set by the PGA, Sand Sea Entertainment won't ask for any future shares."
Anthony Edwards frowned and thought, 'B-movies have always performed well in the video tape industry. Grisly action films like The Agent are usually rented a lot.'
"One-time sale!" Ronan bluntly said, "including the TV broadcast rights."
Ronan deliberately gritted his teeth and said, "I want $300,000!"
Anthony Edwards mockingly laughed and said, "Young man, Sand Sea Entertainment is about to go bankrupt. No matter what company you go to, no one will accept such a high price."
"Sand Sea Entertainment has not gone bankrupt, yet." Ronan replied nonchalantly.
Anthony Edwards shrugged, as if listening to a joke, and bluntly said, "$150,000! One-time buyout of video tape and TV broadcast rights! Don't waste anymore of my time."
Ronan groaned slightly before he finally said, "Okay, $150,000," He emphasized, "But, you need to make a single lump sum payment when we sign the copyright transfer contract."
Anthony Edwards didn't mind, "Sure."
According to Mary, however, this kind of small business worth a few hundred thousand dollars won't have too many surprises.
A few hundred thousand dollars is naturally a small business for a giant such as Blockbuster.
---
While leaving Blockbuster's branch office, Ronan looked back at its board. Anthony Edwards' attitude had left him quite angry, but he was unable to vent his anger. Not to mention the current Sand Sea Entertainment which was facing bankruptcy, even at its peak, the company was not regarded much by Blockbuster's employees.
The wealth and power of the two companies were in two completely separate leagues.
After experiencing today's insulting event, Ronan became even more determined to complete his plan.
While he was thinking so, Mary asked, "This money is what we will use as a start-up fund, right?"
Ronan smiled and said, "Without spending on our plan, how can we attract investment?"
Mary reminded, "According to the contract we signed with the distributor, New Line Cinema holds 15% of the copyright transfer fee."
Ronan had read the contract, so he naturally knew this. After thinking about it, he said, "Take the formal procedures to notify New Line Cinema, but delay the payment for as long as possible."
Mary nodded and said, "It should be no problem to delay for a few months."
Ronan sighed and thought, 'Distributors truly stand at the top of Hollywood's food chain.'
Distribution companies not only take a share of the box office, they also take a share of the film's peripheral copyright revenue, which can range from 10%-40%.
"Have you decided upon the script?" Mary asked with concern.
Ronan nodded, "Yes."
Now that he has some start-up funds, he needs to come up with a convincing film. The basis of the film starts from the script.
George Clint was only in his thirties, but due to premature aging, his wrinkled face seemed to belong to a 50-year-old man, "Mr. Anderson..."
"Ronan! Just call me Ronan," Ronan quickly corrected George while smiling.
"We're going to start a new film project?" George Clint asked.
Mary and Robert Lee also looked at Ronan with concern evident on their faces.
Ronan nodded, "Yes, we need a new film to save ourselves."
Now, surprise evident on their faces. Just as someone planned to ask a question, Ronan said, "I will take care of the funding. Starting from February, your salary will be increased by 10%, and I promise it will be payed on time."
These words seemed to have a great effect as the three began smiling in relief.
Ronan then turned to the forty-year-old curly-haired man and said, "Robert, what do you know about the Abu Dhabi Investment Authority?"
"They have recently set up an office in Los Angeles to investigate prospective investments," Robert Lee replied.
"Is it just for investigation?" Robert Lee nodded at Ronan's query.
Ronan then turned to the forty-year-old curly-haired man and said, "Robert, what do you know about the Abu Dhabi Investment Authority?"
"They have recently set up an office in Los Angeles to investigate prospective investments," Robert Lee replied.
"Is it just for investigation?" Robert Lee nodded at Ronan's query.
Ronan thought for a while and said, "Get in touch with them and make sure to gauge their impression of Hollywood. Also, collect some information about Abu Dhabi, especially regarding its investors and the country's humanitarian environment."
Robert Lee considered Ronan's words and said, "I have a friend who often does business with the Arabs, so I can get in touch with them through him." He seemed to have guessed Ronan’s intentions and asked, "You are going to look for Arab investment?"
Ronan nodded, "I had a classmate from Abu Dhabi at USC. Over the past two days, I have spoked with him about this. He said that the Arabs are very rich thanks to their oil reserves and are always waving checks all over the world looking for investment."
Robert Lee considered Ronan's words and said, "I have a friend who often does business with the Arabs, so I can get in touch with them through him." He seemed to have guessed Ronan’s intentions and asked, "You are going to look for Arab investment?"
Ronan nodded, "I had a classmate from Abu Dhabi at USC. Over the past two days, I have spoked with him about this. He said that the Arabs are very rich thanks to their oil reserves and are always waving checks all over the world looking for investment."
George Clint interjected, "Can't we gain Arab investment in the company, itself? Ronan, we just messed up a project so..."
Ronan shook his head, "If we let Arabs invest in the company, we may face much greater problems in the future."
The three experienced employees immediately understood the meaning behind his words. Hollywood, controlled by Jews, has always been opposed to the Arabs.
Ronan continued, "We should focus on getting their investment for film projects since a single film project is not that sensitive."
Ronan was grateful to the three so he bowed his head and said, "The three of you are the some of the earliest employees of Sand Sea Entertainment. I am very grateful that you didn't gave up on Sand Sea Entertainment and I."
Mary quickly stopped him and said, "No need to do that, Ronan! It was their obligation to the company."
Ronan knew the importance of teamwork, so after appealing to their emotions, he decided to be appeal to them through money and said, "If we succeed in our plan, I promise to reward 1% of the total investment to each of you."
Ronan knew that he required their help for his future plans. Not to mention, they had truly stayed with despite the dire odds.
Robert Lee and George Clint glanced at each other before the latter asked, "Ronan, how much do you plan to raise?"
"My tentative goal is around $10 million," Ronan replied.
Since the three had stayed with the company until now, they certainly must have been attached to Sand Sea Entertainment. Coupled with the fresh stimulation of money, their spirits were refreshed.
In the office, Robert Lee said to George Clint, "It feels like Ronan has changed."
"Yeah," George Clint sighed and replied, "After experiencing such a miserable failure, it's only natural that he would change."
"I hope this time he won't mess up," Robert Lee said, still lacking confidence in Ronan.
George Clint said, "Who hasn't failed at least once in Hollywood? Ronan is quite talented, he just lacks experience."
Despite supporting Ronan in front of Robert Lee, George Clint didn't tell him that he had previously been considering resigning.
'Those Arabs who rely on oil to make their fortunes are said to not take money seriously so it isn't impossible to gain investment from them,' he thought, hoping that Ronan's plan would succeed.
---
Ronan took Mary Blockbuster's Los Angeles branch in Century City and met a buyer named Anthony Edwards.
Blockbuster was the largest video tape seller in the United States. It was mainly engaged in video tape production, sales and leasing. It was acquired by Sumner Redstone's Viacom during the early '90s and soon became a giant with close to a monopoly in the video tape industry.
Anthony Edwards, who met with Ronan, was just a low-level buyer, but he still looked down on Sand Sea Entertainment.
---
Ronan took Mary Blockbuster's Los Angeles branch in Century City and met a buyer named Anthony Edwards.
Blockbuster was the largest video tape seller in the United States. It was mainly engaged in video tape production, sales and leasing. It was acquired by Sumner Redstone's Viacom during the early '90s and soon became a giant with close to a monopoly in the video tape industry.
Anthony Edwards, who met with Ronan, was just a low-level buyer, but he still looked down on Sand Sea Entertainment.
There were numerous small production companies like Sand Sea Entertainment in Hollywood.
"$200,000 for licensing fees is impossible!" Anthony Edwards's voice was calm, but his tone was slightly arrogant, "The box office of The Agent is not worth such a price."
Of course, Ronan knew that such a price was impossible, but he still wanted to sell it for as much as possible, "The Agent is a uniquely-styled action film that incorporates the grisly elements of a B-movie. This type of film has always been much more successful in the video tape market than the box office. In fact, there have been many successful films that had failed at the box office but were very popular in the video tape market such as Shawshank Redemption. It has performed very well in the video tape market during the past few years."
Anthony Edwards said with a slight disdain, "That film still hasn't even recovered its investment so far. It may only start to make profit five years later. Isn't waste of time time a cost, as well?"
Realizing that the buyer wouldn't be easily fooled, Ronan directly asked, "How much is your bid?"
Anthony Edwards replied coldly, "$80,000."
"That's impossible!" Ronan acted astonished and excitedly said, "The production cost of The Agent is over $6 million!"
---
In fact, this is a normal bid. In most cases, a film's video tape licensing fee is between 10%-20% of the film's North American box office.
The higher the box office, the higher the licensing fee. Some very popular films allow the producer to receive a share of the video tape sales and rentals, as well.
Sand Sea Entertainment has been working with Anthony Edwards for many year, however, such relations are nothing in the face of commercial interests.
Especially, in the current situation where Sand Sea Entertainment is about to go bankrupt.
---
Anthony Edwards shrugged, his tone of disdain again, "Let me remind you, the North American box office of The Agent was just $800,000."
Once again hearing that the film had such a terrible box office, Ronan felt all his confidence being deflated from him.
'But, $80,000 is still too low,' he thought.
Ronan thought for some time and said, "Except for basic standard set by the PGA, Sand Sea Entertainment won't ask for any future shares."
Anthony Edwards frowned and thought, 'B-movies have always performed well in the video tape industry. Grisly action films like The Agent are usually rented a lot.'
"One-time sale!" Ronan bluntly said, "including the TV broadcast rights."
Ronan deliberately gritted his teeth and said, "I want $300,000!"
Anthony Edwards mockingly laughed and said, "Young man, Sand Sea Entertainment is about to go bankrupt. No matter what company you go to, no one will accept such a high price."
"Sand Sea Entertainment has not gone bankrupt, yet." Ronan replied nonchalantly.
Anthony Edwards shrugged, as if listening to a joke, and bluntly said, "$150,000! One-time buyout of video tape and TV broadcast rights! Don't waste anymore of my time."
Ronan groaned slightly before he finally said, "Okay, $150,000," He emphasized, "But, you need to make a single lump sum payment when we sign the copyright transfer contract."
Anthony Edwards didn't mind, "Sure."
After the negotiation, the two parties wrote an agreement, but the signing of the formal contract will have to wait until it passes Blockbuster's review.
According to Mary, however, this kind of small business worth a few hundred thousand dollars won't have too many surprises.
A few hundred thousand dollars is naturally a small business for a giant such as Blockbuster.
---
While leaving Blockbuster's branch office, Ronan looked back at its board. Anthony Edwards' attitude had left him quite angry, but he was unable to vent his anger. Not to mention the current Sand Sea Entertainment which was facing bankruptcy, even at its peak, the company was not regarded much by Blockbuster's employees.
The wealth and power of the two companies were in two completely separate leagues.
After experiencing today's insulting event, Ronan became even more determined to complete his plan.
While he was thinking so, Mary asked, "This money is what we will use as a start-up fund, right?"
Ronan smiled and said, "Without spending on our plan, how can we attract investment?"
Mary reminded, "According to the contract we signed with the distributor, New Line Cinema holds 15% of the copyright transfer fee."
Ronan had read the contract, so he naturally knew this. After thinking about it, he said, "Take the formal procedures to notify New Line Cinema, but delay the payment for as long as possible."
Mary nodded and said, "It should be no problem to delay for a few months."
Ronan sighed and thought, 'Distributors truly stand at the top of Hollywood's food chain.'
Distribution companies not only take a share of the box office, they also take a share of the film's peripheral copyright revenue, which can range from 10%-40%.
"Have you decided upon the script?" Mary asked with concern.
Ronan nodded, "Yes."
Now that he has some start-up funds, he needs to come up with a convincing film. The basis of the film starts from the script.
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