Chapter 55: The Account Is Funded
"Aaron, Village Roadshow in Australia is willing to buy the Australian distribution rights for Phone Booth, but they're only offering $1.5 million."
By the end of April, Aaron had returned to Los Angeles and received a call from Nicole Kidman in Australia.
"Tell them yes, and have them come to the U.S. as soon as possible. Ghost is about to start filming," Aaron said lazily, lounging in the Dawnlight Films office.
"Got it," Nicole replied excitedly over the phone.
After hanging up, Jessica Parker walked in. "Here we go—20th Century Fox called again!"
Aaron shook his head. "Phone Booth has already grossed $31 million in North America. Even if it doesn't hit $40 million by the end of its run, it won't be far off. The home video and TV broadcast rights alone are worth $7 million, and the film's reputation is solid."
Look at how much Polydor profited—the international box office had already surpassed $15 million, and they only spent $1.6 million to acquire the European rights!
"Uh, 20th Century Fox is only offering $6 million."
Aaron tapped the desk. He had returned from New York with $15.5 million in funds, and Nicole Kidman was about to bring in $1.5 million more. Together, that made $17 million.
The North American box office for Phone Booth had yet to be fully settled. Selling home video and TV rights would bring in several more million.
"Let's go with $6.5 million. Fox may have the first refusal, but I'm sure other studios would pay this amount. If they don't agree, we'll contact someone else. Also, have Fox settle the box office revenue as soon as possible."
For box office up to $15 million, Fox collected a 20% distribution fee. Dawnlight's theater share was half, leaving $4.5 million after fees. From $15 million to $30 million, Fox charged 18%, leaving Dawnlight with $4.8 million.
From the first $30 million, Dawnlight's net revenue was only $9.3 million. Fox spent $3 million on marketing plus $4 million on prints, management, shipping, and taxes. After these deductions, Dawnlight's profit was just $2.3 million. Any revenue above $30 million would add another few million.
"Damn, Fox really screwed me over!" Aaron muttered. Their cuts were brutal. Without international rights, home video, and TV broadcast, he might have even ended up in the red from just the North American box office.
Within a few days, 20th Century Fox transferred $8.8 million into Dawnlight's account, including the $3 million box office share and home video/TV broadcast royalties. Adding the $1.5 million from Village Roadshow in Australia, Dawnlight now had $25.8 million in its account—more than enough to fund Ghost.
Aaron allocated a $20 million budget for Ghost, keeping $1 million as contingency in case of unexpected costs. After all, this was his first "high-budget" production.
By May, both Pretty Woman and Teenage Mutant Ninja Turtles had broken the $100 million mark. Pretty Woman was clearly showing stronger staying power at the box office.
As an independent distributor, New Line Cinema's profile skyrocketed, and Disney also scored big with Pretty Woman.
At the Roosevelt Hotel in Hollywood, Disney held a lavish celebration for the film. Not only had Pretty Woman crossed $100 million domestically, its overseas box office was equally impressive—just three weeks after release, it had already grossed $150 million internationally.
Director Garry Marshall and stars Al Pacino and Julia Roberts were all radiant with excitement, while Disney's film chairman Jeffrey Katzenberg wore a beaming smile.
"This is Disney's reward for you," Katzenberg said, handing Aaron Anderson a $500,000 cash check.
"Thank you," Aaron accepted it gratefully. The previous publicity incident with Warren Beatty had also helped the film's promotion.
"Aaron, I hear you're developing a $20 million fantasy romance?"
"Yes, it starts shooting next month."
"That's great. For future projects, you can always pitch them to Disney," Katzenberg said, glancing at Nicole Kidman beside Aaron. "I won't keep you young folks any longer."
After Katzenberg left, Aaron handed the check to Nicole. "Go ahead, spend it."
Nicole rolled her eyes but took it—after all, Aaron Anderson was already a multimillionaire.
"The crew is fully prepared. Shooting starts next month. Indoor scenes at Sony's Culver City studios, outdoor scenes in Chicago. In the meantime, you'll need to begin rehearsals with the team."
Aaron gave her a playful squeeze on the waist.
Nicole nodded. "I know. I'll be heading to Cannes mid-to-late next month for the festival. Wild at Heart is in the main competition for the Palme d'Or!"
She leaned over and kissed Aaron's cheek. "Want to come with me? Cannes is your lucky spot."
Aaron smiled. "We'll see then."
Later, he caught up with Al Pacino. "Finished shooting The Godfather Part III?"
"Just wrapped principal photography, now in post-production. Paramount is aiming for a Christmas release," Pacino said, patting Aaron on the shoulder. "Kid, you're amazing. A film made for under $2 million achieving such box office results?"
"Plus, Pretty Woman has become a cultural phenomenon. Glad you listened to me," Aaron replied with a grin.
"I'm really looking forward to Dick Tracy next month," he added.
Currently in Hollywood, fewer than ten films cross $100 million domestically each year. Both Pretty Woman and Teenage Mutant Ninja Turtles were made for under $15 million—a classic example of turning a modest budget into a massive success. Judging by Pretty Woman's momentum, it could rival last year's blockbuster Indiana Jones and the Last Crusade.
At the Roosevelt celebration, Aaron didn't see Disney CEO Michael Eisner, but he did notice Disney group president Frank Wells.
"Interesting," Aaron thought, sensing internal power struggles at Disney.
No one expected Dick Tracy's box office to surpass Pretty Woman. With Warren Beatty's scandal affecting its prospects, Eisner would be lucky just to break even. Meanwhile, Katzenberg's Pretty Woman had won spectacularly.
Aaron's bet last year—that Dick Tracy wouldn't even reach half of Pretty Woman's box office—was suddenly looking quite plausible, leaving Warren Beatty red-faced.
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