Chapter 817： Talk about termination

With the rapid decline of Disney Animation Studios, a new pattern has emerged in Hollywood's animated feature films, with Pixar Studios dominating.

Since the release of "Shrek", DreamWorks Animation Studios have soared, and the production of "Shark Gang" has also been successful, becoming the Hollywood industry's second only animation producer to Pixar.

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

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

Before the second weekend of August, "Madagascar" held its world premiere at the Hollywood Theater.

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

Posters of various African animals and giant dolls can be seen everywhere.

Ronan had already seen the samples of "Madagascar" before, and confirmed that the quality of the film is guaranteed, and the investment of Embassy Pictures in the promotion and distribution is naturally guaranteed.

With the distribution capabilities of the Embassy Pictures, it is not difficult to win more than 4,000 theaters for "Madagascar" after the film was previewed and approved by the theaters.

And high-quality animated films are often the guarantee of profit.

"Madagascar" has opened up to 4288 theaters in North America.

Similarly, this is also a positive response after the success of two consecutive "Shrek".

On the day of the premiere, Jeff Katzenberg was a veritable focus.

In terms of relativity entertainment, both Ronan and Garcia Rodríguez, who attended the premiere as a representative of the distributor, are very low-key.

The best way to issue a company is to earn money silently.

"For the two "Shrek", how much profit does Embassy Pictures make as the publisher?"

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

Garcia was very humble: "How can it be such an exaggeration, the Embassy Pictures has also invested heavily in publicity and distribution."

Although Ron Meyer did not continue to work in Hollywood, he knew something in the circle: "Two "Shrek" and one "Shark Gang", Embassy Pictures, as an online and offline publisher, is the largest Winner."

Garcia smiled and said: "The first "Shrek", North America was released 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 increase The business is highly overlapped, and the distribution department, which is of no use to Relativity Entertainment, is packaged and processed to DreamWorks. Most of the funds invested in Artisan Pictures have been recovered from DreamWorks, and DreamWorks also let DreamWorks Animation Studios North American distribution rights for the animated feature film..."

Garcia said: "Relativity Entertainment and DreamWorks are strategic partners. We have solved the much-needed distribution channel problem for DreamWorks."

Ron Meyer has nothing to say, because it is true. The cooperation between Relativity Entertainment and DreamWorks is that one is willing to sell and the other is also anxious to buy.

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

Ron Meyer is, after all, the former CEO of Universal Pictures, and he certainly knows this.

Why are the six major Hollywood companies? It is not because of the strong production ability, but the mastery of mpaa's voice and complete distribution channels.

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

He stretched out 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."

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

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

"Last time, how did you think about my proposal?" Spielberg was talking as the person in charge of DreamWorks: "Ronan, DreamWorks’ distribution channels are getting better and better, and DreamWorks Animation Studios should also return. DreamWorks, right?"

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

Ronan pondered slightly and said, "Steven, the contract has not expired yet."

Spielberg smiled and said, "I know, but DreamWorks shareholders have 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 Primitive" are all in the hands of Shahai Animation Studio.

DreamWorks Animation Studio's next three projects, "Honey Bee", "Super villain" and "Monsters vs. Aliens", Ronan's impression is also very general animation feature films.

Moreover, the successive successes of the "Shrek" series and "The Shark Gang" have also boosted the confidence of DreamWorks Animation Studios. The most notable manifestation is the dramatic 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 "The Bees", DreamWorks Animation Studio plans to invest US$150 million each!

What is this concept?

Looking at Hollywood, apart from the group of Pixar studios, no other company plays like this.

The problem is that DreamWorks Animation Studio is not Pixar.

DreamWorks Animation Studio has been following a low-cost, high-volume route.

It can only be said that the great success of "Shrek" has made the entire DreamWorks animation studio, including expert veterans such as Jeff Katzenberg, full of confidence.

Today's DreamWorks is no longer the DreamWorks it used to be. The complete distribution channels have also allowed Spielberg to re-evoke the goal of the founding of DreamWorks.

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

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

Similarly, DreamWorks also needs relativistic entertainment to share the pressure.

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

Spielberg’s smile was even stronger, but he knew how Ronan was, and immediately said: "Ronan, if you need DreamWorks, please speak up..."

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

Spielberg nodded: "Please speak."

Ronan continued: "After the release of "Shrek 3" next year, I will ask someone to discuss the termination of the contract with Jerry Fu."

I heard that next year, Spielberg frowned insignificantly, but then returned to normal. This is also expected. Relativity Entertainment is unlikely to abandon the "Shrek" series.

If the issuance contract is cancelled next year, it will be very difficult. After all, the issuance contract between the two parties was signed in 2008.

Spielberg said directly: "Yes."

Ronan added: "The offline distribution of the film that DreamWorks Animation Studios and Embassy Pictures cooperated with will continue until the contract expires in 2008, but for new animated feature films, Embassy Pictures will withdraw."

This request is very reasonable, and Spielberg is not good at objecting in black and hastily said: "No problem."

Ronan's words are not over yet: "To end the contract early, I also need to explain to the Embassy Pictures and the group company. Steven, I have two more conditions."

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

"Just say it." Spielberg decided to listen to the conditions first.

Ronan didn’t go in circles: “As a director and at a reasonable price, you signed two film contracts with Shahai Entertainment.”

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

This is of course measured from the perspective of commercial films. Spielberg's director salary for commercial productions will not be lower than the 20+20 model.

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

Originally, Ronan wanted the people below to talk to Spielberg's agent about the rewards. Since Spielberg had made it clear , of course he would not object.

"Yes." Ronan went on to say the second one: "As far as I know, you, Jereif, and DreamWorks, have a share of Walt Disney?"

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

He has very little equity, and he bought it when Disney was financing expansion in the late 1980s.

Jeff Katzenberg has a lot of hands. He was the head of Disney Animation Studios. Although he sold a part when he founded DreamWorks, he still held about five thousandths.

Ronan said: "You and Jerefer sold the equity to me, the market transaction when they reached an agreement."

Spielberg thought for a while: "I have a discussion with Jerefer."

Ronan nodded: "Yes."

It is inevitable that Relativity Entertainment will end the cooperation with DreamWorks Animation Studios. Those three large-scale investment animation projects also made Ronan full of doubts about DreamWorks Animation Studio.

Ronan then entered the screening room and sat in the third row of guests. He told Connie next to him a few words about DreamWorks Animation Studio and Embassy Pictures.

Someone came over and sat directly beside Ronan.

"Hi, Ronan." Sophia Coppola greeted Ronan: "Unexpectedly, we will be working together again soon."