The Best Entertainment Era

Chapter 698 Business is business

Glendale, DreamWorks Industrial Park, animation studio office area.

Shrek series production manager Ted Elliott strode down the corridor to Jeff Katzenberg's office and knocked on the door.

Come in. Jeff Katzenberg's voice sounded, and Ted Elliott pushed the door open.

Katzenberg put on his glasses and asked, Ted, what's up?

Ted Elliott handed the report to Katzenberg, and said: Three good news. Shark Gang broke through $100 million at the North American box office, and the overseas response was also good; Shrek 2 was released in North America. In the last file, the North American box office was finally 458.97 million US dollars; Embassy Pictures paid the third box office and peripheral revenue share, 59 million US dollars.

This is indeed some good news. Dreamworks Animation Studio has recovered all the investment in Shrek 2 for the first two cuts, and this time it is almost a pure profit.

There will be a share in the future.

Not bad. Katzenberg was generally satisfied: Ted, your project team has done a very good job.

Ted - Elliott smiled, the bonus can be expected.

The communicator on the desk rang, and Katzenberg picked it up to connect, and the secretary announced: Mr. Spielberg is here.

Katzenberg said, Go to the drawing room.

He hung up the phone and looked at Ted Elliott: Continue to make the sequel.

Ted Elliott responded quickly, then took his leave and left.

Katzenberg went to the next reception room, where Spielberg was already waiting.

Morning, Steven. Katzenberg greeted casually, sat on the sofa next to Spielberg, and asked, Why do you have time to come here today?

Spielberg said: I heard that Shrek 2 has been discontinued.

After David Geffen led the music and game departments to withdraw from DreamWorks, although DreamWorks Film Production Company and DreamWorks Animation Studio have become more independent, they still belong to one company. In terms of shares and investment, Katzenberg and Spielberg, you have me in me and you in me.

In addition, David Geffen's voluntary withdrawal and the clear division of powers have also reduced the conflict between Spielberg and Katzenberg.

The two are currently in charge of each other, and rarely reach out directly to each other's domain.

Katzenberg said: The box office was outstanding, and the profitability was very strong.

Spielberg said: Nearly half of the film's revenue has fallen into the hands of Relativity Entertainment's Embassy Pictures.

The reception room fell into silence for a moment.

How much is this income? Spielberg's question broke the silence.

Katzenberg said slowly: The box office plus peripherals, the current revenue of Embassy Pictures is close to 250 million U.S. dollars, and as time goes by, the DVD and TV copyright market and the sales and authorization of other peripheral products will increase. Continued to increase.

Spielberg is a good guy, but also a businessman: Embassy Pictures took too much.

Katzenberg is quite calm: Embassy Pictures accounts for a relatively high share of overseas tickets and peripheral revenue, and offline peripheral products account for half of the revenue. This is also the practice in the industry. He is actually not dissatisfied with Embassy Pictures : Compared to the six major companies, the conditions of the Embassy Pictures are quite favorable.

Spielberg shook his head: This part of the income should belong to DreamWorks. There is no need to go around in circles between him and Katzenberg: Jerry Fu, DreamWorks' distribution channels have been established.

Regardless of the animation studio or the live-action film department, it is DreamWorks after all, and there are two people investing in it.

Steven, I see what you mean, Katzenberg said. So, when I first negotiated, I insisted on a short-term distribution deal with Embassy Pictures.

Today, unlike before, DreamWorks has gradually improved its distribution channels, and the value of the production company has increased instantly, and it is no longer dispensable in Katzenberg's eyes.

The great success of the two Shrek also made Spielberg fully aware of the strength of DreamWorks Animation Studio. He didn't want to lose the animation studio after losing the music company. He said very earnestly: Jerry Foo, when the contract expires, return to DreamWorks.

This is in the interests of both parties. Jeff Katzenberg had already made psychological preparations and said: Yes, DreamWorks Animation Studio belongs to DreamWorks.

Because of his association with Ronan, he chose Embassy Films as the distributor after investigating the embassy film industry.

But it is not friendship, but interests that ultimately determine the future direction of DreamWorks Animation Studio.

Spielberg has been in business for many years, and his business methods are equally proficient: Jerry Fu, can you extend the production time of Shrek 3 until after the distribution contract with Embassy Pictures ends.

These little tricks are useless. Katzenberg remembered the relevant clauses in the contract, and could only show a bit of a wry smile: There are relevant clauses in the contract with the Embassy Pictures, and during the contract period, the Monster is not included. The Shrek series, including the just-released Shark Gang, the embassy film industry will also release Madagascar and another animated feature film in production, and the contract will be considered to be over when all three films are released.

Spielberg immediately grasped the point: Not counting the Shrek series?

Who would have expected that Shrek would be so successful? Katzenberg regretted it: The animation studio signed the distribution rights of the entire series, as well as the distribution rights of related derivative films, to Embassy Pictures. .”

He emphasized his tone: Thinking about it now, Ronan Anderson's vision and scheming are indeed extraordinary!

Spielberg was depressed for a while, and suddenly felt that since he bought the distribution channel of Artisan Pictures, what he got was all leftovers from Ronan Anderson.

Similarly, Spielberg was also depressed for a while.

Two top tycoons in the Hollywood industry sat in the reception room, relatively speechless for a while.

But in their minds, a character Ronan Anderson appeared at the same time.

Is it easy for DreamWorks, which includes animation studios and live-action film production sides, to create a blockbuster franchise? Finally, a Shrek series came out, and Ronan Anderson forcibly divided the cake into nearly half.

In the past, DreamWorks was limited by distribution, and there was no way at that time.

As a result, the distribution channel was perfected, and Ronan Anderson also set up insurmountable obstacles in advance.

Although DreamWorks and Relativity Entertainment are on the same front in the general direction, they are also competitors.

Spielberg asked a few questions about the contract and found it extremely difficult to resolve, so he simply mentioned the second main purpose of coming here today: DreamWorks is now developing in an all-round way, and its distribution channels are becoming more and more perfect. The most critical factor restricting the development of DreamWorks is factors, only one remains.”

Katzenberg could vaguely guess what Spielberg was going to say, and remained silent for the time being.

Spielberg said: Jerry Fu, we operate DreamWorks to go public and raise funds!

This DreamWorks is not only Spielberg's live-action film production company, but also DreamWorks Animation Studio!

Katzenberg also had the idea of ​​running DreamWorks Animation Studio to go public. Pixar Studio obtained key funds in the listing financing, and Steve Jobs also entered the ranks of billionaires for the first time.

If DreamWorks is still a DreamWorks without a complete distribution channel, Katzenberg will only find a way to make DreamWorks Animation Studio independent, and take the opportunity to clean up his and Spielberg's power and investment on both sides, so as to completely get rid of DreamWorks. The burden of the factory production company achieves the goal of independence.

To this end, he even formulated related plans.

But after DreamWorks acquired the distribution channel of Artisan Pictures, everything changed.

Today's DreamWorks is not what it used to be.

I agree to go public, Katzenberg said, but we need to talk about the specific operation.

The two talked for a whole morning, and had a rare working meal together. In the afternoon, Spielberg had just left, and Sanford Pandridge from Sony Columbia Pictures came to visit.

Katzenberg is very clear that this is all caused by the Shrek series.

Sandford-Pandridge is here for the movie, and he doesn't hide it: Mr. Katzenberg, I'm here on behalf of Sony Entertainment. Sony Entertainment is very interested in DreamWorks Animation Studios, especially Shrek series.

Katzenberg directly dragged the embassy pictures out in order to avoid verbal wars: Sorry, the distribution copyright of the entire series of Shrek has been signed to the embassy pictures.

Sandford-Pendridge certainly knows this, but Sony Entertainment also has ideas: You can change the distribution rights of this series to...

Katzenberg raised his hand to stop him from continuing: Mr. Pandridge, you should talk to Embassy Pictures, talk to Ronan Anderson, not DreamWorks, as long as they want, we can talk about other things.

Sandford-Pandridge frowned slightly.

Katzenberg instead said: I remember Sony Entertainment had a good relationship with Ronan Anderson and Relativity Entertainment.

Sandford-Pendridge smiled and said, But business is business.

Katzenberg nodded subconsciously. In fact, thinking about his back and forth with Ronan Anderson, business is always business.

Sandford-Pandridge suddenly said: Mr. Katzenberg, Sony Entertainment has another idea. His voice seemed to be lowered: I don't know if Mr. Katzenberg is interested in leading DreamWorks Animation Studio Join Sony Entertainment?

Join Sony Entertainment? Katzenberg never had the same thought.

Yes, join Sony Entertainment. Sandford-Pandridge said: Sony Entertainment does not have a professional animation production company, and is willing to hand over all the business in this area to Mr. Katzenberg.

Later, Ronan and Mark Randolph walked into the Sony Columbia Pictures headquarters.

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