Huayu Entertainment 1995 started with hijacking.

Chapter 196 Negotiation
David Geffen's arrival has indeed provided Wu Yuchen with more options.

The first two conditions are fine, but the main issue is the full copyright. Profits are profits, and all sorts of miscellaneous expenses such as promotion and distribution cannot be deducted from this. It would make the accounts difficult to keep, and there would be no situation like "Harry Potter" where the lead actors were cheated.

Wu Yuchen now invests in films that generate revenue through North American box office revenue sharing, and then sells the other copyrights, because he doesn't have a channel to profit from other sources. Even if the Big Seven blockbusters try to lower the price, he can only accept it if something worth 100 yuan is reduced to 40 or 50 yuan.

However, with full copyright, revenue is directly shared with the distribution channels. Every time a contract is negotiated and revenue is received, a portion is retained. It's no exaggeration to say that 20% of the full copyright is more profitable than the 40% or even 50% he would have received as an investor in Miracle Films.

However, this doesn't mean they should join DreamWorks. Their strength is not as great as the Big Seven, and they still need to rely on Paramount for distribution channels. The profits generated by DreamWorks' films are naturally not as high as those of the Big Seven. In fact, they are currently being suppressed by the Big Seven.

Whether or not to join DreamWorks, and who to choose for the next film collaboration, are things Wu Yuchen really needs to carefully consider.

This also served as a reminder to him that he is now highly regarded in Hollywood, to the point that the Big Seven are starting to reach a certain understanding.

However, he wasn't lying to David Geffen; his energy is indeed mostly focused on "The Sixth Sense," especially dealing with the North American and overseas rights. Such a large piece of the pie requires serious negotiation with Disney. But he hasn't proactively approached Disney about it; instead, he's waiting for Disney to come to him. It's a test of patience now.

In its sixth week, "The Sixth Sense" earned another $2464 million. After 28 days in theaters, its total North American box office reached $2.8 million, surpassing "Jaws" in North American box office and also exceeding "The Silence of the Lambs" in global box office. It is now the undisputed number one horror film at the box office, and Disney finally couldn't sit still anymore.

“Hey Wu, I think we need to talk about our follow-up marketing strategies and overseas box office results.”

The person from Disney who came this time was a high-ranking executive who could make decisions. He had no choice but to come because if it was delayed any longer, the overseas release would be delayed.

"Of course, I've been waiting for you all to arrive~" Wu Yuchen said with a smile.

After the host sat down and Wu Yuchen served tea, he casually asked:

"Mr. Miles, would you like to discuss overseas box office revenue first, or would you like to discuss marketing and distribution first?"

“Wu, you should know that they are actually inseparable and closely related. The reason I only brought one person instead of a team this time is because I don’t want to waste too much time on this matter, otherwise the interests of both of us will be affected.”

Unlike the previous negotiation with a professional team from Fox for "Phone Booth," this time Disney only had Miles and an assistant with them.

"Of course, Mr. Miles, on this point I agree with you."

Miles nodded upon hearing this, then gestured to his assistant, who produced a document and said to Wu Yuchen:

"Dear Director Wu, according to professional institutions and our internal Disney predictions, The Sixth Sense should ultimately gross $3.3 million in North America and $7 million worldwide..."

He had barely finished speaking when Wu Yuchen interrupted, saying, "That's too little."

He then looked at Miles: "The Sixth Sense has received excellent reviews and its box office performance is very healthy. Weekly box office drops haven't exceeded 25%, and most have been below 20%. In a week, its North American box office will reach $3 million, and within a month it will exceed $3.3 million, and the total box office..."

Wu Yuchen raised one hand and held up four fingers: "I'm not exaggerating, it might even reach 4 million in box office revenue!"

Thanks to Wu Yuchen securing a large number of theaters for its opening and effective promotion, *The Sixth Sense*'s box office performance in the first few weeks was far better than in his previous life. He remembered *The Sixth Sense*'s box office performance very clearly in his previous life, because the film had a very strong long-tail effect; after its weekly box office dropped below 1000 million, it remained in theaters for more than half a year, earning nearly 7000 million. If Disney put in a good effort and managed it well, reaching 4 million was not impossible.

Miles smiled upon hearing this, then said to Wu Yuchen, "Wu, I'm not here today to argue with you too much. Perhaps what you said is a possibility, but you need to understand one thing: high box office is built on the foundation of marketing and distribution. Do you know how much the North American marketing and distribution costs for 'The Sixth Sense' are right now?"

At this moment, the assistant spoke up at the opportune moment: "6100 million."

Wu Yuchen frowned upon hearing this, but did not refute it. Since the other party dared to reveal this figure, they were not afraid of him verifying it. Based on his observations over the past few days, Disney had indeed spent a considerable amount on this promotional campaign; even if it didn't reach 6100 million, it should be at least 5000 million.

"Wu, if you're willing, we can continue to invest heavily in marketing and distribution. No problem, I think we can get $4 million in North American box office!"

Miles then shrugged and said, "But do you think it's worth it? I doubt you'd be willing to do it."

Wu Yuchen sighed inwardly, realizing that the seven major players, controlling the publicity and distribution aspect, were essentially invincible, naturally possessing a huge advantage. He then simply asked, "Miles, do you have any good suggestions?"

"Wu, we can settle the bill for you at 3.3 million right now, and Disney will cover the rest of the marketing and promotion costs. How about that?"

Wu Yuchen laughed upon hearing this and waved his hand, saying, "3.3 million is too little. Even if you do nothing, 'Sixth Sense' can definitely reach that number."

"How about 3.4 million..."

Seeing that Wu Yuchen was about to refuse again, Miles quickly added, "Wu, let me finish. The settlement is 3.4 million. In addition, Disney will also help 'The Sixth Sense' and you personally compete for an Oscar!"

Upon hearing this, Wu Yuchen's words caught in his throat. He then looked at Miles, carefully choosing his words before asking, "Aiming for an Oscar? What level of impact are you talking about?"

Miles smiled immediately upon hearing this: "We'll at least help you secure nominations for major awards, including Best Picture and Best Director. As for winning, we can't guarantee that. Nobody can say they've got an Oscar in the bag!"

Disney is willing to do this for two reasons. First, *The Sixth Sense* has indeed received very positive reviews. Although it's a horror film, its core message is about human emotions and mutual understanding. Judging from current critics and public opinion, it's a strong contender for a nomination.

On the other hand, if "The Sixth Sense" receives a nomination or even wins, it will be very beneficial for Disney's overseas distribution. These days, the promotional effect of the Oscars is very strong, allowing them to save a lot of advertising costs overseas.

Wu Yuchen's thoughts raced through his mind before he said, "Just a nomination? Miles, I don't think trading tens of millions in box office revenue for a nomination is a worthwhile deal."

Miles shook his finger and said, "Wu, firstly, whether 'The Sixth Sense' can achieve such high box office results is still unknown. Our willingness to settle based on 340 million in box office revenue already shows great sincerity, and this is risky for us. Secondly, if you agree, you can receive the revenue after signing the contract, without having to wait more than a year. We can settle the payment within three months. You know that time is the most valuable thing."

Finally, getting an Oscar nomination isn't as easy as you might think. Believe me, even though you're already quite famous, with your connections in Hollywood, getting a nomination isn't guaranteed. But with Disney's help, there shouldn't be any major surprises.

Furthermore, you should know that Oscar nominations aren't useless. Every time you're nominated, you accumulate points in the minds of the Academy judges. When you've accumulated enough points, winning an Oscar becomes much easier. If you have more than enough points, even the media will shout slogans like "The Oscars owe you a golden statuette!"

Wu Yuchen fell into deep thought, then asked, "How are overseas copyrights calculated?"

Miles smiled and said, "The overseas box office will also be calculated based on 3.4 million."

Wu Yuchen immediately shouted, "Hey! Miles, are you kidding me? The overseas box office will be 1 million more than the North American box office!"

“Wu, you can’t guarantee that overseas audiences will appreciate ‘The Sixth Sense’ as much as North American audiences do.”

"Myers, that's just sophistry. Most Hollywood movies gross more than 20% more overseas than in North America!"

"But this also depends on our publicity and promotion, and we need to spend a lot of money on advertising!"

"Come on! With the sensational effect in North America and the big star Bruce Willis who has a lot of appeal, the global promotion of 'The Sixth Sense' will be very easy."

"It's not as simple as you say. Besides, Bruce doesn't have any action scenes this time. Who knows if the audience will accept it? There's a big risk..." Miles also spread his arms and loudly retorted.

Wu Yuchen sneered:
"Ha, if Disney is really that worried about the high risks of 'The Sixth Sense,' then I suggest they simply hand over the overseas distribution to another company. I think Warner Bros., Sony, or Fox would all be willing to offer a reasonable price!"

Miles paused for a moment, then smiled again and said to Wu Yuchen, "Wu, I don't think that's necessary. We can discuss it."

"With an overseas box office of 4.5 million, this is the result that 'The Sixth Sense' deserves!"

"Impossible, that's too high a score, there's no way we can negotiate, 3.5 million."

"4.4 million, I think Sony would be willing to buy the distribution rights at that price!"

"No, no, no, we at Disney do not agree to sell it to anyone else. $3.6 million is the highest price we can offer!"

At this point, the two lost their initial composure and began to argue heatedly about the price, their faces flushed and necks red.

Ultimately, Disney agreed to use $3.5 million in North American box office revenue and $3.9 million in overseas box office revenue as the calculation price.

Based on this standard, the two parties then negotiated the price of overseas distribution rights for 1 million; the price of global discs and videotapes for 1.2 million; and the price of other copyrights such as television rights and related licensing for 3000 million, which totaled 2.5 million.

However, it's not that Disney has to pay 25 million to Miracle Films. Since Disney itself also holds a 2.5% stake in the investment, Miracle Films will receive 75% of the 2.5 million, which is 1.875 million.

In addition, there's the North American box office revenue share. Because "The Sixth Sense" features Wu Yuchen and Bruce Willis, and with Disney's influence, the studio's share of the box office is quite high. The 3.5 million yuan box office averages out to about 66% for the studio, which is 2.3 million yuan.

Then, of that 2.3 million, Wu Yuchen gets 10% of the North American box office revenue, which is 3500 million. Disney gets 12% of the distribution fee, which is 4200 million. After deducting these, 1.53 million is left.

Then, after deducting Disney's 6100 million for publicity expenses from this 1.53 million, the production company will only have 9200 million left.

That's not all. Miracle Films will also split the profits with Disney again, taking 75% of the 9200 million, leaving them with 6900 million.

In other words, of the $3.5 million box office revenue in North America, Miracle Films only earned $6900 million. If the $4500 million investment is deducted, the profit would be $2400 million.

Of course, the total revenue is much higher when you factor in the total. Miracle Films can earn 2.56 million yuan, and Wu Yuchen will personally receive 3500 million yuan. That's a whopping 2.91 million US dollars in revenue!

So you really do have to rely on selling copyrights to make money!

At the time, Disney couldn't pay in full at once, so they followed the contract and made payments in installments. The first installment was 8000 million, and the remaining amount would be settled over the next six months.

Wu Yuchen sighed inwardly. His film "The Sixth Sense" had grossed 7.4 million yuan, which was quite a high box office. However, his Miracle Films, which invested 75% of the company, only earned 2.9 million yuan, less than 3 million yuan, including his personal share.

Spielberg's "Jurassic Park" only grossed $9.7 million, but he received $2.5 million in royalties from the full copyright!
This shows just how powerful the distribution channels of the seven Hollywood studios are!
He's now really focused on the full copyright revenue sharing, and he'll be planning to do just that for his next project.

Currently, only a handful of people in Hollywood can receive full copyright revenue, such as Tom Cruise, who is currently the most popular actor in Hollywood, and he received full copyright revenue for Mission: Impossible.

Seeing Wu Yuchen's expression, Miles couldn't help but say, "Wu, aren't you happy enough after making so much money?"

Wu Yuchen glanced at Miles. This time, Disney had essentially bought out all the subsequent revenue rights of "The Sixth Sense." Although Disney only invested 25%, he felt that Disney would earn more through distribution channels and operations than he had with his 75% stake.

Wu Yuchen shook his head and said, "I'm very happy, Miles, but I think Disney will be even happier!"

Miles seemed to understand what Wu Yuchen meant, and said with a smile, "Wu, in Hollywood, don't even think about comparing yourself to the Big Seven. The power of the Big Seven is not something that a single person or a few people can contend with!"

(End of this chapter)