Hollywood: Lights, Ink, Entertainment!

…..

[Two Days Later - June 7th, 2010]

[Location - Red Pictures HQ ]

…..

Deonte Maravich - the President of Red Pictures Distribution, sat in the dimly lit screening room.

His gaze fixed on the screen as the climax of the film unfolded before him.

To his right was Regal - the film's director.

On his left sat Pete Harty, Film Acquisitions Executive of Red Pictures - the very person responsible for scouting potential films and conducting initial quality assessments before they reached the higher-ups.

Ironically, it had been Pete who rejected this very film when Regal had first approached the company, hoping for a distribution deal.

And yet, here they were now, watching it under vastly different circumstances.

A few rows behind them, two older men sat in silence, observing the screening with an air of quiet authority.

One of them is Stephen Sr., responsible for the screening.

Beside him sat - William Rush - the former CEO of Red Pictures, a man who had once overseen both the production and distribution divisions before they were split into separate entities.

More than that, he was the founder of Red Pictures itself.

….

Moments later, the credits rolled, and the lights came on.

Deonte Maravich stood up, prompting Regal and Pete to do the same.

He extended his hand toward Regal, offering a firm handshake - the second one today, after their initial meeting a few hours ago.

"That was a solid film, Mr. Regal." Deonte said evenly.

"I appreciate it." Regal replied simply.

Meanwhile, the two older men slipped out of the room without a word - their business here was done, and the rest was up to them to negotiate.

Deonte turned to Pete. "So Pete, what do you think? Was the film to your liking?"

His tone was neutral, devoid of praise or criticism, though beneath it lay an unspoken warning.

He wasn't about to reprimand his own employee in front of an outsider, but Pete understood the subtext clearly.

Pete stiffened. "...D-definitely, sir. It was impressive."

Standing beside them, Regal barely suppressed a smirk. Not out of pettiness - he wasn't the type to gloat over a previously rejected film now being reconsidered - but because the performance before him was so transparent.

Deonte and Pete were playing their parts well.

The firm but fair superior subtly corrected his subordinate in front of Regal to frame the past rejection as an oversight.

At the same time, Deonte was carefully distancing himself from the original decision, setting the stage to renegotiate as if the rejection had never happened.

It was a clever move. Regal could respect that.

If anything, it confirmed one thing - they were interested.

Still though, he wasn't about to let them have it so easy.

"...well, everyone has their own preferences, Mr. Deonte. Can't really fault them for that." He said casually.

"Right…" It wasn't the response Deonte was expecting.

With a single sentence, he flipped the script.

Instead of going along with Deonte's attempt to smooth things over, he subtly suggested that Pete still might not have liked the film - reinforcing that the past rejection was real and that this little performance wasn't going to change anything.

It was a quiet but firm pushback.

Deonte, unfazed, decided to keep up the act. He straightened slightly, slipping back into his professionalism.

"Now I see where the maturity in your writing comes from, Mr. Regal."

Regal didn't say anything at the sudden shift.

Birds of a feather, he thought to himself. That was the only thing that came to mind.

….

After this, the three of them relocated to a more formal setting - a boardroom, where negotiations would unfold properly.

They went over the details.

The number of theaters. The promotional budget.

…and, most importantly, the profit distribution between the director and the distribution company.

Regal has used the same strategy he used during his book launch.

He is obviously taking the percentage based deal.

Ordinarily, unless the director sells the film outright, standard deals heavily favor the distributor, often taking 70%-80% of share revenue.

However, Regal wasn't looking for a quick payout.

He was certain his film would exceed expectations, and with that confidence, he ensured he retained control, avoiding a full buyout.

The boardroom, however, was much colder than he had anticipated - far less receptive than the atmosphere he had encountered when negotiating his book deal.

The executives seated across the table assessed him with a precise, calculating intensity, their expressions shifting as they weighed the advantages and drawbacks of each point he raised.

Finally, the lead executive - a sharply dressed man in his 50s - tapped a pen against a thick folder and spoke.

"We like the film." He said. "We think it has potential. Five million dollars. Full rights transfer. Standard deal."

$5 million.

Regal had funded the film himself for half a million.

That meant a tenfold return on investment.

He acted as if he were considering it, letting the weight of the offer settle in the room.

His gaze drifted across the executives. None of them looked particularly tense. They thought this was already in the bag.

They had been through this before - sitting across from indie directors who were eager to see their films reach a wider audience, desperate for validation from a major studio.

Directors who would trade ownership for a lucrative payday without hesitation.

They had Regal pegged as one of them.

A self-funded filmmaker who had lucked into a strong film, just waiting to be bought out.

The kind they could acquire for a few million, repackage, and turn for a profit.

Alas, Regal wasn't one of them. He knew how this worked.

If Red Pictures secured full rights for a relatively modest sum, they would control everything - distribution, box office revenue, streaming, and international markets.

They would maximize its potential, reap the full rewards, and move on.

The only problem?

They were severely underestimating what they had.

The numbers were already crystal clear in his mind.

For Regal -

This wasn't a $10 million film.

It wasn't even a $50 million film.

This was a $100 million film… and with the current stats running through his mind, it might even be worth a little more.

They just didn't see it yet.

So Regal played his role - a man seemingly conflicted, hesitant, unsure, and someone willing to take a gamble.

Typically, indie films are bought outright for $1-$5 Million, giving distributors full control.

So he put forth what he wanted. "I appreciate the offer, really. But I was thinking more of a partnership rather than an outright sale."

The executives exchanged glances.

Performance-based meant they didn't have to commit to a high upfront payment.

It also meant they kept control, at least for the initial earnings.

But there is just one more thing - this wasn't what they planned.

"You mean a profit split?" one of them asked, skeptical.

"I am willing to take a risk alongside you." Regal said. "No big upfront check. I believe in the film. We split the earnings fairly, based on how it performs."

That got their attention.

He wasn't desperate. He wasn't pleading for a check. And that made them listen.

"Go on." one of them prompted.

Regal knew if he started too high, they would shut him down. If he started too low, they would see him as naive.

So he let them think they were winning.

"Something tired." He said. "If it underperforms, you get the majority. If it overperforms, we both win big."

He laid out the structure:

> If the film made less than $20 million, they would receive 75% of the box office - leaving him with roughly the same $5 million they had initially offered.

> If it landed between $20 million and $50 million, they would still hold the majority - 60%.

> Even if it surpassed $50 million, their share would remain at 55%.

> The tide would only shift if the film broke past $100 million - at that point, they would have to split it 50/50.

A tiered system that protected the distributor heavily in the beginning.

…and they bit.

They took the insurance rather than betting on the film reaching a fantastical box office performance.

They were convinced the film wouldn't reach the upper tiers.

"We can work with that." the executives nodded.

Even if it flopped or barely scraped past $15 million, they would walk away with a comfortable profit while leaving Regal with nothing.

Then, just as they thought they had locked him down, Regal spoke again.

"One more thing." He said. "Home entertainment and streaming - let's keep that simple. You can have 50% the first year. After that, it flips to 75/25 in my favor. After five years, I get full rights back."

"...." A pause.

One of them furrowed his brow. "You want full ownership after five years?"

"Yeah." Regal shrugged, like it was an afterthought. "I mean, indie films don't make much after a few years, right? I just want control for archival purposes."

That was a lie - or at least the second part.

It was true that most films made their biggest profits in the Blu-ray and DVD market during the first few years.

But Regal was looking ahead - He knew physical media would decline.

Streaming online platforms and OTT were the future.

And by regaining full rights, he could release the film wherever he wanted and keep every cent of the revenue.

"Fine…" one of them said with a dismissive wave. "Nobody's gonna buy Blu-rays after the initial release anyway."

Regal nodded. He had just secured millions down the line for free.

And now there was only one last thing.

He sat forward. "One last point - marketing costs. We need a cap."

At that, most of the executives who thought the deal was finished turned their heads in sync.

"You are saying we can't recoup marketing costs?"

"No, no." Regal said, shaking his head. "Let's cap recoupable marketing at $5 million. Anything beyond that will not be from my share."

That line earned a few smirks.

"No problem." It was accepted pretty easily and almost amusingly.

And Regal understood why?

Hollywood Accounting.

It was a method built to keep filmmakers broke - where studios inflated marketing costs, piling on 'expenses' so high that, on paper, a film never turned a profit.

But that trick was usually reserved for major blockbusters.

To them, his film wasn't even worth the effort.

"Good doing business with you." Regal said, sealing the deal with a firm nod.

"Likewise." - the executives exchanged looks of satisfaction.

All that was left now was to finalize the contracts with the lawyers and sign on the dotted line.

.

….

[To be continued…]

★─────⇌•★•⇋─────★

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