Who are you calling "little fresh meat"? I'm the king.

Chapter 773 Seeking a Buyer (34)

On August 8th, North American time... A Quiet Place Part II grossed over $140 million in two weeks.

It successfully continued the series' box office miracle.

The first film cost $2800 million; the second film cost $3200 million…

And the third installment has already been approved!
In other words, besides the Purge, A24 has discovered another gold mine!
Adding to the $1.17 million gross of "Split" earlier this year and "A Man Called Ove," the North American box office totaled $1.57 million...

A24 already has three films that have grossed over $100 million at the North American box office this year!
There's also "Hereditary," which grossed $7400 million in North America...

The film "Lights Out" grossed $6784 million at the North American box office...

It ranks fourth in market share, higher than Paramount and Sony…

These films were all approved as independent films or independently released.

Without a doubt, A24 has become the benchmark for independent films in North America.

What to do next?
Entering the publishing business?

Build your own distribution network…

This is a bit difficult, but not impossible!
Now is the perfect time for North American independent film companies to venture into the distribution business.

Under the impact of new media, the market share of traditional distribution is declining, the media ecosystem has undergone tremendous changes, and tech giants such as Netflix, Amazon, Facebook, and Google have changed the way media content is consumed and dominated online distribution channels.

The Hollywood Big Six's monopolistic distribution methods are starting to lose popularity!

A new model is about to be implemented, where mainstream cinemas will bypass major film distributors and sign agreements directly with independent producers…

Moreover, A24 also meets the conditions for signing the contract—the annual production needs to be increased to more than 15 units!
However…A24 produces at most two or three mainstream commercial films each year; the majority are niche independent films…

This is a concern from the cinema chains…

A24 typically selects Los Angeles and New York for early screenings. The reason for choosing this distribution method is that audiences in these two metropolitan areas can drive a wave of moviegoing.

Indie films first have limited screenings in New York and Los Angeles, achieving high attendance and positive word-of-mouth, and then are gradually rolled out to major cities in North America, where box office success follows!

Basically, every film has a distribution contract with theaters...

I've gotten used to doing it this way...

Daniel Katz is reluctant to sign distribution contracts with major theater chains, fearing that doing so would corrupt the company.

David Fenkel's attitude is indifferent. He is now more responsible for the business of Spark Studio. Although he retains about 10% of A24's shares, he is almost completely uninvolved in the company's day-to-day operations and management.

The other founder, John Hodges, wanted to embrace the mainstream!

David Fenkel simply asked Shen Yan, the company's major shareholder, for his opinion. After listening, the latter shook his head decisively: "Are you crazy? Embrace the mainstream... Embrace the mainstream? Why didn't I just invest in a mainstream film company back then? I invested in A24 because I valued the company's uniqueness... Tell Daniel that I support him!"

David Fenkel added, "But John Hodges's idea also makes sense. If we keep insisting on being independent and niche, our films will never be released in China, and we will lose the world's largest market!"

"...Then ask him, what makes him think A24 can compete with major studios in the mainstream commercial film market? Star resources, script resources, even relationships with the government..."

"OK, I understand!"

David Fenkel changed the subject: "Amazon offered $6.35 million... Netflix, on the other hand, raised it to $8 million..."

"Still the same conditions?"

"Correct!"

Shen Yan wants to sell his shares in A24, and many companies are interested…

Of these, Netflix and Amazon are the most interesting!
However, Netflix's acquisition condition was that once the acquisition was completed, A24's business should be moved online as much as possible...

Yes, it's online movies... "...Netflix is ​​too domineering. Don't worry, although I'm going to liquidate my shares, I will definitely respect Daniel's principles..."

David added, "Annapurna Pictures is also interested!"

"Annablina? It's not bankrupt yet?"

"...Not yet, after all, we have a big financial backer!"

“I don’t quite agree with Megan Ellison’s business philosophy,” Shen Yan paused, then added, “However, if she offers a similar price to Netflix, I would consider her…”

"Okay, I'll keep following up!"

……

Oh, Shen Yan has decided to sell his shares in A24!

The reason is simple—it's time.

Independent film companies are no fun...

A single loss-making film can push a company to the brink of bankruptcy!
Moreover, the future lies online.

Data shows that since 2020, the way movies are released has shifted significantly to streaming media, and currently, in the United States, theatrical films account for only about 7% of film and television revenue.

The majority of the rest of the revenue comes from online media such as Netflix.

However, A24 is a traditional film company whose primary focus is theatrical distribution…

At present, the momentum is strong.

If we don't sell it now, it'll be stuck with us for a few more years!

However, one shouldn't sell blindly; it's better to create an image of holding out for a higher price, ideally waiting until awards season—A24 has four films this year aiming for awards season: *Manchester by the Sea*, *Moonlight*, *Room*, and *Call Me by Your Name*…

It's almost certain that Best Picture, Best Actor, and Best Actress will all be won!
Then... Shen Yan's A24 shares will definitely be more valuable then.

Why so sure?
Because his biggest rival, Harvey Weinstein, is about to experience a turning point in his life in September, and then the Me Too movement erupts…

Shen Yan herself was actually a little reluctant to part with it...

After all, it was a situation that I had built up little by little...

However, selling it to Megan Ellison is also a good thing, since Megan Ellison's Annapurna is practically dead...

Megan Ellison could definitely afford the shares in Shen Yan's hands. After all, she is a top-tier rich second-generation. Her father is Larry Ellison, the founder of Oracle, who has been ranked in the top ten of the Forbes rich list for many years!

In the 2024 Forbes Billionaires list, Larry Ellison ranked fifth with a net worth of $1410 billion…

Megan Ellison, like her brother, loves movies!

Her brother's name is David Ellison, who prefers big-budget commercial films. He works for Skydance Media, which later acquired Paramount...

Megan Ellison is more idealistic. Annapurna has made many good films such as "American Hustle" and "Her", and has long collaborated with James Cameron's ex-wife Kathryn Bigelow, producing hardcore films with female creators such as "Zero Dark Thirty" and "Detroit".

However, in recent years, Annapurna has suffered various losses. For example, *The Sisters Brothers* had a production cost of $3800 million but only grossed $100 million in North America; *The Sisters Brothers* had a production cost of $3000 million but only grossed $1300 million worldwide, with $314 million in North America…

However, Shen Yan wasn't worried about her not having money...

After all, he has a wealthy father to support him!

Moreover, A24 is operating well…

(End of this chapter)