It's reasonable for me to be a three-time Golden Horse Award-winning director and an all-around

Chapter 96 Let's go! Let's clash with "A World Without Thieves" and "Kung Fu Hustle"!
Lu Rui knew perfectly well that in Hollywood, distribution companies were the "dominant forces"!
Especially for small production companies like Ruixing Films, which have little cinema resources, they are naturally at a disadvantage when facing distribution companies.

His negotiations with other companies over the past few days have further solidified his belief in this point.

Production companies want to gain the upper hand over distribution companies, but unless they can reach the level of Spielberg or Cameron, they will be exploited.

Following Sarah into the Lionsgate publishing department conference room, Lü Rui sat down without speaking, quietly waiting for her to speak first.

Sarah didn't beat around the bush; she had her assistant bring over a few cups of coffee and said directly:
"Lionsgate has two strategies for external distribution: one is to only calculate revenue share, which is higher; the other is to calculate advertising and distribution expenses separately and deduct them later, which is lower. Lv, which one do you prefer?"

Lu Rui pressed further, "Could you tell me the details?"
“Of course.” Sarah picked up her coffee, took a sip, and crossed her arms. “If we only consider the distribution commission, it’s 40% of the total revenue.”

The latter commission can be as low as 25%, but costs for film promotion, distribution, copying, transportation, management, and insurance will be calculated separately.

Upon hearing this, Lü Rui was already cursing under his breath.

Sure enough! All crows under the sky are black!

Distribution companies rip off production companies; it's the same everywhere!
"No, we have to find a chance to turn things around."

Lu Rui pondered to himself, quickly searching for a breakthrough that would be advantageous to him.

Negotiation is inherently a back-and-forth process, where one uses their strengths to exploit the other's weaknesses.

Based on his interactions with other companies over the past few days and his understanding of Lionsgate, he quickly found a starting point: "Madam, as far as I know, Lionsgate doesn't seem to have overseas distribution capabilities?"

Sarah didn't directly admit it, but only said, "We are gradually expanding our overseas business."

Lü Rui simply assumed that it didn't exist.

Based on this, he went on to say, "If we're only targeting the North American market, a 40% commission is too high."

My goal is global distribution. Partnering with Lionsgate would mean finding other partners, which is too complicated and detrimental to the film's future development.

He specifically emphasized, "I had previously spoken with Warner Bros., and their offer was a 30% cut, plus the option to promote the film overseas."

The meaning of this statement is very clear: I don't need you.

Like the Chinese entertainment industry, Hollywood has no secrets.

Sarah was naturally aware of the relationship between Lu Rui and Warner Bros.

The two sides are currently collaborating on a Sino-foreign co-production and are in a "honeymoon period".

Sarah smiled. She knew Lu Rui was telling the truth, but she was also aware of the drawbacks of publishing through large companies.

"Lv, if I'm not mistaken, even if Warner Bros. agrees to distribute it, the release date will be at least next year or later, right?"

Lü Rui did not deny it.

Big companies focus their distribution efforts on blockbusters, so horror films like "Insidious" don't have much of an advantage, and Warner Bros. won't invest too many resources in them.

Sarah took the opportunity to explain their own advantages: "Lionsgate made its fortune with horror and thriller films, and has a unique advantage in this type of movie."

"If you choose us, we'll invest significantly more in promotional resources than Warner Bros., and we can also release the film earlier, allowing you to recoup your costs quickly."

Of course, the faster the funds are recovered, the better; time is also a cost!
Lu Rui pressed further, "How early can it be?"

"Once James Wan's 'Saw' has stabilized at the box office, Lionsgate can move forward with 'Insidious,' which will be released no later than mid-December."

Lu Rui had to admit that Lionsgate was indeed the fastest!

Moreover, by doing so, they can maximize their profits.

Both "Saw" and "Insidious" are directed by James Wan. Releasing the two films back-to-back can naturally save a lot of money on publicity.

Lu Rui was satisfied with the timing, but the topic circled back to the beginning: "If we only focus on the North American market, a 40% commission is too high, I can't accept it."

He chose the first distribution model almost without hesitation.

Because in the second model, Lionsgate can easily manipulate miscellaneous fees.

If the accounts are inflated, the actual cost might be more than the 40% commission!

Without sufficient regulatory capacity, the second option is definitely not a good choice.

Hoping that Hollywood capitalists will have a change of heart? What a joke!
Even Wall Street's capitalists were completely outmaneuvered by Hollywood, let alone Ruixing Films, a fledgling independent production company.

"What are your terms?" Sarah asked, seeing how persistent he was. She simply let him state his terms.

Lu Rui said: "According to industry standards, the highest commission rate is 30% in North America and 40% overseas."

Sarah shook her head: "This standard is for successful sequels."

"What a coincidence, 'Lurking' is a film series. The scripts for the second and third installments have already been written. If Lionsgate is willing to make concessions, I can entrust the distribution of the sequels to you."

"Oh?" This piqued Sarah's interest. "May I see the script?"

“Of course.” Lu Rui instructed Peter to get his computer from the car.

Twenty minutes later, Sarah and the people from the distribution and production departments finished reading the script and sat back down in front of Lü Rui.

“35% in North America, and 35% overseas through Lionsgate.”

Lu Rui shook his head again, then opened another folder on his computer and revealed the script for "I Am Legend":

"This is our company's next action/horror film project, with an investment of $1.5 million. We have already reached an agreement with Warner Bros., and Lionsgate can also join if they are interested."

He played the "resource swap" card.

Want to trick me?
Then let's screw each other over!
Distributors rip off producers, and producers rip off investors – a perfect closed loop!
"I Am Legend" actually didn't need $1.5 million at all. According to Lu Rui's calculations, $6000 to $8000 million would have been enough.

As for the over-reported portion, it was naturally kept for them to make money.

Hollywood film production is mostly done in a "mixed-up" format.

An investment of US$1.5 million, equivalent to more than RMB 12 billion!

Lu Rui himself couldn't handle it; he planned to continue down the "win-win cooperation" route.

$1.5 million?
A project in collaboration with Warner?

Sarah became interested and turned to discuss the matter with the production and distribution departments.

Like Harvey, Lionsgate's friendly attitude towards Lu Rui stems from their appreciation of his creative and directing abilities.

The only European director in the world to have won all three major awards for Best Director – that's an amazing title!
Among Chinese directors in Hollywood today, Lu Rui is second only to Li An, who directed "Crouching Tiger, Hidden Dragon," and Wu Yu, who directed "Face/Off" and "Mission: Impossible 2."

Li An is currently collaborating with Paramount on "Brokeback Mountain," which is generating a lot of buzz and is a strong contender for next year's Oscars.

This time, Sarah was gone for a full half hour.

When she returned, she looked at Lv Rui with a complicated expression: "Lv, after evaluation, the production department believes that this script is of extremely high quality."

Lu Rui shrugged, nonchalantly: "Gone Girl, Mystic River, The Pursuit of Happyness, including my current project with Warner Bros., The Prestige, none of them are bad."

Sarah couldn't refute that.

Leaving aside "The Prestige," the first three films won the three major European awards.

Warner Bros. made a fortune with "Gone Girl" and "Mystic River".

Sony Columbia also profited handsomely after acquiring the distribution rights to "The Pursuit of Happyness".

Lü Rui's creative abilities have long been proven.

This can be concluded from the fact that Harvey repeatedly tried to cooperate with him, even resorting to underhanded tactics such as using his femininity to get close to him.

Sarah pointed curiously at the script for "I Am Legend" and asked, "When do you plan to launch this project? What percentage of the budget will Lionsgate get?"

“I talked to Warner, and our two companies can probably take about 70%,” Lu Rui said casually, though he hadn’t actually mentioned it to Warner at all.

But Lionsgate wouldn't go and confront them, would they?
As long as they want to participate, the initiative is in their own hands.

“30%, $4500 million... That’s a bit low, but it’s still okay.”

Sarah muttered to herself, then suddenly came to her senses.

Wait a minute! We're talking about the distribution of "Lurking" right now, how did it veer into project investment?

And how did the initiative end up in the hands of this Chinese director?

Seeing that Lü Rui had already crossed his legs, Sarah snapped out of her daze and quickly brought the topic back on track: "Let's talk about the release of 'Lurking' first."

Lu Rui smiled slightly and continued to exert pressure, taking the initiative and then lowering the price again: "20% in North America, 30% for overseas distribution; Lionsgate can give 30% of the investment share in 'I Am Legend,' and you can also participate in the subsequent distribution."

Sarah almost rolled her eyes.

This is absolutely outrageous!

Who haggles like that?
However, it is undeniable that Lionsgate does not want to give up on the "I Am Legend" project.

Having worked on many low-budget horror film projects, they have grown more ambitious and want to try big projects, but they are struggling to find suitable scripts.

Lu Rui's arrival provided them with an opportunity.

With Warner Bros. backing it up, this project should be secure...

Thus, a tug-of-war ensued between the two sides.

It's clear that a decision can't be made within a few hours.

Just then, a screening of "Saw" was about to begin, so Sarah invited Lu Rui to go see the movie first.

“Okay.” Lu Rui got up and followed her outside.

When the two stepped onto the red carpet and entered the screening venue together, they immediately attracted the attention of many media reporters.

Many reporters recognized Lu Rui and pressed him for his presence at Lionsgate's event.

Before he could speak, Sarah said, "Lionsgate has reached several cooperation agreements with Lv, and we will be launching new projects in the future..."

The scene erupted in an uproar!
The media clearly didn't expect that just attending a screening would lead them to uncover such a bombshell!
Lu Rui glanced at Sarah, who was enthusiastically sharing the news, and without contradicting her, he tacitly accepted the statement.

He's also very adept at using each other and creating hype.

Moreover, doing so would be entirely beneficial to him.

Attracting the attention of other companies...to better advance the "I Am Legend" project...to earn more money...

Lu Rui secretly began to make plans in his mind.

...

The screening of "Saw" went very smoothly.

Although the film features a single setting, it accurately captures the horror style favored by North American audiences today. The novel subject matter, coupled with the terrifying "Jigsaw" setting, has scared many people into screaming!

On October 30th, Halloween eve, "Saw" was officially released.

It opened in 2400 theaters that night, grossing $160 million in midnight screenings. The following day, it expanded to 2941 theaters across North America for a full year of release, earning $717 million in a single day and topping the Halloween box office!
It has a 7.6 rating on LMDb, a 50% freshness rating on Rotten Tomatoes, and an 84% popcorn score...

North American audiences generally gave it a positive review, especially the general public.
Many people believe that this film, which cost only $120 million, has created a strong sense of suspense.

The confined space setting and plot twists are highly engaging. The "puzzle killer" concept is novel and incredibly oppressive. While the gore is direct, it serves the plot and is not simply a collection of sensational elements.

James Wan became famous as a result!
This laid a more solid foundation for the distribution negotiations of "Lurking".

After three days of back-and-forth negotiations, Lü Rui finally reached an agreement with Lionsgate.

Lionsgate takes a 28% cut of the box office revenue from the North American theatrical release of "Insidious" and a 32% cut from the overseas distributor, with all distribution-related costs included.

At the same time, Lionsgate will acquire a 30% investment in "I Am Legend" and a 25% North American distribution share in subsequent releases...

Lionsgate has also been responsible for the distribution of subsequent works in the "Infiltrator" series.

In addition, a 20% cut is taken from the distribution of videotapes, DVDs, new media, and television rights, and a 30% cut is taken from revenue from derivative products…

The contract was officially signed on November 5th.

This also means that "Lurking" will officially enter the release stage and will be launched in the North American market in mid-December.

As for "I Am Legend", the two parties have only signed a preliminary investment agreement, since the project has not yet been officially launched.

Lu Rui previously claimed that he had reached an agreement with Warner for a 70% share, but that was just boasting; in reality, the two sides hadn't even discussed it at all.

However, he does not plan to talk to Warner Bros. immediately, but wants to wait until "The Prestige" is released.

Cooperation is often based on repeated successes; only when the previous project is successful can the next one proceed smoothly.

If "The Prestige" flops, it won't be easy to continue working with Warner Bros.

Like Wu Yu, although "Face/Off" and "Mission: Impossible 2" achieved great success, "Windtalkers" completely ruined his career, making it impossible for him to stay in Hollywood.

Li An was the same.

After the huge success of "Crouching Tiger, Hidden Dragon", he got the "Hulk" project.

As a result, the film failed at the box office, forcing him to return to low-budget projects and take on the role in "Brokeback Mountain".

Lü Rui is in a similar situation now.

If The Prestige is successful, the progress of the I Am Legend project will be very smooth.

Of course, "Lurking" is also a bonus.

If this project succeeds, it can also help him gain more trust in the Hollywood market.

There's not much to say about the distribution side; just keep working quietly. Once the contract is signed, Lionsgate will immediately move forward...

But Lionsgate really promoted the "I Am Legend" project extensively!
If the project hadn't been approved yet, they would have loved to hold a press conference and a live signing ceremony.

Even so, the news spread quickly throughout Hollywood!
"Following Warner Bros., Chinese director Lu Rui has once again partnered with Lionsgate!"

"I Am Legend! A multi-hundred-million-dollar investment project revealed!"

"The horror film 'Lurking,' produced and written by Lü Rui, has finalized a distribution agreement with Lionsgate!"

"..."

In an instant, countless eyes focused on Lionsgate.

At Warner Bros., even Alan Horn was alarmed!

He immediately summoned Lauren Megan and inquired about the details.

Lauren was also confused: "Boss, Lv has never mentioned the 'I Am Legend' project, but he did register the script with the Writers Guild."

Alan Horn paused for a moment, then instructed, "Keep an eye on his movements, especially the box office performance of 'The Prestige' in the Chinese market, and report back to me promptly."

"it is good."

At the same time, at Sony Columbia, Matt once again approached his boss and mentioned the collaboration between Lu Rui and Lionsgate.

The bald male boss reassured Matt, "Just wait a little longer. 'The Prestige' is about to be released, and we'll soon see his talent."

The six major Hollywood studios are confident and able to remain calm.

But at this moment, Harvey couldn't sit still any longer.

He was still planning to recruit Lü Rui, but Lü Rui turned around and signed a distribution agreement with Lionsgate, and also collaborated on a new project with an investment of over 100 million US dollars...

The fatty meat is right in front of me, but I can't eat it no matter what I do. This is so frustrating!
Unable to hide his frustration, he once again sought out his younger brother Bob to ask him if he had found out anything about Lü Rui's hobbies.
Bob frowned and said, "I've contacted his partner, Peter Griffin, and found out."

Harvey's eyes lit up, and he quickly asked, "What does he like?"

"house!"

"house?"

Harvey was about to mention that he owns several properties in Los Angeles and could give one away as a gimmick, but Bob added, "He has his eye on a multi-million dollar mansion in Beverly Hills."

"Fuck!!!"

Harvey started swearing.

Isn't that just too greedy?

……

Generally speaking, Hollywood's actions have little impact on the mainland.

But once it's associated with "Chinese directors," the situation changes!
Hollywood news, after being "embellished" by the media, quickly spread back to China:

Chinese director Lu Rui has reached a major cooperation agreement with Lionsgate! They will jointly develop a project with an investment of over 100 million US dollars!

"Hollywood horror film director James Wan collaborates with Lu Rui..."

“The B-grade horror film ‘Lurking,’ written by Lü Rui, will be released in North America next month through Lionsgate.”

"Lionsgate's 'I Am Legend'..."

"Warner Bros.' *The Prestige*..."

Sony Columbia Pictures issues Letter of Intent to Produce US Version of "The Pursuit of Happyness"...

Top news on portal websites!

Print media headlines!

Top headlines on Baidu Tieba forums!

At this moment, Lü Rui's popularity has already caught up with the explosive growth of Li An and John Woo in Hollywood!

More importantly, he established himself in Hollywood as a director, screenwriter, and producer.

This means that he has a certain degree of say in the project!
"Have you contacted him?" Han Sanping asked his secretary expectantly from China Film Group.

The secretary shook her head: "They should still be on their return flight."

Tell me as soon as you land.

After Han Sanping finished speaking, he stood up and headed straight for the distribution department.

"The Prestige" has passed censorship and, at Lü Rui's request, has been scheduled for release on December 16.

However, this news has not yet been released.

Han Sanping felt that with "A World Without Thieves" released on December 9th and "Kung Fu Hustle" released on December 23rd in front, he would probably be at a disadvantage if he were sandwiched between the two.

He originally wanted to wait until Lü Rui returned to have a proper talk, and if that didn't work out, he would postpone it.

But now, his confidence has suddenly soared!

Dry!
They're doing the same thing as "A World Without Thieves"!
They're doing it right, just like "Kung Fu Hustle"!
Both of these films were produced by Huayi Brothers, and he didn't hesitate to spend money on them!
(End of this chapter)