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Chapter 65 Negotiation 3
"It's an invitation. It's not that the audience can't understand non-linear narratives; they just don't want to watch non-linear narratives that seem inexplicable."
The non-linearity of "Eternal Sunshine of the Spotless Mind" has an inherent emotional logic—
During Joel's memory erasure surgery, his subconscious mind takes him back from his most painful memories to his most beautiful ones.
This isn't about showing off skills; it's about serving the emotional connection.
Following this structure throughout the story creates an empathy that linear narratives simply cannot achieve.
Catherine put down the stirring spoon and looked at him intently.
"Go on."
"The Market Potential for Art-house Romance Films"
Two of the three highest-grossing independent films in the past five years were art-house romance films.
"The English Patient" cost 96 million, and "Shakespeare in Love" cost 100 million; both of these are period dramas.
"Eternal Sunshine of the Spotless Mind" is set in a modern world, making it easier for readers to immerse themselves in the story and reducing costs.
If the production budget for Focus is kept under 12 million, and an additional 6 million is invested in marketing and promotion, the total budget will be 18 million.
If you can reach $40 million at the North American box office, you'll break even.
My prediction for this film is that it will gross at least $50 million in North America.
"What makes you so sure?" Catherine's tone wasn't sarcastic, but rather curious.
"Based on the script," Fang Yuan said. "What did you feel when you finished reading it?"
Catherine remained silent for a few seconds.
She picked up her latte and took a sip, leaving a light-colored lip print on the cup.
"I've thought about it for a long time," she said.
"If I forget someone, would I want to get to know them again?"
"Everyone can do it," Fang Yuan said.
"That's the logic behind this film's box office success. It's not sold to people who like science fiction, nor to people who like art films; it's sold to everyone who has ever lost someone."
This market is larger than the audience pool for any other genre of film.
Catherine put the cup back on the table, crossed her arms, and rested her chin on her hand, thinking for a while.
"Mr. Fang, I like you as a person. But liking is one thing, business is another."
The budget for Focus is limited, so I can't give you a high percentage for the revenue share.
My initial proposal for you is: an advance payment of 400,000 yuan, and a 5% share of the net profits.
There was no share of total revenue, and no producer title.
Fang Yuan shook his head. "Catherine, the net profit share is zero for me."
I've already made this clear to both Fox and Columbia.
"That's them," Catherine said.
"They have other projects from big studios to spread the risk, but I make independent films, and every penny has to be accounted for. A revenue-sharing model is not an option for me."
Fang Yuan thought for a moment and changed his strategy.
"Then I'll try a different approach. I don't want an advance payment, or I'll just take a symbolic advance payment, like 10,000 yuan."
You invest all the money you save into production. My share comes entirely from the backend—15% of total revenue and 5% of net profit.
In the initial stages, I won't tie up any of your cash flow.
Catherine shook her head.
"This approach won't work at Focus. Our investors require every core member of the project to receive an advance payment; otherwise, they feel you lack commitment. It's absurd, but that's the rule."
Fang Yuan was silent for a few seconds, then offered a new combination:
"An advance payment of 150,000, 10% of the total revenue, and 5% of the net profit. That's a total of 15% of the production rights. In addition, I have veto power over the director."
Catherine frowned. "Ten percent of the total revenue?"
"right."
"That's outrageous."
"Do the math," Fang Yuan said. "If this film grosses $50 million at the North American box office, the total revenue will be around $80 million—after the theater revenue share, plus television, DVD and other sales channels."
Ten percent of the total revenue is eight million. It seems like a lot, but you're using eight million to buy the script, screenwriting services, and production management for a film that cost twelve million.
Calculate the return on investment.
Catherine did not immediately refute this, which shows that she was calculating.
"Let's look at it from a different angle," Fang Yuan continued.
"If the film only grosses ten million at the box office, and the total revenue is around twenty million, my share will only be two million."
After deducting the 150,000 prepayment, you actually paid me less than 2 million.
This price isn't too expensive for a good independent film script, is it?
Catherine remained silent for a long time.
The jazz music in the café changed, and the deep sound of a saxophone filled the air.
"Eight percent of total revenue and three percent of net profit."
"An advance payment of 300,000. I can give you the director's veto power, but your veto power cannot exceed that of the investors."
Catherine presented her counter-proposal.
Fang Yuan quickly did the calculations.
Eight percent plus three percent, the overall equity translates to approximately eleven to twelve percent.
Even with the 300,000 yuan advance payment, it's still far from his initial 15% target.
"Ten percent of total revenue, four percent of net profit. Advance payment of two hundred thousand."
As you said, I retain your right to recommend, but the final selection must be approved by me.
Additionally, I will be participating in the Toronto International Film Festival premiere as a producer.
Catherine picked up the latte, but didn't drink it; she just held it in her hand.
Nine percent of total revenue, four percent of net profit. Advance payment of 250,000.
You can come to Toronto, but you'll have to pay for your own travel and accommodation, or it will be deducted from your prepayment.
"Nine-five percent of total revenue, four percent net profit. An advance payment of $250,000. You'll cover the travel expenses to Toronto."
Catherine put down her cup, held out her hand, and said, "Deal."
Fang Yuan grasped her hand. "Deal."
The final terms of all three contracts were finalized in a full sixteen days.
Fang Yuan in Ellie's office one by one
I went through the final version of every document, confirming every number, every appendix, and every definition clause.
Phone Booth, 20th Century Fox: $1.2 million upfront payment, 15% of total revenue share, distribution fee percentage reduced by two percentage points after North American box office exceeds $50 million and directly converted into Fangyuan's increased share.
The title of producer includes the power to veto the casting of the male lead and the right to make suggestions on post-production editing.
The overall equity conversion shall not be less than 19%.
"Identity", Columbia Pictures: $1.2 million upfront payment, 15% of total revenue share, which will automatically increase to 20% after the North American box office exceeds $80 million.
The title of co-producer includes the right to negotiate casting, the right to negotiate editing, and the right to offer suggestions on the director's selection.
The overall equity is calculated to be between 18% and 23%.
"Eternal Sunshine of the Spotless Mind", Focus Features: $250,000 advance payment, 9.5% of total revenue, and 4% of net profit.
The title of producer, the director's veto power (limited by the investor's recommendation right), and the attendance at the Toronto International Film Festival as a producer.
The overall equity is estimated to be between 13% and 15%.
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