Hollywood Hunter

Chapter 308: Skyrocketing sales

Los Angeles.

Daenerys Entertainment Division in Burbank.

The time is Friday, December 1.

"The Mark of Gucci" collected $9.55 million in its first week with 532 screens. This documentary, which was originally just for publicity and not profitable, far exceeded everyone's expectations at the box office. Ira Deutschman started right away. Preparing to increase the number of screens for this documentary.

However, Gucci has made a decision that is difficult for him to accept. The North American screening of "Gucci Mark" will always maintain the scale of 532 screens, and no more screens will be added.

In the first week of "Gucci Imprint", it only relied on 532 screens to collect USD 9.55 million, and word-of-mouth and popularity are also rising. If the number of screens is gradually expanded to around 1,000, the total box office of this documentary in North America will certainly easily exceed 50 million. Dollar.

Now, if only to maintain the scale of 532 screens, the total North American box office scale of "Gucci Mark" is likely to be only 40 million US dollars, which is at least 10 million US dollars in box office gap between the two.

In comparison, because the preliminary work has been done enough and an additional 500 screens are added, Gaomen Pictures only needs to pay $500,000 in copy and transportation costs.

"Ella, this is actually a decision made by Mr. Westero himself."

In Ella Deutschman’s office, Angela Ahrendz, the president of Gucci America, who came to Los Angeles to discuss the follow-up promotion of "Gucci Mark" in person in Los Angeles, faced Ella Deutschman again The expressed doubt, explained in this way.

When Ella Deutschman heard that Simon had decided not to increase the number of screens of "Gucci Mark", he immediately dispelled the idea of ​​persuading Gucci to change his mind.

Before the formal signing of the entry agreement, Ella Deutschman and Simon had a face-to-face in-depth discussion. Simon clearly told him that although his salary agreement has a 5% net profit sharing clause of Gaomen Films, Gaomen The operation of the film industry must still obey the interests of Daenerys Entertainment as a whole, and the internal coordination and cooperation mechanism of the company will not change.

The same is true for other companies that have expanded to the entire Westeros system.

Ella Deutschman’s salary plan has a 5% net profit sharing clause of Gomen Films. However, because of Simon’s requirements, he is destined to not put Gomen Pictures first in everything, let alone May make Gaomen Films its own private domain.

Ella Deutschman was squeezed out of New Films by several partners. Now, his power and salary in Hollywood are beyond the reach of the previous partners. He is very satisfied with this, so he does not resist Simon's decision.

He did not dare to resist.

Also working here in Burbank, Ella Deutschman can feel how uncomfortable Robert Rem’s time has been.

After an attempted job hopping, Simon did not drive him out of the company, and paid for him to purchase the Manhattan real estate.

However, Rem, who was originally the third person in Daenerys Entertainment after Simon and Pascal, is now divided into three powers, and Pascal has clearly begun to intervene in the company's distribution issues.

It is conceivable that as long as Pascal completes the takeover of the company's distribution network, Rem will be completely marginalized and can be kicked out at any time.

What makes Rem even more uncomfortable, with Daenerys Entertainment's current influence in Hollywood, if Simon does not let go, he will have nowhere to go. Rem is already in his 50s this year. After leaving Hollywood, it is impossible for Rem to switch to another job.

Therefore, clearly knowing that he is being marginalized, Robert Rem not only can't resist, he must complete his work with due diligence, so as not to be dismissed early.

After completing the three-year term of the contract, the two sides broke up peacefully. Rem can continue to find other jobs. If he is kicked out of the company early, Hollywood will now have no place for him.

Ella Deutschman didn't want to fall into Rem's situation.

However, Ella Deutschman still did not understand Simon’s decision and asked Ahrendz: “Angie, I understand that Gucci’s production of "Gucci Mark" has no intention of making a profit, but as a branding documentary, should we Shouldn't more people see it?"

"Ira, Gucci is a luxury goods company. This destined that our company's products are not for the general public. If "Gucci Mark" does not sell well, we will definitely hope that more potential consumers will see this documentary. Now , We hope to create a state where everyone knows this documentary but not everyone can see it, so that Gucci can keep a distance from the public and maintain its own brand style." Angela Ahrendz said , Handed a follow-up marketing plan to Doicman, saying: "Therefore, Gucci intends to increase the publicity budget of 3 million U.S. dollars to expand the visibility of "Gucci Mark" as much as possible."

Ella Deutschman took the information and made simple mental arithmetic in his mind.

If you don’t increase the number of screens, based on "Gucci Mark"’s US$40 million North American box office calculation, and excluding all costs, Gucci’s future profit from the box office will be about US$3 million.

Gucci obviously intends to put all the proceeds generated by this documentary into the promotion of the brand.

Thinking of this, Ella Deutschman inevitably asked curiously: "Anji, can I ask, how is Gucci's revenue during this period?"

Angela Ahrendts smiled and nodded, and said, “I’m not sure about overseas. In the United States, Gucci’s sales last week was 8.03 million U.S. dollars, an increase of 51% compared to the previous week. Break through 10 million U.S. dollars."

After hearing this, Ella Deutschman suddenly understood why Gucci would willingly give up the box office revenue of "Gucci Mark".

The profit margin of luxury goods is very high, but on the Gucci American side, the gross profit generated by one week of sales probably exceeds the money Gucci can make from the box office of this documentary.

As the president of Gucci's American branch, Angela Ahrendts is more able to directly appreciate the boost effect of "Gucci Mark" on the sales of Gucci products.

The end of the year is the peak sales season. If there is no "Gucci Mark", weekly sales in North America will basically remain at around US$5 million, which is enough for Gucci America to exceed the sales target of US$150 million this year.

Now, affected by the release of "Gucci Mark", sales in Gucci stores have increased significantly.

The US branch originally expected sales in December to be between 20 million and 25 million US dollars, but now it is expected to reach 40 million. Not only does it far exceed expectations, it also pushes the total sales of Gucci US branch this year to 1.7 One hundred million U.S. dollars.

Because of the rapid improvement in Gucci's performance, many media have recently discussed that the Gucci family made a huge loss in business early this year.

According to Daenerys Entertainment's $170 million purchase of 63% of Gucci's equity, the company's valuation at the time was only $270 million. In less than a year, many media believe that the value of Gucci has soared to $1 billion.

After talking about this, Ahrendz and Deutschman began to discuss the follow-up promotion of "Gucci Mark".

More than half an hour later, after the talk was over, Ahrendz was saying goodbye to Deutschman outside the office. Today, she wore a black short trench coat and stepped on black boots. Madonna, who was a bit queen, turned around from the stairs.

Angela Ahrendts naturally met Madonna. After the two enthusiastically embraced each other and greeted each other, Madonna said: "I also said I want to call you at night, Angie, the black metal buckle handbag that was just launched recently. , Can you help me find one? Los Angeles is out of stock. I asked them to buy it in New York, and the specialty store over there said no, which is really bad."

Angela Ahrendts explained: “This is a limited edition based on a recent documentary. There are only 100 in total. There are 30 stores in North America, and they didn’t have them last weekend. However, I can get people from Europe brings you one."

"Thank you, Angie, you are so kind," Madonna asked again, holding Ahrendz's arm, "but since it's so good, why not produce more?"

Angela Ahrendts smiled and said: "If there are too many productions, it will not be called a limited edition. These 100 handbags are all numbered. There are only 100 in the world. There will be no more than one, and no less."

Madonna certainly didn't know what a limited edition is, but she just made a joke casually.

The two agreed that Angela Ahrendts would leave without mentioning any money from beginning to end.

The handbag that Madonna asked for is priced at US$2,999, which is 10 times the price of some basic Gucci handbags.

Gucci cannot be compared with the “king of handbags” Hermès in the field of handbags. The price of high-end handbags in the past was around US$1,000. This handbag priced at US$2,999 can be described as a very cautious attempt by Gucci to hit the higher end. 100 were produced.

In order to avoid embarrassing situations such as slow sales as much as possible, this 100 handbags will also be sold in various markets in North America, Europe and Asia.

The result of the attempt is obviously very good.

The 30 handbags placed in North American specialty stores were actually sold out quickly on Saturday morning, and now nearly a week later, there are still celebrities like Madonna who have been obsessed with it, indicating that this handbag is also very successful in publicity.

Gucci previously gave this limited edition handbag to several actresses who have worked closely with Daenerys Entertainment for street photography. Although Madonna attended the last Gucci show, she was not here. Column.

However, Madonna took the initiative to ask for it, and Angela Ahrendts did not hesitate at all. Gifting the handbag to the singer would definitely be of great benefit to the Gucci brand promotion.

Madonna will naturally not appear on Burbank's side for no reason.

Angela Ahrendts left, and Ella Deutschman and Madonna came to the office and sat down.

"Magne, with regard to your next year's concert documentary, Gaomen Pictures can take over this project. However, your $2 million advance payment plus a 40% profit share, unfortunately, I can't agree. "

Last time Madonna and Simon talked about making a documentary about her global tour next year in Milan.

Simon's performance was neither lukewarm nor hot, but Madonna kept it in her heart.

After the success of "The Mark of Gucci" last week, Madonna asked her agent to have preliminary discussions with Ella Deutschman. She is a very shrewd woman. After understanding the success of "Gucci Mark", Daenerys Entertainment will definitely not mind taking over another similar documentary.

Moreover, because of "The Mark of Gucci", it is certainly easy for Hollywood to attract investment for this type of documentary, but because of a young man who has continuously performed miracles, Madonna is very firmly convinced that he should cooperate with Daenerys Entertainment.

"Ira, "The Mark of Gucci" should be able to recover $50 million at the box office. This is only in North America. I believe that my concert documentary also does not lack this potential. Therefore, the advance payment of $2 million is increased by 40%. This is very reasonable."

Ella Docman shook his head and said: "Music documentaries and fashion documentaries are different. Michael Jackson's "Shadow Dancer" four years ago, you must know that MGM arranged 906 yuan for that documentary. It can be said to have high hopes for the opening of the screen. But it only got 4.21 million US dollars in the box office.

Madonna looked at Dojman and smiled: "Ira, MGM has fallen, and it is difficult for them to do anything well. Everyone knows this."

"Well, Maggie, let me just talk about the terms of cooperation that Gaomen Pictures can accept," Ella Deutschman no longer had too much nonsense with Madonna, said: "The budget for this documentary is preliminary. Calculated at US$3 million. We have two plans, one is the cooperation model between Gaomen Films and Gucci. Gucci participated in half of the investment in "Gucci Mark" and paid the publicity fee in advance, so it enjoyed the corresponding share. The film industry draws 15% of the distribution commission from the income of various channels."

Madonna also knows that Gucci does not expect to make money when making "Gucci Mark", only to promote the brand, so she spares no effort to invest. She has seen the cost figures of "Gucci Mark" in some recent newspapers. A total of 10 million U.S. dollars in production and publicity budget, Gucci put out 7.5 million U.S. dollars, she is not willing to bear this risk.

"What about the second one?"

"The second is the prepayment plus profit sharing model you proposed. Daenerys Entertainment bears all the production and advertising costs, but I can only give you a prepayment of $500,000 plus a 20% profit share."

Madonna's original advance payment of 2 million US dollars is roughly equivalent to buying out the copyright cost of this documentary. Ella Deutschman compressed the prepayment to $500,000 at this time, which is equivalent to Madonna's current salary level.

After thinking about it for a moment, Madonna said: "One million dollars, 30% of the profit."

Ella Deutschman shook her head and said, "Up to 20%."

Madonna seized Deutschman's words and said: "Okay, $1 million, 20% of the profit."

"Maggie, I mean $500,000 plus a 20% profit share. You have to understand that if you don't choose the first option, Gaomen Pictures will bear all investment risks."

Madonna insisted: "US$1 million plus a 20% profit share. This is my bottom line. Ella, if you disagree, I will go to other film companies to cooperate."

With a distressed expression on Ella Deutschman’s face, he hesitated for a moment, and then reluctantly got up and reached out to Madonna, saying: "Well, Maggie, let's make a deal."

Madonna got up and shook hands with Dojman. After sitting down, she felt that if she persisted a little longer, she should be able to get more.

It seems that Ella Deutschman shouldn't be so good at talking. Everyone in the circle knows that he likes to give people an ultimatum.

this time……

Suddenly the figure of a certain fellow came to mind, and Madonna suddenly regretted it even more.

Sure enough, I should stick to it.

However, despite regret, Madonna did not regret it. The $1 million advance payment plus a 20% profit share should also be the final plan acceptable to Gaomen Films.

Think about it carefully, Madonna is not too extravagant to expect the box office level of "Gucci Mark". After all, there is a failure case of "Shadow Dancer", but as long as the North American box office of this documentary can reach ten to twenty million US dollars, she will total it in the future. To get millions of dollars in income, this is also a lot of income for her.

Moreover, although there is no extravagant hope, who dares to say that it is impossible.

The team predicts that her box office revenue for next year's concert should be able to exceed 50 million U.S. dollars, and she personally gets 40%, which is 20 million U.S. dollars.

If the concert documentary under the management of Simon Westeros can really be as good as "The Mark of Gucci" at the box office, only 20% of the omni-channel revenue of this documentary can catch up with the income brought by the concert itself.

This is the fundamental reason why Madonna did not choose other Hollywood studios that can give her more advance payments.

Although shrewd, Madonna does not lack this adventurous spirit.

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