[Chapter 207: Box Office Failure]
On Friday, Guess Pictures released its first film of the year, The Underneath, in North America.
During its opening weekend, the film grossed $143,000 across eight theaters, averaging less than $3,000 per venue, which fell below expectations.
This performance was disappointing enough to warrant a pull from theaters, but Link didn't want to undermine director Steven Soderbergh's confidence. He insisted that the distribution team keep The Underneath in theaters.
After four weeks, the film had only raked in $783,000 from 143 theaters in North America, with an average attendance rate of less than 30%. It was projected to barely reach $1 million.
The production cost of the film was $1.2 million, and the marketing expenses were $500,000. To break even, it needed to earn over $2.5 million.
In short, the movie had flopped, resulting in over two million dollars in losses -- making it Guess Pictures' first financial failure.
...
News outlets quickly picked up the story. The Los Angeles Times headlined with "Guess Pictures' Film Struggles at the Box Office." The Hollywood Reporter wrote "Link's New Film Investment Faces Box Office Defeat." Other publications like USA Today, Newsweek, and Variety also focused on the story.
They claimed that The Underneath had set a record for the lowest box office return for a film produced by Guess Pictures, shattering the myth that Link's investments always turned a profit.
Some media outlets speculated that due to the recent first round of financing, Guess Pictures was succumbing to the same pressures that other companies faced, suggesting internal conflict had contributed to the film's poor distribution.
Consequently, many concluded that Guess Pictures was on a downward trajectory and might find it hard to replicate its past successes.
...
"Damn it! Why wasn't this terrible movie released earlier?"
Michael Ovitz was both thrilled and furious upon hearing about Guess Pictures' losses. If the movie had hit theaters a few weeks earlier, Link certainly wouldn't have dared to quote $500 million during financing.
With the financing having concluded, it was too late to change anything.
...
Vanguard Capital contacted Link to inquire about the low preview numbers for The Underneath and why they were still expanding its release. "If you don't expand, the company won't lose two million dollars," they warned.
Link told them not to interfere with company management and said they could exit their investment any time they wanted.
Vanguard Capital had nothing to say to that.
...
Link was willing to take a loss on The Underneath for two reasons: First, he believed in Steven Soderbergh's immense potential as a director, convinced that his future commercial films would outperform Quentin's, and any current losses would be recouped later.
Second, independent filmmakers often held a certain pride; even if their films flopped, they tended to blame the distribution company for poor marketing or insufficient screen time instead of their own filmmaking.
With The Underneath performing poorly, Link's decision to still release it demonstrated that Guess Pictures was a company that didn't measure success solely by numbers.
This was part of his strategy to attract other filmmakers to join their ranks.
Others might not understand his intentions.
...
When director Steven Soderbergh encountered Link at a party, he looked particularly sheepish. "Link, I felt great about The Underneath while shooting it. I didn't expect it to do so poorly."
In the bar, Soderbergh lamented, rubbing his shiny bald head.
"It's normal for movies to have their highs and lows," Link reassured him. "No one expects every movie to be a hit. Besides, this is an indie film; close to a million dollars isn't bad at all."
Quentin chimed in, putting his feet up on the table while smoking. "Steven, don't be too hard on yourself over this flop. This was Link's call to expand the release. If it tanked, it's on him, not you."
Link chuckled, "Quentin isn't wrong; I do bear a bit more responsibility here."
"No, no, it's my fault. I didn't realize the extent of the issues while filming. I watched it in theaters and checked out others' reviews afterward, and suddenly it hit me -- there were significant problems. I really didn't deliver with this film," Soderbergh confessed, his face twisted in regret.
"Don't beat yourself up. Even with a poor box office, there's still revenue from video sales and TV rights. This project might not be a total loss," Link encouraged.
"But Guess Pictures has had a 100% success rate before; now I'm the one that caused this mess," Soderbergh felt a heavy guilt weighing on him.
Link smiled softly. Actually, he didn't actually want all their films to be profitable. If they made ten films in a year, it would be normal for seven or eight to succeed and two or three to lose money.
Quentin added, "Steven, quit stressing. Link here is worth more than a billion. A loss of a few millions is nothing to him."
"It really isn't," Link replied. "Although The Underneath didn't perform well at the box office, it has high artistic merit and better reviews than Paranormal Activity or The Blair Witch Project. Plus, the progress you've shown in filmmaking is undeniable. I'm looking forward to your next project."
"Link, with all that aside, thank you!" Soderbergh said, raising his glass to toast.
Quentin snorted, "Link, you're in the news everywhere lately -- from entertainment to legal and financial headlines. What's up with that? You're a director; shouldn't you be focusing on movies instead of dallying in other fields?"
"I can understand the financial news, but what legal stories have you heard about me?"
"Come on, Robert Downey Jr. threatened you with a gun and then crashed into Richard Gere with his car. Which of those stories don't involve you?"
"That happened months ago. Let's move on; it's old news."
Link waved a dismissive hand.
But Quentin wouldn't let it go. "I don't get it. Two years ago, we were living in cheap apartments and couldn't afford anything -- no dates, nothing. And now, you're a billionaire overnight. What happened while we were all making films that made you a billionaire so suddenly?"
Link shrugged with a grin. "Stock trading. You could give it a shot too."
"Trading is too risky. I don't want to lose what I've worked hard for in the stock market. Trust me, Link, steer clear of stocks before a financial crisis hits and your shares turn to paper."
Link replied, "I'm a shareholder in multiple companies. As long as they don't go bankrupt, a financial crisis shouldn't hurt me too badly."
Director Richard Linklater interjected, "Quentin, haven't you read the news? Link's a Microsoft shareholder. The Wall Street Journal says Microsoft might eventually be valued over $100 billion. Link's shares will only keep gaining value."
Quentin scoffed, "What do you need all that money for? Just a few hundred grand is enough for food, drinks, and dates. Extra cash won't change much; even with Link's riches, he only has one dick. Having more cash won't necessarily get him more dates."
"Quentin, could you cool it with the anti-rich sentiment? I didn't begrudge you when you won the Golden Bear a while back. Why hassle me for making the Forbes rich list? If you're so upset about it, go get on one yourself."
Quentin zipped his lips.
Richard Linklater had also approached Link for a different reason: it was regarding his new film, Before Sunrise.
The screenplay was based on Richard's real-life experiences, telling the story of his encounter with a female college student during his travels; they bonded over literature, music, and life dreams, slowly becoming soulmates. This was part of Richard's "Love Trilogy."
The casting process had been completed, but the chosen lead, Ethan Hawke, had been a CAA talent who dropped out of auditions for Final Destination.
Richard was worried Link might be dissatisfied with Ethan since he had a falling out with CAA and sought him out to clarify the situation.
Link reassured Richard that he wasn't concerned. While he did have issues with CAA, he wouldn't refuse to work with their actors. Since CAA represented nearly half of Hollywood's stars, it wouldn't be smart to skip their collaborations.
After the party wrapped up, Quentin insisted on paying the tab. Link couldn't believe Quentin had suddenly become generous, no longer robbing him of his newfound wealth.
But once Steven and Richard left, Quentin sneakily approached Link. He expressed interest in stock trading too, asking if Link could help him find a savvy manager at Glimmer Capital to invest his money.
Link cautioned him about the risks of stock trading.
"I'm not worried about it," Quentin replied confidently.
"How much are you looking to invest?" Link inquired.
"I don't have funds at the moment. I'll have some once Pulp Fiction hits theaters; the buzz around it is good," Quentin explained.
Link told him to leave his luxury car and come back to complain when he has money.
*****
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