[Chapter 238: Surrender, Link]
In the third week since its release, Se7en had grossed $17.32 million, bringing its total to $68.34 million. However, it dropped to fourth place in the weekly box office rankings.
In first place was Fox's action blockbuster, True Lies, which debuted with $25.86 million. Second was Forrest Gump with $24.12 million for the week, totaling $143 million. In third was Warner Bros.' mystery film, The Client, which opened with $17.84 million.
After the weekly box office results came in, media outlets such as the Los Angeles Times, New York Post, and USA Today reported that, following the lackluster performance of an earlier film from Guess Pictures, Link's judgment in the film market appeared to be waning. Some analysts claimed that, after his first round of financing, Link had struck it rich, leading to arrogance and complacency, which inevitably resulted in the company's declining performance.
The media under the Big Seven continued to pour cold water on Guess Pictures. Meanwhile, Wall Street investment firms planned to downgrade their evaluations of Guess Pictures. In response, Guess Pictures held several meetings to discuss ways to boost the film's box office performance.
...
"Link, there's no denying that Se7en is a great film, but its current box office numbers are less than ideal. I believe the main reason is that our marketing hasn't reached its potential. It doesn't have the same impact as Paranormal Activity or The Blair Witch Project. For this reason, I propose that we increase our marketing efforts to attract more viewers," said Mark Amin, head of the distribution department.
Link remained silent, glancing at the others in the room.
Jon Gordon said, "The situation is different now. We are facing pressure from the Big Seven, which is driving up our marketing costs. Recently, we've spent $15 million on promotions. If we keep increasing our spending, the risk of losses will grow, making it a poor decision."
"If we don't expand our marketing, viewers won't know about this film and won't support it at the box office. If Se7en's numbers don't improve, we're looking at significant losses for the company," Mark Amin added.
The summer blockbuster season was fiercely competitive, primarily because of the sheer number of big releases and their extensive marketing campaigns. Each day, there was a barrage of new film promotions on TV and in newspapers. To grab viewers' attention amidst all the new releases and pique their interest in Se7en, marketing was crucial.
However, Guess Pictures faced the challenge that Se7en was getting overshadowed by films released by the Big Seven while also being crowded out by their aggressive marketing. To expand their marketing, they would essentially be giving money to the very companies trying to undermine them. No matter how much Guess Pictures earned, the Big Seven would always walk away as the biggest winner.
"Cough!" said executive producer Daniel DeVito, adjusting his glasses. "In the three weeks since Se7en's release, it has grossed over $68 million, and by the end of its run, it's not hard to see it breaking the $100 million mark in North America. That's an impressive achievement. However, increasing spending to compete directly with the Big Seven comes with too much risk and too little reward, and I cannot support that."
James Schamus, the content operations officer, suggested, "With so many summer blockbusters out, competition is fierce. Increasing marketing could lead to higher costs. But given that summer releases often focus on commercial films with strong initial box office numbers that taper off, and considering the quality and reputation of Se7en, which has shown minimal drop-off, we might look at expanding our marketing post-summer based on market performance."
"I agree with James," said co-producer Ted Hope.
Executive Vice President Michael Leeson and PR head Lily also supported holding off on more aggressive marketing until after summer.
"Let's stick to the original release plan. We'll decide on any increased marketing efforts based on the box office results," Link concluded, preparing to dismiss the meeting.
...
Jon Gordon caught up to Link, commenting that the reason Se7en wasn't gaining traction compared to Paranormal Activity and The Blair Witch Project was due to the absence of any controversial topics to attract attention.
He suggested that they find actual criminal cases to sensationalize, contact the police and the perpetrators, and somehow tie the incidents to Se7en, akin to the infamous "Muretta Murder Case."
Link rejected this idea outright. Not only was it fraught with potential pitfalls, but even if they succeeded, the payoff would be minimal, and it could cast a negative light on the film. The downsides far outweighed the benefits.
Link reassured Jon Gordon not to panic. Se7en was currently performing well, and the company was doing just fine -- not as dire as reported -- so he shouldn't let external media pressure influence his judgment.
...
"Ha! Link, I heard your new movie's box office isn't looking too great. Do you need a hand?"
Upon returning to his office, Michael Ovitz called, his tone dripping with smugness.
"Oh? How would you help me?" Link asked, leaning back in his office chair.
"It's simple. You could sell 50% of Guess Pictures at a valuation of $300 million. I could talk to Big Seven on your behalf to persuade them not to target Guess Pictures so aggressively. What do you think?"
"$300 million?" Link said with a cold laugh. "Guess Pictures released two films this summer, with Speed currently grossing over $120 million and Se7en set to cross the $100 million mark. Two consecutive films grossing over $100 million is an achievement that Big Seven can't replicate. A $300 million valuation is far too low for what Guess Pictures is right now."
"How much do you want?" Hearing Link's determination, Michael Ovitz chuckled, thinking that to deal with a tough opponent, he needed to hit hard.
"My offer isn't high. $1 billion. Considering two films have grossed over $100 million, an increase of only $500 million in valuation is reasonable, right?"
"$1 billion? Ha! You think a film company that's less than three years old can demand $1 billion?" Michael's laughter faded quickly.
"Michael, the value of a film company can't be assessed based on how long it's been in existence; it should be about its ability to make money. Guess Pictures had less than $1 billion in valuation last year, ranking sixth in box office revenue but first in net income for the industry. This year, our revenue is even better. Asking for $1 billion is quite reasonable."
"Isn't there room for negotiation?"
"$1 billion is the friend price."
"Hmm! Very well, Link. I wish you and Guess Pictures the best of luck in breaking that $1 billion mark."
"Thanks, I'm sure we'll get there."
~Dial tone~
Before Link could finish, he heard the call end. He shook his head; Michael had no manners, hanging up without so much as a goodbye.
...
After rejecting Michael Ovitz, Se7en faced even more negative reviews in the media, and voices disparaging Guess Pictures grew louder.
Many outlets reported that Se7en's production and marketing costs exceeded $50 million, and with current earnings under $70 million, Guess Pictures was facing significant losses. Several film projects were frozen, and Guess Pictures was on the brink of bankruptcy.
The reports were convincing, and if one weren't in the industry, they might have actually believed it.
...
"Link, shouldn't we think of some gimmicks to promote Se7en? Don't worry about people saying you broke your promises afterward. For a film company, box office income is what matters most," Robert Shea couldn't resist calling in to ask.
"Robert, there's no rush. Se7en has been out for three weeks and reached over $68 million in the North American box office. That's a solid number, and I expect it to easily surpass $100 million."
"Your only goal is to break $100 million?" Robert Shea found it hard to believe.
Once upon a time, Link had produced films for just a few thousands, with global box office numbers in the hundreds of millions. Se7en's production costs had reached over $30 million, and Shea had predicted a North American gross exceeding $300 million. Now Link was telling him the target was just one hundred million, which was hard for him to digest.
Link didn't offer much comfort, merely assuring Robert not to worry. Se7en was performing well in theaters with good attendance, and over time, box office numbers would likely improve.
...
Besides Robert Shea, calls had also come in from Vanguard Capital and J.P. Morgan seeking updates on the situation. Greg Davis, an investment officer from Vanguard Capital, lightly chided him for being lax. Given the current climate, surviving the pressure from Big Seven without going bankrupt would be an achievement for Guess Pictures, let alone outgrowing them.
Link instructed them not to concern themselves with negative perceptions. Se7en hadn't lost money, and Guess Pictures wasn't on the brink of bankruptcy; the shareholders had suffered no losses and should stay out of the company's decision-making.
Regardless of the outside world's perspective on Guess Pictures' struggles, Link felt steady amidst the chaos.
Originally, he had predicted that under pressure from Big Seven, Se7en would manage to break past $500 million in global box office revenue with its strong tailwind, ultimately surprising everyone.
However, an unexpected event accelerated that process.
*****
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