Chasing Stars in Hollywood

On March 1st, Veronica came to Los Angeles to take Melbourne away.

By the middle of her pregnancy, Janet had completely lost her initial excitement. After sending off the often-complaining 'little nuisance', she finally felt liberated and flew to New York the next day.

Neither Simon nor Janet worried about Veronica taking good care of Melbourne.

In February, Veronica had suddenly decided to resign from her position as Chief Financial Officer of Johnston Holdings.

The Johnston family did not put up much resistance to this decision.

In fact, Raymond Johnston had long hoped that his younger sister would escape her long-standing workaholic lifestyle and return to normal life.

Veronica's control over the family's finances was due to her ability and was also arranged by Janet's grandfather when he was alive.

The position of CFO in many companies is often a key candidate for CEO, underscoring the importance of this role.

The Johnston family did not have the complex internal struggles typical of other wealthy families. However, Veronica voluntarily giving up her power was ultimately something Anthony Johnston, the next head of the family, was happy to see.

The fact that Veronica gave up her job to help the Simon couple with their child puzzled the entire Johnston family.

The most reasonable explanation was that Veronica had always been very fond of Janet.

Although this reason was hard to justify, including Raymond Johnston, no one delved deeply into it.

Of course, Raymond still personally called to scold Simon and Janet for irresponsibly dumping their child on Veronica.

Simon was very interested in Limited Brands, the parent company of Victoria's Secret. Janet, who almost blindly trusted Simon's judgment, decided to make this company a key acquisition target for Cerise Capital this year, and therefore personally went to New York.

After sending Janet to the airport, Simon arrived at Daenerys Studios to start the new week's work.

Today was Monday, March 2nd.

As soon as he arrived at the office, his female assistant followed him in.

Reporting today's schedule and various matters Simon needed to know, the assistant handed over several documents.

The first thing Simon saw was a box office report for all films released by Daenerys Entertainment's three labels in the first two months of 1992. There would also be a meeting in the morning with the heads of the three labels to summarize the film distribution work for January and February.

Without immediately opening the report, Simon lowered his voice and whispered to the assistant, "Jen isn't home tonight. Do you want to come to my place?"

Jennifer blushed slightly at Simon's obviously flirtatious tone, glared at him, and pointed to the stack of documents in Simon's hand. "There are also the Wisteria Street renderings you planned in there."

Simon just nodded and gave Jennifer a persistent look.

Jennifer's fair face turned a deeper shade of red. After a brief hesitation, she said, "Let's go to San Francisco."

"Then make the arrangements," Simon said with a smile. "But the 767 took the little guy to Australia, so we'll have to take another plane. Also, since we're going to San Francisco, schedule a high-level meeting with Egret tomorrow morning. I'd like a more detailed understanding of Amazon's recent operations and the application of cloud computing."

The assistant nodded, took out her notebook, and jotted down a few notes. Seemingly casually, she asked, "Why send Melbourne to Australia? He's so young."

Simon didn't find the assistant's question too strange and, of course, didn't tell the truth. He gave a pre-prepared reason. "It involves some private matters of the Johnston family, so it's not convenient to tell you."

The assistant hummed softly, looked up at Simon with bright eyes, and suddenly said confidently, "You can't just send my Seattle away like that."

Simon replied without hesitation, "Of course, you're the mom, you have the final say."

Jennifer blushed again at Simon's 'you're the mom' comment, put away her notebook, and said, "The meeting starts at 9:15. I'll come get you then."

With that, she left the office.

Simon smiled as he watched her leave, then opened the box office report in his hand.

In the first two months of 1992, Daenerys Entertainment's three labels released a total of seven films, equivalent to the annual output of some second- and third-tier film companies.

Even MGM only released eight films last year.

Thus, even if no one said it outright, Simon was somewhat anxious about this aggressive release schedule.

Within Daenerys Entertainment, there was some dissent regarding Simon's plan to release 40 films across the three labels this year. Amy had expressed her concerns to Simon more than once.

Simon's insistence was driven by a desire for Daenerys Entertainment's further expansion and greater market share, as well as to accumulate more content copyrights in a short period. This content advantage would further exploit Daenerys Entertainment's potential in the theatrical and home video markets.

Having a rich content library would also support Daenerys Entertainment's continued venture into the television industry and, in the longer term, the streaming market.

Both the cable TV era of the next twenty years and the subsequent streaming era, as well as the currently thriving home video market, have a strong demand for content resources.

After merging MCA and gaining control of MGM, Simon could theoretically utilize thousands of film copyrights. However, it must be acknowledged that many of these films were too old. Unless they were classics like "Gone with the Wind" or "The Wizard of Oz," most people would have little interest in watching decades-old films.

Of course, if it turned out that this pace was unsustainable, Simon would not be stubborn.

For any company to thrive in the long run, it's crucial to acknowledge its mistakes and adapt rather than stick to outdated practices.

Simon turned to the box office data for the seven films released over the past two months.

In the first two months of 1992, Daenerys Entertainment's Daenerys Films, New World Pictures, and Gaumont Pictures released seven films: "Shout," "Dance Hero," "The Lovers on the Bridge," "Reservoir Dogs," "Hellraiser IV," "Twin Dragons," and "High Heels."

"Shout" and "Dance Hero" were released by Daenerys Films, "The Lovers on the Bridge," "Reservoir Dogs," and "High Heels" by Gaumont Pictures, and "Hellraiser IV" and "Twin Dragons" by New World Pictures.

"Shout" starred John Travolta and Heather Graham and was a musical, a project inherited from Universal Pictures. Musicals were the genre that made Travolta famous. After starring in "Pulp Fiction," his popularity had been on the rise again in recent years, so this film had a budget of $15 million.

However, after its release on January 17th on 1,107 screens, the old-fashioned musical style of "Shout" only grossed $1.98 million in its first week.

The poor opening led to "Shout" almost being pulled from theaters after just two weeks, with a total box office of $3.51 million.

A complete flop.

Fortunately, the $15 million budget meant the losses weren't too catastrophic.

This failure likely meant Travolta would need to 'transition' thoroughly in his future roles.

Simon circled Heather Graham's name with a pencil.

The twenty-something actress with her Barbie-doll looks had appeared in films like "Boogie Nights" and "Drugstore Cowboy." "Shout" was her first lead role, alongside John Travolta.

But the outcome showed that this pretty actress, despite her frequent presence in Hollywood, lacked significant commercial potential and would likely remain a 'pretty face.'

Simon moved on to the next film's data.

"Dance Hero" was also a musical, directed by an Australian newcomer named Baz Luhrmann.

Yes, the same Baz Luhrmann who directed "Moulin Rouge."

Unlike the old-fashioned disco style of "Shout," "Dance Hero" was more of a dance film.

Moreover, Luhrmann's feature debut bore his strong personal style—passionate, lavish, and lively, with straightforward commercial appeal through its appealing dance scenes and simple plot.

Compared to "Shout's" 4.6 composite media score, "Dance Hero," released on February 7th, achieved an excellent 9.5.

Due to uncertainty about the film's box office prospects, the marketing team opted for a limited release.

With only 38 screens in its opening week, the positive word-of-mouth drove "Dance Hero" to achieve a per-screen average of $28,000.

For a February release, this per-screen average was a major success.

After a second week of further positive reviews and an expansion to 76 screens, the marketing team increased the release to 681 screens on February 21st.

By the end of the weekend, "Dance Hero" had grossed $9.31 million in three and a half weeks.

Given the limited audience for musicals and the lack of major stars among its all-Australian cast, the marketing team did not intend to expand the release further.

However, three and a half weeks and $9.31 million in box office revenue ensured that "Dance Hero" would at least hit $20 million in North America.

On the other hand, "Dance Hero" was actually an Australian film, but it was picked by Simon personally and thus invested by Daenerys Entertainment's Australian branch.

As a new project with no major stars, "Dance Hero" had a budget of only $3 million, even benefiting from some tax rebates from the Australian government.

Simon invested in Baz Luhrmann mainly for his other two commercially successful films: the modern "Romeo + Juliet," which was Leonardo DiCaprio's breakout role, and the later "Moulin Rouge." He didn't have much memory of "Dance Hero," so had low expectations.

The results, however, were a

 pleasant surprise.

With $20 million in North American box office alone, global revenue could easily double that.

Through all channels, "Dance Hero," a film with a budget of only $3 million, would bring Daenerys Entertainment a net profit of no less than $30 million.

After making some notes next to Baz Luhrmann's name, Simon moved on to the next film.

"The Lovers on the Bridge," starring Juliette Binoche, was a romance film remembered for the scene of the couple embracing and shouting on the bridge, later used in "Titanic."

With a budget of 160 million francs, it was the highest-budget French romance film to date, equivalent to $28 million.

The production process was tumultuous, and the film was a disaster upon its European release.

Gaumont Pictures acquired the distribution rights for "The Lovers on the Bridge," with low expectations, mainly hoping to capitalize on the 'highest budget' angle. They signed a pure distribution contract with the French filmmakers.

The film turned out to be another disaster.

Gaumont Pictures released "The Lovers on the Bridge" on January 10th on 103 screens, grossing only $130,000 in its first week, with a per-screen average of less than $1,300. It was pulled after just two weeks, with a total box office of $190,000.

Gaumont Pictures lost about $600,000 in marketing costs on this project, hoping to recoup some through video releases.

"Reservoir Dogs" was released on January 31st, the second week after the Sundance Film Festival.

The timely release paid off.

With an appropriate marketing strategy, "Reservoir Dogs" performed very well at the box office.

Released on 336 screens, it grossed $4.37 million in its first week, with a per-screen average of $13,000.

After expanding to about 500 screens, the film had grossed $11.73 million in four and a half weeks, with a final total expected to reach $15 million.

Compared to the $2.5 million budget, this was a huge success.

Gaumont Pictures secured Quentin Tarantino's next two films through an option contract, leaving Simon curious about what Tarantino's next project would be without "Pulp Fiction."

Next up was "High Heels," a drama by Spanish director Pedro Almodóvar about an incestuous and murderous relationship between two generations.

Almodóvar's previous film "Tie Me Up! Tie Me Down!" sparked considerable controversy last year. Daenerys Entertainment had a chance to acquire it but declined due to the controversy. However, the film didn't go to Miramax as originally expected but to Orion Pictures, and its box office was unremarkable.

Now, "High Heels" was acquired by Gaumont Pictures for a $300,000 advance plus a 50-50 profit share, including all North American rights.

Released on February 7th on 166 screens, "High Heels" grossed $1.37 million in three and a half weeks, with a final total expected to reach $2 million.

Overall, a modest profit.

Lastly, New World Pictures released two successful films: "Hellraiser IV" and "Twin Dragons."

"Hellraiser IV" is part of a long-running horror series from New World Pictures. While it couldn't match the scale of New Line's "Nightmare on Elm Street" series, it consistently delivered stable returns.

"Hellraiser IV" had a budget of $5 million, released on February 14th with 1,217 screens, grossing $7.39 million in its first week.

As of March 1st, in two and a half weeks, it had grossed $12.69 million, expected to reach $16 million by the end of its run. This would cover the production and marketing costs with a profit, and horror films traditionally perform well in the video market.

"Twin Dragons" was a Hong Kong film starring Jackie Chan, released on February 28th.

Given Chan's previous unsuccessful attempts to break into the North American market, the film's $10 million budget meant New World Pictures acquired the North American rights for just $1.5 million.

With an additional $1 million marketing budget, "Twin Dragons" opened on 761 screens, grossing $2.87 million in its opening weekend.

For a low-profile Hong Kong film, a per-screen average of over $3,700 in February was a small miracle.

An opening weekend gross of $2.87 million suggested "Twin Dragons" could reach $10 million in total box office.

Purchasing all-channel rights for $1.5 million meant that just the North American box office would generate $10 million. It's clear that Hong Kong films would soon attract significant attention from major Hollywood studios.

Simon made additional notes on this film, ensuring Daenerys Entertainment would maintain its competitive edge.

___________________

(Support with power stones, comments or reviews)

If you guys enjoy this story, In support me on Patreon and get access to +200 advance Chapters

Read Ahead

Patreon.com/INNIT