Chapter 47: Twentieth Century Fox
"Twentieth Century Fox? Alright, I'll come by this afternoon!"
Aaron Anderson had just received a call from Twentieth Century Fox. The studio seemed interested in Phone Booth.
A few years earlier, Australian media tycoon Rupert Murdoch had acquired Twentieth Century Fox Entertainment Group. Its parent company was now Murdoch's News Corporation.
Because Murdoch valued television highly, he had poached Barry Diller from Paramount to establish FOX, the fourth-largest commercial broadcast network in the U.S.
Barry Diller had been a key figure in Paramount's revival during the 1970s. Michael Eisner and Jeffrey Katzenberg, now at Disney, had once served as his deputies.
Clearly, Twentieth Century Fox Entertainment Group was under Diller's control, reporting only to Murdoch. However, Diller's current priority was the growth of the FOX broadcast network.
The U.S. originally had three major commercial broadcast networks: ABC, NBC, and CBS. There was also the non-profit PBS (Public Broadcasting Service), which focused on educational content and didn't compete commercially. Today, American broadcast TV was dominated by these three networks.
That afternoon, Aaron drove to Century City, adjacent to Beverly Hills.
At 2121 Avenue of the Stars, the Fox Plaza building stood tall—a 40-story skyscraper and Fox's newly completed headquarters. It had also served as the filming location for Die Hard, back when construction wasn't entirely finished.
Aaron went up to the 38th floor, the president's office, and waited over half an hour before meeting Joe Roth, the president of Twentieth Century Fox. After a quick whisper from his assistant, Roth said, "Aaron, have a seat."
"Good afternoon, Mr. Roth," Aaron replied.
Soon after, the assistant brought them two cups of coffee.
"The elements of Phone Booth should be very appealing," Roth said, "and with your track record from Sex, Lies, and Videotape and Cinema Paradiso, it should be easy to secure a distributor. Why haven't they?"
Aaron took a sip of coffee. "New Line and Miramax are interested, but they want to buy the distribution rights outright. I, however, have higher expectations for Phone Booth than for Sex, Lies, and Videotape. I'm not willing to sell it cheaply, so negotiations haven't gone through."
Roth smiled. "Sex, Lies, and Videotape had the Palme d'Or and earned $24 million in North America. Phone Booth is innovative, but its sets are simpler. Are you really that confident?"
Aaron nodded. "Mr. Roth, you've seen the film—what did you think of Nicolas Cage's performance?"
"Brilliant!" Roth replied without hesitation.
"Here's what we can do. Since you don't want to sell outright, we'll go with a revenue-sharing model. Fox needs a film for its spring release schedule. You'll be our choice to fill that slot."
"Phone Booth will open in no fewer than 300 theaters. Marketing will start at $1 million, and if the film gets good word-of-mouth, the budget could increase to $3 million. Distribution fees will be 20% of box office receipts, with marketing costs deducted from profits."
For a film costing less than $2 million, Roth didn't intend to overcommit. He expected box office results between $10 million and $20 million.
"Spring release… that's March?"
"Correct. Mid-March is the target. Fox needs a film on their schedule then."
Aaron knew that Phone Booth wouldn't get a prime release slot—he had expected August—but now it was scheduled for March, much earlier than he anticipated.
"Mr. Roth, no major issues, but I'd like a tiered revenue-sharing model," Aaron said. "For box office receipts under $10 million, 20% distribution fees. For anything above $10 million, 15%, and beyond $20 million, 12%. How does that sound?"
Joe Roth shook his head. "Under $15 million, 20%; above $15 million, 18%. Over $30 million, 16%. And Twentieth Century Fox also wants first rights to home video and TV broadcast."
"That's the final offer," Roth added. "Agree today, and we can sign the contract immediately."
Aaron paused for a moment but then nodded. With Fox backed by News Corporation, their marketing and publicity were absolutely reliable.
That afternoon, Aaron brought the lawyer who had helped him register Dawnlight Films to Fox Plaza to sign the contract.
The agreement not only outlined the tiered revenue-sharing, but also specified the number of opening theaters, TV ad placements, and the quantity of newspaper and poster advertisements. After all, profits could reach into the millions—precision was critical. That was why Los Angeles entertainment lawyers existed.
"Not bad, Aaron. Your company's only three months old, and your first film is already getting a release?"
Aaron glanced at his lawyer, Daniel Williams, as they left Fox Plaza. The sun was already setting.
"Pretty good," Aaron replied. Daniel, a Columbia Law graduate who had stayed on to teach for several years, smiled.
"Oh, last time you had that beautiful assistant with you—why didn't she come?"
Daniel chuckled. "You're young, handsome, and doing well financially. Hollywood has plenty of beautiful women—you don't need my assistant."
"That's my student—still at Columbia Law. She only helped out last time. During spring break in March, she'll come intern with me. She graduates next year, so you'll have to manage then," Daniel explained.
He already understood Aaron's rapid rise: a first-year CAA agent who had made a million dollars, no college degree, yet thriving in Hollywood. Securing long-term clients was essential.
"I see," Aaron said casually, just making conversation.
"Good luck, Daniel!" Aaron said as they parted. With the distribution deal with Twentieth Century Fox signed, it was time to celebrate.