Chapter 308 (1/2)
Los Angeles.
Denise entertainment division in Burbank.
It's December 1, Friday.
In the first week, gucci imprint, with 532 screens, earned US $9.55 million. The box office performance of this documentary, which was originally only for publicity purposes but not for profit, far exceeded everyone's expectation. Ella doechman began to plan to increase the number of screens for the documentary as soon as possible.
However, gucci has made a decision that is hard for him to accept. The North American screening of Gucci imprint will always maintain the size of 532 screens, and no more screens will be added.
In the first week, gucci imprint earned US $9.55 million only by virtue of 532 screens, and its reputation and popularity are also rising. If the number of screens is gradually expanded to about 1000, the total box office of the documentary in North America will easily exceed US $50 million.
Now, if only 532 screens are kept, the total box office of Gucci imprint in North America is likely to be only US $40 million, which is at least US $10 million.
In contrast, because the preliminary work has been done enough, with an additional 500 screens, gaomen pictures only needs to pay $500000 in copy and transportation costs.
”Ella, it's actually Mr. westerlow's decision.”
Angela arenz, President of Gucci us, who came to Los Angeles to discuss the follow-up publicity of Gucci imprint with gaomen film in person in Ella doechman's office, explained this way in the face of Ella doechman's repeated doubts.
Ella doechman heard that Simon decided not to increase the number of screens in Gucci mark, and immediately gave up the idea of persuading Gucci to change his mind.
Before the formal signing of the entry agreement, Ella doechman and Simon had a face-to-face in-depth discussion. Simon clearly told him that although his salary agreement contained 5% of gaomen film's net profit sharing terms, gaomen film's operation still had to be subordinated to the interests of the whole danilisi entertainment, and the company's internal cooperation mechanism would not change.
The same is true for other companies that extend to the entire westero system.
Ella doechman's salary plan has a 5% net profit sharing clause for gaomen film. However, because of Simon's request, he is doomed to be unable to put gaomen film's interests first in everything, let alone build gaomen film into his own private domain.
At the beginning, Ella doechman was excluded from the new film company by several partners. Now, his power and salary in Hollywood are beyond those of the previous partners. He is very satisfied with this, so he does not resist Simon's decision.
He didn't dare to resist.
Working on Burbank's side, Ella doichman could feel how hard Robert REM had been.
Job hopping attempt, Simon did not drive him out of the company, but also paid for his Manhattan property purchase.
However, REM, who used to be the third person behind Simon and Pascal, is now divided into three parts. Pascal has obviously begun to intervene in the company's distribution.
It can be imagined 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's worse for REM is that with the influence of danilisi entertainment in Hollywood, if Simon doesn't let go, he will have nowhere to go. Rem, who is in his fifties this year, has left Hollywood and is unlikely to change to another career.
Therefore, knowing that he is being marginalized, Robert rem is not only unable to resist, but also has to fulfill his work conscientiously to avoid being fired ahead of time.
After completing the three-year term in the contract, the two sides break up peacefully. REM can continue to look for other jobs. If he is expelled from the company ahead of time, Hollywood will have no place for him now.
Ella doechman doesn't want to be in rem's situation.
However, Ella doechman still didn't understand Simon's decision. She asked arenz, ”Angie, I understand that Gucci has no intention to make a profit in making Gucci mark. But as a brand promotion documentary, shouldn't we let more people see it?”
”Ella, Gucci is a luxury company, which means that our products are not for the general public. If ”Gucci mark” does not sell well, we will certainly hope that more potential consumers will see this documentary. Now, we hope to create a state in which everyone knows the documentary, but not everyone can see it, so that Gucci can keep a distance from the public and maintain its own brand style. ” Angela arenz said, handing a follow-up marketing plan to doichman, saying: ”so Gucci plans to add $3 million to its publicity budget to expand the popularity of Gucci mark as much as possible.”
Ella doechman took the information and made a simple mental calculation in her mind.
If we don't increase the number of screens, according to the $40 million North American box office of Gucci mark, excluding all costs, Gucci will be able to make a profit of about $3 million from the box office in the future.Gucci obviously intends to put all the revenue generated by this documentary into the brand promotion.
Thinking of this, Ella doechman inevitably asked curiously, ”Angie, can I ask about Gucci's revenue during this period?”
Angela arenz nodded with a smile and said, ”I'm not sure about overseas. In the United States, Gucci's sales last week were $8.03 million, up 51% from the previous week. We should be able to break through $10 million this week. ”
Ella doechman immediately understood why Gucci was willing to give up the box office revenue of Gucci mark.
The profit margin of luxury goods is very high, but for Gucci in the United States, the gross profit generated by weekly sales is probably more than the money Gucci can make from the box office of this documentary.
As president of Gucci U.S. branch, Angela arenz can more directly experience the boosting effect of ”Gucci mark” on sales of Gucci products.
The end of this year is the peak sales season. Without Gucci mark, the weekly sales in North America will basically remain at about $5 million, which is enough to make Gucci's US branch exceed the sales target of $150 million this year.
Now, affected by the release of ”Gucci mark”, sales of Gucci stores have increased significantly.
The sales volume of the U.S. branch in December was expected to be between $20 million and $25 million, but now it is expected to reach $40 million, which not only far exceeds the expectation, but also pushes the total sales volume of Gucci's U.S. branch this year to $170 million.
Due to the rapid improvement of Gucci's performance, recently many media are discussing that the Gucci family made a huge loss at the beginning of this year.
Based on Daniels Entertainment's $170 million purchase of a 63% stake in Gucci, the company was valued at only $270 million at the time. In less than a year, many media think that the value of Gucci has soared to $1 billion.
After talking about this, arenz and doechman began to discuss the follow-up publicity of Gucci mark.
More than half an hour later, after the discussion, arenz was taking leave of doichman outside the office. Today, wearing a black short windbreaker and black boots, Madonna, who is quite queen like, turned from the stairway.
Angela arenz naturally met Madonna. After they hugged each other warmly, Madonna said, ”I also said I would call you in the evening. Angie, that recently launched black metal buckle chain handbag, can you help me find one? Los Angeles is out of stock. I asked people to buy it in New York, and the stores there said they didn't have it. It's really bad. ”
Angela arenz explained: ”it's a limited edition based on the recent documentary, there are only 100. There are 30 stores in North America, but they didn't last weekend. But I can have someone bring you one from Europe. ”