Chapter 139: Box office.
February 4.
-It seems like The New York Times has insider information about our movie. Anne hasn't sent the data yet, and we're entering February. It's questionable that we don't have an idea about our box office performance, - John Lasseter said.
On top of his desk, there was a headline in large letters: -The New Digital Era - Toy Story Hits $200 Million in North America! Pixar, is the sensation of the tech industries.
-I can't deny the source. Maybe they made a reasonable deduction with some sources. We're likely over $200 million, - Ed Camult said.
-So, do you think our movie has surpassed $200 million? It's crazy, Ed. Billy mentioned something about recouping our money, but he was hoping to do that through toy sales, - John Lasseter said, taking a sip of his coffee as he scrutinized the newspaper once again with keen clarity.
-This goes beyond our primary intentions. But it's a relief that the company didn't fail with our first release. After all, with such a high investment, I thought we'd surely lose some money, - Ed Camult said.
With suspicion due to the high levels of investment made by Billy, starting from the movie's release, they had disbursed $45 million in R&D alone, not including personnel expenses, taxes, the soundtrack, production, and dubbing. But Anne had classified the movie for $70 million, the fixed goal. Any profit below $150 million was considered a failure.
-I feel relieved by this news more than you think. It reaffirms that our losses are minimal, - Ed said.
John, knowing some of Ed's thoughts, nodded in agreement. It was a relief for all employees, and now they could see the big bet of renovating some facilities for better comfort. A three-story building with underground parking was not a small expense.
-I understand, but the boss is more than satisfied. He mentioned something about bonuses. You can buy that nice new truck we saw if the bonus is juicy enough, - John said cheerfully, although he still had dark circles under his eyes. The Hawaiian vacation was a soul-refreshing experience, with seven days of rest. Everything paid for, room service, delicious food, spa facilities, generous weather, beach, sea, and relaxation.
-It's just one part of it all, John, - Ed Camult said, attending to his colleague's reluctance to see the future.
-One part of what? Everything has been going well; there's nothing to fear, - John Lasseter said.
-At first, I didn't consider it, until Randall made it clear. Our movie costs are very high, and the risk is significant for the next movie, 'Bugs, an Adventure.' We need at least another big box office hit. And more than anyone, you know that hitting it big in Hollywood is very complicated, - Ed explained.
-You're quite a nervous person, - John Lasseter said calmly. - Think of it this way, Billy approved the movie, and he even gave some suggestions for improving the environmental design. He has good instincts for figuring things out, and although he's young, he makes up for it with talent. -
Armand Millester was going through the accounts of the distribution company in a small office on one of the floors. Among the many offices, there were only seven people under Armand's supervision, but with his guidance, they managed all the distribution in North America. However, the task was not straightforward; film distribution had its share of intricacies and behind-the-scenes dealings, including minor contract breaches and a lack of cooperation from major companies. The four agents who traveled from place to place, checking the distribution terms, had their hands full.
-Mr. Armand, the results have come in from Columbia Pictures, - Staicy said, holding up a thick document filled with detailed information about the worldwide release of the new toy franchise in a risky debut.
-The numbers are clear, - Armand replied.
United States: $209 million
The U.S. data was the clearest because of the significant presence and investment in advertising. The successful advertising campaign paid off.
Canada: $8.8 million
Mexico: $6.7 million
Latin America: $25.5 million
Central America: $13.4 million
United Kingdom: $36.7 million
France: $18 million
Spain: $17.3 million
Portugal: $9.9 million
Italy: $14.7 million
Europe: $23.6 million
Eastern Europe: $4.1 million
Africa: $14 million
India: $15.1 million
Asia: $39.6 million
Oceania: $14 million.
Armand reread all the figures and could only swallow hard. He hoped Sony could delay the earnings reports. Over 400 million dollars was a serious matter. Only "Jurassic Park" could claim to have overshadowed "Toy Story."
-Let the parent company know about the money earned and arrange a meeting with Sony. I need to sort some things out, - Armand said as he grabbed his briefcase, ready to leave. He had been in the business since 1971. Unfortunately, he made the wrong move, setting up an independent film distribution company and losing his entire fortune. He had worked diligently in the industry for others, and now he distributed for Pixar, an animation giant. What would Armand do? Collect.
The next morning, much to Armand's dismay, the news of "Toy Story" grossing 450 million dollars at the box office leaked out. The animation decade had arrived, and everyone looked at it with hopeful eyes. This was a market they hadn't considered until just a few years ago. Disney had controlled animation for over sixty years and more. But everyone wanted a piece of the pie. Fox, Universal, Paramount, Warner, and even Sony had been taking steps to establish their animation studios. Some looked in other countries, others at smaller studios. Universal sought out Amblin Entertainment, an old ally.
Anne was reading the news that morning with a black coffee in her hand, thinking what great news this was. Similarly, many others read the morning paper, delighted by the incredible earnings, a movie with such great profits, Pixar, Sunrise Comics, and all those who knew the owner of Pixar behind the scenes.
-Billy, I have some fantastic news, -Anne said, clapping her hands and interrupting Billy's drawing process.
-It must be something significant, - Billy replied.
-It is. Yesterday they sent the results in the evening, but I compared the earnings with the newspaper as soon as I heard the news. 'Toy Story' is officially one of the highest-grossing animated films in history, - Anne said.
Billy's eyebrows raised at the delightful news. -Did the toy reports arrive? - he asked.
-We received the December figures, and they're excellent. You left them on your desk two weeks ago, - Anne said, pointing to the yellow folder that only stuck out slightly from a stack of papers.
-I didn't have much time this week, - Billy admitted.
-Forget it. Sales were fantastic, and we've recovered more than half the money. There are still many unsold toys, but we'll soon reach a point where our losses are minimal. Maybe we should try buying fewer units, - Anne suggested.
-You think I don't know that? But soon, we'll sell everything. Beyond that, 'Toy Story 2' is in Pixar's plans, - Billy replied.
-Only read the report, and this one too. Armand sent the details of the entire operation recently. I think it's a good idea for you to go through these things; the company is working on two more movies, and losing money isn't good, - Anne advised before leaving the office.
-Publish the toy sales—say that we've sold 5 million units in a month. Everywhere you can, - Billy instructed.
Manipulating the media was just the beginning, but if these companies started seeing reports of such incredible sales, it would provide better assurances for Billy when negotiations began.
Purchasing 12 million toy units might have seemed excessive at first, but now it has been a success. They had set up a production line, and toy sales were skyrocketing. "Toy Story" was still making money in theaters, and it was likely to continue performing well in the weeks to come.
...
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