The richest actor in Hollywood.

In a conference room at Paramount Pictures in Hollywood, Matthew and Stephen Sommers sat on opposite sides of the table. Their respective lawyers pointed out where they needed to sign on the contracts. Matthew signed his name on the actor's contract, then exchanged it with Stephen Sommers, who was representing the production of *G.I. Joe: The Rise of Cobra*. Both of them signed again.

After putting down the pen, Matthew stood up and shook hands with Stephen Sommers.

"Looking forward to working together!"

"Likewise!"

Both of them smiled at each other.

The room erupted into applause from everyone present, including their lawyers, agents, and representatives from the actors' guild.

Afterward, Matthew and Stephen Sommers also signed the backup copies of the guild contracts, completing the signing process.

While the lawyers and guild representatives were busy wrapping up the final details, Stephen Sommers walked around the table to shake hands with Matthew again. "I've been waiting for this moment."

Matthew smiled, "I've been looking forward to working with you too."

In reality, this was their third collaboration and the second time Matthew starred in a film directed by Stephen Sommers.

It had taken more than six months to go from their first meeting to the signing of the contract. The negotiations involved script revisions, the lead actor's salary, Matthew's role as a co-producer, and the collaboration between Paramount Pictures and Hasbro. The back-and-forth talks between the parties lasted several months before they finally reached an agreement.

The negotiations were lengthy not only because of the script but also due to Helen Herman's extensive demands on Matthew's behalf. Although some demands were dropped during the discussions, the most important ones were incorporated into the contract.

Regarding the script, Matthew was the only lead actor, and none of the supporting roles would have more than a third of the screen time of his character, Duke. This was a strict requirement in the contract, and the final cut of the film had to reflect this.

To ensure these rights, Matthew naturally secured a producer credit and had the right to suggest actors for other roles.

So far, the only confirmed leads were himself and British actress Sienna Miller, who would play the iconic villainess, the Baroness. Other roles were still uncast, and Matthew's suggestions for these would be given priority.

It wouldn't be an exaggeration to say that Matthew was one of the most powerful people in the production, his authority nearly equal to that of Stephen Sommers, who served as both director and producer.

Hollywood operates on a "producer-centric" system, where producers have more decision-making power than directors, and they can even fire directors. The so-called "complete director" is one who also serves as a producer.

Stephen Sommers, unlike Matthew, who was more of a novice, had significant professional expertise. Hollywood producers need to have sufficient artistic standards, vision, and judgment. They select projects, hire screenwriters, choose directors, secure funding, assemble the cast and crew, oversee the shooting, and are ultimately responsible for the film's sales.

Producers are accountable for the quality and market performance of the entire film.

Although the producer-centric system only fully established itself in the late 1970s and early 1980s, it had become deeply ingrained in Hollywood.

For instance, in the famous film *Gone with the Wind*, the producer replaced three directors during production, even over minor details like costumes and props. While this might seem like overstepping the director's role, it also highlights the dominant position of producers in Hollywood.

Matthew took on the producer role mainly to protect his own interests.

He now owned a production company, and as long as the films he produced could be successfully released in theaters, he would be eligible to join the Producers Guild. He had gained more insight into the role of a producer and the industry through the Producers Guild.

For example, the Producers Guild divides the film production process into four stages: early planning, pre-production, actual shooting and production, and promotion, distribution, and post-release operations. These stages account for roughly 35%, 20%, 20%, and 25% of the work, respectively. A producer must be deeply involved in at least 50% of this work to qualify for an Oscar nomination for Best Picture. If they only participate in two stages and do not include the first stage, they definitely won't reach the 50% threshold.

This reflects Hollywood's emphasis on the importance of the initial planning stage.

Additionally, the Producers Guild is working to protect the rights of genuine producers by resisting the increasingly common practice of crediting non-production personnel as producers, such as investors and distributors who have nothing to do with the actual production process.

Matthew was gradually developing into an actor-producer, but he knew he still had much to learn in terms of professional skills.

Fortunately, like other film companies, he could hire highly specialized producers to work for him.

The contract also required him to join the production as soon as possible, as filming was scheduled to start no later than October. *G.I. Joe: The Rise of Cobra* was slated for release in the summer of next year, so there wasn't much time to waste.

Fortunately, Stephen Sommers had been preparing for this project since last year. Early planning and pre-production work were already completed, and the main actors were in place and ready, so filming could begin immediately.

Hollywood films are highly commercialized and streamlined products. From the initial story concept, every decision made by the producer aims to maximize profits. The script must cater to audience preferences, the characters must have marketable traits, and if it's an animated film, the potential for merchandise development must be considered from the outset.

Locking in a release date is crucial because it puts financial pressure on the director and crew from the start, forcing them to meet deadlines. All subsequent marketing plans revolve around the release date.

Once a film's release date is set, it is rarely changed.

The production budget for *G.I. Joe: The Rise of Cobra* was a whopping $180 million, with the marketing campaign already underway.

The high budget was primarily due to Matthew's substantial salary, which was the most significant part of the contract.

According to Hollywood norms, Matthew would receive compensation for his dual roles as lead actor and producer. However, to protect other interests, Helen Herman made concessions in this area. Matthew would only receive a symbolic one-dollar salary for his role as a producer.

His salary as the lead actor was already very high!

As the undisputed star of the project, Matthew secured the highest pay on set, which consisted of three parts: a base salary paid upfront, a share of the North American box office revenue, and a percentage of the profits from merchandise related to his character, Duke.

The base salary was set at $20 million, and he would receive 10% of the North American box office revenue, regardless of the total gross.

The decision to limit the revenue share to the North American box office was primarily because Helen Herman had secured another significant share for him.

He would receive 50% of all future profits generated by merchandise using his character, Duke's, likeness.

This was a perk reserved for top-tier stars.

For instance, Johnny Depp received half of the profits from any merchandise directly related to Captain Jack Sparrow.

If this were an independent film, such income would be negligible, but for a blockbuster, the merchandise revenue could be enormous—this was no secret.

The true value of the film industry lies not in the profit a film itself can generate but in the opportunities it provides for businesses to collaborate in other fields.

These fields include television, theme parks, consumer products, soundtracks, books, video games, and even the adult industry. Movies merely serve as the key to unlocking this magical kingdom.

After signing the contract, Matthew joined Stephen Sommers' production team, undergoing military training to prepare for the upcoming shoot while also participating in some producer duties to gain experience.

In the future, Thirteen Films had several movies in the pipeline, so he needed to become more specialized in production.

This experience would allow him to learn a lot.

For example, the marketing strategy for *G.I. Joe: The Rise of Cobra*.

Most of the film's marketing budget would be spent in North America, with relatively less allocated overseas.

If a movie fails at the U.S. box office but does well globally, is it considered a success for the studio? It depends on the situation. Generally speaking, the domestic market is still more critical for Hollywood films because studios typically earn a larger share of their revenue from domestic box office receipts.

For a Hollywood movie, the studio usually gets about 30% of the overseas box office revenue. However, due to fluctuations in the dollar's exchange rate, collecting overseas box office revenue can seem simple but is quite challenging.

Moreover, government tariffs further reduce the studio's share.

Therefore, domestic box office revenue is generally more reliable than overseas income.

Additionally, the most significant part of a film's ancillary income always comes from North America, followed by Europe. Other markets fall far behind.

No one expects to make a lot of money from ancillary rights in Latin America, the Far East, or Africa. It's just not realistic.

However, this doesn't mean that overseas box office revenue is unimportant. It becomes especially crucial if the film fails in North America and must rely on international markets.

While Matthew was preparing for this project, he encountered a familiar face on set—someone who had once made him furious.

_________________________

[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!] 

[w w w . p a t r e o n .com / INNIT]

[+50 PowerStones = +1 Chapter] [+5 Reviews = +1 Chapter]