[Chapter 224: Film Promotion and VHS Distribution]
After leaving the crew's hotel, Linton returned to the company and called Harvey and Clinsman over to update him on the promotion of Happy Death Day.
"The campaign for Happy Death Day is going exactly as planned," Harvey began. "Posters have been put up at subway stations, shopping malls, and theaters in every city. We've also secured two TV stations — MCA and ABC — for short commercials airing during prime time at 9:30 PM, running from the 22nd for ten days. We bought the MCA slot for $400,000, and ABC for $550,000.
Cristiana, Monica, and Matt Damon have been doing lots of media appearances, interviews, and variety shows recently. The media gossip campaign is moving on schedule too. Next up is the spin about a love triangle involving you, Cristiana, and Monica — then a possible love quadrangle. Be ready — paparazzi might start chasing and harassing you."
"No problem," Linton said. "What's the film's rating?"
"The results are in — PG-13. That's a big win for Universal Pictures."
"Of course. They're MPAA members, and more importantly, we handed them the overseas distribution rights. That aligns with their interests."
"At the end of last month," Clinsman added, "we held test screenings in Los Angeles, New York, Chicago, and San Francisco, focused mainly on teens and horror fans."
"How was the audience feedback?" Linton asked.
"Very good," Harvey replied. "Rated A on average across the four cities."
"More encouragingly," Clinsman continued, "on October 3, we hosted a screening for theater chain reps — over 60 chains and more than 100 expert representatives attended. Initially, they doubted the film's box office potential, but most agreed it's well-suited for Halloween release."
"We also reported the test screening feedback to them," Harvey added, "and now many are considering increased support. Midnight screenings alone will launch in 430 theaters. By the end of the release on October 29, the film will be playing in 1,260 theaters with 1,930 screens."
"What about the other chains?"
"Besides the four small chains already backing us, about 60 mid-to-large chains haven't given official responses yet. Their decisions are still pending."
"Boss, don't worry," Harvey reassured. "We'll keep pushing, and you'll definitely get better opening slots."
...
"Alright," he said aloud. "What's the VHS distribution situation?"
Harvey replied, "There are two models companies like ours typically use. One is through the Big Seven distributors. The other is the consignment-based model."
"Explain the pros and cons of both," Linton requested.
Clinsman took the lead. "Big Seven distribution requires only the upfront cost of tape production — no need to pay a large seven-year exclusive rights fee. But the rental and sales split is just 30%, and they won't promote for you. However, these companies have precise targeting for customers."
Harvey added, "Distributors don't deal with customers directly, so even if they want to push a film, it's hard. Plus, they front the cost of producing the VHS tapes. The margins aren't great unless they hit at least 30–40%. Even so, Big Seven is still the go-to route for most smaller producers."
"But Big Seven only invests in exclusive rights if the film shows strong box office or sales performance," Clinsman emphasized.
"And we seem to have fewer sales channels due to being on a consignment model," Harvey said. "No channel promotes our film. For example, Blockbuster promotes obscure movies they have exclusive rights for — with posters and staff picks. But we're a new distribution company with no commercial film track record. That doesn't help."
Linton nodded thoughtfully. 'Before the internet, this kind of issue couldn't really be solved. If it were now, companies could avoid high promotional costs, and audiences could easily access ratings, reviews, and rental data online. But we're not there yet.'
"Most stores near theaters haven't signed contracts with us yet," Clinsman noted. "We're still new to the market. So far, the contracts signed are consignment-based — free distribution with payment after sale. Similar to how small commercial productions auction off rights for seven-year rentals and sales to nationwide distributors like Master Video."
"But if our merchandise sells well," he added, "under existing agreements, we'll be treated on par with other small distributors."
"So what's the VHS rollout plan?" Linton asked.
"We'll distribute tapes to Walmart, Sears, Blockbuster, Hollywood Video, and other regional vendors. Let them handle rental and sales."
"And what about movie merchandise?"
"We've already contacted manufacturers and placed orders for masks and dolls modeled after Cristiana, Monica, and Noriko Sakai's characters. That's the next batch."
"Happy Death Day is a horror film with no real merchandising potential," Linton said. "Historically, horror film profits come mostly from VHS rentals. Are we using the consignment model for this?"
"You can't go with consignment first," Harvey said. "Start with the Big Seven. If no one picks up the rights, we can fallback to consignment later."
"Alright. Prepare for Big Seven first. If no companies bite, we'll know how confident they are about the film's potential. In the future, we'll be doing more artistic films and handling VHS production ourselves."
"You need to keep an eye on that," Harvey cautioned. "With fewer commercial releases, VHS and merchandise income will become vital."
"Any specific data on merchandise delivery?"
"The contract stipulates delivery after October 23. Molds will be held for one month. You won't be able to increase orders during that time, and supply speed isn't guaranteed."
"No flexibility?" Linton asked. "Won't that affect our VHS release timeline? We're managing nationwide manufacturing and distribution ourselves. That's faster than most video companies, but our scale may be too small."
"That's manageable," Clinsman said. "We just need to step up, work independently, visit lower-level contacts, and strengthen our support network."
*****
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