Chapter 88: Unreliable Profit Sharing
Once any film's budget reached a certain threshold, a studio's review and investment processes became exceptionally cautious. While James Cameron's two masterpieces had truly kicked off Hollywood's era of hundred-million-dollar blockbusters, the massive budget Duke was demanding for Independence Day remained exceedingly rare.
Even small productions with budgets of just a few million dollars faced strict studio audits, let alone a project like Independence Day. Getting any film with a tens-of-millions price tag off the ground was an incredibly tedious process.
In Hollywood, taking a script from a mere concept to gaining a studio's approval and financing was called a "greenlight." Beyond the mandatory committee audits, it involved numerous preliminary investigations.
First, there had to be a script with enough quality and creativity to catch a studio's interest.
Second, the script had to pass a systematic review by the production department. They analyzed whether the story was original, whether it held commercial value, and whether it fit the studio's slate. If it passed, the department estimated production costs, tax liabilities, and other expenses.
Third, the project underwent a review by the distribution department. They teamed up with partnered distributors to investigate a host of questions: What was the film's commercial value? Who was the target audience? Was it an adaptation, and did it have an established fanbase? Could the film integrate into the studio's global distribution network? Would it receive support from partner television networks and Videotape collaborators? What were its genre and release window? Was there potential for product placement? Did the film have award potential? In the past and upcoming eighteen months, how many similar films had already been released or were in pre-production? How did they perform? And what was the expected return on investment?
Fourth, assembling the production team. For Independence Day, this was relatively simple.
Fifth, finalizing the shooting details and partnership agreements...
Sixth, the budget, shooting schedule, locations, and production team all received final approval, ultimately earning a "greenlight."