The financial story of “Logan Lucky,” which arrives in theaters on Aug. 18, starts in the fall of 2014. According to Mr. Soderbergh, a “friend” asked him to read the script, about a ragtag group that robs a Nascar track, and suggest a director. Mr. Soderbergh said he loved the idea (Ocean’s 7-Eleven, if you will) and wanted to direct the film himself.
But first he needed a plan that satisfied his creative and economic demands. It was relatively easy to raise the $29 million or so needed to make “Logan Lucky,” which stars Channing Tatum, Daniel Craig and Riley Keough. Once his cast was in place — all agreeing to work for scale, with profit participation if the film succeeds — Mr. Soderbergh sold off overseas distribution rights, a standard practice in the independent film business. Voilà: creative control over the actual film.
But distribution would not be so easy.
The standard option for a wide release, meaning at least 2,500 locations in North America on opening weekend, involves renting a major studio’s machinery. A studio like Warner Bros. foots the marketing bill (about $40 million is standard for a production like “Logan Lucky”) and handles all aspects of the release. For its services, the studio collects a fee (roughly 15 percent of total ticket sales) and deducts its expenses. Any remaining profit goes to the owners of the film.
For Mr. Soderbergh, that route was a nonstarter. “You’re way too far away from your money,” he said.
Mr. Soderbergh also wanted to spend much less on marketing. It would stand to reason that a studio would, too. But it is actually in a studio’s interest to spend more — that way the box office total is usually bigger, which in turn means a bigger fee. It is also extremely hard to get studios to rewrite their marketing playbooks. With dozens of movies on the assembly line, overwhelmed studio executives tend to go with what has worked in the past.
“I understand why they resist new ideas,” Mr. Soderbergh said. “With so much money at stake, it’s hard to sit in that room and say, sure, let’s jump off a cliff and try a whole new approach.”
In addition, Mr. Soderbergh, who won an Academy Award in 2000 for directing “Traffic,” wanted full creative control over “Logan Lucky” advertising. He said studios had never given him absolute say over a campaign. Trailers, for instance, are tested with focus groups before they are released and often tweaked based on the responses. “It’s very difficult once you get into studio testing to push back,” Mr. Soderbergh said.
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As he explored options, Mr. Soderbergh first considered forming an alliance with the National Association of Theater Owners, a trade organization. Why not cut out distributors completely by going straight to multiplex operators? Mr. Soderbergh soon realized that was not an ideal solution, in part because the Justice Department keeps close tabs on the adherence of theater chains to federal antitrust laws.
Mr. Soderbergh ultimately connected with Hollywood’s leading authority on distribution: Dan Fellman, a former Warner Bros. executive who now runs a consulting business. Mr. Fellman, who became an executive producer on “Logan Lucky,” devised a plan that Mr. Soderbergh liked.
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They would raise about $20 million in marketing money by selling off a portion of the film’s nontheatrical rights. Amazon, for instance, bought streaming rights.
Then they would make an atypical distribution deal with Bleecker Street Media, an upstart with a total staff of about 20. Bleecker Street would execute the marketing campaign — with Mr. Soderbergh approving everything — and receive a token fee of less than $1 million. If the film hit certain box office thresholds, Bleecker Street would receive a slice of ticket sales. Bleecker Street would also participate in other revenue streams, including DVD sales.
Mr. Soderbergh noted that the box office bar for success is lower under this setup. With nearly everything prepaid, and no hefty distributor fees coming off the top, even a modest $15 million opening would be a win.
“All of our financial interests are aligned,” said Andrew Karpen, Bleecker Street’s chief executive. “Logan Lucky” will easily become Mr. Karpen’s biggest release to date, surpassing the thriller “Eye in the Sky,” which collected about $18.7 million last year on about 1,000 screens. Bleecker Street also has dibs on a “Logan Lucky” sequel.
“We know that a lot of big-time filmmakers are watching this,” Mr. Fellman said. “We want this to be the beginning of a bunch of movies.”
So far, Mr. Soderbergh has spent only about 15 percent of his “Logan Lucky” advertising budget. With only three weeks until release, studios would have typically spent 40 percent. But Mr. Soderbergh believes that the vast majority of marketing should come immediately before a film’s release.
“I was also very adamant about the trailer,” Mr. Soderbergh said. “I wanted it to feel like a throwback and not seem like it gave away all the jokes.” He said the trailer was not tested with a focus group.
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Outdoor “Logan Lucky” ads are concentrated in the Midwest and South. Bucking studio tradition, billboards are scarce to nonexistent in cities like Los Angeles and New York.
“Logan Lucky,” which has received very strong early reviews, has also generated headlines over its script. The screenplay is credited to Rebecca Blunt, who does not seem to exist. Who wrote it?
That mystery may be part of the marketing plan.
In response to questions about the screenplay’s author, Mr. Soderbergh said in an email, “Clarify? Me? Why would I do that? I can tell you that Rebecca Blunt is enjoying all this immensely.”
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Article source: https://www.nytimes.com/2017/07/31/business/media/with-logan-lucky-soderbergh-hopes-to-change-films-business-model.html?partner=rss&emc=rss
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