After another night in Melbourne, Simon and his entourage returned to Los Angeles, bringing back Adam Baldwin and Valerie Golino, the male and female leads of 'Batman', who had been there for some time.
'Batman' is scheduled to begin filming early next year, and in the remaining months of this year, various supporting roles need to be cast, and audition rehearsals and other work also need to be conducted in Los Angeles.
All of these require the cooperation of the two leads.
Simon and his team boarded their return flight on the morning of September 14th, Melbourne time.
A day earlier, in North America, NBC's 'Survivor' also premiered at 8 p.m. on Monday, September 12th, local time, and preliminary viewership data was available by the afternoon of September 13th, Melbourne time.
New York.
Although he was also very concerned about the viewership data for 'Survivor', Robert Iger was still very surprised when the phone rang at around 1 a.m.
NBC CEO Robert Wright personally called him, his voice filled with complex and barely concealed emotions of surprise and excitement.
After presenting the preliminary viewership data for 'Survivor', he also hoped that the two would meet at breakfast to discuss the production of the show's second season.
At the same time, Amy Pascal on the West Coast also received the premiere viewership data for 'Survivor' at midnight, and Simon, far away in Australia, was quickly notified as well.
On North American time, NBC was even more eager to publish the viewership data for 'Survivor' in mainstream media such as The New York Times and The Los Angeles Times, and major newspapers generally used headlines like "Another Phenomenon".
Why say another?
Clearly, 'Who Wants to Be a Millionaire?' had already created a phenomenal viewership, and 'Survivor's viewership performance seemed even stronger than 'Who Wants to Be a Millionaire?'.
After more detailed statistics, in just the first episode, the premiere viewership of 'Survivor; soared from the initial 17.8 million to 22.65 million, with the final average viewership reaching 20 million, exceeding NBC's pre-premiere expectation of around 15 million viewers.
Anyone in the industry knows that there is a significant difference between a TV show with 10 million viewers and one with 20 million viewers; the two represent a complete qualitative change from a quantitative one.
Moreover, although 'Survivor's first episode did not surpass the total viewership of 'Who Wants to Be a Millionaire?' from the previous day, in the most critical 18-49 age demographic, 'Survivor' unexpectedly achieved this.
'Who Wants to Be a Millionaire?' on Sunday had 23.7 million viewers, with an 18-49 core demographic rating of 11.1.
In comparison, while 'Survivor's total viewership was only 20.95 million, its 18-49 core audience rating unexpectedly reached 11.5.
This means that in the 18-49 age group, 'Who Wants to Be a Millionaire?'s first episode had 13.3 million viewers, while 'Survivor' had 13.8 million viewers.
Although it's only a difference of about 500,000, no one can ignore that 'Who Wants to Be a Millionaire?' had accumulated popularity over several months during the summer, while 'Survivor' was merely its premiere.
Even in terms of promotion, NBC did not go all out like ABC, which had already paid a huge sum for this reality show.
Therefore, with its premiere episode surpassing the initially dominant 'Who Wants to Be a Millionaire?', 'Survivor's overall viewership is destined to be even better.
Now, NBC's only regret is that 'Survivor' only has 13 episodes per season, not the 69 episodes of 'Who Wants to Be a Millionaire?'.
Furthermore, to minimize risk, NBC only signed a contract for the first season with Daenerys Entertainment.
According to the current broadcast frequency, the first season will finish before the winter break.
NBC wants to ensure a smooth premiere of the second season in the spring slot after the winter break, and it will clearly face the same predicament that ABC previously had to pay Daenerys Entertainment exorbitant prices for.
NBC was very eager, but Robert Iger became increasingly cautious; he had never encountered a situation in his career where he had continuously produced two phenomenal TV shows.
After breakfast with NBC CEO Robert Wright in the morning, he hastily boarded a plane to the West Coast.
The specific cooperation plan for the future clearly still needed to be personally approved by Simon, who was about to return from Australia.
After an emergency internal meeting, NBC CEO Robert Wright also set off for Los Angeles.
Due to an 18-hour time difference, Simon and his group took off at 10 a.m. Melbourne time on September 14th, and after a 16-hour flight, it was still only 8 a.m. on September 14th when they arrived in Los Angeles.
Although he didn't want to appear too eager, Robert Wright still went to Los Angeles International Airport with several senior executives from Daenerys Entertainment to personally pick them up.
Simon originally planned to rest for the morning in Malibu, but seeing everyone gathered, he had to temporarily change his plan, sending Jeannette back first.
He, Amy, Iger, Wright, and others rushed to Daenerys Entertainment's headquarters in Santa Monica.
Inside the conference room at Daenerys Entertainment headquarters.
After everyone took their seats, Robert Wright got straight to the point, saying, "Simon, I spoke with the parent company yesterday. NBC hopes to sign a contract for the next three seasons of 'Survivor' at once. As for the cooperation price, we can offer the same $2 million per episode as ''Who Wants to Be a Millionaire?'".
Simon took a hot coffee from Jennifer, who handed it to him from behind, took a sip, and perked up, saying, "Bob, 'Survivor's' viewership data is even stronger than 'Who Wants to Be a Millionaire?'. Do you think the same offer is appropriate?"
"This is only the first season, Simon", Robert Wright shook his head and said, "No one can guarantee that this reality show will be so popular in subsequent seasons. According to the usual TV show viewership curve, its viewership data will definitely decline in subsequent seasons. Considering this, our offer of $2 million still carries a certain risk."
Simon noticed Robert Iger's hesitant expression after Robert Wright finished speaking and smiled, signalling to him.
Robert Iger directly refuted Robert Wright, saying, "Bob, for a typical hit show, long-term viewership data should be a parabola, not the downward curve you mentioned. With further increases in popularity, viewership for 'Survivor' may even be higher in future seasons".
Robert Wright momentarily forgot Robert Iger's background, but he didn't show much embarrassment at being exposed on the spot.
He reiterated, "Simon, relative to the cost Daenerys Entertainment incurred for 'Survivor,' $2 million is already a very high price".
"In Hollywood, the investment cost and return on film and television works are mostly not directly proportional," Simon shook his head and said, "Therefore, $2 million per episode is definitely not acceptable".
"If it's higher, NBC will no longer be able to bear the risk," Robert Wright said, "Simon, we are different from ABC and the others. In recent years, NBC's operations have been very successful. Even if we lose 'Survivor,' NBC will not be greatly affected".
Simon smiled and said, "Bob, if you continue to treat me as an amateur, there's no need to continue this meeting today".
The competition among the four major television networks has always been fierce; standing still and making no progress actually means falling behind.
NBC's current operating condition may rank first among the other three major networks, but if it loses 'Survivor', not to mention CBS and Fox for now, ABC could definitely quickly surpass NBC and seize the top viewership share with the immense popularity brought by 'Who Wants to Be a Millionaire?'.
Therefore, NBC simply cannot afford to give up 'Survivor'.
"Alright, Simon," Robert Wright clapped his hands helplessly and said, "Then, what do you think is a suitable price per episode?"
"In the future seasons, Daenerys Entertainment can proactively increase the length of some episodes, with each season likely having around 15 episodes. If NBC wants to secure the next three seasons at once, I can give you a package price: $50 million per season, totalling $150 million for three seasons".
Robert Wright was startled and blurted out, "That's impossible".
Are you kidding me?
According to NBC's understanding, Daenerys Entertainment's production budget for the first season of 'Survivor' was only around $5 million.
At $50 million per season, even factoring in Daenerys Entertainment's retained internal advertising placement rights, as well as syndication distribution and remake licensing rights, Daenerys Entertainment would secure at least a 10-fold pure profit.
This is simply exorbitant profit.
"Let's calculate", Simon said, softening his tone slightly, "Based on the viewership data from the first episode, in future seasons, 'Survivor' could reach a peak of 30 million average viewers per episode.
This is already the viewership level of some second-tier awards ceremonies. As far as I know, the Grammy Awards earlier this year had around 30 million viewers, and their 30-second commercial spots cost $300,000. Calculated this way, with 'Survivor's' 15 minutes of commercial breaks per episode, you could recoup $9 million. In comparison, Daenerys Entertainment would only receive around $3 million".
"But have you considered the costs?" Robert Wright retorted, "Simon, the operating costs of a television network are very high".
Simon simply interrupted Robert Wright's nonsense, saying, "Bob, if we're talking about costs, Hollywood's costs are actually even higher. Over the past few decades, most of the films produced by major studios have basically been at a loss, never making a profit".
Hearing Simon say this, Amy and Iger couldn't help but chuckle.
The fact that studio films never made a profit was, of course, a joke, but also a well-known, established joke.
To avoid taxes and union-mandated profit sharing, most film projects from the major Hollywood studios were indeed at a loss; even if they barely 'profited', the amounts were often negligible.
In comparison, the operating conditions of the four major television networks are even less transparent, also to avoid various similar expenses.
Therefore, Robert Wright was correct in saying that the operating costs of a television network are very high.
However, Simon knew that in the previous fiscal year, NBC's net profit reached over $380 million, far exceeding its competitors like ABC, CBS, and Fox.
Now, if it can secure 'Survivor', although it will pay a high fee, the benefits to NBC are obvious.
It can maintain its position as the top-rated television network, completely unafraid of ABC's close pursuit.
Conversely, without 'Survivor', perhaps after just this fall season, ABC could overtake it.
Television networks also exhibit the Matthew effect of the rich getting richer.
When advertisers cannot afford to spread their ads across all four major networks simultaneously, they usually prefer the one with the largest market share.
Therefore, once overtaken by ABC, it would be much harder for NBC to catch up again.
While it wouldn't immediately fall into a loss, being left behind by ABC would certainly lead to a rapid decline in NBC's profitability.
In contrast, ABC, which was still in the red last year, could quickly become profitable due to the viewership market share brought by 'Who Wants to Be a Millionaire?'.
Robert Wright continued to argue for a few more sentences, but Simon refused to budge.
He then temporarily called a halt to the meeting, stating that he needed to make a phone call.
Simon knew that Robert Wright was going to report to Jack Welch, the chairman of General Electric, the parent company, and readily had Jennifer personally escort him to an adjacent office.
General Electric's size had not yet reached the $500 billion level at the peak of the internet bubble a decade later.
Although it was gradually recovering from the stock market crash of last year, currently, General Electric's market capitalization was less than $50 billion.
Two years ago, General Electric acquired MCA, NBC Television Network's parent company, for $6.5 billion, which was more than one-tenth of General Electric's current size.
Therefore, the media business is currently a truly stimulating venture that reports directly to Jack Welch, the chairman of General Electric.
Simon, Amy, and Iger spoke in low voices about recent company matters for about ten minutes, then Robert Wright returned.
"Simon, I just spoke with Jack," Robert Wright said without concealment, "We can accept Daenerys Entertainment's offer of $50 million per season. However, Daenerys Entertainment must also agree to a few preconditions".
Simon made a gesture for him to speak.
Robert Wright said, "First, Daenerys Entertainment must increase its production investment in 'Survivor'. We can all see that many details in the first season still appear very crude, which was clearly done to save costs. But since we are offering a high price, Daenerys Entertainment also has an obligation to do better. For the next three seasons, the production cost of this reality show must not be less than $10 million per season".
Simon nodded: "That request is very reasonable, I agree".
"Secondly, for the next three seasons, each season must have at least 16 episodes, not the 15 you just mentioned. At the same time, Daenerys Entertainment must agree to NBC sending staff to participate in the program production".
Simon quickly calculated in his head; 15 episodes and 16 episodes seemed like a small difference, but this could precisely compress NBC's cost for this reality show to around $3 million.
He exchanged glances with Amy and Iger, and seeing that neither of them raised any objections, Simon nodded again: "No problem".