Back in California in the Polo Lounge at the Beverly Hills Hotel which felt like the antithesis of the Marvel office.
Duke Hauser sat across a small table from Goldberg, the head of Ithaca Distribution, a man whose quiet exhaustion etched around his eyes.
It was mid July 1968.
Duke had flown back to LA for a few days to get a ground report from key people, needing to personally gauge the stability of the infrastructure before diving back into the financial situation of the Marvel takeover and the Charlton deal.
Walsh was doing an amazing work with the Jackson 5, even though the drama with Joe Jackson was an ongoing, irritating side skirmish.
Jensen was a miracle worker of logistics, keeping the three massive productions moving.
And now, Goldberg was the next domino, Distribution was the most important piece to focus in for a small studio like them.
After all, if the films couldn't get into theaters, none of the creative brilliance mattered.
Goldberg, usually a focused, energetic person, looked like he hadn't slept in a week, though he was still impeccably dressed.
He ordered a whisky, skipping the pleasantries.
"We need to talk about the calendar, Duke," Goldberg said, taking a slow sip.
"We've got assets sitting on the shelf that need to be monetized, and we're missing windows."
"Lets start with the lowest hanging fruit," Duke prompted. "Targets. How is the limited run going?"
Targets, a low-budget thriller directed by Peter Bogdanovich, was the first project Ithaca had managed from start to finish, from production to distribution.
It was a critical success of course.
"It's doing better than what I was expecting it to do," Goldberg confirmed. "We're clearing a modest profit, maybe five grand a week total, which is good for a film that cost nothing, but the real win is the reviews. The critics loved it and audiences tolerated it."
Goldberg leaned back, tapping a pen against his menu.
"The problem is getting screens still. The majors Warner Bros., Fox, Paramount they control the best first-run houses through "Packages" with Stars with box office power and long standing exclusionary contracts. Until we can prove our productions, we'll get the crumbs."
"That's why you pushed the regional deals," Duke reminded him. Goldberg's earlier success in locking down regional theater chains was what made the Ithaca Distribution structurally stronger.
"And those are going to be working, but they're still slow to built," Goldberg said. "We have the contracts, but the major films for Christmas are already booked. We need at least one guaranteed, nationwide hit to force them to recognize us as a competitor, not just a nuisance."
"Which brings us to Night of the Living Dead," Duke stated, pushing the bread plate away.
Goldberg's eyes finally lit up with genuine enthusiasm, a sharp contrast to his earlier weariness.
"That film, Duke, is great. We're calling it 'Not' internally because the title is too long and the content is too... graphic for the trade papers."
Duke nodded. He had seen the final cut. It was raw, terrifying, and completely new.
"We ran some test screenings in the drive-ins, just like we planned rural Pennsylvania, upstate New York. It was a phenomenon. The kids went crazy. The local police got involved."
Drive-ins were desperate for content, cheaper to book, and far removed from the moral oversight of big-city critics and moral leagues(which were extremely powerful).
They also allowed for midnight screenings, attracting a younger, less discerning, and higher-volume audience.
"I have secured contracts for 312 drive-in theaters across the nation for the October 1 release," Goldberg announced, the number a testament to weeks of grueling phone calls and travel.
"They love the exploitation angle, the black-and-white grit, and the low rental cost. We're positioning it as a controversial, must-see horror event."
"Three hundred and twelve screens," Duke murmured.
That was a staggering logistical victory for an independent distributor. "That shows confidence."
"Exactly." Goldberg agreed. "We expect to clear a net profit of around $250,000 on Not by the end of the year."
"It's not Creedence Clearwater Revival money, but it proves our distribution model works, and it gives us leverage for the next big conversation."
"Which is Easy Rider," Duke finished.
The film, still being fought over in the editing bay by editor Donn Cambern and the increasingly volatile Dennis Hopper, was the single most volatile financial asset on the books.
It was also a guaranteed, culture-defining smash hit Duke knew he possessed.
"The word is already out on Easy Rider," Goldberg said, leaning across the table. "Let's say we have the film essentially locked down by mid August, with post-production done. We could submit it for some Film Festivals, but festivals are risky."
"Get to the point, Larry. When can we release it?"
Goldberg took out a small, circular scheduling chart a map of the next eighteen months of the calendar, marked with the major studios' tentative release dates for their blockbusters.
"I need to hit a wide-release window with Easy Rider. We need saturation, we must get the kind of box office numbers that send a signal to the bank that we aren't a house of cards."
Goldberg tapped the chart. "My projection: January 17, 1969."
"Why January?" Duke asked, testing Goldberg.
"It's a desert," Goldberg explained. "Smaller studios will dump all their pictures in December or january for Oscar recognition, movies like 'Oliver!', 'If...'. At that time we will only be competing with British and foreign movies."
"By mid-January, the market is completely burned out. The only thing left are re-releases and studio flops. We can completely own the first three weeks of January."
"What about a July run?" Duke countered. "High youth volume."
Goldberg immediately shook his head, running his finger along the chart. "Suicide. You're running straight into the several big players. Disney has 'The Love Bug' scheduled, and United Artist has a major movie with your friend Dustin Hoffman."
"And the January 17 date is what you'd choose if I gave you absolute freedom?" Duke pressed.
"Absolutely," Goldberg affirmed, his voice decisive. "It's the most profitable, most logical moment to launch a small film when you have limited marketing dollars."
Duke looked down at the table, running his thumb over the linen.
"January 17th is acceptable," Duke said, keeping his expression neutral. "But I haven't officially signed off."
"I need one more week to review the ratings submission and the final soundtrack clearance before I lock the date in stone. We are not launching until I say so. Until then, you can use the January 17th date internally for your preliminary talks with the regional chains."
Goldberg looked relieved but confused by the delay. "Duke, every day we hold it back is revenue we lose."
"You're right" Duke acknowledged. "But if this film gets an X-rating or we released on a bad time, that revenue vanishes entirely. I need the final cut to be perfect."
"I also need a projection on cash flow for Q4," Duke demanded. "Between the Marvel upcoming increased printing costs and the impending distribution cost of Not, we're going to be cash starved."
Goldberg pulled out a complex projection sheet, compiled by Chen's office. "CCR is carrying us. Walsh is running that division brilliantly."
"And Not?"
"We project $250,000 gross in its initial run by the end of the year. Not a savior, but a critical supplement. It stabilizes the distribution division and covers our internal overhead. We are profitable, Duke, but we are fragile."
The fragility was the entire point.
They were using every penny of legitimate, high-margin revenue to fund the high-cost, high-leverage gambles (Marvel, Butch Cassidy) that Duke knew would work out.
The Jackson 5 could become the key, but their revenue was still six months away.
"Larry, you need to keep trying to get more screens for Not, 312 is amazing but i have a good feeling about this film." Duke instructed.
"Get some sleep, Larry, we'll talk again in a few days." Duke advised.
Duke watched Goldberg leave. He poured himself a glass of cold water.
(I always feel weird when i end chapters.)
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Movie Recomendation: Still Walking(2008) by Hirokazu Koreda