The air in the Dragon Pictures music division, a newly leased floor in a nondescript office building on Sunset, smelled of fresh coffee and nervous ambition. Acoustic panels, still shiny and unscuffed, lined the walls. Ethan Carter, dressed in a charcoal suit that seemed to absorb the room's anxieties, sat at the head of a long, polished conference table. Across from him, Mark Thorne, a seasoned music executive Ethan had poached from Elektra Records, fidgeted with a pen. Thorne, in his late forties, had the weary but shrewd eyes of someone who'd seen too many bands break up and too many deals go sour.
Ethan: "So, Mark, you've seen the projections. The major labels are consolidating, artists are getting squeezed, and the CD format is about to explode. Why are we starting a record label?"
*
Thorne: "Because, Mr. Carter, the current model is broken. Artists sign away their masters, get microscopic royalty rates, and have no say in their creative direction. They're looking for alternatives—they just don't know where to find them." (gesturing to a stack of folders) "I've been compiling a list of artists, particularly those disillusioned with their current deals. From indie rock to hip-hop, there's a quiet rebellion brewing."
Ethan:"And our offering?"
Thorne: (leaning forward) "Ownership. We offer a true 70/30 split on master recordings, unprecedented creative control, and a commitment to nurturing their long-term careers, not just chasing a single. And crucially, we'll leverage Dragon Pictures' existing infrastructure. Imagine—a film score featuring a band signed to Dragon Music. Cross-promotional opportunities for film soundtracks. It's a synergy the traditional labels can't touch."
Ethan: "Synergy. I like that word." (picking up a folder labeled *Nirvana*) "Explain."
Thorne:"Kurt Cobain. Brilliant songwriter, but… difficult. They're currently signed to Sub Pop, a small indie label in Seattle. They have a debut album, *Bleach*, that's got some underground buzz. They're raw, angry. Not exactly radio-friendly in 1989."
Ethan:"Not radio-friendly *yet*. What's the financial situation at Sub Pop?"
Thorne:(pulling out a sheet) "Perpetually cash-strapped. A few thousand here, a few thousand there. They've done well with local bands, but scaling up for a band like Nirvana would break them."
Ethan:"And their contract with Nirvana?"
Thorne: "Barely enforceable. A handshake and a few scribbled lines. They love the band, but they can't support them beyond a certain point."
Ethan: "We offer Sub Pop a buyout for Nirvana's contract and masters. A generous one, enough to keep them afloat and happy. We offer Nirvana a seven-figure advance, a 50/50 split on masters, and complete artistic freedom."
Thorne: (jaw dropping slightly) "A seven-figure advance? For a band that's only sold a few thousand copies?"
Ethan:"It's an investment, Mark. Not just in a band, but in a movement. And we have the capital to make those kinds of long-term plays." (leaning back, eyes distant) "Find me a head of A&R who understands that movement. Someone who listens to the street, not just the charts."
Meanwhile, on the Film Front
*The Silence of the Lambs* was now officially in pre-production in Pittsburgh. Sarah Gunderson, constantly flying between LA and Pennsylvania, reported to Ethan from a bustling soundstage.
Sarah: "The old penitentiary is perfect, Ethan. Creepy as hell. Jonathan Demme is obsessed with the lighting—wants every shadow to feel like a character. Jodie Foster is already getting into Clarice's head. She's been spending time with FBI profilers."
Ethan: "And Hopkins?"
Sarah: "He arrived yesterday. Quiet. Intense. Marty's already complaining about his rider—wants imported Italian mineral water and specific vintage port." (chuckling) "But he's a professional. He's done extensive research on serial killers. The crew's a little spooked by him, actually."
Ethan:"Good. Let them be. We need that authenticity." (pausing) "Any news on the casting for Buffalo Bill?"
Sarah: "Demme's narrowed it down, but he's still looking for that specific… unnerving quality. We'll have it locked down by next week."
Ethan: "Excellent. Keep me updated. And make sure Marty isn't shortchanging the catering. A well-fed crew is a happy crew, and a happy crew makes good movies."
---
Mark Thorne found his A&R head: Lena Hansen, a former college radio DJ with a beat-up backpack and encyclopedic knowledge of underground bands. She walked into Ethan's office, unfazed.
Ethan:"Lena, you've heard our philosophy. What's your first move?"
Lena:(setting down her backpack) "We need to be seen as different. Not just another corporate label. My first move is to sign Soundgarden. They're with A&M but unhappy. They want to be part of something real—something that respects their art."
Ethan:"And you think Dragon is that something real?"
Lena: "You're giving bands ownership of their masters. Creative control. No other label is doing that right now, Mr. Carter. You're putting your money where your mouth is. That's as real as it gets."
Ethan:(smiling genuinely) "Lena, welcome to Dragon Music. Make it loud."
---
Dragon Pictures: Company Overview (April 1989)
I. Corporate Structure
- **Parent Company:** Dragon Pictures Inc. (Privately held by Ethan Carter)
- **Subsidiaries:**
- Dragon Studios: Film production and physical assets (Burbank soundstages, Pittsburgh office, former New Century Entertainment offices).
- Dragon Distribution (Domestic): Handles theatrical, home video (VHS, LaserDisc), and TV syndication in North America.
- Dragon International Distribution: Acquired from Fox; global theatrical/home video. Offices in London, Paris, Tokyo, Sydney.
- Dragon Animation: Acquired from Fox; animated features/TV series.
- Dragon Comics LLC: Wholly owns Marvel Entertainment.
- Dragon Music: New record label division.
- Sunset Holdings / Tartarus Holdings: Shell corporations for acquisitions.
II. Key Personnel
- **Ethan Carter:** CEO and Chairman.
- **Michael Resnick:** Head of Legal and Studio Acquisitions.
- **Linda Park:** Chief Financial Officer.
- **Frank Petrovich:** Senior Advisor, Studio Relations.
- **Sarah Gunderson:** VP of Production.
- **Marty Rosen:** Head of Distribution.
- **David Koepp:** Head of Development.
- **Rachel Klein:** Head of Talent.
- **Mark Thorne:** President, Dragon Music.
- **Lena Hansen:** Head of A&R, Dragon Music.
III. Financial Snapshot (April 1989)
- **Ethan Carter's Net Worth:** ~$350M (post-acquisitions).
- **Total Assets (Dragon Pictures):** ~$180M (studio lots, IP, cash).
- **Debt Assumed:** ~$33M (New Century/Carolco acquisitions).
- **Operating Capital:** ~$75M (allocated for productions/music).
IV. Intellectual Property & Key Holdings
- **Film Libraries:**
- New Century Entertainment library.
- Partial *Alien* franchise rights.
- *Basic Instinct* rights.
- *The Silence of the Lambs* (book rights).
- *Terminator 2* sequel rights.
- First-look deals: James Cameron (3 pics, including *Titanic*), Image Comics founders.
- Option on Neil Gaiman's *Books of Magic*.
- Distribution rights for *Blood Moon*.
- **Comic Book IP:** 100% ownership of Marvel (Spider-Man, X-Men, Avengers, etc.).
- **Music IP:** Nirvana's *Bleach* masters (pending buyout).
V. Current Productions/Projects
- **Films:**
- *The Silence of the Lambs* (Pre-production, shooting May 1989).
- *Terminator 2: Judgment Day* (Pre-production, scripting with Cameron).
- *Reservoir Dogs* (Development, attached: Quentin Tarantino).
- *El Mariachi* (Development, attached: Robert Rodriguez).
- *Dazed and Confused* (Development, attached: Richard Linklater).
- **Animation:** *Iron Man* animated series (in production).
- **Music:** Soundgarden album (negotiations underway).
VI. Strategic Vision
1. **Vertical Integration:** Control production, distribution, and content (film, comics, music, animation).
2. **Talent-Centric Model:** Attract top-tier/emerging talent with creative control and profit-sharing.
3. **Synergy Exploitation:** Cross-promotion (e.g., Marvel films, bands on soundtracks).
4. **Future-Proofing:** Early investment in animation, IP, and boundary-pushing talent.