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R E C f(v f 0
TMMM
C:ENRJR^I-FOXLICENSINGcoRPORATMi
HUBERT A. NELSON
PRODUCT SEA V ICES'
January 16, 1984
Mr. Frank A. SauuY3ersStaff Uice President
Corporate PGelatiions arad' Cccnunicatiions
Philip Morris Incorporated
120 Park Avenue
:
hTewYork,N
.Y., 10017Dear Frank
:
;(
A% 1
'7 1
3-%
It was a pleasure to have met you last Wednesday
. As we have
discussed, Twentieth Century-Pbx would like to enter into an
a eemerit' with Phili Morris for prod aL,2l aQ=mn_~~ +*tes
in major moon pi nres praduced by Us
.
Twentieth Century-Fox wpuld like to enter into an 18-mmnth agree-
~
that would offer Philip Morris a uniqne publicity opportunityvam tee ~a product lacement inn our feature films. We wouldthe f'iral version of four feature film_s_ during the 18-mnth
pe~' i'~-
. e woul o er your products exc~ vity for the period
ooontract
. You wnuld have script approvalifor the pl.acenentof ' yowr products
.
After tthe rel,ease of the films, your approval sole71y determinesthat the exposuire is consistent with our agreatnent. If' ymiare notpleased with the length of visual exposure, a negatiated refwnd' orcredit wrnsld be workedi out for that particular project
. In the
highly unli.kely situation of Fox being unable to satisfy youi, withfour feature films, your payment will be refunded on a prorated basis
.
T`tve_Qg&t for tbe guaranteedplacement of Philip Morris cigarettes
in four inaj+or, moti
.on plctuires prodixed by Ttaientieth Century-Fox wrnald
be $1010, 0I0'0
.
.
According to the Mot.ion Pictwre Association of Anierica, Inc. (WAP,),
.
mrvie admissions for the first sewemmcmths of 1983 were 745.7 million,,up 20.5 million over ttfe same periiod last year
. Based on a maving
annual trend, it is projected that admissions for 1983 will be 1
.2
billion. Total box office gross for the first seven nronths of 19'8were $2.3 billion; it is projected that box office gross for 1983 willbe $3'.7 billion. The 1983 gross will tflp 1982', which was a reoordsetting year, by approximately a quarter, bblliiion~dollars
. These
figures are for U
.S
. releases only and do~nat reflect theatre admissionsin the rest of the world
.
BOX 900
. BEIYERLV' HILLS
. CALIFORNIA W213 PHONE
: (213) 2p33D17'
. CABLE ADDRESS
: CENTFOX, LOS ANGELES-TELEX'674B74A DIVISION OF TWENTIETH P-NITURWrFOX Fli • rnRPMTir
 
Mr
. P'rank A. Saunders
' January 16, 1984• Page Two
In 1982 the MPAA ccaYputerized the tracki ng and recording of films
released in the!U
.S
. for all identifiable distributors
. As a
result of this nrsw capability, the total count of films releasedin 1982 by 64 distributors was 474
. Total U
.S
. box office grossfor 1982'was $3
.5billion. Based on these figures, the averagefilm gross was $7
.4 million
. The average admission cost for 1982was $2
.90
. Thus, the average admission per mavie for 1982'was
2
.6 million
.
It should be noted that in 1982 there were 45 films that grossed
$8 million or mc>re and there wexe 36 films that grossed $10 million
or mre
. This should be kept in mindiwhen doing an analysis of
1982 imvie admission on a cost per thousand basis
.
If you desire, there cambe collateral publicity opportunitiesinvolving Fox stars which we can develop once a contract is executed
.
In addition, we can arrange appropriate screenings for you and yourr
wholesalers
.
I look forward~ to further discussing this unique opportunity withyou, for our Product Pl;acement Program can.assist Philip Nbrris inachieving its.marketing objectives
.
Sincerely,
.
Hubert A
. NelsomProduct Services
HAN/han
cc: Chuck AshmanTony Hoffman
 
r
,
sebruary 10
.
1975
Mr. Y. Scheraerhorn9raan
&
Yilttmnn
Tobacco
Cnrp
.
1600
Hill
Strtet
tcuisville,
Kentucky
a0ZU1
He
: lrams felebrlty Samltna
[p2r Bill
:
Per ultsruf eartimaestigatloo intoathe pwtteraof grow yettingiflree Tranpitn thecall Ciganttts lato the hands of "mvle stars, celebrities, and the in-croud"
on tAe Yest ¢oes0There am a nuNer of vyys this eeuld be approached
:I
. Through our persqnal contacts d tha talent and entertaimmatfields, ee could probably provide Bro.n 8 Wlliareon vitb thePhase and hm2 adJnsut of approxfirately 1.000 approprLteprrsonalitias ta whom a riling could be made by Brwn 6 Ylllieman
.
Plthough our cmtacts t0ink the anH-slmking fanatfcs could be
ened-out of such a aalling list, va do NOi re mnd toie
approach hecauu the potential risk of adverse publicity vsuidappear to outeeiyh the passible benefitsslist of the "in° tliscotAeques, private clubs, sin9les bars,rants, etc
. could be canpned and arrangmnts naa
: to dls-free packa9es of Trames at strategic times
.
IDe Fcadrv hvarda a a1eluled fur Ppril 9. ik did not and W NOT
sxbe distributed at the Prards Cerennny, egainmrend tlmt frampof pozsible aEVerae publicity. Tbere Is e benqu[t at the
ne
.erly Hilton follmring the sv and it haE been bypatbesiaed ttat
Premps could possibly be s'ely~sannled tnere. Haueaer, Con`idential
lr
.eatigation (1PJN b1lnJjabae r en1eE tnot ilte banqnet is a closedfor the ncaEemy Boara of Cirectors and other high-nnking lumi-no sampling wnu1J beFe.l u,t 1i T.l0Jrt
of 00

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