By: Mike Fleming
As Michael Bay’s “Transformers: Revenge of the Fallen” chases box office records after grossing $60.6 million on opening day, the filmmaker took time out to talk with BFD about the business of blockbusters, the impact of piracy, and the virtues of sharing risk with studios.
BFD: How do you spend opening night?
Bay: I always go to Mr. Chow’s for dinner with my producers, studio and marketing execs, my agents and lawyers. We get our first numbers there and then we hit the theaters. You’ve got to go there. And hope you see happy, smiling faces walking out. Last night, I tried to sneak in the side, but somebody noticed me and then they’re lining up for pictures. At the Arclight, somebody yelled “speech!” and I found myself talking to 900 people.
BFD: Salary deferrals have become commonplace, but not when you made “Pearl Harbor.” You made more money, but said, “Never again.”
Bay: Well, that was because of the way it came about. You work on the movie for nine months and then right before you shoot Joe Roth says, “Mike, I’m going to take away your fee.” It didn’t feel good.
BFD: So you deferred on “Transformers” and the sequel, and the L. A. Times predicts you might make more than any director on a movie. How do you feel about these deals, which are becoming the new economics of Hollywood moviemaking?
Bay: Okay. I run my sets and my pictures tight and we came in $4 million under budget. There is so much waste in this business, directors who have big shows like this one, who keep a second unit for the entire time. We were able to make this for $194 million, instead of the $230-270 million that the average sequel of this nature seems to cost. I work with one of the best crews in the world, we work efficient 12-hour days. We don’t build $3 million sets and then the director walks in and says, “Fuck it, I’m not going to use that set.” The stories I hear from my crew members, of waste on other pictures, of directors shooting a six- or eight-hour day, it’s just staggering. Some directors will look a studio executive in the eye and say, “Sure I’ll come in at this budget,” and then they behave like terrorists. By then, you’re committed and screwed. The thing that “Pearl Harbor” taught me was you’ve got to become a partner with the studio and deferring makes you more invested in that. I think it’s important and I think you need to be honest with your partner.
BFD: You have final cut as director and producer, but that’s also going by the wayside. What leverage does it give you?
Bay: It’s a club you hide behind your back but you hope you never have to use. Final cut for some can be a defense mechanism and for others an extortion mechanism. I am not one of those people who hold out my final cut; I think that’s ridiculous. I can think of examples where it allowed me to put some comic moments in these films. The studios have always been very good with me and never demand I take anything out. They suggest, sometimes I say no and then we see if the whole audience laughs and I was right. You need more laughter in the summertime. Literally, I was told we shouldn’t have talking robots in the first film. But you’ve got to be able to listen to your audience and to producers who look at your movie and bounce things around with you. That’s the Don Simpson-Jerry Bruckheimer dynamic and any director needs those people because you are just too close to it. I still feel if I could have had two more weeks on “Transformers,” I could fix a lot of stuff. But I ran out of time. My philosophy on final cut is you protect the movie at all costs. At studios, you deal with people who have their own agendas and you have to keep this agenda-free and all about the movie and the experience.
BFD: Days before the release of your film, Paramount restructured its film group. How did that impact you and what does it mean going forward on the next film?
Bay: It doesn’t affect anything, really. Paramount has literally said, “Here’s your budget, see you later.” It’s staggering, really, but they trust me to come in on budget. I don’t ask for money when I’m shooting and stay on course. I’ve never even given them dailies. I’d assemble real rough cut scenes, sizzle reels, cut to music, so they can enjoy it and get what the movie is.
BFD: Three days before shooting, Sony scrapped “Moneyball” after Steven Soderbergh threw a curveball to Amy Pascal and turned in a rewrite that veered from the movie she was willing to finance. On “Transformers,” do you feel an unspoken agreement to the studio to deliver the film exactly as they expect since they aren’t watching dailies?
Bay: I can only compare it to the first movie. The hardest thing for a director trying to set up a franchise is establishing tone. I wanted it to be edgy enough to be cool for older kids but accessible to kids and moms and I wanted it to be funny. We did a lot of improv and I hired funny actors who could do that. Steven [Spielberg] called me up and said, “Mike, you’re shooting a lot of stuff that’s not in the script.” I said, “Steven, some of it is going to suck, but some of it will be gems in the movie.” That’s how I work. I will say it made them nervous until they saw the final result, how much the audience liked it and the tone that it set for the franchise.
BFD: What’s one of those gems?
Bay: A perfect example came in the first movie, the masturbation thing. There was one line of dialogue that hinted about it in a roundabout way. But Julie White is a wonderful theater actress and Kevin Dunn and Shia, we were able to make that scene into something. I shoot fast enough that I was able to devote several hours to having fun with that scene and make more than what was on the page. I try to shoot at efficient clip so I can allow myself time to work with the actors and experiment.
BFD: Much was made of a memo you sent to Paramount fearing that “Transformers” wasn’t registering as an event film because of the marketing. How do you feel now?
Bay: Thankful, because they did a great job. At the time, they were so focused on “Star Trek” and I was like, “Hey, we’re the four-quadrant movie just sitting out here. I need a little attention here.” It’s good to put people on notice. They have a talented group at Paramount, they did a fantastic job. They took the email very seriously, and we had a big meeting, not only domestic but foreign. A lot of people were brought in and it all really came together in a huge way.
BFD: You gambled on both “Transformers” films and “Pearl Harbor.” If you found another franchise, could you see yourself going a step further and bypassing the studio as financier?
Bay: I will always do these films with a studio, because it’s good for you when the studio has skin in the game when they’re releasing a big picture for you. But maybe it’s going to be half of the skin in the game next time, and the rest will be independent financing. I’m absolutely thinking along those lines right now, because studios don’t have as much money and they’re spreading it around to take as many swings at the plate as they can. Absolutely, I want to get into that.

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BFD: Considering your development on this movie was interrupted by the writer’s strike and you risked being shut down any moment by shooting after the expiration of the SAG contract, what was the hardest thing about making “Transformers: The Fallen?”
Bay: That could have been the hardest thing. With an impending strike, we had 12 pages of a treatment. I worked very closely with the writers, great collaborators, who suddenly went on strike. I said, “We’re going to start prepping this movie at full force, scout places I think are going to be in this movie and try and put this together as best we could.” There might be an actor’s strike, but I told the studio we’re going to shoot this on June 2, come hell or high water. We took a gamble that the writers would come back from the strike in time and we just made it. At one point, we were the only movie shooting in the country. But I had to gamble. I have a loyal crew and my job gives 2,000 to 2,500 people jobs. It was scary because so many people were out of work and you hear your crew say, “Wow, I might have to move out of my house.” You feel responsible.
BFD: Considering that all guild contracts will expire in 2011 and Paramount and DreamWorks want the third film in 2011 or 2012, how does the likelihood of more labor trouble influence the next film?
Bay: I’ll be honest, I need to take a break. I need to do something different and get away from robots for a bit. I think it will be better for the franchise to give some space. But I don’t think you can play for the strike. That was the problem last time. There was fear and all the studios were playing for a strike that never happened. I felt in my heart that the strike would never happen because I saw where the country was going and felt, how can you strike in a time like this? Look, the next one’s going to get made when it gets made, no matter what. If we have to shut down, we shut down.
BFD: You make the kind of pictures that studios want. How long will this serve your own creative ambitions as a filmmaker?
Bay: That’s the issue. I fear for the business, the way it’s contracting. I like all kinds of movies and dramas seem to be hurting right now, along with small independents. I have projects in those areas and it’s frightening. There should be a place for my type of movies and a place for the ones Steven Soderbergh makes. I’m worried the economy is going to make it only one type and that’s going to be really boring.
BFD: Dramas are being put in turnaround after films like “State of Play” were pricey failures. What’s the answer?
Bay: I always start with a question. How do you get someone to commit to leaving their house and going to the theater, when they’ve got all this stuff on the internet, and social networks. That’s why these event movies are working in this climate. I don’t know the answer, but sometimes I hear about movies they’re making and say, “How is that going to get someone out of the house?” I’ve got some small projects and several big stars are talking about working with me. But I have to focus on one thing and move on. I cannot have nine balls in the air, which Steven does so well.
BFD: What has been the biggest benefit of being in Spielberg’s orbit?
Bay: The benefit of being in both Steven and Jerry Bruckheimer’s orbit is they are such sage advisors. They’ve taught me so much about the business and been supportive as they allowed me to do my thing. It’s fascinating for me to remember being a kid and seeing “Top Gun” and saying, “I’ve got to do this,” and seeing “Raiders of the Lost Ark” and saying, “I’ve got to do this.” Now, those two guys are like my big brothers. You could see on that email how I invoked Jerry.
BFD: Dramas are hurting. What else do you fear about this business?
Bay: Piracy. It’s going to be the death. I look in the eyes of these interviewers. There was one of them, maybe in Norway, and this guy looks me in the eye and says, “Don’t you think piracy is about sharing?” I say, no, it’s about stealing. They really believe they are sharing, and it is like really lightning fire. Somehow, the studios are going to have to get dirty and fight back.
BFD: How?
Bay: If you wanted to get dirty, you can get dirty. You can implant things in their systems. You can get nasty. This stealing is growing on a worldwide level, very quickly. It’s exploding. This is my biggest concern and it’s something we’re not really addressing effectively. In several years, it’s really going to hurt us. Not the theater experience, but the ancillaries.
BFD: Is it creating the DVD shortfalls that have studios changing the way they make deals?
Bay: Some of that is just posturing, trying to fake everyone out and make better deals for the studios. “Transformers” is going to sell plenty of DVDs. But the idea that these pirates can somehow get a print that’s a good copy, that’s where payola starts and where the crime world can get into it.
Source: Variety