National Tide 1980.

On January 12, 1992, a week before the great leader's southern tour, an important meeting concerning the company's future development was officially held in the office of Big Ship Entertainment Company, located in Block B of the Pier Carton Building in Beijing.

On that day, Ning Weimin, who had returned from France with his wife and children, and Yao Peifang, who had just finished coordinating overseas distribution matters in Hong Kong, were both present.

All middle-level managers of Dachuan Entertainment attended the meeting without the slightest negligence.

Meanwhile, leaders from Beijing Film Studio, Beijing Television, and Tianjin Television were also invited to attend the meeting. Zhao Daqing, general manager of another subsidiary of Ning Weimin, Dazhong Media Advertising Company, also sat attentively throughout the meeting.

At the start of the meeting, Yao Peifang stood up first and announced three major events that shocked everyone present, each of which touched the hearts of all those in attendance.

First, the epic drama "Romance of the Three Kingdoms," jointly produced by the National Television Drama Production Center with an investment of 120 million yuan and Ning Weimin with a personal investment of 50 million yuan, is expected to officially begin filming after the Spring Festival this year.

The National Television Drama Production Center has poured all its high-quality resources into this project and is unable to attend to other projects.

In addition, as national television stations increasingly assess the value of their own advertising, the profit-sharing conditions they are willing to share with partners are becoming less and less attractive. Therefore, in 1992, Dachuan Entertainment will mainly focus on in-depth cooperation with local television stations such as Beijing Television and Tianjin Television in its cooperation with television stations.

Secondly, regarding the specific cooperation plan for the new year, in addition to continuing the variety show cooperation with TV stations in Beijing and Tianjin on "Dachuan Variety Show", Dachuan Entertainment has two directions for deepening cooperation in the field of TV dramas.

First, a regular segment will be added, featuring "Japanese Drama Theater" every night from 9 pm to 10 pm.

The confirmed dramas include five works from TBS, such as "Human World" and "Girl's Suspicion".

Six works by Fuji Television, including "101st Proposal" and "Tokyo Love Story".

In addition, four works were produced by Fog Studios, including "The Magnificent Family" and "The Black Leather Manual 2".

Second, we will launch a plan to adapt Jin Yong's martial arts novels into films, with at least one film per year, including "The Deer and the Cauldron", "The Legend of the Condor Heroes", "The Return of the Condor Heroes", and "The Heaven Sword and Dragon Saber".

Third, given that filming Jin Yong's martial arts works is a long-term and massive project, after comprehensive consideration, Da Chuan Entertainment has decided to invest 30 million RMB to build a martial arts city next to the Zhuozhou Film and Television Base where the National Television Station filmed "Romance of the Three Kingdoms". The initial plan is to focus on the style of the Song and Yuan Dynasties to meet the filming needs of the "Condor Trilogy" first, and then gradually expand it later.

As soon as Yao Peifang finished speaking, the once quiet office erupted in chaos. The attendees had various expressions and their discussions rose and fell.

Many people, filled with surprise and concerns, expressed their opinions, instantly creating a lively yet somber atmosphere.

After Yao Peifang signaled that everyone could speak, the first to speak were the middle-level managers of Dachuan Entertainment.

The marketing manager was the first to raise his hand and speak, his tone full of worry and his expression solemn.

"President Ning, President Yao, I have a concern. President Ning has always maintained a deep partnership with the National Television Drama Production Center and the National Television Station. Thanks to this relationship, our company has been able to access excellent drama series resources for overseas distribution after its establishment. In addition, the drama series imported from Japan have gained a large national audience. Now, by suddenly changing our strategy and distancing ourselves from the National Television Station, will this shake our business foundation? If we lose our national audience base and excellent drama series resources, not only will the company's profits be at risk of a significant decline, but our influence will also be greatly diminished..."

His words immediately resonated with the other executives, and the production manager quickly raised his hand to add to the discussion.

"President Ning, President Yao, I think there's another point. We are a newly established company and lack experience in film and television production, so we must rely on external assistance. The National Television Drama Production Center brings together the country's top screenwriters, directors, and production teams. Since we are investing heavily in adapting a large number of Jin Yong's martial arts novels into television series, the best way to improve our production capabilities is to leverage their resources. If we end our cooperation now, we will lose access to technical support and have to shoulder the production challenges alone. Of course, we can obtain assistance from Japan through President Ning's connections, but the two countries have different cultures and aesthetics. I am worried that without the help of the National Television Drama Production Center, we may not be able to guarantee the quality of the produced series."

Other middle managers also added their concerns.

"Moreover, the advantages of the national TV station are undeniable. We previously relied on the national TV station's channels, and our drama distribution and advertising sales went smoothly. Now that we are suddenly switching to cooperating with local TV stations, our advertising revenue and the influence of our dramas will likely be significantly affected, which is a considerable risk to the company's revenue."

The executives at Dachuan Entertainment spoke one after another, their voices filled with worry.

Although it's embarrassing to scold a monk in front of a bald man, no one would openly express disrespect for the local TV station in a meeting.

However, their core concerns always revolve around two points.

One concern is that if they become estranged from the national television station, Big Ship Entertainment will lose its nationwide audience and high-quality resources.

Secondly, there are concerns that cooperating with local TV stations would lead to a decline in the company's production capabilities and revenue losses, which would be detrimental to the company's long-term development.

Such an implication clearly shows that in their eyes, local TV stations are inferior to national TV stations, which was enough to make the representatives of the two local TV stations look unhappy and embarrassed.

Fortunately, both Ning Weimin and Yao Peifang had anticipated these reactions.

Seeing the anxious expressions on everyone's faces, Yao Peifang remained calm. She raised her hand to signal everyone to be quiet, and her voice, though not loud, was extremely penetrating, accurately addressing all their concerns.

Moreover, almost every sentence hit the nail on the head, clearly breaking down the three core issues raised by the cadres.

"First, regarding the first question, I want to clarify one point: while the National Television Station is the superior unit of the National Television Drama Production Center, the two are by no means entirely equivalent." Yao Peifang's gaze swept across the room, her tone firm. "Our company's current adjustment only involves ceasing cooperation with the National Television Station in program distribution and advertising revenue sharing. However, our cooperation with the National Television Drama Production Center in drama series transactions and production will not only continue but will be further deepened. Don't forget, Mr. Ning was also one of the investors in 'Romance of the Three Kingdoms.' Without external funding, the National Television Drama Production Center would struggle to produce such a large film and television project on its own. Therefore, as long as there are high-quality domestic drama projects in the future, Dachuan Entertainment will continue to invest on behalf of Mr. Ning. Moreover, starting today, Dachuan Entertainment will also officially venture into independent film and television production. In the future, we will be able to produce high-quality content ourselves. For us, the resources of high-quality TV dramas will only increase, not decrease. We will never fall into a resource shortage predicament because of distancing ourselves from the National Television Station."

These words immediately calmed everyone down. Yao Peifang paused briefly before continuing to address the concerns about technical support.

"Secondly, regarding everyone's concerns about production technical support, we must also look at it objectively. I understand everyone's desire for technical support from the National Television Drama Production Center, but that's completely unrealistic. Given the current objective conditions, even if we continue to maintain close cooperation with the national television station, the National Television Drama Production Center simply doesn't have the capacity to help us right now. Don't forget, all their top screenwriters, directors, and production teams are already fully engaged in the filming of 'Romance of the Three Kingdoms,' and they're too busy with their own projects to spare any time to assist us in filming a Jin Yong martial arts drama."

As she spoke, Yao Peifang gestured to the leaders of the Beijing Film Studio and the two local TV stations beside her, her tone softening somewhat.

"This is why we specially invited the leaders from Beijing Film Studio, Beijing TV, and Tianjin TV to come here today—we plan to integrate the core strengths of the three units, concentrate our superior resources to form a dedicated production team, and jointly promote the filming of Jin Yong's martial arts dramas. This will not only solve our own problem of insufficient production experience, but also achieve a win-win situation for all parties."

As soon as she finished speaking, Yao Peifang added some specific details to reassure everyone.

"I won't elaborate on Beijing Film Studio. Because of the relationship between General Manager Ning and Director Chen, we've collaborated with them many times. Last year, our joint production, 'Peony Lantern,' was a box office hit in Hong Kong and Japan. We can be considered quite compatible partners. Beijing Television and Tianjin Television have also achieved remarkable success in producing their own dramas in recent years. For example, Tianjin Television's 'Dragon Mouth Teapot' and 'Blood Splattered in Tianjin' are both highly rated and distinctive local works. Beijing Television's Beijing Television Drama Art Center was established earlier than the National Television Drama Production Center. Its productions, such as 'Bell and Drum Tower,' 'Four Generations Under One Roof,' and 'Yearning,' achieved explosive ratings and drew huge audiences. In particular, 'Na Wu' is a high-quality drama jointly produced by the three units in their early years. So, in terms of technology and team foundation, we don't need to be pessimistic. Having three units as our partners is our technological strength."

"Moreover, this doesn't mean we can't benefit from the National Television Drama Production Center. Mr. Ning invested 50 million yuan in 'Romance of the Three Kingdoms,' and he also has a share in the Zhuozhou Film and Television Base. As the saying goes, even if you don't respect the monk, you should respect the Buddha. Since Mr. Ning is the owner of Dachuan Entertainment, when we film the scene of Shi Lang attacking Taiwan in 'The Deer and the Cauldron,' we can use the filming team and ship props from 'The Battle of Red Cliffs' in 'Romance of the Three Kingdoms' for a combined shoot, which will save costs and ensure the filming effect. In addition, we have already finalized the martial arts director, Mr. Yuen Woo-ping. As the most important technical support, he will lead his team to simultaneously oversee the filming of 'Romance of the Three Kingdoms' and our martial arts drama in Zhuozhou. With him overseeing things, everyone doesn't need to worry about the quality of this milestone. This is also why we are building a martial arts city next to the Zhuozhou Film and Television Base. In the long run, whether it's co-production or independent production, diversified cooperation among multiple production teams to share resources and complement each other's shortcomings will be the norm in the industry."

It goes without saying that good oratory skills can be inspiring, and detailed data is the most convincing.

After he finished speaking, applause spontaneously broke out in the conference room.

However, Yao Peifang was unwilling to wait for the applause to subside and went straight to the revenue issue that everyone was most concerned about, giving her final explanation.

"Regarding the third question, I must say that everyone's concern that switching to local stations will affect revenue and influence is actually a misconception. While the national television station does have a clear platform advantage, its advertising slots are becoming increasingly limited, and its profit sharing is decreasing year by year, making it a 'white elephant'—unprofitable yet difficult to abandon. On the other hand, local stations, especially Beijing and Tianjin stations, as municipal television stations, have dense population coverage, strong economic foundations, and offer very favorable cooperation terms. Take our current collaboration on 'Big Ship Variety Show' for example; the advertising revenue from just this one program from the two local stations is expected to reach half that of similar programs on the national television station. If we deepen our cooperation and expand to other programs, revenue will only steadily increase, and will certainly not be less than when we cooperated with the national television station. Furthermore, in addition to variety shows and dramas, the two stations are also discussing with us the import of animated films. This means that our future cooperation will be more diversified. And this direction of cooperation is self-evidently important for us, having already acquired the rights to many Japanese and French animated films. But the problem is that the national television station is completely blank in this area, with no possibility of cooperation with us."

Yao Peifang's words were clear and well-reasoned, acting as a reassurance that effectively calmed everyone's anxiety.

The middle-level managers, who had initially looked worried, gradually relaxed, and their murmurs of discussion changed from doubt to agreement.

Compared to their previous awkward expressions, the representatives from Beijing TV and Tianjin TV now had smiles on their faces, and their gazes toward Yao Peifang showed more approval.

But that wasn't the end of it, because at that moment, Zhao Daqing, the general manager of Mass Media Advertising Company, stood up at the opportune moment, holding a thick document in his hand, providing equally reliable supporting evidence.

“I completely agree with what Mr. Yao said. As a partner of Dachuan Entertainment in advertising business, I have a set of data here that can further illustrate some of the advantages of Dachuan Entertainment’s shift to local TV stations.”

He opened the document and read out the key data.

"Everyone should know that when companies place advertisements, what they value most is never the breadth or number of people reached, but the quality of the target audience—that is, the size of the city's population and its consumption level. Although the national television network covers the entire country, given my country's current economic strength, most regions are relatively underdeveloped, with limited consumer spending power, so their actual value to advertising companies is not significant. On the contrary, municipalities like Beijing, Tianjin, and Shanghai, as well as economically developed regions like Guangzhou and Shenzhen, have strong consumer spending power, high advertising conversion rates, and can contribute far greater advertising benefits than other regions."

Zhao Daqing paused, then added further.

"If we can firmly grasp the Beijing and Tianjin TV stations, and then gradually negotiate with the Shanghai, Guangzhou, and Shenzhen TV stations, the advertising revenue will be more profitable than cooperating solely with the national TV station. If we further expand into economically strong cities like Hangzhou, Suzhou, and Nanjing, and control all the advertising channels in these core cities, I am confident that we can increase our company's advertising profits several times over. On the contrary, the national TV station's terms have been decreasing as cooperation progresses, and we can only passively accept them. If this continues, it will become a slow and painful process."

These words, coupled with solid data, completely dispelled everyone's concerns.

The middle-level cadres present nodded in agreement, their worries completely vanishing, replaced by expressions of sudden understanding. They whispered among themselves, their tone gradually becoming more expectant—it turned out that the "local encirclement of the central government" strategy wasn't entirely without merit.

The two CEOs did not abandon their advantages, but rather chose a more pragmatic and profitable path.

Although the audience of local TV stations may seem to have shrunk, as long as the city has a good economy and a large population, the profit margin is actually larger. For the company's long-term development, this is undoubtedly a more worthwhile and promising choice.

On the other hand, it seems a bit like a big company bullying its customers that the national television station is doing this.

If we don't seek other solutions, we're essentially just waiting to die.

If left unaddressed, Big Ship Entertainment's advertising revenue will only be halved one day.

Moreover, Yao Peifang is right; the national television station does not have an animation program and can only cooperate with local stations.

Unfortunately, their own variety show, "Big Ship Variety Show," is now competing with "Zhengda Variety Show," and there's even suspicion of them trying to "蹭热度" (蹭热度 is a Chinese internet slang term meaning to piggyback on each other's popularity). It's all troublesome.

As the saying goes, a short pain is worse than a long one, so it's better to break up sooner rather than later. (End of Chapter)