China Entertainment’s rescue plan is hard to come by

Chapter 997 So-called Bad Intentions [Part Two]

The meeting room was quiet, with only the hum of the air conditioner breaking the silence.

The technical engineers on both sides looked serious and quickly took notes. Harvin, on the other hand, had a complex expression that said, "They're definitely going to do something big."

Yu Yuanshan felt his throat was a little dry, but Sun Yi was extremely serious. Judging from his tone and expression, this was basically the minimum requirement for him as the chief director.

He had watched the demonstration video and experienced the equipment's effects. Even as an "outsider" who wasn't a professional in arts and culture events, he could feel the difference. Not to mention the experts present at the center, who were simply too proud to speak up.

The problem is that I don't have money.

Yu Yuanshan took a deep breath helplessly, looked at Sun Yi, and almost forced himself to speak:
“Sun Yi, your ideas seem very sophisticated. I believe that once implemented, the show's effect will definitely be amazing. However, we face a very real constraint—the budget.”

He paused for a moment, then gave a number.

"This year, the station implemented the central government's policy of frugality, and the total production budget approved for our project is 4000 million yuan. This covers all costs from program concept, rehearsal, production, to all stage design, costumes, technology, labor, etc. Your 'systems' alone amount to 5000 million yuan."

"4000?"

Liu Yifei, who had been quietly listening and taking notes, looked up in genuine surprise this time. She looked at Sun Yi, then at Yu Yuanshan, and couldn't help but confirm, "Team Leader Yu, you mean the total production cost is 4000 million? I... I spent almost that much just on stage space and special effects for my concert tour last year. Yours..."

Liu Yifei didn't say the rest, nor was she comfortable saying it. She wasn't showing off her wealth, but rather, as someone with some industry insider knowledge, she directly expressed how tight the budget was, making it practically a pipe dream for realizing Sun Yi's ideas.

Sun Yi wasn't much better than Liu Yifei either; he frowned upon hearing the figure, realizing he had indeed overlooked the budget issue.

When he signed the contract, he didn't really think about the budget. He just symbolically asked for 1 yuan for his personal director's fee, which also reflected a bit of patriotism.

In his subconscious, a large-scale gala like the Spring Festival Gala costs as much as an epic film project.

First of all, the actual program is long, at least four hours long, starting at 8 pm and continuing until after midnight. This doesn't even include the preparation and rehearsal time beforehand, which often takes two or three months, almost like filming a TV series.

Then, there are many actors involved, especially since more than half of the programs involve multiple performers. Even those with fewer performers are mostly domestic and international celebrities. Even if they are willing to lower their fees because of the prestige of the Spring Festival Gala, they still have to bear the costs of transportation, costumes, accommodation, food, and other miscellaneous expenses.

Although each item may seem small, the number of people involved is considerable, and together they make up a significant number.

There are also the salaries and bonuses of the staff inside the arts and culture center; these costs alone would easily amount to 20 to 30 million.

The final major expense is the equipment needed for various programs, including but not limited to stages, sound systems, lighting, special effects, and so on. Some of these can be used by CCTV, while others need to be purchased separately, just like the items Sun Yi just mentioned.

All these costs combined, if you can get it for 100 million, then you're someone who knows how to manage money.

The meeting reached a stalemate, and Harvin, with a gloating expression, seemed to think, "Let's see what you can do about it."

Sun Yi was thinking about how to break through this budget.

5000 million is not much, nor is it a big deal, for him or for Xingkong.

But without rules, nothing can be accomplished; one must be mindful of each situation individually.

He called over the technical lead at Xingkong, asked a few questions in a low voice, then nodded, turned around and spoke again:
"Team Leader Yu, I personally and Xingkong understand CCTV's requirements for controlling the Spring Festival Gala budget, but as the chief director, I cannot compromise on the program's quality. How about this: for all the costs I just mentioned, all the systems and equipment that Xingkong has developed in-house can be provided to CCTV for free. Consider it our contribution to the Spring Festival Gala."

"However, there are some key pieces of equipment that we at Xingkong don't have the capacity to produce, and we need to import or lease them from overseas. I just calculated that this part of the cost will be around 3000 million. What do you think?"

Sun Yi's words were already very clear: Starry Sky's own products would be considered a donation, and all the systems and special effects equipment would be available for free trial. After the Spring Festival Gala, the software systems would be left behind, and the equipment could be packed up and taken away by the user, which would be considered a 7-day no-reason return policy.

In addition, the starry sky also needs to import special items from overseas, which requires CCTV to spend real money.

Even so, he still cut CCTV's extra budget by almost half.

Just when he thought Team Leader Yu would readily agree, he gave a bitter smile.

"Director Sun, we really can't increase the budget. To be honest, the initial budget from the station was 3000 million. It wasn't until Director Zheng decided to sign you and reported to the station leaders that we managed to secure an additional 1000 million, bringing the total to 4000 million. We can't increase that amount at all."

"Not a single drop can be added? No discussion?"

"It's not negotiable."

"."

Sun Yi was speechless.

The coordination meeting was momentarily at an awkward juncture.

The technicians on both sides were looking at their respective bosses.

Yu Yuanshan was willing but unable to help, while Ha Wen just watched the show. Sun Yi was anxious but couldn't think of any other solutions.

He had just come up with the optimal solution, minimizing the budget cost to the greatest extent possible, but alas...
Seeing Sun Yi's worried expression, Liu Yifei couldn't help but lean closer and whisper in his ear, biting her lip, "Honey, how about we contribute the remaining 3000 million? Consider it a donation to the Spring Festival Gala."

Sun Yi shook his head after hearing this.

He had thought of this method long ago, but it was simply impossible to implement.

It's not that he's stingy or unwilling to donate to CCTV. With his current financial resources, it wouldn't be a problem to donate more to CCTV. The issue is that's not how things should be done.

The software and special effects system are fine; if one is used for trial by the Spring Festival Gala, it's acceptable.

But those obviously imported equipment are a different story. This involves a matter of regulations and rules, as well as saving face.

Seeing Sun Yi shake his head, Liu Yifei roughly guessed the problem and felt that the donation method was not appropriate.

But what should we do?

I can't let my husband give up on the quality of the show just for this little bit of money.

Liu Yifei also began to rack her brains.

Until she saw Sun Yi pick up the bottled water on the table with a sullen expression, take a big gulp, her eyes suddenly lit up, and she grabbed his arm.

"husband!"

"Oh, you want a drink?"

Sun Yi was caught off guard, thinking that the little girl was also thirsty. He looked at the bottled water in his hand and handed it to her.

"Ugh, I don't want to drink it!"

Liu Yifei accepted it with a mixture of amusement and exasperation.

"Not drinking? Then what about you?"

"advertise!"

"What...advertisement?"

"It's an advertisement!" Liu Yifei exclaimed anxiously, holding up a bottle of mineral water and waving it vigorously in front of Sun Yi's eyes.

Oh my! That's right, the Spring Festival Gala also generates advertising revenue.

The budget given by CCTV cannot be changed, but advertising revenue can be adjusted, right?

Sun Yi's mind immediately clicked, and he looked at Liu Yifei with excitement, wishing he could give her a "little red flower" right there and then.

Liu Yifei performed exceptionally well and deserves praise!

Sun Yi gave the girl a look that said, "Wife, you're amazing," and then turned to the other side, basking in her extremely pleased gaze.

"Team Leader Yu, can't this portion of the revenue be specifically used to improve the production quality of the gala? Even just a portion of it?" Before Yu Yuanshan could reply, Ha Wen spoke up first.

She pursed her lips, her tone conveying a sense of "you're so naive":

"Director Sun, I would like you to know that the advertising revenue from each Spring Festival Gala is an important part of the station's annual revenue, and it is included in the station's overall budget."

"The station needs it to balance the operation of all channels, especially those public service channels that are not profitable or even require a lot of investment, including education, agriculture, military, science popularization, etc. Allocating 4000 million yuan for the Spring Festival Gala production fee in conjunction with the overall situation is already the full support that the station can provide under the current spirit."

"Our production team has separate revenue and expenditure lines, and we don't have the authority to independently manage advertising revenue."

When Sun Yi heard this for the first time, he looked at Yu Yuanshan for advice, and the latter nodded with a wry smile.

He didn't expect that his idea would be so ruthlessly rejected in an instant, and even Liu Yifei looked dejected.

Reality stands like a cold, iron wall, towering before passionate artistic ideas.

Ambitious plans for technological innovation have run into a hard budget ceiling and a complex systemic logic for resource allocation.

The coordination meeting reached a stalemate once again, with an invisible pressure looming. Everyone was waiting to see how this young, ambitious director, who brought fresh ideas, would face this first, and perhaps most difficult, hurdle.

Sun Yi's fingers tapped unconsciously on the table, his gaze deep.

He realized that the Spring Festival Gala was not just a competition of artistic creativity, but also a comprehensive test of resource competition, understanding of rules, and even the wisdom to break through existing limitations. The physical limitations of the stage could be compromised, but if one's hands and feet were completely tied by resources and old rules, then the so-called "maximum say of the chief director" would be nothing but empty talk.

This matter must be resolved today!

The budget is already fixed, but when it comes to money, it's all about increasing revenue and cutting costs.

Cutting costs is definitely not an option now; the only solution is to increase revenue.

We still need to start with income!
"Team Leader Yu," Sun Yi spoke again, breaking the silence.

"You just said that the advertising revenue from the Spring Festival Gala is included in the station's overall budget and managed uniformly. I understand that. However, could I know about the current advertising situation for this year's Spring Festival Gala, that is, what is the approximate scale? Or, how much advertising revenue is expected to generate for the station?"

The question was very direct, even a bit sensitive. The expressions of the CCTV staff present all changed slightly.

Logically speaking, since it concerns the Spring Festival Gala's advertising revenue, this shouldn't be a core data point that the directing team needs to know. However, it seems reasonable for Sun Yi, as the chief director, to inquire about the "economic fundamentals" of the gala.

Yu Yuanshan pondered for a moment, then slowly nodded. He cleared his throat, pulled a briefing from the file folder in front of him, and spoke in a steady voice:

"Director Sun, since you asked, I can give you a brief overview of the major advertising bidding processes that have been completed so far. Overall, the market's recognition of the commercial value of the Spring Festival Gala platform is still very high."

"As of now, the bidding process for the ten-minute 'prime advertising slot' before the official broadcast of the gala has been completed, with twenty advertisers sponsoring the slot. Most of them are leading domestic internet technology companies. The total advertising revenue for this slot is estimated to be around 2.4 million RMB."

2.4 million! And that's only in the first ten minutes!
Liu Yifei listened from the side and was secretly amazed. Although she was no stranger to the sky-high endorsement fees in the entertainment industry, the advertising value of such a top national platform and top moment still made her directly feel another side of the Spring Festival Gala as a "commercial behemoth".

Yu Yuanshan continued, "In addition, Gree Electric Appliances has successfully renewed its contract for the traditional focal point—the midnight New Year's countdown advertisement. This is the eleventh consecutive year that they have secured this position. The sponsorship fee for this single item is also in the seventy million yuan range."

Seventy million, all for that brief ten-second countdown!

The technicians from Xingkong also stared blankly.

“In addition to that,” Yu Yuanshan closed the briefing, “there are also various other sources of revenue, including packaged advertisements throughout the entire gala, scrolling text advertisements at the bottom of the screen, and new media broadcasts. Preliminary estimates suggest that this year’s Spring Festival Gala will bring the station a total advertising revenue of around 500 million yuan.”

Five hundred million!

This number is like a heavy boulder crashing into the small pit of "4000 million production cost," creating a stark contrast that is almost absurd.

The staff at Starry Sky exchanged glances, and even Sun Yi himself showed a hint of surprise.

It turns out that the entire production budget for the gala was less than 10% of the advertising revenue.
"Five hundred million in revenue, forty million in production budget," Sun Yi repeated slowly, his gaze sweeping over Yu Yuanshan and Ha Wen. "This return on investment is truly..."

He didn't finish his sentence, but everyone understood what he meant.

The atmosphere became a little awkward, but Sun Yi didn't dwell on it. Instead, he asked more probing questions.

"Team Leader Yu, I have another question. These are all advertisements outside of the program. Regarding the presentation of advertisements within the program content itself, does the station currently have any clear policies or regulations?"

Yu Yuanshan quickly shook his head.

"Director Sun, advertisements in the program are not allowed. Around 2011, the station clearly stipulated that any form of hard-sell advertising is strictly prohibited in the Spring Festival Gala program. This is to maintain the purity of the Spring Festival Gala as a national cultural feast and the audience experience, and to avoid excessive commercialization."

Sun Yi nodded knowingly, but a sly glint flashed in his eyes. He tentatively spoke:
"Hard advertising is not allowed in the program. So what about soft product placement? Or, in other words, brand elements appearing in a more subtle, less noticeable way that fits the program content? Is this level of subtlety permitted by policy?"

"Soft implantation?"

Yu Yuanshan was taken aback, clearly not expecting Sun Yi to ask such detailed questions and "exploit loopholes".

He frowned slightly, carefully recalling the relevant articles and spirit, his tone becoming somewhat hesitant:
"The station's explicit regulations mainly prohibit 'hard advertising,' and 'soft product placement' should also be included in this 'etc.' In other words, in principle, it is not allowed. We must ensure the artistic independence of the program and avoid commercial factors interfering with the creative process."

"Not allowed in principle."

Sun Yi softly repeated the five words, the corners of his mouth curving upwards almost imperceptibly.

He knows this all too well.

If it's not allowed in principle, then you can do it, but if something goes wrong, you'll be responsible for the consequences.

He looked at Yu Yuanshan, and from the other man's slightly evasive eyes and cautious words, he became even more certain of his judgment.

Harvin, who was standing to the side, seemed to want to say something, but his lips moved and he ultimately didn't utter a sound. He just frowned a little more.

Sun Yi felt more confident.

The budgetary predicament is very real. Trying to extract another portion from the 500 million yuan already allocated for advertising revenue is extremely difficult, or even impossible, because it involves CCTV's complex internal distribution of interests.

However, what if we could open up new and incremental sources of funding for the gala itself without violating, or at least not explicitly violating, existing regulations? Even if it's just a supplement, even if it's only at a 10% rate, it could greatly alleviate the pressure on technology upgrades and creative implementation.

Sun Yi refused to believe that with his abilities, he couldn't secure an extra few hundred million yuan in advertising revenue. Soft product placement is so easy for a film director!

However, despite saying that, he didn't point it out on the spot, nor did he delve deeper into the details of the product placement. That would seem too eager and could easily arouse unnecessary suspicion and backlash. What if the leaders explicitly forbade it? He had to get things sorted out first, make it a fait accompli, and let the leaders see the money—no, rather, see considerable "benefits"—before he could bring the matter up on the table.

Afterwards, Sun Yi appropriately put the topic aside and returned to the program discussion, sharing his core creative concept for this year's Spring Festival Gala with several leaders of the center.

In this regard, everyone unanimously expressed their agreement.

The atmosphere eased considerably in the latter half of the meeting.

As soon as they left the studio and got into the car, Liu Yifei couldn't wait to ask, "Honey, you just asked about product placement, is that what you wanted?"

Sun Yi fastened his seatbelt, then fastened the one next to him, and smiled, "My wife knows me best!"

Liu Yifei chuckled, as if she knew it, and said, "I knew what you were up to the moment I saw your face!"

"Hey, watch your words, okay? What do you mean by 'face'? How can you talk about your own husband like that?"

"That's just your true colors. Every time you have some bad intention, it's the same?"

"Hey, look at my face now, what kind of bad intentions are I plotting?"

"Stop it, ugh, lipstick! So annoying~"

I'm never wearing a seatbelt again, I can't even run away now!!!

(End of this chapter)