America: My Time

Chapter 1161 The Transformation of the Phoenix Group

Chapter 1151 The Transformation of Phoenix Group
To admit mistakes, one must have a sincere attitude, which John didn't see in Sony. Perhaps this is because Sony hasn't reached its breaking point yet, and the home appliance market hasn't caused them significant losses. Only the Japanese personal computer market has been slightly affected, which isn't enough to cripple Sony. After all, this is just the beginning; the real explosion is yet to come. Whether it's the record market, the home appliance market, or even the home game console market, everything needs time.

Time was on John's side, and with such a good excuse, it would be foolish to give up now. Moreover, with such a good excuse, he might be able to extract even more benefits from those guys in Japan, making them pay a greater price. Right now, it wasn't him who was anxious, but those guys in Japan. Especially those energy companies—the price of energy from Sakhalin Island was completely different from that from the Middle East or Southeast Asia. They understood the choice perfectly well. Now that their interests were harmed, they naturally wanted to cause trouble for Sony and make Sony solve the problem!

If Akio Morita were in charge of Sony, those guys would still have to give him face, after all, he did a lot for them back then. But now that he's retired, they don't have as many concerns, and the pressure naturally falls on Sony.

Of course, John's reputation in Japan was affected to some extent after this incident, but compared to the benefits he gained, this impact was insignificant. Moreover, it wasn't him who provoked the trouble; rather, Sony started it first, and he was merely responding passively. So even if there was a problem, it was Sony's problem!
Although unwilling, Nobuyuki Idei returned empty-handed under John's forceful pressure, losing face and accomplishing nothing. This put even more pressure on Sony. This was not John's fault; they were simply too arrogant or greedy. If they had had even a little self-awareness, this would not have happened.

Perhaps this is Sony's decision. They are too risky and don't think John's counterattack will cause greater damage to Sony. Everything is at its limit now. After all, these guys in Japan have the heart of a crazy gambler.

"What did you say? Phoenix Group has partnered with Toho and reached an agreement with Toho?"

Soon, a new storm arose in Japan. Phoenix Media Group and Toho collaborated, and Nikkatsu Pictures would completely abandon its investment in pink films and shift its focus to theatrical development. In return, Phoenix Media Group would focus on animated films, which meant that most of the market would be given up. Naturally, Toho was willing to accept such a collaboration.

Today, Phoenix Media no longer has its Hollywood film studio group; Paramount Pictures has been spun off from Phoenix Media. Therefore, Toho naturally wouldn't have any ill intentions. Moreover, everyone in Japan knows that Phoenix Media primarily focuses on manga and animation, and has invested heavily in this area. At that time, no one would have imagined that Japanese anime culture would later become another pillar of the Japanese economy. If someone were to say that now, they would definitely be met with ridicule. Anime and manga are not mainstream forces in Japan!

"Yes, Phoenix Group has partnered with Toho, and the whole industry knows about it now. Daily Active Users (NAU) is now shifting towards investing in and co-producing films, rather than focusing on independent productions. They will be pursuing a high-quality approach in the future!"

"It seems Phoenix Group's transformation has begun. They're already scaling back in Hong Kong, and starting in Japan as well. Hong Kong and Taiwan are focusing on television dramas, while Japan is focusing on animated films. There's no result yet on the Korean side, but I believe things will change there too. The matter with TV Tokyo needs to be resolved quickly; we can't let those guys continue causing trouble, otherwise things will escalate and be very disadvantageous for us!"

Faced with such a dramatic change, the Japanese entertainment industry experienced a series of upheavals, impacting the development of many. The rapid shift in daily active users caught many off guard. The lack of momentum in the Hong Kong film market has multiple causes, and Phoenix Media is also making various adjustments in response to market changes.

With the transformation of Nikkatsu Pictures in Japan, many people are wondering where the saved funds will go—to Hollywood or China? Unfortunately, there is still no answer. However, Hong Kong talent has moved to Legendary Entertainment and Paramount Pictures. The once powerful Phoenix Pictures has lost its former momentum, as if the entire Phoenix Group is shifting towards theaters and distribution. This change has shocked many people, after all, the Hong Kong film market has not completely collapsed.

At this time, many people did not realize that some of Hong Kong's assets were being transferred to China, nor did they realize that with the spin-off of Paramount Pictures by Phoenix Media, it became easier for them to acquire film libraries. Phoenix Media's funds flowed into increasing its film library, and many Hollywood film and television libraries fell into Phoenix Media's hands. Even if those Hollywood giants were unwilling to sell, Phoenix Media bought out their online and Asian copyrights.

Countless classic films have already fallen into the hands of Phoenix Group, not only in Hollywood, but also in Hong Kong and Europe. After all, no capital will let go of an opportunity to make money; in their eyes, these are assets with little value, and no one will refuse to sell them for cash. "Director Han, cooperation between the two sides is not a problem; Phoenix Group can accept it. As for Hollywood, if there's an opportunity, that's fine too!" With the transformation of Phoenix Group, Beijing Film Studio took the initiative to approach them. Faced with such an opportunity, John naturally wouldn't let it pass; this was a great opportunity to accelerate his own expansion.

Although she knew John wasn't a difficult person to deal with, Han Sanping was still somewhat surprised to see him agree to her request so readily. He was too easy to talk to; she hadn't even asked for anything, and he had already agreed. She had originally thought she would have to pay a hefty price, as the behavior of those filmmakers in Hong Kong had given her some concerns. But that wasn't the case at all; John, as a media and entertainment tycoon, was still very easy to talk to.

What China lacks now is funding and experience in commercial films, but Phoenix Media Group has neither. After all, Phoenix Media Group was once one of the Hollywood giants, and even though it has now spun off Paramount Pictures, it still has management experience in this area. Moreover, Phoenix Media Group is now the world's largest cinema chain company with strong global distribution capabilities.

For Phoenix Media Group, entering the Chinese market was not initially about making money, but about cultivating the market. It doesn't bring much benefit to Phoenix Media Group in the current Chinese film market, but it's different in the long run. No matter how much they invest now, they will earn it back many times over in the future, not to mention that John has even better money-making plans.

In the 1990s, the rampant piracy market severely impacted the development of the film industry. John was targeting this market. Phoenix Media Group, with its vast film library and sufficient distribution capabilities, was not about to let go of this money-making opportunity. The DVD market could not be wasted, and the release of DVDs would further promote the vigorous development of VCDs.

With the development and improvement of technology, the price of VCDs has been driven down, and if there is a sufficient supply of films, it is naturally not a problem. The decline of the Hong Kong film market is actually closely related to piracy, and these industries are controlled by Hong Kong gangs. Coupled with the indulgence of the British, this rampant piracy was the result.

Even with Phoenix Pictures' excellent management, it couldn't stop rampant piracy. However, with the transformation of Phoenix Group, those guys' good days are over; they will face a counterattack from Phoenix Group. The DVD market cannot be allowed to fall into their hands, and they cannot be allowed to profit from it.

This time, John is not only targeting these pirates, but also the Japanese and European markets. Discs are a lucrative business, and the potential of this market has not been fully realized in the past. Now, John needs to unleash this potential and take control of the entire market.

With Phoenix Pictures reducing its film production and the market declining, the Phoenix Group naturally needs to find more profit opportunities, and DVDs are a promising industry. After so much planning, it's finally time to launch this project.

They worry about the collapse of the Hong Kong film industry, but they don't care about Phoenix Group. Hong Kong is not their only asset; the whole of Asia is their home turf. Even if the Hong Kong market is gone, there's still the Asian market. If the Hong Kong market isn't profitable, they can make money in Taiwan, South Korea, Japan, and even Southeast Asia. Now, Phoenix Group will invest its funds in other areas, no longer focusing solely on the Hong Kong film industry.

In a friendly atmosphere, John and Han Sanping had a good exchange and a brief discussion about the Chinese film market. Although John's views were not acceptable to her, as he was somewhat pessimistic, which is hard for a filmmaker to accept, what John said was true. The Chinese film market will not be too bad in the next two or three years, but it will soon enter an era where the annual box office is less than 10 billion yuan. That will be the dark period for Chinese films, a period that worries many people.

(End of this chapter)