America: My Time

Chapter 941 Film and Television Cooperation
Chapter 911 Film and Television Cooperation

At this time, John was discussing cooperation with his superiors in the media and entertainment field. Phoenix Group wanted to enter the mainland market, or more accurately, Phoenix Pictures wanted to establish itself in the mainland. This required communication, as it was no small matter. There are no small matters in the media, not to mention how astonishing Phoenix Group's size is. Even though Phoenix Group is a Hong Kong company, it still needs to sit down and discuss things, not to mention that it also involves film and television bases, cinemas, and so on!

“Mr. John, is this really necessary? The cinema chains that Phoenix Group already controls can import films from Phoenix Pictures. Is it really necessary to establish our own film company in the same region? Besides, Phoenix Cinemas has never accelerated its expansion in mainland China and has always been very cautious. We have no complaints about it!”

Although Phoenix Cinemas has a small presence in mainland China, every film selection is reported to the Film Bureau, and only after approval will it be released. John had long ago made strict regulations on this matter, as he did not want to follow in the footsteps of those guys in Hong Kong and make such a basic mistake.

"Yes, it is absolutely necessary. I don't know how you view the development of film companies, but in my opinion, it is impossible to grow and thrive by relying solely on one place. I don't know much about the situation in the mainland, but I do know that there are many problems with revenue sharing. Moreover, the reason why Phoenix Group cannot expand its distribution is because we also need to truly understand the situation in the mainland."

“Mr. John, you’re holding back. Our cooperation has already been approved by the higher-ups. There’s no need for you to be so cautious. Just say what you need to say, and we’ll be happy to hear it.”

Seeing John's cautious attitude was very satisfying, at least that's what those guys in Hong Kong have. Those Hong Kong filmmakers are all arrogant and look down on them, but that doesn't exist in Phoenix Group, Legendary Entertainment, or in John himself. Since John started investing in China, he has always treated everyone equally, without a trace of arrogance!
John, with his experience from the future, would never have made such a foolish move unless he was being reckless. He knew that the Chinese market would be amazing in the future, so how could he give up such a great market? How could he let his current weakness make him arrogant?

"Actually, based on our understanding over the years, China does have a film market, but your film companies have problems, or rather, your directors are always making films that they want to make, not films that the audience wants to see. Art films have no development potential. Europe is a good example. Hollywood has never been about art, but about commerce. The reason why Phoenix Group is allowed to build its own film company in mainland China is to reduce costs and have more room to survive."

"Mr. John, you're being too modest. Phoenix Pictures is a Hollywood giant, Phoenix Group controls Paramount Pictures, and has numerous operations in Asia!" They were quite familiar with Phoenix Group and Legendary Entertainment, as these were true multinational giants with astonishing influence. Fortunately, both media groups maintained a neutral stance, and no other hostile situations arose. It was precisely because of this that Phoenix Group was able to pave its way for development in mainland China!

John shook his head and said, "This isn't me being modest; it's the truth. Although Legendary Entertainment and Phoenix Media are Hollywood giants, we've always faced immense pressure to survive. The reason these two giants suppress star salaries in Hollywood is to reduce their own costs. Only by controlling costs can they alleviate their pressure. Big-budget collaborations between Hollywood giants are about sharing costs. The most important reason Phoenix Pictures has been able to develop so quickly is because it holds a larger market share. We have a dominant market in Taiwan, Japan, South Korea, and Southeast Asia. This isn't just because of the quality of Phoenix Pictures' films, but also because of our branches in those countries, which allow for resource sharing. It's precisely because of this that we've gained recognition in these markets!"

John was right. When countries begin to change in the future, Hong Kong films will be impacted, but Phoenix Group and Phoenix Pictures will not, because they have already taken root in those countries and are not outsiders!
"Mr. John has a lot of confidence in our market, but we ourselves don't have that much confidence!"

"I do have absolute confidence in this market. As long as we take the commercial route, there won't be any problems. Moreover, if the revenue sharing with theaters can be improved, there will be a better future. We can't put all the pressure on the film companies, otherwise they will get deeper and deeper into trouble. Without sufficient profits, they cannot afford the losses caused by project failures. Of course, this only applies to companies like ours; it's not the same for the film companies here!"

Have any Chinese film studios gone bankrupt? No, they're all doing well because they have powerful connections. But that's precisely what's led them into this predicament, because they only think about art, not commerce, which has resulted in the current situation!
"Mr. John, what is your plan? Could you elaborate?" "A win-win cooperation, collaborating with the mainland. After all, with the development of Phoenix Cinemas, we need more films. If we only import from Hong Kong and Taiwan, it might not be a problem in the short term, and we might even gain recognition. But in the long run, problems will arise. If we establish ourselves in the mainland and have our own film company, it will be completely different. We will be a Chinese film company, which will not only reduce our costs but also give us access to a larger market. The reason we are so eager to build our own film and television base is because we need to reduce costs. Take Japan as an example. Due to land restrictions, it's impossible to build as many buildings as we want there. After filming, they are almost all demolished. If the same needs arise again, we need to rebuild, which naturally increases costs. With a film and television base, there will be no such problem, and it will greatly reduce our costs. Hong Kong doesn't have this environment, and neither does Taiwan. This place is the most suitable."

Given the needs of Phoenix Group and Legendary Entertainment, this is indeed sufficient to support a massive film and television base. After all, these two groups not only have film companies, but also television stations, and not just one or two. Their own needs alone can fully support such a film and television base.

"Mr. John, your investment is quite substantial, even exceeding that of Universal Studios, yet the returns are minimal!" Currently, China's economy is still developing, so the existence of film studios naturally won't generate profits or tourism. However, over time, as China develops, things will change!

"That's true. In the short term, we'll only continue to lose money, but this is necessary for the two major media and entertainment groups, and we can afford this loss. In the short term, we will indeed continue to lose money, but in the long term, it will play a vital role in the development of the two major entertainment groups. It will reduce many unnecessary expenses, lower production costs, and reduce corporate risks, so such an investment is worthwhile!"

John paused here, then continued, "Actually, if things here can meet the demand, we'll also make some shifts to Hollywood. Only when production costs come down will we have more confidence. To be honest, the situation in Hollywood isn't ideal right now. Star salaries are skyrocketing, seriously impacting the development of film companies. If Legendary Entertainment and Phoenix Media weren't Hollywood giants, we'd probably already be affected by those stars. But we don't know how long we can keep those guys in check, so we have to prepare for the worst. The cost of props and sets in Hollywood is enormous, not to mention the labor costs, which are insane. Similarly, star salaries in Hong Kong and Taiwan are also quite high, while things are much better in mainland China."

In terms of salaries, Hong Kong and Taiwan are too high, while South Korea and Japan are much better, not to mention mainland China. This is one of the reasons why John moved there. Of course, John also doesn't have a positive outlook on the development of Hong Kong films. After all, those guys are too crazy now, they're willing to do anything for money, and the quality of Hong Kong films is declining sharply. If this continues, it won't be long before they're destroyed!
If film and television production were moved to the mainland, both Taiwan and Hong Kong would see a dramatic reduction in costs. This is why John began preparing to build a film and television base as soon as the cooperation agreement with China was reached.

How many years will it take to recoup the costs of such an investment? It's hard to say, which is why many people don't see the potential in such projects. But John doesn't care. For the two major entertainment groups, it's a small matter. Such an investment is worthwhile.

"Mr. John, does Phoenix Pictures' mainland subsidiaries primarily feature actors from Hong Kong and Taiwan?"

"No, we prefer to cultivate talent from China, and they have more advantages. However, there are some things we need to make clear beforehand. We will control the salaries of stars. Just like in Hollywood, we cannot accept high salaries, otherwise it will pose a huge risk to the film company. If the project fails, there will be huge losses. Therefore, when we sign new talents, it is not a contract for one or two films, but for multiple films. We need to make this clear in advance to avoid disputes later, so that people will not think that we are intentionally suppressing them!"

(End of this chapter)