Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 154, Section 152: Seven Rebel Kings Gather in the Capital

The enthusiastic applause and dazzling starlight inside the Beijing Exhibition Center Theater gradually faded away.

As the lead actors and guests left through a special passage under the escort of security personnel, the ordinary audience members, still eager for more, filled out the "Audience Opinion Survey Forms" distributed by the staff and, with excitement and chatter, stepped into the cold night.

The survey results showed that the vast majority of comments were "very satisfied", "funny and touching", and "hope for a nationwide release as soon as possible".

Backstage at the theater, after a brief exchange with Zhang Heping and others from Forbidden City Film Studio, Wang Sheng, Han Sanping, and others invited a host of heavyweight guests, including Andy Lau, Zhang Guorong, Stephen Chow, and Zhao Benshan, along with core members of the Beijing Film Studio Alliance, to travel in several arranged vehicles to the Kunlun Hotel for a celebratory luncheon.

This luncheon was both a way to thank the guests for their strong support and a celebration of the successful conclusion of the "30 Days" national tour.

Amidst the clinking of glasses and lively conversation, everyone was optimistic about the film's market prospects, and their words were full of praise for the Beijing Film Studio Alliance and Wang Sheng personally.

Wang Sheng handled the situation calmly, exchanging ideas with guests and colleagues, further consolidating this ever-expanding network of relationships.

……

The following day, November 29th.

A media storm triggered by the "30 Days" tour suddenly erupted in several tour cities, in addition to Beijing, Tianjin, and Hong Kong, as well as in the metropolitan newspapers of many film studios that have joined the Beijing Film Studio alliance.

The entertainment section of the Yangcheng Evening News headline reads: "The '30 Days' tour in Guangzhou receives high praise; audiences ask: Why is it so difficult for good films to enter Guangdong?"

The Qianjiang Evening News prominently featured an article: "Hangzhou audiences applauded '30 Days,' but regretted only being able to 'premiere' and not have a 'public screening'?"

The Yangtze Evening Post's commentary section: "Looking at the barriers to film distribution through '30 Days': Audiences want to see it, but theaters have difficulty scheduling it—whose fault is it?"

The Xinmin Evening News posed a more pointed question with the headline: "30 Days is receiving rave reviews in Shanghai, but its nationwide release on December 5th is limited to Beijing? When will these regional barriers be broken?"

These reports were strikingly consistent, all detailing the phenomenal success of "30 Days" at its local premiere and the overwhelming positive reviews from audiences. Then, they abruptly shifted their focus to the "cruel reality" that the film would only be officially released in Beijing on December 5th.

The article quotes audience members and some "industry insiders" to question the rigidity of the current film distribution system, pointing the finger at provincial film companies at all levels that hold the distribution rights of films in their respective provinces (cities). It argues that their conservatism and barriers have led to the strange phenomenon that "audiences want to see but can't, and good films are difficult to circulate."

This wave of public opinion did not come out of nowhere; it was clearly guided by the precise public opinion guidance of the Beijing Film Studio Alliance.

The "genuine audience feedback" collected during the tour and the carefully edited interview footage became the most powerful weapons at this moment.

……

On the same afternoon that public opinion began to ferment.

Beijing Film Studio conference room.

A seemingly low-key meeting, but one that could potentially impact the landscape of film distribution, is being held here.

In addition to Han Sanping, director of Beijing Film Studio, Wang Sheng, general manager of Shengying Media, and Zhang Heping, representative of Forbidden City Film Industry, the attendees were also drawn to several "uninvited guests" from Jiangsu Province: the general managers of Suzhou Film Company, Jinling Film Company, Liangxi Film Company, and Pengcheng Film Company, as well as the heads of film companies from Longcheng, Jinghai, and Guangling.

These "seven rebel kings" gathered in the capital with only one purpose.

Bypassing Jiangsu Film Company, they obtained copies of "30 Days" directly from Beijing Film Studio and Forbidden City Film Studio, and released them simultaneously in their cities and Beijing!

At this point in time, this was undoubtedly an extremely bold move.

However, it's not without conditions.

In 1993, the Ministry of Radio, Film and Television issued the "Opinions on Several Issues Concerning the Current Deepening of the Reform of the Film Industry Mechanism", namely Document No. (93)3.

This broke the planned economy model of China Film Corporation's centralized purchase and distribution, allowing each film studio to directly distribute films to provincial film companies.

However, provincial companies still maintain strong control over the distribution network within their respective provinces.

However, the policy also leaves some room for ambiguity. For example, it does not completely prohibit direct contact between film studios and municipal companies, especially when provincial companies are inactive or unable to reach an agreement, in which case flexibility is sometimes possible.

This provides a theoretical possibility for the "skipping levels" behavior of municipal-level companies.

In addition, the economic foundation was also the basis for these anti-Wang traitors to dare to go to the capital to discuss their great cause.

The southern Jiangsu region has a developed economy, good cinema facilities, strong audience spending power, and is deeply influenced by the culture of Shanghai, Hong Kong and Taiwan, resulting in a strong demand for films like "30 Days".

Seeing the huge buzz and potential box office revenue generated by the tour, these city-level companies were unwilling to sit idly by and watch their profits slip away, and even less willing to be controlled by provincial companies that might be slow to respond or unable to reach an agreement on profit distribution.

The enormous economic benefits drove them to take the risk. In addition, the establishment of the Beijing Film Studio Alliance and the success of its television film business demonstrated the possibility of bypassing traditional channels and the possibility of a future abundance of film sources. For all these reasons, these municipal companies gained confidence and found role models.

The energy and courage displayed by Wang Sheng and Han Sanping made them feel that it was worth the fight.

The meeting was chaired by Han Sanping.

His expression was serious as he glanced at the seven CEOs of municipal companies present and said in a deep voice, "Distinguished leaders, we understand your intentions for coming from afar."

The audience response to the film "30 Days" is something you've all seen firsthand, and the media has already reported on it. Your desire for a simultaneous release to support reform and revitalize the market is commendable.

He then changed the subject and put forward three conditions for Beijing Film Studio and Forbidden City Film Company:
"First, we can give you the copies, but at least during the first month of release, which is the most crucial month for box office revenue, there must be no pirated copies leaving your theaters! This is the foundation for your fight against the provincial film company. We hope you leaders will consider this carefully."

"Secondly, we will implement a revenue-sharing system, not a traditional buyout. We, the production company, will take 40% of the box office revenue!"

After imported films such as "Rumble in the Bronx" introduced the revenue-sharing system in 1995, this model was gradually accepted, but the proportion is often the focus of negotiation.

At this time, the revenue share of domestic film producers usually fluctuates between 30% and 38%.

Han Sanping asked for 40%, which was a relatively high price. He intended to test the other party's sincerity and leave room for further negotiations.

Considering the anticipated popularity of "30 Days" and the urgency of city-level companies to "take a detour," this asking price, though high, is not entirely impossible.

"Third, timely payment is crucial! Settlement will begin one month after the film's release and must be completed within one month. There must be no delays."

After Han Sanping finished speaking, the conference room fell silent.

These three points are all very sharp, especially the high percentage of revenue sharing and the stringent requirements for payment collection.

The head of the Suzhou Film Company broke the silence first. He smiled, but his tone was resolute: "Director Han, Chairman Zhang, General Manager Wang, since we're here, we're here with a do-or-die attitude."

We'll go back and pledge to fight piracy; if any cinema has a problem, the manager will be fired!

The revenue split is 40/60... Although the pressure is high, the film is good, so we've accepted it! Regarding payment collection, the seven of us can mutually guarantee to ensure timely payment!

The other CEOs also expressed their views, basically accepting these three "treaties of surrender".

They knew that as long as they could get a copy of "30 Days," they could make a fortune, given the film's current popularity and quality, even if they had to give up more profits. More importantly, this was the first step in breaking the provincial company's monopoly, which was of profound significance.

However, their move will inevitably provoke strong intervention from Jiangsu Film Company.

Under the current system following the reform of "unified purchase and sales," provincial film companies still maintain a strong business guidance relationship with municipal companies within the province, and even retain influence over some personnel and management matters.

They can apply to higher authorities and use administrative orders to require municipal companies not to accept projects without authorization.

In addition, provincial-level companies hold the exclusive distribution rights for most films within their respective provinces.

If we offend the provincial company, the supply of other films in the future may be cut off.

Furthermore, provincial-level companies often share profits with municipal-level companies on many projects.

For example, the current Jiangsu Film Company has been invested in by various anti-government figures, but they are unhappy that it still has this "father" above them.

However, having chosen to "rebel," these municipal companies must have made some preparations.

The alliance of seven parties can provide them with leverage in negotiations and resilience under pressure.

Currently, it seems that the righteous cause has been established, and by leveraging the public pressure that has been generated, it has portrayed its actions as righteous acts that "conform to public opinion" and "break the monopoly."

The Beijing Film Studio Alliance will withstand the pressure from above.

As for future film sources, there are plenty of ways to find them.

The meeting is still ongoing, and some other details have been discussed.

For example, they would tally the box office figures from various regions every day, compile them, and publish the results in newspapers to demonstrate that domestic films have great potential by adopting a market-oriented revenue-sharing system, and so on.

(End of this chapter)