Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 183, Section 181: A Strategy to Break the Stalemate
The next day.

Friday, April 3, 1998.

In the early morning in Beijing, a thin mist, like a veil, enveloped the city, which was not yet fully awake.

Wang Sheng gently closed the door to Li Xiaoran's apartment and walked out of the building. The cool breeze of early spring hit him, instantly invigorating him.

……

Arrived at Beijing Film Studio.

8:30 a.m., Beijing Film Studio conference room.

The curtains were drawn, blocking out outside light and prying eyes.

The room was filled with smoke, and the air was so thick it felt like you could wring water out of it.

Around the oval conference table, only six or seven people were sparsely seated. Apart from the factory director Han Sanping and Wang Sheng, the rest were the core management personnel of Beijing Film Studio. Each of them was a person who had experienced many ups and downs and had a deep foundation in Beijing Film Studio.

Han Sanping sat in the main seat, his face solemn. The cigarette between his fingers was half-burned, and a long ash had accumulated, showing his inner turmoil.

"Everyone's here. This is a closed-door meeting. The content will not leave this room." Han Sanping's voice was deep and powerful, carrying an unquestionable seriousness. He stubbed out his cigarette and got straight to the point: "I called everyone here today for only one thing: the progress of the 'Beijing Film Group' has encountered a major obstacle."

He paused, seemingly organizing his thoughts, or perhaps giving everyone time to prepare mentally.

“After the last internal seminar, I gave a detailed report on our ideas to the leaders of the State Administration of Radio and Television. At the leadership level... opinions were not unified.”

Han Sanping spoke slowly, each word like a stone striking the table: "There are supporters who believe that our thinking is clear, we have achievements to back us up, we dare to explore, and we are in line with the spirit of reform, so we should be encouraged. However, the voices of opposition... are louder and more specific."

He picked up a photocopy of an internal communication from the table, shook it, but didn't read it aloud. Instead, he stated the core content directly: "The opponents, or rather, another group of capable and insightful comrades, have proposed a completely different integration plan. This plan is not centered on our Beijing Film Studio, but on—the China Film Corporation!"

"what?"

"China Film Group? What are they planning to do?"

A suppressed gasp and murmur immediately filled the conference room.

Han Sanping raised his hand and pressed it down forcefully to signal for silence. He continued, his tone tinged with coldness: "Their plan is to use the China Film Corporation as the leading entity, and integrate our Beijing Film Studio, China Children's Film Studio, China Film Co-production Corporation, China Film Equipment Corporation, CCTV-6 (China Central Television Satellite Channel), Beijing Film Processing and Recording Technology Factory, Huayun Film & Television Optical Disc Co., Ltd... to form a so-called 'Zhongying Group'!"

"Zhongying Group?" A deputy factory director in charge of production slammed his fist on the table, his face flushed. "What does this name mean? Are they trying to swallow up our Beijing Film Studio? Are they even going to take away our factory name? How dare they! How dare Zhongying!"

"Exactly! During the era of unified purchase and distribution, they sat on the distribution end, holding us by the throat, and they took the lion's share of the profits! Now that we've finally carved out a path for ourselves and have some savings, they want to steal our fruits again?"

Another veteran member of the committee was so angry that his beard was trembling. "Why should we be integrated by them? If they want to integrate, they should integrate those struggling factories like the Children's Film Studio and the Youth Film Studio! They want to mess with our Beijing Film Studio? No way!"

"I can't accept it! Absolutely not!"

"This is going to expose us back to our true form!"

The crowd was indignant, and the meeting room was filled with an atmosphere of anger and resentment.

The Beijing Film Studio, through its own efforts over the past two years, has built up its empire, accumulated wealth and prestige, giving it unprecedented confidence and a voice. However, it now faces the possibility of being "swallowed up." This sense of disparity and humiliation is hard for these elderly people who have dedicated most of their lives to the Beijing Film Studio to accept.

Wang Sheng sat quietly in his seat.

He was familiar with the "Zhongying Group" plan that Han Sanping mentioned.

In the original timeline, this was one of the solutions that was ultimately implemented amidst the wave of industry reform and conglomeration, or rather, a manifestation of some kind of historical inertia.

It seems natural that China Film Group, with its long-standing control of the national distribution network and its administrative rank, would have an advantage in resource integration.

But he knew even better that the course of history had already been altered by his arrival. The Beijing Film Studio was no longer a struggling entity that needed to rely on others and wait for relief; it now possessed a strong capacity for self-sufficiency, a market-oriented team, and a proven and viable operating model.

More importantly, it has mastered a channel that bypasses the traditional distribution system and directly connects to the market—although it is not yet perfect, it is already taking shape.

After Han Sanping and the others calmed down a bit, they spoke again, their voices even heavier, posing the most crucial question: "Comrades, calm down. Names and face are important, but substance is far more important!"

His sharp gaze swept across the room: "One of the core objectives of this integration plan, or rather, its most fatal point, is that Chinese film companies should take this opportunity to legitimately reclaim the domestic film distribution rights that film studios had previously delegated or that we had won through market forces to local governments!"

The meeting room fell silent the moment these words were spoken.

Everyone understands the weight of those words.

Distribution rights!
This is precisely the core right that Wang Sheng and the Beijing Film Studio alliance have been fighting for over the past two years and relied on to break the deadlock!
From the distribution of TV movies through alliance channels to the successful trial of "30 Days" in nine regions, the success relied on bypassing the barriers of provincial companies to a certain extent, and achieving a more direct connection between the production company and TV stations or local cinemas.

Although the process was difficult and fraught with obstacles, a crack has been pried open in this door.

If China Film Group takes away this right under the guise of "group integration and unified distribution," then the fragile national distribution network that the Beijing Film Studio alliance has just established will collapse in an instant!

They will be locked back in that cage of captivity, and the fate of their painstakingly created works will once again be in the hands of others.

"This...this is a fatal blow!" the finance director murmured, his face pale.

He knew all too well what losing control over distribution meant: profits would be siphoned off at every level, cash flow would become uncontrollable again, and the virtuous cycle that Beijing Film Studio had just achieved might be interrupted.

"Absolutely not!" "This is worse than losing the factory's name!"

"Director Han, we must hold on!"

Looking at the crowd who were getting excited again, Han Sanping slowly said, "Support? How? This is a plan being discussed at the higher-ups, involving a restructuring of film resources nationwide. Is our Beijing Film Studio's opposition enough? Are our reasons sufficient?"

He looked at Wang Sheng, who had been silent all along: "Wang Sheng, this matter concerns the lifeline of our Beijing Film Studio, as well as the future of Shengying Media and the alliance that you built with your own hands."

You've always been quick-witted, resourceful, and sensitive to policy shifts and market changes. Tell me, how do we solve this problem? How can we retain our distribution rights, and even… realize our vision for the 'Beijing Film Group'?”

In an instant, everyone's eyes were focused on Wang Sheng.

This young "God of Wealth" and "King of Box Office" has already proven his vision and ability with countless successes.

At this critical moment concerning life and death, his opinion may play a decisive role.

Wang Sheng stopped pondering as he met the expectant, anxious, and inquisitive gazes of the crowd.

He leaned forward slightly, placed his hands on the table, and pondered for a moment, as if organizing his thoughts or carefully considering his words.

Then, he raised his head, his gaze clear and firm, and spoke in a calm tone, revealing his long-considered solution to the predicament:

"Director Han, leaders, the other side's plan seems powerful. Relying on China Film Group's traditional position and distribution network, it attempts to use administrative power to complete the integration and re-establish an absolute monopoly on the distribution end. However, there are several key weaknesses, or rather, areas that are not entirely in line with the current trend, which we can use as a breakthrough point."

He analyzed the situation clearly and logically:
"First, the policy orientation of 'focusing on the large and letting go of the small' and 'stimulating vitality.' The core idea of ​​current state-owned enterprise reform is to 'focus on the large and let go of the small,' but more importantly, it is to 'stimulate the vitality of micro-entities.' Beijing Film Studio, through market-oriented reforms, has turned losses into profits, cultivated its workforce, and expanded its market, making it a typical example of 'vitality.'"

If we forcibly apply the old administrative integration model, re-incorporating a vibrant market entity like ours into a potentially rigid and massive system, would that align with the reform spirit of 'stimulating vitality'? We can raise this issue with higher-level leaders, seeking their approval and support from those who advocate reform and value practical results.

"Second, the monopoly on the distribution end deviates from market principles. The success of '30 Days' has proven the vitality of the revenue-sharing system and a more flexible distribution model. If we go back to the old ways and strengthen the monopoly on the distribution end again, will it stifle the nascent market competition and the enthusiasm of production companies?"
This is not just a problem for the Beijing Film Studio alone; it concerns the healthy development of the entire Chinese film industry. We can discuss this issue from the perspective of building an industrial ecosystem.

"Third, our bargaining chips—market networks and cash flow."

Wang Sheng's tone carried a hint of confidence: "The other party has administrative status and a traditional network, but we have a real market share and healthy cash flow."

Our Beijing Film Studio alliance's influence across nine regions, along with the connections we've built with hundreds of television stations through our television film business, constitutes a distribution channel that cannot be ignored.

More importantly, we have money! We can clearly state that if we are to lead the establishment of the Beijing Film Group, we are willing to provide substantial financial assistance to units facing difficulties during the integration process, helping them resolve historical burdens, resettle personnel, and achieve transformation and upgrading. This is something that China Film Group may not be able to easily promise, or that would require layers of approval to do. "Whoever reforms benefits; whoever develops leads"—we should emphasize this principle.

"Then, specifically regarding the distribution rights..." a deputy factory director asked eagerly.

Wang Sheng offered his core suggestion: "Regarding the issuance rights, we can't stubbornly refuse to hand them over, as that would make us seem like we lack a sense of the big picture. We can propose a 'transitional solution' or a 'pilot program'."

“We can suggest to the State Administration of Radio, Film and Television that a ‘pilot segment for integrated production and distribution’ be set up within the soon-to-be-established group, whether it is Zhongying Group or Beijing Film Group.”

This sector can be based on Beijing Film Studio, Shengying Media, and the core production forces within the alliance, granting them the right to independently operate the distribution business of their self-produced films within a certain scope and for a certain period, such as five years.

The scope of this right can be defined as the 'nine markets' we have already successfully developed, as well as new markets that the alliance will expand into in the future.

He further elaborated on its feasibility: "Doing so would firstly demonstrate our support for the group's reform and our willingness to incorporate the issuance business into a unified management framework; secondly, it would preserve our core competitiveness and reform achievements, avoiding the shock risk that a 'one-size-fits-all' approach might bring; and thirdly, it could serve as a 'testing ground' for internal mechanism innovation within the group."

If successful, the experience can be applied across the entire group; if it fails, the impact is manageable. This is far more prudent than forcibly taking away the issuance rights, causing our existing business to shrink, profits to decline, and ultimately dragging down the entire group.

Wang Sheng concluded: "Therefore, our strategy should be to hold high the banner of supporting reform and advocating integration, but at the same time emphasize the value and sustainability of the Beijing Film Studio's marketization achievements, under the guise of 'pilot projects' and 'transitions'."

We will strive to retain core distribution rights and leverage our strong cash flow and market capabilities as bargaining chips to secure a more advantageous and proactive position in the future group structure, and even... promote a 'Beijing Film Group' plan centered on us.

The meeting room fell silent as everyone digested Wang Sheng's analysis, which was both insightful and practically actionable.

"Pilot program... transition... integrated production and distribution sector..."

A glint flashed in Han Sanping's eyes. He slowly lit a new cigarette, took a deep drag, and through the swirling smoke, nodded slightly, saying, "That's a solution..."

"Everyone."

Han Sanping raised his voice and said, "Mobilize your network of connections and make more contact with the leaders and employees of the units I mentioned earlier. Explain to them clearly that our Beijing Film Studio has money and connections, and can immediately solve the funding problem. We can also keep their jobs. If we can't work together, after being integrated by China Film Group, our Beijing Film Studio will lose its ownership and autonomy and may be reduced to an art creation center, while each of them will only be worse off."

In short, we need to show the higher-ups that if our Beijing Film Studio takes the lead in the integration, we can not only preserve existing achievements but also drive the development of more sister units!

"Yes!"

"understand!"

……

After the closed-door meeting, Han Sanping called Wang Sheng to his office for another short meeting.

Han Sanping stated that the people behind China Film Group control the overall situation and reputation, and Beijing Film Studio is unlikely to escape this calamity.

Wang Sheng replied that even if the film distribution rights were lost, there were still wedding videos and TV movies to cover it up. There were tens of thousands of people making a living in these two business lines, and it was difficult for the higher-ups to make any moves. They could hold on for a few years and wait for a bigger change. It wasn't impossible to save the Beijing Film Studio, but this would affect your career advancement.

The talks ended in silence.

(End of this chapter)