Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 232, Section 230: Turmoil

In July, the heat in Beijing was intense.

But the undercurrents within the film industry are even more scorching than this summer heat.

The first case of box office fraud in the country has been continuously reported and investigated by more than ten influential southern media outlets, including Yangcheng Daily, Southern Weekly, and Xinmin Evening News. It has evolved from an industry scandal into a crisis of trust sweeping the national film distribution and exhibition system.

As more details are revealed, the defendant in this case—Jiangsu Yangtze River Film Co., Ltd.—has been thrust into the spotlight.

The origins of Jiangsu Yangtze River Film Industry are quite complicated.

It was created in the early 1990s against the backdrop of the "Jiangsu Province Breakthrough" (i.e., after the Ministry of Radio, Film and Television's Document No. 3 in 1993, film studios could directly supply films to municipal distribution and screening units). It was a product of strong intervention by local film management departments and the joint efforts of provincial and municipal film companies. Its original intention was to cope with the new market situation, reduce distribution links, form economies of scale, and create a one-stop production, distribution, and screening system.

In November 1996, Chinese film companies, seeking to strengthen their control over local areas, even invested 800,000 yuan to acquire a 13.79% stake, intending to form a strategic partnership.

However, this "joint venture" model, which is forcibly formed by administrative power, may seem to integrate resources, but it does not address the fundamental property rights and operating mechanisms.

The provincial and municipal companies remain independent entities with differing interests, operating in name only, lacking true cooperation, and suffering from severe internal friction, thus lacking the vitality and efficiency to respond to the market.

The so-called "one-stop" system often turns into a complete mess in practice.

Previously, the fact that the so-called "seven rebel kings" in Jiangsu Province were able to bypass the provincial system and directly cooperate with the Beijing Film Studio to distribute films such as "30 Days" and "The Pursuit of Happyness," and jointly create a "nine-region market" with Beijing and Tianjin, was clear evidence of this internal disunity and independent operation.

The victim disclosed in this box office underreporting case—Yangcheng International Overseas Chinese Investment Company and its film "Next Life, Still Mother and Son"—was of decent quality. However, due to the chaotic distribution and fragmented screening system of Changjiang Film Industry, the box office revenue was intercepted and underreported at each level, ultimately causing the production company to lose all its money and file a lawsuit in anger.

The silhouettes of various rebel kings are faintly visible.

This lawsuit acted as a fuse, igniting long-suppressed industry conflicts and providing Han Sanping, who was determined to promote the "market rescue plan," with an excellent opportunity.

In a small conference room at the State Administration of Radio, Film and Television, Han Sanping faced several heads of relevant departments of the State Administration of Radio, Film and Television and the Film Industry Association. His expression was serious, and his tone was somber yet firm and unquestionable.

"The case of Changjiang Film Industry is by no means an isolated case!" Han Sanping gently placed a report on the table: "It exposes the long-standing cancer in our entire film distribution and exhibition system—chaotic channels, lack of supervision, and a complete lack of integrity!"
The producers' hard-earned money is being skimmed off at every level, ultimately dampening the entire industry's enthusiasm for content production! What time is it now?
It's a critical moment of life and death, with imported films in short supply and market confidence already fragile!
If we can't even uphold the most basic principles of market fairness and integrity, what are we talking about in terms of saving the market? What will we use to revitalize the domestic film industry?

He looked around at everyone present and continued to explain his strategy: "I believe we must take this opportunity to take a two-pronged approach and crack down hard!"

"First, we should immediately urge distributors to sign 'industry integrity agreements' with major cinemas."

Han Sanping stated clearly: "The agreement must clearly define the reporting standards, time limits, and auditing authority for box office data, establish a blacklist system, and impose severe sanctions on cinemas that conceal, omit, or delay reporting box office data, ranging from economic penalties to suspension of film supply and even cancellation of cooperation qualifications."

At the same time, I suggest that China Film Group take the lead, in conjunction with major film production companies, to dispatch box office monitors to key cinemas and regions to conduct on-site supervision and verification to ensure the accuracy and reliability of the data. This is not a matter of distrust, but a necessary process in building trust!

"Secondly," he said, slowing his pace slightly but remaining firm in his tone, "I strongly suggest encouraging, and even guiding, cinemas across the country to offer discounts on movie tickets in stages."

These words caused a slight commotion in the conference room.

After all, movie tickets were still considered a relatively "high-end" expense at that time.

Han Sanping was well-prepared. He analyzed, "I understand everyone's concerns. But please face reality: the biggest crisis in the current film market is the loss of audience! The inability of Hollywood blockbusters to enter is certainly a challenge, but it's also an opportunity—a window of opportunity to cultivate the habit of watching domestic films. Many viewers don't not want to watch movies, but they feel that movie tickets are too expensive and they can't afford them. If we can lower ticket prices, even temporarily, such as by introducing 'midday special screenings,' 'student and senior citizen discount days,' or simply offering general discounts, making watching a movie as common as eating a fast food meal, we can greatly lower the barrier to entry and attract that potential, large audience back to the cinema. Only when popularity gathers can the market revitalize!"

He concluded by saying, "Please rest assured about the film supply issue. The 'market rescue plan' is being pushed forward with full force, and new films from Shengying Media and Alliance Studios are being produced at an accelerated pace."

"As long as cinemas can bring audiences back, I, Han Sanping, on behalf of China Film Group, guarantee an ample supply of high-quality domestic films. We will never allow cinemas to operate without a screening! Now is not the time to worry about profit per ticket, but to expand the entire market! Regulating order and attracting audiences—these two approaches are the right way to overcome difficulties and solidify our foundation."

Han Sanping's argument not only condemns the deep-seated problems and malpractices, but also offers practical solutions.

Establishing integrity agreements and an inspector system is an attempt to plug loopholes in the system and rebuild industry credibility, which is undoubtedly the right and necessary direction.

The suggestion to offer ticket discounts during special periods, though seemingly radical, precisely addressed the core pain point of "audience loss" in the market at the time, demonstrating strong practical relevance and feasibility.

Using price levers to stimulate consumption is a basic principle in economics. Applying it to the sluggish film market at this time can be a powerful remedy, but it is also a potentially effective way to revitalize the market.

His measures were not based on mere imagination, but on a profound understanding of market realities. They addressed both the symptoms and the root causes, and were particularly reasonable and urgent in the context of the time.

After a heated discussion in the meeting room, most of the attendees ultimately agreed with Han Sanping's judgment and proposal.

However, the specifics of how to proceed still need to be discussed.

……

Amidst all the commotion, July 20th quietly arrived.

In Beijing, on the playground of a middle school, the sun shines brightly and the shadows of the trees sway gently.

The opening ceremony for "A Little Thing Called First Love" was held here.

Unlike the low-key and reserved start of filming for "Flying Colors," perhaps influenced by external controversies, or perhaps because Han Sanping intended to showcase the positive and united side of Chinese films, this time the opening ceremony was quite formal, inviting many mainstream media outlets.

Wang Sheng, still dressed in simple director's attire, stood in the middle of the main creative team.

Beside her were Gao Yuanyuan, Fan Xiaopang, Huang Xiaoming, Chen Kun, and others, all dressed in crisp school uniforms and radiating youthful energy.

Reporters' cameras flashed incessantly, focusing not only on the film itself and the handsome man and beautiful woman pairing, but also on their opinions regarding the recent box office underreporting case and Han Sam-pyeong's market rescue measures.

Facing the microphone, Wang Sheng appeared calm: "First Love tells a story about beauty and growth. We hope to bring warmth and smiles to the audience through this film. As for matters within the industry, we believe that China Film Group and relevant departments will handle them properly."

As producers, we call for the creation of a fair, transparent, and healthy market environment. This is crucial to the interests of every practitioner and the future of Chinese cinema. We are confident in this…”

……

(End of this chapter)