Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 254, Section 252: Influence

September 10th, Friday, an ordinary yet extraordinary day.

The culture and entertainment sections of several media outlets, including *China Film News* and *Beijing Daily*, all published a striking news item:

"Produced by Beijing Film Studio, Forbidden City Film Industry, and Shengying Media, and supervised by Wang Sheng, the youth inspirational film 'Flying Colors,' starring Fan Xiaopang, has completed its first run (usually referring to the first run in major box office cities, in key cinemas) of approximately four weeks since its release in early August. According to incomplete statistics, its first-month box office revenue was approximately 61.65 million RMB. This film has become the highest-grossing domestic commercial film of the year so far, excluding imported films..."

"6165 million!"

This number is like a pebble thrown into a calm lake, creating ripples both inside and outside the circle.

For the average viewer, this might just be a topic of conversation over tea, confirming the popularity of "Flying Colors".

But for those in the industry, the amount of information behind this number is much richer.

With 6165 million in its first month, "Flying Colors" demonstrates a strong market appeal and audience base, even with rampant piracy and its initial screenings mainly concentrated in limited areas.

This is not only a victory for Fan Xiaopang's personal star power, but also another powerful demonstration of Wang Sheng and the capabilities of Shengying Media and the Beijing Film Group of China Film Group in the entire chain of project planning, production and distribution.

More importantly, the end of the first round of screenings does not mean the end of the life cycle of "Flying Colors".

In the film market environment of 1999, the profit model of a hit film was diverse and progressive.

The initial screenings will primarily take place in mainstream cinemas in core cities, using a revenue-sharing model where the production company, distributor, and cinemas split the revenue according to an agreed-upon ratio.

However, the format changed significantly during the second round of screenings.

Second-run screenings typically take place in a wider range of cinemas in second- and third-tier cities, county-level cities, and some rural towns.

Many cinemas in these regions lack the ability and willingness to engage in complex revenue-sharing negotiations with distributors, or their box office revenue is relatively small, making the revenue-sharing model too costly.

Therefore, the main source of revenue for second-run screenings largely depends on "selling copies".

The specific process is as the user analyzed: China Film Group, as the distributor (specifically operated by the department under Han Sanping), will sell the produced film copies to various provincial film distribution and screening companies at a certain price.

These provincial companies, as key hubs connecting central distribution and local screening, possess the channel advantage of covering cinema networks at all levels within their respective provinces.

They purchase (or sometimes act as agents for) film copies from China Film Group, and then resell or lease these copies to cinemas at various levels within their jurisdiction for screening.

After the cinema pays for the film prints, most of the subsequent box office revenue goes to the cinema itself, or is split again with the provincial company.

For producers and distributors, their direct revenue at this stage mainly comes from the initial payment made when they sell copies to provincial companies.

With its opening month box office of 6165 million yuan and continued social buzz, "Flying Colors" is poised to become an absolute "hard currency" in the second-run market.

Provincial-level film companies would compete to buy copies from China Film Group because they were confident that the cinemas below would be willing to pay for this hit film.

It's like a clear arithmetic problem: the cost of a single film print is relatively fixed, but the number of screenings and potential revenue (including attracting crowds and driving other consumption) that "Flying Colors" can generate are considerable. It is estimated that by selling prints to twenty or thirty provincial-level units across the country, China Film Group will be able to bring a very substantial, almost pure profit, post-production revenue to the "Flying Colors" project.

This money, along with the initial box office revenue, future television broadcasting rights, and audiovisual product copyrights, will together form the complete revenue map of "Flying Colors," further solidifying its status as "one of the benchmarks of domestic commercial films in 1999."

……

Almost simultaneously with the news that "Flying Colors" grossed 6165 million yuan in its first month, another rumor was also spreading rapidly in teahouses, film crew rest areas, and company offices in Beijing, even faster than the official news:
"Have you heard? Feng Xiaogang's 'Party A, Party B' production team quit filming just a few days after it started!"

"Really? Why?"

"They say it's because of the hot weather and poor treatment that the workers are upset. But I think it's not that simple..."

"Where did this happen? Over in Huairou? Oh dear, that area... a lot of film crews use people affiliated with 'Shengying Labor Service'."

"Tsk tsk, Commander Wang Shuo just got back, and this is quite a blow to his head..."

"Feng Kuzi is also unlucky. He has been holding back for three years and wants to come out of retirement, but he is stuck in this most inconspicuous place."

"Unremarkable? I think this place is the most dangerous! This shows that there are some people and some forces that you can't easily shake by bringing in investment or inviting back your idol."

"This is really going to be interesting. It's like a 'king versus king' match. They haven't even met in the Lunar New Year film season yet, and they've already lost a round off the field."

As the news spread, it was constantly embellished, and the details may have differed, but the core event—the production team of "Party A and Party B" halting work due to labor issues, and the fact that this matter vaguely pointed to a system related to Wang Sheng—quickly became the focus of heated discussion within the industry.

By juxtaposing the phenomenal success of "Flying Colors" (6165 million yuan) with the embarrassing setback of "The Dream Factory" (film) which faced obstacles from the very beginning of filming, an invisible narrative is constructed:

Wang Sheng, the "mastermind" who rose to prominence by relying on the resources of state-owned factories and built a huge industrial chain, has a foundation and influence that are far deeper than people imagine.

He can not only prove himself in the market with box office success, but also subtly set up barriers and flex his muscles in the industry ecosystem he has built.

Wang Shuo, a former cultural icon and "commander" of the Beijing film circle, made a high-profile return with his old team and new capital, intending to recover lost ground during the Lunar New Year season, but he couldn't even maintain the most basic filming order.

This seems to indicate that the old model he represents, which relies on personal charisma, social connections, and a specific cultural temperament, is somewhat powerless when facing a systematic, industrialized, and even somewhat monopolistic "regular army" like Wang Sheng's.

This is an invisible war, and the outcome does not depend on public challenges, but rather on the capillaries of the industry and the details of whether each production crew can operate smoothly.

"King vs. King"?
At least for now, Wang Shuo's side has lost a city, and the defeat is quite embarrassing.

"The Grand Master is indeed powerful."

Many people couldn't help but sigh like this when discussing it in private.

This strength is not only about creative and commercial success, but also about a deep understanding and mastery of the industry's underlying rules.

(End of this chapter)