America: Starting with the acquisition of MGM...

Chapter 74. Thoughts on Advancing to the Other Side (Please subscribe, please subscribe to the first issue, please donate)

"Stephen Chow!" Eric exclaimed in surprise.

"Uh, his name is Stephen Zhou. Yes, it seems his partner also called him by his Chinese name, which sounds similar to yours. Wait, Eric, you've studied Chinese?"

"I studied during the holidays, so don't worry about the details. It's Stephen Week, right?"

"Yes, I won't get the English name wrong. He's promoting his script called 'Kung Fu' and hoping to get investment. We just met this afternoon."

"Although there are many slang terms in this script that I don't understand, the marketing department's opinion is that it has potential, and Stephen Chow is a very famous comedian in China, known as the 'Oriental Jim Carrey'."

"I've already asked. His last movie, 'Shaolin Soccer,' had investment from Columbia Pictures, which earned Sony tens of millions of dollars."

"Understood. How much investment does Stephen Chow want?"

"3000 million US dollars is a large amount, so I need to ask for your opinion. If you feel it's not appropriate, I will reject him by phone."

Eric hesitated for a moment: "Keep him hanging. I'm almost done filming here, and I need to go back to Los Angeles."

"OK, I understand!"

After hanging up the phone, Eric couldn't help but sigh, "It's all thanks to you, Judy. You're such a lucky charm."

The movie "Kung Fu Hustle" is generally considered to be Stephen Chow's masterpiece, although some consider it to be "A Chinese Odyssey," and others believe that most of his works are masterpieces.

But for Eric himself, "Kung Fu Hustle" is the culmination of Stephen Chow's style in terms of narrative, performance, connotation, and comedic effect. Especially from the director's perspective, it is undoubtedly the best in terms of quality.

If I remember correctly, this movie was invested in by Sony Columbia, with an investment of about $20 million. It eventually grossed over $100 million worldwide, and many domestic media outlets rushed to report on it at the time, so much so that Eric still remembers it.

Of course, if you only look at the box office, after deducting the share given to theaters, the distribution and marketing costs, and Stephen Chow's director's share, Columbia Pictures will only earn around 20 million US dollars in the end.

However, if the DVD market is included, this number would be several times higher.

It's not that Stephen Chow has a strong appeal in the North American DVD market, but rather that while "Kung Fu Hustle" was a strong film, it was only that one. His other films didn't perform as well, and the DVD market didn't buy into them.

Of all the Chinese movie stars who have truly achieved global success, only Jackie Chan and Jet Li are still alive today. Although Chow Yun-fat also ventured into Hollywood, he failed miserably.

He lacks distinctive features and irreplaceable qualities. Are there few actors in Hollywood who can pull off a cool and charismatic performance like Chow Yun-fat? Why would a white actor choose an Asian?

Kung Fu was the key that allowed Chinese people to open up the world market. Bruce Lee opened this door, and Jackie Chan and Jet Li carried it forward. Unfortunately, there is no successor.

Before transmigrating, I was in the entertainment industry, and everyone was curious about who was more successful in Hollywood, Jackie Chan or Jet Li.

So Eric and a group of friends conducted a survey and analyzed various data.

The final conclusion is that Jackie Chan is far ahead of the competition. His movies may not have high box office returns, but the DVD market is booming.

Starting with "Drunken Master II" in 1994, Jackie Chan's total revenue from the DVD market has exceeded $12 billion, and that's a very conservative estimate.

Due to health reasons, Jet Li made fewer films in his later years, but even so, his DVD sales exceeded $7 million.

This explains why, despite their often low box office returns, Jackie Chan and Lee Seung-hyun's films never lack investment, as they almost always guarantee a profit.

However, this excludes Jackie Chan's later films. By then, he was indeed older and had to take elevators instead of climbing stairs, so he almost always financed his own films.

The next day, after filming the last scene of Transformers at the Nevada military base, John Adams gave his crew an hour's leave.

The entire base went into a frenzy. All the soldiers went back to their dormitories to find their phones and then gathered around the vertigo for a group photo.

The props team watched the group of American soldiers with concern, worried that they might use too much force and damage or make it dizzy, since it would have a role to play later.

Eric, holding a megaphone, shouted, "Thank you all for your cooperation during this time. The movie is scheduled for release in November. If you want to see yourself on the big screen, bring your families to the cinema!"

After giving the soldiers time to take a group photo, Eric chatted with Colonel Adams to deepen their relationship, and before leaving, he slipped him another $50.

I've been getting along better and better with Lieutenant Colonel Freeman these past few days. Although he's in the military, he has a rather artistic soul.

However, due to his position, he certainly couldn't appear in the movie; he could only do the work of a military advisor to satisfy his craving.

From his words, we learned that the reason John Adams was promoted to brigadier general before the age of 40 was because he had very strong connections; he was a member of the Adams family.

That's right, it's the Adams family that drafted the Declaration of Independence, one of the traditional powerful families in the United States, with influence extending to the military, political and business spheres.

To put it bluntly, the world is the same everywhere. The entertainment industry is all about connections and background, and so is the military.

Lieutenant Colonel Freeman stated that the probability of a U.S. Army colonel being promoted to brigadier general is only about 3%. Unless one possesses extraordinary abilities that are unstoppable, it is not up to ordinary people; the colonel is the highest rank one can attain.

Since the founding of the nation, the game of power has always been in the hands of these powerful families; the only difference is that it belongs to you today and to me tomorrow.

After learning about this relationship, Eric couldn't help but blush.

The $20 he received that night was probably a bit of a slap in the face, but he didn't take it as an insult, so he gave them another $50 before leaving. Maybe they'll need his help when making a Transformers sequel or other movies in the future.

In the afterglow of the setting sun, the MGM convoy slowly drove away from the Nevada military base, heading south along Highway 5.

Around 9 p.m., the convoy entered Somano County, California, and arrived in Santa Rosa, a city within Somano County, around 10 p.m.

The administrative divisions in the United States are unique, consisting of states, counties, cities, and towns. However, these four administrative levels are not subordinate to each other, but are relatively independent.

A prefecture cannot govern a county, a county cannot govern a city, and a city cannot govern a township or village. Governors, mayors, and county heads are all elected and each is responsible for the residents of their respective jurisdictions.

Santa Rosa is home to a famous high school, Santa Rosa High School, which has been used as a filming location for many Hollywood movies.

MGM had already contacted the principal of Santa Rosa High School in advance and had the script reviewed; it was definitely PG13.

The convoy stopped in the hotel parking lot, and Eric got out of the car and pulled Patty Jenkins aside.

"I need to go back to Los Angeles to take care of some things, so I'll leave the filming here to you. Like I said, stick to the script, okay?"

Patty Jenkins nodded: "I'll say it again, you're the boss, you call the shots!"

After everyone checked into their hotel rooms, they dispersed. Eric looked out the window and, sure enough, saw James McAvoy, Michael Fassbender, Deadpool, Captain America, and the others sneak out.

James McAvoy was alright, but the others had been training at the Nevada military base for a month and filming for a week. Their hormone levels were already way off, and they definitely needed to vent their frustrations.

"Eric, what are you looking at?" Gadot's voice sounded from behind.

"It's nothing, just a few mice stealing food."

"What? Hmm."

"It seems to have gotten a little bigger."

More than an hour later, a Lincoln arrived downstairs at the hotel. Chen Xing made a phone call, and the car drove away a moment later.

"Eric, it's time for you to get up."

Eric opened his eyes to hear a familiar voice. It was his mother, Emily Cooper, the woman who loved him most.

"Honey, it's already 10 a.m., you have to go to work."

Eric shook his slightly dazed head: "Sorry, I've been filming in Nevada lately and haven't been getting much rest."

Hearing this, Mom looked worried again: "Then sleep a little longer. Work isn't urgent; your health is the most important thing."

Because the filming schedule was very tight, with eight consecutive days of shooting, the actors could clock out on time, but the director could not.

Eric also had to plan and work on camera shots, staying up late every night, and also had to find time to finish the script for "Blue Is the Warmest Color" while writing several new scripts. It was normal for him to only sleep four or five hours a day.

In addition, the conditions at military bases are not good. Even if you fall asleep, you are often woken up by the sound of training before you have entered a deep sleep.

Now that I'm back home, lying comfortably in bed, I feel like I could sleep forever.

I yawned and flopped heavily onto the bed, and my mom closed the door behind me.

When I woke up from my nap, it was already past 2 p.m., and my phone kept ringing.

"Judy, what's wrong?"

Judy's voice, filled with confusion and urgency, came from the other end of the phone: "My boss, what are you doing? Didn't you tell me to meet Stephen Chow? He's been waiting all morning. I've called you several times but you haven't answered. Chen Xing won't tell me what you're doing either."

Eric then realized that he seemed to have forgotten something, but of course he couldn't admit to sleeping; he still had to maintain his boss's authority.

"Okay, I understand. It's just something I need to handle temporarily. Are the people from Xinghui Entertainment still at the company?"

"Yes, but I've already been to the bathroom several times. I'm afraid I'll get impatient if I wait any longer. I don't even know what to talk to them about anymore."

"Then tell them to wait another hour, I should be there soon."

"Another hour? My boss, you're American, not Italian. Can't you have a sense of time?"

Eric scoffed, "A concept of time? That's for the weak. We're the strong now. Tell them MGM is interested in investing, and we'll make them wait another ten days for the money."

After hanging up the phone, Eric went into the bathroom. The hot water washed away the fatigue and sandstorm of the Nevada desert, and he felt much better.

After taking a shower and going downstairs, I found my mom had gone to visit a fellow church member. A sexy young housekeeper in her early twenties brought out a hot meal.

After finishing his meal, Chen Xing was waiting in front of the car when he walked out of the house. He opened the car door, closed it, and then got into the passenger seat. After completing the whole process, the Lincoln slowly started and drove away from Beverly Hills.

"How's the investigation going?"

Chen Xing took a report out of his bag and handed it over: "This is a report on the development of the Chinese film market in recent years."

Eric took it and started flipping through it. Although his predecessor was involved in the industry, 2003 was still too far away. He was only thirteen years old at that time.

After a quick glance, I have a general idea of ​​what's going on. The mainland market is really, really weak right now. From 1995 to 2002, the average annual total box office was just over 900 million yuan, which didn't even reach 1 billion yuan.

The year with the highest annual box office was 1998, because Titanic was released and grossed 3.6 million RMB. So the total box office in 98 reached 14 billion RMB, which is less than 2 million USD when converted to foreign exchange.

The total box office revenue in the United States in 1998 was approximately $75 billion, which is roughly equivalent to 600 billion RMB according to the exchange rate. The difference between the two is 42 times.

Even with Titanic's box office of 3.6 million RMB, Hollywood only received about 4600 million, which is equivalent to about 575 million USD.

You read that right, it was only $575 million. After that, they had to pay a certain amount of tax in the United States, so Disney only received about $500 million.

After going around in circles and working a lot, all I made in the end was enough for cigarettes. That's how Disney felt back then.

Why did I receive so little money?

The reason is that Huaxia's revenue share for imported films is simply too low.

Hollywood movies typically have a revenue split of around 50% in North America, with theaters and studios splitting the profits equally. For big IP movies like Star Wars or Lord of the Rings, or sequels to popular films, the studio's share can even reach over 60%. Conversely, for bad movies, the percentage is reversed.

There are also clauses related to the number of screening weeks; the specific percentage can be negotiated between the company and the theater chain, and it is not a fixed value stipulated by law.

Globally, the revenue sharing ratio generally fluctuates between 40% and 50%, depending on the quality and popularity of the film.

But how much is it in China?

The answer is 13%!

You read that right, it's 30% lower than in Africa, and there's a quota of 20 films imported each year. This percentage didn't rise to 25% until 2012.

This is why the Titanic's revenue share was so low.

At present, the Chinese market is a double-edged sword for Hollywood—it's neither appealing nor worth abandoning.

You might put in a lot of effort but not make any money; nine-tenths of it will go to other people! Am I going to end up begging on my knees?

Therefore, although the quota of 20 imported films per year seems limited, the competition is actually not very intense.

However, it is, after all, the world's most populous country, and its economy is continuously developing. What if its potential is unleashed one day? That's why some companies have already set up offices there.

Since he first crossed over here last April, Eric has been considering whether he should set up a branch office on the other side of the strait.

By planning ahead and cultivating relationships with high-level officials in advance, one can seize the initiative when the film market heats up around 2008 or 2009.

Another very important factor is that this year's Transformers movie must be released in China, otherwise it will be difficult to sell toys and related merchandise, which is more profitable than box office revenue.

After discussing it with my dad, he didn't have any objections. Anyway, registering a company wouldn't cost much; it was just a matter of setting things up for now.

But later, I was entangled in various things, and the idea was gradually forgotten. Now that Stephen Chow has suddenly come to me, the idea has resurfaced.

At the MGM Grand, Lincoln parked on the steps, while Eric went straight to the elevator.

Now, when they see him, the company employees are clearly not as afraid as they were a few months ago; instead, they greet him with smiles.

The main reason was that I knew Eric's personality; he wouldn't lose his temper easily and was generally kind to his subordinates.

In addition, the company has really made money. Since the Cooper family took over MGM, the performance has soared to a visible level.

At the end of the year, Harry Cooper generously increased everyone's year-end bonus by $1, which was quite inspiring and made everyone feel more hopeful about life.

Ding!

The elevator doors opened, and Eric headed straight for the meeting room.

The hostess opened the door and saw three people sitting on the sofa, and the one in the middle was someone she knew all too well.

She wore a black striped casual suit with a warm-looking sweater underneath, and her hair was just shoulder-length.

With handsome, well-proportioned features, but with a somewhat cold gaze, he is none other than Stephen Chow, known as the King of Eastern Comedy.

Upon seeing Eric enter, Stephen Chow hurriedly stood up. He had specifically researched some information last night, and the young man in front of him was even more handsome than in the files.

As the host, Eric extended his hand first: "Hello Mr. Zhou, I'm Eric Cooper!"

Stephen Chow quickly shook hands: "It's our first meeting, Mr. Cooper. You can just call me Stephen."

"First time meeting you? No, no, no, I've seen you in movies many times, the King of Comedy in the East."

Upon hearing this title, Stephen Chow was taken aback for a moment, then waved his hand modestly: "I'm not the King of Comedy, I'm just an actor."

(End of this chapter)