Chapter 434: An Irreversible Trend

Even when he returned to Los Angeles, Ronan has been maintaining enough communication with Netflix, and even let the production department of Shahai Entertainment join the ranks of frequent communication with Netflix.

In the future, Netflix's streaming model will also have a huge impact on the production of Shahai Entertainment.

If everything goes well, when Netflix collapses the video store and overshadows the TV station, it will naturally enter the film production industry and cooperate more closely with Shahai Entertainment.

And Netflix's member users always want to see more TV series, movies, variety shows, etc., and the more choices the better, after Netflix establishes its position in the industry, it will become easier and easier to attract good creators.

Even like in the past, the filming of online dramas by big directors and popular stars is no longer regarded as a preconceived thing.

Ronan summarized some of Netflix's patterns from memory, in fact, Netflix will not be ostracized by Hollywood practitioners, because it is equivalent to increasing job opportunities for them.

As we all know, Hollywood's most popular stars or directors are treated and have union opportunities very differently from those of the second-tier actors, with the former often paying millions or even tens of millions of dollars, and sometimes too many projects to choose from.

The latter seems to be only one level behind, but the salary is often only a dozen or two hundred thousand dollars.

Even if there are such job opportunities, there are not many.

Moreover, under the existing Hollywood production system, films with certain authorship attributes and a certain degree of commerciality have been abandoned to a certain extent.

Nowadays, independent labels are declining, and for those in the industry, it is either a big-budget movie made by a big studio or a small-budget independent film, the former has money, the latter has freedom, and each has its own survival system.

And middle-cost movies are more difficult to do, and all aspects are limited, and the key is that they may not be able to recover the cost.

The emergence of Netflix has just created opportunities.

In fact, Netflix's convenience for film production and distribution is not only this, for example, it can easily connect domestic and foreign production and distribution resources, and extend the life cycle of a movie;

And to distribute a movie through an online platform, there is no need to make copies, there is no need to shop too many hard and wide, there is no need for middlemen, and even movie theaters are saved.

So are some movie theaters going out of business? Obviously.

Therefore, once Netflix participated in the Cannes Film Festival, which made the French panic as if they had seen the German invasion.

Because the biggest impact from Netflix is precisely the art theater that likes to maintain the so-called tradition and does not pay attention to keeping pace with the times.

Art films don't need good projection equipment, and even the big screen is not very different from the widescreen display.

On the contrary, the impact on commercial theaters will be smaller, and the difference between watching special effects commercial films in theaters and watching them on a small screen is too great.

As a result, Hollywood and Netflix have an ambiguous attitude and even cooperate closely, while the European art film circle simply regards Netflix as a tiger wolf.

If you have to list the advantages of theatrical screening of art films, I am afraid that there is only a "sense of ceremony" left.

Under Ronan's coordination, Netflix has been able to communicate very smoothly with Shahai Entertainment and Embassy Pictures, with the former being able to provide a series of market data for the latter.

As of the end of last year, Netflix users generated more than 20 million behaviors every day, including clicks, registrations, film selection, rentals, etc., as well as more than 3 million search requests.

These data are transferred to Relativity Entertainment, and this is likely to be the case, for example, if a popular IP is to be made into a movie, most fans hope that a certain pair of male and female star partners may come true.

In fact, in Ronan's view, for a long time in the future, Relativity Entertainment's Internet video business and physical cinema screening business will coexist, which can allow different types of movies to find their most suitable platforms, and also put forward higher requirements for the audio-visual quality of cinema films.

For viewers, there is no conflict between going to the cinema on weekends as a family to watch a popcorn blockbuster and watching streaming video on a tablet alone in the dead of night.

And as the classification of films produced by online video platforms becomes clearer, new industry rules and related management regulations will also be born in North America, for example, video websites can circle some big directors and big production films, so that they can reach the level of 4K cinema screening, and form a relatively balanced relationship with physical theaters in the process of gradual running-in.

In this era, all walks of life are Internet, which is an irreversible trend, as a traditional industry can only learn to take the initiative to adapt, in the integration to find the next outlet.

With the current development situation, it will not be long before the "old guys" in Hollywood will smell the crisis, feel the opportunity, and realize that streaming media will become the unstoppable future of entertainment in the Internet era.

In the last years of Ronan's life, major traditional film companies represented by Disney, Warner, and Universal competed to release plans to build their own streaming platforms. Even technology companies such as Amazon and Apple hope to use resource advantages to open up the streaming media market and share the dividends of film and television content in the new era.

Now that Relativity Entertainment and Netflix can be one step faster, it is possible to occupy a greater advantage in the industry in the future.

Ronan once carefully analyzed that the one who could really compete with Netflix on streaming at that time was undoubtedly Walt Disney.

For no other reason, the former Disney removed Disney's own advantages, and later held Pixar, acquired Marvel Comics, and annexed Lucasfilm, which has the hottest and high-quality content in Hollywood.

Content is the foundation of streaming services.

But now, apart from Pixar Studios, other companies and content are still very far away from Disney.

Ronan has also been planning to completely isolate these important content makers from Disney.

Now that he's dug into a corner of Walt Disney and brought in Robert Iger, the smiling Mickey Mouse, Ronan doesn't mind digging a few more times.

At the same time, Ronan also asked Shahai Entertainment to introduce two programs tailored to Netflix's online video business.

According to the plan, these two programs will be launched at the same time as Netflix's online video service.

The crew of "Survival in the Wild" has been formed, a number of professionals have been recruited, and they are looking for suitable locations and designing scripts around the world.

However, the key figure, Bell Grylls, is currently floating in the Atlantic Ocean and will need some time to reach North America.

Another TV drama project is officially called "Prison Break", the script has just been finalized a few years ago, and Shahai Entertainment has begun the recruitment of actors and directors.

It is expected that it will be three months before filming can begin at the earliest.

What is the name of the male protagonist of this drama, Ronan doesn't remember at all, after all, in his previous life, he was a little popular because of "Prison Break", and then he disappeared from everyone.

He simply asked Shahai Entertainment to determine the actors through a wide range of auditions.

Since 2002 has passed, a lot of statistics have been sent to Ronan since this time, especially related to movies.

Last year, eight films sold more than $100 million in North American DVDs, with Spider-Man at 12.2 million and $215.3 million, The Lord of the Rings: The Fellowship of the Ring at 12 million and $205.73 million, and Monster Power at 11.8 million and $202.51 million.

Because the DVD was first released at the end of 2001, although it did not make it to the top few, it still sold 6.5 million copies and $120.54 million in the whole of 2002, ranking eighth in the North American DVD sales list last year.

But in the rental market, "Spy Shadow" overtook all its competitors, with more than 20 million leases and a rental income of up to $88.98 million, ranking first in the North American rental list!

This is also the best rental result for a Hollywood film in a single year after "The Sixth Sense" earned $98.6 million.

In 2001, "Spy" grossed nearly $240 million in North America on DVD alone.

For many films, it's no longer uncommon for DVD revenues to outperform the box office.

Of course, just as the North American box office has to be divided into layers, DVD revenue has various costs.

The box office has a share of the theater side, and the DVD is also indispensable to the channel fee.

But the cost of DVD is much lower.

Excluding costs, publicity and distribution, as well as various channel offerings, "Spy" made $112.1 million in DVD revenue.

By the end of 2002, counting the profits of various channels and surrounding areas in North America and overseas, Relativity Entertainment's profit on a single project of "Spy Shadow" was as high as 235.67 million US dollars.

DVDs have taken up more than 40 percent.

Throughout 2002, Relativity Entertainment produced not many films, but its performance was still outstanding, and even after excluding the $60 million invested in Netflix's capital increase and shares, tens of millions of dollars in establishing an animation studio, and various expenses, it still achieved a net profit of $386.8 million.

Old films are still relying on offline markets outside of theaters to generate profits, and new films such as "Resident Evil", "Tales of the Night", "Here Comes the Death 2" and "Hurricane Rescue" have done well.

Especially the latter two, "Death is Coming 2" has been released in North America, with a North American box office of $131.02 million and a cumulative global box office of $312.01 million.

"Hurricane Rescue" has grossed even more in North America, approaching $175 million, and is very likely to surpass $180 million in the end, with overseas revenue approaching $150 million.

Relatively speaking, 2002 was just a small year for relativity entertainment, and 2003 was the real big year for movies.

Although Relativity Entertainment is still taking the boutique route, in 2003, both the number of films and the scale of investment will set a new record since the company's establishment.