Chapter 159: Rapid Expansion

Don't think that Xiao Ran behaved so cool when he was with Fang Ruohai, but in private, for this victory, he didn't know how many times he bragged to Wei Dongling and Fa Ge. This completely judged that the behavior of the two almost made Sunshine and Monkey's judgment completely lost, and later, the two of them finally agreed that Xiao Ran's performance was "severe schizophrenia".

Of course, Xiao Ran didn't know what Sunshine and the Monkey said, but he wanted to find out one thing, whether Lu Can would betray him. Because Lu Can is now in front of him, waiting to be tested. Xiao Ran pondered for a moment, walked to the window, and quietly looked at the high-rise buildings outside, his thoughts were chaotic.

Emotionally, he really couldn't tolerate Lu Can's betrayal. However, Hai Lulu and the others still stubbornly stayed in Haile, and only Lu Can came back. Lu Can is a talent, he knows this very well, otherwise he would not have been promoted in the first place. With Lu Can's ability and this insight, it is actually a good thing to let him come back.

Lu Can's mood became depressed with Xiao Ran's silent expression, and he thought that maybe it was really difficult to tolerate a traitor in the business world, especially this kind of betrayal to the opponent of his old club. Thinking of this, he suddenly thought that he was hopeless.

But at this moment, Xiao Ran smiled lightly, what is unforgivable, Fang Ruohai can let it go, do you still care about Lu Can. Looking out the window, he said quietly, "How many people are in the building outside the window?" How many of them are not running around for money? It's just that I think people should have a little bit of pursuit in addition to money. Ah Can, if you see Ah Dong tomorrow, he will arrange a job for you! ”

Lu Can couldn't believe it and showed ecstasy, the reason why he came up regardless of humiliation was because he had heard rumors that Xiao Ran wanted to drive out these betrayers. And he knows very well that Hong Kong will be the world of phantoms in the future, and he has no choice. Indeed, as he knew, later Hai Lulu and the others really couldn't get along in Hong Kong, so they had to leave Hong Kong.

"Spy Change" sold quite well in Europe, and with the help of this wind, Xiao Ran handed over the French distribution rights to Leo Company. The Phantom naturally set up a branch in France, responsible for the distribution and investment in Europe, and the host is Ge Wenqiu.

Europe, especially France, is the most prominent in cultural preservation, but it has never been as resistant to Eastern culture as it is to Hollywood. Therefore, after the Phantom's branch won the theatrical distribution rights in several small countries with the power of "Spy Change", it sold the rights to the first round of releases and the rights to the video tapes to European companies.

According to the results of the distribution department, the total box office in Europe is currently 4 billion US dollars per year, and the number of viewers is about 1.8 billion. Several of Phantom's outstanding films have been released in Europe, and they have all done well at the box office, which can be described as a very important market.

In Xiao Ran's vision of the entertainment empire, the mainland market is only in the development stage for the time being, but it will become an important base for the phantom in the future. Southeast Asia (including Yueben) is Xiao Ran's current most important, while Europe is in second place, and being able to dominate Europe means completely sniping Hollywood. The third step is to impact North America, and the fourth is to set up a global distribution network, which is pervasive and occupies the market in every corner of the world.

However, in Xiao Ran's memory, the decline of the European market is not only due to the failure of local films, but also an important reason. That was the neglect of the projection facilities and environment, and European cinema was reduced from more than 40,000 cinemas at its height in 1960 to less than 20,000 in 1995, and the overall number of seats was simply reduced from 18 million to 4 million.

In the United States, the number of movie theaters increased from 18,000 in 1960 to 26,000 in 1995. Although the seating capacity of each screening hall has been reduced from 600 to 200, the main investment has been in equipment and environment.

There are such examples as evidence, so how Xiao Ran does not pay attention to the renovation of movie theaters. In the second half of the year, Xiao Ran used the shares of Leo Company as collateral and obtained a loan in France to acquire a cinema chain. After the renovation, it is obvious that it surpasses other theaters in terms of equipment and comfort, and as a result, this theater line brings a lot of revenue to the Phantom Company.

And Haisen Group finally couldn't resist, Haile Group has been ordered to rectify, and now it is only necessary to say that it will be closed. The reason is very simple, Xiao Ran arranged the fake box office at the beginning, and now under the arrangement, the general manager of the supermarket kicked out, and Haile Group is naturally discredited.

Originally, things like this were only heavily fined (why do I always think that the Hong Kong British political axe is taking advantage of the opportunity to make money?). However, under the joint pressure of the four major companies, the Hong Kong British political axe soon made the most serious punishment. Under such circumstances, Wen Bowen would be a fool if he didn't sell it again.

The four major companies got their respective dividends as promised, and got them at a fairly low price. Wen Bowen was a little depressed about this, but compared to the wealth obtained by the annexed Fang family, this was much less.

Xiao Ran got not only ATV, but also several artists of Xinyibao, such as the band beyond. The most important thing is that Xiao Ran instructed the World Fund to take over the Golden Princess Cinema Line, and then sold it to the Phantom Company at a price that was one percent higher than the purchase price. After spending a lot of money to renovate the cinema line, the equipment was updated, and the golden princess was officially incorporated into the cinema chain, becoming the largest cinema chain in Hong Kong.

And the Phantom also officially began the reorganization and spin-off that matched the strength again, and the production part was named the Phantom Image after the dismantling. The cinema chain was also spun off and became a wholly-owned subsidiary of Phantom. The newspaper and magazine were merged and renamed Scholarly Media.

Because ATV received Xiao Ran's extreme attention, Wei Dongling personally went out to rectify and reorganize, becoming a wholly-owned TV station under Phantom, announcing the beginning of fighting against wireless. The post-production department was also spun off and named Thinking. The audio-visual department is also a reading power out, named Sihai.

One of the ones that has not yet been divested is the computer special effects department, which spends money like running water, and in the first half of the year alone, the phantom has thrown at least 300 million yuan on it. This made Xiao Ran very depressed, and even wondered if he had done something wrong, or if it was better to directly acquire Light and Magic.

Famous filmmakers such as Xu Ke and Huang Baiming, as well as some fledgling future stars, have thrown themselves into the Phantom, and the sisters are about to release their first solo album. All of a sudden, the Phantom was so powerful that it surpassed Golden Harvest, and it was above Golden Harvest, and it was hidden as the number one film company in Hong Kong.

In the second half of the year, the Phantom started filming about 14 films, invested in 9 films, and released a total of 33 films. Among them, there are many "Inside the Law" and other classics, which have become popular with many filmmakers and actors.

Golden Harvest is of course very unhappy, but in the second half of the year, except for "Home Alone 2", which was not released in prime time, won the Phantom battle at the box office, all the other films failed. In terms of distribution, Golden Harvest is not as long as the phantom's outstretched hand, even if there is dissatisfaction, it can only be hidden in the heart.

In terms of the expansion of the Phantom, the progress is also quite fast, and it can be said that it has entered a golden age. He successfully acquired a cinema chain in South Korea, and also won a cinema chain in Taiwan and Singapore, but small countries such as Malaysia and the Philippines did not get involved in it, because it was really not cost-effective.

The Phantom has also opened branches in Babon and South Korea to facilitate investment in local films. The staff who have been honed at the headquarters have been promoted to high positions, or they have been "assigned" to other countries to enjoy the treatment of the founding heroes. In the company, the employees who have learned the novel and advanced concepts instilled by Xiao Ran have done a good job in their positions.

For a while, the Phantom Company spread like a virus......

Finally came February 1989, which was the most critical year, and Xiao Ran hoped that he could win the Hollywood studios and Light & Magic this year. The light and magic that has been listed is actually not very difficult to deal with, Xiao Ran has already asked Fang Xiaoqiang to work quietly in the United States, hoping to try his best to win this company that controls more than 70% of the special effects production in the United States in the future.

And this year, the annual reports of various departments of the Phantom Company were also released, first Sihai Audio, because last year the company obtained the distribution rights of a considerable number of films. It also developed the European market, which resulted in a huge increase in profits. In 1988, all the films released by the Phantom combined, with total sales of 740 million. Because video tapes are now a profiteering industry of several hundred percent, the result is a total profit of 480 million. In addition to the loss of nearly 80 million yuan on peripheral products, they also made a profit of 400 million.

Phantom Images has started filming a total of 26 dramas throughout the year, of which five have not yet been released, and the total local box office is as high as 380 million, accounting for 35% of the annual box office of Hong Kong films, breaking through Golden Harvest's market share for the first time. The total box office in Southeast Asia exceeded 1 billion, while a total of 7 films were released in the European market, with a total box office of 310 million.

This is because in Southeast Asia and the local market, it is basically based on the equal sharing of profits between producers, distributors and exhibitors (except for the mainland), plus the profits that are distributed to the production department after the distribution department is distributed to Europe. As a result, in the whole of last year, after deducting the production fee of up to 200 million and the reward of about 80 million, the Phantom Image also made a profit of 270 million.

In terms of cinemas, in addition to local cinemas, other cinemas are only making local profits because they are in the process of renovation and acquisition, and there is only investment. But this is quite good, with a profit of 80 million.

Because the thinking has just been spun off, there is no profit to talk about, so just take the initiative to ignore it. The computer special effects department is even more useless, except for the contact advertising can barely make up for a little loss, at least 500 million yuan was spent on equipment and the like throughout the year.

Shuxiang Media doesn't make much profit, so don't mention it. The distribution department is the most profitable, making 730 million yuan in the first round of screening rights alone, and if you add the screening rights of the TV station, it will also sell a full 200 million. The company made an annual profit of 120 million.

The investment department was not spun off, and it earned 530 million yuan for the company throughout the year, not including the stocks and companies designated by Xiao Ran. ATV is basically at the same level in terms of income and expenditure because of the rectification not long ago. The marketing department, relying solely on advertising expenses from all over Southeast Asia, plus the expenditure of publicity expenses, is basically calculated in addition to the box office figures, and actually made a profit of nearly 20 million.

In 1988, Phantom made a profit of 1.8 billion for the whole year, which is definitely extremely rare. If it weren't for the fact that making movies in Hong Kong is a profiteering industry now, it would never have been possible to have such outstanding performance.

The new year has begun, and the Hong Kong media has also begun to frantically rank the richest people in Hong Kong. At this time, the people of Hong Kong were surprised to find that Xiao Ran's net worth had skyrocketed a lot in a year.

What is Xiao Ran's current net worth? Phantom and its subsidiaries combined, plus the holding of Scholar Media and Leo Company. The equity of Leo Company alone, which has appreciated, is worth one billion Hong Kong dollars, and the issuance contract of Phantom Control is worth at least 1.5 billion, plus 1.5 billion in liquidity. In addition, its cinemas and subsidiaries, after the evaluation of professional accountants, believe that the market value of the Phantom is at least as high as 7 billion Hong Kong dollars.

This is the first time that a film company in Hong Kong has reached this figure in terms of market capitalisation, and it is also the first time that Phantom has surpassed Golden Harvest and Shaw Brothers in market capitalization. Phantom has also set a lot of records this year, such as breaking Golden Harvest's market rate for the first time, beating Golden Harvest to become the largest film company in Hong Kong.

Xiao Ran holds 90 percent of Phantom, plus its appreciating Microsoft stock, as well as other stocks and real estate. With a net worth of at least HK$7 billion, it is logical that he has become the most dazzling business wizard in Hong Kong, ranking 77th among the top 100 richest people in Hong Kong. If you count the current World Fund worth 1.3 billion, Xiao Ran's ranking can advance by at least ten places.

Of course, Xiao Ran didn't take this to heart, at this point, he only cared about how much more influence he had than before. Although Scholar Media listed Xiao Ran as the number one powerful person of the year in the Hong Kong film industry in the "Power" magazine, a character founded by Shuxiang Media under the guidance of Xiao Ran, Xiao Ran himself knows very well that the two old companies Golden Harvest and Shaw Brothers are not a joke.

"Power" magazine was Xiao Ran's idea, and he thought it was very necessary to create such a stylish people magazine, which could be distributed around the world in the future. He also instructed Shuxiang to found another film industry magazine, Influence, which is aimed at a different audience than Film Fortnightly, and is mainly distributed within the industry.

However, what Xiao Ran is thinking about now is the company, which has indeed been built into a junior film empire. However, Xiao Ran believes that there is a problem in the industry's income, and the company's box office revenue (including overseas distribution) is about one billion, accounting for 60% of film-related revenue, which is a very dangerous revenue and expenditure structure.

This means that the Phantom Company largely relies on the huge profits of the box office of Hong Kong films to make a lot of profits, and if it loses its dominant position at the box office, it means that the Phantom will lose most of its profits.

And Xiao Ran knows very well that in Hollywood in 1980, the profits from the box office only accounted for 50% of the film revenue, but now it has dropped to about 40 percent, and ten years later it is even only 30%. About 20 per cent of the revenue comes from television, with the rest coming mainly from the video tape market.

The Phantom Company has to discount its TV revenue, and the video tape market only accounts for more than 20 percent of the revenue. This is a dangerous and profitable signal, and it means that the video tape market and the revenue from television still need to be tapped.

"Ah Ran, why do you think that the box office should not be the main force of film revenue?" Wei Dongling doesn't understand very well, after all, the box office is always particularly critical in the world.

Xiao Ran pondered for a moment, this question is not easy to explain. However, he hoped that he could explain as much as possible, and after a while of using words, he looked at Wei Dongling, who was looking forward to the answer, and said: "It's very simple, it is inevitable to dig out the maximum interests of commodities." According to the classification of audience level, we can roughly divide it into three levels of market. ”

"The primary market is the people who like to go to the cinema and watch movies, and once we have enough money in their pockets, it's our turn to go to the secondary market. It's the videotape market, where most of the people are loyal fans and audiences who are too lazy to go to the cinema, and it's unlikely to coincide. The third level of market is the TV station, which can attract a family audience! ”

Wei Dongling immediately understood what Xiao Ran meant, but Xiao Ran hadn't said why he wanted to pay attention to the proportion of video tapes and TV broadcast fees. Xiao Ran rubbed his nose, sat on the table and stared at Wei Dongling and continued: "Entertainment methods are becoming more and more diversified, and these will inevitably dilute box office revenue. Therefore, we cannot rely on the box office, and the increasing number of video recorder users and TV users will definitely share the box office of the movie. In this way, we pass on the revenue from the box office to the video tape and the broadcast fee, and share the risk. ”

Wei Dongling pondered, he understood what Xiao Ran meant. After hesitating for a moment, he immediately made a decision, looked up at Xiao Ran and said, "I agree, the Phantom Imaging is completely readable, and our main goal this year is to release and these two points." ”

Talking to smart people is worry-free, Xiao Ran sighed. When will his film be completely realized, if he can't stabilize the Asian market and break through this market to reach the European market, I am afraid the end may not be wonderful!

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