Chapter 86: Persuasion
Shen Xudong didn't lie, he did make an appointment with Lao Wang.
Wang Jianlin...
Lao Wang acquired AMC Cinemas, and the next step will definitely be to focus on the upstream production field of the film industry...
It's just lice on the monk's head - obviously.
Anyone who wants to make it big in the entertainment industry wants to develop the whole industry chain, and the so-called whole industry chain is film investment, production, distribution, cinema chain and cinema business.
Therefore, TiMi Media is the leader of mainland entertainment stocks!
In addition to the cinema chain and cinema business, they are the first in various other fields, not to mention, they also have PPTV in their hands.
Wanda's current terminal layout has been formed, and the next step is naturally upstream film and television production.
Learn TiMi Media, sign a few directors, and accumulate energy little by little?
It's too slow!
And Wanda does not have a leader like Shen Xudong in her hands, even if there is, Wang Jianlin and Ma Yun are the same, and they believe in systems and systems rather than people...
Therefore, Brother Song left Wanda, and Dong Ping also left Ahri Pictures...
Brother Song is the general manager of Wanda Pictures, and his ass is not hot before he conflicts with Wang Jianlin's business philosophy...
Brother Song once suggested that Wang Jianlin should use the leading position of Wanda Pictures' cinema chain to bring over Wang Jinghua, a first-class agent, and then hire big directors such as Zhang Yimou and Zheng Xiaolong to form a trust organization integrating production, brokerage, and cinema...
ββTrying to use 100000000000000000000000000000000000000000000
However, Lao Wang doesn't look down on this profit: your annual film profit is only tens of millions, what's the point of this kind of company?
Moreover, Wanda's process is particularly cumbersome, the original time and space, because of process problems, Brother Song missed "Thai Embarrassment" and was missed by Wang Changtian; missed Stephen Chow's "Journey to the West" and was snatched away by Huayi; wanted to dig Huayi's senior film trader Chen Guofu, but Wang Jianlin did not agree.
In a fit of anger, Brother Song resigned and left.
He did not lack capital, did not worry about connections, quickly set up his own door, established a Ferris wheel company, operated "You at the Same Table" and "Heart Flower Road", and made a lot of money again.
Pull it back, although now Lao Wang rejected Brother Song's proposal, but this matter has given Lao Wang a wake-up call, Comrade Wang has a global vision, aims at Hollywood, and spends a lot of money to buy AMC and Legendary Pictures...
Of course, now he hasn't bought Legendary Pictures, he wants the whole big news!
Want to buy a big global company, like Paramount, MGM or DreamWorks Animation...
Well, DreamWorks Animation wasn't in his plans β only the Big Six were truly global studios, and none of the others were either. This is a necessary step if we want to build a true cinematic empire...
He is through Cao Hua Yiyue's Shen Xudong...
The four major investors of Xinli Media are Cao Huayi himself, Guangguang Media, Wanda Film and Television and Tianmei Media...
β¦β¦
When he arrived at the agreed hotel, Lao Wang was already waiting for him, chatting while eating.
Without nonsense, he went straight to the topic, and Lao Wang asked: "I want to invest in MGM, what do you think?" β
"Not good!" Shen Xudong replied very seriously: "At this stage, the North American film market is firmly occupied by the six majors, NBCUniversal's Universal Pictures, Viacom CBS's Paramount Pictures, Time Warner and Warner Bros. Pictures, Disney and Sony Pictures Entertainment, News Corporation's Twentieth Century Fox... These six have an 80% share in North America and have a global distribution system! β
"After MGM was privatized, it was a comeback with two "007" movies and the "Hobbit" trilogy... But it's still saddled with $4 billion in foreign debt... And even if you buy it, it's hard to get the rights to 007! β
Lao Wang was curious: "Why?" β
"In '09, MGM announced that it would reject Lionsgate's acquisition for bankruptcy reorganization, and that it would rather go bankrupt than trade in the 007 series... The copyright of 007 has always belonged to MGM, and Sony Columbia is an overseas distributor..."
"Overseas distributors?"
"MGM no longer has the ability to distribute globally!"
Lao Wang then asked: "Then do you know why Sony doesn't care about MGM?" β
Shen Xudong smiled: "An important reason for Sony's acquisition of MGM is the film library!"
Back then, after successfully winning MGM, it was planned to close almost all of MGM's studios except for the 007 series of films and the "Pink Panther" series of films..."
"In order to sell discs, when HD and Blu-ray BD discs were at war, Sony mastered the Blu-ray BD technology, and after winning MGM, Sony picked 1,400 films from the film library and output them into an exclusive Blu-ray format..."
"And then?"
Shen Xudong shrugged: "Then Sony underestimated the speed of technological development... Around 2008, the advent of online downloads and digital formats led to a historic turning point in the video market, and in the U.S. market alone, sales of Blu-ray or DVD shrank by nearly 80%... Add to that the '08 financial crisis... Let's put it this way, when Sony acquired MGM, the other party had a debt of 2 billion, and in 2009, 4 years after the acquisition, this figure became a "loss of 3.7 billion", almost doubled... Sony can't afford to play, so I just don't play anymore..."
"What about Lionsgate?"
"Lionsgate..."
Shen Xudong was happy: "To be honest, I also considered buying Lionsgate... But then I gave up! β
ββ¦ Why? β
"Because most of Lionsgate's movies are R-rated... It's the so-called R-rated that is not suitable for children, they are good at horror movies, bloody action movies and thriller crime movies... It's hard to release this kind of movie in the mainland, and if I want to buy a Hollywood company, it must be out of consideration for the mainland market..."
"I heard you also own a stake in a Hollywood animation company called... Illuminated entertainment? β
"Yes, Illumination Entertainment, founded in '07, founded by Chris Meledandley, is a blue sky studio... That is, the producer of "Ice Age", he was dissatisfied with Twentieth Century Fox, so he simply jumped ship and founded the company, and mine has a little spare money in his hand, so he invested 20%..."
Lao Wang asked: "... Are cartoons highly profitable? β
"It's ok... Anyway, "Despicable Me" cost $55 million, the global box office is close to $550 million, and the income from DVD and copyright peripherals is also very good, and I shared $75 million in the first dividend last year... And then I cast the next ten films..."
ββ¦ $75 million, three years of earnings? β
"You can't count it like that... Forget it, it's definitely not as profitable as you are selling your house! β
Lao Wang has lived a very comfortable life in the past two years, making a lot of money by relying on real estate, with a net profit of 20 billion a year, in his eyes, the market of film and television production is not big enough!
"I'm looking for you, except to inquire about Hollywood... I also want to buy your Golden Harvest Cinema Line..."
Shen Xudong was stunned for a moment: "Jiahe Cinema Line? β
"Yes, you make a price, sell Golden Harvest Cinema Line to me directly, I won't bargain!"
For a moment, Shen Xudong was quite tempted, after all, he had PPTV in his hand, and he would definitely vigorously develop streaming media, theaters and the like in the future... It belongs to the sunset industry!
After 2018, the scale of the global film market can no longer grow explosively, but the number of moviegoers is worrying every year, coupled with the rise in operating costs, in fact, theaters around the world are facing a cold winter.
How can theaters save themselves?
Upgrading seats, food and audio-visual experience, but essentially to cope with the decline in moviegoers, but this upgraded experience needs to continuously increase the cost of consumption per person, which makes theaters enter a kind of "aristocratic" circle.
The better the theater upgrade, the lower the number of moviegoers.
It's very simple: compared with other service industries, the service of cinemas is not only hardware facilities, but also the content of the film itself. This kind of "service" is not available in theaters, which are just channels for showing films.
Therefore, selling the theater chain is something that Shen Xudong has been considering.
The problem is that the scale of viewing in the Chinese film industry will usher in a great leap forward in the next five years, and the theater chain will usher in the best time, Shen Xudong doesn't really want to miss it, and if there is no theater, the entire industry chain will be incomplete, and a link will be missing.
Thinking of this, Shen Xudong shook his head: "We are unlikely to give up the cinema business for the time being..."