Chapter 489: Defection and Collapse

As the New Year Slot draws ever closer, the promotional campaigns for the few films about to be released have entered a white-hot stage.

Feng Dapao, who just took home the Golden Butterfly Award at the Roma Dianyingjie, is in high spirits and once again solemnly states on Weibo:

"Dixing Yinxing is an epic blockbuster and the film I have put the most heart into in the first half of my life. I feel its box office must reach at least 1 billion to be considered a success!"

Lu Chuan's film, The Feast, is a bit pretentious; he specifically released a final trailer that is very showy.

"As the ancients said, governing a large state is like cooking a small fish. I believe the same logic applies to making films. From preparation to filming, then to post-production, and finally to the release, it has been two and a half years of meticulous cooking. I hope everyone can enjoy this feast brought to you by Chef Lu!"

By comparison, Li An's film, Life of Pi, has not done much promotion.

However, relying on the gimmick of a pure 3D IMAX blockbuster and the reputation of Li An as an Oscar Director, the film's popularity is not low.

The promotion for Dixing Yinxing is quite standard, but with the combination of Wei Jin, Ceng Li, and Cheng Long, it naturally carries its own appeal.

The struggle between the distribution alliance and the cinema chains is still in full swing, but as time passes, someone has finally been unable to withstand the pressure.

Xianggang Yindu Jigou officially announces the news on its website:

"The Grandmaster is willing to maintain the 43% revenue-sharing ratio; effective immediately, we will no longer respond to the call of Bona."

As the saying goes, a thousand-mile embankment is destroyed by an ant hole; the first New Year Slot film to withdraw from the box office revenue-sharing dispute has appeared.

Immediately following this, the cinema alliance led by Wanda Cinema Line, also being very accommodating, replied at once:

"27 cinema chains will guarantee the screening schedule for The Grandmaster, facilitating a win-win situation for both cooperating parties."

Once the news broke, the industry was in an uproar.

No one expected that the previously incredibly powerful distribution alliance would actually be breached from within just like this.

However, Wei Jin is not surprised by this result.

Although the producers and distributors are aligned in their interests regarding box office revenue sharing, the risks borne by the producers are much greater than those of the distributors.

Distributors can confidently shout the slogan of "withholding films," but producers ultimately lack the courage to gamble with tens or even hundreds of millions in production funds.

Furthermore, the distribution alliance is not only an alliance of allies, but they are also competitors in the New Year Slot.

By comparison, the relationships among the cinema chains are actually tighter and more united.

After all, the competition between them is more of an external factor, such as renovations, ticket prices, and geographical location.

Now, the pressure is on the distribution alliance.

Beijing, Huayi Zongbu.

"Damn it, these fools are not worth conspiring with! The release date for The Grandmaster is still more than a month away, what the hell are they panicking about?"

The Wang Brothers sit facing each other, their expressions looking rather unpleasant.

"Brother, what do we do now? We have one less bargaining chip."

Facing his brother's question, Wang Zhongjun remains silent for a long time before looking up and replying: "Let's talk to them. Ye Ning promised me before that if we withdrew from the distribution alliance, they would return the favor and bring out a film to enjoy the tiered revenue-sharing model; the specifics can be discussed further."

No sooner had he finished speaking than Wang Zhonglei stood up: "Brother, we initiated this; if we jump ship—"

Wang Zhongjun glances at him, understanding his brother's concerns. Although The Grandmaster has withdrawn, that was the producers' idea, and Bona has not betrayed the five major distributors.

But if Huayi, the initiator, jumps ship, it would be offending the other four distributors to death.

"There's no other way, the time is getting closer. Are we still holding the premiere? Are we really going to ignore the 200 million in costs?"

Speaking of this, Wang Zhongjun's face is full of ferocity, and his tone carries a sense of resolution.

"And do you think that if we don't jump ship, we can hold out until the end? Bona only has one film left, you know?"

Wang Zhonglei nods slowly: "Brother is right, we can't make wedding clothes for others."

"Hmm, that's the logic. If Zhang Dapao can do it, why can't we learn from him? Benefits are only truly yours once they are in your mouth."

"Fine, Brother, I'll go talk to them. Which film should we choose?"

"Xiaogang's 1942, that's one of our own."

Hearing this, Wang Zhonglei gets up: "Alright, I'll go do it right now."

"Take Xiaogang with you, and ask for more benefits."

"Don't worry, Brother."

Star Media, inside the Chairman's office.

"President Qin, what did Chairman Han and Chairman Yang say?"

Lu Chuan looks at Qin Hong, who has just hung up the phone, with some trepidation and asks hurriedly.

Even though the film is finished, if it cannot be released due to the revenue-sharing dispute, wouldn't all his hard work over the past two years be for nothing? "Chairman Han here will not retreat, and Chairman Yang is also willing to advance and retreat with us. Let's wait a bit longer; the cinema chains can't just show two or three films, right? There is still time, the advantage is with us!"

Regarding this matter, Qin Hong has thought it through very clearly.

Although the cinema chains have offered a price, Star Media has more than just The Feast, and if the five major distributors go all in this time and still cannot negotiate the revenue sharing, there will be no chance in the future.

For long-term interests, it is worth a gamble! "It's a pity we didn't pull Shanhe Media in this time, otherwise our bargaining chips would be even more sufficient. Sigh."

Qin Hong's tone carries a hint of regret.

"Hmph, Wei Jin is just a hypocrite who seeks fame. Once his own company is full, he doesn't care if others live or die; he is short-sighted."

Listening to Lu Chuan's incessant complaining, Qin Hong feels a bit weary.

Putting himself in his shoes, if he were Wei Jin, he wouldn't stand out either, so he waves his hand.

"Alright, you go busy yourself with the promotion. I'll communicate with Chairman Wang of Enlighten Media again."

China Film Group, inside the Chairman's office.

The secretary looks at Han Sanping's gloomy face and dares not say a word; at this time, no one dares to provoke Zuoshandiao.

Han Sanping is indeed very angry right now, not because of The Grandmaster's withdrawal, but because as the head of a state-owned enterprise, he was actually backstabbed by a subordinate unit.

Zhao Jun, the person in charge of Southern New Trunk Line under China Film Group, slapped Han Sanping in the face directly in front of the media, angrily denouncing him for negotiating agreements with cinema chains privately without a board decision and arbitrarily giving away the interests of the New Trunk Line to distribution companies.

The implication in his words was almost pointing at his nose and calling Han Sanping a parasite of the state.

Honestly, Han Sanping cannot refute Zhao Jun's accusations.

As the group chairman, he should have maintained an impartial attitude, but this time, for the sake of the industry's development, he stood on the side of the distribution companies and sacrificed the interests of the cinema chain companies.

As the person in charge of the cinema chain company under China Film Group, it is normal for Zhao Jun to feel resentful.

But this guy shouldn't have, absolutely shouldn't have, criticized them in front of the media; this is airing "dirty laundry" in public.

Han Sanping could already foresee that at the year-end meeting, he would likely be ruthlessly mocked by old rivals like the Shanghai Film Group and Western Film Group.

Thinking of this, Han Sanping looked up at his secretary, his eyes seemingly flashing with sharp light.

"Send out a notice: there will be an internal group meeting tomorrow and the day after; all heads and deputy heads of the subsidiaries must attend."

The female secretary shuddered all over and immediately bowed, saying, "Understood, Han Dong." It was a case of it never rains but it pours.

Just as Han Sanping was busy rectifying the internal situation, a piece of news shocked the entire entertainment industry.

Wanda, Shanhe, New Film Association, Dadi Cinema, and several other mainstream cinema chains, as well as the newly defected New Trunk Line cinema chains under China Film Group, jointly issued a public announcement:

"Following peaceful negotiations, Huayi has officially withdrawn from the distribution alliance; 'Back to 1942' will be released as scheduled and will enjoy the tiered revenue-sharing model."

Huayi, for its part, also released an announcement immediately.

"For the better development of the industry, Huayi has reached a consensus with the cinema chains. We congratulate Director Feng Xiaogang's 'Back to 1942' on signing the tiered revenue-sharing model. The specific agreement is as follows: for box office up to 300 million, the revenue share is 43%; for the portion between 300 and 800 million, the revenue share is 45%; for the portion above 800 million, the revenue share is 47%."

With this, the first company to withdraw from the distribution alliance had appeared.

This also meant that the distribution alliance had completely collapsed.

The entire film circle did not expect such an outcome; Huayi, holding two major blockbusters, had actually turned traitor.

In an instant, the entire production industry was in an uproar, filled with curses.

The internet was also mocking Huayi for valuing profit over loyalty, calling them birds of a feather with Zhang Dapao. Huayi's defection turned the distribution alliance into a joke and made the other four companies hate them to the bone.

Xingmei, inside the chairman's office.

"This agreement, only Huayi can enjoy it?"

"Yes."

Having received a definitive answer, Qin Hong was quite furious. It was clearly Huayi that had initiated and led it, yet they were the first to defect? He instantly transformed into a "desktop cleaning master."

"Damn it, then nobody plays."

After venting, Qin Hong looked at his deputy.

"You go contact Ye Ning and the others. 'The Last Supper' will switch to a different model: 43% for the first week, 41% for the second, and 39% for the third. I only have one requirement: increase the screening rate. Since Huayi wants to defect and 'Back to 1942' wants to hog all the profits, I refuse to let them have an easy time."

Seeing the murderous look in Qin Hong's eyes, the deputy swallowed hard: "Understood, Qin Dong."

The revenue-sharing model for "Back to 1942" was aimed at the later stages, so they had discussed it with the cinema chains.

And the model of sacrificing revenue share to seek screening rates, like that of "The Last Supper," was truly too friendly for the cinema chains.

Therefore, both sides reached an agreement that same day and published it online.

This time, there was nothing to be surprised about in the circle, because the alliance's collapse was as obvious as lice on a monk's head.

However, although Xingmei also became a traitor, the first one to jump ship was undoubtedly more hated.

Almost everyone attributed this failure to Huayi, and in the evening, Wei Jin received a call from Wang Changtian.

"F*ck, those two grandsons surnamed Wang are really not human. They stirred up the momentum and then actually defected. In the revolutionary era, this would be punishable by execution, the sons of b*tches."

Listening to Wang Changtian's angry cursing, Wei Jin couldn't help but laugh, then reminded him, "Brother Wang, don't curse yourself."

"Pfft."

Wei Jin had the speakerphone on, and Liu Yifei, listening from the side, also started laughing. The grandsons surnamed Wang—wasn't Wang Changtian one of them? "My f*cking god."

Wang Changtian was suddenly left speechless. After a long while, he sighed: "Little brother, you still see things the most clearly. I regret it now."

"Brother, look on the bright side; this matter doesn't have much impact on Enlighten Media." Wei Jin offered words of comfort.

Although the five major distributors had exerted pressure together this time, the cinema chains weren't stupid. Distributors and producers are different; they aren't that easy to manipulate.

After this, the cinema chains won't hold a grudge; after all, making money is the absolute truth.

Wang Changtian clearly understood this principle too; he was just annoyed at being used as a pawn and wanted to find someone to vent to.

Wei Jin sympathetically chatted with him for a while longer before hanging up the phone.

"Brother, with Huayi and Xingmei withdrawing, is the matter settled?"

Although Liu Yifei is a homebody, she still likes reading gossip, and the recent revenue-sharing dispute had frequently made headlines.

"Yes, it's settled, and perhaps it's settled for the future as well." Wei Jin's tone was somewhat reflective.

"Settled for the future too?"

"Yes, this time the distributors all united, and the scale was so grand, yet they still failed. In the future, the revenue-sharing ratio will likely be hard to change; in all probability, these three models will be it."

"Three?" The young girl tilted her head, her face full of confusion.

"Yes, the original standard revenue-sharing model, the tiered model proposed by Huayi, and finally the total box office gambling model between me and the cinema chains."

"Then doesn't Xingmei's count? Isn't that quite popular in Hollywood?"

"Yifei, Xingmei's is completely different from Hollywood's."

Wei Jin held the girl in his arms and explained in detail.

Hollywood is indeed very popular with the Didi Fenzhang Moshi, but that is more for the sake of early box office, because their baseline for the decrease is very high.

Generally speaking, a film can get over 60% of the revenue share in the first week, 50% in the second, and so on; it mainly capitalizes on the early box office.

Some major IP films can even reach a revenue share of 70% or higher in the first week.

But Xingmei's model, which sacrifices revenue-sharing interests just to seek screening rates, has a more obvious sense of spite; as long as a producer isn't crazy, most wouldn't choose it.

"I see."

Seeing the girl's confused expression, Wei Jin didn't want to discuss this topic too much and instead asked about another matter.

"Yifei, how have you considered 'Flowers and Youth'?"

Liu Yifei shook her head: "Brother, forget it. My variety show sense is so poor. I'll definitely perform badly on the show; what if it affects the ratings?"

Liu Yifei has a deep understanding of herself; she is fine when getting along with familiar friends in private, but she can't let go in front of people she isn't very familiar with.

Not to mention reality variety shows, even when appearing on talk show programs, she often makes the host feel very awkward.

Regarding this, Wei Jin had a different view.

"Yifei, so-called variety show sense refers to an entertainer possessing a talent for comedy; actually, as long as you can let go, it's fine, and don't you think you actually have quite a talent for comedy? Hahaha."

"No way, I am clearly very ladylike."

Liu Yifei was somewhat shy and annoyed, and she rained a flurry of soft punches on Wei Jin.

"Look, do you have even a shred of a ladylike appearance right now?"

"Hmph, you're still talking, take this!"

"Hahaha."

(End of this chapter)