Chapter 323: Toward the New Century

The conference hall was spacious and grand, brightly lit, with a red carpet on the floor and national and party flags displayed on either side at the top of the stage.

The whole atmosphere looked solemn and dignified!

Sitting in front of Fang Hong were the heads of the Propaganda Department, Cultural Department (Bureau, SARFT Bureau), and state-owned film studios from every province, autonomous region, and municipality directly under the central government.

He also spotted Zhang Hongsen, who turned and spotted him too; their eyes met briefly, and everything was conveyed without words.

At present, the Film Bureau was still a subordinate department under SARFT and had not been spun off, so its rank was not that high.

However, with the development of the times, more and more people were watching movies, and the Film Bureau's standing would become increasingly prominent—after all, its output share was exploding year after year.

Film itself is an important cultural component!

Zhang Hongsen seemed to want to say something to Fang Hong, but clearly the occasion wasn't appropriate—it wasn't the time to chat.

This person would be promoted to bureau director this year, his position climbing higher and higher.

In any case, many people would be promoted this year; where some rose, others retired. For example, Zuoshandiao would retire after this year—it was a great transformation of the era.

In the future film market, it wouldn't matter whether China Film Group distributed or not—the market would decide.

"Here, this is for you." Chen Zhixi handed Fang Hong a notebook and a gel pen.

"Huh? Do we need it?" Fang Hong was surprised.

"Just for show. When the leaders are speaking up on stage, you have to move your pen at least—otherwise when the leader looks your way and you're doing nothing, how awkward would that be?" Chen Zhixi said.

Fang Hong understood what she meant. He looked around and found that most people had brought paper and pens; Song Ge next to him had them too.

When everyone is taking notes and you're just sitting there at a loss, you'll look really awkward.

Song Ge was the one who served as Chairman at BJ Culture and invested in Wolf Warrior 2, causing BJ Culture's market cap to soar by tens of billions.

Then he frantically cashed out and committed financial fraud, leading to internal strife in the company, massive losses, and enormous debt.

However, BJ Culture hadn't been established yet, and this person was currently serving as General Manager at Wanda Pictures.

He had worked at many companies—Perfect World, Wanda—and would leave this year; later, Motianlun Culture would also be his.

The man did have ability; otherwise he wouldn't have become CEO or General Manager at every company he joined.

"Director Fang is young and accomplished—let's find a chance to work together." Song Ge smiled.

"Mm, we'll see if there's a chance." Fang Hong brushed him off.

He wouldn't cooperate with someone who played film-and-TV capital games—cash out like crazy the moment a film takes off, ruining a publicly listed company worth over ten billion.

He fattened himself at everyone else's expense; their level of thinking was different, they couldn't play together.

The film market was like this—a film took at least several months from production to release, a whole year, and nobody really thought about running things properly. Fang Hong was the odd one out.

Song Ge saw his undisguised brush-off and lost interest too.

At the moment the leaders hadn't arrived yet, and the venue buzzed with murmuring conversation.

Once the leaders arrived, the whole hall fell silent and all eyes focused.

The leaders walked out from backstage, appearing on stage in a line, each one looking bright and full of spirit.

As if pre-arranged, they walked behind their respective seats, then sat down, facing the audience below with relaxed postures.

Anyone who followed national affairs and watched the news regularly would know that the leaders attending this time were of quite a high rank.

All were ministerial-level leaders.

At present, the General Administration of Press and Publication had not yet been abolished.

Each leader had a microphone in front of them; the Propaganda Department leader wore glasses and scanned the audience below.

"Today I see many young faces, which gives me great comfort—it proves that our country's film and television cause has worthy successors and is flourishing."

The Propaganda Department leader said casually; the audience below was silent, wanting to flatter him by saying it was all thanks to the leaders' guidance, but this wasn't the moment to speak.

That leader glanced at his colleagues, saw they were ready, and the meeting officially began.

The leaders took up their manuscripts and began their speeches for this conference.

The opening was bound to be grand narrative: "To meet the people's growing spiritual and cultural needs, film workers must strengthen their sense of historical responsibility, work with one heart and one mind, forge ahead, and create more fine works worthy of the people and the times, welcoming the new century with outstanding achievements."

After the grand narrative, they began reporting last year's film and television results—how many films were released, how much box office was earned, how many cinemas were added.

How many TV dramas were completed, how many were realistic-themed, how many historical-themed, how many major-themed, and so on.

The overall creative production trend was steady; the situation of supply exceeding demand had been initially reversed, and from now on it would be demand exceeding supply.

Very good! Stable and improving!

The leaders up above spoke slowly, while Fang Hong and the people below listened slowly; some took notes, while others just put on a show of taking notes to humor the leaders.

Fang Hong was one of them—scribbling nonsense on paper, actually writing nothing; Chen Zhixi and Song Ge beside him were the same.

Only afterward did they get to the main topic, releasing several important signals.

First: the existing General Administration of Press and Publication and SARFT would be merged to form a new administrative body: the State Administration of Press, Publication, Radio, Film and Television.

This adjustment was meant to strengthen functions, signaling that film and television intellectual property protection would become stricter; many film and TV platforms without proper copyright would be cleared out or taken down.

This was good for the prosperity of film and television, because copyright would become more valuable, and it would also end the era of demons dancing wildly—resources would concentrate at the top.

In other words, without the strength of a BAT-level company, don't even think about running a film and TV platform—you couldn't afford the copyright.

Of course, the era when Wangyi could watch film and TV for free like before was also slowly ending; from now on, you'd have to pay for membership.

Second: the regulatory system for the film industry would be elevated to the level of national law—this was only a draft.???? Third: the film censorship system—the final review function for films would be delegated to provincial-level film administrative departments, though it still had to be reported to the General Administration for review and filing.

This was also why film and TV companies were springing up like bamboo shoots after rain everywhere—films could now be reviewed locally.

No longer limited to review by the General Administration alone.

Complementing this system was the delegation of the film distribution operating permit system—film distribution units could apply to the local authorities of each province or municipality.

If it crossed provinces or municipalities directly under the central government, the application had to go up to the General Administration.

The distribution functions of established players like Huayi, Enlight Pictures, Bona, and China Film Group would be weakened, shifting toward market-based competition.

In other words, as long as you had the ability and the channels, you could apply for a film distribution permit—whether they distributed or not didn't matter.

This was also another reason capital flooded in later, with a single film's distribution handled by over a dozen companies.

Because as long as a company is qualified, it can apply for a distribution permit!

Fourth is the cinema distribution system. This made Fang Hong involuntarily straighten his back and focus his attention — this was the system he cared about most, namely that cinemas would be opened up to capital.

In other words, from now on one could merge and acquire other cinemas.

Previously mergers were not allowed — one could only build one's own, and there were strict requirements on acquisitions.

The above stated it this way: eight or more theaters may initiate the formation of a provincial cinema chain; ten theaters may initiate the formation of a cross-provincial cinema chain.

A single cinema may only join one chain; after the contract expires, it may make a new choice.

Same as before — a provincial chain only needs to be reported and approved locally; if it's cross-provincial, it must be reported to the General Administration for approval.

At the same time it also said that domestic companies, enterprises, and other economic organizations as well as individuals are encouraged to invest in building and renovating cinemas and to operate film screening businesses.

Of course, limited to domestic-capital companies only.

This was the beginning of the later wave of cinema mergers and acquisitions, though it hadn't been officially promulgated yet — they were just giving them a heads-up. Otherwise this year's film and television stocks wouldn't have soared so wildly, soaring like crazy.

Only because the higher-ups encouraged them to run cinemas — those restrictions were nothing to capital.

Afterwards they also talked about the film screening revenue-sharing system, which was the revenue-sharing system agreed upon earlier in the year, restated here for clarity.

Then they talked about the cultural industry revitalization plan, tax incentive policies, and so on — a whole series of good news.

Tax incentives, encouraging cinemas, revitalization plans, decentralization of censorship, copyright standardization — all the policies the leaders mentioned were entirely favorable to the film industry.

The higher-ups had the awareness to get the film industry going; this was good news for the entire film industry.

The bosses of those film and television companies all showed varying degrees of delight on their faces — especially the heads of the two listed companies, Enlight's Wang Changtian and Huayi Xiao Wang, whose delight simply could not be concealed.

Only because they were film companies, and listed ones at that — every clause in this series was favorable to the film market.

Once this wind got out, wouldn't their stock prices take off?

Other unlisted companies were rather depressed — there were benefits for them, but limited, only because they couldn't rapidly accumulate capital, expand scale, or expand their business.

Yu Pangzi was even more depressed; he even regretted listing in the United States, unable to raise funds, because the American public wouldn't buy his company's stock.

They had the Six Majors — where did Bona come from, some random no-name?

Right now there aren't many film and television companies listed on A-shares — just a few like Huayi, Enlight, Ciwen, and Huace.

Ciwen and Huace are in TV dramas; the benefits to them are limited. TV dramas will naturally take off on their own — no need to worry.

The other companies are all unlisted. There are benefits, and filmmaking is freer now, but they can't quickly monetize.

Wanda Pictures only went public in 2015; the well-known film and television companies basically all listed in those one or two years — China Film Group too.

That is, the two years when the system was promulgated and continuously refined.

But Fang Hong's Jade Rabbit had no plans to go public, so he felt nothing; he was only interested in cinemas.

Production, distribution, and terminals could be linked together.

For production there's Jade Rabbit; for distribution there's Rabbit Ticketing and the Chang'e Technology video platform; for terminals there are cinemas — forming a perfect closed loop.

After a cinema's theatrical run ends, Chang'e Technology's video platform can also serve as a mobile terminal — simply perfect.

Every step Fang Hong took was building his own self-circulating system; he didn't plan to rely on others, only on his own industries.

Mainly because he'd been hurt by Tencent and Wanda — the people working there all lorded it over him, not putting him in their eyes at all.

This is what happens when you don't have your own industry chain — having money doesn't help. What's the use of comparing money? They can borrow several hundred billion from banks — can he?

Borrowing a few billion would already be impressive, and even that requires checking his repayment ability.

"It is hoped that the broad masses of film workers will pool their wisdom and efforts, unite as one, and strive to create more film masterpieces with Chinese style and Chinese flair, propelling Chinese films toward the world and toward the new century."

Finally the leaders ended with this sentence, and the venue erupted in waves of enthusiastic applause — "Clap clap clap clap!"

The meeting lasted one or two hours before the specific future measures were fully explained.

Of course, many were drafts — just a direction; the detailed rules still needed to be refined based on the market.

For example, there were no specific regulations yet for the future supervision of web dramas, web variety shows, web films, livestreaming, short videos, and so on.

Anyway, Fang Hong knew that web dramas could now feature "ghosts" — that was for sure.

"Next, frontline film workers please raise your hands to speak — tell us your difficulties and needs." The SARFT leader said into the microphone.

Once they finished, it was time for the frontline film workers below to speak — after all, they were the frontline, and they needed to hear the opinions of those below.

Of course, hearing was hearing — whether to adopt it was another matter.

(End of chapter)