Chapter 114: Deal

When some veteran film buffs of later generations mention *Made in Hong Kong*, they refer to it as the signature work of Milkyway Image. It established Milkyway Image's reputation, solidified the team's creative style, and announced that the Hong Kong film industry had gained yet another ace creative team.

But in reality, that is all talk for after next year's Hong Kong Film Awards. Right now, after its release, the situation for *Made in Hong Kong* is dire.

"A terrible copycat work, *Made in Hong Kong* is a failure in both box office and word-of-mouth!"

"A hodgepodge of *Young and Dangerous* and *Run Luo La Run*, it's neither fish nor fowl!"

Johnnie To, who has the nickname "Cannon To" due to his explosive temper, threw the newspaper onto the table after reading the article and cursed angrily: "Copy your mother! We filmed this last year!"

Patrick Yau came over, pulled Johnnie To aside, and urged:

"Johnnie, cool your temper. These media outlets don't care about that; they just want to grab eyeballs!"

Then he sighed: "Who told *Run Luo La Run* to win awards and be released before us? There's no reasoning with that..."

Originally, after they finished filming *Made in Hong Kong*, they had already set the release date for March.

As it turned out, after the New Year, news came that *Run Luo La Run* had won two major awards in Berlin, and Sil-Metropole Organisation took advantage of the momentum to release *Run Luo La Run* on a large scale in Hong Kong.

You win if you win; it originally had nothing to do with Milkyway Image. But once the film was released, they discovered it was also a film with a segmented narrative structure.

The main gimmick of their *Made in Hong Kong* was precisely this point. Damn it, they had collided!

This left Milkyway Image in a dilemma, unsure if they should still proceed with the original release plan.

After waiting a week, they discovered that the box office for *Run Luo La Run* was actually quite good, grossing over 7 million in one week. For a film without a star-studded cast, this was already a very eye-catching result.

*Run Luo La Run* itself was filmed on location in Hong Kong, had the promotion of awards, and its cool style suited the tastes of young people, so even with Mandarin dialogue, it was quite popular. Although Hong Kong people don't speak Mandarin well, they can all understand it.

This gave Milkyway Image confidence, feeling that since *Run Luo La Run*, which also had a segmented narrative structure, was so popular, there was no reason *Made in Hong Kong* wouldn't be.

However, when they released it according to the original plan, they were met with a head-on blow.

First of all, the majority of the audience who came to see *Made in Hong Kong* were actually fans of the *Young and Dangerous* genre; after all, the film's own promotion was about watching how a thug becomes a big boss!

This group of viewers went into the cinema for gang fights and hot-blooded action; to put it bluntly, they were looking for a thrill. As a result, after watching for half the time, they were still confused and didn't understand what was being filmed at all. Halfway through, half the people were already cursing as they walked out. This left the film with terrible word-of-mouth, and the first-week box office was only a little over one million.

That would be fine; if the box office fails, we have artistic merit; it's an avant-garde experimental film.

But the bad thing was that they were released later than *Run Luo La Run*, so the title of "avant-garde exploration" naturally fell to the award-winning *Run Luo La Run*. They were branded as "copycats," which Cannon To could not accept, so he exploded in rage.

At this moment, the director, Wai Ka-fai, spoke up and apologized: "Brother To, I'm sorry!"

Johnnie To's anger had not yet subsided, and he shouted loudly: "Ah Fai, what are you apologizing for! I'm scolding these media outlets, it has nothing to do with you!"

Patrick Yau also said: "That's right, Brother Fai, you filmed it very well!"

Wai Ka-fai took off his glasses, shook his head with a bitter smile:

"With the same segmented narrative, *Run Luo La Run* can be experimental and exploratory while also being commercial, winning both acclaim and box office, yet I am scolded for not even being able to tell a story clearly. Of course, it's my problem!

I have watched *Run Luo La Run* more than once. If I can't beat them, I can't beat them. I am convinced. I have let everyone down, and I have disappointed everyone!"

*Run Luo La Run* was released for one month before being pulled, grossing 18.53 million at the box office, while *Made in Hong Kong* was forced to be pulled after two weeks, with less than 3 million. By comparison, it was truly miserable.

Johnnie To opened his mouth, wanting to comfort Wai Ka-fai by saying the audience didn't know how to appreciate it. But it still came back to that point: with *Run Luo La Run* right there, using the same narrative technique, why could they win both acclaim and box office?

This left Cannon To speechless, feeling extremely stifled.

……

Wu Yuchen has had quite a few international calls during this period, all because of *Run Luo La Run*.

At this moment, the person on the call with him is none other than Frank from Fox Searchlight:

"Hey, Wu, we at Fox Searchlight are willing to offer 8 million US dollars, and regarding the film shooting you mentioned, there is absolutely no problem. The company has already discussed it internally and can give you 15 million US dollars in production funds!"

"Sorry, Frank, although I really want to talk to you right now, you have to wait patiently for a while. You know, I have people from Sony sitting across from me right now."

"What? Didn't you say you were in China?"

"Yes, Sony's representatives have already arrived in Beijing, China, and are sitting in front of me. You know, Sony has a branch in our China."

Frank was just about to say something else when he heard Wu Yuchen say:

"Let's leave it at that for now, Frank. I can't keep guests who have traveled from afar waiting too long. Goodbye."

After finishing, Wu Yuchen hung up the phone and then smiled at the two people sitting across from him:

"Gentlemen, please forgive me. You also know that the response to *Run Luo La Run* after its release in Europe has been very good, and the phone calls have been endless~"

Wu Yuchen smiled, shook his phone, and then set it aside.

When *Run Luo La Run* won the award, many companies actually came knocking to discuss buying the rights, but Wu Yuchen only left contact information and then politely replied to everyone to talk again in one month.

He just wanted to wait until *Run Luo La Run* was released in Europe and achieved good results so he would have greater bargaining power. Looking at it now, he bet correctly.

A white man and an Asian man across from him smiled at the same time. The Asian face spoke: "I understand very well. Isn't that exactly why we are here?"

The white man said: "Wu Dao, was the person you were just talking to Fox? I suggest you don't hold much hope for Fox. I am sure that even if they buy it, they intend to pay in installments. Now all of Hollywood knows that Fox has been dragged into the quagmire by *Titanic*. Besides the high production costs, they also have to prepare a large sum for promotion, and their liquidity is very tight."

This white man directly undermined his peer, Fox, in front of Wu Yuchen, but what he said seemed to make a lot of sense. Fox's situation is indeed not very good right now, and they are cutting expenses in other areas, only recovering after the big ship is released.

"Mr. Pete, thank you for the reminder." Wu Yuchen said politely, and then sized up the two people in front of him.

Although Columbia was acquired by Sony, the helm has always been an American. Although these two people in front of him are both from Sony, one is responsible for global distribution and the other for Asian distribution, with this white man, Pete, as the lead.

Wu Yuchen pointed to the mobile blackboard that had been set up. On the large paper, figures were drawn and data was written. PPT and slide shows are not yet popular in the country, and Miracle Pictures hasn't used them either, so Wu Yuchen could only have people handwrite them instead.

"Gentlemen, this is the data for *Run Luo La Run* since its release in Europe for one month: 13.33 million in the first week, 11.41 million in the second week, 9.48 million in the third week, and 7.65 million in the fourth week. A total of 41.87 million, and the weekly decline is very small, all kept within 20%, fully possessing the conditions for long-term screening."

Wu Yuchen looked at the two, saw them nod in agreement, and then he had someone turn the blackboard to the next page and continued:

"This is the distribution box office data for *Pulp Fiction* that I found. The distribution time lasted for more than a year, with a total European box office of 108 million and a first-month box office of 53 million. Using this as a reference, the total European box office for *Run Luo La Run* can reach 80 million."

After finishing, Wu Yuchen smiled and said to Pete: "Therefore, I think it is very reasonable for me to estimate the American box office with an 80 million box office valuation, right?"

Pete smiled and then shook his finger:

"No, no, no, Wu, films cannot be simply applied to cases like this. The situations of *Run Luo La Run* and *Pulp Fiction* are very different.

First of all, even if *Run Luo La Run* is released for 1 year, I don't think it can reach over 80 million. I'll just say one point:

*Pulp Fiction* was shortlisted for the Oscars and received nominations for 7 awards, which won it considerable attention during its continuous release, and is also the reason it could be screened for over 1 year. And can *Run Luo La Run* be shortlisted for the Oscars?

I know the judges at the Academy very well. They are all old men who are already advanced in age, stubborn and nostalgic. They are very likely unable to accept your novel shooting techniques such as cartoon inserts!"

"Although you may not be able to accept it when I say this, the fact is just like this. I think its European box office might be at 60 million. If Europeans really like Luo La that much, there might be a small probability of reaching 70 million, just a small probability, a 5% possibility."

Pete pinched his thumb and index finger with his right hand to gesture. He hadn't stopped there and continued:

"This is the European box office, so let's talk about the North American box office. Wu, I don't know if you have been to America, but I want to tell you that America and Europe are completely different. America is far more conservative than Europeans.

In the eyes of Americans, unless it is a Hollywood star, otherwise, even if they are white European big stars, they are just like that in their eyes, let alone an Asian. Saying this might be a bit offensive, but the American film market is just like this.

So, even if *Run Luo La Run* can achieve 60 million at the box office in Europe, it might not even be half of that in America. I can only estimate it for you based on a 20 million box office."

After Pete finished speaking, he held up two fingers.

Wu Yuchen now had a bit of a new look at this guy. Although he knew the other party was bargaining, he had to admit in his heart that this guy was really telling the truth.

In fact, the original version of *Run Luo La Run* only had a box office of 10 million in America, so the other party estimating it at 20 million for him was already considered his gain.

However, Wu Yuchen couldn't say that. Now that he has the advantage of the European box office in hand, the negotiation must remain strong.

"Mr. Pete, if *Run Luo La Run* is so cheap in your eyes, then I think there is no need for us to continue talking. I might as well continue my call with Fox."

Wu Yuchen's face turned cold and he said lightly.

At this time, the Asian face next to him, who was the Japanese man Matsuda, smiled and said:

"Wu Dao, we have traveled thousands of miles to China, so we are still very sincere.

And regarding the *Frequency* script you mentioned on the phone, we at Sony have also read it, and it is indeed a very good project. We at Sony are interested in inviting you to go to Hollywood as a director to film it. Perhaps we will have many more collaborations in the future. You might as well state your price, perhaps both of us can be satisfied."

Pete also nodded and also showed a smile:

"Wu, I didn't mean to belittle *Run Luo La Run*. I personally like this film very much; it's quite cool! I just told you the truth about some situations in North America."

In fact, he was still very willing to buy *Run Luo La Run*. Even if the North American box office was only 20 million, with Sony's distribution capability, they could get 70% of the profit from the box office.

Don't be surprised; the Big Eight are now quite strong against cinema chains, especially Disney, which can even get more than 90% of the first-week box office!

You ask why cinemas are willing?

Because North American cinema chains make even more money selling popcorn, soda, and other snacks than from movie tickets, otherwise they wouldn't be suckers!

How did the name "popcorn blockbuster" come about? It's because Americans have the habit of eating popcorn when they go to the cinema.

And what Sony values more is actually the video tape and DVD disc rights of *Run Luo La Run*. Not being willing to go to the cinema doesn't mean the audience isn't willing to rent discs to watch. The cost of a disc is even only 1% of the selling price. This thing is basically pure profit for film companies. Many films with poor box office rely on discs to recoup their costs, and the long-term revenue is very considerable.

Wu Yuchen spoke:

"I have already packaged and sold the video tape, DVD, and other disc rights, television rights, and airline rights for Europe to EMI for 8 million US dollars. Don't tell me that DVDs are not easy to sell. Many Hong Kong films have very good disc sales in North America. As far as I know, Jackie Chan is very popular in the disc market.

I wonder how much Mr. Pete is prepared to offer me?"

In fact, Wu Yuchen also felt emotional in his heart. Jackie Chan's *Rush Hour* hasn't been released yet, otherwise, he could directly use this example to retort that a Chinese protagonist can also directly gross 140 million at the North American box office.

Pete raised his eyebrows upon hearing this. He felt that EMI had made a huge profit. Based on the European box office situation of *Run Luo La Run*, the European disc market should be 30 million. If you add television rights, airline rights, soundtracks, peripherals, etc., then even after deducting the 8 million copyright fee given to Wu Yuchen, EMI might be able to make a net profit of over 30 million.

With the European market situation right there, it was not easy for him to press the price too low, otherwise, the other party would turn around and go to Fox or other companies, wouldn't he have made the trip for nothing?

Moreover, he was actually still holding expectations in his heart. If *Run Luo La Run* could create a miracle in North America and gross 40 or 50 million, then that would really be a huge profit.

"All rights in North America packaged, 10 million US dollars, paid in one lump sum."

Seeing Wu Yuchen frown, he immediately said:

"Wu, this is a very sincere price. I can tell you responsibly that even if you go to the other Hollywood companies in turn, no one will offer a higher price. This is our tacit understanding, do you understand?"

Wu Yuchen understood now. Although the Hollywood Big Eight have competition, it is impossible for them to let outsiders set prices at will to raise them. Once they reach a certain degree of competition, they will maintain a tacit understanding.

Wu Yuchen was silent for a moment, then turned to look at Matsuda, who had been smiling: "Mr. Matsuda, what about the rights for the Asian region?"

Matsuda continued to maintain his smile and spoke: "Wu Dao, I think there is an old rule for this. The box office for *Run Luo La Run* in Hong Kong is 18 million Hong Kong dollars, and I can spend 18 million Hong Kong dollars to buy the Asian rights. Haven't previous Hong Kong films all been like this?"

Wu Yuchen shook his head upon hearing this:

"It's different. I have the Berlin award, and the popularity of *Run Luo La Run* in Europe will be very conducive to its promotion in Asia. 18 million Hong Kong dollars is only 2 million US dollars, which is too little for all rights. If it's at this price, I might as well go to each regional distributor to negotiate separately."

Matsuda pondered for a moment. The situation of *Run Luo La Run* is indeed special. With such good results in Europe, given Asia's attitude of admiring the strong in Europe and America, it is indeed very easy to attract viewers.

"Wu Dao, 3 million US dollars, this is my limit."

Hearing this price, Wu Yuchen nodded, thinking to himself that it was fortunate that the financial crisis sweeping Asia had not yet broken out, and the economic situation in many parts of Asia was still looking prosperous, otherwise the Matsuda in front of him would definitely not have quoted this price.

Wu Yuchen was quite satisfied with 3 million and nodded at him with a smile. Then he looked at Pete again: "Mr. Pete, global rights for regions other than Europe, a total of 15 million."

After finishing, Wu Yuchen stopped talking.

Pete and Matsuda looked at each other. This means 10 million for North America, 3 million for Asia, and 2 million for other regions such as South America, Australia, and Africa combined.

Pete thought for a while. In fact, Australia is okay, and the entire Americas is also their backyard, Africa... but he also knew that the other party could not sell them separately. With their Sony's distribution capability, they couldn't lose money anyway, and they could earn it back just from video tapes and discs.

Pete reached out and shook hands with Wu Yuchen: "Deal!" ===== CHAPTER 115 =====