Chapter 2124: The Secret of Hollywood

The landscape of Hollywood has always been firmly controlled by the production companies.

However, in recent years, a series of personnel upheavals in Hollywood, coupled with the dual impact of new media and high technology, have led to an intensifying struggle between traditional business models and new ones among mainstream American theater chains. They formulated and implemented a new agreement, the direct distribution deal, which instantly strained relations between theaters and mainstream Hollywood studios.

Through the direct distribution deal, theaters could bypass mainstream studios and negotiate directly with independent production companies and book films with independent producers, without studio interference, thereby securing more favorable returns.

Moreover, independent films have increasingly gained favor with the Oscars. According to statistics, a film nominated for an Oscar can generate an additional $30 million in box office revenue, and if it ultimately wins an Oscar, revenue increases by another $20 million or so—the benefits are clearly substantial.

From this perspective, independent production companies are on the rise, occupying an important position in the new Hollywood landscape.

Under these circumstances, Zhao Fusheng's decision to cooperate with Disney was based on his own considerations.

In recent years, or rather starting this year, mainstream independent production companies in Hollywood will become strong competitors to the Big Six studios, including Lionsgate, Relativity Media, and Legendary Pictures. These companies will attract Chinese capital.

Future Films could fully cooperate with these companies.

But Marvel is different.

Relying on superhero copyrights and merchandise to build the massive Marvel Universe IP, Zhao Fusheng could not pin his hopes on independent film production companies.

His target could only be the Big Six studios.

Among these companies, Disney is undoubtedly the most ambitious.

"So, what are your plans next?"

Zhao Fusheng looked at Scarlett Johansson and Robert Downey Jr.

This was the moment for them to show their stance.

The two exchanged glances. Scarlett Johansson smiled slightly and spoke first: "Zhao, I trust you. Whatever you want me to do, I'm in."

What a spoonful of dog food!

A million alpacas stampeded through Robert Downey Jr.'s mind.

He had long heard that the relationship between Scarlett Johansson and Zhao Fusheng was not simple, and now, sure enough, she was feeding him dog food right in front of him.

Zhao Fusheng smiled and looked at Robert Downey Jr.: "Robert, what about you?"

"Dear sir, my current achievements are all thanks to your help. So, I am willing to stand by your side."

Robert Downey Jr. did not hesitate for a moment and said seriously.

He wasn't stupid. If even Marvel's management and Disney had been persuaded, what could he say?

"That's good. I believe we will create miracles together."

Zhao Fusheng said with a smile.

But in his heart, he thought otherwise.

Zhao Fusheng hoped that one day he could control the winds and rains of Hollywood—only then would he truly succeed.

...

...

After dinner, the group drove toward Hollywood.

Los Angeles is a city that never sleeps; the later it gets, the more entertainment options there are.

Moreover, Zhao Fusheng was curious to see what Hollywood looked like under the night sky.

To be honest, in the over a hundred years of Hollywood's development, the history of the major studios itself is a compelling story.

From the perspective of Hollywood's structure, it has always experienced cycles of the so-called "Big Six," "Big Five," or even the earliest "Big Eight." Such changes are not unprecedented.

In the earliest Golden Age of Hollywood, there were the "Big Five": MGM, 20th Century Fox, RKO, Warner Bros., and Paramount. Later, with the rise of Columbia, Disney, and Universal, the "Big Five" became the "Big Eight."

Later, RKO Pictures withdrew from the film industry in the 1950s, shifting to radio and television. In the 1980s, United Artists merged into MGM, becoming MGM/UA Entertainment Company.

It wasn't until 2005 that John Woo's film "Windtalkers" crippled MGM, and Sony took the opportunity to acquire MGM, establishing the seemingly stable Big Six structure.

Of course, not long after, with Disney's acquisition of 20th Century Fox, Hollywood would return to the "Big Five."

The reason these companies control Hollywood is that their film distribution companies account for over 90% of North American box office revenue.

The distribution companies or distribution networks they control each have their own niche brands. For example, there are distributors focused on art films, like Fox Searchlight Pictures under Fox Film Corporation, or genre film distributors, like Screen Gems under Sony Pictures Entertainment.

Due to the market segmentation by the giants, some companies that originally focused on such film distribution have begun to hear news of forced dissolution or acquisition starting this year.

Even the top stars and top directors, unless they reach the level of George Lucas or Steven Spielberg, have to bow and scrape before the Big Six studios.

Artists, in the end, are commodities.

This principle holds true everywhere.

"Zhao, do you like movies?"

Sitting in Zhao Fusheng's car, Scarlett Johansson asked curiously.

Zhao Fusheng did not ride alone with her; instead, he had Liu Yiming arrange for a stretch limousine, and he rode with Robert Downey Jr. and Scarlett Johansson.

"Like?"

Zhao Fusheng smiled at the question, gently swirling the red wine glass in his hand. The wine rippled in the glass, stirring up waves.

After a long pause, Zhao Fusheng spoke: "Not particularly. For me, movies are a kind of business. I might enjoy watching a certain film, but I know better what that film can bring me."

Scarlett Johansson was silent. She hadn't expected Zhao Fusheng to answer like that.

She had thought he might fabricate an answer for her.

But clearly, Zhao Fusheng was not that kind of person.

"Sir, I heard you have a film company in China?"

Robert Downey Jr., sensing the slight awkwardness, smiled and said, "If there's a chance, could you give me an opportunity?"

"No."

Zhao Fusheng shook his head directly: "You're too expensive, haha."

"Expensive?"

Robert Downey Jr. looked at Zhao Fusheng in surprise, clearly not understanding his words.

Zhao Fusheng shrugged: "You don't know, in our country now, a film with an investment of over $20 million is considered a big production."

$20 million?

Scarlett and Downey were both stunned. They really hadn't expected film production costs in China to be so low.

Yes.

In Hollywood, an investment of $20-30 million is only considered a medium-budget production.

This is why the film giants today hold even greater power.

Today, Hollywood's film giants often appear as behind-the-scenes investors for actual production companies or as distributors of films.

They do not participate in film production but only acquire the distribution rights.

This is the most frightening aspect.

Professional giants do not focus their efforts on film production; instead, they concentrate on film project development, film budget financing, film distribution marketing, and film acquisition.

Overall, in Hollywood's vertical industrial chain of production, distribution, and exhibition, the core is not content production or manufacturing, nor is it the scale of exhibition capacity at the exhibition end, but distribution—the link connecting content and consumption.

Distribution is the core competitiveness, the heart of the Hollywood game.

The secret of distribution is that the Big Six have always produced and distributed their own films.

After decades of growth, the giants not only monopolize the distribution rights of their own films but also use their control over blockbusters to "intimidate" theaters. In the competition for the same release period, films distributed by the giants receive more theater support and promotional support, thereby squeezing out independent producers.

Under such a market structure, independent producers are forced to choose the giants as their distributors.

In short, no matter how hard you try, in the end, they stand at the top, looking down on you.

This is precisely why Zhao Fusheng chose Disney as his partner.

In fact, if not for the fact that Zhao Fusheng himself was very wealthy, preventing Disney from playing underhanded tactics to deal with Marvel, they might have acted long ago.

Fortunately, Zhao Fusheng is a super-rich man, which forces Disney to consider his thoughts.