Huayu Entertainment 1995 started with hijacking.

Chapter 151 Huge Income
Wu Yuchen smiled as he looked at the group of Chinese filmmakers in front of him. After he rose to fame in Hollywood, these former big names from Hong Kong also took the initiative to come over.

You could say they came to Hollywood to curry favor, or that they instinctively banded together for mutual support. This is very common in Hollywood, with groups like the Italians and the Irish, and the most famous of them all are the Jews.
None of them lingered with Wu Yuchen for long, after all, he was one of the main characters at the banquet, and other people from Hollywood kept coming to chat with him, including some ambitious beauties.

At this moment, Jackie Chan couldn't help but feel envious as he watched Wu Yu-chen being flirted with by a group of blonde, blue-eyed beauties. He actually received the same treatment in Hong Kong, constantly surrounded by beautiful women, but it was different here—this was Hollywood, after all. Especially in Hong Kong, a region long dominated by Westerners, conquering Western beauties clearly brought a greater psychological thrill.

At this moment, Zhang Jiazhen smiled at Cheng Long and said, "Jackie, you also envy others?"

Jackie Chan shook his head and sighed, "I became famous at 24, earned millions in film fees, and even became a director. I thought I had had a very successful career, but seeing Director Wu's achievements now, it's truly a case of the younger generation surpassing the older one!"

"What do you mean by 'old guard'? Jackie, you're still in your prime. The industry in Hong Kong is in a slump right now. You'll definitely make a name for yourself in Hollywood."

Upon hearing this, Jackie Chan smiled but didn't say much. This was his third attempt to break into Hollywood, and his previous two failures had taught him that Hollywood wasn't easy, so he wasn't too optimistic this time.

The Asian financial crisis of 97 hit the entire Asian economy, and naturally had a great impact on the entertainment industry. Without money, they couldn't work, so a large number of Hong Kong artists chose to flee abroad. There were two main directions: one group went north to the mainland, and the other group chose to go to Hollywood to make a living.

In fact, most famous Hong Kong actors initially chose Hollywood, such as Tsui Hark, Sammo Hung, and Chen Kexin, but they all failed. Don't be fooled by Chen Kexin's later pronouncements about her Greater China film aspirations and the persona she cultivated; it was actually a reluctant choice after her dismal return from Hollywood—it was all about making money!

Only a handful of Chinese filmmakers have truly made it big in Hollywood.

First, there's Wu Baige. After the release of "Face/Off" last year, he became a top-tier director in Hollywood, and before Wu Yuchen arrived, he was the highest-ranking Chinese filmmaker in Hollywood. However, with the rising momentum of Wu Yuchen, this leading figure among Chinese filmmakers in Hollywood may be about to change.

Wu Baige couldn't come this time; he's currently filming his new movie, "The Ultimate Black Jack." Producer Zhang Jiazhen conveyed his congratulations to Wu Yuchen on his behalf.

Then there's Li An. His future achievements in Hollywood need no introduction; everyone knows about films like *Crouching Tiger, Hidden Dragon*, *Brokeback Mountain*, and *Life of Pi*. He's currently filming *Ride with the Devil* with Tobey Maguire, who will play Spider-Man in the future. He also called to congratulate Li An earlier.

When talking about Li An, one must mention Chow Yun-fat. If it weren't for Li An's "Crouching Tiger, Hidden Dragon," Chow Yun-fat's entire Hollywood journey would have been a complete failure. The opportunity for "Crouching Tiger, Hidden Dragon" was actually a lucky break for Jet Li. However, since he just entered Hollywood, he has received help from Wu Baige and has gotten quite a few opportunities, although they all ended in failure.

Compared to Chow Yun-fat, Jet Li faced much greater difficulties in entering Hollywood, having to rely entirely on his own efforts. However, the Kung Fu Emperor's action scenes were undeniably superb, delivering impressive performances that captivated North American audiences. While his box office results weren't particularly outstanding, he was very successful in the DVD market, thus maintaining a stable position in Hollywood's second tier or higher.

Then we come to Jackie Chan. He's here to do post-production work on *Rush Hour*. Because of the success of *Rumble in the Bronx* a couple of years ago, he landed the lead role right away in Hollywood, proving that the combination of hard work and action-comedy works worldwide. He will become one of the most influential Chinese actors globally.

Among female celebrities, only Yang Ziqiong has made a name for herself by playing a Bond girl in "Tomorrow Never Dies" last year. Gong Li and Zhang Ziyi came later.

Many movie fans debate who the most influential Chinese star is, but there's really no need to argue; the official actions speak for themselves. Back in 2000, Jackie Chan was chosen as the first image ambassador for Beijing's bid to host the Olympics. Do you think the official authorities would joke about something like this?
……

Inside a conference room, a negotiation is underway between Wu Yuchen and Fox.

Yesterday, everyone was all smiles and chatting happily at the celebration party, but today they're sitting across from each other, arguing over their interests. That's Hollywood for you.

"The benchmark for negotiating 'Phone Booth' cannot be based on the box office of 160 million yuan. Although the daily box office has now dropped below one million yuan, the film can still stay in theaters for more than two months. According to our calculations, this can generate at least 20 million yuan in box office revenue!"

"Oh no, Director Wu, you're too optimistic. 2000 million is clearly unlikely. Those who have seen the movie obviously won't come back for a second time. Theaters have already started to drastically reduce the number of screenings. The number of movies showing has dropped below 800, and it will continue to decrease..."

Finally, after a heated exchange, the two sides tentatively set the total North American box office for "Phone Booth" at $1.7 million, and this was only the beginning of the negotiations.

"With a North American box office of $1.7 million, we'll follow our usual practice and set the overseas box office at $1.7 million as well..."

Before the Fox representative could finish speaking, producer James interrupted him again:
"No, that's completely unreasonable! The overseas box office of 'Phone Booth' is definitely more than 170 million. 'Titanic' has already grossed over 500 million in North America and over 1 billion overseas. You should at least calculate it at 340 million for us!"

"Fuck! This is impossible! Titanic had top-level Hollywood production and effects, what does Phone Booth have?! You only have a dilapidated phone booth!"

“We have Leonardo! We have Stallone! Leonardo is wildly popular all over the world, and Stallone is known to everyone in every corner of the globe. He's a star with global appeal! If you combine the two of them, the overseas box office will definitely exceed the North American domestic box office! We can give Fox some discounts; you have to calculate it based on 3 million!”

"You greedy bastard, you're dreaming! Anything is possible in dreams! You son of a bitch!"

Around this point, another war of words broke out between the two sides. Elegance and politeness were nowhere to be found; real business battles and negotiations are just that simple and unpretentious.

Ultimately, Fox capped the overseas box office at $2.2 million, refusing to add any more.

"Based on 2.2 million, Fox can make half, which is 1.1 million. We need 7000 million, otherwise we'll go to Sony or Warner!"

"Are you out of your mind? Do you think our publicity and distribution are free? We incur huge labor and marketing costs! 7000 million is simply impossible. Neither Warner nor Sony would give you that price. 3000 million!"

Yes, the two sides are currently discussing overseas screening rights. The film industry in North America is already very mature, and the data on theater chains is quite clear, so the revenue sharing in this area is very straightforward.

Overseas distribution is a different story. Take the Harry Potter series, which is so profitable. Every film in the series has grossed no less than $6 million overseas. But in order not to share profits with the creators, Warner Bros. can still make the books look like they're losing money, and you can't complain.

Therefore, it is currently unrealistic to expect to participate in revenue sharing from overseas box office revenue. Most films are sold to major studios at a fixed price.

Based on the box office of 2.2 million, Fox should receive about 45% of the overseas revenue, which is roughly 1 million. Miracle Films, on the other hand, is naturally trying to drive up the price as much as possible, and the two sides are fiercely competing over this issue.

The reason for talking to Fox is twofold: firstly, they are currently cooperating, and secondly, as the North American distributor, Fox can actually hold back the North American box office revenue share of "Phone Booth." It's not that they won't give it to you, but they will delay the payment. If things fall apart, they might hold you back for two or three years.

Such incidents are not uncommon in Hollywood. For example, Peter Jackson, the director of "The Lord of the Rings," sued the production company for $7500 million shortfall due to delays.

Of course, Fox won't go too far. If things really fall apart, they won't get the overseas distribution rights either, and the other party can find other distributors. Therefore, they still hope to negotiate a price.

Ultimately, the overseas film distribution rights were negotiated with Fox for $4500 million. After deducting costs, Fox could earn a net profit of over $3000 million from this overseas distribution, which was satisfactory.

Then there are other copyrights, the biggest being the copyrights for discs. Actually, "discs" should be a general term, including VHS tapes, VCDs, and DVDs. Currently, VHS tapes are still the main source of profit. DVDs were only invented two years ago, but their development momentum is very strong.

Fox ultimately offered $5000 million for the global rights to the disc.

Don't think this is an exaggeration. Take Jackie Chan's "Rush Hour" as an example. Its revenue from VHS video rentals in North America alone was $7160 million. The net profit that "Rush Hour" brought to the studio from DVDs alone was at least $1 million, not to mention box office and other revenue. That's why Jackie Chan was so popular in Hollywood during those years.

The main issue with DVDs is distribution channels. Production costs are low, but major studios have well-established distribution networks. So, despite Fox offering $5000 million, "Phone Booth," starring Leonardo DiCaprio and Sylvester Stallone, earned them much more globally. That's why DVDs are often said to be a lifeline for major studios; even if a film fails at the box office, DVD sales can recoup losses.

As for other television rights, aviation rights, and miscellaneous items, they are all sold as a package deal for 1000 million.

These add up to a total of 1.05 million. Of course, Fox wouldn't pay such a large sum all at once. Instead, after signing the contract, a 30 million deposit would be paid first, and the remaining balance would be paid in two installments after three months and six months.

After everything was finally settled, the Fox representative shook hands with Wu Yuchen: "Director Wu, congratulations on becoming a billionaire!"

"Thank you, Fox will earn just as much as I will. I would be even happier if you could bring in the North American box office revenue sooner!" Wu Yuchen said with a smile.

"Oh, that's not up to us. We can only settle accounts after the theaters have completely finished showing the film," the Fox representative shrugged.

Yes, we haven't even included the North American box office revenue share yet.

However, we can also do a rough calculation, based on a box office of 1.7 million.

Miracle Films is just a newly established small company, and it only had some bargaining power because of Sylvester Stallone and Leonardo DiCaprio's involvement in "Phone Booth." Therefore, its box office share is unlikely to reach the staggering 90% that Disney animated films receive in their opening weekend.

Fox secured a 65% rating for "Phone Booth" in its first week, 60% in its second week, and then declined.

However, since the box office revenue from the first two weeks accounted for the majority, the production company was able to receive approximately 60% of the total box office revenue, which is 1.02 million yuan.

First, we need to deduct Fox's 10% distribution fee, which is 10% of the box office revenue, or 1700 million. That leaves 8500 million.

Then, we need to deduct Fox's advertising expenses during this release period, which amounted to 3200 million.

That's right, it was $3200 million in advertising expenses. It's obvious that Fox inflated the figures, but every single expense is clear. Just to get on "The Oprah Winfrey Show," they spent $700 million on public relations, plus a lot of subsequent television and newspaper advertising.

That's why distribution is king. As long as you don't do anything reckless, you'll always be invincible.

Then the production company received 5300 million. Of this, Wu Yuchen's personal director's fee of 500 million had to be paid first, leaving 4800 million. This is the approximate figure for Miracle Films' North American box office revenue share.

Wu Yuchen calculated that, including the newly signed contract, "Phone Booth" could bring Miracle Films a total of $1.53 million.

He had previously remarked that Pulp Fiction brought Harvey Weinstein's Miramax hundreds of millions in revenue, and now he has achieved that same feat.

However, the thought of the enormous taxes he would have to pay made Wu Yuchen's heart ache. No wonder so many people try every means to legally avoid taxes; watching large sums of greenbacks slip through their fingers is indeed painful.

However, in the US, if you dare to evade taxes, you're in big trouble. The IRS is a more terrifying force than the FBI and CIA.

Wu Yuchen couldn't help but have an idea: when making his next film, he must inflate the budget, adding every possible expense to the production team to minimize his contribution to the IRS. This is also the most direct way for Hollywood companies to avoid taxes—by making their books appear to show a loss.

Oh, we could also set up a charitable foundation in the future, donating money specifically to do charity work in China. You can't say that only doing charity in Africa counts as charity, but not in China. There are so many impoverished areas in China!

This is all the tricks he can think of. It seems that the most urgent thing is to find a financial officer as soon as possible to help the company and himself legally avoid taxes in the United States.

……

The following day, March 23, in the evening, Hollywood stars gathered in front of the Temple Theatre in Los Angeles, with media reporters and screaming audiences crowding both sides of the red carpet.

From the live broadcast on ABC, you can see the red carpet emcee introducing each of the celebrities who are slowly walking down the red carpet.

"Wow, now walking towards us on the red carpet is director Wu Yuchen from China. He has recently released two box office hits, 'Phone Booth' and 'Frequency'."

Seeing Wu Yuchen, dressed in a sharp black suit, walk over, the emcee went to greet him:
"Director Wu, welcome to the Oscars! How does it feel to attend the Oscars for the first time?"

"Fantastic! The best audience, the best media, the best filmmakers, and the best films all together! Everything was absolutely wonderful!"

Wu Yuchen smiled and praised, "Making money on American soil naturally requires praising them."

"Wu, which movie or actor do you think will win the award tonight?" the emcee asked.

“Without a doubt, Titanic,” Wu Yuchen answered firmly.

Titanic garnered 14 nominations at this year's Oscars, tying All About Eve's record.

Wu Yuchen then added, "As for the actors, it's a pity that Leonardo DiCaprio wasn't selected. In my opinion, he's a really good actor!"

Wu Yuchen looked regretful and spoke very sincerely, expressing his indignation on behalf of Leonardo DiCaprio, after all, DiCaprio had helped him earn so much money this time.

Oscar judges have always been biased against young, handsome actors. Don't expect handsome actors like Tom Cruise and Leonardo DiCaprio to win awards when they are young. This time, DiCaprio didn't even get a Best Actor nomination.

"Okay, Wu, thank you so much for the interview. Have a wonderful evening!"

Seeing that someone was coming from behind, the host quickly ended the interview with Wu Yuchen.

Wu Yuchen looked at the red carpet and the crowd that had already gathered in the theater lobby behind him. A constellation of stars, the actresses all dressed to the nines, each vying to outshine the others on the red carpet. Expensive, glamorous gowns and dazzling jewelry shimmered under their owners' light.

Since he had come across the Oscars, the world's biggest annual film event, Wu Yuchen naturally wanted to participate and experience it.

The Oscars red carpet isn't as easy to "crash" as the three major European film festivals. Otherwise, why would so many Chinese actresses go to Cannes over a decade later, while so few try to "crash" the Oscars? Is the Oscars red carpet simply not appealing enough?
In 2015, Huang Shengyi tried to get involved in the Oscars but failed. She then staged a fake red carpet photoshoot and posted it on Weibo to fool netizens, but was exposed by them and made a big joke. In the end, she pretended to faint and went to the hospital, and even issued a statement saying that it was because her dress was lost.

There are generally three ways to get an invitation. First, if you or a film you participated in is nominated, you will definitely receive an invitation. Second, if you are a member of the Academy and receive an invitation from the Academy. Third, if you are an award presenter, you will naturally receive an invitation.

Each invitation allows him to bring a companion, and given Wu Yuchen's current status, plenty of people would be willing to bring him to the Oscars. This time, Fox directly secured a spot for him.

I'll attend the Oscars since I'm running into them; I'll return to China in the next chapter.

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(End of this chapter)