2001 Media Godfather

Chapter 53 Dirtier than me
Raising industry entry barriers by increasing costs and reducing profits is a common tactic used by internet companies.

Whether it was Sohu and Sina in their early days, or Alibaba, JD.com and Meituan later on, they all started a money-burning mode, using low-price competition to defeat their rivals and seize the market, while also putting pressure on newcomers.

You can come in if you want, but you need to think carefully about whether you can withstand the high risks and high investments in the early stages.

This is nothing new in the film and television industry; it's been overused.

Let me give you an example that few people know about!
In another time and space, anyone with even a slight understanding of the Chinese entertainment industry knows about the decline of Hong Kong films.

There are many reasons, such as Taiwan's relaxation of import film controls, leading to Hollywood blockbusters squeezing the market share of Hong Kong films in Taiwan.
For example, the 98 Asian financial crisis cut off the second largest source of revenue for Hong Kong films—the Southeast Asian market.

For example, the widespread use of VCDs greatly improved the viewing experience of pirated movies, which had the greatest impact on Hong Kong films, which did not pay much attention to visual presentation to begin with.

In short, various reasons led to the decline of Hong Kong films. In 97 and 98, the industry almost stagnated and could no longer survive.

Against this backdrop, coupled with the relaxation of policies, Hong Kong filmmakers began to seek a living in the mainland.

The result is:

A wolf among sheep!

It's important to understand that at the end of the 20th century, Feng Xiaogang was the only director in mainland China who could guarantee box office success. Zhang Yimou was still competing with the three major European directors, stubbornly sticking to the art-house style, and there was no sign of "Hero" yet.

As for actors and celebrities, there are plenty with acting skills, but only a handful have commercial value.

Anyway, he can't compare to the Four Heavenly Kings, Takeshi Kaneshiro, or Tony Leung at all.

In just a few short years, Hong Kong filmmakers collaborated with their mainland counterparts, resulting in a large number of classic works such as "Shaolin Soccer," "Kung Fu Hustle," "Infernal Affairs 1, 2, 3," and "Protégé."

It was later hailed as the last hurrah of Hong Kong cinema.

Co-productions also became a standard feature of successful works in that era.

So much so that from the male and female leads to the behind-the-scenes staff, everyone adhered to the principle of being half Hong Kong Island and half mainland China.

Co-productions have been a part of the work of two prominent figures in mainland Chinese cinema: Feng Xiaogang's "Big Shot's Funeral" and "A World Without Thieves," as well as Zhang Yimou's "Hero."

On the surface, Hong Kong films are experiencing a second spring, and mainland audiences can also see good films, which seems like a win-win situation.

Of course it's a good thing.

But behind the scenes, that's not the case at all; mainland filmmakers have been bullied terribly.

Unfortunately, before this, domestic films followed the European art-house route, which was inherently incompatible with commercial success. The commercialization process was also incredibly slow, leaving almost no room for survival after the influx of films from Hong Kong.

The actors' salaries and the treatment of staff members after joining the crew are two completely different things.

During that period, Hong Kong stars dominated both movies and TV series.

Apart from a few actors who can get leading roles, other actors, no matter how good they are, can only play supporting roles, and even supporting roles are treated differently from those from Hong Kong.

If left unchecked, the mainland film and television industry is likely to be completely dominated.

Although it's true that you can't write two Chinese people out of one word, it's not just Hong Kong films that need to survive; there are many more filmmakers across China who are waiting to make a living.

In this context, two masterpieces were born!
One is a large-scale production representing mainland Chinese films, made with the collective wisdom and effort of the team, driven by a desire to prove themselves.

Poet Chen's "The Bloody Case of Steamed Buns".

The plan is to invest 2 million RMB!

This is the second largest investment in a major production in mainland China after "Hero".

Originally, it was a joint investment by Chinese filmmakers and Emperor Entertainment Group, with special effects handled by a Hong Kong company. (Hong Kong special effects at that time were by no means inferior.)
Later, although Emperor Entertainment artists played some roles, Emperor Entertainment's logo was removed from the production company list and replaced by Shanghai Film Group and Beijing Television Art Center from mainland China. The post-production special effects were also changed to special effects teams from South Korea and Hollywood.

The reason is... it's already quite obvious.

We want to leave Hong Kong behind and make our own domestic blockbusters.

In short, "The Bloodstained Steamed Bun" has transformed from a co-production between mainland China and Hong Kong into a purely mainland-produced and director-led film.

结果
As it turned out, Chen Yimou disappointed, producing what is arguably the worst film in history, nearly bankrupting the Chinese community!
Moreover, what many people don't know is that if Chen Shishi hadn't been so reckless and had instead followed the plan to make the film, even if it were a bad movie, even if its reputation had collapsed and public opinion had been flooded by the video "A Bloodbath Caused by a Steamed Bun" on the internet.

Even so, this film will not lose money.

Based on the box office revenue and overseas copyright income at the time, it was just enough to break even at 2 million.

But there was nothing they could do; a poet is a poet. They kept adding scenes and reshooting in post-production, pushing the production cost up by 70%, which is an extra 1.4 million yuan.

In the end, with a total production cost of 3.4 million, they didn't even make a name for themselves and made a huge fool of themselves!

This has made it even harder for the mainland film and television industry, from those who contribute money and effort to the actors, to hold their heads high.

Filmmakers outside of Hong Kong Island, you really can't do it! You're so disappointing!

Aside from Zhang Yimou and Feng Xiaogang, there's nobody else who can fight!
Thus, the second masterpiece and the second director surnamed Chen appeared.

Hong Kong director Peter Chan's "The Warlords".

Co-production!
This is another opportunity for Hong Kong Islanders to prove they are stronger than those on the mainland.

Then, they lost even more money, even more than with "The Blood-Soaked Bun".

(The online data is inaccurate, but mine is accurate.)
How should I put this movie?

From the day it came out, it wasn't made to make money.

The total investment is over 3 million! Note that this is not like Chen Yimou's film, which went over budget halfway through filming, nor is it like Zhang Yimou's "Hero," which had Miramax's overseas market backing it up, allowing it to splurge freely.

From the very beginning, "The Warlords" was made for Chinese audiences, and it only had the support of the Chinese-speaking market in Mainland China, Taiwan, and Hong Kong.

They had planned this from the beginning, investing 3 million!
It was precisely because of the initial investment of 3 million that they were able to bring together three top male stars: Jet Li, Andy Lau, and Takeshi Kaneshiro. What exactly does that 3 million investment mean?

Generally speaking, a movie relies on box office revenue to recoup its costs; the box office revenue needs to be more than three times the investment amount.

"The Warlords" needs at least 900 million to 1 billion in box office revenue to break even.

At that time, no box office champion in mainland China had ever exceeded 3 million yuan.

In other words, the producers, Media Asia in Hong Kong and Poly in mainland China, knew from the beginning that they would lose money.

And from the very beginning, they were spending money like crazy!

The reason the director chose Peter Chan is because the renowned director had just finished making "Love Letter" in Hollywood and was at the height of his career.

The actor chosen is Jet Li, who is a well-known figure in Hollywood; no one is more expensive than him.

In addition, nine screenwriters were hired, including top-tier screenwriters from both sides of the Taiwan Strait.

Equipment? The equipment must be on par with Hollywood, and it must be shot slowly with a single camera.

Extras spend hundreds of thousands on boxed meals a day; money talks.

Every single costume and prop was carefully selected; they were all expensive and of the highest quality.

On the surface, it is said to be aimed at revitalizing Hong Kong films, strengthening in-depth cooperation between mainland and Hong Kong colleagues, and reviving Hong Kong Island cinema.

The result was indeed a classic film, which is still highly regarded by many people even more than a decade later.

But the losses were even worse than those of the poet Chen!
Moreover, not only did they lose money, they also ruined the promising future of co-productions.

Since then, no co-production has become a classic.

On the contrary, mainland filmmakers learned the techniques and accumulated experience.

A large number of commercially successful films emerged, including "Crazy Stone," "Lost in Thailand," and later "Monster Hunt."

Since then, the status of Hong Kong filmmakers in mainland China has gradually returned to normal, and they no longer have any special privileges.

It was after that that the poet Chen and the Chinese community, who had actually done more harm than good, began to decline.

As for Poly's background later on, I won't go into details.

Media Asia?

Yes! Although the owner of Media Asia is from Hong Kong Island, he is a politician.

Of course, there is one more detail worth noting.

Peter Chan.
A producer by training! Besides directing, his greatest strength lies in cost accounting and control.

He knew from the beginning that this film would be a huge loss.

……

"My situation is actually quite similar to yours."

At this moment, Chu An was very willing to have a few heartfelt words with Lin Wanchen.

"You have the talent of Lin Wanxing, but you lack the foundation to establish yourself in the industry."

"And me? I have nothing but the hype of being the first drama to air."

"Don't be fooled by the fact that this movie made money, and a lot of money at that."

"Even if I were to have control over Lu Mingze's share, how much money would that amount to in this industry?"

"Two films that lose money leave nothing behind."

Hearing this, Lin Wanchen sighed deeply, feeling the same way. "Yes, we are not Tiandu, we don't have such deep roots, we can only rely on scheming to survive in the cracks."

"So, raising costs is just to keep some competitors out?"

Chu An: "It would be best if we could block it, but it's okay if we can't."

Lin Wanchen frowned. "What do you mean?"

Chu An smiled, "If we can't stop it, we'll just give it to Tiandu!"

"Anyway, I've already set a good example. Isn't Chen Ru from Tiandu supposed to be very capable? If he can't see through this, he's just wasting his time!"

"The opponents ahead will naturally be dealt with by Tiandu."

Lin Wanchen, "..."

I was a little confused, but also a little impressed with Chu An.

He actually thought of having Tian Du block the other opponents.

But thinking about it, it makes sense. If Tianyao were to intervene, the threshold wouldn't be just 20 million. Chen Ru would build a high wall, preventing the vast majority of people from getting in.

As for Chu An, he and Lu Mingze have already made a name for themselves and are already members of the sect.

He gave a thumbs-up and said, "Let's chat sometime. I've discovered you're even dirtier than me!"

……

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(End of this chapter)