Eric shook his head, trying to shake off the sleepiness.
"Sorry, Mom, I was filming in Nevada for the past few days and didn't get much sleep."
Emily looked at her son with concern.
"Then sleep a little more. Work can wait; your health is more important."
Filming had been so intense that Eric worked non-stop for eight days straight. The actors could finish their work according to the schedule, but not the director. He had to plan the shoots, review footage, work on the script for Blue is the Warmest Color, and write new scripts.
As a result, he was only getting four to five hours of sleep per day.
Moreover, the conditions on the military base were far from comfortable. Even when he did manage to fall asleep, the loud sounds of drills constantly woke him up.
Now, back home, lying on a soft bed, it felt like he could sleep forever. Eric yawned, buried his face in the pillow, and instantly fell asleep. His mother quietly closed the door behind him.
He woke up only after two in the afternoon, when his phone started ringing non-stop.
"Judy, what's going on?"
Judy's anxious and irritated voice came from the other end.
"Boss, what are you doing? You asked me to set up a meeting with Stephen Chow. He's been waiting all morning. I've called you several times, but you didn't answer, and Chen Xing isn't saying anything about where you are."
Eric suddenly remembered he had completely forgotten about the meeting. But, of course, he couldn't admit that he had overslept. He needed to maintain the boss's image.
"Alright, I got it. Something unexpected came up. Are the Star Overseas people still in the office?"
"Yes, but they've gone to the restroom several times already. If they're kept waiting any longer, they might start getting nervous. I don't know what else to say to them."
"Tell them to wait another hour. I'll be there soon."
"Another hour? My dear boss, you're an American, not an Italian. Can't you be a bit more punctual?"
Eric laughed.
"Punctuality? That's for the weak. We're in a strong position now. Tell them MGM is interested in investing. For money, they can wait ten days if needed."
After finishing the call, Eric went to the bathroom. A hot shower washed away the fatigue and dust of Nevada, and he felt much better.
After the shower, he went downstairs, where a meal prepared by the young, sexy housekeeper awaited him.
After eating, he left the house, where Chen Xing was already waiting for him by the car. He opened the door, closed it behind Eric, and sat in the front seat. The Lincoln smoothly pulled away, heading toward Beverly Hills.
"How's the task I asked you to check on progressing?"
Chen Xing took out a report from his bag and handed it to Eric.
"This is a report on the development of the Chinese film market in recent years."
Eric took the report and began skimming through it. Although he had worked in the industry before, 2003 seemed like a distant time. He was only thirteen back then.
Flipping through the report quickly, he got a general idea. The Chinese market was indeed weak. From 1995 to 2002, the annual box office revenue averaged around 900 million yuan, not reaching even one billion.
The highest box office earnings were in 1998 when Titanic was released, grossing 360 million yuan. The total annual revenue then reached 1.4 billion yuan, equivalent to less than 200 million dollars.
By comparison, in the U.S. in 1998, the total box office revenue was about 7.5 billion dollars, roughly equivalent to 60 billion yuan. The difference was 42 times.
Even taking Titanic with its 360 million yuan, Hollywood studios could only get about 46 million yuan, which is roughly 5.75 million dollars.
No, you're not mistaken—only 5.75 million dollars. After taxes in the U.S., Disney got about 5 million dollars.
Having made a fortune, Disney ended up with only "pocket change." That's exactly how they felt back then.
Why were the earnings so small?
The problem was the extremely low profit share from foreign films in China.
In North America, the profit share from Hollywood films is around 50%, splitting the revenue with theaters. For major projects and popular sequels like Star Wars or The Lord of the Rings, the company's share can be even higher, up to 60%.
Moreover, there are certain conditions related to the number of weeks the film is shown. The exact ratio can be negotiated between the company and the theater and isn't fixed by law.
Globally, the revenue share from film screenings varies between 40-50%, depending on the quality and popularity of the film.
So, what's the share in China? The answer is 13%!
Yes, you're not mistaken—it's even lower than in some African countries. Additionally, only 20 films were allowed to be imported each year, and this share increased to 25% only in 2012.
That's why the profit share from Titanic was so low.
Currently, the Chinese market for Hollywood looks like a piece of meat that's hard to eat but too precious to throw away.
It's hard to make money because 90% of the revenue stays in China! You don't want to be begging for scraps!
So, even though the quota of 20 imported films per year seems limited, the competition for it isn't actually that fierce.
But China is still the most populous country in the world, its economy is growing, and who knows when this potential might explode? That's why some companies have already set up offices there.
Since Eric time-traveled in April last year, he had already thought about whether it was worth opening a branch in China.
Early planning, establishing good relations with the upper echelons of power—all this could give an advantage when the film market starts to actively develop around 2008-2009.
Another important factor: this year Transformers should be released in Chinese theaters, otherwise, it will be difficult to sell the merchandise, which could generate more revenue than box office earnings.
Discussing this with his father, he didn't object. Registering a company isn't expensive, and it can be put on hold until the right moment. But then, due to many other tasks, the idea was forgotten. And now, when Stephen Chow reached out on his own, the thought resurfaced.
Arriving at the MGM building, the Lincoln stopped at the steps, and Eric headed toward the elevator.
Now, when employees saw him, they no longer feared him as they did a few months ago. On the contrary, they greeted him with smiles.
They now knew that Eric didn't lash out at his subordinates and generally treated them kindly.
Moreover, the company has indeed started generating profit. Since the Coopers took over the management of MGM, their success has become noticeable to the naked eye.
At the end of the year, Charlie Cooper generously raised everyone's bonuses by $10,000, which significantly boosted the morale of the employees. Everyone felt that life was getting better.
Ding!
The elevator doors opened, and Eric headed towards the conference room.
The secretary opened the door, and he saw three people sitting on the couch, one of whom he recognized well.
The man in the black pinstripe suit with a warm sweater and shoulder-length hair had well-defined and attractive features, though his eyes looked cold. It was Stephen Chow, known as the King of Eastern Comedy.
Seeing Eric, Stephen Chow immediately stood up. The day before, he had gathered information about him and realized that the young man before him was even more attractive than in the photographs.
As the host, Eric was the first to extend his hand: "Hello, Mr. Chow, I'm Eric Cooper!"
Stephen Chow quickly shook his hand: "Pleased to meet you, Mr. Cooper. Please, call me Stephen."
"Pleased to meet you? Oh no, I've seen you many times in movies, the King of Eastern Comedy."
Hearing this, Stephen Chow hesitated slightly, then modestly smiled: "I'm not a king of comedy; I'm just an actor."
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