[Chapter 695: The Essence of the Media Industry]
William White's substantial investment actually raised the bar for the film industry. Even if you were an industry giant, you would have to weigh the cost of direct competition carefully.
For those small companies trying to make a name in the film industry, the challenge was undoubtedly monumental. Of course, as long as you had the knack for pulling in funds, there was still a chance to try.
No matter how impressive William White was, he couldn't fill 20,000 screens. The overall box office figures in the United States were increasing year by year, and even with the negative economic growth this year, it still showed an increase.
"Paramount wants to sell? Wow, that's quite ambitious! Who's the genius behind that?" William White mused, puzzled. It seemed like they were doing well; why would they choose to sell?
People often talked about Hollywood, but in reality, only Paramount could truly be considered a Hollywood movie company. Many firms, including White Films and Disney, were registered outside Los Angeles, in fact, outside of California altogether.
Despite California's wealth and flourishing economic development, the state had the highest tax rates in the nation.
"Sir, it's that Summer Redstone, the one who made his fortune through theaters."
"Summer Redstone? Wait a minute, Filson, that old man must be over seventy now! Is he planning a startup again?"
"Yes, sir, don't underestimate him. This time, the Jewish consortium is backing him heavily. And indeed, Paramount is considering a sale. The only issue now seems to be that his wife looks like she wants to separate their assets."
William White burst out laughing; he hadn't expected such an entertaining twist.
Wait a minute, the creativity of MTV had been hijacked from him. Surely this old guy didn't have the capital for that. What exactly went wrong?
"Filson, are theaters still making money these days? What business does this Redstone even have?"
"Video rental, TV stations, and then theaters. The theater business has indeed been highly profitable these past couple of years." Filson thought to himself, don't you see how much you've made? Theater operators don't only rely on box office sales; they also sell popcorn. Don't forget about all the various gaming machines. You should know how lucrative those can be!
"I see, he's eyeing Paramount's film library. The money he's spending now will quickly be recouped."
"Yes, sir, with Paramount's distribution channels, his threat isn't smaller than what Warner had."
"Ah, these guys are certainly tough. By the way, what's Murdoch up to now?"
"He's gone all in -- aside from News Corp and Fox, he's got nothing left. Even in those two companies, his stake is very low."
"Got it, check if they're selling the film library and also set up a meeting with MGM's Kirk Kerkorian."
"Sure, sir, I'll take care of it."
Filson didn't need to ask; he knew buying a film library was a joke. Selling off the most valuable asset -- who would keep acquiring after that? As for Kerkorian, that guy was just a stick stirring the pot; if you piqued his interest, he would be sure to stir things up.
William White was very clear that no matter how much he coveted it, Paramount would not be sold to him. The combination of White Films and Disney was already a formidable force. If he added Paramount into the mix, his statue would surely stand on Hollywood Boulevard.
Movies, television, newspapers, and magazines might seem unrelated, but in reality, they weren't. William White started with movies, then moved to television and print. By now, White Media had become a colossal entity.
Murdoch was different; he started from print media, then moved to television, and finally to movies. Clearly, his mindset aligned with William White's, but they differed on the sequence of it all.
As it turned out, William White was a step ahead. From film and television to print media, Murdoch faced a harsh reality. At this point, he probably couldn't even be considered a rival.
...
Summer Redstone had been eyeing Paramount for three years, closely observing Hollywood. He had meticulously tracked William White's every move, and over the years, he distilled his conclusion into four words: content is king.
Now, in this situation, Summer Redstone knew he couldn't wait any longer. That jerk William White was clearly using his capital advantage to crush the competition. If he didn't buy a ticket to the show soon, there wouldn't be anyone left to challenge William White in this world.
...
News of a $200 million film project sent shockwaves through Hollywood, plunging it into an eerie silence. No one knew what a $200 million movie would look like or how it should be made.
But one common thought rang true: William White might not even be at a loss.
A worldwide box office gross of over $100 million was considered a decent film in Hollywood. For William White, a break-even point was pegged at $500 million. That gap was truly hard for anyone to swallow.
Should one chastise him for this?
Don't be ridiculous. For those low-budget films, they couldn't even dream of being his rivals. If you could achieve a higher return than Home Alone, then feel free to talk.
William White's success taught the world how the media industry should be run.
Yes, everyone had their own motives, all thinking about their hidden agendas. Making money wasn't even their primary goal; how to feed the world motivational cliches was their real job.
William White now demonstrated through action that they were all wrong. The most crucial aspect of a media outlet was content; nobody cared about the past scandals among them.
To be honest, the education level in America was severely polarized. The average person struggled with basic calculations, and their knowledge of history and geography could only be described as laughable. Trying to discuss lofty subjects with them was pointless; you'd be better off telling them which cat breed was the cutest.
What? Elite folks might not care.
Don't joke around -- the truth is that even in the age of self-media, aside from those internet stars, the highest click-through rates were still for cat videos.
Moreover, who cares what elite individuals like to watch on TV? Their lives must be rich and fulfilling, which wouldn't significantly help your ratings.
...
Clearly, it was hard to say whether other giants understood this; Summer Redstone certainly got it. Watching William White rake in the cash, the old man was so envious he could hardly see straight.
"Henry, what the hell did my godforsaken wife say?"
Seeing the old man lash out, Henry had no intention of advising him. The two of them had managed to get to such a point; one could say he was quite capable.
"Summer, if possible, you best settle. This lawsuit is going to cost at least five million."
"Five million?" Summer Redstone felt his stomach churn. While there were generous Jews, Summer Redstone was not among them.
If there were a ranking for stingy people in the world, the old man would certainly rank high. He'd gone to court multiple times with his wife over money. For the sake of money, he had fallen out with his son. Haha, this guy could only be compared to Ebenezer Scrooge.
Of course, the stinginess I'm referring to here is just his attitude toward others. No one in his family could expect to see a dime from him, and no one at his company stood a chance either. The most telling example was when a Viacom journalist was held hostage in Iraq; because Redstone refused to pay the ransom, the journalist was later killed.
Meanwhile, others who were kidnapped were freed not long after because someone paid the ransom.
Although Viacom tried to justify it by claiming paying ransoms encouraged such behavior, everyone in the industry knew the old man was just miserly. A couple of hundred thousand could be negotiable, but tens of millions? He wouldn't even pay up if someone kidnapped his son.
*****
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