[Chapter 465: Layoffs]
It was the launch of Microsoft Windows that significantly accelerated the promotion of personal computers from specialized technicians to the general public. Nowadays, web browsing tools for computers, much like the old DOS system, required substantial technical knowledge, which was one of the reasons personal computers had become widespread while computer networking had not made much progress. Chris could imagine that if Eric's idea could truly be realized, it would surely spark a revolution in computer networking.
Just the first idea left Chris feeling intrigued, and he couldn't wait to ask, "So, what's the second idea?"
Eric took a sip of coffee and said, "The second idea is online email service."
"That already exists, though. I just learned how to use it recently, but I don't think it's anything special, and it's not very convenient."
"I mean 'online' email service," Eric emphasized the words 'online.' "Most current email transmission relies on software for point-to-point transmission, transferring from one computer to another, and often used within a small local network. So, if you leave the office, you can't check your emails. What I want to create is a company providing online email service using a standalone website and servers as the email medium. That way, once a user signs up for an account, no matter where they are, as long as they can connect to the internet, they can access emails sent from friends or colleagues from anywhere."
Chris replied, "I don't think many people would pay for such an email account. Phone call costs are relatively low, and public phones are everywhere. You could say anything over the phone instead. Plus, people don't necessarily send emails every day."
Hearing Chris's remark, Eric felt a bit disheartened. He proposed this idea, and Chris immediately thought about spending money on such a service instead of hoping for something free. Eric didn't bother to argue. He quickly said, "I never planned to charge for it; it'll be a free online service. In the first phase, our goal is to accumulate users. If computer networking can become widespread, then our email service users will grow to a significant scale. Just imagine, if we have 100 million active email users, how much money those advertisers would pay us to send marketing emails to them?"
Chris seemed to truly ponder over it for a moment before revealing a dazed yet impressed expression and said with a chuckle, "Alright, what's the third one?"
"Portal web," Eric mentioned, dipping a bit of water and spelling out the words on the table.
Although the internet had only started shaping up, various websites had already begun appearing on this primitive network. Taking the film aspect as an example, the well-known movie information site IMDb had been established back in 1990, and by now, it had developed considerable scale. So, launching a portal website wouldn't be too ahead of its time. Even if it was a bit premature, they could always burn a few hundred thousand dollars each month, patiently waiting for the golden age of the internet to arrive. A year's spending would equal that of a low-budget film, hardly a concern for Eric.
While Chris understood the gist of the first two ideas just from their names, the concept of a portal website was completely unfamiliar to him. "Essentially, it's about categorizing the chaotic websites on the internet and establishing a web directory, so users can easily find the information they want on this directory."
Chris nodded, showing he grasped some of it. However, compared to the more striking first two ideas, he felt Eric's last concept didn't have much commercial value. A categorized directory website could be very practical, yet it seemed quite easy to replicate, likely making it hard to dominate the market.
Eric noticed that Chris probably saw this last concept as merely an addition to the first two projects. However, he wasn't in a rush to explain; let the reality surprise Chris. After all, Yahoo's market value in his previous life was several times that of contemporaneous browser and online email service companies.
The two chatted enthusiastically in that roadside cafe until late at night. Although it was already three or four in the morning by Eric's accustomed West Coast time, he felt no fatigue. His youthful body and regular exercise kept him energized, and pulling an all-nighter was no problem at all.
It wasn't until two in the morning Eastern Time that Chris and Eric finally stood up to leave amidst the 'disapproving' gaze of the cafe staff. The streets of Manhattan felt even colder at that hour, yet it did nothing to dampen their spirits.
"Take some time to write out the business plan in the next few days. Once the America Online situation is sorted, I'll move quickly on preparing these three companies. By the way, since you came up with these ideas, have you thought of names for them?" Chris asked as they parted ways.
Eric wore a mischievous smile. "Of course, the three companies will be called Internet Explorer, Hotmail, and Yahoo."
...
Over the next few days, Eric and Chris continued haggling over the cooperation terms with Steve Case from America Online. Meanwhile, the 64th Academy Awards were held on March 30 at the Los Angeles Music Center.
Unsurprisingly, the film Dances with Wolves, which received 12 Oscar nominations, won seven awards, including Best Picture, Best Director, and Best Actor. Following the good news from the Oscars, ticket sales for Dances with Wolves rebounded sharply. In its fifteenth week of release, it grossed over $11 million in less than 1,500 theaters, pushing its total earnings to over $150 million. The box office performance of this drama, which Eric had initially deemed commercially bleak, left everyone astonished.
Though only possessing the film's theatrical distribution rights, given Dances with Wolves' performance in North America and overseas, the movie was expected to gross over $500 million worldwide. According to the revenue-sharing agreement signed earlier, Fox would receive nearly $100 million in profits from this windfall. For Fox, this massive profit, nearly half of their earnings from the previous year in the film division, was like a windfall. Insiders familiar with the situation even joked at parties that Murdoch had a good daughter.
Additionally, since Eric had advanced the release of The Silence of the Lambs by a year and without competition from Jodie Foster, Susan Sarandon won Best Actress for her performance in Thelma & Louise, which also received the award for Best Original Screenplay.
The dual success of Thelma & Louise, both commercially and artistically, drew more attention to TG Films, the company founded by three women. Although everyone knew that the backing of TG Films came from the two giants, Firefly Films and Fox, many investors still frequently approached them to attempt to buy shares or invest in the three women's company.
Independent film companies, even if they had a film that performed well, faced challenges due to the seven major distributors monopolizing the channels. They often found themselves needing to secure financing to shoot new films.
However, this issue was non-existent for TG Films. Their films, regardless of whether distributed by Fox or Firefly, received timely revenue shares. Moreover, even if funding remained a challenge, both Eric and Murdoch were more than willing to invest, so all those trying to invest in TG Films walked away disappointed.
...
On the New York side, due to the keen interest of both parties to collaborate, Firefly Investments successfully reached a preliminary agreement with America Online, but the specific investment amount would be negotiated in detail by Chris' team and Steve Case.
At the same time, Eric confirmed the plan to invest $80 million in Emily Brighton's apparel company, a figure reached through discussions between Eric, Chris, and Emily.
...
A week later, Eric left Chris with three project proposals and headed back to Los Angeles.
The preparation for Mr. & Mrs. Smith proceeded smoothly. As it was John Woo's first film in Hollywood, he approached it with immense seriousness, overseeing every detail himself. The scene design, setting, and casting of supporting roles were all moving forward methodically. It was expected that by late April, once Nicole and Pierce Brosnan finished their weapon training at the 'Spy School,' filming could commence smoothly.
With less to worry about regarding Mr. & Mrs. Smith, Eric directed most of his attention towards the preparation of Jurassic Park. The most crucial aspect of Jurassic Park was the design of the dinosaurs. According to paleontologists' reconstructions of dinosaur fossils, the original appearances of creatures like the T-Rex and Velociraptor differed significantly from their widely depicted images.
Combining his memories with consultations with several paleontologists, Eric finally confirmed the appearances of the most critical dinosaur species.
As for the special effects in Jurassic Park, thanks to Eric's cost-no-object investment in technological research and development, there were no significant technical issues if the film were made entirely with CG. However, it required substantial time. After all, no one had yet used full CG to create highly realistic dinosaur creatures, and starting from scratch demanded considerable time and effort for technical exploration. Moreover, since Stan Winston was already an expert in model effects, after weighing pros and cons, Eric decided to utilize a method combining models and computer-generated effects, as Spielberg had done in his previous life.
Following this decision, a plethora of model effects designers quickly dived into the dinosaur model creation project at the vast studio in Playa Vista. The dinosaur models required more than a simple shell; in addition to realistic appearances and skin textures, complex mechanical systems were also necessary for internal movements. However, when compared to computer-generated effects, creating the dinosaur models in this manner remained considerably cost-effective. Regardless, models were undeniably more lifelike than computer-generated effects at the current stage.
...
Days turned into weeks in the busy preparations for Jurassic Park. By mid-April, the Disney and Columbia collaboration, Mr. & Mrs. Smith, officially started filming in Los Angeles. Simultaneously, Firefly's other summer film, The Mask, which also starred Jim Carrey and Claudia Schiffer, wrapped up production, and Digital Domain quickly took over the special effects responsibilities for The Mask.
With less than two months left before the summer season, Firefly and Disney began ramping up their promotional work for their featured summer films. Of course, several other major film studios naturally joined in the marketing battle.
As Mr. & Mrs. Smith commenced filming, the other secret condition offered to Firefly by Columbia during their collaboration also began to unfold.
...
In truth, this operation wasn't too complicated. After a few private discussions between Peter Guber and Eric, they finalized a specific plan.
In April, a relatively unnoticed Hollywood trade publication announced that to reduce operational costs, Columbia would lay off 2,000 employees over the next six months and would also dismantle some less critical departments.
The reaction to Columbia's layoffs wasn't particularly dramatic in the industry. After all, Columbia had indeed been struggling, suffering losses for more than two consecutive years, which made the layoffs seem justified. If the Japanese hadn't been hindered by their prior commitments and could intervene in Columbia's operations, it was likely they would have already implemented cost-cutting measures.
However, despite most people being unaware of the truth behind it, such a large-scale move couldn't help but attract attention in Hollywood. When Columbia announced the news, the very first week saw the immediate closure of its subsidiaries in Brazil, Argentina, and several other Latin American countries, leading many to notice something strange.
Remember, while Latin America had a generalized hostility towards American policies, making it more challenging for Hollywood films to enter, the potential market size there was vast -- over a billion people. Complete dismantlement of these subsidiaries felt excessive. Once East Europe changed after the end of Communism, the market, which had been resistant to Hollywood films, opened up overnight. Those film companies established there gained a significant advantage over others. The situation in Latin America would presumably mirror this.
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