[Chapter 990: Collaboration Plan with Theaters]
Digital Domain's office area was unusually lively that day. Eric arrived on the scene with Caroline and Marissa, where many high-level executives from the group had already gathered. In a hall inside the Digital Domain Loft, Stan Winston was introducing the RealD dual-projection 3D movie system to people like Jeffrey Katzenberg and Frank Wells.
After the plan was finalized last fall, both the "4200" and "RealD" projects had been swiftly moving forward within the Firefly Group. Over the past six months, to advance these plans, the company first bought Canada's IMAX Corporation and sped up the research and development of DMR technology for converting standard 35MM films to IMAX format.
Due to being overlooked by Hollywood distributors for a long time, IMAX had struggled to commercialize its technology, teetering on the brink of bankruptcy multiple times. However, now, with the relentless support of the Firefly Group, thanks to years of technical accumulation, IMAX's research and development team had produced an outstanding DMR conversion plan in just six months. They were currently working on resolving the film length limitations of DMR technology and anticipated that by the end of the year, all issues would be resolved, allowing IMAX to commercialize seamlessly.
Next, in Digital Domain, a subsidiary named "RealD" was established specifically to develop the dual-projection 3D movie system. Digital Domain was also tasked with creating 3D conversion software and training a 3D conversion team. In fact, these initiatives had already gradually begun a few years back, but only after last fall, when the two plans were confirmed, did they really take off.
Today was essentially a day for evaluating the technical achievements of the Digital Domain.
...
After greeting everyone, Eric put on a pair of polarized 3D glasses from the workbench to try them out. Noticing that Stan Winston wanted to say something, Eric spoke first, "Stan, don't you understand? Facts are more persuasive than any rhetoric. Let's head straight to the screening room."
"Ha ha, of course," Stan nodded but picked up a 3D glasses to fondle. "However, we put a lot of thought into this, and I hope everyone can appreciate it a bit deeper. Eric, I assure you, you're going to be amazed."
"I'm certainly looking forward to it," Eric replied with a smile.
With some light banter, the group exited the Digital Domain's office Loft and walked towards the nearby cinema's screening room.
...
Marissa Meyer followed behind a group of big shots with Caroline, listening as Eric expertly discussed various technical issues related to 3D movies with Stan Winston and Jeffrey Katzenberg. Noticing how intently Caroline was listening, she secretly resolved to quickly brush up on the related knowledge this weekend.
As an assistant, it would be terrible if she didn't understand what her boss was saying. She certainly didn't want to be seen as just a pretty face.
Entering the screening room, Marissa and Caroline received the 3D glasses handed to them by staff, took their seats, and Marissa examined the 3D glasses in her hands with curiosity.
They featured black frames with light gray lenses; when worn, everything appeared dimmer, but there was nothing particularly special about them.
The big shots in the front row chatted for a bit, and as the lights dimmed in the screening room, Marissa instinctively turned her attention to the screen.
When the hard metal screen lit up, Marissa hadn't fully processed it yet, and with the excellent sound effects in the theater, a roaring Tyrannosaurus Rex suddenly lunged at her with its jaws wide open.
"Ah--!"
Caught completely off guard, Marissa leaned back against her chair, forgetting the occasion entirely, and screamed as she tore off the 3D glasses.
Although everyone was startled by Stan Winston's trick, hearing a woman's scream caused the executives in the front row to remove their glasses and glance back in her direction.
In the dim light, feeling a dozen pairs of eyes suddenly focused on her, Marissa felt embarrassed beyond measure. "Uh, sorry, everyone."
Seeing she was alright, the others quickly returned their attention to the big screen.
...
To test the digital domain team's technical achievements, Eric had specifically chosen a scene from Jurassic Park where the main characters encountered the T-Rex on a rain-soaked bridge for 3D conversion.
Night shots and rain scenes were both technical challenges for 3D conversion. Given the triple brightness attenuation from the projector, screen, and glasses, 3D movies often suffered from a common problem of dim visuals; if the night scene conversion wasn't well done, it could end up being just a dark blob on screen.
However, judging by Marissa's reaction, the Digital Domain team's conversion effect was undoubtedly outstanding.
They watched the ten-minute converted segment three times before the lights in the screening room were turned back on.
...
Eric didn't lead the high-ranking executives out; instead, he remained seated in the screening room and began discussing the results.
Unable to find any faults with the 3D visuals they had just witnessed, Eric asked about the timeline for converting a complete film. "Stan, based on what we just saw, how long would it take to complete the conversion of a full-length movie?"
Sitting beside Eric, Stan thought for a bit and replied, "For a two-hour movie, the full conversion would take about three months."
Three months for converting one film meant only four 3D films could be produced in a year. While Eric believed in the mantra of quality over quantity in the early stages of promoting 3D movies, four films weren't enough to sustain year-round screenings. This number needed to at least double.
After considering it for a moment, Eric said, "Keep hiring. We need to double the size of the conversion team. I need you to deliver at least eight films a year."
After hearing Eric speak with Stan Winston, Katzenberg inquired, "So, Eric, now that all the technical issues are basically resolved, are you sure we want to move forward with the next steps?"
Katzenberg's sudden question came with reasoning. Whether it was the IMAX DMR conversion technology or the RealD projection system development, the invested capital was merely in the tens of millions of dollars.
However, once the plans related to actual theater collaboration officially commenced, it wouldn't be a matter of just a few tens of millions anymore.
The RealD projection system being developed included two custom film projectors, a hard metal screen, and 3D polarized glasses -- all three components. Without considering the profit potential of the system itself, the equipment cost totaled $250,000. Converting traditional 2D theaters to dual-projector 3D theaters would require a budget of at least $300,000 for each screening room.
While the unit price for the entire set of equipment was insignificant for Firefly, the cost for transforming 4,000 3D screening rooms worldwide would soar to $1.2 billion; this was a very conservative estimate.
Adding in the planned 200 IMAX cinemas, with an average construction cost of $2 million each, that was another $400 million expenditure.
All in all, a project budget of $1.6 billion was substantial even for Firefly Group, and even if they suffered a complete loss, it wouldn't cripple them. However, completing the modification of 4,000 3D screening rooms and the construction of 200 IMAX theaters was merely the beginning.
The entire plan aimed to establish an entirely new 3D film industry chain. If successful, the Firefly Group's strength would undoubtedly undergo another transformation. But if it failed, the consequences would not be as simple as losing $1.6 billion.
After making such a massive industry move, if moviegoers didn't respond positively, failure could result in more than just wasted investment; the subsequent handling of those 4,000 3D screening rooms would be a headache enough to leave Firefly in disarray. And that didn't even take into account the series of technical teams Firefly had created specifically to push this initiative.
Thus, pausing the plan at this point would not cost Firefly anything; the initial investments could be considered worthwhile for the technical results achieved. Even if they wanted to unload the acquired IMAX Corporation to relieve their burden, they could.
However, once the plan moved into the next stage, there would be no turning back.
They would either become leaders of a new film industry revolution or become the laughingstock of Hollywood, leaving behind a potential domino effect of chaos.
The screening room fell into a brief silence. To be honest, Eric felt a moment of hesitation. However, glancing around at the group of executives, he quickly smiled casually and said to Katzenberg, "Jeffrey, why don't you share the results of your discussions with a few major theater chains?"
Knowing Eric had made up his mind, Katzenberg ceased any futile discussions. "I've talked with the management of several major North American theater chains recently. Overall, they showed great interest in our plan, but they also believe the risks are too high."
Eric pointed to the metal hard screen in front of the screening room. "Perhaps next, you can bring them here and persuade them further."
"Of course, that was exactly what I was thinking," Katzenberg nodded with a smile. "But even if they recognize the visual effects of this sample footage, we will still struggle to find much leverage in future collaborations. My idea is to establish a subsidiary and collaborate with these major theater chains. We'll fund the transformation of 3D screening rooms, taking on the risks ourselves, and then share a percentage of the box office revenue from these theaters. While it might take a while to recoup costs, if we succeed, it will lead to significant and consistent income. As for the 200 IMAX theaters, we will completely control that process without needing to indulge too much."
The main difficulty in transforming 3D screening rooms still stemmed from the fact that most major North American theater chains operated multiplexes, which was exactly why Firefly couldn't venture into this alone. After all, even if they forcibly acquired a single chain, it would be impossible for Firefly to convert a cinema with five, six, or even more than ten screening rooms into 3D mode. Moreover, given the different regional theater chains, acquiring one chain or partnering with one would make it hard to cover all of North America.
Therefore, Katzenberg's plan was undoubtedly the most viable option. IMAX had used a similar model in its commercialization process in the past.
However, this would significantly limit Firefly's control over this batch of 3D screening rooms.
Fortunately, Eric's primary goal was not to enter the theater industry but to promote 3D movies.
Of course, with limited control over the final cinemas, to ensure Firefly held the initiative in promoting 3D films, becoming the standard-setter was a must.
After discussions, Eric decided to establish a dual certification system. One for screening rooms equipped with the RealD projection system and another for films employing the Digital Domain's 3D conversion technology.
As long as they could create an idea among audiences that only 3D films certified by the Digital Domain were the most authentic 3D movies when screened in RealD theaters, then even if the 3D film market became chaotic again in the future, at least Firefly's brand of 3D films would not be severely affected.
Moreover, after the chaos, other companies -- whether they liked it or not -- would gradually align with Firefly's standards due to commercial considerations.
The group discussed in the screening room all morning and then had dinner together before returning to their respective jobs to resume their busy schedules.
...
Eric returned to his office in the cinema, finally having time to chat with his new assistant.
"So, how are you feeling now?" he asked while lazily leaning back in his chair, flipping through some materials just delivered by his secretary, as Marissa Meyer sat across from him with a cup of coffee.
Marissa set her coffee down and nodded, "It's going okay; I just suddenly feel that there's so much more to learn."
Eric nodded in approval. "That's great to hear. Too many people think they no longer need to learn."
Marissa merely smiled without saying anything further.
Eric paused for a moment before saying, "Kelly must have told you everything I should tell you."
Marissa understood immediately what Eric meant. "Yes."
"Carly is a great girl; you two will get along just fine," Eric said. Seeing that Marissa didn't seem to catch on, he thought for a moment and added, "You should chat with Melanie; she can help you adapt to this job quickly."
Marissa finally caught on; Caroline was in the office next door. If it was work-related, it would be much more convenient to talk to her than reach out to Melanie Gleason in San Francisco.
"Got it, Eric." Marissa smartly didn't ask further and just nodded earnestly.
Eric didn't elaborate either. "Alright then, get back to work."
Watching Marissa leave the office, Eric shifted his gaze back to the material he was holding, which happened to be the performance evaluation report Kelly had prepared for Marissa.
Unlike the initial interview report, this one was far more detailed.
Kelly's evaluation of Marissa was still quite high, but Eric noticed a shadow of another individual in the adjectives like 'perfectionist,' 'detail-oriented,' and 'controlling.' Eric certainly wouldn't allow Marissa to manage Yahoo again like she did in the past. However, assigning her to oversee the development of a specific product was an excellent idea.
*****
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