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Chapter 1037 - Chapter 1039: The Future

[Chapter 1039: The Future]

"Indeed, while the rapid growth of the information industry in recent years has amazed everyone, we cannot deny that this industry is still in a very fragile, seedling stage. There's a huge investment, yet the output is minimal, leading many to feel extremely pessimistic about the prospects of the new technology sector.

However, if we look back a hundred years, we would find that when generators and internal combustion engines first emerged, very few predicted that electricity would become one of the most crucial energy sources in modern life. Nobody could foresee that a hundred years later, the global number of cars would reach 500 million -- almost one car for every ten people on Earth. Therefore, in this era where technological development and promotion far exceeded that of a century ago, we have reason to believe that in the near future, all areas related to the information industry will become as essential to ordinary people's lives as food, clothing, and shelter. Thus, while outsiders may view the development of the Firefly system as having reached its peak, I see it merely as a beginning."

In the main conference room of Firefly's Burbank headquarters, under the watchful eyes of everyone, Eric looked around with a confident smile and continued, "Perhaps some may wonder, 'Eric, by openly sharing your vision for the future of the Firefly system, are you not worried about being copied?'"

Amid the light chuckles from the audience, Eric quickly shook his head. "Honestly, I'm not worried at all because companies like Yahoo, Cisco, and Nokia have already laid a very solid foundation for our future. Many of our competitors are still in a state of confusion. Furthermore, in this world, a business plan is actually a very cheap commodity. I believe everyone present could easily come up with a more reasonable and detailed business development strategy than the one I just described.

However, turning a business plan into reality requires an immense amount of investment. Throughout this process, a company often encounters technological limitations, capital interference, and the constraints of insufficient team execution. Each of these factors could cause a creative company to falter midway. But at Firefly, as long as we share a common philosophy and goal, you can fully unleash your talents, and I will do everything in my power to help eliminate all your worries. Over the years, I believe I have proven this to everyone."

"Finally," Eric said, his expression growing more serious as he stepped back slightly to address everyone, "though we may not have drinks to raise our glasses, I still wish for us to move forward together."

Applause erupted, synchronized and enthusiastic, echoing in the conference room and through the speakers of remote displays.

Following Eric's speech, executives from various Firefly system companies began to summarize the development status of their respective companies over the past year, leading into discussions on various future development topics concerning the Firefly system.

The meeting started at 10 AM PST in Los Angeles and, due to intense focus, it continued until 8 PM that evening, with no one mentioning lunch or breaks.

It wasn't until the night fully descended that, after the last discussion on mobile communication networks, Eric wrapped up in a state of eager anticipation. "Although it was brief, I must announce that today's meeting is concluded. I'm sure everyone has gained insights and benefits. I will arrange for detailed minutes of today's meeting to be sent out soon. Lastly, there is one more small matter I hope everyone can cooperate with."

...

Firefly did not hide the news of this high-level gathering from the public. However, before the media could dig into the detailed contents of this meeting, a series of sensational news stories began to emerge from various Firefly system companies.

The day after the meeting, Qualcomm's management held a press conference to announce their decision to withdraw investment from the CDMA mobile phone manufacturing plant jointly established with Sony Corporation. The two companies would no longer cooperate on mobile phone production in the future.

While Qualcomm stated that the decision was due to plans to abandon terminal products in favor of focusing on technology licensing and chip development, the timing was suspicious, especially given the recent issues surrounding the Pirates of the Caribbean script, which many noted felt pointedly targeted.

As is well known, Sony, one of the giants in the global electronics industry, had not given up on entering the mobile phone manufacturing field since the dawn of the digital age. Even when their phone business ended in failure after multiple attempts, they remained one of the most important suppliers of high-end mobile phone components, leveraging their technological advantages.

Qualcomm's collaboration with Sony on mobile phone manufacturing actually predated Firefly's investment, becoming Qualcomm's largest shareholder.

After this, due to their affiliation with Firefly, Qualcomm's relationship with Nokia deepened while their cooperation with Sony gradually faded.

At this crucial moment when all electronic manufacturers were striving to expand their mobile phone businesses, Qualcomm, which nearly monopolized CDMA technology patents, decisively kicked Sony to the curb. This was undoubtedly a severe blow to Sony's plans in the mobile phone industry.

If the termination of Qualcomm's partnership with Sony in mobile business was merely a warning, the subsequent shocking news circulating throughout Hollywood proved to be even more impactful.

In the following days, several messages leaked from within Firefly Group. It was said that the Firefly Group's core members announced that from the day Sony Pictures acquired the Pirates of the Caribbean script, all media platforms under the Firefly system -- including public television networks, cable TV, radio stations, and online portals -- would no longer accept any advertising orders for movies produced by Sony Pictures.

The severity of this news's impact on Sony Pictures could be gleaned from the breakdown of Hollywood movie marketing budgets. Typically, only 20% of a film's advertising budget is allocated to non-media channels like outdoor billboards and cinema ads, while the remaining 80% is spent on public television networks, cable, newspapers, and radio stations.

It could be said that if this news were true, even if it did not amount to being completely blacklisted, Sony Pictures would certainly struggle to distribute their films in the near future.

Moreover, it did not stop there. Not long after this news broke, major talent agencies in Hollywood began receiving notifications that, effective from the date Sony Pictures acquired the Pirates of the Caribbean script, all directors, actors, producers, and other key contributors involved with Sony Pictures films would not engage in any form of collaboration with Firefly system movie companies for the next five years.

This news undoubtedly sent shockwaves through Hollywood.

...

In recent years, Firefly's dominance in the film business meant that they held a substantial share of the most valuable opportunities for Hollywood filmmakers. If these filmmakers found themselves deprived of any directing or acting opportunities with Firefly's companies for an entire five years due to their cooperation with Sony Pictures, compounded by the marketing blockade, many promising talents could easily fade into obscurity.

Thus, the release of these two news reports sent Hollywood into a frenzy.

In a moment, all executives from Firefly Group, MGM, and Fox became targets of the media's relentless pursuit for verification of these two stories. Media from North America, Europe, and even the Far East closely followed the developments.

While no one anticipated that Firefly would react so fiercely over a script dispute, not many dared to risk personally verifying the truth of these reports.

Within just a few days, all of Sony Pictures' film projects in the early stages of preparation became stalled, as directors and actors who were previously in discussions announced their withdrawals or adopted a wait-and-see attitude.

The status of films already in production was even more dire; cast and crew alike, from directors to actors, showed little interest in continuing work.

Many leading actors began discussing whether they could terminate their contracts with Sony Pictures, while minor roles freely sought any excuse to withdraw from their projects, even offering to pay compensation if necessary, hoping to have their already filmed scenes cut from the final product.

...

Faced with such a troubling situation, Sony quickly turned chaotic following a brief initial confusion.

Howard Stringer was one of the first to react, angrily accusing Firefly Group of engaging in unfair and malicious competition, claiming that Sony Pictures would not hesitate to pursue litigation against such monopolistic practices.

However, such threats proved ineffective.

Though Firefly Group's tactics were indeed aggressive, pursuing a lawsuit over these matters was no straightforward task. The clearest loophole lay in the fact that Firefly had never confirmed the authenticity of these news reports through official channels.

Moreover, if a lawsuit were initiated, it could drag on for three to five years, and under Firefly's comprehensive suppression, Sony Pictures' ability to survive through such disputes remained uncertain.

With the senior management in Sony America reacting outrageously with no response, it didn't take long for Sony's headquarters in Japan to become restless.

This turmoil was further aggravated when Qualcomm announced its halt on collaboration with Sony regarding mobile phone production, while the Firefly Group simultaneously ceased negotiations for a contract involving the procurement of 4,000 3D projection machines from Sony. This too, was a severe blow to Sony.

RealD, a Firefly subsidiary, had originally intended to source the primary projection equipment for their 3D dual-machine system from Sony.

Sony's projection equipment, like its other electronic products, followed a high-end route. Its high prices only meant that their market share was relatively low.

Landing an order from the Firefly Group could significantly improve Sony's market share. Just by securing 2,000 units of projectors -- out of the over 30,000 movie screens across North America -- they could easily boost their share by more than 10 percentage points. Furthermore, if Firefly's '4200' project succeeded and 3D projection methods became widespread, as the main equipment supplier of the RealD system, Sony's film projection business would undoubtedly experience substantial growth.

Now, just because Sony Pictures snatched a script from Firefly Group, they faced setbacks in their mobile industry endeavors, and their opportunity for a substantial turnaround in projection equipment market share was also slipping away, let alone Sony Pictures' already chaotic status in North America. The upper management of Sony headquarters could not keep their composure any longer.

...

Playa Vista.

In the restaurant on the Titanic ship,

Kepler Hyde ordered lunch from the waiter, then looked across at Eric and said, "Is it really necessary to make such a big deal over a script?"

Eric handed the menu to the pretty blonde waitress, waiting for her to leave before grinning, "Did someone send you as a negotiator?"

Kepler shook his head, "Of course not. I know you've been dealing with a lot lately. I'm just looking out for my actors who are worried about their jobs. So, we really can't collaborate with Sony Pictures any longer?"

"Not for now," Eric replied with a smile. "You can't put me on the spot, I'll be able to resolve this in due time."

"Due time?"

Eric shrugged, "Killing Sony Pictures doesn't benefit me at all. You know, Firefly Investments just secured a large sum of cash, and if I can quickly spend some, I can avoid a lot of taxes."

Although Kepler had guessed most of it already, he still was surprised. "You plan to buy Sony Pictures?"

"Not Sony Pictures, but Columbia Pictures. I'm not interested in that unfortunate name of Sony."

"Wow, if that's the case, you'll control four out of the seven!" Kepler exclaimed, shaking his head in disbelief. "So, all this commotion has just been a bluff?"

"Of course not. The termination of Qualcomm's deal with Sony is real," Eric said. "If we don't hit Sony with a stick first, how can we make the Japanese yield? If they continue to resist, I might need to strike a few more times. Speaking of which, Sony has quite a few collaborative projects with my companies."

Kepler found himself at a loss for words, ultimately saying, "Then you still need to be cautious. It would be best not to end up losing more than you gain in the end."

"That will certainly not happen," Eric replied, shaking his head confidently.

Take Qualcomm, for instance. Both Eric himself and Qualcomm's management team had hoped to shed their terminal equipment manufacturing in favor of focusing on technology licensing and chip development.

Now, terminating the partnership with Sony for terminal devices was somewhat premature, but it aligned with Qualcomm's established development plans. Conversely, losing Qualcomm's powerful technological support in mobile communications was like a heavy blow to Sony, which was eager to break into the mobile manufacturing industry.

*****

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