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Text Chapter 291 In-depth Cooperation

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    There are definitely many benefits to cooperating with Twentieth Century Fox, especially for a company like DreamWorks. Being able to tie a big leg like Twentieth Century Fox is definitely good news.  This is definitely not a lie, but a fact.  Just look at the situation here in Hollywood to know how powerful Twentieth Century Fox is.  The reason why DreamWorks has not had any external troubles until now is that when DreamWorks first paved the way, it was led by Twentieth Century Fox. The reason why Jiang Zhiqiang was able to quickly turn over the channels in North America  To get it done, it was actually thanks to the help of Twentieth Century Fox. Otherwise, no matter how powerful Jiang Zhiqiang was, it would have been impossible to open the market so quickly.  And now if the film and video channels in Europe also cooperate with 20th Century Fox, it will be considered a worry for Jiang Zhiqiang.  Although 20th Century Fox is not very strong in Europe, it is even being suppressed by local film companies.  "But this is a bad start for a behemoth like Twentieth Century Fox. For a small shrimp like DreamWorks, Twentieth Century Fox's signature brand is too big.  Although it is not safe for a company to put such important resources as channels in the hands of others, and they are such a giant, if they are not careful, they will be swallowed up by others.  But the problem is that the situation in Europe is very complicated. Even if Li Mingbao adjusts DreamWorks' business now, there is no hope of getting involved in Europe within five years.  Therefore, it is a complete waste to put this power in DreamWorks. It is better to leave it to 20th Century Fox to operate it, which will have good results. Their channels are not as fragmented as Jiang Zhiqiang negotiated in Europe.  To distribute a movie, you need to talk to countless companies.  Even if it is an old partner, it will take a long time to discuss. From the beginning of preparation to the official release of a movie, in Europe, with Jiang Zhiqiang's strong connections, it will take at least three months to complete it.  Pave the way.  And if it were completely handed over to 20th Century Fox, it wouldn't take such an exaggerated time. They have complete channels there. As long as the distribution is officially confirmed in the United States, whether it is a movie release or a video tape release, it will reach the end consumer.  It will not take more than a month at most to get the product in the hands of the buyer.  Even if the demand is large and the market capacity is small, it can be completed in half a month.  In this way, Jiang Zhiqiang was completely freed.  You must know that doing business in Europe is quite troublesome. Jiang Zhiqiang's work in the United States requires at least one-third of his time going to Europe.  But Jiang Zhiqiang did not dare to give up the market there. Although the affairs there were more complicated, the money earned in Europe, especially in markets like the horror films that DreamWorks focuses on, was higher than in the North American market.  Get up, it will be better.  If it weren't for the fact that they didn't establish their own channels, a large part of the profits would be swallowed up by local distributors. The profits in Europe would be even higher than those in Hollywood, but even if the profits are  After swallowing it, the income there is not a small amount.  From the opening of DreamWorks to the present, there are only five DreamWorks movies released in Europe, but even these five movies have made a profit of 20 million US dollars. The average profit of a movie is  There are four million US dollars, and this is before the video tape market is fully developed.  If the video tape market expands, then the revenue of a movie there will definitely not be less than 10 million US dollars.  Such income is quite good even in Hollywood.  After all, DreamWorks' movies are all low-budget. With an investment of one to two million US dollars, they have made so much in the North American market and so much in the European market. The profits are absolutely enviable.  "If we cooperate with 20th Century Fox, we will release movies faster, the funds will be withdrawn faster, the benefits will be more obvious, and the workload will be reduced a lot. Such a good thing is definitely a win-win situation."  "But Jiang Zhiqiang has to pretend to be somewhat difficult, otherwise 20th Century Fox will think that such cooperation is easy and won't cherish it when the time comes, and it will be troublesome.  So after John spoke, Jiang Zhiqiang pretended to be distressed and said: "Cooperating with 20th Century Fox is beneficial to both of us. If I had known this news earlier, I wouldn't have had to work so long.  . But it¡¯s a pity that you said it too late, Mr. John. I have signed many contracts with companies in Europe, and the price to break the contract will be too high.¡± Hearing what Jiang Zhiqiang said, John became anxious.  : "What kind of contract did your company sign with the distributor in Europe?" "Short-term contract, that is, a contract for one movie at a time. If the other side agrees, we will"Contract, if you don't agree, it won't be issued.  Our company has signed a contract with them for ten movies, and five have been released so far. The remaining five movies will be released slowly in the next time, which will take about half a year.  "Jiang Zhiqiang answered honestly. "Hearing what Jiang Zhiqiang said, John finally breathed a sigh of relief. Fortunately, the contract DreamWorks signed with there was not an exclusive agency contract, otherwise it would have been with Twentieth Century Fox.  There is basically no chance of cooperation unless we wait until the contract time is up before making plans. But since it is a short-term contract, there is still a possibility of cooperation between 20th Century Fox and DreamWorks, so John said: "  It's just a short-term contract, nothing to be afraid of. There are only ten movies anyway, and your DreamWorks has produced more than twenty movies now, right?  After the contract for these ten films is completed, the distribution in Europe can be handed over to 20th Century Fox. Judging from our previous cooperation, it will definitely be quite pleasant.  " Li Mingbao listened to the side and now understood what John and Jiang Zhiqiang were talking about. When he heard John's words again, Li Mingbao spoke: "Of course, we have a good atmosphere of cooperation, plus  New cooperation is not a big deal. If you need it, we can even sign a three-year exclusive agency contract. What do you think of such a commitment, John?  " "This is good, but the question is whether your DreamWorks movies can meet the requirements we need. If we become an agent for movies that cannot meet the requirements, won't we be losing money?  "John is not an idiot who doesn't understand anything. The power of exclusive agency has both advantages and disadvantages for 20th Century Fox. The advantage is that if DreamWorks' movies continue to maintain their current level, then after acquiring this agency right,  , Twentieth Century Fox will make a lot of money, but if it cannot maintain the current level, then it will be some bad movies, and Twentieth Century Fox may not be able to recover the cost by then.  With this power, John is very cautious and directly doubts the production level of DreamWorks. Although the level of DreamWorks is quite good until now, no one can guarantee that there will be accidents. In business, John does not want to be blamed for his sloppiness.  Pay the bill. After hearing what John said, Li Mingbao also knew what John was worried about, so he said quite seasonedly: "The power of this exclusive agent does not include unprincipled distribution of movies. At this point, Hollywood  We have our own rules. Only films that are agreed upon by both parties can be exclusively represented. I understand this, and I won¡¯t make it difficult for you, John. You can write this in the contract.  Cooperation is about a win-win situation. If there is any unpleasantness, wouldn't it make both of us unhappy?  " John was afraid that Li Mingbao didn't understand the rules, so he put forward this condition. Unexpectedly, Li Mingbao also understood this truth, so John followed suit and said: "In this case, let's talk about this cooperation issue when we have time.  " Jiang Zhiqiang is also very excited at this time. If this matter is really negotiated, DreamWorks' expansion in Europe will be much easier. And 20th Century Fox's exclusive agency for European business will also  Indirectly proving the excellence of DreamWorks, not every Hollywood company can obtain such conditions, let alone an outsider like DreamWorks. ¡°I believe in this cooperation, John.  You will definitely not suffer.  DreamWorks discovered that now, our company has also discovered that the path DreamWorks is taking is quite correct.  So I have made new arrangements for DreamWorks. Maybe there will be big-investment movies in the future, and we will definitely strengthen our cooperation by then.  "Li Mingbao timely proposed that DreamWorks' business direction has changed. Regarding this point, this is what Li Mingbao really wants to say to John today. After all, DreamWorks' current relationship with 20th Century Fox is not ordinary, and the business direction is different.  For all the changes, we have to say hello to John. Even in terms of selecting managers, DreamWorks has to rely on the connections of Twentieth Century Fox. DreamWorks is new to the company. If we want to find a truly suitable person, we still need John.  Such an old man comes to help. As a local snake and a local snake giant, John must know better than Li Mingbao and Jiang Zhiqiang what kind of abilities the people in Hollywood have. Let John recommend people. Compared with Li Mingbao and others, they are random.  The goal is much smaller. In addition, the graduates from Harvard Business School actually need John's help, so Li Mingbao is going to give John a thorough explanation today. John is a little surprised to hear that DreamWorks is going to get involved in large-scale investment movies.  , you must know that DreamWorks has given the impression to outsiders that it only makes low-cost movies. Suddenly it wants to make big-budget movies. Such determination can beSmall businesses, and even the company's business direction, must undergo fundamental changes.  Although the returns on large-scale investment movies are huge, if one of them is not good, the losses will be huge.  Even among the large local film companies, there are very few, if not none, involved in this area, but they are very cautious when they do get involved. They make one or two movies in a few years and make money, and they are naturally happy.  But if you lose money.  At least 70% of the large film companies that fail in Hollywood every year are forced to exit because they invested in large-budget movies and suffered serious losses. Therefore, the risks of large-budget movies are quite high.
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