Chapter 192: Taking Charge

He Guanchang was stunned, Yang Qi was stunned too, even Pan Disheng was stunned. It seemed they understood the meaning in Wei Dongling’s words, yet at the same time they didn’t. Seeing everyone’s confused expressions, Wei Dongling glanced at them sternly, his voice suddenly turning cold: “Do you know that President Xiao used to write very few scripts on the same theme? That’s because he avoided repetition—repetition is a taboo in any artistic creation!”
“This year, zombie movies are all the rage; every company is rushing to make them until they’re overdone. Next year, romance movies will be popular, and they’ll keep making those too.” Xiao Ran said this while walking over to the table under Wei Dongling’s cold tone, then slammed the table hard: “In ten years, you’ll have exhausted all themes—what will you make then?”
That slap seemed to hit everyone’s heart; they finally understood Xiao Ran’s point. In fact, they were aware of the harm caused by following trends, but not as clearly as Xiao Ran. Everyone was competing to make movies, and if they didn’t, they’d be at a disadvantage. Out of various complex motives, following trends became inevitable.
“Nobody used to plan the market—now Shadow stands up to take charge!” Xiao Ran looked proudly at everyone present, and everyone turned their gaze to him. That sense of dominating everything was truly magnificent.
“Now, I want to hear everyone’s opinion!” Xiao Ran smiled broadly as he fixed a sharp gaze on each person’s eyes, then slowly lowered his gaze and said softly, “Who is in favor? Who is against?”
Oh my god, this feeling was amazing! Xiao Ran finally understood the dominance shown by Liang Jiahui in *Black Gold* when he said those words. It was indeed dominance—but of course, Xiao Ran wasn’t referring to his own dominance. It was Liang Jiahui in *Black Gold* who was the real tough gang boss, though only on screen.
No one knew Xiao Ran’s humorous mindset, not even Wei Dongling. Yang Qi and Pan Disheng were each calculating their own interests. Although Yang Qi and Xiao Ran were friends, business matters still needed to be clear.
Yang Qi and Pan Disheng quickly saw an opportunity. The worsening trend of copying Hong Kong movies was a major reason why they were pessimistic about the future. But Xiao Ran and Wei Dongling’s proposal could clearly stop this trend—by setting a certain proportion for each genre each year, there would be no more copying.
Though they didn’t understand that coordinating genres meant diversity, balance, and allowing various genres to maintain freshness and creativity to distract audiences from focusing on just one genre, they could clearly see that it would bring only benefits to the film industry.
For Zou Wenhui and He Guanchang, they were simply surprised, as no one had ever thought of this coordination method before. And even if someone had, the gangsters wouldn’t agree to such a thing. It could only succeed now that gangsters were gradually disappearing from the entertainment industry—this was one of the main reasons why Hong Kong movies couldn’t stop copying others.

Although they knew this would mean letting Xiao Ran control the Film Association, Zou Wenhuai and He Guanchang both understood that they had no choice but to accept this proposal. After all, they were film businessmen, and profit was what mattered most. Moreover, Shadow’s capabilities were truly outstanding.

The large conference room was silent for two full minutes as Xiao Ran and Wei Dongling continued to observe everyone’s expressions, trying to determine who could be kept and who couldn’t. Those who were harmful to the development of Hong Kong cinema would be dismissed immediately by Xiao Ran. For example, if Golden Harvest refused this time, Xiao Ran would act against them right away. At this point, he wouldn’t allow any more mistakes from his backroom base.

“I agree!” Yang Qi was the first to speak. Young people really think quickly, Xiao Ran thought to himself, forgetting that he was even younger than Yang Qi. Yang Qi gently blew on the tea leaves floating on the surface before calmly saying, “This will definitely be beneficial for the long-term coordination of the market!”

“We all agree!” Zou Wenhuai and the others nodded in agreement. However, Zou Wenhuai was frustrated that Xiao Ran had taken the lead again. He didn’t intend to let this power fall into Xiao Ran’s hands and indirectly opposed Xiao Ran’s leadership: “But I think this matter should be handled by Chairman Wu, who can set the annual ratios!”

“Is that so?” Wei Dongling smiled coldly. He had long wanted to get rid of Golden Harvest, but Xiao Ran was too lenient and had always tried to leave them a way out. He waved at An Yuxuan, took a few documents, and threw them on the table: “Does Mr. Zou really think Chairman Wu knows better than us film companies what the appropriate ratios should be?”

The documents Wei Dongling handed out contained over a dozen surveys related to different proportions. This surprised Yang Qi and the others, who realized that Xiao Ran had been planning this for a long time—otherwise, how could he have produced these reports so quickly?

Comedies, police dramas, gangster films, disaster movies, war films, science fiction, art films, horror movies, and other genres were all clearly outlined in the surveys. It was no exaggeration to say that no further research was needed, as the reports already provided three ratio options for selection.

Upon seeing the detailed classifications, Pan Disheng was stunned. His Dehua studio excelled at comedies and female action films, as well as police dramas and art films, but barely touched on other genres. This meant he would have to coordinate these ratios with other companies or simply shoot other themes.

Thinking of this, he couldn’t help but question, “Hong Kong simply can’t afford to produce war films, disaster movies, or science fiction—why include these ratios?”

Xiao Ran, who had already sat down, replied calmly when he saw Pan Disheng ask, “Who said Hong Kong can’t produce these three types of films? If we want to compete with Hollywood, we must have these films; otherwise, we’re just waiting for Hollywood to take over the market!”

“I forgot to tell everyone one thing…” Wei Dongling’s rough voice suddenly emitted a bell-like laugh, almost making Xiao Ran kick him: “A science fiction film produced by Shadow with a production cost of 80 million has already started shooting!”

Eighty million! Hiss! The conference room fell silent instantly. If one could hear thoughts, Xiao Ran and Wei Dongling would surely be able to hear everyone taking a deep breath in shock. Everyone thought Xiao Ran must be crazy—could investing eighty million ever recoup the cost? Moreover, there had been no news of any financing partners for Shadow, which meant it was an independent investment. That was truly terrifying!

Eighty million! It was an insane amount. Even more than a decade later, eighty million would already be considered a huge investment, let alone now. But then they thought of Shadow having up to one billion in liquid funds for film production, and they felt relieved. Only Shadow would dare to invest so much.

For Yang Qi and Pan Disheng, two young entrepreneurs, it was even more shocking. It wasn’t the amount that shocked them, but the fact that Xiao Ran was always ahead of everyone else. While they were investing in films worth a few million, Xiao Ran was already investing twenty to thirty million. When they started working on films worth ten to twenty million, Xiao Ran was already making films worth eighty million. Continuing like this, they simply couldn’t keep up with Xiao Ran’s pace.

They also understood that to reap the greatest benefits, one had to be at the forefront. Now, Xiao Ran was ahead in everything—film quality, box office performance, and even the development of overseas markets. What could they do to keep up or even catch up with Shadow? That was what they would need to consider.

“If anyone is curious, I think that film will probably be released during the summer vacation. If you’re interested, you might want to give it a watch!” Xiao Ran smiled satisfactorily. This was exactly what he wanted. He wanted to use substantial profits to motivate other film companies to improve their competitiveness.

“But here’s what I want to make clear!” Xiao Ran swept his gaze around the room, making everyone instinctively shrink back. “Every industry has its own rules. Whoever dares to break them will be kicked out!”

Just by looking at the expressions of the others, He Guanchang knew that Golden Harvest’s days were over—there was no chance of recovery. Now, under Shadow’s competition, Golden Harvest had fallen to the same plight as Shaw Brothers in previous years. If it weren’t for loyal veterans like Hong Jinbao and Cheng Long holding it together, the Golden Harvest empire might collapse at any moment.

Thinking of this, He Guanchang sighed deeply. Now, even the Film Association was indirectly under Xiao Ran’s control. The implicit message in Xiao Ran’s words earlier was: I set the industry rules, and whoever dares to break them will be eliminated!

At this moment, he couldn’t help but consider retiring. Back then, they had been loyal veterans of Shaw Brothers, high-ranking executives, who eventually defected en masse. They were young and full of energy, using their vigor and vision to force their former employer, Shaw Brothers, to halt production and end its decades-long dominance in Hong Kong cinema.

And now, Shadow’s emergence was like Golden Harvest in those days. No, it was even more fierce. In just three years, it had pushed Golden Harvest from its peak to the bottom. Golden Harvest had now become complacent, lacking the drive and ambition to innovate, content only to maintain its status. Its fate was doomed to be the same as Shaw Brothers’—to withdraw from the Hong Kong film scene.

No one can compete with Phantom anymore. Last year, Phantom accounted for over 70% of film distribution in the Hong Kong film market. And this is only for Southeast Asia, not including the Chinese mainland or Europe. If Europe is included, it’s even 100%, as all films released there last year were distributed by Phantom.

Seeing everyone agree, Xiao Ran and Wei Dongling exchanged a look and smiled relievedly. In this way, if they could take control of the Hong Kong film industry, Phantom would truly become its leader. Once they had control, Xiao Ran would be at ease—he could easily guide other companies in the right direction.

However, there were still some obstacles interfering with this plan. Xiao Ran hesitated about whether to shut downJiahe altogether, but it would be a shame for such a established company to fall into his hands. Besides, He Guanchang was actually a decent person, so Xiao Ran felt reluctant to do that.

“The second item on today’s agenda is to discuss film release issues with everyone!” Xiao Ran glanced around again. There were still many problems in the Hong Kong film industry, but they needed to be solved step by step. “As we all know, box office revenue is one of the main sources of income for companies…”

It wasn’t just one of the main sources—it was the main source! No other company could achieve the same profits as Sihai in video tape distribution. Moreover, Sihai must have made huge profits from video tapes smuggled to the mainland alone. The video tape industry was extremely profitable, with margins of 700–800%. After deducting various expenses, companies could still make profits of 400–500%. It was only because the volume of video tape distribution was still small that it lagged behind box office revenue (including overseas sales).

“But in the film market, it’s common to see two companies competing fiercely.” Xiao Ran stared at He Guanchang. Although this statement wasn’t specifically aboutJiahe, it certainly applied to them. “Is this profitable? Or do you think such self-destruction is entertaining?”

Xiao Ran pointed out a key issue: films released around the same time could indeed affect each other’s box office performance, which was undeniable. Otherwise, there would be no need for companies to release their best films during the summer and Spring Festival!

Such competition was inevitable. Even Phantom sometimes had to suffer losses by pulling back a film with potential box office success just because a new film arrived. Even more extreme cases occurred where Phantom fought against itself.

The most typical example was last summer’s《A Chinese Odyssey》and《The New Dragon Inn》. If not for the huge hype generated by《A Chinese Odyssey》and the efforts to break box office records by keeping some theaters showing it, it wouldn’t have been difficult for《The New Dragon Inn》to reach over 40 million in box office earnings.

It was somewhat like the former dragging down the latter, with other common scenarios being borrowing from one area to cover another. Simply put, a film expected to earn over 20 million had to give way to another film expected to earn 30–40 million due to scheduling conflicts—essentially using the profits from the former to support the latter.

Don’t think box office revenue is unimportant; in fact, for the vast majority of audiences, it is the key measure of a film’s quality. When a film has high box office earnings, it naturally attracts curious viewers. Moreover, high box office revenues allow for higher prices for home video releases or overseas distribution, with obvious benefits.

Even Phantom’s own films often face fierce competition, let alone those from other companies. Clearly, everyone wants to solve this problem. Not everyone is as competitive as Xiao Ran and Hai Le; in business, it’s better to seek profits amicably rather than necessarily trying to defeat rivals.

Li Xingguo stood up again, excitedly asking, “President Xiao, do you have a way to solve this problem?”

Li Xingguo’s Meiya International Group is still weak in distribution, though production is an important part of its business. For example, Tianxia Film Company, which left a deep impression on Xiao Ran, is one of its subsidiaries. So, it’s entirely reasonable for Li Xingguo to be concerned about this.

Everyone also turned their attention to Xiao Ran. If he could truly solve this issue, everyone’s profits would surely increase each year. Xiao Ran smiled, tapping lightly on the table as he gazed at Yang Qi and the others and said, “Actually, it’s not difficult to implement. As we all know, comedies and action movies target different audiences, so their impact on each other is minimal. We can coordinate the release schedules to avoid overlapping with similar films from other companies, thus preventing losses!”

Li Xingguo had expected Xiao Ran to have some brilliant idea, but was greatly disappointed by his answer. In fact, this approach isn’t impossible, and companies with good relationships are already doing it. However, what Xiao Ran wanted wasn’t just a small group of companies working together—it was coordination across the entire film industry, as everyone had different priorities.

“During the summer and Spring Festival seasons, each theater chain can show at least two films simultaneously. With four theater chains in Hong Kong, that means as many as sixteen films can be released during these two peak seasons!” Xiao Ran smiled faintly. There are sixty or seventy cinemas in total, so showing four films at once isn’t a big issue, let alone two.

However, those four films are only referring to those from other companies. For Phantom, this number is just barely sufficient, as the films released during peak seasons are all high-budget commercial productions carefully crafted by Phantom, with strong box office appeal.

Take last year as an example—the top ten highest-grossing films all started at 30 million in earnings. Phantom had seven films on that list, while the other three major companies each had one. Cheng Long was the first to be excluded from the top ten list. It’s no exaggeration to say that Phantom almost monopolized the market last year.

With such calculations, everyone became inspired and wanted a share of the peak-season market. But smaller companies outside the four major firms knew that these peak seasons were usually reserved for them, and it was very difficult for them to get a chance.

“As long as we can stagger the release dates, any schedule can avoid fierce competition to the greatest extent!” Xiao Ran looked around; everyone was thinking. It wasn’t impossible at all—what was needed was for everyone to be willing to make concessions! Of course, those who weren’t willing to compromise could fight it out; Xiao Ran didn’t care about that. “Try to stagger the release dates of films of the same genre so as to maximize profits!”
This idea made sense, and quick agreement was reached. Next, Xiao Ran brought up something quite important. In his view, its importance was no less than that of coordinating film themes: “The third thing is that I require all companies to maintain a ratio of actor salaries to production costs of at least one to four!”
Everyone was immediately shocked. What a joke—one to four! Xiao Ran was well aware of how high star salaries were these days; the salary for a star in a film usually exceeded two million, not to mention the costs for extras and supporting actors. This was essentially forcing other companies to raise their production costs to at least ten million.