The Big Hustle

Weinstein was exceptionally bullish on Tai Chi. Kung fu films might not be mainstream in American theaters, but he knew there were niche audiences who adored Chinese martial arts movies—like the Black community in Los Angeles, who idolized Bruce Lee. In the past, he wouldn't have been able to do much with that, but times had changed. Because now there was a new medium: videocassettes! As the most developed nation in the world, the United States was also seeing the fastest growth in the home video industry. Weinstein's goal was to secure all North American rights to Tai Chi; even if its theatrical run fell flat, he could still distribute it through video rights. Holding onto a sliver of hope, he asked, "Chen, can you tell me who bought it?" "20th Century Fox! As for the exact amount, I'm afraid that's confidential." "Of course, I understand. What about the rights to Tai Chi in Western Europe...?" "Sold!" "Australia?" "Sold too!" "What about home video?" "All sold!" Chen Qi broke into a warm smile and said sincerely, "Mr. Weinstein, I really have to thank you for showing such great faith in the film. Because you offered two million US dollars for Tai Chi, you caught the attention of the major Hollywood studios. Otherwise, I wouldn't even have had the chance to negotiate with them. Major Hollywood studios truly don't mess around. The moment we sat down, they bought up all the remaining rights. Sigh..." "..." Weinstein had half a mind to slap him across the face, but the young man's expression was so earnest and heartfelt, like an innocent lamb fresh to the world who had just crossed paths with his greatest benefactor. He had no choice but to force a tight smile and say, "You're certainly lucky. I hope that luck holds up." "That'll depend on your continued support! I'm truly sorry about how things turned out this time, but I hope we'll have a chance to work together in the future." *Hmph!* Weinstein mumbled a few polite brush-offs, in no mood to linger, and stomped down the stairs. After walking a few paces out on the street, the biting wind cleared his head. The more he thought about it, the more suspicious it seemed. Suddenly, his steps halted, and the flab across his entire body began to quiver with rage. He ripped his hat off, slammed it onto the ground, and kicked a lamppost with all his might, cursing, "Fuck! I might have been conned! That yellow bastard was playing me!" "Boss?" His assistant asked, bewildered. "He never intended to sell to me—not from the very beginning!" As the realization sank in, Weinstein's face contorted into something hideous, like a melting wax sculpture. He grabbed his assistant by the collar in a death grip and roared, "Find out! Ask everyone you know—find out how much 20th Century Fox actually paid?!!" *** Wind back the clock. In the 1950s and '60s, Hollywood suffered through McCarthyism and the onslaught of television, plunging into a prolonged slump until its revival in the 1970s. Emerging visionary directors like Francis Ford Coppola, Steven Spielberg, and George Lucas stepped onto the scene, ushering in the New Hollywood era. During this period, Hollywood commercial cinema grew increasingly sophisticated, and its studio system expanded rapidly, gradually achieving broad appeal across all demographics. Only the Cold War division between the two global blocs prevented its reach from blanketing every corner of the earth. When the Soviet Union collapsed in the early 1990s and the socialist bloc crumbled, the final barrier dissolved, allowing Hollywood to conquer the global market as a matter of course—which would become one of the factors behind the decline of Hong Kong cinema. Take 20th Century Fox: just a few years earlier, its fortunes had been in a wretched state, only to turn things completely around thanks to the epoch-making Star Wars, restoring its stature as a major studio. Steven Roberts, in his thirties, oversaw Fox's overseas business—young, capable, and possessing a sharp eye. After scoping out the market in Berlin, he found Tai Chi to be the only film worth acquiring, so he came in person to negotiate. Seeing Chen Qi took him aback; the young man was even younger and more capable than himself. Knowing Warner Bros. had already tried and failed to reach an agreement, Roberts figured he was dealing with a tough customer. After a few polite pleasantries, they cut straight to the chase. Roberts tabled his offer: "North American rights, two hundred thousand US dollars!" "You must be joking. That price is completely out of the question. Yesterday, an American outfit called Miramax came by and offered a cool two million. If you're not going to be serious, there's no need to continue." "Two million?" Roberts was astonished. After a moment of thought, he chuckled. "Chen, I've never even heard of that company. They must be some newborn minnow. An outfit that size couldn't possibly cough up two million dollars. He's definitely playing you!" "I don't understand all that industry talk. All I know is that your offers differ by a factor of ten. Put yourself in my shoes: who would you rather talk to?" "We are very sincere. Name your price." "Three million!" "..." Roberts stared at him in utter disbelief for a moment, then packed up his briefcase to leave. "Chen, you ought to find time to see a doctor. You truly know nothing about the international film market. North American rights have never commanded a price like that." "No, no, I meant global rights!" Roberts paused mid-motion. "Excluding the regions I've already sold, everything else—North America, Western Europe, Australia, and so on—can be yours." "That's still way too high." Roberts sat back down, slowly shaking his head. "Not high at all. Bruce Lee's kung fu movies were insanely popular. You'll make your money back with ease." "The movie business isn't run on mere words. We have to do the legwork to open up markets, and no one can predict the outcome. A two-hundred-thousand-dollar deal carries a two-hundred-thousand-dollar risk; a three-million-dollar deal carries a three-million-dollar risk. In acquiring foreign films for Fox, my top priority is minimizing risk." "But you're not limited to theatrical distribution—you have television and home video as well!" Chen Qi interjected suddenly. Roberts' eyes snapped wide, but the real shocker was still to come. Chen Qi continued, "Right now, all the major Hollywood studios have established home video divisions dedicated to videocassettes. That proves you already understand just how vast this emerging market is. "In the US, video distributors have already begun taking shape. A single tape retails for eighty dollars, while renting costs only two to three dollars. Before long, video rental stores will be sprouting up on every corner. "If you want to capitalize on it, you can manufacture and distribute the tapes yourselves. If you want to take the easy route, just license the distribution rights directly—and you won't have to shoulder any risk at all. "It's free money while you sleep. "Times have changed. A new layer has been added to the film distribution network..." Fiddling with the cup and coaster on the table, Chen Qi smiled. "In the past, films had only two revenue channels: theatrical exhibition and merchandising, just like your Star Wars and Disney. "In recent years, videocassette technology matured, opening up an entirely new revenue stream. "Going to the cinema is a passive choice. What people watch depends on what theaters decide to screen, which doesn't always cater to audiences who love niche genres, art films, or kung fu flicks. But renting a video is an active choice, making it ideal for that exact demographic. "Americans would gladly pay two to three dollars to watch a film that cost ten to twenty million dollars to make. In fact, movie fans all across the globe would. "On top of that, there's another new channel: television. "Before, telecine transfer technology wasn't mature enough, but now it is. If you sell the film to American broadcast networks, premium cable channels, hotels, and airport closed-circuit television systems, that's another substantial stream of revenue. "So, a film's distribution network now has four pillars: theatrical, home video, television, and offline merchandise!" Chen Qi looked at Roberts and said, "I don't have merchandising, but I'll give you the rights to the other three channels in their entirety. Chinese kung fu movies have a die-hard following, plenty to keep your profit pool brimming. What's more, home video has evergreen value—you can release it next year or the year after that, and there will always be fans looking to watch it. "Ten years down the line, you could even put out a Tai Chi Tenth Anniversary Collector's Edition... "Looking at it this way, is three million really too much?" "..." God as his witness! Roberts hadn't panicked this much even when his wife caught him in bed with her lover! His first reaction was: *How on earth do you know all this? Has the great United States of America been riddled through with socialist infiltration like a sieve?!* His second reaction was: *Damn it, that makes way too much sense!* Back home in China, Chen Qi had played the innocent little lamb, but now that he was abroad, why the hell should he keep pretending? Naturally, it was time to put on a grand show of mastery! What he had just laid out would be taken for granted in future generations, but right now, it was only in its infancy. Hollywood might have sensed the potential to expand this distribution web, but without accumulated experience, they had yet to establish a comprehensive system. Chen Qi had broken it down systematically, turning a single set of rights into three distinct revenue streams solely to jack up the price of Tai Chi—just as he had pitched the exact same theory to the Japanese the day before. Since he couldn't exploit those channels himself anyway, offering the insight cost him nothing; it earned him favor and built valuable connections. That was precisely how Roberts saw it. He hardly cared about Tai Chi anymore; all he could think about was that if he took this theory back and presented it to the president of Fox, his future would be limitless! "Chen, your eloquence is truly second to none. Ah..." Roberts let out a theatrical sigh. Seeing this, Chen Qi also breathed a quiet sigh of relief. Time was running out, leaving no room to negotiate country by country. Finding a deep-pocketed giant to buy the whole package was by far the best outcome. *Damn it, finally locked it down!*