The so-called Family Entertainment Department includes the operation of movie merchandise, the distribution of DVDs and videotapes, revenue sharing from films on television platforms, and the sales of products such as DVD players and game consoles.
MGM Studios, once one of Hollywood's Big Eight, enjoyed decades of glory. Although it is now in decline, with a low annual profit and overall strength far inferior to the current Hollywood Big Six, it has a solid foundation!
It possesses a film library of 4,000 movies;
It owns the copyrights to a host of globally renowned classic films such as "Gone with the Wind," "The Wizard of Oz," "Tom and Jerry," "James Bond," "Rocky," "Rain Man," and "One Flew Over the Cuckoo's Nest;"
More than 170 Academy Awards;
All of this speaks volumes about MGM's past glory.
Even though MGM's annual production of new films is low and its box office performance is dismal, the revenue sharing from its 4,000-film library, licensed to various television platforms, exceeds $45 million annually.
Kyle thought to himself, "It's the late 90s now. Although DVDs are emerging, they haven't yet become mainstream. After 2001, MGM's annual revenue from DVD licensing alone will increase further, reaching over $70 million."
"MGM, valued at $2.85 billion, has a film library worth $1.8 billion."
The number of films in a library is the foundation of a film company.
Furthermore, a massive film library can consistently generate tens of millions of dollars in annual profit for the company.
How could Kyle not be tempted?
"Even if DVDs become sluggish after 2010, there are still online video and streaming websites. Licensing film and television copyrights then will generate another substantial income."
Tsk, tsk, tsk~
Kyle had long coveted this.
Of course, the establishment of the Family Entertainment Department, as mentioned by Hashimoto Taro, also includes the sale of electronic products and DVD players.
In this regard, Kyle's Golden Dawn Entertainment Group is at an absolute disadvantage.
Why did electronics giant Sony acquire Columbia Pictures?
Was it to make movies?
Nonsense!
The giant Sony didn't even care about the meager profits from movies!
They acquired Columbia simply to open up the North American market, promote their electronic products, and better market their brand.
"Boss, acquiring film and television copyrights is imperative."
Hashimoto Taro solemnly said, "I am Japanese, and through my intelligence channels, I know that Japan's two major electronics giants, Sony and Toshiba, are currently researching higher-performance, higher-definition DVD players. When the time comes, to compete for the market, they will inevitably try to win over a large number of allies, and film companies with numerous film and television copyrights will undoubtedly seize the opportunity to make a fortune."
"Our Golden Dawn Entertainment Group must not miss this opportunity to make money and enhance our influence."
As his voice fell,
Kyle's heart was like a raging storm, unable to calm down.
Holy crap!
"Hashimoto Taro is amazing!"
"He actually foresaw the future format war between Sony's Blu-ray DVD and Toshiba's HD-DVD? The struggle between the two electronics giants over DVD formats had an extremely wide-ranging impact, with almost all Hollywood companies being courted by one side or the other."
"The DVD format war was as intense as a financial war!"
"Perhaps even more so."
"However, in the end, they were all losers because internet video and streaming websites rose to prominence!"
"Sony and Toshiba suffered heavy losses in the DVD format war, but the major Hollywood companies made a fortune, raking in huge profits."
MGM joined the Sony camp, earning $470 million;
Warner joined the Sony camp, earning $540 million;
Universal joined the Toshiba camp, earning $610 million;
Disney joined the Toshiba camp, earning $760 million;
...After a series of maneuvers, the major film companies made a killing from just licensing their film libraries, and in addition, they also made another tidy sum from DVD sales revenue sharing.
Kyle was unwilling to miss out on such an effortless way to make money.
"Boss, while giants like Sony and Toshiba, who manufacture DVD players, have not yet begun their copyright acquisition plans, if we intervene now, it will undoubtedly bring extremely generous returns to the company a few years from now."
"Boss, please approve my request!"
What could Kyle do?
Of course, he agreed to it!
"Hashimoto Taro, I basically agree with your idea."
Kyle said in a deep voice, "I will bring this up at the upcoming group meeting, but you must provide me with a complete plan."
"Yes, boss." Hashimoto Taro was instantly thrilled.
After he left,
Kyle couldn't help but sigh with emotion.
"Amazing!"
"Everyone in Hollywood is a shrewd operator."
"Hashimoto Taro isn't content with just being the president of SpongeBob's House. By suggesting the formation of a family entertainment department and expanding the company's film library, isn't he just trying to advance further?"
"Ho ho, none of them can be underestimated!"
Never underestimate the ambition of a professional manager to climb higher!
In fact, that was the case.
Who in the entire group isn't eyeing the position of Group CEO Victor now?
Which of Donna Langley, Kevin Feige, Alexander, and others doesn't want to rise to power and replace him?!
Furthermore, it's not uncommon for more ambitious professional managers to try and kick the company owner out.
Isn't the current internal struggle at Disney exactly like that?
Michael Eisner of Disney, through a series of tactics, continuously purged the Disney family's power and influence within the Disney Group. Of course, he ultimately failed, but he came very close to succeeding.
How arrogant was Steve Jobs once!
But wasn't he also kicked out of Apple?
Of course, he has now returned to Apple and holds power, but his shares in Apple are pitifully small, only 0.8%.
That's right, less than 1% of the shares!
At this moment, while Kyle employed Hashimoto Taro, Victor, Donna, and others, he would never underestimate their ambitions and would always remain somewhat wary.
"Heh heh, I'm not without options. As long as Golden Dawn doesn't go public right now, none of them can do anything to me." Kyle's lips curved upward...
A few days later.
The group's January regular meeting was held as scheduled.
"My Big Fat Greek Wedding" was scheduled for release on February 14, 1999;
"300" was scheduled for release on April 7, 1999;
These two projects were key focus areas for the group recently, and Kyle and others repeatedly mentioned them during the meeting.
"Finally, Mr. Hashimoto Taro submitted his idea of establishing a Family Entertainment Department to me a few days ago. What are your thoughts, everyone, feel free to speak up," Kyle said with a smile.
As his voice fell,
The executives present all began to whisper among themselves.
Mr. Bill, President of Page Pictures: "I agree. Looking at the major Hollywood companies, which one doesn't have a large film library? Our Page Pictures currently has less than 20 film and television copyrights, and we are always inferior to those film companies."
Kevin Feige, Vice President of Page Pictures: "I also agree. A massive film library is both the company's foundation and a guarantee of stable profits."
Domino of Golden Dawn Music: "I also agree. And it's not just film and television copyrights that need to be acquired; our music company's copyrights also need to be expanded."
Donna Langley nodded, "Expanding the film library can bring more film and television broadcasting rights to our WB Television Network and UPN Television Network. I have no reason to object."
The vast majority of the company's senior management agreed to the proposal to establish a Family Entertainment Department.
However!
There was one problem everyone had to face!
That was money!
Acquiring a large number of film and television copyrights required a considerable amount of money!
"In that case, I have decided to raise $100 million from the group's account for the acquisition of film and television copyrights and to expand the company's film library."
Kyle then looked at Hashimoto Taro: "This matter is entrusted to you, Mr. Hashimoto."
"Yes, boss."
Hashimoto Taro repeatedly assented.