Chapter 312 — The Coming Transformation
Inside the InterContinental Osaka, Aaron sat down for dinner with Dawnlight executives Jessica Parker and Tom Rothman.
"Panasonic wanting to retain part ownership in a Hollywood studio group is probably tied to the upcoming video disc business," Aaron said thoughtfully.
He had already seen where things were heading.
With China's VCD market exploding, there was no way American and Japanese corporations would ignore such an enormous opportunity.
Just as Philips and Sony had jointly proposed the MMCD multimedia disc standard—
Toshiba and Panasonic had introduced the SD standard.
Both were competing next-generation DVD technologies.
Tom Rothman nodded.
"VCDs are performing incredibly well in China."
"VCD players and discs are dramatically cheaper than VHS players and videotapes."
"And the DVD technology evolving from VCD offers much sharper picture quality and much larger storage capacity."
Panasonic clearly didn't want to leave Hollywood entirely.
They intended to maintain influence within MCA.
"VCD… DVD…"
Aaron smiled faintly.
"A massive transformation in Hollywood's home entertainment industry is about to begin."
Philips owned PolyGram.
Sony owned Columbia Pictures.
Toshiba was one of the shareholders in Time Warner.
Panasonic's intentions could not have been more obvious.
Jessica Parker suddenly added:
"A while ago, Michael Ovitz arranged a meeting between Edgar Bronfman Jr. and Yoichi Morishita."
"But based on what we've gathered, the talks don't seem to have gone very far."
Aaron narrowed his eyes.
"Hmph."
"Seagram is just a liquor company trying to force its way into Hollywood."
"Let's see how much blood they're willing to spill for it."
Jessica then remembered something else.
"Oh right—we've officially acquired another 10% of America Online from Paul Allen."
Aaron nodded calmly.
"AOL's future potential is limitless."
"It'll turn out to be an excellent investment."
---
Not long afterward, Norika Fujiwara came to Osaka and spent three days with Aaron.
Afterward, Aaron flew to Hong Kong.
Since he had been closely monitoring the VCD industry, he later traveled with Joey Wong from Hong Kong to Beijing.
At the time, China still had virtually no private business jet infrastructure.
Even Aaron's Gulfstream IV had difficulty obtaining clearance to enter mainland China.
As a result, the two flew commercially into Beijing Capital International Airport instead.
Early winter in Beijing had already turned bitterly cold.
Aaron and Joey checked into the newly opened Beijing Hilton.
"Hm? That's a poster for The Fugitive?"
On the drive from the airport to the hotel, Aaron spotted a massive poster of Harrison Ford outside a Beijing cinema.
There was even a long line stretching out in front of the theater.
"Yeah," Joey explained from beside him.
"The Fugitive is the first imported revenue-sharing blockbuster."
"It's currently screening in six cities including Beijing and Shanghai."
The film had originally been released by Warner Bros. during the previous summer.
Starring Harrison Ford and Tommy Lee Jones, it had earned $180 million in North America and roughly $360 million worldwide.
Aaron stared thoughtfully out the window.
"Only six cities?"
It was obvious there had been intense internal debates just to allow imported revenue-sharing films into the market.
"The response has been incredible," Joey said with a shake of her head.
"The popularity of The Fugitive is on an entirely different level compared to domestic films."
"The official policy has already been announced too."
"From now on, China will allow ten imported revenue-sharing films each year."
Then she looked toward Aaron.
"So… will Dawnlight films be included too?"
Aaron shook his head slightly.
"Hard to say for now."
"But I think there's a good chance."
"Last year Dawnlight released Speed and The Mask of Zorro—both were excellent action blockbusters."
"They don't involve political issues or sensitive subjects."
"But ultimately, it'll still depend on decisions made over here."
After all, to mainland China at the time, even Hong Kong films were considered imported blockbusters.
And with only ten revenue-sharing import slots available each year, the competition was fierce.
On top of that, China's version of "revenue sharing" was vastly different from international standards—foreign studios received only 13% of the box office instead of the usual 35% overseas distributors were accustomed to.
Not to mention that mainland China's film market was still tiny by global standards.
Hollywood simply didn't consider it important yet.
---
That year, Wan Yan had already produced tens of thousands of VCD players.
But because there still wasn't enough content available, the company focused heavily on market expansion instead.
They acquired large numbers of video and audio retail stores to distribute VCD music albums and films.
"So," Aaron asked casually, "have pirated VCDs started appearing yet?"
Inside the bedroom of the Beijing Hilton, Aaron leaned against the headboard with Joey Wong in his arms.
"They already have," Joey replied.
"In the coastal cities especially, there are already plenty of pirated VCDs floating around."
"But right now there still aren't many movies available, and VCD player sales are only average."
As she spoke, she turned and kissed Aaron several times on the cheek.
Aaron chuckled softly.
"It won't stay that way for long."
"VCDs are far cheaper than videotapes."
"Once the market explodes, American films and Hong Kong blockbusters will flood everywhere."
Joey wore a seductive silk nightgown that only made her more alluring.
Aaron slipped a hand beneath the fabric, gently caressing her soft skin.
"You shot another movie in Hong Kong during the second half of this year, didn't you?"
"Mhm," Joey murmured, her breathing growing heavier as she rubbed against him.
"Oh right—I heard The Blood and Tears of Chinese Laborers went over budget?"
Aaron laughed lightly.
"Nothing serious."
"We increased the budget and the film has already wrapped."
"Total investment came to eighteen million dollars."
"Eighteen million?" Joey stared in surprise.
"That's around 140 million Hong Kong dollars!"
"It's fine," Aaron replied casually.
"Besides, Jackie Chan already made Dawnlight more than ten million dollars in profit this year with Rumble in the Bronx."
Before she could respond, Aaron leaned in and captured her lips in a passionate kiss.
As the silk nightgown slipped away, he pressed her gently beneath him.
"Next year, Dawnlight is producing a Hollywood action-comedy for Jackie Chan called Rush Hour."
"I'll arrange a role for you in it."
Joey wrapped her arms tightly around Aaron.
"So Rush Hour starts filming next year?"
"That's right."
"We'll shoot it next year and release it the year after."
"A real mainstream Hollywood commercial film starring Chinese actors."
Joey bit her lip softly.
"Jackie Chan also filmed a racing action movie this year called Thunderbolt in Japan and Southeast Asia—you know about that, right?"
"He even went to America for location shooting."
"The budget reached 200 million Hong Kong dollars, and New Line Cinema already bought the North American distribution rights."
Aaron smiled.
"Dawnlight still has several Hong Kong martial arts films waiting for release too."
"Movies starring Jackie Chan and Jet Li."
"We're not lacking Chinese-language films."
"But Hong Kong cinema has already started shrinking in output."
"You can slowly transition into Hollywood."
"As long as I'm here, none of it will be a problem."
"Mhm…"
Joey suddenly flipped over and straddled him, her long hair cascading down around her shoulders.
"If Hong Kong's film market really declines," she whispered, "then I'll go to Hollywood and stay with you."
Aaron gently stroked her flawless body.
"You can come over anytime."
"If you want to act, then act."
"And if you don't, then just relax and enjoy life…"
(End of Chapter)