Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 405, Section 403: Communication in This Era

In the third week of April 2002, while the Chinese mainland was still basking in the afterglow of "Shaolin Soccer's" North American success, box office figures from across the Pacific Ocean once again refreshed people's understanding.

According to an official briefing jointly released by New Line Cinema and Shengying Media, "Shaolin Soccer" maintained a steady box office performance during its second full week of release (April 8-April 14), despite competition from some new films, without experiencing a significant drop.

It maintained a robust output of around one million US dollars per day from Monday to Thursday, and then garnered another 9.8 million US dollars over the second weekend (April 12-14).

This caused "Shaolin Soccer" to surpass the $3500 million mark in total box office revenue after 15 days of release in North America (including the opening weekend), reaching $3951 million!
This figure not only solidified its position as the most successful foreign language film (non-English) in the North American market in 2002, but also clearly sent a signal to Hollywood and the global film market: Chinese films, at least some specific types of Chinese commercial films, have the ability to consistently generate box office revenue in the mainstream market.

Stephen Chow's "mo lei tau" (nonsensical) comedies, with their unique cultural hybridity and universal emotional core, have successfully left a distinct mark on the hearts of North American audiences.

When Wang Sheng received the briefing in his office at the Jingxin Building, he simply nodded slightly.

The market's response was exactly what he expected.

The path that "Shaolin Soccer" is taking now is very similar to that of "Hero" in the original timeline. Both benefited from China's entry into the WTO and, on the premise of ensuring their release, allowed them to enter the mainstream with their unique cultural singularities.

At this moment, Wang Sheng is more concerned about the chain reaction it brings, and how to transform this sudden "international reputation" into a real strategic advantage.

Soon, a more symbolic and practical test was presented – the domestic release of New Line Cinema's fantasy epic "The Lord of the Rings: The Fellowship of the Ring," which had achieved great success and reputation worldwide, was finally settled.

In fact, the film had already been imported by China Film Group by the end of 2001.

However, its specific release date and distribution model remained undecided for a time due to the involvement of China's newly implemented cinema system reform and the delicate Sino-US relations after its accession to the WTO.

Now, the time is ripe.

On the last day of early April, China Film Group officially announced that "The Lord of the Rings: The Fellowship of the Ring" would be released on May 1, 2002, in theaters nationwide.

This day coincides with China's Labor Day and the May Day Golden Week holiday.

More historically significant is that this film will be the first imported revenue-sharing blockbuster to be released during the prime holiday season after the full implementation of the cinema chain system reform in China's film distribution and screening system.

It is no longer the old model where China Film Group exclusively buys out the copyright and then distributes it to various provincial and municipal companies. Instead, it strictly follows the new revenue-sharing system, with the importer (China Film Group), co-distributors, theater chains, and cinemas sharing the box office revenue according to the agreed proportions.

The specific agency and distribution work for this film in mainland China fell to Shengying Media, based on the strategic cooperation agreement previously signed between Shengying Media and New Line Cinema.

There are multiple considerations behind this decision.

First, the reform of the cinema chain system was completed ahead of schedule and channels were unified.

Thanks to the successful pilot programs and experience gained from the previous two years of the four cinema chains, as well as the strong impetus from the implementation details of the Film Administration Regulations, the integration of the entire industry's cinema chains, which was originally planned to take longer, was basically completed by early April.

Thirty-one cinema chains nationwide (including those spanning and within provinces), totaling 2672 effective screens, will be incorporated into a unified computer ticketing and data statistics network by the end of the month.

This provides an unprecedented channel foundation for blockbusters like "The Lord of the Rings" that require large-scale simultaneous releases.

At that time, the film will be released simultaneously on 2672 screens across 31 cinema chains nationwide, a level of unity and efficiency never before seen in the Chinese film market.

Secondly, the unexpected success of "Shaolin Soccer" in North America acted as a shot in the arm, slightly alleviating the doubts of some at the top regarding the deep cooperation model between Sheng Ying Media and New Line Cinema.

This, to some extent, provided credibility for Shengying to take over the publicity and distribution of "The Lord of the Rings".

The deepest reason, however, stems from the general trend of the times.

Now that China has joined the WTO, it needs to demonstrate its sincerity in openness and cooperation in multiple fields.

As one of the most influential popular cultural products, film naturally becomes a "window" for expressing goodwill.

Allowing a globally acclaimed American blockbuster to be marketed on a large scale by a private company with an international perspective during one of China's most important Golden Week holidays is itself a positive sign.

To some extent, the "going global" of *Shaolin Soccer* and the "bringing in" of *The Lord of the Rings* together constitute two sides of this "small window," focusing on cultural exchange at the grassroots level while reflecting the warmth of interaction between countries in specific fields. The task was assigned to the Film Distribution and Promotion Department of Shengying Media.

The department head dared not delay and immediately organized a capable team to develop a publicity and distribution plan. However, the reality was quite challenging.

As a film that was released in most parts of the world in 2001, pirated DVDs and VCDs of "The Lord of the Rings: The Fellowship of the Ring" had been circulating in mainland China for quite some time through various channels.

For most movie fans and potential viewers, the film's plot, grand scenes, and even some details are no longer secrets.

This undoubtedly greatly diminishes the film's novelty and mystery, creating inherent difficulties for its promotion and distribution.

After careful evaluation and market research, the publicity and distribution division decided to adopt a relatively "simple and unpretentious" strategy.

Instead of investing heavily in a blanket advertising campaign, they focused their resources on a few key points:

1. Emphasizing the "Cinema Experience": The promotional focus is on highlighting *The Lord of the Rings* as a fantasy epic, emphasizing that its stunning audiovisual effects can only be fully appreciated in modern multiplex cinemas, especially in the upgraded IMAX theaters and surround sound systems of some "China Film Grand Cinemas." The main slogan is something like, "Watching DVDs at home is nothing compared to experiencing the grandeur of Middle-earth in a cinema!"

2. Leverage media reviews and awards: Extensively cite the film's high global acclaim and numerous Academy Awards (including Best Cinematography, Best Visual Effects, and Best Makeup) to emphasize its "classic" and "must-see" status, attracting viewers who are willing to pay for the "ritual" and ultimate experience even if they have seen a pirated copy.

3. Targeted Channel Targeting: Promotional materials and advertisements are focused on cinemas that cooperate with "China Film Grand Cinema", some high-end venues in core business districts, and online forums and early social media platforms frequented by college students and white-collar workers, accurately targeting the groups most likely to go to the cinema.

4. Linking with the concept of "cinema system reform": In some industry media and movie fan-oriented publicity, the release of "The Lord of the Rings" was cleverly combined with historical labels such as "a milestone in China's cinema system reform" and "the first blockbuster film to be released during the Golden Week holiday", giving the act of watching the movie a unique meaning of participating in the era's changes.

Ultimately, through coordination among all parties, despite the piracy problem, the screening rate of "The Lord of the Rings: The Fellowship of the Ring" during the May Day Golden Week was still reserved at 50%.

This fully demonstrates the theaters' recognition of the Hollywood blockbuster's market appeal and reflects the efficiency of market resource allocation under the new distribution system.

Once everything was ready, Shengying Media's theatrical film distribution and marketing division sent a formal, detailed letter to the corresponding department at New Line Cinema, following established procedures.

The official letter objectively described the challenges posed by piracy in the Chinese market, and detailed the series of promotional measures that Shengying Media had deployed, the expected number of viewers to be covered, and the astonishing opening week scale that it could guarantee with its control of cinema resources (31 cinema chains, 2672 screens).

The official letter was written in a professional yet humble tone, showcasing both the team's achievements and efforts while implicitly acknowledging the objective difficulty of exceeding expectations in the Chinese market.

New Line Cinema's response to receiving the official letter was quite calm.

For New Line Cinema at this point, the box office potential of "The Lord of the Rings: The Fellowship of the Ring," which grossed over $8 million worldwide in 2001, had already been largely exhausted in major markets.

Although the Chinese mainland market showed intriguing growth potential after joining the WTO, its total box office revenue in 2002 was only over 2 billion RMB (approximately 300 million USD).

Their internal box office expectations for "The Fellowship of the Ring" during the May Day holiday in China were around 20 to 30 million US dollars.

This is merely icing on the cake for the film's total global box office, and hardly a major contributor.

What they truly value is not the short-term profits of a single film, but the future.

By collaborating with Shengying, the Lord of the Rings, one of the highest achievements of the Hollywood industry, was successfully introduced on a large scale into a huge market undergoing profound changes. This in itself is a strategic move.

This paved the way for more of their films to be released in the future, and also demonstrated New Line Cinema's pioneering spirit and distribution capabilities in the Chinese market to other players in Hollywood and investors on Wall Street.

More importantly, this successful cultural export can win them some intangible but extremely important resources within the United States.

For example, the Motion Picture Association of America (MPAA) welcomes breakthroughs by its member companies in emerging markets, as this gives it more compelling arguments and case studies when lobbying the U.S. government to formulate foreign cultural trade policies.

And the implicit endorsement from relevant government departments, although not directly manifested as financial support, such as the Ministry of Commerce and relevant agencies under the State Council, will take note of such successful cases of business and cultural exchange, and may give relevant enterprises more attention or convenience in future international trade negotiations and cultural exchange activities, regarding them as "positive examples" of promoting understanding between the people of China and the United States.

In addition, New Line Cinema's parent company, Time Warner, can also benefit from its subsidiary's progress in strategic markets.

Therefore, New Line Cinema responded swiftly and politely to the official letter from Sheng Ying, expressing its full understanding of the special circumstances of the Chinese market, gratitude for the efforts of the Sheng Ying team, and high expectations for long-term cooperation between the two parties.

(End of this chapter)