Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 406, Page 404: What is a regular army?
In April, willow catkins fluttered in the air in Beijing, and spring was in full bloom.

But in the Chinese film industry, a reform current even stronger than the spring breeze is surging.

The groundbreaking success of "Shaolin Soccer" in the North American market has long surpassed the significance of a film's box office performance.

It acted like a shot in the arm, not only proving the initial feasibility of Wang Sheng and Shengying Media's internationalization strategy, but also demonstrating to senior management an effective channel for "cultural outreach" through marketization and commercialization.

This successful case provides an excellent model and source of confidence for relevant departments that are deepening cultural system reform and seeking solutions after China's accession to the WTO.

In late April, an important conference concerning the landscape of East Asian film and cultural exchange for the next few years was held in Beijing in a low-key and pragmatic atmosphere.

Participants included core institutions such as the State Administration of Radio, Film and Television, the Ministry of Culture, and the Ministry of Foreign Affairs, as well as industry representatives such as China Film Group and the rising star Shengying Media.

Wang Sheng, as the head of Shengying Media, was invited to attend.

The topic of the meeting was to explore and promote the establishment of a new model for Sino-Korean film cultural exchange and cooperation.

The meeting was chaired by a deputy director of the State Administration of Radio, Film and Television.

He stated clearly at the outset: "With my country's formal accession to the WTO, cultural exchanges and cooperation must adapt to the new situation and explore new ideas."

South Korea's film and television industry has developed rapidly in recent years, and its popular culture has had a certain influence in Asia and even the world.

Strengthening cooperation with South Korea in the film industry is not only a necessity for cultural exchange, but also a way for us to learn from and enhance our own industrial competitiveness.

Representatives from the Ministry of Foreign Affairs and the Ministry of Culture then spoke, affirming the positive significance of strengthening China-South Korea film cooperation from the perspectives of overall diplomacy and cultural exchange, and emphasizing that it should be steadily promoted under the principle of "taking the lead and achieving mutual benefit and win-win results".

The real substantive content was explained by Wu Mengchen, who is in charge of imported film business at China Film Group.

Before him lay a preliminary draft of a cooperation framework:

"After several rounds of consultations with relevant South Korean organizations, such as the Korean Film Council, we have reached a preliminary consensus to establish a 'film exchange cooperation' mechanism, drawing on the 'market alignment and precise operation' experience explored by Shengying Media and New Line Cinema in their collaboration on 'Shaolin Soccer'."

He explained in detail: "Specifically, China and South Korea agreed that in the initial stage, each country would import a certain number of films for commercial release in its own country each year."

The China Film Group will take the lead in handling the import, selection, and distribution of films on the Chinese side.

At this point, he changed the subject, glanced at Wang Sheng, and continued: "According to the Film Management Regulations and its detailed rules, which were promulgated at the end of last year and officially implemented at the beginning of this year, although the 'unified import' qualification for imported films has been taken over by the State Administration of Radio, Film and Television, the specific 'distribution' business is no longer monopolized by China Film Group Corporation, but can designate multiple powerful entities to participate."

After careful consideration and with approval from higher authorities, we have decided that Shengying Media will be among the first pilot units to participate in the distribution phase of this Sino-Korean film cooperation project.

All eyes in the meeting room were on Wang Sheng.

This means that Shengying Media has obtained a new and highly significant qualification – the qualification to participate in the distribution of imported films.

Although in the initial stage, this permission was limited to South Korean films within the framework of this China-South Korea cooperation.

Wu Mengchen further clarified the operating model: "The imported South Korean films will be handled in the form of 'wholesale films'."

He specifically explained the difference between "wholesale films" and "revenue-sharing blockbusters," both to educate everyone present and to formally confirm the rules:

"'Buy-out' refers to the one-time purchase of domestic distribution rights. The film company (or copyright holder) receives a fixed copyright fee and does not participate in revenue sharing regardless of the film's box office performance in the Chinese market."

Its advantages are that it is relatively simple to operate, the initial cost is locked in, and the risk is controllable.

"Revenue-sharing films" refer to films where foreign distributors participate in a share of the Chinese box office revenue. This is typically applicable to A-list Hollywood productions and is currently subject to strict quotas. The Korean films we are importing through this collaboration will not count against these 20 valuable revenue-sharing slots." Regarding the number of films to be imported, the proposal suggests: "Considering this is the initial stage of cooperation, aimed at exploring models and cultivating the market, we recommend setting the number of Korean films imported each year at three."

This figure ensures a certain frequency of communication and market presence while facilitating management and risk control, aligning with the principle of "active yet prudent, gradual advancement."

The specific process is as follows: Shengying Media (which may include other qualified entities in the future) selects films from the South Korean market and submits an import application to the State Administration of Radio, Film and Television, which includes film information, copyright certificates, distribution plans, etc.

The State Administration of Radio and Television reviewed the content, policies, and cultural exchange value. Once approved, Shengying Media could sign a buyout distribution contract with the Korean side, and then organize the translation, promotion, and release the film on its controlled "China Film Shengshi Cinema Circuit" and other cooperative cinema circuits.

Wang Sheng listened quietly, his mind racing.

This model is strikingly similar to the path that he remembers companies like Enlight Media successfully used to bring Japanese films (such as "Your Name") into the Chinese market!
They all import Asian films with similar cultures, distinct genres, and those that have already achieved success or have the potential to become blockbusters in their home countries through the "wholesale film" model, and then tap into the box office potential in the Chinese market by using localized and precise marketing.

This is undoubtedly a huge business opportunity.

South Korean cinema has developed rapidly since the late 1990s, with a high level of maturity in its genre films and a number of excellent works. Its tight narratives and strong emotional tension have a natural appeal to young Chinese audiences.

If films are selected accurately and managed skillfully, it is entirely possible to achieve considerable box office returns with relatively low copyright costs.

More importantly, obtaining this qualification itself is a strong policy signal.

This is not only a reward for the success of "Shaolin Soccer", but also an affirmation of Shengying Media's contributions to promoting the marketization and industrialization of Chinese films over the past five years, and a recognition of its professional capabilities and market reputation.

At this crucial juncture when Wang Sheng is pushing forward with the listing of Shengying Media, this "gift" is nothing short of a powerful booster.

"Comrade Wang Sheng, what are your thoughts or difficulties regarding this arrangement?" the deputy director, who was chairing the meeting, asked by name, his tone gentle but scrutinizing.

Wang Sheng composed himself, stood up steadily, bowed slightly to the leaders present, and then spoke, his voice clear and firm:
"We are grateful for the trust and support of the leaders of the State Administration of Radio, Film and Television, the Ministry of Culture, the Ministry of Foreign Affairs, and China Film Group. We are deeply honored to have such an important pilot project entrusted to Shengying, and we are also well aware of the great responsibility it entails."

He first stated his position, then quickly got to the point: "We fully support and endorse this cooperative decision to promote cultural exchange between Chinese and South Korean films."

Shengying Media is confident and capable of successfully completing this task.

We will immediately assemble a professional international film selection and distribution team to conduct in-depth research on the Korean film market, establish direct contact channels with major Korean film companies, producers, and agencies, and strive to select outstanding works that not only meet the aesthetic needs of our audience and have healthy and positive content, but also reflect the artistic level and industrial achievements of Korean cinema.

He further proposed specific ideas: "In terms of distribution strategy, we will give full play to the channel advantages of 'China Film Grand Cinema Circuit' and Grand Cinema's experience in marketing, and formulate precise positioning and publicity plans for different films."

We believe that through meticulous cultivation, high-quality South Korean films can become a new highlight of the Chinese film market, satisfying the diverse viewing needs of audiences and making a tangible contribution to deepening cultural exchanges between China and South Korea.

Wang Sheng's response demonstrated both political acumen and business insight, and presented a feasible initial approach, showcasing both responsibility and method.

The leaders present nodded in approval.

The meeting ultimately approved the China-South Korea film exchange cooperation plan in principle, and clarified that the three South Korean films to be imported and distributed would be coordinated by China Film Group and implemented by Shengying Media as the first pilot distribution unit.

Shengying Media is required to submit a detailed report as soon as possible regarding the specific implementation rules and selection criteria for the first batch of films.

After the meeting, Han Sanping walked up to Wang Sheng, patted him on the shoulder, and whispered, "Kid, this is a lucrative opportunity, but also a litmus test. The higher-ups are watching, so do a good job and don't mess it up. This will only benefit your company's IPO, not harm it."

Wang Sheng nodded solemnly: "Teacher, I understand. This is an opportunity, but more importantly, it is a responsibility."

……

(End of this chapter)