Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 443, Section 441: The Wu Baige Effect
Monday morning, July 29, 2002.

Burbank, Los Angeles, New Line Cinema headquarters building.

Inside a spacious, modernly decorated meeting room, the air conditioning system silently delivers cool air, a stark contrast to the intense California sunshine outside the window.

On one side of the long conference table was the Shengying Media delegation, led by Wang Sheng. Members included Zhao Jingsong, director of Shengying Media's international business department, and a Chinese lawyer who was well-versed in the details of Hollywood contracts.

On the other side of the conference table were key figures from New Line Cinema.

Seated in the center was Kevin Brown, Senior Vice President of the International Department. He still looked as shrewd and capable as ever, but his gaze toward Wang Sheng held a greater degree of attention and inquiry than before.

To his left is Michael De Luca, Senior Vice President of Production, an executive known for his keen creativity and support for emerging projects; to his right is Mark Riddell, Head of Distribution, and a Vice President of Business and Legal Affairs.

The air was filled with the rich aroma of coffee. After exchanging pleasantries, the two quickly got down to business.

"Wang, first of all, congratulations again on the extraordinary achievements of Kung Fu Soccer."

Brown leaned forward, crossed his hands on the table, and got straight to the point, "It set the stage for a fantastic partnership between the two of us."

We are very much looking forward to the finished product of *Night at the Museum*, and we believe it will be another amazing experience. So, what new ideas do you have for today?

Wang Sheng smiled slightly, but instead of answering directly, he gestured to Zhao Jingsong beside him.

Zhao Jingsong immediately took out a project folder, which wasn't too thick, from his briefcase and respectfully pushed it to the center of the conference table.

“Kevin, Mark, Michael,” Wang Sheng’s gaze swept over the three core figures of New Line, “Before a large-scale project like ‘Night at the Museum’ is released, I personally, as well as Sheng Ying, need some new attempts to maintain creative acumen and vitality. So, I have a rather… special project here.”

Brown and the others picked up the folder and opened it. The title that caught their eye made them pause slightly.

SAW (Saw)

Project Type: Psychological Thriller/Horror Film
Estimated cost: Extremely low (target to be kept below $200 million).
Core concept: Two strangers wake up in a locked room and are imprisoned by a psychopathic killer calling himself "Jigsaw," forced to participate in a series of bloody survival games...

Brown's brow furrowed almost imperceptibly as he quickly skimmed through the project overview and more detailed early concept designs, while Luca wore an expression of keen interest, and publishing director Riddell looked more scrutinizing.

“Wang,” Brown put down the folder, leaned back in his chair, his tone tinged with obvious confusion and a hint of teasing, “this…is really not like you. I know Sheng Ying has a wide range of projects, from teen romance and urban comedies to fantasy blockbusters, but a low-budget horror film? That’s so different from the high-concept, big-budget commercial films you’ve always made. Why would you be interested in this?”

All eyes in the meeting room were on Wang Sheng.

Wang Sheng picked up the bottled water in front of him, took a sip, and explained with a relaxed expression: "Style needs to be broken through, and vision also needs to be broadened. Kevin, to be honest, I'm considering briefly developing my directing career in Hollywood in the next year or two."

Upon hearing this, several executives at New Line Cinema exchanged glances, and Brown leaned forward slightly, clearly paying close attention to the information.

“That’s a very wise decision, Wong!” Brown immediately expressed his support, his tone enthusiastic. “Hollywood will always welcome truly talented directors. Look at John Woo, how successful his ‘Face/Off’ was!”
And then there's director Ang Lee, whose "Crouching Tiger, Hidden Dragon" opened a new chapter.

They have all proven that Chinese directors can achieve great success here, as long as…

He paused slightly, then added meaningfully, "...to have a deep understanding of and abide by the rules of the game in Hollywood."

When Wu Yusen was mentioned, Brown's tone became slightly more serious: "Of course, we must admit that the market always fluctuates. Wu's latest work, 'Windtalkers,' has a huge investment and brings together stars like Nicolas Cage. It tells the story of Navajo Indian codebreakers in the Pacific theater of World War II. The subject matter and the cast are very promising."

Unfortunately, after several weeks in theaters, box office performance has fallen far short of expectations, causing considerable trouble for MGM and the film's main investors. This serves as a reminder that even with the most successful directors, projects carry risks.

The production cost of "Windtalkers" was approximately $1.15 million, but it only grossed about $4100 million at the North American box office, resulting in a significant loss.

He changed the subject, his gaze fixed intently on Wang Sheng: "But! Wang, the market insight, cost control, and cross-cultural storytelling skills you and your Shengying have demonstrated are extremely valuable to us. New Line Cinema still has great confidence and expectations for you. We believe that if you decide to direct in Hollywood, you will definitely bring us some amazing works."

Wang Sheng responded to Brown's compliments and the warnings in "Windtalkers" with a faint smile, without giving much of a reply.

He steered the conversation back to Saw: "So, this SAW project can be seen as a warm-up for me to try my hand in Hollywood before Night at the Museum was released."

Low cost, short production cycle, and manageable risk. I want to experience firsthand the workings of Hollywood independent film production, and also test a more extreme model for creating genre films.

At this moment, Luca, the vice president of production, interjected, flipping through the design drawings of the ingenious and even somewhat cruel mechanisms in "Saw," his eyes gleaming with interest: "Wang, the concept of this project is indeed very unique, full of... well, a kind of cold wisdom and unsettling tension."

This kind of psychological thriller set in a confined space, if handled well, can easily become a hot topic. A budget of 200 million? That's practically a 'micro-budget' budget in Hollywood.

“Yes, Michael.” Wang Sheng nodded. “We will use promising but inexpensive new directors and actors. The locations will be extremely limited, and the shooting period will be compressed to the shortest possible time. The key is the ingenuity of the script and the creation of the atmosphere, rather than relying on special effects or stars.”

Distribution manager Riddell, however, focused more on the market: "These R-rated horror films have a stable audience, and the DVD and VHS markets are generally stable. If the film is of high quality, it might achieve good theatrical returns during the Halloween season or as a 'gap-filling' film on a regular weekend. But frankly, Wang, we don't have high expectations for its box office performance."

Brown, after considering his colleagues' opinions, looked at Wang Sheng again with a businesslike smile: "Wang, we understand that you are using this project as a trial and warm-up for your directing career. New Line Cinema is happy to cooperate with you in various forms."

Regarding this *SAW* project, we see its uniqueness and potential genre value. However, given its low-budget and high-risk nature (despite the small amount of money), and its tendency to lean more towards a personal creative experiment…

He paused briefly, exchanged glances with Luca and Riddle, and continued, "New Line Cinema does not intend to make an equity investment this time. Our proposed cooperation model is: Sheng Ying Media will be fully responsible for all investment and production required for this project, and the complete copyright of the film will belong to Sheng Ying Media."

New Line Cinema, leveraging our global distribution network, will handle all aspects of the film's distribution worldwide, including theatrical releases, subsequent DVD/Video releases, and television rights sales.

We will charge a standard distribution agency fee, which will be used to offset our initial distribution and promotional expenses. The remaining revenue, after deducting the distribution agency fee and promotional expenses, will be returned to Shengying Media.

This model is almost a risk-free business for new production companies. They don't need to invest in production; they can get a share of the profits simply by leveraging their distribution channels.

If the film is a box office hit, they reap the distribution profits; if the box office is dismal, their losses are mainly in human resources costs and some P&A fees (which can usually be recovered from revenue first), making the risk extremely low.

As for Wang Sheng and Shengying Media, although they bore all the production costs, they also firmly controlled the project's most core asset—the copyright.

Once the film is successful, the vast majority of revenue, including box office revenue, subsequent streaming sales (although it is not yet a significant force at this time), television sales, and especially the highly promising DVD revenue, will flow into Sheng Ying's pocket.

This is a typical high-risk (relative to cost) and high-potential-return gamble, and it has tied New Line Cinema to the game, using its channels to gain maximum exposure for the film.

Wang Sheng barely hesitated. He looked at Zhao Jingsong and his lawyer, who nodded slightly, indicating that the model was clear and met expectations.

“Sure, Kevin,” Wang Sheng readily agreed. “Let’s proceed with this model. Shengying will handle investment, production, and copyright, while New Line Cinema will handle global distribution. We’ll have our team finalize the details later.”

Seeing Wang Sheng's decisiveness, Brown's smile widened: "Great! We look forward to seeing the results of this 'warm-up'."

He then added, with a hint of cautious anticipation, "As for larger-scale collaborations, such as the A-list productions you, Director Wang Sheng, will direct in Hollywood in the future, New Line is very interested."

But we hope to wait until the box office results of *Night at the Museum* are in before discussing specific investment ratios and cooperation methods. You know, the board needs more concrete data to support their claims.”

Wang Sheng expressed his understanding, saying that "Night at the Museum" is the real touchstone to test whether he can handle a big-budget Hollywood production.

Wu Baige's failure has instilled a deep distrust of Chinese directors in Hollywood capital.

New Line Cinema didn't invest in the "Saw" project, hopefully they won't regret it in the future.

(End of this chapter)