Rebirth In Hollywood

Hollywood has a myth - in every economic crisis, Hollywood is a place where the storm cannot spread.

During the Great Depression of the 1930s, when a quarter of Americans were unemployed, people were still counting pennies to see the latest movie, and people were hiding in movie theaters because of escapism. The movie industry was thriving, and Hollywood was not Being hit but thriving.

The 2008 financial crisis was the most serious financial crisis since 1930. The economic downturn has lasted for more than ten weeks, and there is still no sign of ending. The houses of the poor were taken back by the banks, and the rich began to auction off their valuables. From the wife's $4,000 handbag to the $500,000 private jet.

Can Hollywood really remain a safe haven amid an avalanche of real estate, a plummeting stock market, 64,000 companies declaring bankruptcy, and an unemployment rate of 7.2 percent?

Hollywood is no longer the Hollywood of the last century. Major production and distribution companies have become part of the media group, and the media group with a complex industry revenue structure will certainly not be able to escape this financial storm.

When Wall Street plummeted, the entertainment industry stocks were not spared. The overall decline of the entertainment industry stocks in the United States was 41%, and the stocks of the media groups to which each major film studio belongs were hit hard.

Time Warner-AOL, to which Warner Bros. belongs, is the largest media group in the world. Its stock fell from about $17 a share at the highest point to $7 a share at the lowest point, and the market value of the entire group evaporated by $25 billion.

Paramount's owner, Viacom Group, was the biggest loser among the five major media groups in the United States. Its stock fell from the highest point of $45 a share to $12 a share. Some financial magazines speculated that Viacom's Summer Ray Shi Dong "may be so embarrassed that he is no longer a billionaire."

As for Paramount Pictures itself, it encountered the double nightmare of the divestment of Wall Street investment companies and the separation of its DreamWorks Spielberg, and became a very bad situation among the struggling major film studios other than MGM.

Another big loser was Sony Columbia. Sony's stock had shrunk by 65%, and it was on the verge of bankruptcy.

by contrast. Walt Disney's life is considered the best among the five major media groups. Although the fourth quarter revenue is expected to decrease by 13% compared with the same period last year, as high as 2 billion US dollars, compared to this year's revenue of more than 43 billion US dollars That being said, it won't have much of an impact.

Although the sudden decline in TV advertising and the sharp drop in theme park revenue have hit Disney's revenue, but compared with other media groups' stock prices diving by half, Disney's stock price has fluctuated several times, and its market value has fallen by less than 15%. Already the biggest winner.

certainly.

It is not that there has not been a large amount of Disney stock sell-off in the stock market, but Ryan has already asked Scott to prepare a huge cash flow, and use multiple funds to spread it out, which has also stabilized Disney's stock price to a certain extent.

All but two of Disney's divisions have seen revenue declines.

One is Netflix, which announced the end of the video tape rental business model with its unique DVD mail rental method-users only need to pay $16.99 a month to rent DVDs online unlimited times-users sit at home and wait for the post office to deliver videos to their door. After watching the disc, seal the envelope that came with it. Put it in the mailbox and mail it back.

This can be said to be a good way to avoid the pain of the financial crisis.

The other is Marvel Comics. The craze triggered by "Iron Man 2" has not subsided until now, and their comic business has been stable.

The biggest impact of this financial crisis is actually the withdrawal of Wall Street capital from Hollywood in large numbers. The short honeymoon cooperation period between the two parties ended, many banks no longer invested in the high-risk film industry, and many Hollywood companies had to cut some projects one after another, and the number of these projects decreased. It also means underemployment, which will eventually be reflected in every class that makes up Hollywood.

Those big stars are no exception, there just aren't enough jobs. They cannot sustain huge expenses.

However, the team behind Hollywood stars are some smart people, and many of them have embarked on the route of making money overseas.

For example, after ending her long period of insanity and obesity, Britney Spears embarked on a world tour, allowing fans all over the world to pay for it; Making money in Ah San's Bollywood...

Compared with the stars who can go overseas to make money, the life of major Hollywood labels is even more difficult. Wall Street has withdrawn funds, which has caused a serious shortage of liquidity for them, and they have announced production cuts.

Among the six major labels, Paramount Pictures is the saddest. Deutsche Bank shelved the investment agreement with Paramount up to 450 million U.S. dollars, leaving them with at least 30 films without sufficient sources of funds. On the other hand, , After three years of unhappy cooperation, Spielberg of DreamWorks has always wanted to separate from Paramount, and now it has reached the point where it has to be separated.

Paramount Pictures wants to ask the parent company Viacom for help, but Viacom can only protect itself now. Unlucky things happen one after another. Paramount was jointly sued by Allianz Risk Transfer and Marathon Structural Finance Fund Past participation in Paramount Pictures' projects was misleading and fraudulent, and suffered a credit freeze.

Spielberg's new DreamWorks was also having a hard time. Although it was lucky to escape the credit freeze because of the division, it also suffered from a serious lack of funds. It is not known whether the $350 million loan will be honored.

Wanting to raise funds, the major banks and financial institutions are now overwhelmed, and they are running away from Hollywood at the speed of escape. It is not that easy.

But Ryan is different. He and Scott's team have already made sufficient preparations. This is the moment he has been looking forward to. Only by seizing the present opportunity can he ensure the smooth implementation of future plans.

"Stephen..."

Walking to the golf ball, Ryan tried to swing the club, hit the white ball hard, and then turned around, "I heard that DreamWorks doesn't want to participate in the release?"

"I think Dreamworks should focus more on production."

Hearing what Spielberg said, Ryan nodded, jumped on the battery car, patted the back of Taylor sitting in the driver's seat, she immediately started the car, and drove towards the leisure area by the sea.

Spielberg continued, "You know, we're better at making films."

"How about distributing it to Disney?" Ryan threw the club behind him. "I promise I'll only charge ten percent of the distribution fee."

"It's not something I can decide on my own." Spielberg adjusted his glasses, "Besides, DreamWorks couldn't even find the funds to make the film..."

"Have you reached an agreement with the Indian Reliance Group yet?" Ryan asked in a timely manner.

"Not yet." The old man shook his head, "The life of the Indians is not easy."

"Alison, concentrate on driving."

After warning Taylor, Ryan looked at Spielberg without going around in circles, "I still have a sum of money in my hand. If DreamWorks urgently needs it, I can lend it to you."

Hearing Ryan's words, Spielberg's eyes immediately lit up. Even if he got the money at a higher interest rate than the bank, he was willing. After all, without funds, DreamWorks couldn't even start work.

But Spielberg is a genius who has been in Hollywood for many years and understands that there is no such thing as a free lunch in the world, even if the two parties are very good friends.

"Say it straight, Ryan." Spielberg was straightforward, "What are the conditions?"

"How much do you need?" Ryan asked.

"One hundred million dollars, at least." Spielberg seemed to be talking loudly, "Of course, the more the better."

"I can personally lend DreamWorks $300 million to $400 million at bank rates."

Watching Taylor tacitly drive the battery car onto the road without people, Ryan looked away, "An Oscar for Best Actress and an Oscar for Best Female Director."

"I can't guarantee such conditions."

No one can guarantee the award, Spielberg shook his head directly.

"Stephen, I'm just borrowing your connections." Ryan also knew this, "Then you will be responsible for helping me lobby the conservatives among the Jewish people this year and next year."

Although he knows many people, age is a problem. Spielberg, as a Jewish representative who has been rooted in Hollywood for more than 40 years, must be the most suitable candidate.

This public relations job is not too much, and in fact it is not very responsible for many things.

"Any more?" Spielberg asked again.

"Of course." Ryan said deliberately and very solemnly, "If possible, I hope you quit DreamWorks and join Disney."

"Okay, Ryan." Spielberg knew he was joking, "seriously, I can agree, but I don't guarantee that I will get the two statuettes."

"It's okay." Ryan never pinned his hopes on a single aspect, "I will call Scott later, and his people will contact you."

Then, the two changed the subject and chatted about the production industry, which was more miserable than the major labels.

Compared with major companies with guaranteed income, films rely more on external investment, and their current situation cannot be described as difficult.

Of course, if there is the right film, the right actors and production team, and the right budget, it can still attract investment.

The right movie refers to a comedy, an action movie, a horror movie or a thriller; if it is a serious drama, there must be a big star in the lineup; and other themes that the producer loves, such as death, suicide, schizophrenia or discussing women's rights, this Time is no one cares.

It was not until the evening that Ryan and Taylor left the clubhouse separately from Spielberg, and then rushed to the next business meeting, and the object of the meeting was Paramount Pictures, which had more crises and troubles than DreamWorks. (To be continued..)

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