[Chapter 828: Music Copyright]
"So far, Titanic's North Arican box office has successfully surpassed $300 million, but the phenonon continues to demonstrate exceptional box office strength. Analysts widely predicted that just from North Arican earnings, Titanic might recover its massive investnt of $265 million, while its overseas box office could potentially reach jaw-dropping figures. The recent reflections on big-budget productions that began in the film industry were quickly called into question, as major Hollywood studios began scouting their own blockbuster projects. In this situation, Firefly Group's sudden announcent to halt external collaborations with its effects company, Digital Domain, felt like a bucket of cold water thrown on all Hollywood companies outside the Firefly system.
According to Jeffrey Katzenberg, chairman of Firefly Group, over the next few years, the company would increase its annual number of 'heavy-hitting' films from three to six, with at least half being effects-heavy CGI blockbusters. If Digital Domain continued its open operational model, it would struggle to et the needs of Firefly Group.
It was reported that Digital Domain currently held the top-tier CG effects technology in Hollywood. Since 1991, it had won the Academy Award for Best Visual Effects for four consecutive years thanks to its outstanding work in films like Terminator 2, Twister, and Jurassic Park. Furthermore, Digital Domain managed the industry's largest rendering farm, handling over 50% of Hollywood's visual effects rendering in recent years.
Related analysts speculated that due to Digital Domain's possession of unique CG techniques, such as the large-scale battle scenes in The Mummy 2, the company's sudden halt on external collaborations could create a multi-year 'gap' for Hollywood studios lacking access to Digital Domain's technology for effects-heavy films. This undoubtedly would have a significant impact on the film businesses of Warner Bros., Paramount, and Sony, leading to a surge in market share for Firefly Group, MGM, and 20th Century Fox. Following this news, in the past week, stock prices for Warner Bros. and Viacom saw slight declines, while MGM, having the closest ties to Firefly Group, saw its shares jump over 9% within the week."
...
Michael Eisner tossed aside the latest issue of Premiere magazine, frustrated, and stood up to walk toward the window, contemplating what to do next.
Aside from this analysis article, the latest issue of Premiere also revealed the annual Hollywood Power List. In addition to Eric Williams reigning unquestioned at the top, Jeffrey Katzenberg, CEO of Firefly Group, failed to follow the previous years' precedent of being listed alongside Eric as co-controller of Firefly Group. Instead, he was individually recognized in the second spot, reflecting Eric's increasingly prominent position in Hollywood. The third spot was not occupied by Universal, but rather by last year's hottest studio, MGM, with Drew Barrymore and Amy Pascal tied in third place. Michael Eisner only ca in fourth.
Whether intentionally or not, this year's Hollywood Power List featured an unexpected appearance of Stan Winston, CEO of Digital Domain, among the top ten. This ant that Firefly Group alone occupied three slots on the list. Considering MGM and Fox's entries, Firefly effectively controlled half of Hollywood, a reality that matched the Firefly Group's genuine influence. If strictly asuring market share, thanks to the unforeseen success of Titanic, the combined shares of Firefly, MGM, and Fox this year in the Hollywood box office market surpassed 50%. anwhile, the four major studios -- Warner Bros., Paramount, Universal, and Sony -- could only share the remaining 50% with countless other second- and third-tier companies.
"Plans never keep up with change," Michael Eisner sighed to himself, recalling his thoughts before Titanic's release, unable to suppress a self-deprecating smile.
Still, there was the pressing issue at hand.
Since the announcent of Firefly's cessation of Digital Domain collaborations, Industrial Light & Magic, which had nearly finalized a deal with Universal, suddenly shifted direction. Microsoft swiftly announced it would invest another $100 million into Industrial Light & Magic for CG effects technology research and developnt.
Though Industrial Light & Magic had fallen behind Digital Domain in recent years, its two decades of accumulated effects expertise remained unmatched by the smaller effects companies newly established in Hollywood. Microsoft, seeing Titanic's box office success, recognized the colossal potential of special effects technology in Hollywood, prompting a change of heart about Universal's potential involvent.
In response to Firefly's announcent, over the past week, besides Microsoft pouring funds into Industrial Light & Magic, Sony, Paramount, and Warner Bros. also announced the establishnt of their own film effects departnts. Universal's board began discussing related issues, with parent company Seagram Group's chairman, Edgar Bronfman, calling to inquire about the situation.
But Michael Eisner knew that establishing a dedicated effects departnt wouldn't work. He clearly recalled Eric's words during the competition for the Transforrs movie rights last year. The rendering farm Digital Domain had built in Florida for $100 million was not sothing other second- or third-tier companies could easily catch up with. Furthermore, how much had Digital Domain invested over the years to develop various CG effects technologies? Although he didn't have specific figures, it was clear that the number was also staggering.
More importantly, accumulating enough technology in an effects company required gaining experience from producing nurous CG shots.
According to Firefly's disclosures, the company planned three main CG effects releases each year moving forward. This ant that even if MGM and 20th Century Fox combined forces, they couldn't match Firefly's output. The three studios could collectively place six special effects film orders with Digital Domain each year, while countless other films would require just a small amount of effects. This created an ample platform for Digital Domain to accumulate techniques. Warner Bros., Paramount, Sony, and even Universal itself could not rival this.
Michael Eisner's first thought, of course, was to form alliances. However, the reaction of Industrial Light & Magic, buoyed by Microsoft support after Firefly's announcent, clearly indicated that everyone had their own motives. It wouldn't be easy to unite.
While contemplating this, there was a knock at the office door. Michael Eisner acknowledged it, and his assistant stepped in, saying, "Mr. Eisner, I've found out that Eric Williams has been in San Francisco for the past couple of days, seemingly for a secret project related to a music player developing at Firefly."
"A music player?" Michael Eisner asked, puzzled. Although the MP3 player had matured by the end of last year, Firefly Electronics had been preparing in secret for months.
The assistant nodded. "It's a brand-new digital audio player. Interestingly, last week, when you had participate in negotiations with Nicole Kidman for the sequel to The Mummy, I happened to see Ms. Kidman using this player. It's just slightly bigger than an old cigarette lighter and uses a micro hard drive for storage, allowing it to hold hundreds of MP3 tracks without the need for tapes or discs. By the way, I just called the record company. They received a partnership offer from Yahoo Network about selling songs in the Yahoo Music Store last year, and the two parties are still negotiating."
Michael Eisner's eyes lit up imdiately. He had just realized sothing important. If everything his assistant said was true, for this music player to be successfully launched, it would need substantial legitimate music resources to support it. Sony had originally bought Columbia Records for this very reason. Music copyright resources were exactly Firefly Group's weak point. Although Firefly Records had introduced so great artists in recent years, it still lagged far behind legendary giants like Universal, Warner, and Sony.
"You did a great job," Michael Eisner complinted sincerely. "Also, prepare a report on the negotiations between the record company and Yahoo for , and schedule a eting with Doug Morris."
Doug Morris was the CEO of Universal Records. Seagram's acquisition of MCA Group from Panasonic mainly involved Universal Pictures and Universal Records, although Michael Eisner was not responsible for the record division's operations.
...
"Fireflyer is the na we've finally settled on. It's inspired by Firefly, which is a sowhat cocky but genuine little sprite from the fairy tale Peter Pan. It is born from the laughter of a baby nad Lenton and eventually marries Tinkerbell. We can say it's a lovable character with a few flaws, but one that shines. Our MP3 player aims for a user experience that feels like having a close friend, perfectly aligning with Fireflyer's character. Moreover, Fireflyer can be seen as an extension of Firefly."
In a conference room located in an office building in Oakland, San Francisco, Eric, Chris, and a group of Firefly Electronics managent were quietly listening to Bill Olsen, the president of Firefly Electronics, as he elaborated.
Bill Olson was a high-ranking executive who Chris had recruited from Apple. He had previously been a vice president responsible for product marketing at Apple. Despite the backing of Firefly Group, it would have seed unlikely that he would have considered Firefly Electronics, a company just starting out. However, as Apple continued to decline over the past two years, many of its managent began jumping to other opportunities. With promises of sufficient compensation and stock options from Eric and Chris, Bill Olson ultimately agreed to lead Firefly Electronics in the role of president, primarily focusing on MP3 player marketing.
After Bill finished explaining, Eric said, "Fireflyer is indeed a great na. But since you ntioned Tinkerbell, Bill, don't you think we can also apply for that trademark as another brand for the MP3 player? Perhaps specifically for a female market?"
Bill Olson laughed, saying, "Eric, your suggestion is sothing Victor also brought up in our initial naming etings. However, after discussion, we decided to temporarily shelve that idea."
Eric turned towards Victor McNally, CEO of Firefly Electronics. Victor, a graduate of Stanford University with a PhD in Electrical Engineering, was brought in by Chris to oversee MP3 and e-book projects. Before this, he had been at IBM, contributing to product research and developnt. Although his position wasn't very high, his professional capability was impressive. It had taken three months for Chris to secure Victor's recruitnt through a headhunting firm.
Victor McNally was a middle-aged man with a plump build, unkempt hair, and a full beard. When he noticed Eric looking towards him, he smiled, gesturing to Bill Olson, saying, "Eric, best let Bill handle this. He's the expert here."
Eric turned back to Bill Olson.
Bill Olson didn't delay, explaining, "Here's the deal, Eric. Currently, we only have the Fireflyer product. Perhaps we could na a pink model 'Tinkerbell,' but that would definitely dilute the brand image of the player and hinder promotion. Additionally, this player should target all consurs, not just females. Even with the pink version, many male consurs would likely appreciate it. So if we create a gender distinction for this product, it might confuse so consurs. After all, once people feel that certain products are only for girls, male consurs might decide not to buy them."
Eric nodded. "Alright, you can continue."
Bill Olson switched to another slide in the presentation but added, "However, Eric, the Tinkerbell trademark is indeed a good idea. I'll have our legal departnt apply for the Tinkerbell trademark when we file for Fireflyer."
*****
spatreon/Sayonara816.
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