Chapter 490: The Curtain Falls on an Era

[Chapter 553: The Curtain Falls on an Era]

On the evening of March 25, the 68th Academy Awards ceremony was held at the Dorothy Chandler Pavilion in the Los Angeles Music Center. As the annual film extravaganza, the Oscars never fail to capture everyone's attention.

Meanwhile, a private cocktail party was taking place at the Bel-Air Hotel in Beverly Hills, hosted by Edgar Bronfman Jr., chairman of Universal's parent company, Seagram. In attendance were media moguls like Rupert Murdoch from News Corp, Sumner Redstone from Viacom, and Gerald Levin and Ted Turner from Time Warner.

Arthur also spotted Barry Diller at the event. Jennifer Connelly, who was accompanying Arthur, looked at him with a surprised expression, "Arthur, what kind of party is this? It feels like all the heavyweights of Hollywood are here."

"To honor Universal's former chairman, Lew Wasserman. Edgar Bronfman has officially appointed Frank Biondi as Universal's new chairman to succeed him," Arthur explained while wrapping his arm around her.

"Lew Wasserman joined the MCA group back in the '40s, later ran MCA, acquired Universal, etc., solidifying his status as a key figure in Hollywood," he continued. "Last year, Clinton awarded him the Presidential Medal of Freedom for his more than sixty years of contribution to film and social endeavors. His impact on Hollywood is huge."

Frank Biondi, who previously served as CEO of Viacom, marking the end of the Lew Wasserman era at Universal with his assumption of the chairmanship.

"Well, I'll go over and say hi," Arthur said, kissing Jennifer Connelly on the cheek before heading toward Lew Wasserman.

Last year, Ronald Meyer of CAA replaced Sidney Sheinberg as president. Now, with Frank Biondi officially as chairman of Universal's board, he also appointed Casey Silver as head of Universal's production division.

"Mr. Wasserman, Universal is about to enter a new era," Arthur said as he raised his glass in a toast.

Lew Wasserman smiled and took a sip, "The upcoming Hollywood future might very well be dubbed the Arthur Smith era. You're only 27; I can hardly imagine how long you're going to rule Hollywood."

Arthur raised an eyebrow in disbelief, shaking his head resignedly. "Mr. Wasserman, things are different now. Media conglomerates are adopting diverse and integrated operating models. Movies, television, music, publishing, advertising, consumer goods -- films no longer contribute the major revenue they used to. Does the revenue from filmmaking even compare to that of a whole TV network?"

Which media group doesn't control dozens of television stations these days?

Lew Wasserman sighed, "You understand the locomotive effect of film better than anyone. Galaxy has even taken control of CBS, plus all the other cable channels. Time Warner, Disney, and News Corp can't quite match your level."

Time Warner and Disney have advantages in television, but they lag behind Galaxy in film production. News Corp has formidable international marketing and decent film production capability, but FOX can't hold a candle to CBS. Viacom's strengths are primarily in cable networks and publishing, leaving them woefully behind elsewhere. As for Sony Columbia, they remain an electronics company -- Universal isn't even worthy of comparison to the top six.

Arthur smirked slightly. "It's a pity that Galaxy doesn't have a themed resort business yet!" Universal is busy building its third Universal Studios in Osaka, while Disney is hard at work preparing its fifth Disneyland.

...

In another part of the venue, Ted Turner and Rupert Murdoch were engaged in conversation. "Rupert, FNC (Fox News Channel) is about to launch -- pretty impressive!"

"Roger's perspective is spot on. News itself is a business, and CNN has monopolized 24-hour cable news for far too long," Rupert Murdoch responded confidently. "FNC is honored to be CNN's direct competitor."

Ted Turner maintained a level demeanor. "I handed over CNN to others a long time ago. Now that it's been acquired by Time Warner, I'm just a vice chairman. The future of CNN is no longer my concern."

While Ted Turner isn't actively managing things at Time Warner, he remains one of its major shareholders.

...

In another corner of the banquet hall, Gerald Levin, chairman and CEO of Time Warner, was in conversation with Viacom chairman Sumner Redstone.

"Steve Ross has passed, and Lew Wasserman has stepped down. Hollywood has truly entered a new era." Steve Ross, the former chairman and CEO of Warner Bros.

Sumner Redstone had a keen look; they belong to the new wave of Hollywood moguls, operating with diversified media conglomerates. When it comes to traditional Hollywood film models, competition has become increasingly fierce.

Gerald Levin chuckled, "Viacom's thirst for television networks is evident. Now, apart from NBC under General Electric, all the major television groups have merged with film studios. So, what's next for Viacom?"

Sumner Redstone glanced over at Arthur Smith, who was laughing and chatting with Lew Wasserman nearby. "Content is king, but I'm more concerned about Galaxy's strength."

Currently, Viacom's most successful venture is MTV, while Paramount remains its key asset. As for Universal? The people there are hardly respected, primarily because of slacker rich kids like Edgar Bronfman Jr. "You know, when recruiting Michael Ovitz, Disney chairman Michael Eisner bluntly stated, 'If you're not coming to Disney, are you just looking to work under that rich kid at Universal?'"

"Galaxy is developing at lightning speed, mainly due to Arthur Smith's vision. His grasp on film is incredibly precise," Gerald Levin lamented.

After acquiring TBS, Time Warner surpassed Disney's acquisition of Capital Cities/ABC, reclaiming its title as the world's largest media group. But now, Galaxy is about to go public, holding the formidable MGM and CBS assets, coupled with its own film production capabilities, it's quickly inflating its valuation.

"In live-action films, Galaxy is in a league of its own. Now, Galaxy Pixar is making huge waves in the animation market; even Disney has started feeling the competitive pressure from their animated features," Sumner Redstone noted. He kept a close watch on content, prioritizing Galaxy highly, as the pressure from Time Warner and Disney doesn't even compare to what Galaxy brings.

Gerald Levin shrugged. "Let's not forget there's also a new player, DreamWorks!"

*****

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