Chapter 223: Impact

[Chapter 223: The Wave Begins]

The day after the Friends' ratings celebration party, Rupert Murdoch eagerly took to News Corp's media outlets to announce that Firefly Films would be taking a stake in Fox Television, while also confirming that Friends would continue airing on Fox. Furthermore, he indicated that both companies would engage in closer collaboration.

As soon as the news broke, most media outlets, which were previously pessimistic about Fox's ability to retain Friends amidst the competition among the three major television networks, quickly changed their tune, expressing optimism about Fox's future prospects.

Aside from Murdoch's revelation about Firefly's closer cooperation with Fox, the retention of the hit series Friends alone was a strong indicator that Fox could solidify its fourth-place standing in North American television. If Fox seized this opportunity to produce higher quality programming to build a loyal viewer base, surpassing the original three major networks over the following years was not out of the question. Thanks to this positive news, Fox's market value, which had been under a billion dollars, began to soar.

The transfer of stock within a television network was not something that could be completed overnight. After Fox's announcement, instead of conceding defeat in their pursuit of Friends, the three major networks stepped up their attempts to engage with Eric Williams more frequently.

Amidst their ongoing struggles, ABC, which had endured several years of losses following its 1985 merger with Metromedia Broadcasting, made a desperate bid to turn things around. ABC's CEO, Tom Murphy, even offered a stake in exchange for collaboration. However, he only received authorization from the board for a 3% stake transfer. Although this 3% stake was valued at over twice that of Fox's 10% stake, Eric was completely unfazed. Based on ABC's downward trajectory that led to its eventual acquisition by Disney, it was clear that for the next several years, there would be no dividends for ABC from those shares; rather, it would drain a significant amount of Firefly's resources. Moreover, this 3% stake would not offer Eric much influence at the table. Thus, in choosing between the thriving Fox and the struggling ABC, anyone with a modicum of sense knew what the right choice was.

...

On the evening of September 10th, amid the laughter of Friends' audience and the close watch of other television companies, the show entered its second week of airing. Two hours later, Nielsen promptly released its ratings statistics. The average viewership for episodes three and four of Friends was 24.6 million, with the highest rating still reaching 29 million.

Upon seeing these numbers, the three major networks began analyzing the factors behind Friends' success. They ultimately discovered that beyond the show's witty humor and clever dialogue, the key reason for its blockbuster premiere ratings was that Eric himself directed the first two episodes.

While it wasn't unheard of for film directors to transition to television, it had primarily been those whose film careers had stagnated. In the midst of flourishing success, no esteemed film director would willingly "sink" to direct a television series.

Thus, the fact that Eric, who had achieved significant film successes, personally directed the show piqued viewers' curiosity about what kind of series this box office miracle worker would create.

When Friends lived up to audience expectations, it culminated in the show's tremendous popularity.

Understanding this, the three major networks almost simultaneously made their moves. In a flurry, heavyweights like Steven Spielberg, Francis Ford Coppola, Martin Scorsese, and Tim Burton received high-paying offers as the networks sought to secure Hollywood's biggest directors for their shows. They even offered up to a million dollars to any director willing to lend their name to a series.

Despite the massive financial incentives, most directors, citing various concerns, turned down the offers. However, some took the plunge, resulting in commendable viewership for shows branded with the names of Hollywood's elite.

Over the next several years, it quickly became a trend to invite well-known film directors to helm the first episodes of new series. If a new series premiered without the presence of a famous Hollywood director in its promotional material, viewers instinctively perceived it as low-quality, resulting in subpar ratings.

Of course, all of this would unfold later.

...

By the time Friends aired its second week, it became apparent that discussions surrounding the show had nearly vanished from television programs outside of Fox, even on entertainment talk shows that typically enjoyed poking fun at current events -- hosts seemed completely unaware of Friends.

It was clear this "blackout" was a response from the three major networks to Eric's consistent rejections of their attempts to recruit him. However, this "ban" had no impact on Friends, especially with Fox's backing from News Corp, which was poised for comprehensive promotion of the series across print and television media.

Despite the three major networks controlling most of North American television, they remained independent networks with limited forays into magazines and newspapers. In this era, the word-of-mouth about a series heavily relied on newspapers, which played a vital role.

Though Fox's competitors tried to publish some disparaging remarks about Friends in the publications they could influence -- criticizing it for having adult themes unsuitable for public television -- these claims failed to gain traction. Most respected newspapers lauded Friends.

...

In his office, Eric was engrossed in an article about Friends published by the Los Angeles Times.

"According to Nielsen analysts, Friends' second-week ratings have eliminated around 70% of unstable viewers. The series' final average viewership will likely hover around 22 million, making it undoubtedly the top-rated television show of the year.

Reports indicated that Friends was raking in approximately $3 million per episode in advertising revenue, meaning the show would generate over $70 million in total. While we don't know the specifics of the revenue-sharing arrangement between Firefly and Fox, based on Eric Williams's formidable negotiation style, the ad revenue share for Friends would surely be one of the highest industry standards. Thus, just from the initial airing, Friends could bring nearly $30 million in revenue to Firefly.

What's even more astonishing is that Firefly holds exclusive rights to Friends. This means that the subsequent distribution rights and video releases could reap income over three times that of the initial advertising revenue. However, the total production budget for Friends was under $5 million. Eric Williams, the 'renegade' stirring up trouble in Hollywood, was proving he could shine not just in films but excel adeptly in television too.

As I contemplated writing this article, I began to wonder if Eric Williams would soon extend his reach into the music industry. After all, the soundtracks of several films he directed prominently featured his name. The score of a particular moment in the film Running Out of Time -- where the protagonists meet on a bus -- captivated countless fans. The iconic scene of Tom Cruise and Brroke Shields snuggling against each other was accentuated by this score, which the media hailed as the year's most beautiful film moment. With the three struggling major networks in mind, why wouldn't the CEOs of record companies reach out to Eric Williams before anyone else?"

...

After finishing the article from the Los Angeles Times, Eric pondered for a moment. While working on Pretty Woman, he was inspired by a hit song from the popular band Roxette, which had sparked his interest in developing a music career for a singer. The 1990s were the last golden era for the global record industry; as long as record companies had a few major artists, their profits rivaled those of film studios or television networks. Even as the rise of the internet eventually led to the decline of the record industry, the copyright of songs held by record companies remained a substantial source of long-term revenue in the rigorously protected intellectual property laws.

Jotting down some thoughts on a nearby notepad, Eric was just about to turn to another newspaper when there was a knock on the office door. "Mr. Williams, Ms. Murdoch is here."

Eric casually replied, and in walked Elisabeth Murdoch, dressed in a light blue checkered shirt and dark jeans, carrying a dark blue handbag. She boldly took a seat across from Eric, exuding the same carefree demeanor that made it clear the strong kiss they had shared was far from fresh in her mind.

Removing her handbag and placing it on her lap, Elisabeth glanced at Eric's copy of the Los Angeles Times and smirked, "I can't believe you're so vain, sneaking off to your office to read flattering articles about yourself."

Eric brushed off her sarcastic tone. If he were merely a film director, it would be easy to ignore everything else and focus solely on making films. But he also held the position of chairman of a film company, necessitating enough awareness of industry trends. Given how busy things had become during this time, Eric had to rely on his assistant to compile the most important news stories so he could skim them quickly each day before managing other responsibilities.

*****

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