Chapter 682

At night, in a beachfront villa of Charles Capet in East Hampton, Long Island, New York.

In the bedroom, Charles, who was with Blake Lively, laughed, "The reviews for Green Lantern are terrible!"

Green Lantern premiered in the middle of the month, with a North American opening weekend of $53 million, but the second-week drop was over 63%.

In 10 days, the North American box office totaled just over $80 million, which spelled a significant loss for Warner Bros., given the $200 million production cost.

Blake Lively took a few deep breaths and rested her head on Charles's chest. "Warner Bros. has already cut down on the promotion for Green Lantern. The reviews just aren't good enough!"

According to forecasts, Green Lantern's North American box office would be just over $100 million, with the overseas tally adding up to around $200 million.

By comparison, Fox's reboot of the X-Men series, X-Men: First Class, had a global box office exceeding $300 million, with a budget of just $160 million.

Green Lantern couldn't compete with Capet Universal's Marvel division, nor even with 20th Century Fox.

Charles chuckled and fondled the woman's chest. "It's okay, you're already filming The Hunger Games. If Green Lantern fails, it fails."

The TV show Gossip Girl's ratings were also declining; it seemed likely that CW wouldn't renew it for another season.

Currently, Blake Lively's only notable work was Gossip Girl, and The Hunger Games would soon become her new claim to fame.

...

Soon, Capet Universal's blockbuster Transformers 3 premiered globally, earning $5.5 million from early midnight screenings in North America.

As a super IP of Capet Universal, Transformers 3 had a robust promotional strategy, with Hasbro launching new toys in alignment.

The behind-the-scenes deal between 20th Century Fox and Capet Universal didn't attract much attention, as Marvel Studios reclaimed the movie adaptation rights for Daredevil and the Fantastic Four.

And Netflix extended its streaming rights agreement with Fox.

In the Universal Tower, Charles reminded Donna Langley, "Netflix should consider original series. Technology is advancing fast. Streaming services can produce their own shows. Not everything has to rely on buying rights."

Donna Langley was taken aback. "Original series? Are we challenging cable TV now?"

Charles leaned back on the sofa. "Sure, why not. It's a good move for Netflix. Cable TV operators always bundle packages, causing fluctuating subscriber numbers for some of our channels. They've been too complacent. Streaming services don't have middlemen, and those TV guys need some competition!"

Donna Langley inquired, "So what's your plan?"

"Send an experienced TV producer to head Netflix's content operations. Reed Hastings can continue managing Netflix's overall operations.

I don't want someone who doesn't understand film and television production to run the content department. Netflix, backed by Capet Universal, shouldn't just be a cash cow.

Releasing original series directly on streaming can pressure TV networks, and plenty of TV actors need projects. Netflix creating original content also provides jobs for them."

Donna Langley nodded. While it was a big undertaking, the cost of streaming exclusivity was hard to estimate.

"Worried about costs and actor royalties?" Charles picked up on Donna Langley's concerns. 

"Buy out the series from TV production companies at a higher price. It's similar to dealing with TV networks, but we pay all at once. TV production companies will be happier that way!" Charles explained. Streaming on Netflix avoided calculating rebroadcasting fees.

"Alright, I'll have a good discussion with the execs at Netflix," Donna Langley agreed.

Capet Universal was about to go public soon and would raise a significant amount of capital to undertake various major projects.

"What about Hulu? What are your thoughts?" Donna Langley asked Charles.

"Hulu?" Charles shook his head. "Disney plus Fox Entertainment, and Universal Entertainment's rights library are Hulu's biggest assets. Netflix has already signed partnerships with most TV networks and movie studios, and has 25 million subscribers. Don't worry, Hulu can't compare!"

...

In the afternoon, Charles had a meeting with Lily Ying, who had just come from Hong Kong.

"I met with Anne Depp. Capet is issuing 850 million shares, at $71 each, valued at more than $60 billion," Lily Ying smiled.

"Confident?" she asked.

"Look at Universal's current success. Do you think I'm confident?" Charles took a sip of coffee and slid over a file. "Here, 2 million shares, $20 each."

Lily Ying had earned Charles a lot of money, so he wasn't going to shortchange her. Even employees could only buy up to 1 million shares max.

These 2 million shares were special, just for her.

"Thanks, I'll keep them," Lily Ying accepted the gift with a smile.

"Why price them so high? It could be lower, with more shares," she said.

Charles thought for a moment, "Several investment institutions are interested in Capet Universal, and I'm very confident in Capet. Later, we can issue new shares or split the stock!"

Lily Ying nodded. "Indeed, Capet's future is bright!"

Charles smiled. "Let's hope so. How about we grab some lunch?"

*****

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