Chapter 696: Stubborn People

Early Morning, Deep Water Bay Villa, Hong Kong, Charles came down from Lin Chi-ling.

"Charles," Lin Chi-ling's face was rosy as she kissed Charles' chest, "So, not planning to go back recently?"

"Of course I will go back, but things are a bit unstable over there right now," Charles smiled.

"Really?" Lin Chi-ling, holding onto Charles' shoulder, reminded him, "It's the end of the month, the Venice Film Festival has opened. Aren't you going to check it out?"

"Why, does Red Fruit Entertainment have a work nominated at the Venice Film Festival? Or, are you and Gao Yuanyuan going there?" Charles asked, reaching out to caress her chest.

Lin Chi-ling shook her head, "We went to Cannes before, that's enough. We won't go to Venice!"

Finishing her words, Lin Chi-ling dived under the blanket.

"Phew," Charles gazed at the ceiling, feeling her service.

...

Around noon, Charles met Jeffrey Katzenberg at the Mandarin Oriental Hotel.

"Good afternoon, Charles. The Shanghai Universal Studios Resort project is going very well. It will surely impress once completed," Jeffrey Katzenberg said, stirring his coffee.

Charles noticed a confident glow on Jeffrey Katzenberg's face.

"The distribution contract for DreamWorks Animation after next year needs to be discussed, right?" Charles asked, knowing that DreamWorks Animation was just a production company and reliant on big Hollywood companies for distribution.

Especially for animated features, the promotional strategies are much less compared to live-action films, which highlights the importance of the distribution company!

Jeffrey Katzenberg smiled, "The contract with Paramount doesn't expire until next year, so we will start talking to other distributors then. Universal's interest in DreamWorks Animation isn't that high, is it?"

Because Capet Pictures merged with Universal Animation, and the performance of this year's release, Hop, was quite good. Moreover, Capet Pictures' second independent production, The Lorax, was to be released next year!

Charles shook his head, "The DreamWorks Animation library is a great addition to Capet's children's cartoon market. Our timing for entering the children's animation market was too late!"

Jeffrey Katzenberg understood what Charles meant and laughed, "Charles, DreamWorks Animation is also expanding. We're trying hard to develop movie-themed parks. Although it is very challenging, I won't give up the chance for DreamWorks Animation to rise!"

Charles smiled, nodded, "I understand your thoughts, and if you find this path unfeasible in the future, Jeffrey, you should know that the only competitor to Disneyland right now is our Universal Studios. And the one most likely to surpass Disney is Capet. You agree, right?"

Looking at how, with the economic recovery, visitors to Disneyland increased, pushing Disney's stock price up; Capet had just gone public and dominated Hollywood box offices. Should Disney complete its IP layout, it would be quite difficult for anyone else!

Jeffrey Katzenberg thought about it. Now, Time Warner, Capet Universal, and Disney are first-tier; the other five are second-tier. Even Comcast's acquisition of MGM can't compare, as they're primarily a cable operator offering content.

"Charles, I understand what you mean," Jeffrey Katzenberg assured, "If I retire and need to find a home for DreamWorks Animation, Capet Universal will be my first choice."

This claim was similar to George Lucas promising to hand over Lucasfilm to Disney. But George Lucas was the sole owner of Lucasfilm. However, DreamWorks Animation was a publicly-traded company. Even though Jeffrey Katzenberg's suggestion was important, it wasn't decisive!

Jews, huh...

"Jeffrey, this would be the best future for DreamWorks Animation," Charles extended his hand to shake Jeffrey Katzenberg's.

...

After leaving the Mandarin Oriental Hotel, Charles returned to Universal's Hong Kong headquarters.

"How did the negotiations with Jeffrey Katzenberg go?" Xu Xiaoling asked, pouring Charles a glass of red wine.

Charles took a sip and shook his head, "This guy, what can I say, he's somewhat stubborn. Maybe he's envious, seeing the revenue from Disneyland and our Universal Studios theme park model, now he's gathering worldwide investment to support his dream of a movie-themed park, primarily targeting funds from China and the Middle East!"

Xu Xiaoling was puzzled, "Wouldn't that be a good way out?"

Charles shrugged, "Indeed it would, but you must ensure the quality and influence of your works. Look at DreamWorks Animation now; it's visibly declining. Lack of new ideas, sequels to old IPs with declining reputation. DreamWorks Animation is a public company and needs to file reports. Currently, DreamWorks Animation's income still mainly relies on the films themselves, including box office, DVD sales, and TV licenses with some commercial licensing."

In Universal Studios Singapore, there were quite a few licensed properties from DreamWorks Animation, but since the whole park operated on a licensing model, DreamWorks Animation's returns from Universal Studios Singapore weren't significant; after all, the park's scale was only so large!

With animation and visual effects studios springing up in recent years, the high cost of labor in Hollywood led film companies to outsource. Canada and Australia were the first tier, followed by outsourcing to Asia.

DreamWorks Animation and Pixar stood out due to strong original ideas. Without creativity, these animation and VFX studios would be like any other studio!

Jeffrey Katzenberg's strength should have been in content production, but he insisted on playing with capital?

*****

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