I am Hollywood

[Chapter 1195: The Little Guy's Name]

In the original plan, the first installment of the Lord of the Rings was set to be released in 2D, 3D, and IMAX formats simultaneously. The release date for the first film was December 17, exactly four weeks after the opening of Gravity. Based on the usual box office trends for most films, it would have been expected that Gravity would be willing to relinquish some of its 3D and IMAX screens after four weeks.

However, with Gravity's strong box office performance, the film was able to sustain its current screen count for over eight weeks. Moreover, from a purely commercial standpoint, even if Gravity suffered some degree of box office decline, theaters would likely hesitate to give up too many screens to Lord of the Rings.

This was largely due to the film's duration, which was nearly 180 minutes long, limiting the number of screenings to just five per day per theater. While North American ticket prices might adjust according to showtimes, they wouldn't change significantly based on the length of the film. In contrast, Gravity, which was half the length of Lord of the Rings, could accommodate up to nine showings per day at the same theater -- potentially generating almost double the box office revenue from the same occupancy rate.

Initially, during the distribution phase, Firefly Group was already aware of the situation. Therefore, the primary focus of the first Lord of the Rings release was on 2D formats, with the company preparing 2,800 screens for 2D, while only supplementing with 3D and IMAX showings to save substantially on print costs.

Yet now, since advertisements had already announced simultaneous releases in 2D, 3D, and IMAX, and given the overwhelming positive response for 3D and IMAX, if they suddenly canceled those formats, it would undoubtedly frustrate eager fans.

Confronted with the current demand and strong requests from theaters, Firefly Group eventually decided to increase the number of 3D screens. After discussions with company executives, Eric approved this change. However, to ensure optimal viewing quality for the additional 3D theaters, Firefly agreed to supply 500 RealD projection systems, overseeing the selection of venues, equipment installation, and staff training.

In light of the theaters invoking buyout clauses from earlier contracts, the transaction for these 500 RealD systems did not include any profit-sharing agreements. Nonetheless, Firefly was firm with a price tag of $500,000, which was more than double the manufacturing cost of the entire set of equipment and five times the approximately $100,000 price of traditional film projectors in the market. Here, Firefly stood to gain over 100% gross profit.

Additionally, the contract specified that future supplies like replacement bulbs, 3D glasses, and other consumable components had to be purchased from Firefly's RealD division, which would also ensure a steady stream of considerable profits.

Though exhibitors winced at Firefly's hefty demands, they ultimately accepted the offer. For context, Gravity had an average revenue of $60,000 per 3D cinema in its first week, meaning the theaters could recoup their $500,000 investment in equipment in about a year. Ordinary 2D theaters, on the other hand, often took two to three years to recover comparable initial costs.

Due to Firefly's strict requirements, it would take at least a month to upgrade the additional 500 theaters for 3D. Transforming IMAX theaters was an even more complex task, and Firefly had little hope of increasing the number of IMAX screens before the summer blockbuster season, thus opting to utilize the existing locations across various museums and science centers worldwide.

...

As Jeffrey Katzenberg and Richard Gelford discussed collaboration agreements and the expansion of IMAX theaters, one of Katzenberg's assistants walked over and whispered something.

"Well, let's keep it at that for now," Katzenberg said, nodding after hearing the news. "The CEO of Sony Pictures America, Hirai Kazuo, has arrived."

Upon hearing that name, Gelford immediately understood Sony's interest. The core and most expensive component of the RealD projection system was two custom film projectors, for which RealD had opted to use Sony projectors for various reasons. The order for 4,000 RealD systems, amounting to 8,000 projectors, had already netted Sony substantial profits, and it was one of the factors that led Sony to yield to Firefly's pressures last year when Columbia Pictures was once again sold.

With the future of 3D films becoming clearer, the global film industry was poised for a wave of equipment upgrades. Currently, the number of film screens worldwide had surpassed 100,000 and was still rapidly increasing. If a mere 30% of these screens transitioned to 3D, it would result in a demand for 60,000 new projectors.

Similar to the automobile industry, film projection equipment was also characterized by the significant profits from ongoing consumable repairs, which equaled or surpassed the initial equipment sales. Thus, those 60,000 projectors, along with their consumable parts and maintenance, promised to contribute billions in revenue for equipment manufacturers.

This lucrative opportunity made film device manufacturers reluctant to see their market share constrained by Firefly Group. However, with Firefly's RealD system having taken the lead, traditional equipment manufacturers needed at least six months to completely catch up in the 3D projection technology. That six-month timeframe could be sufficient for RealD's standards to set a dominant footing in the industry.

Moreover, any promotional efforts without the support of Hollywood's film sources would likely fail. Therefore, short-term, these equipment manufacturers seeking a share of the profits had no choice but to become core suppliers of the RealD systems.

Although a significant portion of the profits would go to Firefly Group, at least this route could secure their market share. Even if Firefly took a cut from maintenance and consumables, it would still be far better than for those manufacturers excluded from the 3D market.

As a result, in recent days, nearly all mainstream film equipment manufacturers were closely engaging with Firefly Group, hoping to secure orders for RealD projection systems. Given their position with Firefly and in light of other manufacturers' frequent actions, Sony was swiftly losing its desire to remain aloof. If they lost their position as a supplier of RealD projectors while already enjoying a competitive advantage, Sony would undoubtedly become the laughingstock of the industry.

After a few more exchanges, Katzenberg sent Gelford on his way and returned to his office in the studio.

...

Sony Pictures America CEO Hirai Kazuo stood tall, a rarity among the Japanese, yet had small eyes.

Upon meeting Katzenberg in the lounge, Hirai performed a customary bow and extended his right hand to the powerful head of Firefly Group. "Mr. Katzenberg, it's a pleasure to meet you. I'm Hirai Kazuo."

Katzenberg shook his hand. "Hello, Hirai. It's great to have you here in Los Angeles."

After exchanging a few pleasantries, the two entered Katzenberg's office and sat down in the meeting area. As the secretary brought in coffee for both of them, Hirai brought up another subject. "Mr. Katzenberg, I reached out to Mr. Williams's assistant's office hoping to meet with him or drop by for a visit while I'm in Los Angeles, but was turned down. I wonder if you could convey my sincerity to Mr. Williams?"

"Well, I'm afraid you might not get that chance this time," Katzenberg said, shaking his head. "Eric is currently on vacation and isn't in Los Angeles."

"Is he in New York?" Hirai asked. "If so, I could visit him when I return."

"Not really," Katzenberg replied, shaking his head again. "I spoke with him yesterday, and he's in Florida, and he doesn't want to be disturbed right now."

"Oh, that's quite unfortunate."

Katzenberg took a sip from the coffee his secretary had brought him, setting the cup down, he remarked, "Let's talk about the RealD system. Hirai, I must regrettably inform you that Sony's desire for exclusive supply of the RealD projection equipment is no longer possible."

...

Meanwhile, while Katzenberg was busy in Los Angeles, Eric relaxed alongside a tennis court at IMG Academy in Bradenton, Florida, watching a tall, youthful girl practice tennis with Emma and Kevin.

Sitting next to him was his daughter Hawaii, who, although dressed in a lovely tennis outfit, wasn't interested in playing. Beside him was IMG's CEO, Payne Forstmann, and IMG's top agent, Max Eisenberg, who were also in Florida.

With Cindy nearing her due date, Eric had rushed back to New York just days after Gravity was released.

During Thanksgiving, he spent time in the Martha's Vineyard estate with Virginia and the three kids.

Though the women couldn't fully accept one another, they managed to maintain a friendly facade. Joanna even offered to stay at Martha's Vineyard for a while to look after Cindy until the baby was born.

However, with a group of women gathering to be part of the action, the Martha's Vineyard estate took on a somewhat matriarchal vibe.

Thus, Eric felt out of place amidst it all; complaints inevitably arose. Just under a week later, he found himself sent away.

Of course, that description may sound exaggerated, but it was essentially true. Virginia used Eric's lack of time spent with the kids as an excuse to have him take the three of them out. Emma was the first to shout about going to Disneyland, so Eric took the kids on a flight to Orlando.

Being in a tropical region, Florida was at peak tourist season, and the lines at Disney World were long. Considering safety, Eric couldn't take the kids into the throngs of visitors.

Thus, for three consecutive days, certain attractions at Disney World were reported as "under maintenance." Local tabloids boldly uncovered that a big player had rented out venues for their own children to play, which led to widespread outcry among visitors.

After all, it was an enterprise under his group; he had to be mindful of the impact. Eric had no choice but to escape with the kids in tow.

Speaking of which, Firefly had several enterprises operating in Florida.

The Orlando Disney World, encompassing over 20 square kilometers, was just the beginning; Digital Domain had a branch in Florida and developed the world's largest rendering farm near the nuclear power plant in South Florida. ABC Group and MGM's Rainbow Media also owned several local television stations in Florida.

Moreover, Eric had recently acquired IMG Group, which was headquartered in New York but had an impressive 500-acre IMG Academy in Bradenton, Florida.

Many sports stars trained frequently at IMG Academy, and thus they naturally resided in Florida, with IMG hosting various tennis and golf events annually in the state.

Bradenton was located on Florida's west coast, just over 100 kilometers from Orlando.

Since it was no longer feasible to continue enjoying Orlando's Disney World, Eric took the kids to IMG Academy in Bradenton.

...

"Maria was initially trained by her father, who lacked a systematic scientific training approach and only knew how to exhaust the girl's potential. During the last physical examination, we even found hidden injuries on her shoulder, which could lead to serious long-term issues. Now, Maria's training is fully overseen by Mr. Politini, and she's putting in significant effort, so her future accomplishments will undoubtedly surpass Anna's by a wide margin."

At the edge of the tennis court, Payne Forstmann personally updated Eric about Maria Sharapova's training status. Just then, Emma came running over, and Eric took the tennis racket from her hand, wiping the sweat from her forehead. "Are you tired?"

Emma tugged on Eric's hand, wanting him to join the game. "Maria is so amazing! Daddy, can you play with her?"

"Daddy doesn't know how," Eric replied, observing Kevin, who was now in Emma's place under Natasha's watch. He smiled, "Maria is older than you, of course, she's amazing. Now, go have fun! I'll take you out to eat something delicious later."

Emma, however, didn't leave. She leaned on Eric's knees and looked up. "Daddy, Auntie Cindy's baby is coming soon! Can we go back to New York? I want to see the baby!"

While he was eager to be by Cindy's side to witness the birth, he was reassured seeing her surrounded by women. Besides, there weren't any internal fights; Eric felt relaxed about it.

Handing the tennis racket back to Emma, he said, "Let's play for another couple of days before we go back. Kevin wants to go to the Bahamas; thinking only of yourself isn't good."

Emma earnestly nodded but still stayed, saying, "Daddy, I thought of a name for the baby!"

Eric chuckled, "What is it?"

"Tony! Tony Williams," Emma beamed. "Just like your name in Iron Man. What do you think?"

"That's something you can tell Auntie Cindy when we get back. If she likes it, then it's up to her."

Lately, the subject of the baby's name had attracted considerable interest, as they already knew it was a boy, and the women offered varied suggestions.

During Thanksgiving, Drew decided on "Manhattan" based on Hawaii's naming rules, prompting Eric to picturize a certain blue-skinned, naked character from DC Comics, after which he playfully knocked her on the head.

*****

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