This year's International Film Summit Forum was a semi-official, semi-private event. The organizing committee of the Demon City International Film Festival invited a variety of film industry figures, both domestic and international, and for the first time allowed live coverage of the event via text and images on the internet. Media access was also opened up; journalists who were lucky enough to win a spot through a lottery system could secure a ticket to hear experts share their insights.
Arriving early, Lin Feng, an entertainment reporter, entered the number two hall at the Demon City Grand Theater. Only a handful of attendees were there, scattered across the hundred-seat space.
Though Lin Feng was a reporter, he knew he was just an observer here. This high-level discussion among film industry elites offered no chance for questions or interviews from someone in his position.
After locating his seat, Lin Feng found that each spot was thoughtfully stocked with a handout listing the names and profiles of the forum participants. He scanned the list, finding many names unfamiliar even to him, despite being in the industry.
Among the most recognizable names were those from his own country and Hollywood, such as the "Bald Brother," "Big-Tooth Director," Boss Wang, Boss Zhang, and Boss Yu.
From Hollywood, the lineup included some big names too, with Matthew, Fast & Furious director Justin Lin, Oscar-winner Susan Sarandon, and Barry Levinson, the director of Rain Man and chair of the film festival's jury.
As for the other countries, Lin Feng recognized only two: French director Tran Anh Hung and Spanish actress Paz Vega, who had left a strong impression on him with her performances in daring roles.
As more attendees filled the hall, the space was soon packed.
The forum's host took the stage, and it was none other than Yang Lan, who rarely appeared publicly. Her presence lent an extra air of importance to the event.
At precisely 9:00 a.m., the forum's panelists entered, taking seats arranged in a semi-circle on a stage designed like a small amphitheater. In this setup, only those seated on the stage had speaking rights.
"Driver, can we go any faster?"
In a nearby car, Nini urged her driver impatiently. "We're already late!"
The driver gestured ahead with a sigh. "We're in a traffic jam."
Frustrated, Nini reached for the door, only to be stopped by her agent, who reminded her, "It won't help; the whole road's blocked."
Seeing the gridlock stretch on as far as she could see, Nini sat back, resigning herself to her seat. She'd hoped to make an impression on some of the influential figures at the forum.
"Don't worry," her agent reassured her, sensing her ambition. "Some things can't be rushed."
Nini took a deep breath and nodded. "I know."
After more than half an hour stuck in traffic, Nini finally arrived at the theater close to 10:00 a.m. Following her agent's advice, she decided not to disrupt the forum by walking into the main seating area, instead positioning herself near the entrance where she could see the stage.
The forum would continue over the next few days, but Nini was eager to attend today because Matthew would only be participating in this session.
She looked toward the oval setup on stage, spotting Matthew on the left, occasionally leaning over to whisper with Justin Lin but otherwise remaining silent.
He had told her the other night that he was just there to listen. His words were clear: unless the discussion touched on something he cared deeply about, he wouldn't get involved.
Glancing out at the audience, Nini saw that every seat was filled.
The forum's theme for the day was "Film and Market," with the discussion initially directed by Yang Lan. Gradually, it shifted to a more open debate, and Matthew mainly listened, only chatting briefly with Justin Lin.
"The hottest movie in theaters this week is Fast & Furious 5," commented Boss Yu, the founder of a well-known film company. "Yesterday, I made a point of visiting a few theaters and noticed something interesting."
Hearing his film mentioned, Matthew became attentive.
Looking over at Matthew, Boss Yu continued, "Mr. Horner, would you care to discuss this with us?"
Matthew offered a polite smile. "Please go ahead."
Boss Yu's face brightened with a smile. "I noticed that the best-selling item in the concession area was a Fast & Furious 5 'family' T-shirt, priced at 100 yuan."
He chuckled lightly. "I wouldn't say they're flying off the shelves, but the T-shirts are selling quite well, along with other Fast & Furious 5 merchandise."
Matthew didn't respond immediately, unsure where Boss Yu was going with this. He knew about the merchandise sales Boss Yu mentioned; after finalizing Fast & Furious 5, he had arranged for low-cost, high-quality merchandise to be manufactured in Yiwu, shipped to North America, and distributed there.
Even though he didn't expect much from the merchandise sales in this market, he had set aside a portion, distributing it through Disney Greater China and Helen Herman's local company to place them in theater concession areas.
Compared to North American standards, these sales figures were modest, but for the local market, where merchandise sales for films were generally poor, the results were decent.
Finally, Boss Yu posed the question he had in mind. "Mr. Horner, may I ask you something rather bold?"
Matthew nodded slightly. "Go ahead."
"For films you've invested in, such as Fast & Furious or Twilight," Boss Yu asked directly, "what percentage of the total revenue comes from box office earnings?"
He added, "Feel free to include films you've starred in."
Originally, Matthew had intended to stay out of the discussion, but since the question was directed at him, he didn't plan to avoid it.
After a brief pause, he replied, "Roughly 25 to 35 percent, depending on the film. Generally, the higher the box office earnings, the better the merchandise sales."
Hearing this, several faces in the audience shifted subtly, not only among the local attendees but also among other filmmakers and producers from different regions.
For most of them, box office revenue accounted for over 90% of a film's total income.
Matthew knew that the film industry here still had a long way to go. Building a robust industrial chain wouldn't happen overnight, and nurturing audience consumption habits and awareness around copyrights would also require time.
Awards from international festivals wouldn't solve these issues.
"What percentage of revenue does box office usually account for in films we release here?" Boss Yu's question was aimed at the group.
Boss Wang, also in the film industry, answered, "On average, over 95%."
The Chinese attendees looked disheartened. Most of them were producers or investors who, like all businessmen, pursued clear-cut goals.
Boss Yu sighed, adding, "Let's not talk about the unrealistic international market—where is our domestic market for film-related merchandise?"
This question visibly struck Matthew, who had lived here for many years.
"For any film market to mature, it needs a development period, especially for the merchandise sector," he said, choosing his words carefully. "Film merchandise is an essential part of the film industry's value chain, meeting the cultural consumption needs of audiences. With the domestic market for film-related products still in its infancy, there's a vast space for development and marketing of these products."
Several local participants nodded in agreement, and even Lin Feng, listening in the audience, found Matthew's points persuasive.
A few years ago, Matthew wouldn't have been able to articulate such thoughts, but his recent experiences with investments, film production, distribution, and merchandise revenue had given him plenty of insight.
Effective merchandising requires well-known characters and visionary developers in the merchandise sector. Here, many films have distribution rights but lack original licensing rights, thus preventing merchandise development; others have licenses but lack the awareness to capitalize on them; and some may have awareness but lack the capability to develop merchandise independently.
After a pause, Matthew continued, "This process can't be rushed. It's essential to move beyond short-term projects, branded production, and fast money. Study the market thoroughly, and develop products that align with the preferences of audiences within the target age group. Additionally, it's vital to clarify intellectual property ownership, establish a consistent network and sales channels for merchandise, and create specialized consumer products companies that cover various price points. Above all, patience is needed to cultivate a long-term habit of consuming film-related products."
Boss Yu and Boss Wang exchanged glances, recognizing the importance of Matthew's suggestions. He had pointed out the biggest issue facing the local film industry's offline market while providing an excellent solution.
Matthew cleared his throat and added, "Film should be seen as an entire industry chain, with what we see in theaters acting as the train engine driving it all forward."
From his own experience, Matthew knew that the way forward was industrialization. The larger the scale, the more films would be produced, and while there would be an increase in subpar movies, the proportion of quality films would also rise.
In the end, great films often emerge on the foundation of many lesser ones.
A round of applause filled the room.
Lin Feng looked around at his fellow reporters, all clapping along. Was it just his impression, or was Matthew Horner, this Hollywood star, truly different? It felt as if he genuinely wanted to help improve the local film industry.
At the very least, his suggestions were practical and sincere.
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