The U.S. National Security Strategy Report typically comes out at the end of May, and it's a big deal—something that shapes the international order.
Over the past year, the "9/11 attacks" happened, the war on terror kicked off, and the Bush administration's foreign policy has been under a global spotlight.
After the Cold War, the Clinton administration ditched a bunch of old, aggressive policies, opting for a passive "wait-and-see" approach. They tightened the budget and pulled the U.S. out of an economic slump fast. But a decade later, the world's a different place.
Enter the new Bush administration—straight out of the Republican camp. Bolder! Flashier!
From media predictions and insider leaks, it's clear they're scrapping the old "wait-and-react" stance for a "strike-first" attitude.
Take Secretary of State Powell's words, for example: "The gravest threat we face is the blend of radicalism and technology." "9/11 showed that even without weapons of mass destruction, terrorists can still threaten America through other means." "The U.S. government needs to step up in military strength, homeland defense, the justice system, and intelligence…"
Dunn Walker doesn't have a seat at the table for global politics or military strategy, but he still got a warm invite from the White House. And he wasn't alone—20th Century Fox, Paramount, Disney, Warner Bros., MGM, and other Hollywood heavyweights were all called in too.
This time, the National Security Strategy Report isn't just about the usual military and geopolitical stuff. It's bringing back a Cold War buzzword: color revolution!
In the Bush administration's view, military action alone won't cut it. While they're preemptively hitting terrorists who might threaten America and its people, they also want to wage an ideological war against global terrorism—and win it.
Plain and simple, it's cultural export!
They want the world's mindset to align with American-style justice, not to stir up support for terrorism when war breaks out.
Back in the Cold War, Congress would dish out hefty "democracy funds." But now? It's way easier. With economic globalization, American trends are already swaying the world—especially Hollywood movies, which are taking over everywhere!
Movies are the most direct, effective way to push culture.
During the meeting, a bunch of federal bigwigs chimed in, urging these Hollywood execs to make more films championing "democracy" and "freedom" while steering clear of America's dirty laundry.
The Defense Department jumped in too, saying if you're shooting a military flick that fits the "American spirit," just apply to them. If it gets approved, all the military gear costs—tanks, planes, you name it—go straight into the Defense budget. They'll cover it.
Dunn and the others weren't exactly thrilled by the White House's spiel. They're businessmen—they want policies that work for them, not the other way around. But the Defense Department's offer? That got the Hollywood bosses buzzing.
Now that's good news.
War films eat up cash—tanks, jets, aircraft carriers, warships. Even a few minutes of footage can cost millions. For a while, Hollywood had to lean on Defense Department training videos, chopped up and edited together, just to make it work.
Then the civil affairs folks and other departments piled on, rolling out policies to back these "color" films. Tax breaks, government perks, local support—they're dangling all kinds of carrots to get Hollywood on board.
Dunn couldn't help but smirk to himself. "This is the government handing Hollywood a welfare check."
With benefits on the table, everyone was quick to agree. They'd ramp up production on these kinds of movies, no problem.
But here's the thing: right now, the feds need Hollywood more than Hollywood needs them. A little national handout isn't enough—these big shots are going to push for more, squeeze out every advantage they can.
When it was Hollywood's turn to speak, Disney's Michael Eisner brought up piracy. He said it's getting out of hand in the U.S., but overseas? It's a disaster. Piracy's already cost Disney at least $20 billion in intellectual property losses! Countries in Asia, Africa, and Latin America are openly using "Mickey Mouse" and "Winnie the Pooh" trademarks, and pirated DVDs are flooding the market. He wants the feds to crack down.
Warner Bros.' Barry Meyer jumped in next. He's all in for the feds' "Spring of Democracy" push and happy to have Warner's films play along. But the global movie market's still a mess—tons of countries are blocking Hollywood films to protect their own industries. That's a blatant violation of WTO agreements, he argued, and he's hoping the feds will lodge diplomatic protests or slap on some economic sanctions.
Per WTO rules on film revenue splits, foreign movies get 35% to the producer, 17% to the distributor, and 48% to the theaters. That's the bare minimum. So, any country in the WTO showing Hollywood films should net companies like Universal, Disney, or Paramount—with their own distribution channels—at least 52% of the overseas box office. That's neck-and-neck with the U.S. average of 53%!
In places like Korea, Japan, the UK, Germany, and Hong Kong, where IP protection's a big deal, splits can even hit 55%—more than in the U.S.! But America's "double taxation" system takes a bite out of repatriated earnings. Even with tax breaks for films, Hollywood companies usually end up with about 41% of overseas revenue.
Then there's China—strictly capping foreign film imports at 20 a year, with a measly 15% revenue split. After "double taxation," U.S. studios are lucky to see 11% of the box office. It's peanuts.
Dunn knows this game too well. The WTO's a playground for developed nations, and China's got its own special rules—it's not something the U.S. can change. Instead of fixating on markets they can't crack, why not focus on countries America can sway?
At the table, Dunn's the youngest by far—younger even than the meeting's note-taking secretary. But he couldn't hold back. "Alright, let me say a few things."
His company's the smallest, with the lowest output, but he's the richest guy in the room and wields insane influence.
"I agree with the first part of what Mr. Meyer said. If we're going to use movies to push American ideology, Hollywood films need to get into every country smoothly. With the global economy booming, our movies are reaching further, but the pushback's growing too."
"Germany, the UK, Japan, Australia—these movie powerhouses can open up to Hollywood no problem. But weaker film industries? They're bound to throw up some protectionist walls. France, for instance, mandates every film gets at least two weeks in theaters. Officially, it's to 'give art a chance,' but really, it's to prop up French movies."
"I'm not talking about France here, though. I'm talking about Asia's big movie market—South Korea! People say Japan's the second-biggest market, but that's not true for Hollywood. The UK's our number two. Japan's not even ahead of Korea. Japan's got its own cultural vibe and resists outside influence—local films dominate there. Korea, though? They've got zero resistance to Hollywood."
Dunn's point hit home with the Hollywood execs. Right now, South Korea's box office top ten is all Hollywood blockbusters—and that's without fully opening their market.
Years back, to join the WTO, Korea signed a free trade deal with the U.S., cutting the required days for screening Korean films in theaters from 147 to 73. That sparked massive protests from Korean filmmakers—marches, sit-ins at the Blue House, the works. The government backed off, scrapping the deal and sticking to the 147-day rule.
That's obviously not in Hollywood's favor! With a WTO trade agreement in place, why should Korea get a pass?
Dunn's angle was clear: team up with Hollywood, pitch the White House and feds to pressure Korea's government, and revive the 147-to-73-day switch. More days for Hollywood means more cash in their pockets!
…
Dunn wasn't exactly thrilled by the meeting's agenda. He didn't buy that the feds would bother strong-arming Korea over Hollywood's pocket change, not with the war mess they're in now.
The real win? Those "special" Hollywood films now have federal budget backing. Plain and simple, it's a government handout.
The other ideas? Not likely to happen anytime soon. But it's worth planting the seed—once the war dust settles and the global scene stabilizes, they can make a move. Hollywood's got serious sway in Congress.
On the flight back to L.A., Dunn invited Ron Meyer onto his private jet.
"Vivendi's toast. You've seen it, right?" Dunn said, practically glowing.
Ron Meyer stepped onto the plush, jaw-dropping Boeing 747 and was speechless. A private plane like this? Outside of world leaders, maybe five people on the planet have one.
"I've heard some chatter. The Bronfman family's fed up with CEO Messier and wants him out, but…" Ron shrugged with a smirk.
Sure, Messier's run Vivendi into the ground, but he's a French national hero! With that kind of patriotic pull, French shareholders won't touch him. His influence is massive.
Dunn smirked back. "It's coming. Either it blows up big or crashes hard. When Vivendi can't hold on, Messier's out—even if it takes some dirty tricks."
"Dirty tricks?" Ron stared, stunned.
Dunn laughed. "What are you thinking? My reach doesn't stretch to France! Even if it did, you think I could meddle inside Vivendi?"
"You mean… inside?" Ron's eyes narrowed.
Dunn stayed cool. "Someone will make a move."
Business is like politics—never clean!