Chapter 127: Chapter 126: Cinema Chain
"What’s a ’cinema chain’?"
Matthew paused when he heard the term. It was a word he’d never heard before.
Judging by the sound, it seemed to be a new word formed by combining "cinema" and "chain."
’What could it mean?’
’To link all the theaters together?’
At the front of the hall, Zog continued to explain, "By joining the cinema chain project, the Zog Group will provide each of you with a detailed plan for cinema construction. You can choose to either renovate your current theaters or purchase new land to build."
"And the money for renovations and land purchases?" the portly manager from Chenxing Port asked, raising his hand.
Zog smiled faintly. "We can provide..."
"Ooh?" A murmur of surprise went through the hall.
"Loans."
"Oh." The managers were greatly disappointed.
Zog pursed his lips. ’They want a free cinema? What are they thinking? If the Group paid for everything, why would I bother gathering all these theater owners? Even opening a franchised milk tea shop requires you to pay for the store and the franchise fee yourself.’
"Once the cinemas are built, they will be uniformly managed by the Zog Group. Everything from staff recruitment and cinema layout to the snacks and drinks sold must adhere to our standards."
With a large-scale chain, you have to ensure a consistent customer experience at every location. That’s how you build brand recognition, so people will choose your business wherever they go.
A single boutique shop needs to raise the ceiling of the customer experience, whereas a chain must guarantee a stable floor.
"After the cinema chain is established, the Group will centrally schedule the film programming for all cinemas—that is, which Shadows of Evil will be shown, as well as their showtimes and schedules. The cinemas will also be required to cooperate in promoting new Shadows of Evil. Now is the time for questions."
"How are we supposed to profit from this?" someone shouted from the audience.
"Through a box office split," Zog replied. "Twenty percent of all ticket revenue from the cinema will be distributed to the cinema operator."
The crowd fell silent. Clearly, this was not a satisfactory figure.
When a theater troupe came to perform, the theater would get at least fifty to sixty percent of the revenue. Plus, a troupe’s performance required the actors to be physically present. A Shadow of Evil was much simpler—it only needed a Magic Crystal Stone.
Matthew cracked his knuckles, producing a series of sharp clicks.
His doctor had warned him it was a bad habit, but he was used to cracking his knuckles when he thought. It helped him concentrate.
Many people have all sorts of odd little habits, either to help them think or simply as unconscious actions.
He calculated whether a deal with a twenty percent cut was worth it.
It seemed like a raw deal, but he believed the market for Shadows of Evil was bound to grow.
Especially since the Zog Group had started selling cameras, the number of people filming Shadows of Evil was increasing daily.
To make the cameras more widespread, they had pioneered a very clever business model.
They sold the core of the camera to other manufacturers—the key component that allowed images to be stored on a Magic Crystal Stone. The remaining parts could be designed and manufactured by each company according to their own needs.
This meant that once the production of Shadows of Evil surged, the Magic Cinemas would almost never be idle.
In contrast, theaters often went several months a year without any scheduled performances.
Furthermore, a Shadow of Evil could be played continuously, whereas a play had far fewer possible showtimes in a single day.
’A twenty percent cut isn’t completely without profit.’
"However, to encourage everyone to put real effort into promotion in their respective cities," Zog added, "the revenue share will increase once a cinema’s earnings reach a certain threshold. The higher the revenue, the higher the split. It’s a tiered system, going up to a maximum of fifty percent. The specific details will be laid out in the contract."
At these words, the managers began to murmur among themselves again.
"Besides the split, are there other ways for a Magic Cinema to generate revenue?" the portly manager asked again.
The theater in Chenxing Port was a very famous grand theater in the Sutton Kingdom. Being in a coastal city, it even hosted an annual drama festival.
In the face of the assault from Shadows of Evil and Demon Vision, his several theaters were among the least affected.
Among this group of theater managers, he gave off the faint air of an opinion leader.
"Of course. Similar to Demon Vision, advertisements can be added before the official screening of a Shadow of Evil. Within the allotted time, the cinema operators in each region can choose the ads themselves."
Ever since the Magic Vision Device began selling in major cities, everyone had come to recognize the importance of advertising.
A well-made product was less important than a well-made advertisement.
Advertising prices, which started at "pay a little and you’re on," had been driven higher and higher.
"I have one more question," the portly manager said, raising his hand again. "Is it really necessary to convert our theaters into dedicated Magic Cinemas? After all, in the past, we just hung up a screen, and the audience watched just fine."
"Besides, we have Magic Vision Devices now. Shadows of Evil that have been out for a while are shown on those. Is the appeal of a Magic Cinema really that strong? If we could join the cinema chain without having to renovate, I think everyone would be more than happy to join."
The few managers next to the portly one nodded along, showing their agreement.
Zog didn’t directly refute his point. Instead, he walked toward the audience.
This frightened the portly manager, who shrank back in his seat, thinking Zog was about to resort to violence.
"I am a Baron, bestowed the title by the King of Sutton himself! You can’t do anything to me."
His trembling voice was not very convincing.
He had successfully chosen the least threatening threat he could have possibly used against Zog.
However, Zog had no intention of getting physical. He simply sat down in an empty seat.
"Let’s watch a short film together and experience the appeal of a Magic Cinema."
As Zog finished speaking, the last of the lights in the hall dimmed.
An image appeared: a skier standing atop a snowy mountain. The picture was so clear it was as if the person were standing right before them.
This was a diffuse reflection silver screen coated with metallic powder. Its ability to project Illusions far surpassed that of an ordinary screen.
The massive screen, over twenty meters high and more than ten meters wide, delivered a powerful visual impact.
The skier wasn’t on the usual pair of skis, nor was he holding any poles. He stood sideways on a single board, facing a slope so steep it was almost a cliff.
Without a moment’s hesitation, the skier jumped.
"Ah!" The audience gasped.
The skier landed steadily on the slope and shot down at an incredible speed.
The sound of the board carving through the snow, the whistling wind, and the skier’s ragged breaths seemed to envelop the entire hall.
Matthew now understood what the circle of horn-like machines on the ceiling was for.
The immersive, detailed sound, combined with the incredibly fast-paced visuals, made him tense up as well.
This was an experience that Demon Vision and a simple screen hung in a theater could never provide.
A one-of-a-kind experience.
Matthew had no doubt that audiences would pay for this.
Onscreen, the skier shot up a ramp and used his momentum to launch high into the air.
Everyone in the hall held their breath in suspense.
After a series of wild aerial rotations, the skier landed perfectly.
Then, a slogan appeared.
"Red Dragon Beverage. Your energy is beyond imagination."
’This is an ad?’
’All this fanfare for an advertisement?’
The lights came up again, but the audience had yet to break free from their state of tense excitement.
Zog was very pleased.
He had agonized for a long time over how to demonstrate the audiovisual impact of a Magic Cinema in such a short period.
It was only after discovering a traditional, energy-boosting drink from the Northern Domain that he decided to create a short extreme sports film.
’Watching someone risk their life on the big screen really is thrilling.’
Zog rose to his feet again and asked the stunned audience, "So, do you have faith in the Magic Cinema now?"
The portly manager exchanged a look with the men beside him.
"A truly stunning presentation. However, if you could raise the percentage of the split, I believe your cinema chain project could be implemented much faster. Wouldn’t you all agree?"
"Yes."
"Right."
"That’s right."
The others chimed in with their support.
Zog wasn’t surprised by this reaction. ’Businessmen...’ he thought. ’This temporary alliance is about as solid as a pinky swear between children.’
Zog said unhurriedly, "The sooner you sign the contract, the lower the interest rate on your loan. The very first person to sign will receive a zero-interest loan."
"This isn’t about interest, and it’s not like we’re being greedy. A higher split would simply allow us to build better Magic Cinemas," the portly manager said with a chuckle.
He seemed confident that no one would give up the chance for a higher split over a little bit of interest.
Unfortunately for him, people are difficult to unite.
Before he could even finish his sentence, Matthew stood up and said urgently, "I’ll join the cinema chain project."
With Matthew’s capitulation, the remaining theater managers, fearing they would be left behind, rose one after another.
"Excellent," Zog said, satisfied.
