Chapter 564: Aiming Straight at Disney

"Walt Disney used to be just an animation label, but since the end of the last century, they've been steadily transitioning into a media conglomerate—and they've largely succeeded."

The atmosphere in the room had suddenly shifted. Now Duke was doing the talking, and Rupert Murdoch was listening.

"I'm sure you know full well that Walt Disney has been steadily pushing into the adult market while maintaining its dominance in children's entertainment, eating into a significant chunk of the market that originally belonged to us," Duke added.

The rise of any media company inevitably harmed the interests of the established powers.

Although Rupert Murdoch neither nodded nor voiced his agreement, Duke could read the approval on his face.

"Have you heard, Rupert?" Duke dropped a piece of news. "Walt Disney has reached a preliminary cooperation agreement with Steven Spielberg. If all goes as planned, Disney Pictures will become the distributor for the DreamWorks Live-Action Film Studio."

This meant Walt Disney would receive massive reinforcement in its weakest area: live-action film projects.

"Disney has built a very solid foundation in North America," Rupert Murdoch finally spoke up. "Even if we try to snipe them, it won't have any obvious effect."

"That's true." Duke completely agreed, but then he pivoted. "But what if it's an emerging market?"

"Which emerging market?" Murdoch was a bit puzzled.

Duke pointed to the west, offering a hint. "Rupert, across the Pacific Ocean. That country you've always wanted to enter."

"I'm sure you know the vastness of that market even better than I do." Without waiting for Murdoch to answer, Duke continued. "I don't know much about the rest of the media industry, but let's look at the film business. Movies and their related products are the main pillars of Fox's performance. Today, the film markets in North America, Europe, South America, and even most countries in Southeast Asia are basically mature. Even if they grow, there won't be any explosive surges."

Glancing at the thoughtful Murdoch, Duke picked up his coffee cup and took a sip before saying, "All of Hollywood has long since reached a consensus on where the last explosive film market lies."

Murdoch looked like he wanted to speak, but Duke raised a hand to stop him.

"I understand your concerns, Rupert. Right now, the box-office revenue-sharing percentage over there is genuinely pitiful, but don't forget the WTO memorandum of agreement regarding films and other cultural products. It will take effect in a few years, and the revenue share for Hollywood movies will jump to twenty-five percent. Besides, the box office has always been only a small fraction of our revenue. As long as a movie can enter that market, it opens up vast sales channels for our other related products."

Hearing this, Murdoch slowly nodded. "What does this have to do with us sniping Disney?"

"Because even when the WTO memorandum kicks in, there will still be a quota on the number of imported films. Compared to Hollywood's massive film output, that quota is truly tiny," Duke said.

At this point in time, anyone who wasn't a fool could see the potential and sheer scale of the market across the ocean. Although Duke had his own ulterior motives, everything he said was based on fundamental facts. Otherwise, how could he possibly sway someone like Rupert Murdoch?

He spoke in a matter-of-fact tone. "If a distribution company can win their favor, they will undoubtedly secure more import slots. Rupert, you've dealt with the people over there plenty of times. You should know the characteristics of that market."

Murdoch sighed softly. "Unlike here, personal relationships carry much more weight over there."

As he said this, he cast a glance at the woman beside him. Duke noticed the gesture. After all, rumors had always circulated that Murdoch had only married her to leverage her background, though the effect had essentially been zero.

"Disney is planning to build the largest Disneyland in Asia over there," Duke said unhurriedly. "The investment involved is in the tens of billions of dollars."

The moment he said this, Murdoch instantly understood Duke's implication. "Disney's approach is quite clever."

"Indeed." Duke looked at him, his tone turning very serious. "If Disney really reaches an investment agreement with them, it's not hard to imagine that Disney's products will swarm into that market."

This wasn't just imagination; it had already happened once before.

"What do you plan to do?" Murdoch asked.

Duke stayed silent for a few seconds before answering. "I've been over there too, and I have a basic understanding of their film industry and its related sectors. By my calculations, in eight to ten years at most, they will inevitably become the second-largest film market, right behind North America. I'm a major shareholder in Marvel and Warner Brothers, and I've invested in numerous popular film franchises..."

The Harry Potter Series, the Mission: Impossible Series, The Matrix Series—these were properties that even made Murdoch jealous. For someone who held the rights to these films and would continue investing in them, seeking to maximize profits was only natural.

"If Disney takes up too much market share, both the films I invest in and Fox's productions will be squeezed out." Duke naturally positioned himself on Twentieth Century Fox's side. "Rupert, my thought is, why can't we squeeze Disney out instead?"

"You mean obstruct Disney's plans to invest in and build Disneyland?" Murdoch immediately grasped Duke's intent.

Duke spoke directly. "I have reached a consensus with Warner Brothers and Time Warner. We've already submitted a proposal to build Warner Grand World over there, and our total investment amount is at least as much as Disney's, if not more."

"But we are a step behind Disney after all, and Warner Grand World's reputation in Asia falls far short of Disneyland's."

Hearing this, Murdoch's lips twitched slightly. "So, you want me and News Group to join?" he asked.

"Yes," Duke admitted. "If it's just Time Warner alone, we don't have enough certainty. But with your involvement, we have a great chance of squeezing Disney out."

As early as the 1990s, Rupert Murdoch had harbored grand ambitions of entering the market across the ocean. Although his attempts to this day had largely ended in failure, and even Phoenix Television hadn't quite succeeded, Murdoch had undoubtedly built a vast network of connections over there.

Murdoch laughed but said nothing.

"This is mutually beneficial for both of us." Duke knew that unless he saw enough profit, Murdoch absolutely wouldn't be tempted. "I'll take responsibility for convincing Warner. As long as the investment plan succeeds, News Group will secure a substantial investment stake. What's more, Warner Grand World could also be called Warner Fox World. Between the works and famous movie characters of our two companies, it's more than enough to support a theme park."

"They run on a society of personal relationships. While this might not completely eliminate their wariness, under similar conditions, they will definitely prioritize importing our products."

At this point, Duke emphasized, "These products won't just be movies. Rupert, don't you want to see Phoenix Television broadcast everywhere in that country?"

No matter how one looked at it, sniping Disneyland was a move where the pros far outweighed the cons for both Duke and Murdoch.

But Murdoch still remained silent, merely looking at Duke.

Duke sighed inwardly, understanding that talking about friendship or trying to get close was useless; to move Murdoch, he needed concrete, tangible benefits.

"James Cameron has a new project, but the investment is so high that it creates too much risk, so Fox rejected it," Duke said.

Of course, Duke wasn't a fool. "I know you still have a certain level of confidence in James Cameron, and your biggest hesitation is the investment risk. Rupert, I can co-bear the risk of this investment alongside Fox," he added.

He wasn't finished. "As long as I am still the largest shareholder in Marvel Comics, I will do my best to stop Marvel from reclaiming the film rights for X-Men and Fantastic Four," Duke said.

Rupert Murdoch stood up, clearly ready to end the negotiation. "I will consider your proposal, Duke."

Duke nodded and stood up as well, walking out together with Murdoch and his wife.

He knew very well that for a decision involving future business strategies and the direction of massive funds, even Rupert Murdoch would be cautious. If he had agreed on the spot, Duke would have doubted his sincerity.

The party came to an end. As Duke left, he deliberately walked alongside James Cameron. Although they couldn't be called friends, they weren't enemies either, and there was still the possibility of cooperation. Besides, when it came to new film technology, they could at least find some common ground to discuss.

It wasn't that Duke hadn't considered going after Avatar in the past, but he had ultimately chosen to give up the idea.

Setting aside whether James Cameron truly had the initial concept for Avatar ten or twenty years ago, Duke would have faced a massive number of hurdles just on the technological front alone.

To film this sci-fi masterpiece, James Cameron had been making preparations for years, continuously diving deep into the ocean to shoot 3D documentaries. He had partnered with Sony Electronics and the IMAX Company to improve filming and production technologies, and he held a vast number of patents in his hands.

Making a movie wasn't as simple as copy and paste. Knowing the production process of Avatar was one thing, but actually producing it was another matter entirely. Without years of preparation like James Cameron had put in, it wasn't even worth thinking about.

If he had about five years, Duke was confident he could produce the movie too, but there was no way he could spend that much time and energy on a single film.

To put it bluntly, although the outside world classified him as a tech-focused director, he wasn't a technological fanatic like James Cameron.

After the party ended, Duke handed over the relevant matters to Warner, Tina Fey, Nancy Josephson, and the rest to negotiate. He himself continued the preparations for Iron Man. After over four months of pre-production, the curtain officially opened for principal photography in Los Angeles.