In this regard, 20th Century Fox had some dissatisfaction, but they never expressed it clearly to Murphy. They understood that Murphy's films might not suit the tastes of audiences across the Pacific. However, unlike Murphy, 20th Century Fox was more patient, knowing that markets need to be cultivated. They continued their efforts to push this film through the stringent censorship.
Moreover, the collaboration between 20th Century Fox and Wanda extended beyond just movies. It was a strategic partnership between two major corporations, and Murphy's involvement wouldn't jeopardize the broader strategic plan.
After the brief Christmas holiday, Murphy's crew regrouped to continue the remaining filming of *City of Chaos*. Most of the film's scenes had been shot, leaving only some scattered parts to complete.
After the New Year of 2011, the filming entered its final stages.
While busy with filming, Murphy also instructed Gal Gadot to pay attention to financial matters. As the new year began, it was time to settle profit-sharing accounts with various companies.
From Miramax and Fox Searchlight to Warner Bros. and 20th Century Fox, Murphy had profit shares to collect. Even films without profit-sharing agreements had a small mandatory bonus due to Directors Guild regulations.
Times had changed. Murphy no longer needed to chase payments frequently. The relevant accounts were quickly sent to Stanton Studios by several companies. After the accountants reviewed them, Gal Gadot brought them to the Venice set for Murphy to inspect.
Although he only skimmed through the documents, Murphy noticed some changes. The most significant was the substantial reduction in DVD revenue and a noticeable increase in online-related income.
As a Hollywood director, Murphy was well aware of the changes in the film market.
Since the beginning of the new century, DVDs had been a major revenue source for Hollywood production and distribution companies. It wasn't an exaggeration to say that Hollywood relied on DVD sales for profit. Some blockbuster films like *Spider-Man* and *The Lord of the Rings* had DVD sales in North America alone that could surpass $100 million in the first week. Most of the films that made it into the top ten box office rankings each year could sell DVDs worth around $100 million.
The production cost of DVDs was much lower than the once-popular VHS tapes, not exceeding 1-3% of the wholesale price sold to retailers. Even considering marketing and other costs, the profit margins were incredible.
A single hit movie could earn $5-8 million from a single rental chain, which was just the rental portion. The sales portion was even more significant. This meant that a popular movie could bring in tens of millions or even hundreds of millions of dollars from DVDs, most of which were pure profit.
This was why it was said that Hollywood made money from DVDs.
However, anyone who paid attention to the relevant data could see that the heyday of DVDs was nearing its end.
Although Hollywood's DVD industry still maintained a scale close to $2 billion, far-sighted individuals could see that this glory wouldn't last long. It might drastically decline within the next three to four years.
Why was this happening? Was it because audiences were tired of Hollywood blockbusters?
The answer was no. The audience for Hollywood movies had not shrunk. However, with the rise of online video sites, the mainstream market consisting of teenagers turned their attention to online streaming and downloads.
The rise of movies on the internet directly reduced the scale of Hollywood's DVD industry by two-thirds.
Hollywood never lacked elites, and many had noticed this trend.
On one hand, producers were looking for ways to reduce costs to ensure each disc could generate more profit. On the other hand, while taking defensive measures, major studios were preparing for the day when movies would completely disappear from silver discs.
In the future, offline distribution of films would increasingly rely on online or on-demand services from cable and satellite TV companies. According to media research companies, this market already reached $1.2 billion, growing nearly 20% last year alone.
Many Hollywood studios were planning to release movies online or on pay-per-view TV simultaneously with the DVD release, instead of waiting a few weeks after the DVD launch.
This would attract young people who wouldn't buy DVDs.
Another brewing change was allowing viewers to download the digital version of a movie immediately after its theatrical release, possibly even before the DVD release. This attempt would involve charging extra for early access to high-definition films.
Stanton Studios, which owned the rights to several films, was also focusing on developing online-related businesses. Murphy even signed some agreements with Netflix.
"I heard someone from Netflix contacted you?"
On set, after wrapping up a scene with James Franco, Murphy took a break. Franco approached and brought up the topic. "They invited you to direct a TV series?"
Murphy shook his head, "I declined."
To be precise, the price Netflix offered was too low. If the price were right, Murphy might have considered collaborating with Netflix on a TV series.
However, Netflix at that time couldn't afford his high fees.
"Actually, I think you could make a TV series about my character's experiences."
After Christmas, Franco saw more details about his character and some related plots for the second installment. "It could be a good supplement to the movie, like what Marvel Studios is doing."
Murphy took a sip of coffee, "Maybe later."
Franco leaned back in his chair, "You're always thinking outside the box."
"What do you mean?" Murphy wasn't interested.
"You have a very dark mindset!" Franco teased, "You always come up with dark stuff."
Murphy shrugged nonchalantly.
"Take this movie, for example. The protagonist could have been a hero," Franco said directly. "But you made him a neurotic, a very dark character."
Murphy countered, "Isn't that good?"
Before Franco could respond, Murphy continued, "Most Hollywood blockbusters portray the protagonist as an idealistic paragon. But my characters don't need that. They should be more human, not saints. I don't need them to follow idealistic rules. This makes their actions more human and realistic, with some political elements mixed in. This is the kind of character I want to see."
Murphy thought for a moment, "Chris Darn makes everything around him chaotic. It's hard to judge right and wrong based on clear moral standards. This isn't very apparent in this movie. The next one, where you're the main character, has a theme that partly reflects realism—no one is above the law, even in a vigilante role."
Franco understood Murphy was talking about the sequel to *City of Chaos*. "I'm the protagonist? Isn't Chris Darn the main character?"
"He's the titular protagonist," Murphy said frankly. "Your magician is the real main character."
"I've read the material you gave me," Franco stroked his chin. "This character's logic is fascinating."
This character required a lot from Franco, so Murphy had let him know some details in advance for preparation. Now, Franco wanted to discuss the character further.
"Everyone has their logic," Murphy pointed at Franco and then himself. "Including you and me. Many people believe their logic is correct and the world operates according to what they believe. If the world doesn't align with their beliefs, they think it's just a facade. The real underlying logic must be the one they hold. To prove it, they just need to 'push' others slightly, and those people will fall into their logic."
Franco pondered, "If a beautiful woman believes all men are scum who are only interested in her body, not love, she will use her body to lure men. She'll find that by pushing men slightly, they become lechers."
Murphy chuckled and continued, "If a rich person believes everyone is greedy and money can buy anything, he'll use his wealth to push people slightly, and they'll fall under his control."
"And the magician?" Franco asked.
"The magician wants to break everyone's bottom line," Murphy said seriously. "He believes everyone is inherently evil."
Murphy spread his hands, "So, in your character's setup, the magician uses people's inner fears as his weapon. He believes everyone loves themselves and their loved ones. If you threaten their lives, they'll abandon their morals and become demons."
Franco nodded slightly, "Once someone breaks their bottom line, there is no bottom line."
"Pretty much."
Checking his watch, Murphy stood up. "I need to film the last scene."
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