Cherreads

Chapter 523 - Chapter 523: The Advances of Blockbuster

In recent years, from "The Sixth Sense" to "Cape Fear," Robert De Niro has been experiencing a career peak. Al Pacino's popularity saw a swift resurgence with last year's "Scent of a Woman." Given that both are among the four veteran Hollywood male stars, getting them together for a project hasn't been easy.

Daenerys Entertainment had initially approached De Niro, but he didn't immediately agree. 

As a result, Simon had to personally step in. 

The two of them chatted briefly at a party, where Simon gave a detailed analysis of "Heat," promising it would become a classic crime thriller of the 90s. This assurance finally convinced De Niro to come on board.

Having already worked with Al Pacino on "Scent of a Woman," he had agreed in advance to participate in "Heat."

With De Niro secured, the project now faced no significant obstacles.

Many at the party had been closely observing Simon's actions. When they saw him finally finish his conversation with De Niro, they seized the opportunity to greet him.

For many second or third-tier, or even lesser-known filmmakers, getting a chance to meet Simon Westeros was a rare opportunity. Making a lasting impression on him could potentially save them years of struggling in Hollywood.

Over the years, not only has Daenerys Entertainment shone under Westeros's spotlight, but it has also been tireless in cultivating new and upcoming filmmakers.

Simon was patient in his interactions with the crowd, engaging in conversations with genuine interest. However, he made no immediate promises.

It wasn't until after 10 PM that Simon and Janet left the party, returning to their residence nestled in the southeastern hills of the small town.

The next morning, they slept in until after 8 AM. 

Upon waking, they stayed in bed. January is the coldest month in Park City, and though there hadn't been recent snowfall, the weather was increasingly dry and cold, with outdoor temperatures below minus ten degrees Celsius.

In their cozy cabin on a hilltop, it was warm as spring inside.

With no schedule for the day, Janet remained clinging to Simon like an octopus, snuggling and eventually leading to a spontaneous moment of intimacy.

By 10 AM, after a lazy session of lounging and a hot bath together, they finally headed downstairs, with the time already past 11 AM.

Accompanying them were four ladies, including ABD and Arya.

Lunch was ready when they came downstairs, and they headed directly to the dining room.

Despite the wooden structure of the house, the design was very modern. The dining room faced south with a full wall of sealed floor-to-ceiling glass, primarily for warmth. The midday sunlight pouring in gave a comfortable and cozy feeling, even if it didn't seem to add much warmth by itself.

Seated next to Simon at the dining table, Janet still had a faint blush on her face. After eating for a bit, she nudged Simon and asked, "What should we do this afternoon?"

Simon smiled and replied, "Nothing, just bask in the sun."

Janet's eyes twinkled, and she nodded with a curved smile, "Mm-hmm."

Since they were there for the film festival, watching movies would have been the best activity. However, Simon's presence at any film screening would likely cause quite a stir. Additionally, there were no films he was particularly interested in, so they decided to just stay home.

Skiing was also out of the question, mainly because Janet couldn't ski.

Despite it being midday, the outdoor temperature in Park City was still below freezing, making it impossible to sunbathe outside.

After lunch, they moved to a bright living room with floor-to-ceiling windows, made coffee, prepared some fruit, and cuddled on the couch to watch a black-and-white movie, "Casablanca."

This was a film delivered by the local Blockbuster store in Park City.

Although the cabin had a private screening room, the couple preferred the warmth and brightness of the living room for watching TV.

Simon had previously devised a plan to distribute classic films through Blockbuster, mimicking Disney's re-release strategy for animated films.

Blockbuster had been doing this successfully. The current highlight was "Casablanca."

Though originally a Warner Brothers production, the success of the strategy meant Blockbuster didn't limit itself to just MGM films.

Remembering a joke Simon had once made during a late-night call about the two male leads in "Casablanca," Janet found her thoughts wandering during the movie. She occasionally chuckled and playfully complained about how Simon had ruined her perception of a classic film.

Simon, who was simply joking back then, still enjoyed the film.

Compared to today's films, the black-and-white movies from decades ago lacked complex techniques, vibrant colors, and intricate plots. Yet, this didn't prevent "Casablanca" from becoming a timeless classic that people still rave about half a century later.

This is perhaps the enduring charm of cinema.

As Rick and Captain Renault discussed their plans to "start a beautiful friendship" on the big screen, Janet's eyes flickered. She couldn't help but laugh softly again, turning her head to playfully hit Simon's shoulder.

Simon picked a strawberry from the fruit bowl Janet was holding and laughed, "I was just joking earlier. They're actually just very pure friends."

Janet opened her small mouth wide towards Simon.

Simon had no choice but to feed her the strawberry he had picked up, but she bit his finger playfully along with it.

After a moment of playful banter, Janet fed a piece of strawberry to Simon and said, "Speaking of spies, we now have a team of about a hundred people. Should we do something naughty?"

This all started in the fall of the previous year.

Discovering that there were always forces watching them, Simon began to build a private intelligence team for the Westeros family.

The upheaval of the Eastern Bloc and the subsequent collapse of the Soviet Union changed many things. The vast intelligence networks built by Eastern powers disintegrated during this turmoil, providing an opportunity for the Westeros system to recruit relevant talent.

However, due to Simon's busy schedule, Janet was the one handling this. She would occasionally mention to Simon about recruiting a new team, uncovering interesting facts, or identifying those who were "interested" in the Westeros family.

Over time, Simon had gradually stopped paying too much attention to it.

But now, suddenly, Janet mentioned they had over a hundred people.

Turning to look at her, Simon asked, "Specifically, how many?"

Janet replied, "136 people."

Hearing the number, Simon couldn't help but ask, "You didn't just recruit anyone, did you?"

Janet blinked and shook her head, "Of course not. They're all top-notch. For example, the first team we uncovered from the KGB. They deliberately exposed a flaw, leading us to discover them. Behind them was a very capable couple who foresaw the Soviet Union's collapse and started looking for a way out early on."

Simon vaguely remembered Janet mentioning a family before.

The couple were teachers at a not-so-well-known university in London, and they had a daughter studying at USC.

At the time, Simon was deeply involved in acquiring MCA and Bell Atlantic and didn't have much time to focus on it. Janet also rarely mentioned it afterward.

But over a hundred people...

Although they could afford it, and there were plenty of uses for such a team, having so many spies could lead to trouble if not managed carefully.

Janet, observing Simon's expression, smiled and said, "Don't worry. Only I know the specifics of these people. They're organized into dispersed teams, with no group larger than eight. Even if some are discovered, they couldn't lead back to the entire network."

Simon didn't relax. He continued to ask, "Could it implicate us?"

Janet thought for a moment, then said, "Some might, like the ones we recruited from Australia. But they won't do anything too excessive. Even if discovered, there's no direct evidence pointing to us. For others, especially those with sensitive identities, I've always maintained only indirect contact with them."

Simon had another concern, "How do you ensure their loyalty?"

Janet shrugged, "I do my best, but it's impossible to be 100% sure. People's minds are the most complex things in the world. Apart from the person themselves, no one can guarantee anything with complete certainty."

Simon nodded slightly, then remembered another issue, "I recall that for the two teams hired through Martin Denham, we offered very generous compensation, with a $5 million retirement bonus. Are we offering the same to these hundred-plus people?"

When Simon first recruited 11 people through Martin Denham, they offered almost life-buyout compensation: a 20-year term, $200,000 annual salary, $1 million signing bonus, a $5 million retirement bonus, and a similarly generous pension.

Both parties knew it was practically buying their lives.

Over the past year or so, Simon had not encountered any eavesdropping or similar problems. Many small moves against Simon and Janet were preemptively thwarted, proving the value of Martin Denham's two teams.

Janet shook her head, "Martin's team is our elite force. Others mostly get paid for the work they do. We're not just throwing money around."

Even if they provided Martin Denham's team's level of compensation to all the hundred-plus people, Simon could afford it now and in the future. However, it was a matter of whether it was worth it.

Simon had reached a point where he had more money than he could spend, and this would only increase in the future. Still, he didn't like being treated as a cash cow.

Hearing Janet's explanation, Simon felt reassured, "For a network, as long as it's effective, it's best to minimize unnecessary use and avoid

 futile efforts."

Janet understood Simon's point and nodded obediently, then leaned closer with a smile, "But I do want to do something mischievous."

Simon pinched her soft cheek, "If you really want to be mischievous, let's go for it."

Feeling the indulgence in Simon's voice, Janet laughed softly, rubbing her cheek against his palm, and leaned even closer, "I have some other naughty ideas too."

The entire weekend flew by as they stayed like homebodies in their cozy mountain cabin in Park City.

The new week arrived, and Simon returned to Los Angeles while Janet flew to New York as usual.

Not only was she managing Cersei Capital, but Janet also handled much of the work at Westeros Company and Verizon Communications, as well as overseeing the affairs of the Westeros family. Her responsibilities were no less than Simon's.

However, while Simon had to engage in much hands-on management in Hollywood and Silicon Valley, Janet was adept at high-level management, which actually made her workload less than Simon's in practice.

---

Malibu, Daenerys Studios.

It was January 19th, Tuesday.

At lunchtime, Simon was dining with Nancy Brill in the second-floor loft dining area of the studio.

They had just discussed a new development plan for Blockbuster, which Nancy Brill was in charge of, focusing on Blockbuster's direct entry into film production and distribution.

The financial data for Blockbuster in 1992 was still under audit, but preliminary figures were already available.

In 1992, Blockbuster's total revenue across four quarters was approximately $3.36 billion.

The core video rental business accounted for $2.51 billion of this, including $130 million from the online platform. Although this proportion was still low, the growth in this area exceeded industry expectations.

Additionally, sales of movie-related merchandise in stores generated $730 million, with 69% of this revenue coming from Daenerys Entertainment-related products, amounting to $510 million. This was the largest contribution among all retail channels, including Walmart and Toys "R" Us.

Finally, there was about $120 million from in-store advertising and other sources.

In managing Blockbuster over the past few years, Nancy Brill had continuously implemented various adjustments to keep the rapidly expanding video rental chain in a healthy "marathon runner" state rather than letting it become a bloated "obese patient" chasing size for its own sake.

Just last year, they eliminated late fees, which had long been a source of customer complaints. They also cut peripheral services like game cartridge rentals and further streamlined the non-video retail business, firmly establishing video rentals and merchandise sales as the two core pillars.

In terms of store expansion, Blockbuster maintained a conservative approach.

This management strategy ensured Blockbuster's high operational efficiency but also significantly limited its revenue growth.

However, due to the streamlining of extraneous services and improved efficiency, Blockbuster's profit margins increased significantly. Even with continued expansion of the online platform, Blockbuster's annual net profit margin was expected to be around 15%, with a projected net profit of approximately $500 million for 1992.

This surpasses the net profit scale of some major Hollywood studios.

With this information coming out, Blockbuster's stock price had been steadily rising, even though the annual financial report wouldn't be officially released until next month.

With a large amount of cash on hand, expansion was inevitable.

This led to the plan for Blockbuster to directly engage in film production and distribution, supplementing Daenerys Entertainment's broader expansion in Hollywood.

_________________________

[Check out my Patreon for +200 additional chapters in all my fanfics! $5 for all!!] [www.p@treon.com/INNIT]

More Chapters