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Themed entertainment Author of this article: Li Haiqiang 2018-12-07
The Malaysian Fox World theme park developer Genting Group sued Fox and its new owner Disney, causing a stir in the industry。Genting Group claims,Fox deliberately delayed the project progress,The purpose is to force the company to re-sign the agreement,After paying the agreed authorization fee、Fox is promised a certain percentage of the park ticket revenue based on food and souvenir commissions。
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Recently,The developer of Malaysia’s Fox World theme park sued Fox and its new owner Disney, causing a stir in the industry。The developer claims,Disney instructs Fox to terminate its brand licensing agreement,Also demanded up to 17 including punitive fees from the two companies.USD 500 million in compensation。

In a 29-page complaint filed in California District Court,The developer Genting Group said,The reason why the company failed to complete the project as scheduled on several key points,Because not only does Fox not provide industry standards and digital assets for many licensed properties,No security review has been provided for movie clip videos,Causing the company to suffer hundreds of thousands of dollars in losses and delaying the project for several months。

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After Disney and Fox reached an asset acquisition deal,Yunding Group Name,Disney demands that Fox completely terminate the licensing agreement with Genting,Avoid associating their family image brand with casino projects。Fox World is a project of Resorts World Genting, an integrated resort in Malaysia,The resort houses the only legal casino in the country。

Disney calls the accusations “complete nonsense”,Fox also refuted this,Also stated that the company wanted to terminate the agreement,It is because Genting Group has repeatedly failed to complete the project progress within the specified time。The spokesperson of 21st Century Fox Film Company responded to this matter,“The indictment is very clear,Genting has delayed the Fox World project for many years,Long before Disney’s acquisition of Fox。The rumor that Disney has decided to terminate the licensing agreement between the two parties is baseless,We will release all evidence in due course。”

The game between Genting Group and Fox

Before the final judgment comes out,The one-sided statement in Genting Group’s indictment is not enough to be completely convincing。Here you might as well analyze their respective demands from the perspective of both parties,Maybe we can find flaws in their respective rhetoric。

First,Even if Fox is telling the truth,It terminated the agreement simply because Genting failed to complete the required work according to the project schedule。But the problem is,Fox has supported the project for many years,And we know that such projects are often delayed due to various circumstances,A few months before the theme park opens,Is there any other reason for terminating the agreement when it starts to generate income?

A more reasonable explanation for Fox’s last-minute decision is,If Genting uses the Fox brand, the final operating results will be very poor,Fox is afraid that Genting will damage its brand image。But if this is Fox’s concern,Then it is unlikely to handle the relationship with Genting。To know,Universal Studios Singapore operated by Genting Singapore, a subsidiary of Genting Group, is quite successful,A partnership lacking trust is unlikely to last long。

Some industry experts believe,Disney may not have interfered with this transaction,But Fox’s management decided to terminate the agreement with Genting Group before Disney’s acquisition of Fox was completed。Although this is not necessarily the final conclusion,But this possibility does exist。

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Looking from the other side,Assuming Genting is telling the truth,Fox wanted to get a share of the tickets before terminating the agreement。The developer has invested hundreds of millions of dollars in the project,Because the brand licensee wants more ticket sharing,The developer would rather take the risk of not being able to open as scheduled for several months and go to court with the licensor,This approach is somewhat surprising。Let’s talk,In accordance with industry practice,Even if the agreement with Fox is terminated,It is inevitable to encounter this problem when working with other licensors。

What is the truth of the matter?188bet app download Although both parties have just entered the litigation process,It will take some time to wait for the final result,But Rebort Niles, a theme park industry expert and founder of the website "Theme Park Internal Reference", analyzed the game process and possible conclusions of both parties from the perspective of game theory,Perhaps it can provide some reference and insight into the truth of this incident。

Game theory uses mathematics and logical thinking to predict how people make decisions in different environments。In game theory,The person making the choice will assign an expected value to each choice,Then compare expectations among many choices,And make the final decision。

According to game theory,Genting Group has two choices in this game: renegotiate the agreement or hope that Fox will abide by the original agreement。If renegotiated,Genting will definitely give up the claim,But it also reduces the risk of Fox walking away from the project。Currently,If Fox terminates the licensing agreement,Genting Group can sue,But it needs to calculate the expected value and how much compensation can be obtained based on the probability of winning。

Both parties are now entering into litigation procedures。Genting Group, which owns the casino, should understand before resorting to legal action,Once a lawsuit is filed,It will be even harder to get Fox to abide by the original agreement,The two sides only confront each other in court。

In commercial litigation,Prosecutors often believe,The defendant will proceed with caution,Reconciliation with the plaintiff is often the best option,Instead of actually going to court。Although it will take a long time to wait for the court to decide in favor of the defendant,If the amount of compensation involved in the judgment is huge,Defendants are often unwilling to bear the minimum risk of litigation failure,The plaintiff will eventually receive part of the compensation。

This is also Genting Group’s claim 17.$500 million reason – much higher than what has been said so far for Fox World Theme Park 7.USD 500 million investment,Genting’s purpose is to force Fox and Disney to make concessions,Increased likelihood of settling for less than the amount claimed。

But the problem facing Genting Group is,Disney will take a tough stance on this lawsuit。In other words,Disney thinks,It is unlikely that Disney would agree to settle for damages if the litigants knew in advance,Must confront Disney in court,Then they will be less likely to initiate a lawsuit。In the long run,Disney will save a lot of settlement costs。

Disney thinks this makes sense,Because people feel that the chances of obtaining settlement and compensation are low,They may not easily resolve similar issues through prosecution。Also,Disney has deep pockets,Willing to follow normal procedures to fight such a lawsuit,This is also a factor that Genting Group must consider when competing with the two giants。

In summary,For Genting Group,The best option may be to agree to give Fox a certain percentage of ticket sales;If both parties have reached an agreement on this issue before,If both parties have reached an agreement on this issue before。In the face of the current theme park is not open、Fox also raised the dilemma of terminating the agreement,Genting Group hopes to receive part of the claim amount,Introducing other theme brands,And chose to take Disney and Fox to court as a way to achieve this。

Yunding Group’s optional solutions

The indictment filed by Genting lists many attractions to be built at Fox World theme park,Includes Independence Day-Defiance、Night at the Museum-Midnight Mayhem、Aliens Terrorforma、Epic Hummingbird Flyer etc.。Yunding Group Name,The first two rides have passed regulatory review,The remaining attractions will be reviewed within 60 days。

Also,Also disclosed in the indictment,The park includes the theater show Century City Lake Spectacular,And it is proposed to build attractions with the theme of film and television IP such as "Rise of the Planet of the Apes", "Titanic" and "Sons of Anarchy"。However,Data display,Fox has excluded "Sons of Anarchy" from licensed brands,And Rise of the Planet of the Apes、It is unknown whether Titanic-themed attractions will eventually appear in the park。

Big IP in Fox World theme park has Independence Day、Night at the Museum、Ice Age、Rio Adventure、Alien,And the possible approval of War for the Planet of the Apes and Titanic。So,If Genting Group is looking for other partners,The partnership must be able to replace these IPs,But it does not require extensive demolition and reconstruction of existing attractions。If no IP is introduced,Companies need to create native stories and backgrounds that support these rides or shows。So,Finding new IP partners can speed up the opening of new theme parks。

If you exclude Disney and Fox,The best solution for Genting Group is to choose to cooperate with Universal Studios or Warner Bros.。

Given that Universal Studios has cooperated with Genting Sentosa World to build Universal Studios Singapore,Is Universal Studios willing to authorize the construction of another theme park in Malaysia so close to Singapore?Universal Studios Singapore is the smallest Universal Studios theme park in the world,There is no room for expansion around it,Maybe building a second one in Malaysia can attract more tourists。Even so,Is the Universal Studios creative team willing to accept past Fox World attractions,Unknown without requiring a complete rebuild。

Warner Bros. may have a more flexible solution,In particular, its DC comic heroes and Bugs Bunny and other IP images meet the requirements of many experience projects。In addition to James Bond under Sony Pictures、Game of the Brave、Terminator and other well-known film and television IP,A subsidiary of Hotel Transylvania、Smurf、Ghostbusters、Themed attractions such as Shi Po Tian Jing have also appeared in Dubai’s Hollywood Movie Theme Park。

Other partners that can be chosen include Paramount Pictures,But Paramount recently withdrew from the London Paramount Resort project,and has sold all theme park related businesses in the United States。Fox World Project if looking for new partners,So when time requirements are so stringent,Paramount, which owns film and television IP such as Nickelodeon, may not be an ideal choice。

No matter which other film and television company you choose as a partner,It is difficult to guarantee that these film and television companies will not demand higher ticket sharing than Fox。Even if you replace it with a more ideal brand,Rebuild the project in the least amount of time,It will also take several months to complete the construction of the new theme project。Genting will be delayed longer,Missed opportunity to bring more revenue to the company。

Judge based on the current situation,The Fox World theme park, which is about to be completed and opened, will come to a standstill due to the conflict between 188bet app download IP holders and IP developers。In a short time,Genting Group is unlikely to bring Fox back to the negotiating table,It is also impossible to complete the project with other partners after receiving the compensation payment from Disney immediately。

If the theme park originally planned for Fox World is to open within next year,Yunding Group must invest more funds as soon as possible,Completely erase or replace existing themes。From a rational perspective,Yunding Group should consider the long term,Carefully polish this paradise,Maximize its value,Even if the opening of the business is delayed for a few more years, we still have to do it。In business,If we can get a high-quality experience and better tourist satisfaction,Patience and time spent polishing the product will eventually pay off。

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