Chapter 178: Chapter 178: Chairman of the Actors Guild
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ABC's noon news not only covered the usual domestic and international topics but also reported a rather intriguing piece of news. Estée Lauder's cosmetics store had been overwhelmed with customers, creating a scene of chaos. Yesterday, an overwhelming number of people placed orders through the "TV shopping" segment. Today, they flocked to the store to pick up their purchases, leaving the clerks frantically trying to keep up.
The TV station captured a brief 30-second clip showing women eagerly holding their order numbers, waiting at the counter to claim their favorite perfumes, lipsticks, and makeup kits at discounted prices. Their faces lit up with satisfaction after completing their purchases.
"Did you get anything?" the male news anchor asked his female co-anchor.
With a soft laugh, she replied, "Of course, I did! How could I pass up such a great deal?"
"Do you have any insider information about what will be on sale this afternoon?"
"No, I don't, but I'm eagerly looking forward to it."
Initially, some viewers were skeptical about TV shopping, but seeing others successfully purchase quality products at lower prices swayed many. Now, a growing number of people were eagerly awaiting the afternoon sale, ready to try out TV shopping for themselves.
As the noon news concluded, the TV shopping segment kicked off.
"Dear viewers, today's 'TV Shopping' is starting now! Our rules remain the same—you can place your order by calling in. However, we have a bit of unfortunate news today: due to transportation issues, this product is only available for purchase in Los Angeles and San Francisco."
The host continued, "Today, we've brought you something special. Please take a look…" He unveiled a small, stylish motorcycle under a velvet cover.
"This is the 'Little Hornet,' available in red, yellow, and green. Just let the operator know your preferred color."
The female co-host chimed in, "These types of small motorcycles typically sell for around $120 to $150. I wonder how much of a discount we're offering today?"
Smiling at the camera, the male host announced, "Today's price is up to the customer."
"Up to the customer? How does that work?" she asked, surprised.
"The original price of this bike was $118. Our TV shopping offer brings it down to $98—a $20 discount."
"But that's not all. Here's why we say the customer sets the price: if we sell over 500 units today, the price drops to $88 per bike."
"And if we sell over 1,000 units, the price drops to $78."
"So the more you sell, the bigger the discount?" the female host inquired.
The male host nodded, "That's correct. But if we manage to sell 2,000 bikes, the price drops to $68."
"And what if we sell 3,000 units?" she asked playfully.
"In that case, we'll offer a shocking price of $58 per bike."
"Wow, that's almost half the price! Isn't that below cost?" she exclaimed.
The male host, turning back to the camera, declared, "Orders start now. Just make a call, and you can place your order. Start now!"
As the host's voice boomed, the camera shifted to the call center, where operators were quickly inundated with calls.
Ten minutes later, the director reported that 80 people had placed orders. In 20 minutes, 200 orders were placed, and after half an hour, the number reached 300. An hour later, they hit the 500 mark.
"Alright, the price has now dropped to $88," the host announced, adding, "Let's see if we can reach $78 today."
By the second hour, they had sold 1,000 bikes, prompting cheers from the three hosts as they announced the new price of $78 per bike.
Three hours in, the count hit 2,000. Four hours later, they were at 2,500, but the momentum started to slow.
A female anchor suggested, "What if someone orders two bikes or places an order without intending to buy? When the total reaches 3,000, the price will still drop to $58."
The male host, realizing the potential impact of her words, quickly covered her mouth. "Get her off the set! She's a traitor to the station!" the recording room erupted in mock outrage.
But the audience had caught on, and calls surged again. Soon, the total order count reached 3,000.
The male host, looking defeated, confessed, "I didn't expect we'd hit 3,000 units and bring the price down to $58. That's the cost price—we might even lose money on shipping. I set the price too low. What am I going to do? Will the boss fire me?"
The viewers, seeing his frustration, felt a thrill of victory. They had successfully gamed the system, beating the capitalists at their own game.
When the TV shopping segment ended, the host announced that 3,656 orders had been placed, securing the $58 price for everyone.
Customers who bought the motorcycles felt triumphant, believing they had outsmarted the system and taken advantage of the low prices.
Later, Hardy was informed that the actual number of orders was around 2,500. At $58 per unit, many believed the price was indeed the cost price. What they didn't know was that Hardy had purchased the motorcycles at $38 each, netting a profit of $20 per unit. Today's profit totaled $50,000.
Soon after, Andy approached Hardy with a report on the stock market.
"Boss, today's 'Playboy' magazine stock price soared from $24.5 to $31.2. Your assets have increased significantly."
"I had a feeling," Hardy said, smiling.
"The construction and consumer goods stocks I mentioned on the show also saw a considerable rise today, generally up by more than 3%."
"But the military and basic necessity stocks, which I didn't specify by name, have dropped because of that."
Hardy nodded. "It seems our predictions were correct. This financial stock analysis program is having a significant impact on the market. Keep monitoring it, Andy."
"I'll take care of it, boss," Andy replied before leaving.
As Andy departed, Hardy received a call from MGM boss Meyer.
"Hardy, the attendance for *The Killer Is Not So Cold* surged today. Yesterday, the attendance rate was only 40%, but today it soared to 80%. That interview show last night had an incredible effect on driving people to the theaters," Meyer said.
"I had a feeling, but I didn't expect it to be this effective," Hardy replied with a smile.
"Hardy, I watched the entire ABC lineup last night, and I must say, it was outstanding. I've heard that NBC and CBS are feeling the pressure. They held emergency meetings overnight to figure out how to counter your success. It looks like they're going to join forces against you," Meyer added.
"That's to be expected. Competition drives progress. But if they think they can catch up to me, they're in for a surprise. I've still got plenty of tricks up my sleeve," Hardy said confidently.
Meyer paused before making an offer. "Hardy, I want to buy a stake in ABC. How about 30% for $10 million? I'll ensure you maintain absolute control of the station."
Hardy chuckled. "Mr. Meyer, you should know that before you, both Paramount and Warner Bros. contacted me with offers to buy a stake in ABC."
Though Hardy didn't disclose the specifics of those offers, the implication was clear enough to put pressure on Meyer.
MGM and the other studios were long-time competitors, and Meyer couldn't afford to let another company outmaneuver him. Hardy's HD Pictures had made significant strides, but MGM had always maintained its dominance in the industry. However, with ABC now under Hardy's control, his influence in the entertainment world had skyrocketed, putting him on par with MGM. If Hardy were to align with another studio, it would pose a serious threat to Meyer's position.
"So, what do you propose?" Meyer asked cautiously.
"I'm open to MGM acquiring a stake in ABC, but there are a few conditions," Hardy replied.
"What are they?"
"First, 30% is too much. I can only sell 20%. As for the price, $22 million is what I'm asking. You know, Mr. Meyer, the other two networks aren't profitable, but ABC is on track to generate over $10 million in annual profit."
"Second, since we'll be partners, I'd like MGM to open up its film library to ABC. You can keep your top-grossing titles, but the rest can air on ABC, including *Tom and Jerry*. Of course, ABC will pay MGM for the rights."
"Third, MGM is known for its strong production capabilities. I'd like MGM to assist ABC in producing content, including TV series, variety shows, and cartoons."
"Fourth, I've heard that you hold an 11% stake in the *Los Angeles Times*. I'd like to acquire those shares."
Hardy had his sights set on building a media empire, and newspapers were a crucial piece of that puzzle. The *Los Angeles Times* was one of the top three newspapers in the U.S., with influence second only to the *New York Times* and the *Washington Post*. By acquiring a stake, Hardy could leverage his position to forge an alliance between the *Times* and ABC, ensuring a steady flow of news content for his network.
"Fifth, I've heard that Batasa Kuko, the chairman of the Screen Actors Guild, is up for re-election in November. I want to run for the position and would appreciate your support."
Meyer listened to
Hardy's demands and took a deep breath. "Hardy, you're asking for a lot."
Meyer was genuinely upset. The Screen Actors Guild was a powerful organization, representing film and television actors, journalists, radio personalities, recording artists, singers, voice actors, and other media professionals. The chairman wielded considerable influence. Batasa Kuko, the current chairman, was someone Meyer had groomed for the role, making him a loyal ally. Hardy's desire to take over as chairman was a direct challenge to Meyer's power.
It felt to Meyer like a young lion challenging the old king of the pride.
If anyone else had made these demands, Meyer would have flatly refused and retaliated with full force. Even major studios like Universal and Warner Bros. would have felt his wrath and been forced to back down.
But Hardy was different.
Meyer found himself feeling something he hadn't in a long time—fear.
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