Woo's $80 Million `Red Cliff' Has Recouped Costs, Producer Says
By Le-Min Lim
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July 3 (Bloomberg) -- Investors in John Woo's blockbuster ``Red Cliff'' have recouped the $80 million spent making Asia's most expensive film, said producer Terence Chang.
The sale of the movie's distribution rights in Asia has covered its costs, Chang said in a phone interview. ``Red Cliff,'' a five-hour story about warring nations in China in 208 A.D. that waged an epic naval battle, is the first movie Woo has directed in Asia since he left Hong Kong for Hollywood two decades ago to make hits like ``Face/Off'' and ``Mission: Impossible II.''
``The scale, reach and appeal of this movie's subject matter is unprecedented in Asia,'' said Joseph Liao, production manager at Taiwan's CMC Entertainment Group, which invested $10 million in the project. The movie's other owners include state-run China Film Group, South Korea's Showbox Entertainment and Japan's Avex Entertainment Corp.
Liao said ``it's safe to assume'' CMC will recover its investment through the sale of screening rights. China Film and Showbox couldn't be reached for comment.
``Red Cliff'' will be edited into a 2 1/2-hour version for screening in Europe later this year. It will be shown in two parts for Asian audiences: the first is scheduled for Asia-wide release on July 10, the second is planned for late January. Producers are in talks with potential U.S. distributors, said Chang.
Loan Recovery
Standard Chartered Plc, which lent money against the film's earnings outside Asia, said the London-based bank is confident of recovering the loan soon, judging by distributor demand for the film in Europe. It won't disclose the financing terms, only that the loan was the biggest of its kind approved by the bank.
``We have had a good experience with this film,'' said Lee Beasley, director of creative industries at Standard Chartered, in an interview. ``It shows prospects for film financing in Asia, even for big-budget movies, are very promising.''
Movies in Asia have average budgets of $10 million or less, and are usually funded by studios and wealthy individuals. The opening of the mainland Chinese market has given Asian producers another incentive to boost spending and encouraged banks to finance projects. Hong Kong and India are among the biggest movie- production hubs outside the U.S.
India produces more than 1,000 films a year; Hong Kong made 50 movies in 2007, while Hollywood made about 300 pictures last year, industry figures showed.
For the film, Woo hired Hong Kong actor Tony Leung, winner of the best-actor award at the 2000 Cannes Film Festival; production designer Tim Yip, who worked on Academy Award winner ``Crouching Tiger, Hidden Dragon;'' and extras from the People's Liberation Army for the battle scene. Filming began in April 2007 and was plagued by problems from the start, culminating in the death of a Chinese stuntman on the set last month.
The death ``was the biggest regret of my career,'' said Woo at a press conference in Hong Kong on June 30. Woo, 62, said ``Red Cliff'' is his most important work to date and will test the appeal of a foreign-language film on a Chinese story outside Asia.
``To Asia, this is a historical epic,'' said Chang. ``To audiences outside Asia, they expect a big John Woo action film.''
Chang said the film will ``appeal to both groups.''