At first, I just wanted to make money

Chapter 868

There is a saying: China Film's investment in Hollywood is just a company's normal business strategy... Before China Film... there were many mainland cultural companies involved in the Hollywood production industry...

The same goes for China Film Group Corporation... It's just that China Film Group Corporation is a national brand, so there's nothing to make a fuss about!

The problem is that China Film Group enjoys the right to import films. Coincidentally, the growth of domestic box office revenue in North America has slowed down, and Hollywood is actively studying how to enter the Chinese market.

If you cooperate with China Film Group, will you have a distribution advantage?

That's it, Disney's "Avengers: Age of Ultron" won't be released in mainland China until May 2, which is the same as the film's May 5 release in almost every other country, including the U.S. It's almost two weeks after the premiere.

Why two weeks late?

Because of "Fast and Furious 7" - China Film participated in the investment...

But... China Film is a national brand after all, so what's the matter with you investing in foreign films?

What's the matter, look up to the comprador?

It is estimated that Han Shanping was also worried about such rumors, so he asked Shen Xudong.

Xudong asked back: "Why invest in Hollywood? China Film Group only relies on the right to import films, and it's less than one billion yuan a year?"

"Isn't this busy listing..."

"Oh…"

That's understandable!
With the help of investing in Hollywood blockbusters.

"We are cooperating with Legend and preparing to invest in several movies..."

"Actually Legendary is just a film investment foundation..."

Shen Xudong briefly introduced the birth process of Legendary Entertainment.

It is an evolution of an investment platter!

In fact, in theory, film companies can of course rely entirely on their own funds to shoot movies, and since the 90s, the huge profits of secondary recycling channels are enough to support film companies to shoot super blockbusters with a scale of [-] million yuan.

But without exception, all film companies are still looking for investment.

There are many reasons, such as sharing risks, increasing the number of production starts, crying poor so that stars and agents can reduce their pay, etc., but the main secret is that the cooperation between the film company and external investors is based on some kind of unequal treaty...

"Inequality?"

"Yes," Shen Xudong nodded, "For example, for a $1.5 million production, you pay 50% for the company yourself, and 50% for external funds after the completion, but the film company's final share of profits is much higher than that of external investors."

"A lot more?"

"You see, from the box office return of a movie, 10-15% of the total box office is first deducted from the distribution fee and other marketing expenses, and then divided equally with external investors. This certainly seems fair, but it is For film companies, collecting distribution fees has turned a risky business into a relatively guaranteed income. Coupled with various accounting strategies, in short, the introduction of external investors is a good thing for Hollywood film companies to take advantage of. thing."

"Like a premium investment for your company?"

Shen Xudong admitted: "Yes!"

……

Tianmei Media attracts external investment every year. Of course, external investment needs to enter at a premium of 20%...

A movie costs 5000 million, the company pays 5000 million, and external funds [-] million, and then half of the proceeds are given to you?
Beautiful to think!

Movie investment is a small circle game, not to say that you can play it if you have money.

The 20% premium is still somewhat related to the investor.

In later generations, anyone with a bit of good looks will pay a premium for their investment share.

Especially scarce good projects and big projects will be more favored, and it is easier to overflow good prices!
For example, "Human World Comedy" has a premium of 3 million.

It's really rare for a comedy to have such a premium price!
In the final analysis, it is because of the uneven distribution of resources for mainland movies.

In most cases, the premium is about 50%, and the shooting cost of a movie is 1 million.The company sold 1.5 million to the outside world at a cost of 5000 million...

Film and television is an industry that is extremely dependent on resources. With resources, you have the right to speak. From the perspective of a large company, you spend a lot of time and energy on developing good projects, and use your relationships to get good resources. The results of your own efforts are obvious. It cannot be used by others in vain, so there is a premium.

Hot money is pouring into the film industry, especially non-industry investors mainly based on financial institutions and film and television funds. Their investment project standards, or standards with high premium conditions, are still stuck on big IP, big actors, and big directors. It is difficult to have a professional judgment on the actual project content. In the eyes of these investors, projects are only classified into big and small, not good or bad. Therefore, this type of investors is the easiest to accept the high premium of bad projects.

The premium is caused by too few good projects and too many people who want to invest in good projects. This imbalance can only be solved with money, and no one will give up the opportunity to make money to others.

The film premium is undoubtedly an additional income for the master controller, and it also allows part of the income to be recovered in advance.

At the same time, it is also a way to transfer risks and protect one's own interests, avoiding risks in the early project operation.

……

After listening to Shen Xudong's investigation about Legendary Pictures, Han Shanping probably understood: "You mean this is a middleman?"

"Yes, the middleman!"

"Then I read the propaganda, "Batman" and "Three Hundred Warriors of Sparta" are them..."

"The copyright belongs to Warner!" After a pause, Shen Xudong continued: "And Legendary Pictures owes hundreds of millions of dollars... If you really want to invest, why don't you directly contact the studio?"

"...What you said is simple, directly contact the studio, we can't rush to seek cooperation, the reason why we invested in Legendary Films is also because the boss of Legendary Films has personally visited several times..."

"Thomas Tull?"

"Yes, it's him!"

Shen Xudong: "...he is very famous in Hollywood. He used to run an investment foundation, but he was able to attract investment...but he couldn't get money in the US investment market. Why do you think this is?"

Han Shanping froze for a moment: "...why?"

"Because Legendary Pictures has a bad reputation..."

After talking about this, Shen Xudong got up and packed his fishing gear—it was another afternoon for the Air Force!

It doesn't matter, anyway, he is not a fisherman, the air force is the air force.

"Han Dong, let's go to the restaurant and chat while eating."

Han Shanping also packed up his fishing gear and followed...

On the way, he suddenly remembered something: "How is the overseas copyright of "Painted Skin 2" selling?"

"It's okay, 1300 million US dollars, mainly in Southeast Asia and South America..."

"Southeast Asia...I don't think you have cooperated with South Korea in recent years?"

"There is no way. Starting in 09, the Korean government restricted the import of Chinese-language films... We can't make any money anymore. Who will cooperate with him?"

"... Now people are saying that Korean movies are developing very well, what do you think?"

Shen Xudong smiled: "What kind of industries can a semi-colony develop? The semiconductor industry in South Korea was restricted by the United States and then transferred to South Korea...The same is true for Korean movies. Once they become famous, the United States will harvest them. !"

"It's not possible..."

"...very good!"

　something...

　　Alas, I am so speechless, I really want to slap myself twice!
　　
　
(End of this chapter)