Inherit For Three Thousand Years

The specific reasons are very complicated. Generally speaking, it is difficult to reconcile the conflict of interests. Zou Xingxing is going to find another distribution company, and he chose Huaying Entertainment first. Jin Haidong simply explained.

The opportunity is indeed a good opportunity, but one can imagine that Zou Xingxing's requirements must be very harsh. What harsh requirements did he put forward? Tell me.

Jin Haidong smiled wryly and said: No wonder Zhou Xingxing broke up with the previous distribution company. His requirements are really too harsh. Regarding our company, he put forward three requirements: first, the distribution agency fee is 5%; second, The box office guarantee is 1.5 billion; third, the film arrangement requires the highest treatment.

He is really buried in Qian's eyes. I'm afraid no one will agree to such a harsh condition. Xiao Yao shook his head and said.

No wonder Jin Haidong came to ask him for instructions. Zou Xingxing's distribution conditions were indeed too harsh, and even Xiao Yao found such conditions unacceptable.

For the domestic box office share, the share ratio between theaters and distributors and producers is fixed, but there is no hard and fast rule on the share ratio between distributors and producers.

For the total box office of all films, 5% of the special funds for the film industry must be paid to the state, followed by a 3.3% special business tax, which is directly deducted and paid by the theater from the total box office. The above two items add up to 5% + 3.3% = 8.3%, which is called non-separable box office. The remaining 1 - 8.3% = 91.7% is the dividable box office, also known as net box office.

Then China Film Digital Film Development (Kyoto) Co., Ltd. (hereinafter referred to as China Film Digital), a wholly state-owned enterprise directly under the State Press and Publication Corporation, a wholly-owned subsidiary of China Film Corporation, will collect 1% of the net box office~ 3% as the issuance agency fee, referred to as median agency fee. The theater chain paid to China Film Digital. But this stage of account sharing only exists in the large block, not in the small block.

Finally, in the remaining box office, that is, the net box office after deducting the median agency fee, movie theaters share 50%, theaters share 7%, and producers and distributors share 43%.

If the movie theater and the theater chain are the same company, such as Swire Cinemas, then it will exclusively enjoy the 57% (ie 50% + 7%). If the producer and distributor were the same company, it would have exclusive access to the 43%.

So how do producers and distributors share accounts?

Generally speaking, the distributor will agree with the producer to charge 5% to 15% as its distribution agency fee.

Specifically, whether to charge 5% or 15%, it depends on which side is stronger.

Zou Xingxing is one of the big directors with the most box office appeal. Of course, the films produced by his company must occupy a strong position, and the distribution fees must not be high, which is understandable.

However, the 5% distribution fee is already the lowest standard in the industry.

If this standard is implemented, then he should not make other cocoa requirements.

But Zou Xingxing's appetite is obviously very big. In addition to the minimum standard for the issuance fee, he also requires an ultra-high guarantee of 1.5 billion, which is unacceptable.

The 5% agency distribution fee should be acceptable to major distribution companies, but with a minimum guarantee of 1.5 billion, no public or private distribution company will agree to his demanding request.

Last year, the box office record of domestic movies ranked first at 2.4 billion, and the second place was only 1.6 billion at the box office. Zou Xingxing actually opened his mouth and demanded a guaranteed 1.5 billion share. For the issuing company, the risk was too great.

If Zou Xingxing's request was agreed to, it would be a hugely risky gamble.

Even if he wins the bet, the profit is only about 70 million. If Zou Xingxing's film suffers from Waterloo, it will be a huge disaster for the distribution company.

In the film market, no director is ever victorious. When everyone has Waterloo, the profit is not high, but the risk is huge, and no one is willing to accept it.

I think Zou Xingxing can still make some concessions, but the concessions will definitely not be too large. How about I talk to him first, and if we still can't reach an agreement, then we can only give up this cooperation. If He has made a lot of concessions, I will bring him over to meet with you, and you will make the final decision, what do you think?

Zou Xingxing gave Jin Haidong a very stubborn and old-fashioned feeling. He felt that the possibility of success in this cooperation was not high, and he could only try his best.

Xiao Yao thought for a while and said, You'd better bring him here directly. I'll meet him and have a chat first, and then we'll talk about cooperation.

Xiao Yao can't make a decision now whether to win the distribution agency rights of Zou Xingxing's movie, but after meeting him, there will naturally be a result.

The movie box office is a special industry, and it was only after Xiao Yao established Swire Cinemas that he really understood this industry.

The box office of a movie sounds high, but for the producer, in fact, the final share is not much.

The split-account box office minus the median agency fee leaves about 90% of the total box office. Producers and distributors can share 43% of this.

If the publisher is particularly strong, then the final share of the producer may be reduced by 15%, which is 28%. And this 28% is not 28% of the total box office, but 28% of the splittable box office.

For small producers, survival is so difficult.

In many cases, this 28% is still not the final figure. If some films are at a competitive disadvantage in a certain schedule, in order to increase the number of film screenings, the producers and distributors will also promise to rebate the theaters, usually 3~ 5 points.

Swire Cinemas under the name of Xiao Yao is already the number one cinema in China. Although Huaying Entertainment has no affiliation with Swire Cinemas, after all, the majority shareholder is Xiao Yao. When Huaying Entertainment and other film companies discuss distribution, they often It will occupy a strong dominant position, and this is the first time he has encountered a producer as strong as Zou Xingxing.

Not long after, Zou Xingxing and Jin Haidong walked into Xiao Yao's office talking and laughing.

Xiao Yao had made a decision the first time he saw Zou Xingxing.

He had to sigh that the functions of the Feng Shui Talisman and the Wealth Judgment Talisman were indeed extremely powerful. In just two days, Wu Jingtian first came to seek investment, and then Zou Xingxing came to discuss the issuance.

Everything is going well for these two people, and their fortune is soaring. Wu Jingtian's fortune will not be realized until next year, but Zou Xingxing's fortune is already in sight.

According to Xiao Yao's observations, he roughly calculated that the final box office of Zou Xingxing's movie is likely to reach more than 3 billion. If he hadn't always had deep confidence in his abilities, he might suspect that this result was wrong.

Last year's highest box office was only 2.4 billion. Zou Xingxing's movie had a box office of more than 3 billion. This increase is too great.

Of course he must seize such a good opportunity.