Super Zoo
Chapter 582 Profit Sharing Model
Huashi Company is not large in scale, but it has been focusing on the overseas distribution of Chinese-language films for many years, and indeed has business dealings with many theaters in North America.
The best case scenario is that the film is a great success after a small-scale preview in several cities, and then within a week, it will be released in major cities in North America, and then DVDs will be released and available on demand online;
The worst case scenario, which is also the situation encountered by most domestic blockbusters, is that after the preview, there is no opportunity for large-scale release, and some unsold DVDs are released, relying on the support of overseas Chinese to recover hundreds of thousands of US dollars in box office revenue.
"How does your company charge?" Su Ming smiled and said, "I remember you said just now that the agency fee is not low."
It is definitely not low, but it is not high either. Huashi adopts a revenue-sharing model. The specific amount depends on the specific box office in North America. In addition to the necessary taxes and fees, the theaters share 48% of the total box office, and Huashi gets half of the remaining 52%. In total, the producer earns about a quarter of the total box office revenue.
From the perspective of the revenue-sharing ratio, Huashi's income as an intermediary is even more fierce than that of domestic producers.
No wonder Huashi still focuses on the overseas distribution of Chinese films even though the total amount of money earned is not much. The profit is too big. Apart from manpower, there is almost no physical investment. But then again, resources are money. Huashi does not need to be responsible for filming, but it has a series of approval resources for overseas distribution and the commercial network of North American theaters.
It can be seen that the background of Huashi Company is much larger than imagined, and it should be connected to the sky of the domestic film industry.
Su Ming prefers the profit-sharing model. Just like paying taxes, the more the other party takes away, the more you get. Su Ming hopes that Huashi and North American theaters can share billions of dollars... Of course, according to the current status of Chinese films in North America, it is obviously impossible.
After determining the general intention, Su Ming asked Jiaoshou and Lawyer Liang to discuss the specific details of the contract with Cai Liming. Su Ming did not expect this film to make much money. It was a test to officially enter the North American market.
After signing the contract, a series of procedures and approvals are required for distribution in North America, including post-processing of the images and adding subtitles, and even some cities require English dubbing. This is the business of Huashi, and Su Ming continues to be a hands-off boss.
He focused on the previous 150 million box office revenue.
With this 150 million, he can barely take out 180 million from other companies. This money must not be left idle. No matter what he does, it is more cost-effective than putting it in the bank to earn interest.
The acquisition of the zoo and the 4A selection, these two things have been suppressed for a long time, and they are about to burst out. Wang Jianshe’s secretary has called three times to urge the acquisition. It is obvious that after the filming of the movie was a great success and proved its strength, the city has made its attitude clear.
As for the 4A scenic spot, it is not difficult to get it evaluated now. If you are willing to spend some money to build relationships, and then repair the three major Peach Blossom Mountain and the ancient tomb exploration in the back mountain, it is estimated that it can be qualified for 5A.
It is just like this, Su Ming can't rush the selection. Once it is selected as 4A or even 5A, the zoo will become a scenic spot, and the purchase price is completely different from the current concept.
He doesn't have enough money for the zoo alone. For the entire acquisition, the zoo found an appraiser to conduct an internal assessment, and the most conservative figure is more than 200 million.
200 million, still in the case of everything according to the lowest price, and all the entertainment businesses such as live broadcast and riding fish in the early stage are separated and assigned to Taoyuan Entertainment Company.
If the government evaluates, this number will not be low, but will be higher. It is not surprising that the government will offer 300 or 400 million, and there will be many additional conditions.
Although the zoo is located in a remote area and some places look shabby, it is such a big stall after all. The land of the park and the back mountain alone is scary. Although it cannot be used as commercial land for building, it is of little use to the government, but if it is to be purchased, that's another matter.
It's like I can not drive my car, put it in the garage to collect dust until it is scrapped, that's my pleasure. But if someone else wants to buy it, they have to pay according to the market price.
The government has invested decades of hard work in the zoo, and this year the zoo has also turned losses into profits. Acquiring a zoo is essentially the same as acquiring a state-owned enterprise, except that the equipment, technology, and delivery room of the state-owned enterprise have become the zoo's infrastructure, land, and animals.
This is also the main reason why Su Ming temporarily stopped all new projects in the back mountain. If the back mountain is completely developed, the acquisition price will have to rise.
How to invest the 180 million yuan on hand now?
Making a movie is a good choice. Facts have proved that animal performances are still very popular in China.
The question is where the script comes from?
The great success of Horror Zootopia, in addition to animals, has a lot to do with the script. Where can I find a script of the same level, or a story of the same level?
The last horror story was the result of Su Ming's hard work in the past six months. He had a plan to make a movie. He was prepared for a rainy day and would think about the script when he had the chance. He happened to come across a good idea with a flash of inspiration.
Now, if he is asked to come up with another attractive story in a hurry, even if it is not completely impossible, the probability is almost the same as luck, similar to the sudden enlightenment in the book, and he suddenly became enlightened overnight.
And from a psychological point of view, in the first animal movie, the audience's main attention is attracted by the animals. The second movie will have much higher requirements for the script.
Strictly speaking, the story of Horror Zootopia is not very mature, and there are still many areas that can be improved.
The investment for the second part must be far more than the 10 million of Zootopia. If you want to surpass the first part, you must come up with a better script, at least to be equal. Otherwise, if it fails and the reputation is ruined, Su Ming will lose a lot of money.
There is no rush for the movie for the time being. It is better not to shoot it than to use a bad script to ruin the reputation. Even if you want to make a bad movie to cheat money, you have to make at least one or two more good movies. Wait until Taoyuan Films’ reputation is completely established and it becomes a real big-name film company in China. Now we must not ruin the good reputation accumulated by Zootopia.
Regarding the script issue, Su Ming talked to Long Wu and Wang Jin, hoping to use their channels to announce the news in the Hong Kong circle and acquire a good script.
Resources and connections cannot be left idle. In addition to looking for Hong Kong, Su Ming also specially found the professor from Beijing Film Academy who had asked him to sign the letter calling for the establishment of art theaters last time, hoping that the other party could help him dig out good stories and excellent new screenwriters in the capital's circles and various film and television schools. If there are good scripts, Su Ming can definitely pay for them.
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