The specific reasons are very complicated, and in general, because it is difficult to reconcile the conflict of interests, Zou Xingxing is ready to find a new distribution company, and first chooses our Huaying Entertainment. Jin Haidong explained simply.

"The opportunity is indeed a good opportunity, but it is conceivable that Zou Xingxing's requirements must be very harsh, what harsh requirements did he put forward? ”

Jin Haidong smiled bitterly: "No wonder Zhou Xingxing broke up with the previous distribution company, his requirements are too harsh." For our company, he put forward three requirements: first, the distribution agency fee is 5%, second, the box office is guaranteed to be 1.5 billion, and third, the film scheduling requires the highest treatment. ”

"He's really buried in the eyes of money, and I'm afraid no one will agree to such harsh conditions. Xiao Yao shook his head and said.

No wonder Jin Haidong wanted to come over to ask him, Zou Xingxing's issuance conditions were indeed too harsh, and even Xiao Yao found such conditions unacceptable.

The domestic box office share, the sharing ratio between the theater chain and the distribution producer is fixed, but there is no hard and fast rule on the sharing ratio between the distributor and the producer.

The total box office of all films must pay 5% of the special fund for the film industry to the state, followed by a special business tax of 3.3%, which will be directly deducted and paid by the theater from the total box office. The above two items, totaling 5% + 3.3% = 8.3%, are called "indivisible box office". The remaining 1-8.3% = 91.7% is the "divisible box office", also known as the "net box office".

Then China Film Digital Film Development (Kyoto) Co., Ltd. (hereinafter referred to as China Film Digital), a wholly-owned subsidiary of China Film Co., Ltd., a wholly-owned state-owned enterprise directly under the National Press and Publication, will levy 1%~3% of the net box office as a distribution agency fee, referred to as "China Digital Agency Fee". Paid by the cinema chain to "China Film Digital". However, this stage of account sharing only exists in large films, not small films.

Finally, in the remaining box office, that is, the net box office after deducting the "median agency fee", the cinema will share 50%, the theater chain will share 7%, and the producer and distributor will share 43% in total.

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

So how do producers and distributors split their accounts?

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

Whether to charge 5% or 15% depends on which side is stronger.

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

But the 5% issuance fee is already the minimum standard in the industry, and if this standard is enforced, then he should not make any other cocoa requests.

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

The 5% agency issuance fee should be acceptable to the major distribution companies, but the guarantee of 1.5 billion yuan will definitely not be accepted by any public or private issuer to agree to his harsh requirements.

Last year's box office record of domestic films, the first place was 2.4 billion, and the second place was only 1.6 billion box office. Zou Xingxing opened his mouth and asked for a guaranteed share of 1.5 billion, which is too risky for the issuing company.

If Zou Xingxing's request is agreed, it will be a risky gamble.

Even if the bet wins, it is only about 70 million in revenue, and if Zou Xingxing's film encounters Waterloo, it will be a huge disaster for the distribution company.

In the film market, no director is a winning general, and when everyone has Waterloo, the return is not high, but the risk is extremely risky, and no one wants to accept it.

"I think Zou Xingxing should still be able to make concessions, but the concession will definitely not be too large, or I will talk to him first, if I still can't reach an agreement, then I can only give up this cooperation. If he gives in by a large margin, I will bring him over to meet you again, 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 this cooperation was unlikely to succeed, and he could only try it as much as possible.

Xiao Yao thought for a while and said, "You better bring him over directly, I'll meet him, talk about it first, and then talk about cooperation." ”

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

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

The box office of a movie sounds high, but for the producer, there is not much that can actually be obtained in the end.

The box office can be divided and subtracted from the median agency fee, which is about 90% of the total box office. The producer and distributor will get 43% of the total.

If the publisher is particularly strong, then the producer may end up with a share minus 15%, or 28%. And this 28% is not 28% of the total box office, but 28% of the divisible box office.

For small producers, survival is so difficult.

In many cases, this 28% is still not the final account sharing figure, if some films are at a competitive disadvantage in a certain schedule, in order to increase the number of film screenings, the producer and distributor also have to promise to give the theater rebate, generally 3~5 points.

Xiao Yao's Swire Cinema Line is already the first cinema chain in China, although China Film Entertainment has no affiliation with Swire Cinemas, but after all, the major shareholders are Xiao Yao, and China Film Entertainment and other film companies often occupy a strong dominant position when they talk about distribution, and it is the first time he has encountered such a strong producer as Zou Xingxing.

After a short time, Zou Xingxing and Jin Haidong walked into Xiao Yao's office with a smile.

The first time Xiao Yao saw Zou Xingxing, he had already made a decision.

He had to sigh that the role of Feng Shui talisman and wealth gathering talisman was really extremely powerful, and in just two days, first Wu Jingtian took the initiative to come to the door to seek investment, and then Zou Xingxing came to negotiate the issuance.

These two people are all going well, and their fortune is soaring, and Wu Xingtian's fortune will not be realized until next year, but Zou Xingxing's fortune is already close at hand.

According to what he observed, Xiao Yao roughly calculated that Zou Xingxing's movie is likely to reach more than 3 billion at the final box office. If he hadn't always had a deep confidence in his abilities, he would have suspected that this result was wrong.

Last year's highest box office was only 2.4 billion, but Zou Xingxing's movie had a box office of more than 3 billion, which is too big.

Such a good opportunity, of course, he has to seize it tightly.