686 1.5 billion guaranteed
If you can win the distribution agent of Zou Xingxing's movie, not only will the direct income be amazing, but the indirect income is what Xiao Yao values the most.
The successful release of such a record-breaking high-grossing film at the box office is very important for the external image of China Film Entertainment, and under this good news, the company's stock price will inevitably rise.
After the routine greetings, Xiao Yao went straight to the point, "Director Zou, we at Huaying Entertainment are very willing to cooperate with a big director like you, but your distribution conditions are too harsh, I think it will be difficult for any distribution company to accept your request." ”
"Mr. Xiao, I'm a straightforward person, and I don't want to hide anything, so I can say whatever I want. I take your Huaying Entertainment as the first alternative partner, there is only one reason, that is, Swire Cinemas is an industry under the name of Mr. Xiao, otherwise, if I only start from the interests, I have a better choice.
Because of this, I have even lowered the terms of cooperation, and if the negotiation with your company fails this time, and I finally choose to cooperate with other distribution companies, I will definitely increase the distribution conditions. ”
Even in front of Xiao Yao, Zou Xingxing still spoke very hard.
"It's hard for me to imagine that if Director Zou further raises the issuance conditions, which issuing company will accept it. Xiao Yao said.
"Then I'll tell you the truth, Mr. Lei of Dadi Company had already approached me once the day before yesterday, and he was willing to give a guaranteed issuance condition of 1.8 billion. If it weren't for the unpleasant first two cooperations, I would have agreed to the conditions offered by Mr. Lei at that time. Zou Xingxing said unhurriedly.
Xiao Yao could see that Zou Xingxing should not be deliberately exaggerated, which made people very depressed.
If he hadn't seen Zou Xingxing with his own eyes, Xiao Yao would definitely not have agreed to his 1.5 billion guarantee request. With such a huge risk, he would rather give up this cooperation.
Mr. Lei of Dadi Company does not have the ability of an unpredictable prophet like him, but he is willing to give a guaranteed issuance condition of 1.8 billion, such a big gamble, it is really speechless.
"Mr. Lei's courage is amazing, but I think that under this premise, Mr. Lei's demands for other aspects will definitely be very harsh. The guarantee of 1.5 billion is too risky, if Director Zou must insist on this condition, it is not impossible to consider, but such a harsh condition, correspondingly, you must make concessions in other aspects. ”
Since Dadi Company is willing to give 1.8 billion guaranteed issuance conditions, he can't ignore Zou Xingxing's 1.5 billion guaranteed issuance requirements.
The concept of guaranteed issuance has become popular in the last year or two.
The so-called guaranteed distribution is that the distributor and the producer set a mutually acceptable box office figure in the contract, even if the box office does not reach this number after the release of the film, the distributor must also divide the account to the producer according to this number, if the actual box office is higher than the guaranteed number, the distributor will share more than usual in accordance with the contract.
To put it simply, the producer made a steady profit and transferred the box office pressure to the distributor before the release, and although the distributor took the pressure, it also had the opportunity to enjoy additional box office revenue.
For the distributor, the guaranteed release is like a gamble, the movie is a high-risk product, and guaranteeing the box office of a movie is equivalent to guaranteeing the gambler, and the risk is doubled.
With such a huge risk, the issuer naturally has to put forward more benefit requirements.
Zou Xingxing was ready to be rejected, but he didn't expect Xiao Yao to be willing to accept this harsh condition.
He hurriedly said: "If Mr. Xiao is willing to agree to the request of 1.5 billion guarantees, we can naturally negotiate other conditions." ”
"If the final amount of the guaranteed issuance is set at 1.5 billion, then I have two requirements. First, if the final box office is below 1.5 billion, then the distribution agency fee is 15% of the divisible box office; second, if the final box office exceeds 1.5 billion, then we Huaying Entertainment will get 80% of the excess profit. ”
Zou Xingxing frowned and said, "Mr. Xiao, are you joking? ”
"I'm not kidding, I think it's fair. As far as I know, Director Zou released "Journey to the West" in 2013, and signed a guarantee agreement with Dadi Company at that time. If my news is good, the box office guarantee given by Dadi at that time was 300 million yuan, and if the box office exceeded 300 million, they would get 70% of the profit.
It's only been three years since then, and the guaranteed amount has increased from 300 million yuan to 1.5 billion yuan, and the speed of growth is too great. Xiao Yao said as a matter of course.
Zou Xingxing didn't expect Xiao Yao's news to be so well-informed, and even the agreement he signed with Dadi Company back then, he found out.
In the 2013 Chinese New Year, Zou Xingxing signed a guarantee agreement with Dadi Company on "Journey to the West". Dadi Company guaranteed a minimum of 300 million at the box office of "Journey to the West", and paid Zou Xingchi 88 million in advance. If the box office of the film is finally less than 300 million, the loss will be borne by Dadi Company; When the box office of the film exceeds 300 million, Dadi will share 70% of the excess profits.
As a result, the final box office of "Journey to the West" won 100 million, and the net income of Dadi Company was 140 million, and the income far exceeded that of the producer.
The guaranteed issuance signed with Dadi Company three years ago left Zou Xingxing with an incomparably profound lesson. Although he still prefers to issue a guaranteed issue now, the expectations in his heart have increased countless times. The lesson that the guaranteed amount is too small, it is enough to use it once, and he doesn't want to have a second time.
This time he proposed a guaranteed issuance condition of 1.5 billion, and many people thought he was whimsical, but he was never willing to let go.
Although Xiao Yao accepted the harsh condition of his 1.5 billion guaranteed issuance, Zou Xingxing was also a little difficult to accept the two requirements he put forward at the same time.
Zou Xingxing thought for a while and said: "The 15% agency issuance fee is too high, which I can't accept, and I can barely agree to the maximum 10%." 80% of the profit of the box office of more than 1.5 billion is also difficult for me to accept, and I can accept 60% at most. ”
For Zou Xingxing, the latter two additional requirements are actually not completely unacceptable, even if they fully agree to Xiao Yao's conditions, they are also acceptable.
The guarantee of 1.5 billion is the most divergent condition, as long as this is ensured, the income that Zou Xingxing's production company can get is large enough.