Chapter 168: Hollywood's Off-the-Plate Move
Shi Nansheng didn't understand Qiao Fengfeng's decision, putting a better option that could be more than five percent of the share was just that Twentieth Century Fox needed to deduct the publicity expenses first, but he would rather choose to give the share to Twentieth Century Fox five percent, and let Twentieth Century Fox pay all the publicity expenses, which is not the best option, why, why?
When Shi Nansheng asked why, the word that instantly popped up in Qiao Feng's mind was Too young, too simple, but then he himself felt funny.
Shi Nansheng is older than him, and the reason why he doesn't understand it is just that he doesn't have those memories of his past life.
Moreover, the Hong Kong film industry at this time is still very pure, really, much purer than Hollywood.
Look at the box office sharing method in Hong Kong at this time, Golden Harvest, Shaw Brothers will make their own films, they must be self-sufficient and don't talk about any account sharing.
But in addition to their own films, their subsidiaries, satellite companies, and even those independent production companies want to be released in these theaters, and these theaters do not say that they have a distribution company, and they do not charge any distribution fees.
In the past, after the independent production company made a good film, there was a bottom system for these theaters to be screened, that is, the film should be released in theaters, not to talk about the box office, first according to the number of screenings, equipment, etc., to set a daily charter bottom line price, if the movie box office is not ideal, the theater line does not reach the bottom line price, then the theater line earns according to the bottom line price, of course, if the final account sharing theater can be higher than the bottom line price, then according to the account.
Under the bottom system, the possibility of loss for the theater side is reduced a lot, but the risk is passed on to the producer, and the producer bears the consequences of whether it loses or not, and even many times the box office is too poor, not only does the box office not make money, but also pays the extra bottom fee.
Of course, this is also because the Hong Kong film market is small, and the screening time of each movie is relatively short, so the particularly popular movies are rarely screened for a month, mostly more than 20 days, and the general movie release time is often a week or two weeks.
There is no need for an overly complicated way to divide accounts, naturally it is more difficult for the cinema to do something shady, and there must be things like stealing the box office, but it is easy for the average discerning person to see it.
Compared with Hollywood, the Hong Kong film market wants to be pure in every link, and in Hollywood, there are extremely cumbersome contract restrictions in any link, but no matter how limited the contract is, the upper echelons of the Hollywood industry chain have enough ways to increase their own interests as much as possible.
Not to mention the channel terminals of the theater chain, just to say that the film distributor can play to death investors, especially investors outside the circle, and can also play to death the stars who want to share profits.
In 2009, Warner, the distributor of "Harry Potter and the Order of the Phoenix", released a report that the film was in a huge loss during the theatrical release stage.
And what is the box office of this film, 938.2 million US dollars, and what is the production cost, 315.9 million US dollars.
In other words, according to the distribution of domestic films in the United States, the producer will definitely make money just by relying on the box office share.
But in the end, the producer only got $276.7 million, a loss of $40 million.
The reason why this situation occurs is because the publisher has made a ghost in it, and the normal distribution fee Warner can only get less than 50 million US dollars, but the final publicity fee Warner deducted 182.6 million US dollars, and what is the extra 130 million US dollars for, used for publicity and marketing.
But this is a left-handed and right-handed matter, because most of the publicity and marketing platforms are Warner's own, because Warner itself is a media giant, and Warner Pictures is just a subsidiary of Time Warner.
For example, it may cost 10 million US dollars to advertise on the front of a TV station, which is a medium price, but Warner gave 20 million US dollars according to the highest standard price in the industry.
In the end, because the publicity and marketing expenses were as high as 130 million US dollars, the producer only got more than 270 million US dollars after deducting these.
But for Warner, the main investor of the movie, he did not lose money at the box office of the movie, not only did he not lose money but also made a lot of money, but he just made money from the publicity.
The losers were three other investors, including Shengri Pictures, which accounted for more than 60 percent of their investments.
Hollywood is too dark, and there are countless off-market tricks, so instead of risking being cheated on publicity expenses and choosing 35 percent of the box office account, it is better to give 5 percent to the distributor Twentieth Century Fox, and only earn the most transparent 30 percent of the box office account.
Because the box office is the most transparent, although the theater chain may conceal the report, steal the box office and other means to reduce the box office, but because it involves its own interests, there is no need for Qiao Feng to send people to keep an eye on it, and the Twentieth Century Fox itself will strictly guard against the theater chain to make small moves.
And giving up a 5% cut can also make Twentieth Century Fox more motivated to promote and distribute, because the better they advertise, the higher the box office, and the more 5% they have to get to get more money.
For its own interests, Twentieth Century Fox will never slack off in publicity, if the box office performance in the first weekend of release is good enough, in terms of theaters to strive for more canvases and more films, Twentieth Century Fox will be more proactive.
And for this kind of making money by himself with films that belong to Hollywood, Qiao Feng feels that he earns more and less by himself, and he doesn't need to worry too much.
For ordinary people, they may think that the main actors should be American actors or white actors, because this is obviously more in line with the viewing preferences of Europeans and Americans.
But Qiao Feng wants to use Chinese, or to use his favorite Chinese actors like Hong Kong and the mainland, because in his opinion, they are all Hollywood films anyway, as long as they don't lose money, they make as much money as they make, and they can also push Chinese actors in front of European and American audiences, no matter how you look at it, it's worth it.