Chapter 536: Angel Investment

"I can invest about 10 million. Following Wang Yishan, Yin said at noon.

Tan Yong's eyes widened, is this guy so rich?

Although he is not short of 10 million, Tan Yong can't do it if he believes in Wang Zi'an so much.

What's more, he is only tens of millions of assets, and he can't afford to play this kind of ticket.

"I don't have a lot of liquidity, so I'll invest three million. "Good friends are so supportive of Wang Zi'an, Tan Yong had to grit his teeth and say.

Later, Harry and others also expressed their attitudes, more or less voting some.

Yui Aragaki took a notebook to the side.

Excluding the initiator Wang Zi'an, and Yui Aragaki, Heika Ruzakura, and Ivanka, the total investment of all the people in the Pingyang family is not 100 million.

Among them, Huang Tingfei and Yao Mingyue injected the most capital, followed by Wang Yishan.

And not all of this money comes in a lump sum.

But it doesn't matter, during the preparation period of the project, you don't need so much money.

Even after filming starts, the actors' salaries are not paid in full immediately.

Wang Zi'an said that the cost of not less than one billion, and this billion is used in all aspects, in order.

In general, the cost of a movie is divided into four parts:

1. Online expenses refer to the relevant expenses of the main creative personnel involved in the production of the film, including screenwriters, producers, directors and a small number of first-line actors.

Some of this money needs to be spent before filming begins.

Second, offline expenses refer to the related expenses of all personnel and all items that are not included in the online expenses in the filming of the film, and some of these have to be spent during the preparation period.

Third, post-production, refers to the cost associated with selecting the original material and making it into a finished film, which will not be paid until the filming is completed.

Fourth, others, film production costs not included in the above. This generally includes insurance, accounting, financing costs, recurrent expenses, and on-site publicity work, such as behind-the-scenes footage.

This item is only paid after post-production.

Broadly speaking, the composition of film budgets is roughly equal.

Online costs account for 16%-26% of the total budget, production expenses account for 56%-74%, post-production accounts for 7%-13%, and other costs vary the most, between 1%-8%.

Online costs, the average person may think that the cost of film screenwriting will not increase with the budget, because it is still created by a small group of people on the computer.

In fact, this cost does add up significantly with your budget.

Producers' costs also increase with the size of the budget, with films with budgets of $7.5 million to $10 million accounting for the highest portion of the cost at 18 percent, and the largest budget films falling to about 6 percent.

Producers may also have other sources of income. Their production company may charge a fee, they may also be the writer or director of the project, and they may receive a share of the film's profits.

The cost of the director (and his entourage and installation) also increases roughly with the budget, though not always.

Directors often also work in other roles such as producers or screenwriters, which complicates the proportion of their total salary in their budgets. For example, in the film "Mystery Village," Nate Shyamalan's total remuneration is a little over $10 million, but only a small portion of that is paid as a director.

His script copyright fee is $7.2 million (plus $300,000 for adaptation), producer's fee is $2.5 million (plus $500,000 for production management), and director's fee is only $233384.

In fact, Wang Zi'an's budget for this movie must be more than one billion, but in the end, it is calculated because the money spent on him can be temporarily not spended.

Director, screenwriter, copyright, actor's salary...... He can not be used for the time being, and it will be counted in the future dividends.

has been with two crews, and has a friend like Nolan, Wang Zi'an now knows the production framework of the movie well.

For example, in the cost of movies, there is also an actor cost, which is roughly divided into three categories.

1. Online actors: These are the main actors involved in the production of the film, sometimes called the lead actors or "big actors", whose names will appear above the title of the cinema's signature movie.

Two, Other Actors: In the offline production section, there are the names of all the other actors who have characters and dialogues, including from supporting roles to dragon sets that only appear in one scene.

Three, extras, cameos, and extras: These are people who act as backgrounds, playing the role of a soldier in battle, a customer who is eating, or a crowd who is shouting.

The key components of post-production (i.e., the combination, editing, and refinement of picture and sound elements) are slightly reduced relative to the overall cost, and the main post-production element that will increase with the budget is music.

This has been marked by an increase in the cost and scale of film scores (i.e., where more expensive composers work with a large group of musicians) and an increase in the use of licensed pieces by well-known artists.

On the soundtrack, Wang Zi'an felt that he could participate, but the reality told him that he definitely didn't have that much energy and time.

Therefore, this part of the money should also be derived.

Other costs refer to a variety of other costs that vary greatly between movies of different budgets.

For example, insurance, the first is the general insurance that needs to be used to protect the actors, crew, equipment, and location during the production of a film.

The cost of this type of insurance decreases with the increase in the budget, but it is roughly about 1% of the total cost.

Actual insurance costs are often linked to the cost of offline production, rather than to the total cost of the film.

The second type of insurance is the completion guarantee, which is an effective investor insurance.

The Completion Guarantor Company will agree to provide film production insurance in the event of failure of the final film production for a fee.

They have the right to hire and fire, and if they feel that the budget or schedule is not met, they will step in and take action to get the production back on track, and if it fails, they will return the money invested by the investors to them.

But the smallest budget films are rarely willing to take the risk because they are underfunded and they are inherently riskier to make.

Then there is the fact that after the filming of a movie is completed, marketing and promotion are also needed to make the movie known to the public, and then achieve a bumper harvest of box office reputation.

"The fragrance of wine" is also afraid of "deep alleys", and no matter how good the product is, it is inseparable from marketing and promotion, which is of course also applicable to the film industry.

More than half of the films are unlikely to recoup enough money to cover the marketing costs, but distributors still have to spend a lot of money on marketing because popular movies can be big hits.

Slow and steady earnings are not the norm in the film industry, many losses, and a small number of big movies are the norm.

Every time a new movie is released, it's a bit of a gamble, hoping to win big.

The increasing marketing expenditure may increase the audience demand for the film on subsequent platforms.

These platforms have much higher profit margins than theatrical projections.

Marketing can increase the perceived value of a film in order to charge higher licensing fees to TV and subscription streaming platforms.

The profit margins for these types of deals are well over 99% because the cost of delivery is almost zero, and there is no additional marketing spend.

In addition, the contractual obligations of the producer or studio that produces the film may require the distributor to invest a certain amount of money in publicity.

Late at night, Pingxiang apartment.

After everyone left, Hiraka Ryuzakura and Aragaki Yui lay side by side on the coffee table in the living room to read the notebook, waiting for Wang Zi'an to finish taking a bath.

This was what Wang Zi'an asked, and they believed him, but he couldn't help but give them any explanation and reason.

A billion project, too big, needs to be IPO.

Firefly City can't eat it.