Chapter 164: Money (2/5)

Why is Lu Xiaoran reluctant to invest directly in Xijie Entertainment?

In the final analysis, it's because Lu Xiaoran wants face, and the bottom line is set too high!

If he is shameless, he will play the loss law of Hollywood accounting...

The so-called law of loss is to bully outsiders who don't know how to do it!

The big Hollywood studios often set up a "shell" company for each film they produce, and this company is specifically designed to "lose money", and the revenue generated by the film is taken away by the big studios under various names. Under Hollywood's cunning accounting system, a movie that would have been a big hit could also be counted as a loss, and those who signed a profit-sharing agreement for the main creators of the film could hardly make any income from it.

For example, the Harry Potter and the Deathly Hallows series earned $612 million in the United States, but lost $167 million on its books.

That's because Warner Bros. Pictures deducted a whopping $212 million in distribution costs — which is paid for its own services, and $130 million in advertising costs — at least half of which was also paid by Warner Bros. The $57 million interest is the cost of Warner Bros. borrowing his right hand from his left hand.

Warner Bros. has earned at least $350 million in revenue from these items alone, but after deducting $316 million in production expenses as expenses, it has incurred a huge loss from an accounting perspective.

In this way, those creators who signed a net revenue sharing agreement with the film company will not be able to share any money.

And, from a financial and legal point of view, there are no violations at Warner Bros.

But in doing so, it's easy to be without friends...

Xijie Entertainment's influence in Asia is still enough, and the one-book two-shot strategy has also created a lot of benefits for Orange...

In last year's financial report, Orange's overseas revenue was close to 500 million yuan, of which the Korean market contributed nearly half!

In addition, the voice of domestic issuers is too small, and the surrounding income channels are far from being laid...

In this way, it also increases the difficulty of making accounts - the box office results are set, and the income is transparent...

......

The crew of "Raiders of the Lost Ark" has been determined at the beginning of the year, and the preliminary preparations have been underway, including costumes and props.

The production team started the stage of breaking down the script.

Once all the scenes are broken down, the production team can add variables one by one - actors' schedules, scenes, etc...

This stage takes about three days, and at the end of the day, everything can be put together, a master production schedule can be made, and a detailed shooting plan can be drawn up.

Lu Xiaoran also entered the working state, but Xijie called him to invite him in various ways...

I think I'm feeling the pressure!

"On South Korea's Unilateral Protectionism"

"What You Don't Know About the "Chinese Drama Ban" of South Korea's Three Major TV Stations

As soon as a few articles came out, coupled with the appeals of a bunch of experts, the Internet was hot, and the Korean entertainment side was noisy for a while...

Xijie has regressed - no longer asking for copyright sharing, investing 12 billion won, as long as the Korean side pays dividends, and at the same time introduces five TV dramas of Orange...

Chinese TV dramas have always been very cheap for overseas exports, with a single episode of about 4-50,000 US dollars.

Five TV series, plus one less than 160 episodes, $8 million, of course, not paid off all at once, they also have to be put on the market to see the effect.

At the hotel, Lu Xiaoran made the schedule with Chen Zhixi, and then prepared to go back to his room.

Chen Zhixi asked: "After the press conference in the evening, Xijie Entertainment will hold a cocktail party, invite you to participate, do you want to go?"

“... Where?"

"It looks like the Shilla Hotel!"

“... Go ahead and experience the affluent life of the Korean chaebol!"

Chen Zhixi looked at him a little strangely: "... I thought you weren't interested in that!"

"Hehe..."

If it weren't for the irresistible factor, Lao Tzu would be able to fly up!

......

However, Lu Xiaoran was indeed a little happy.

It's time to divide the account...

Lv doesn't love money, likes the feeling of increasing numbers!

All of Orange's movies, as long as he serves as a producer and produces under his name, he can share 5% of the revenue share, and if you add the script, it is 10%!

The movies released in the first half of the year, except for "Scorching Sun", the original script is all him!

"Fireworks in the Day" and "Search" are written and directed.

"Scorching Sun", he is the starring role!

Insert a sentence: As of June 15th, the box office of "Scorching Sun" has successfully exceeded 300 million, and judging from the current trend, before the 28th, 400 million is not a problem!

The most excited is not the producer, but Cao Baoping - he is the first time that the box office of a movie has exceeded 100 million, and it is 400 million as soon as it breaks!

Successfully became a blockbuster director!

The market evaluates the director, first of all, the box office, and then the award - Director Xie Fei has won the Silver Bear Award, who knows who he is?

Back to the theme: "Back to Twenty Years Old", cost + publicity, 35 million, won 480 million box office;

"Predecessor Raiders", cost + publicity 30 million, box office 602 million;

"Fireworks in the Day", with a publicity of 45 million and a box office of 280 million;

"Search", with an investment of 38 million yuan and a box office of 342 million;

"Manslaughter", cost + publicity investment: 70 million, box office: 508 million...

Among them, the main investment in publicity is on the ticket supplement, and the ticket supplement for each drama is about 20 million yuan, and the investment in "White Sun Fireworks" and "Manslaughter" is relatively high...

It's all profitable!

Of course, the most earned must be "Predecessor Raiders" - this book itself is provided by Lu Xiaoran, script, producer, producer, producer, he can take 15% of the share!

Five dramas brought him more than 100 million in income!

This is really a small number - compare the increase in stock prices!

Orange announced the profitability of five movies, the stock price ushered in two daily limits, and Lu Xiaoran was worth more than 7 billion...

According to this calculation, it has entered the top 300 of the Forbes China Rich List...

......

First, a press conference:

"It's a commercial entertainment film, and the investment is really 40 billion won..."

"I think in the face of Hollywood's strong cultural invasion, we should unite and work together!"

"China, Japan and South Korea will be released simultaneously, and I think the cost will be recovered enough through the box office!"

"I haven't lost money on my films!"

“... Filming will start in a week!"

"I've always been a fan of Kim Hye-so and Jun Ji-hyun, and it's my honor to work with them this time..."

"It's a crime action movie... I won't talk about the specifics!"

After speaking, Lu Xiaoran glanced at the host, and the other party tacitly announced the end of the press conference.

Back in the background, he took the signed agreement to Chen Zhixi, who solemnly accepted it.

Lu Xiaoran left the news hall of the Shilla Hotel, turned to the safe passage on the side, and entered the third floor directly through the stairs.

There is also a media party in the banquet hall of Xijie Entertainment here.

As for the contract signed at the press conference - just a formality, the real contract was officially signed three days ago.