Chapter 48: All Black (Ask for Recommendation)
The production company is still a small production company that has no capital in theatrical films, and it is naturally at a disadvantage when facing the distribution company.
This is determined by the industrial chain and industry ecology, and the advantages of foresight cannot be offset.
Ronan thought for a moment and said, "Can you tell me more about it?"
Navas roughly said: "Counting the distribution commission alone, the total income is 40% of the commission. In the latter case, 25 percent of the income is taken as a percentage of the film's promotional expenses, distribution fees, copy fees, management fees, transportation costs, and insurance costs. ”
Ronan sighed secretly: Sure enough, everyone is as dark.
The production company is a black investor, and the distribution company is a black production company.
The price offered by Navas is basically the same as that of Sony Entertainment.
Of course, Navas is not like Sony Entertainment, which directly says that it accepts it or doesn't have to talk about it.
Negotiations, there must be talks before they can be discussed.
Ronan didn't choose, but directly pointed to Lionsgate's weakness: "Mr. Navas, as far as I know, Lionsgate doesn't have overseas distribution capabilities. ”
There's no denying that, Navas admits: "Yes, Lionsgate is building an overseas distribution channel. He added: "I'm talking about the North American market. ”
Ronan grabbed the opponent's weakness and chased hard: "My goal is global distribution, and if I release in North America alone, it means that I will have to find overseas publishers later, and I will have to do a lot of work, and even pay more chips." ”
He has never thought of selling the rights to overseas distributions directly, but the real idea in the negotiation is always hidden behind the false language, and the disadvantage can also be subtly turned into an advantage in the negotiation: "This does not meet my needs." ”
Navas looked at Ronan, trying to get something out of the change in his expression.
Ronan cleverly turned the unfavorable facts into his own bargaining capital: "I talked to Mr. Chris of Sony Entertainment two days ago that Sony Entertainment only offered a 30% cut for the North American distribution of this film, and Sony Entertainment is also responsible for promoting the film overseas. ”
It's also telling Navas that the Human Eradication Plan isn't unattended.
Instead of being distracted by this, Navas said, "Lionsgate's strategy is to focus on horror films, and now the company's resources are tilted towards horror films. He smiled confidently: "When it comes to distribution channels, Lionsgate is not as good as Sony Entertainment, but Mr. Anderson, how many films does Sony Entertainment release in a year? ”
Without waiting for Ronan to speak, Navas continued: "Lionsgate only released one Lolita last year, and today it only plans to release two or three films, and the company's investment in each film is not comparable to the small projects released by large companies. ”
Ronan said nonsense: "Sony Entertainment promises to push the "Human Eradication Plan" into theaters this year, so that Shahai Entertainment can recover the funds as soon as possible." ”
Of course, the faster the money invested, the better, but the time is also expensive.
Navas knew this well and said directly: "Lionsgate has not released a film recently, "The Human Eradication Project has been completed, and now there are nearly three months left until Halloween, and if we reach an agreement quickly, Lionsgate can go all out to promote this film and release it in time for Halloween." ”
It's almost tempting Ronan to get away from me.
It may take more than half a year to run a large-budget production, from the completion of post-production to publicity and distribution to release, but for a film like "Human Eradication Project", two or three months is enough.
Of course, the speed at which Hollywood operates films is far worse than that of Hong Kong movies back then.
Ronan spread his hands: "In the North American market alone, the forty percent distribution commission is too high, and there is no overseas distribution!"
Navas could hear Ronan choose the former condition and said, "Lionsgate is very sincere. ”
This sincerity is just to talk about it with his mouth? Ronan complained in his heart.
He chose to use the income commission as the distribution commission, the latter seems to be good, and it is also the choice of some people or companies who have just entered Hollywood, but since he came to Los Angeles, he has been studying the situation inside and outside the circle, and has checked some cases, and knows that under the current accounting calculation rules of Hollywood, there are too many places where the seemingly generous commission plus deduction of expenses can be done reasonably and legally.
If you don't have enough power or backers, it's best not to touch it.
Publishers should never be expected to restrain themselves with conscience and morality.
Isn't the greatest conscience of capital to obtain the greatest returns?
Ronan smiled: "Mr. Navas, I'm a newcomer to Hollywood, but I also know that the highest percentage commonly used in the industry is 30% in North America and 40% overseas. ”
Faced with such a difficult person, unless the film is abandoned, some concessions must be made, and Navas quickly decided: "Thirty-five percent in North America." ”
Ronan remained silent and said directly: "Thirty percent of the North American box office." ”
"No way. Navas shook his head without hesitation: "I'm talking about thirty percent of the total income in North America." ”
"Mr. Navas, Shahai Entertainment is looking for a long-term cooperative publishing company. Ronan then said, "'Human Eradication' is just the beginning, and then we're going to make a 'Death Is Coming' with an investment of tens of millions of dollars, and I have financing from the Middle East, so it's not a problem at all." ”
""Here comes the Grim Reaper?" Navas was a little curious.
Ronan opened the briefcase, took out the script from it, and handed it over: "The director is still James Wong, you have seen "Human Eradication Project", you must know this director's achievements in horror and thriller. ”
Navas didn't speak, took the script and flipped through it, raising his eyebrows slightly, the setting of this script is a bit interesting, much stronger than "Human Elimination Plan".
Ronan said in due course: "This is just one part of Shahai Entertainment's huge production plan. ”
Navas immediately asked, "What else?"
"I'm sorry. Ronan directly opened the invincible plus exemption: "The rest are in the secrecy stage for the time being. ”
Navas nodded, knowing that many production companies are worried about unnecessary competition, and often keep a project secret before it is put on the agenda, and even some projects do not reveal their real names during the filming stage for the sake of confidentiality, but are collectively referred to by a certain code name.
"Do you have plenty of money?" he asked.
Even Lionsgate, which is backed by a major Canadian bank, is strapped for production funds.
Lorna was quite confident: "Of course. He said truthfully: "I think Mr. Navas has heard that the oil tycoons are particularly generous. ”
These words reminded Navas of the Arab characters in "The Human Eradication Plan", and it dawned on him that it was no wonder that the Arab characters ended up acting as saviors, and it turned out to be like this.
Shahai Entertainment may become a long-term and stable source provider?
Navas quickly pondered that the risks of financing, production and debt were all borne by the producers, but the distributors could suck in most of the proceeds......
He closed the script and asked, "Will this film be made?"
Ronan swore that "I am not short of funds, no matter what the box office of "Human Removal Plan" is, it will not affect "Death is Coming". He added: "When "Death is Coming" is completed, under the same conditions, Shahai Entertainment will inevitably give priority to Lionsgate." ”
Navas nodded subconsciously, and then shook his head again, obviously the publisher is the one who has the absolute advantage, why did he suddenly follow Ronan Anderson's rhythm?
This young man is not simple.
Navas no longer cares about "The Grim Reaper" and the long-term film source, which will make him slide further to the underdog, and immediately gets to the point: "Tell me about your conditions." ”
Ronan will not relax because he has won a little initiative, and immediately said: "The box office is 20 percent, Lionsgate invests no less than $800,000 in publicity, and other copyright income is calculated separately." ”
He thought for a moment and added: "For publicity reasons, the cost of the film to be released is $11 million. ”
The rest is nothing more than bargaining.
What followed was a five-day tug-of-war negotiation, with Navas adding two negotiators, and Ronan bringing Robert and George Clint over to form a team.
After numerous rounds of bargaining, the two parties finally signed a formal contract for the full rights distribution in North America on August 20.
Lionsgate charges a 28 percent cut of gross box office receipts for the North American theatrical distribution of Project Humanity, including all costs incurred at the time of release, and Lionsgate has pledged to invest no less than $500,000 in North American promotion.
In terms of peripheral copyrights, Lionsgate takes a 20 percent cut of the film's videotapes, discs, new media and television rights, and 50 percent of the total revenue from film derivatives.
Fifty percent of the revenue from a film derivative by a distribution company is a normal level in the industry.
In addition, the audit costs arising from the capital transactions between the two companies shall be borne by Shahai Entertainment.
Ronan tried his best to solve the problem, but he still couldn't change the situation in which the publisher had an absolute advantage.
However, what made it a little easier for him was that "Human Eradication Project" moved to the publicity and distribution stage.