362 Sell at a price
Ranley and Drake left the hotel room, Harvey's room, the best hotel in Park City. Pen, fun, and www.biquge.info
On the other hand, the cash-strapped Lanley and Drake live in Salt Lake City, where hotels in Park City are too expensive during the Sundance Film Festival, and Salt Lake City, which is only a 30-minute drive away, is more affordable.
Standing outside the hotel room, Drake suddenly felt scared for a while, his feet were a little weak, and he almost fell directly to the ground, that embarrassed appearance made Lan Li really laugh, "Do you want to sit down and rest?"
Drake waved his hand again and again, he had been sitting for twenty-five minutes just now, and his butt began to ache faintly, what he needed now was not to sit down and rest, but to confirm and try, "We really rejected Weinstein?"
Lan Li nodded.
"We really rejected four and a half million?"
Lan Li nodded again.
Drake felt that his blood sugar was a little low, and he was dizzy for a while, and hurriedly reached out to support the wall, which avoided the danger of falling, "That...... So how much do we need?"
"I don't know, eight million?" Lan Li shrugged his shoulders, and then saw Drake gasp, almost out of breath, causing Lan Li to laugh directly, "If you regret it, we can still go back now, I believe Harvey is more than happy to renegotiate with us and sign the contract." ”
Drake took a big breath before he gasped, "Uh, I need to digest it." The amount of information today is a bit overwhelming. ”
How is the distribution rights of a film calculated, how should the buyout price be calculated, and how does the share ratio come about?
This is a very cumbersome calculation process, and even a real industry insider will not be able to explain it for a while. After simplification, we can simply and crudely make a numerical analogy.
Generally speaking, the revenue of a movie can be divided into two parts, box office revenue and peripheral income. The latter includes video tape rental, TV broadcast, online on-demand, peripheral products, theme parks, overseas copyrights and many other titles, the former is the familiar movie box office.
Peripheral income is a special product of large film companies, and it is unrealistic to make a profit purely through the box office, but for companies like Disney and Warner Bros., in fact, peripheral income is the majority.
But the movie box office is a major source of income for others. After a film gains the box office, it will be divided between the theaters, distribution and production.
For example, if the work is released on several screens for four weeks, the producer and distributor will pay $100,000 to the theater, which is fixed, and the producer and distributor will lose more and less money. However, now North America basically adopts the second way, dividing.
After careful calculation, the whole can be summarized as 40% of the box office of the movie by the theater chain, and the remaining 60% is divided between the distributor and the producer.
Under normal circumstances, the distributor's dividend percentage fluctuates between 15 and 20 percent, while the producer takes the remaining 40 to 45 percent.
Among them, the producer's dividend also needs to be divided into two parts, one is given to the production company itself, and the other is divided by the director, actors, screenwriters, producers and other crew members. Under normal circumstances, the producer leaves 15 to 20 percent, and the rest is obtained by the crew.
For example, after the release of "Love Crazy" and got 10 million at the North American box office, then the theater chain will take 4 million, the distributor will take 1.5 million, the producer will take 2.5 million, and the crew will divide the remaining 2 million.
If it's a big studio, with both distribution and production, like Warner Bros., then they're going to take four million, and if it's an independent studio, the producer and the crew are the same team, like "Love Crazy," they're going to take all four and a half million.
Of course, these percentages are only approximate and may vary depending on the circumstances of each work.
Especially for the part of the crew members, with a big name like Tom Cruise, the dividend ratio will naturally be higher, if you add a big director like Steven Spielberg, then the dividend of the crew alone may be as high as 40%, or even 50%, so that the income of the other three parties must naturally be adjusted accordingly.
It can be seen from here that the producers are almost unprofitable, because their dividends also need to deduct publicity expenses, production costs, etc., not only do they not make money, but they even have to post money.
So within the industry, people will simply say that if a film wants to make money for the producer from the box office, then the box office must reach three or four times the production cost, and this is possible. Relatively speaking, for producers, peripheral income is the fastest way to recover costs.
For the crew of "Love Crazy", they are the producers, that is, according to the rules of the industry, they can carve up 40 to 45 percent of the box office. Although in reality, an independent crew like them may not have such a high box office share ratio, generally speaking, it fluctuates sharply between 25% and 45%, and the detailed figure still depends on the negotiation process.
Then, you can simply take a vague median value, 30 percent, and then calculate such an account, if the North American box office of "Love Crazy" is 10 million, then the crew can get 3 million dollars.
Harvey first offered a buyout price of 1.5 million, and then raised it to 4.5 million, an increase of 3 million in one go, which is actually equivalent to the dividends that the crew should have received when the box office of "Love Crazy" reached 10 million. In other words, it's a change of soup and not a change of medicine. Harvey just spit out the part that the "Love is Crazy" crew should get, but made a heartache-cutting expression, and his acting skills are really full marks.
What's more, Harvey uses a buyout price, that is, if the North American box office of "Love Crazy" is higher than 10 million, and the crew will not get any income, then the "30%" belonging to them will all fall into Harvey's pocket.
But what if the North American box office of "Love Crazy" is less than 10 million?
Harvey will not suffer a loss, because he only spent "four and a half million dollars", instead, he can receive 60% of the box office dividends of "Love Crazy", that is, as long as the North American box office of "Love Crazy" is higher than 7.5 million, he will not lose money, and even if he does not reach this figure, his loss is not much.
It's almost a no-fail deal, so to speak.
Harvey is really cunning, he has firmly held the advantage in his hands from beginning to end, even in the face of Lan Li's sudden attack, he still did not lose control, this is the real "godfather" style.
However, Lan Li didn't know these insider details, and his principle of making judgments was very simple.
Andy gave two sets of numbers, one was the buyout price, seven million, and the other was the royalty price, four million plus the percentage. So how did these two sets of numbers come about?
Assuming that the North American box office of "Love Crazy" is only 10 million, it means that their share of the percentage should be 30 percent, in this case, the box office share is 3 million, plus the share of the copyright price of 4 million, that is, 7 million - just equal to the buyout price.
Just now, Harvey proposed a buyout price of 4.5 million with a decisive expression, but Lan Li knew that since Harvey was willing to put forward this price, it showed that Andy's judgment was accurate, and the price of the distribution rights of "Love Crazy" was indeed hovering around four million, so if Harvey wanted to buy out, seven million was the most suitable price.
Of course, the premise of all this discussion is that the North American box office of "Love Crazy" is 10 million, and as for whether it can meet such a standard, this is not a question that Lan Li can answer. It's all just hypothetical speculation. Maybe higher, maybe lower, anything is possible. Andy is estimating, Harvey is estimating, and other publishing companies are naturally estimating.
What's more, Lan Li firmly believes that it is impossible for an old fox like Harvey to quote a top price in one breath and not leave himself any leeway. Harvey is a businessman, not an artist, not a philanthropist, a businessman of Chiguoguo, a businessman who puts profit first, and at any time, he will leave a way for himself.
Therefore, even if Lan Li's judgment of numbers is not so accurate, he will definitely not be easily fooled.
As for the eight million I just told Drake, it was just a joke.
"What should we do now?" Drake finally relieved himself, and raised his head to look at Lan Li, the palpitation in his expression made people feel uneasy.
"Wait?" Lan Li shrugged his shoulders and gave the simplest, yet most truthful answer, Drake was stunned, and then laughed.
For "love crazy", the wisest thing for them to do right now is to wait. Because, they are a seller's market, waiting for buyers to come to buy, at present, there are already two well-known companies called Paramount Advantage and Weinstein Pictures to the door, and then, with the further fermentation of the film's reputation, there are bound to be more competitors to join it.
All they need to do is wait for the price to sell.
This year's Sundance seems to have lacked a bit of explosiveness and has not been able to repeat the blowouts of the past three years. At present, the high-profile "Another Earth" and "Double-Faced Martha" have not been able to detonate word of mouth, and the only one that can be compared to "Love is Crazy" is "Seeking Refuge".
The film, starring Jessica Chastain and Michael Shannon and directed by Jeff Nichols, earned a 90 out of 90 points in the official house book, surpassing "Love Crazy" and temporarily ranking first in the house book. However, "Seeking Refuge" failed to detonate a chain reaction among the audience, and the overall momentum was still slightly inferior.
Sure enough, less than an hour after Lan Li and Drake left the hotel, the contact number came to the door again. It seems that the Weinstein Pictures' shot has leaked the rumors, and other bigwigs have also begun to act. This time, it was Focus Pictures that came to the door.