Chapter 5 Financing of Films (3/8)

"Have you seen "The andering Earth", "The Wandering Earth"?"

Luc Besson looked dazed.

"The sun is about to be destroyed, and the existence that has been the backbone of the human spirit for countless years has become a symbol of death and terror. Rather than sit back and wait, humanity chooses to struggle to the end.

The massive Earth Escape Plan is implemented. However, human-sized man-made environments of ordinary size cannot withstand a long escape journey. Therefore, human beings have to install a huge earth engine on one side of the earth, and turn the entire huge earth environment into an immigrant ark, so as to escape the solar system and go to a new home..."

After a brief introduction to the plot of "The Wandering Earth", Zhang Junsheng looked at Luc Besson: "This is the most popular science fiction in our China!"

“… It's hard to shoot!"

Luc Besson hesitated.

Just listening to this idea, you know that you will never be able to shoot without a cost of one or two hundred million!

"There's also a 'Full-Band Blocking Interference'..."

It's not over, Zhang Junsheng said another work of Da Liu again...

"Zhang, Europa Pictures can only start projects under $50 million at most..."

"We can raise money!"

Luc Besson immediately got Zhang Junsheng's thoughts: "... Are you trying to get money out of the Germans?"

Well, basically when it comes to financing, the first thing that comes to mind is Germany...

"Tomb Raider", the total investment is 94 million US dollars, but in fact, Paramount did not spend a dime on the production, and the cost was zero.

"Tomb Raider" has been hailed as a model of Hollywood capital operation.

The object of their empty gloves white wolf is Germany!

According to German tax law, film investors can get a tax refund in advance, and this money can be received before filming starts.

More importantly, German law does not require films to be filmed in Germany or to cooperate with German filmmakers, but only requires German production companies to own the rights and dividends of the film.

That's why many Hollywood producers don't look for a director first when they get a script, but a German investor first.

Before the filming of "Tomb Raider" began, Paramount directly sold the film rights to a German company for 94 million, and then, Paramount leased back the film for $83.8 million for 20 years, and Paramount immediately earned $10.2 million.

The German company nominally owns the rights to the film, and according to German tax law, the company receives a tax refund equivalent to about 10% of the future film's revenue, which is a benefit of the German company.

As for who loses?

Probably a German citizen, after all, the funds used for tax refunds are obtained from taxes.

Not only that, but the UK tax law has similar provisions for film investment, the only difference is that the UK law requires that the film must be filmed in the UK, or partially filmed and produced in the UK, or hire British filmmakers, so Paramount employs several British actors and technicians. In this way, Paramount sold the rights to the film to a British bank in the same way, and made another $12 million from it.

Next, Paramount pre-sold the overseas distribution rights of "Tomb Raider" to film distribution companies in Japan, the United Kingdom, France, Germany, Italy, and Spain, and sold a total of $65 million.

Through the above three moves, Paramount received a total of $87.2 million, and the remaining budget of less than $7 million was obtained through the sale of the film's rights to broadcast on US pay television.

Paramount solved it without spending a penny on the budget of the movie...

As for the only bit of legal fees paid, in fact, a large company like Paramount has a group of excellent lawyers and accountants, so it doesn't even have to pay for legal fees...

You heard it right, with a total investment of $94 million, Paramount didn't spend a penny, and a Hollywood blockbuster was made like this!

.. From now on, all the box office, DVDs, and peripheral products after the movie will be 100% pure profit!

Profiteering...

It's still easy to get a blockbuster into action, provided that the project itself is attractive enough!

Expensive lawyer fees and intermediary fees are not affordable for ordinary small-budget films, and more importantly, the overseas distribution rights of general films are bought after the film is made, and the filmmaker sees the sample film and thinks it can be sold for money;

There is no guarantee for the box office of literary films, and there is no way to raise money through this way.

That's the real reason why Hollywood's big six studios love to make blockbusters!

"I'll admit you're attractive, but..."

Luc Besson hesitated for a moment, the two works that Zhang Junsheng said are not operational at all, "Tomb Raider" is based on the game, and the "Tomb Raider" game has a very large influence in the world and has a huge fan base.

Chinese science fiction does not have the slightest influence overseas...

"So, I want you to be the producer!"

Zhang Junsheng answered immediately.

Luc Besson's influence is still very strong, and there is no problem in completing a financing of 50 million dollars through him...

“… Hehe, I don't have such a strong attraction!"

$50 million is only half of the budget, what about the remaining half?

"You underestimated the interest of Chinese tyrants in movies!"

Zhang Junsheng smiled: "I can guarantee that as long as you come to China at the beginning of next year and announce your appointment as the producer of "The Wandering Earth" and "Full Band Blocking Interference", I will be sure to increase the funding by more than 50 million US dollars!"

……

The local tyrants in the mainland are very obsessed with big directors!

"Warrior's Gate" has an investment of nearly $50 million, and the main control investment is Kimei Pictures;

The investment in "Wolf Totem" is close to 60 million US dollars, and the main control investment is China Film...

The production cost of "Night Peacock" is 10 million US dollars, and the main control investment is Haixiu Media...

French directors are still very popular, Chinese tyrants welcome such big directors, Luc Besson plus Zhang Junsheng, some local tyrants are willing to endorse!

Wanda and Xingmei are interested in cooperating with Yuehua, and I believe they will not refuse a big cake like "The Wandering Earth".

The most important thing is that if Yuehua has these big projects in hand, the listing will be much smoother!

As for whether it will lose money, please, sci-fi films, "Avatar" will be released next year, and the later production will be 3D, and the mainland box office will properly break 500 million...

It is unlikely that you will make a big profit, but it can definitely guarantee Yuehua's income.

……

Don't think that Zhang Junsheng is very vicious, in fact, his approach can be called good, but "The Wandering Earth" and "Full-Band Blocking Interference" are high-quality projects, if he makes money, he will share the profits with that company!

What about Hollywood?

Eat people without spitting out bones!

For example, Germany, in many cases, Germany is used to "be at the bottom", especially projects that celebrities are keen on but studios are not optimistic about, and are most likely to find foreign investors to act as cannon fodder in the market.

The salary of celebrities is sky-high, which invisibly increases the risk factor of the film, but with a star in charge, foreign investors are easy to be confused.

There are many big stars in the United States who are in the setting stage, but the understanding of their worth by overseas people is still stuck in 5 or 10 years ago, so these stars who have no price in the market have been given the opportunity to make a comeback again and again.

Stallone is famous, a few years ago he wanted to make a "Eyes on You", but the Hollywood studio was not interested in the script at all, but fortunately, thousands of Germans enthusiastically paid for it and easily raised a budget of 60 million for the film.

After the filming was completed, the director of Universal saw that he didn't even have the courage to send it to the cinema for distribution, and quietly sold it to the video rental store Peskind after a year...

As for the investments of the German "devils", of course, all of them were lost, and not a penny could be recovered - minus all kinds of issuance costs, it is impossible for investors to have a share.

The German tax law will not be amended for the time being, and will not be amended until 2016...

I have to be cheated for eight years!

In comparison, Zhang Junsheng is not more kind, of course, the profit must be deducted from the issuance fee, as for how much the issuance fee is, this is not easy to say.