Chapter Twenty-Nine: Give Up 4 Million and Choose 1 Million
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Jon Feltimmel, the manager of the distribution department, stood aside and looked at Chen Tian, and the guaranteed share is also the way the producer and the theater choose to share it today.
The producer often negotiates a guaranteed reserve price with the theater chain before the release, which is also the fee that the theater should pay to the producer as a fixed income, regardless of how much the box office is the last.
Subsequently, the actual box office revenue is obtained by subtracting the fixed expenses from the box office during the entire release period, and then divided according to the different proportions of different periods of release.
Jon Philtimel was eager to know if Chen Tian was confident in his film, or if he wanted to gamble his luck before he came up with the idea of a guaranteed share.
In his opinion, although $2.5 million is not much, it is definitely not too little, and to a certain extent, it can alleviate the financial difficulties in Chen Tian's mouth.
Chen Tian thought about it, the global box office of Hollywood movies will only account for about one-third of the film revenue, and some even do not reach this proportion.
This is also the main reason why many Hollywood blockbusters have such a high investment, and the final box office is not satisfactory but can still be profitable, because DVD sales are the majority, followed by box office revenue, which can only be released on TV nine months later.
Generally, DVD, box office, and TV will account for the vast majority of film revenue, and films with popular peripheral products do not belong to this list, such as Harry Potter and some animated blockbusters.
"Buried Alive" obviously has no merchandise to sell, so combined with the global box office of "Buried Alive" of $20 million, the total final revenue of the film is almost $60 million.
Chen Tian doesn't know the specific share of the film and these various incomes, but according to the normal situation of the road he knows, the later "Buried Alive" can probably bring almost 40 million net income to Lionsgate.
Although this data may not be accurate, Chen Tian feels that it will not be much different in general.
After sorting out these, Chen Tian also felt low in his heart, and looked at Tom Odenberg: "The guaranteed reserve price is $1 million." ”
Tom Oldenberg did not speak but motioned for Chen Tian to continue, Chen Tian smiled: "If the final global box office of the movie exceeds 10 million, it will be divided into 5%, if it can pass 20 million, 10%.
For every 5 million dollars on the basis of 20 million, I will divide 2% more until 50 million dollars, until 50 million dollars, and if it exceeds 50 million dollars, then the excess part will be divided into 30%. ”
Jon Fittimmel, who had been looking at Chen Tian, sneered, he already had the idea of driving Chen Tian, an unknown Asian American, out of the city: "Isn't it a good habit for Justin to be told that you are too greedy?
As Jon Philtimmel said, Chen Tianti's share ratio is too exaggerated, and if Lionsgate gets the box office share and then divides it, then they will consider it.
"No, no, you obviously didn't wait for me to finish. ”
"What else do you want to say, although we admit that this is an excellent work, it does not necessarily mean that we need to buy it. Tom Oldenberg said coldly.
"I only want box office revenue, and I don't want any revenue from DVDs, TVs, and soundtracks.
I think the three of you also know the percentage of box office revenue, and even a film that can't be released in the U.S. can make tens of millions of dollars in these channels.
Now I'm giving up that part of the proceeds, just a share of the box office, and I'm sorry if you can't agree to it. Chen Tian shrugged, he didn't want to put the initiative in Lionsgate's hands.
Compared with the final box office, Chen Tian can't grasp the specific net income at all, even if Lionsgate promises him to share 50% of the net income, Chen Tian will not ask for it.
Because net income is only a vague concept in Hollywood, where profit is paramount, when you look at the final net income, more than 90% is not real net income.
Chen Tian has seen too many such examples, and these examples have slowly become the norm, and eventually become the famous Hollywood accounting loss law.
The law of loss is most often seen in blockbusters distributed by large corporations, and while these Hollywood blockbusters can generate significant revenue, they are usually loss-making on the books.
They 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 such an accounting system, a movie that was originally a big hit may also be counted as a loss.
It is difficult for the main creators who have signed a movie profit-sharing agreement to get any income from it, which is the famous accounting loss law in Hollywood.
For example, the later "Harry Potter and the Order of the Phoenix" earned $612 million in North America alone, but such a super-hit film lost as much as $167 million on the books.
The reason for this is the emergence of the law of loss, from which Warner Bros. Pictures deducted a whopping $212 million in distribution costs, which Warner paid for its services.
In addition, Warner's report shows that the film was advertised as high as $130 million, at least half of which was also paid by Warner Bros. itself.
Warner Bros. could have earned at least $350 million from these items, but after deducting $316 million in production expenses as expenses, it was a huge loss from an accounting perspective.
In such a situation, those creators who have signed a net revenue sharing agreement with the filmmaker don't want to get even a penny.
Where there is oppression, there is resistance, this is an eternal law.
After the emergence of the law of loss, some stars and big directors who have the right to speak in order to avoid this trick of big Hollywood studios, proposed to share in other forms or like Chen Tian before proposing to share before net income, but not all stars and main creators have such a right to speak.
Not to mention that he didn't have any fame now, so Chen Tian simply made such a request.
As Chen Tian said, the channel fee that is not needed outside the box office undoubtedly impressed the three managers of Lionsgate.
But the capitalists will never be satisfied, even if it is not a huge ** for them outside the box office.
They are worried that if the global box office reaches 25 million, then they need to divide 3 million to Chen Tian, plus the guaranteed 1 million, which is equivalent to giving Chen Tian 4 million at the psychological price limit of their buyout.
"If you're not satisfied, I can only say I'm sorry for this cooperation. Chen Tian shrugged, according to his prediction, no matter how good this new "Buried Alive" is, it should reach the box office level of future generations.
The box office share of 20 million plus the guaranteed minimum of 1 million just reached the minimum buyout price of 3 million he expected.
If you are lucky, you can get more, and at this moment, Chen Tian threw the idea of a direct buyout to the Pacific Ocean.
If he can't reach an agreement with Lionsgate, then he goes to another company.
"How about we give you a 3 million direct buyout?" Tom Odenberg proposed as he looked at Chen Tian.
If Lionsgate had given this price at the beginning, Chen Tian would have taken the bus back to downtown Los Angeles with a check, but now is not the beginning.
Chen Tian didn't show any performance on his face, which made Tom Odenberg grit his teeth: "3.5 million, this price can't be higher." ”
Seeing Chen Tian shaking his head, Tom Odenberg gave the final offer of 4 million.
This price once made Chen Tian's heart move, but Chen Tian still restrained his impulse and did not agree: "Mr. Odenberg, I will not sell it directly, unless it is a crazy price." ”
Tom Oldenberg was very annoyed in his heart, but he still endured it under his professional habits: "Justin, we still need to discuss, please wait for you." ”
Saying that, Tom Odenberg and the three of them walked aside to discuss again, although the three of them were very dissatisfied with Chen Tian's high price, but when discussing specific cooperation, they immediately and quickly operated their brains.
"This film is really good, coupled with Scarlett Johansson's time and his own production funds, if we do the corresponding publicity and then release it, the global box office should have 20 million. Publishing Manager Jon Philtimmel spoke his mind.
"However, it is not ruled out that there will be an unexpected situation, which is likely to reach 30 million or even 40 million, but this is not very likely, and I don't think it is possible to reach 50 million. ”
Production Manager Michael Parsennek nodded, "I'm thinking about the same as Jon, and his meaning is obvious, unless we come up with a buyout price that makes him feel good enough."
I think the price is at least above 6 million, and when the box office reaches 35 million, we end up paying him 6.6 million, but it is not easy to reach so much at the box office, and I think we can promise him a guaranteed share. ”
"And we can reach a long-term cooperation, I think he has a lot of potential, if he still has a good script in his hands, it is even more worthy of our cooperation. Jon Fittimmel points out what Lionsgate lacks most.
Although Tom Odenberg felt uncomfortable being led by a young Asian, he swallowed all the discomfort when he thought that the tens of millions of pure income outside the box office could be swallowed by other companies because of his disagreement.
"Then agree with him. Tom Odenberg said and turned to Chen Tian.
"We agree to your guaranteed share. ”
Tom Odenberg's reply made Chen Tian have the urge to cry with joy, although he only got 1 million at the moment, but this is incomparable to the advertising funds he has pulled.
"I hope we have a good time working together. Chen Tian smiled and stretched out his hand.
"You're such a cunning fellow, and I felt compelled to open a bottle of champagne to celebrate our collaboration. ”
"Xie Lu Xie, but I need to rush back immediately after signing the contract, my partner is waiting for my good news. Chen Tian apologized, "So I can only have one drink, and I have to keep my stomach to celebrate with him." ”