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Although Bill Rothes is just one of many obscure agents within the CAA, his knowledge of the industry is no match for Murphy's newbie in any case.

Murphy has also seen Bill Rothes' abilities and believes in some of his words.

He turned to look at Bill Rothes and asked curiously, "Tell me about it." ”

"As you just said, the six major distribution companies will charge up to 30 percent of the distribution fees for the films produced by their studios or subsidiaries, which is different from the fact that they distribute external films including publicity and distribution fees, which is a pure commission that does not include publicity and distribution costs."

Murphy nodded, these are not secrets in the industry, distribution means distribution commission, and the big studios usually charge 30% of the distribution fee for the films they invest in.

Of course, they sometimes charge a 30 percent commission for the distribution of other small companies' films, but basically including the cost of publicity.

Under normal circumstances, in the case of agency distribution, that is, a film produced by an outside investor, in order to ensure that the film has a large enough audience, there will often be fierce negotiations with the big studios on the percentage of the distribution commission, but usually if it is not strong enough, it will generally compromise between 15% and 18%.

The publicity fee for this type of issuance is calculated separately.

This is a strange phenomenon from the superficial distribution rate, as the distribution company charges a high distribution fee for its own films, and the commission ratio for foreign films is much lower.

"According to Hollywood's accounting conventions, each film produced by the six major companies will set up a separate shell company for each film they produce......"

Bill Rossi was quick to explain this, "In this case, 30 percent of the issuance commission will be paid to the publisher as a cost item for this external entity, which is essentially the same company." ”

Murphy is not stupid, and immediately understood, "The purpose of this is to make the production company pay all kinds of large expenses for the film, so that it will be difficult for the production company to show profits, even if the production company still has a surplus after paying the distribution costs, but the screenwriters, directors, actors, and other film distributors will never see the profits, except for the deficit on the financial statements, they will not see anything?" ”

"Bingo!"

Bill Rothes raised a hand and snapped his fingers, "And it's a legal method, even if it goes to court, it's hard for a litigant to win against the company." ”

Murphy looked up at the roof of the car, and the circle was clearly more complicated than he had imagined.

Thinking that Murphy didn't believe it, Bill Rossis then said, "I have a ready-made case here. ”

Murphy was already intrigued, "Can you tell me about it if it's convenient?" ”

It's a rare experience.

Despite the harsh conditions offered by various distribution companies, the evaluation and attitude of the film made Bill Rossis have higher expectations for Murphy.

He thought for a moment and said, "Last year, Disney's Broadway Pictures released a film called 'Sixty Seconds Rush', which was produced by Jerry Bruckheimer's studio controlled by Disney. ”

Murphy nodded, pricked up his ears, and listened very attentively as if he had never dropped his film production zuò study.

With the experience accumulated now, we may be able to avoid big pitfalls in the future.

"The total global box office of this film is about $240 million, and Disney should have received less than $110 million from it."

While driving, Bill Rothes recalled the relevant statistics he saw inside the CAA, "After the box office was shared, Bowei Pictures began to deduct various expenses from it, including more than $90 million in publicity and distribution expenses, including $13.4 million in advertising fees, $13 million in copy processing, and $600,000 in insurance, shipping, customs clearance, check redemption and local taxes, so that the box office revenue left was only about $10 million." ”

Bill Rothes shrugged, "And then, start splitting the accounts with the investors, the producers and the cast — after the theatrical release, the $103.4 million film showed a deficit of about $90 million." ”

"Except for the numbers set by the industry unions......," Murphy has an impression of the film, and the main character seems to be Nicolas Cage, "It's impossible for the actors, directors and writers to get extra shares." ”

Murphy sighed, "Only the distribution companies and the big studios behind them can make a profit without losing money under such a business model." ”

"Generally speaking," Bill Rossis nodded, "It also depends on the game between the actors, the agency and them, there is a lot of room for maneuvering, if your cards are big enough, the agency is strong, and they want to continue to cooperate, they will definitely divide some interests appropriately, and this circle can climb to a high position, and few will be stupid and waiting to be slaughtered." ”

He added, "A-list superstars like Tom Cruise and directors like Spielberg don't sign such contracts with production companies at all, and they ask for a share of the North American or global box office, not a share of profits, and the latter can legally do things in much more places than the former." ”

"It seems that if you want to work with a large company," Murphy said, "you have to be cautious about signing a share contract." ”

However, he added, "I'm still far from being looked at by a large company." ”

Bill Rothes said encouragingly, "As long as you can enter the mainstream film industry, you will soon have such an opportunity." ”

Murphy has never lacked fighting spirit, smiled and nodded, now it looks like there is still a long way to go, and he can always finish step by step.

Just like at the beginning, he had problems with even the most basic life, but now he has not seized the opportunity to successfully enter Hollywood and direct two films.

Although the second installment has yet to find a publisher, Murphy's confidence is growing.

On the third day after the screening, Murphy walked into the Fox searchlight, the company had made an appointment with him at the latest, and he didn't have a very good impression of Tony Guzmán, who was technically spared.

Of course, Murphy is not so narrow-minded as to have an opinion about Tony Guzman and Fox Searchlight because of this matter, and from the actual situation at this stage, he has to admit that for these small directors and small production rooms, the distributor is really a very high-end depository.

Unless he doesn't go through the theater channel and throws the film directly on the videotape market.

"Boss, as I understand it," said the female assistant in one of Lionsgate's offices to Miton Johnson, who was sitting behind his desk, "and he's been to Miramax, Morris Entertainment, DreamWorks...... A number of distribution companies have also made an appointment with Fox Searchlight to hold a test film meeting today......"

Milton Johnson's fingers twitched the table slightly, "It seems that he will not accept our terms lightly." ”

As one of the senior executives in charge of the distribution business of Lionsgate, he has watched the most horror movies in recent years, and the most impressive is "Chainsaw", which is not in his hands.

How can we win this film at the lowest cost, or use this film to create outstanding performance?

This is what Miton Johnson has thought about the most in the last two days.

It's okay to reduce the percentage of distribution commissions appropriately, but the young director's heart is obviously very big, which doesn't guarantee that Lionsgate will get the film. (To be continued.) )