Chapter 393: Negotiation (I)
Buyout and sharing are the two ways to choose between the current system and the cinema chain, each has its own advantages and disadvantages, and it is also divided into guaranteed and non-guaranteed shares.
Obviously, Han Yi is talking about a share without a guarantee, and he wants to see how far his film can go now.
Tom Oldenberg knows the pros and cons of guaranteed royalty, and he approves of the quality of this film, but quality and box office are not necessarily word-of-mouth, especially for genre films like this: "How to share? ”
Distribution manager Jon Filtimmel stood aside and looked at Han Yi, dividing this is also the way producers and theaters choose to share today.
Producers often agree on the proportion of sharing with the theater chain before the release, and then subtract the fixed expenses from the box office during the entire release period to obtain the actual box office revenue, and then divide it according to the different proportions of different periods of release.
Jon Fittimmel wanted to know if Han Yi was confident in his film, or if he wanted to gamble on luck before proposing the idea of sharing, because now more people will propose a guaranteed share, and a simple share is rare.
The proportion of the guaranteed share, the proportion of the share is definitely not as good as the bottomless share, but relatively speaking, it will be a little more stable, looking at the very confident teenager in front of him, Jon Filtimmel thinks that he should be very confident in his film.
But the actual situation is that Han Yi is gambling, he just wants to gamble on luck, and he is very dissatisfied with the price of the buyout.
Han Yi thought about it, the global box office of Hollywood movies will only account for about one-third of the film revenue, and some even can't 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 and video sales are the main ones, followed by box office revenues that can only be released on TV after nine months.
Generally, film DVDs, box office, and television will account for the vast majority of film revenue, while films with popular peripheral products do not belong to this list, such as Harry Potter and some animated blockbusters.
This movie obviously has no peripherals to sell, that is, according to Han Yi's calculations in his heart, the final income of this movie may be able to reach 300 million.
Han Yi doesn't know the specific share of the film and these various incomes, but according to the normal situation he knows, combined with the net income ratio of Lionsgate at the end of the last movie "Buried Alive", this movie may bring more than 200 million income to Lionsgate.
This calculation may not be accurate, but Han Yi feels that it should not be too different.
With this calculation, Han Yi has the low price in his heart, not to mention that he can still do more work on advertising now!
"The box office is only 10 million cents!"
Tom Odenberg did not speak but motioned for Han Yi to continue, and Han Yi smiled:
"If the final film has a global box office of more than 10 million, it will be divided into 10 percent; If you can pass 20 million and 15 percent. For every 10 million on top of the 20 million, I will divide it by 3 percent until it reaches 100 million dollars, and if the box office exceeds 100 million dollars, then the excess will be divided into 40 percent. ”
Jon Fittimmel, who had been looking at Han Yi, sneered, he already had the idea of driving Han Yi, an Asian who didn't know what to do, out: "Isn't it a good habit for no one to sue you for being too greedy?" The box office is directly divided, Han, are you a charity that we Lionsgate is serving you? ”
As Jon Philtimmel said, Han Yiti'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 Odenberg said coldly.
"I just want box office revenue, and I don't want any revenue from DVDs, TV, and soundtracks. I think the three of you also know the percentage of box office revenue, and even a film that doesn't make it to the U.S. can make tens of millions of dollars in these channels. Now I'm giving up this part of the proceeds, as long as the box office share, if you can't agree to it, sorry! ”
Han Yi shrugged, he didn't want to put the initiative in the hands of Lionsgate.
Compared with the final box office, the specific net income is that Han Yi, an Asian, cannot grasp the specific situation at all, even if Lionsgate promises him to share 50% of the net income with him, Han Yi 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% of it is not real net income.
Han Yi has seen too many such examples, and these examples have slowly become the norm, and finally become the famous Hollywood accounting loss law.
The law of loss is most often seen in blockbuster films distributed by large companies, and although these Hollywood blockbusters can generate considerable revenue, these films 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, Han Yi's impression of "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 Hollywood studios, proposed to share in other forms or like Han Yi before proposing to share before net income, but not all stars and creators have such a right to speak.
Obviously, for Han Yi's mentions, several people were a little moved! (To be continued.) )