Chapter 351: Cinemas all start from the theater
Generally speaking, the producer of the film does not necessarily carry out the distribution business, after all, this is the category of grabbing jobs for other distribution companies, and this is also a very professional work, if there is not enough talent in this area, the distribution business is not easy to carry out.
The producer of the film only needs to complete the production of the film, but when it comes to the work of the distributor, the distributor has to make copies, apply for the key, schedule the schedule, mail the key to the theater, do all kinds of promotional activities, buy advertisements, negotiate box office sharing, sign contracts with theaters, and so on.
Because of professional reasons, all small companies in the Korean film industry will not touch the distribution of this cake, firstly, they do not have such great strength, and secondly, they are afraid of being targeted by other companies in the circle, after all, this cake looks delicious, but it is not so easy to mouth, and only large production companies like NEW and CJ Entertainment generally have distribution business now, so small companies don't have to think too much, and Ahn Ansheng is good as a producer.
In fact, as early as when he founded JHJFilm Film Production Company, Jung Hyuk-jae had already considered the relevant matters of distribution, and at that time, it was because the conditions and strength were not very mature, so this idea was first left behind, and now with the conditions becoming more and more mature, distribution-related matters have been put on the agenda.
In fact, in South Korea, there are many companies like JHJFilm that want to do distribution, but in the end, there are only one or two companies that can survive in this cannibalistic circle every year, and the most important thing is that as a distributor, you can catch a good movie, promote it well to achieve a high box office, and finally the more profit belongs to the distributor. CJ Entertainment and Lotte Films are two of the strongest distributors and producers, most notably because of the cinema chain behind them.
Lotte Films, not to mention, is a subsidiary of a department store under the Lotte Group. As long as there is a Lotte department store, there must be a Lotte theater, and the time for the Lotte department store to start the theater project is actually not long, from 1999 to the present, there are a total of 12 theaters nationwide, 98 screens.
In contrast, CGV, a subsidiary of CJ Entertainment Group, which is the aircraft carrier of the entertainment industry, has a theater chain consisting of 20 theaters. CJ Entertainment's capital is much stronger than that of Lotte Films.
The theater is not a short-term investment, its investment income is returned for a long time, almost five to seven years, but as long as the right place is chosen, then the income of this item is a fairly stable growth point, how can Zheng Hyuk Jae not pay attention to these, as early as last year, Zheng Hyuk Jae had the idea of buying several theaters, but because of the funding gap and other aspects at that time, they could only give up.
However, this year's situation is different from last year, the most important thing is because of the income brought by the offline of "The King's Man", which will only depreciate if it is not invested in the hands or put in the bank. So only the money invested is the money earned, and Jung Hyuk-jae naturally understands this, so his eyes were on the theater early.
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"Jung Hyuk Jae, you can take a look at the decoration here, these are all just renovated last year, and our theater has a total of eight halls, each hall has more than 150 seats. The two largest halls are the two IMAX theaters that are one of the few on our Chungmu Road, and one can accommodate 320 spectators. The other one can also accommodate 280 people, so our theater is definitely profitable! ”
The theater manager and an agent who led the way in front of him explained to Jung Hyuk-jae with a smile.
Hearing the words of the two of them, Jung Hyuk-jae just nodded slightly and did not speak, his eyes looked around at the decoration style and popularity around him from time to time, and he understood a little more in his heart.
In fact, as long as it involves the transaction of theaters, this is not a small amount, and generally speaking, no one will sell the theaters in their hands. After all, as long as you manage it for a few more years, you can bring yourself a stable income, and it is rare to trade theaters directly, and it is generally necessary to choose a good location to build a theater and rebuild it, rather than buying it from someone else.
Jung Hyuk-jae originally thought the same way, but later heard that a certain young man in the circle of the rich second generation was ready to sell the theater chain in his hand. Hearing the news, Jung Hyuk-jae immediately came to his senses and drove directly to the location of this theater, near Chungmuro Road.
This theater is built at No. 125, 4th Street, Chungmuro, the location is quite good, whether it is a bus line or a subway line, you can easily find this theater here, especially by subway, you can directly enter from the theater exit of Zhongmuro Station of the subway, which is quite convenient, but it is strange that this Saturday should be the busiest time for the theater line, but when you come here, you can see the scene that you expected.
Seeing the doubts revealed in Jung Hyuk-jae's eyes, the agent on the side quietly came to Jung Hyuk-jae's side and said to him at this time, taking advantage of the theater manager's inattention: "Actually, this theater specializes in art films, and you also know art films, there must be a generation gap between them and ordinary audiences, and this generation gap is still very deep, so under normal circumstances, only some loyal art film audiences will come here, and there are not many people on Saturdays and Sundays." ”
In this way, looking at the sparse moviegoers in the theater, as well as the literary and artistic young people leisurely reading the newspaper in the coffee house on the side, it is really not the kind of theater where the family reunites together to watch a hearty commercial blockbuster, thinking of this, Jung Hyuk-jae has already estimated the price in his heart.
"Is that so?" Jung Hyuk-jae was surprised when he heard it, he didn't expect that there is still a rich second generation who likes art films, and the theater dedicated to art films has been built so big, is there really money and nowhere to spend? But what makes Jung Hyuk-jae even more strange is the agent's attitude towards him, these inside things should not be told to him!
The overall condition of this theater located in Chungmuro Road is still very good, but I don't know how the price is?
With the questions in his heart, Jung Hyuk-jae came to the conference room along with the theater manager and agent to start the next negotiations.
From the very beginning of the negotiations, the two sides were at an impasse, and the price given by the theater side here was somewhat inflated. Jung Hyuk-jae couldn't accept it. Although the geographical location of this theater or the scale of the theater are very good, it always takes a transition from an art theater to a commercial film theater, and there are many theaters on Chungmu Road. Therefore, taking over this theater Jung Hyuk-jae also needs to take a big risk.
In fact, not only Jung Hyuk-jae saw it, but the manager of this theater didn't see it, but the positions of the two sides are different, so naturally what they insist on is also different.
"Five and six billion! This price couldn't be lower. The manager of the theater shook his head and said resolutely.
Hearing the numbers coming out of his mouth, Zheng Hyuk-jae couldn't help but smile, "Let's not talk about whether it's worth buying this theater for 5.6 billion, let's calculate an account first, I have taken a fancy to a newly opened shopping plaza in Cheongdam-dong, because it is a newly built shopping plaza, so I will wrap up one floor." The annual cost is not high, and the cost of building a movie theater of similar size is only 5 billion, if you still insist on 5.6 billion yuan, then I can also say that we can get together and disperse. Jung Hyuk-jae also shook his head.
After hearing Zheng Hyukzai's words, the manager of the theater was blindsided, "This can't be said like this, after all, this place is close to Zhongmu Road, and such a geographical location and price of 5.6 billion yuan are already very cheap." ”
"Chungmuro, huh? You can check out the new shopping mall. Take a look at where it is in Cheongdam-dong. Jung Hyuk-jae retorted, "And I also need to take a certain amount of risk from art films to commercial films." Besides, what if you get close to Chungmuro? The film market here should have been carved up by other established cinemas and theaters, right? If this is not the case, I guess your boss will not sell the theater in his hand, right? ”
Jung Hyuk-jae said with a smile, but the face of the theater manager in front of him couldn't help but change slightly, as if he was told by Jung Hyuk-jae's words.
If it weren't for the difficulty of transformation, why would his big boss sell the theater in his hand, in fact, the suffering of transforming from an art film is not as big as imagined. But the first two years must have been operating at a loss, perhaps because the big boss on his head was unwilling to continue to manage, so he thought it would be better to sell it sooner. After the news broke, it was not that there were no buyers who came to consult, and people from CJ Entertainment to Lotte Film and Television came to inquire about the price. But in the end, they were scared away by the price of 5.6 billion, if this is the price, it is better to build a family by yourself, although it takes time to wait, but it is better than this price that scares people to death.
"Zheng Hezaixi, this price is set by our boss, and I can't boast about Haikou as a part-time worker, if you don't do this, I'll tell our boss if you quote a price, how about it?" The manager of the theater was rarely 'smart' and said to Jung Hyuk-jae with a smile.
"That's fine, four or three billion, if you can, then let's continue to talk about the next detailed terms......" Jung Hyuk-jae said a number in his mouth.
"Jung Hyuk Jae, isn't it...... The price is a bit too low, isn't it? "When the manager of the theater heard the figure of '4.3 billion' from Jung Hyuk Jae's mouth, he was frightened on the spot, if his boss can agree to this price and he is not crazy, then the world must be crazy.
"You go and tell your boss, although I am not the last person to inquire, but I must be the most sincere buyer."
With doubts in his heart, the theater manager took his mobile phone to the door of the conference room and dialed a string of numbers......
Inside the house, Jung Hyuk-jae was drinking tea quite leisurely, but because the negotiation time was too long, the tea was a little cold. After almost five minutes, the theater manager walked into the conference room with a dull face, looked at Zheng Hyukzai and said, "Five and two billion, this price can't be lower." ”
"Four and three billion!" Jung Hyuk-jae bites this number to death, although he doesn't know what the price from other buyers such as CJ Entertainment and Lotte Film and Television is, but judging from the current situation, it seems that the price he paid is not the lowest, otherwise, it is estimated that the price negotiations between the two sides would have collapsed long ago.
Hearing that Jung Hyuk-jae bit this price to death, the theater manager's face was not good-looking, "Five .2 billion is the final price given by our boss." ”
"Really?" Jung Hyuk-jae shrugged his shoulders when he heard this, "Then I have to say sorry to your boss, and when I open the movie theater in Cheongdam-dong, I hope to invite your boss to participate, then I will leave first." With that, Jung Hyuk-jae picked up the coat on the back of the chair and was about to get up, but at this moment, the manager of the theater suddenly stopped him.
"Five billion, everything in the theater is up-to-date, and the venue is also the largest one in the vicinity, as long as the follow-up operation is good, this is definitely the best choice for you to create a theater."
Hearing the theater manager's retention, Jung Hyuk-jae stopped what he was doing, but he was still a little dissatisfied with the price, and it would be a little high.
"Since you've lowered a little, then I'll also mention some, four and a half billion."
The manager of the theater on the side was stupid, he didn't have such a play, shouldn't he agree to his offer at this time? Why do you still insist on the price of 4.5 billion? The negotiations reached an impasse for a while, one insisted on 5 billion, while the other insisted on 4.5 billion, and there was a difference of 500 million in the middle, and the role of the agent was shown at this time.
"The potential value of this theater on Zhongwu Road is still there, although there must be a relatively large publicity investment in the early stage after buying, but the location and environment are very good, don't you say?" The agent said as he looked at Jung Hyuk-jae.
"Your boss also wants to make a quick move, and the competition in the theater is indeed a bit fierce, so let's take a step back, what do you think?" The agent said and looked at the theater manager to the side.
"Four and eight billion, let's take a step back, this price should be acceptable to both sides, right?"
To be honest, there is still a gap between this price and Jung Hyuk-jae's psychological expectations, but it is not bad, and the environment and atmosphere here are really good. In particular, Jung Hyuk-jae's concern is that Chungmuro, the 'holy land' in the minds of filmmakers, is nearby, and it is only a few minutes' walk from the door, which is particularly convenient.
"If you think the price is okay, then let's sign a contract." Jung Hyuk-jae and the manager of the theater both nodded.
As for how to get through the difficulty of theater transformation, Jung Hyuk-jae already has an idea in his heart, and he doesn't believe that the premieres of "Monster of the Han River", "Lao Qian", and "The Trouble of Beauty" will not attract popularity if they are all held here......
(To be continued.) )
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