Chapter 528: Box Office Sharing
Du Xinghe knows that Lin Jianguo is right, the film market in this plane is more prosperous than the record market, and the five major cinema alliances can blow up the entire Chinese record industry if they pull out one at will.
In this plane of China, almost every family will go to the theater to watch movies several times a week, and it is precisely because of such a huge demand in the market that the development of the Chinese film industry in this plane is extremely fast.
In terms of geographical division, the region where each cinema alliance is located has a very large film industry chain, and although Xiangjiang has the title of "City of Film Pearls" in this plane, it is not the only one.
Almost every one of the five major cinema alliances has a status similar to that of the film capital of Hong Kong. For example, in the second largest cinema alliance, the Midwest Cinema Alliance, Xining, which is known as the birthplace of China's western films, is an important film industry town in the western region, and 70% of the films released by the Midwest Film Alliance are produced by Xining.
Similarly, Changchun, a film city in North China and also known as the Northern Cinema Alliance, is also a city with a high density of film industry, and the annual output of films is not much less than that of Xiangjiang.
Several cities in the Yangtze River Delta region in the East China Cinema Alliance have mature film industry systems, with more than 500 films produced every year, and the number is even more than double that of Xiangjiang.
At present, the Southwest Film Alliance, which has a weak foundation in the domestic film industry, is also developing rapidly. A bunch of movie cities with Chongqing as the core are rushing forward.
In short, film companies around the country will spring up like mushrooms after a rain every year, but the next year will be like a cut wheat, many small film companies will die down, Du Xinghe remembers from a magazine report that the average life span of domestic film companies is only about 3 years, and the average film companies can not last for three years, either because of losing money and going bankrupt, or will be acquired by large film companies, and it is difficult for new film companies to gain a foothold in this cruel competition.
Although the current number of cinemas in China. The scale of the cinema alliance is still increasing day by day. The market demand is also getting bigger and bigger, but because the number of films shot is growing faster, more and more films are made and they are even approved to get the right to screen. still can't squeeze into the alliance theater to meet the public. It had to be played only in some private theaters. Or contact some relationship theaters to play it yourself, this kind of movie can be imagined to be sure to have no box office.
But as long as it can be filmed in the screening plan of the theater alliance, the box office of that film is basically guaranteed. As long as it is not an amazing film with a bad reputation, it can get a lot of money in terms of box office revenue.
Usually if a film wants to enter the cinema alliance for screening, it must first get the broadcast rights of the film, and then go to the target theater to apply for filming, and then the cinema alliance will have a special team to review whether the film is suitable for screening in their alliance theaters.
Of course, this kind of promotion also requires a promotion fee. This promotion fee is not black money, but a legitimate alliance film fund fee, which does not need to be paid immediately by the film distributor, but will be deducted from the box office revenue of the film and included in the film fund of the cinema alliance. This film foundation operates independently and provides dividends to the franchised theaters in the cinema alliance every year, which is a participatory dividend for the franchised theaters in addition to box office revenue.
Due to the strong concept of territorial protection in the major leagues, it is rare for a film to be released at the same time or sequentially in two theaters. To use an inappropriate analogy, this is like the situation before the introduction of imported blockbusters in China in the early 90s, when in order to protect the national film industry, and because of ideological differences, no matter how exciting, good-looking, and box office blockbusters in Europe and the United States were impossible to be imported in China. Even if the introduction of blockbusters began to be gradually liberalized, the number of domestic blockbusters introduced every year is very small, and this is to protect domestic films.
The same is true of the competition between the various cinema alliances in this plane, because the region where each alliance is located has a relatively independent and systematic film industry, and the film companies in the region will basically choose the local cinema alliance to screen the film, so a relationship of interdependence and mutual protection has been formed.
This form of protection is very similar to the national film protectionism of the previous plane, which is regional film protectionism. Only a few films, for various special reasons, such as those led by the Zhang family, can be released at the same time in different cinema alliances, and the box office of such films has always been explosive, several times that of other films, but in the annual box office statistics and historical box office statistics of various cinema alliances, this kind of film only records the box office of their own alliances, and will not sum up a total box office.
In the comprehensive box office ratio of the five major theater alliances according to authoritative statistical agencies, this kind of movie will be singled out, and it will not be compared with normal movies, because the box office of this kind of movie is often more than 10 billion, and ordinary movies can't compete with it at all.
In recent years, some large Western film companies have seen the huge cake of China's film market and are also trying to enter the Eastern market.
However, there is still a tacit rule between the five major cinema alliances, that is, after a Western company's film is introduced in one cinema alliance, other cinema alliances will not show the film again, and even other films of this film company will not be screened in the future.
After foreign film companies understand China's market, they usually abide by the local rules of the game in China, choose only one to cooperate, and will not waste their efforts to cooperate with other theater alliances.
Chinese films are not subject to this rule if they are produced in the West, and Chinese producers are free to choose Western companies that are willing to import their films for overseas distribution.
For example, Universal Pictures in the United States has been a partner of the East China Cinema Alliance. However, if Universal Pictures values the films produced in the Xiangjiang area within the Southeast Cinema Alliance, then the film company in Xiangjiang can sign an overseas distribution agreement with Universal Pictures on its own, without looking at the meaning of the Southeast Cinema Alliance, as long as the overseas distribution does not affect the release of the film in the Southeast Cinema Alliance.
Although the company is small and has just started, it has integrated the two major businesses of production and distribution, and the first horror film can get the classification screening right in the Southeast Cinema Alliance, which is enough to show that this company is still a bit of a way.
Some film companies have been fooled into making good movies, but they can't get the screening rights of the alliance cinema chain at all. The fate of this kind of film would be very tragic. VCDs don't necessarily sell much, and other Asian countries usually don't bring in Chinese non-league films, so they don't generate overseas box office, and they have to be sold to private TV stations. Earn a small royalty to make up for the investment. It's a mess.
As long as Lamb Pictures has a way, the filmed film can get the broadcast rights of the Southeast Cinema Alliance. Then their films will hardly lose money.
The distribution of box office revenue of the five major cinema alliances in this plane is slightly different, but the general income of film companies is still very transparent, and it is very similar to the distribution of box office revenue of Chinese films in the mature period of the previous plane.
Du Xinghe has several friends in the previous plane, all of whom are practitioners in the film industry. I have a good understanding of the situation of Chinese films in the previous plane and the distribution of the box office.
In the previous plane, if the ticket price of a film is 100 yuan, after it is sold, 5% of it, that is, 5 yuan, will be included in the special fund of the National Film Development Special Fund Management Committee, and this fund will eventually be fed back to the cinema, so as to encourage investors to invest in China's film infrastructure.
After that, the business tax of 3.3% will be deducted, which is 3.3 yuan.
The remaining 91.7 yuan will be divided between the theater (theater chain) and the producer and distributor.
As for how to divide these families, it is also a flexible relationship.
Under normal circumstances, theaters and theaters will be divided according to the strength of the film, according to 57% to 62%, such as Zhang Yimou, Feng Xiaogang and other directors of blockbusters, theaters can only get the lower limit of this ratio of 57% = 91.7 yuan * 57% = 52.27 yuan.
Among them, the theater organization is 7% on the surface, but in order to expand the market share and attract theaters to join, the theater will actually be divided between 2% ~ 7%, generally 5%, that is, 91.7 yuan * 5% = 4.59 yuan.
Above, that is, the theater is divided into 47.68 yuan, and the theater alliance is divided into 4.59 yuan, totaling 52.27 yuan.
The film company's production and distribution will be divided into 38%~43% according to the strength of the film, and if you take Zhang-Yimou Feng Xiaogang's movie as an example, the film company will divide 43%=91.7 yuan*43%=39.44 yuan according to the upper limit. Among them, the issuer generally divides 5% = 91.7 yuan * 5% = 4.59 yuan.
The above is the film company, that is, the producer, is divided into 34.85 yuan, and the distributor is divided into 4.59 yuan, totaling 39.44 yuan. If the producer and distributor of the film is a company, such as a large film company like Huayi, then they will take all this part of the money, accounting for about 40% of the face price, that is, 40% of the total box office.
In the previous plane, if it is not the work of a big director or a strong blockbuster, the proportion of the film is even smaller than that of medium or small productions, and the film company generally only gets about 35% of the total box office. After deducting taxes, generally one-third of the total box office of a movie is the income that the film company can really recover from the box office.
Other derivative income, such as overseas copyrights, film and television product sales shares, TV station copyrights, peripheral goods, etc., this kind of income can generally reach more than 15% of the movie box office, and some derivative movies that do well, such as cartoons, then this kind of income is higher than the movie box office.
In the later stage of development, in the past few years, Du Xinghe has traveled through the past few years, and the income from placement advertising and advertising placement in some large-scale zuò has been very considerable, and some films have relied on this part of the income to balance their income and expenditure even before the start of filming, and the bulk of other income, such as the box office, is pure income.
In the previous level of China, investing in making movies is a very high return on investment, so a lot of hot money has poured into the film industry, which has given birth to a prosperous scene in the Chinese film industry.
In the era before Du Xinghe crossed over, the development speed of Chinese films in that plane was compared with this plane. is not far behind, although it has not grown much in film technology, but the scale of investment is not bad at all.
Of course, due to the influence of some social atmospheres in the previous plane, the film investment in the previous plane also has a very deformed side. Unlike this plane, the investors of film investment, in addition to making public welfare films and art films, as long as they invest in making commercial films, they must all be for the purpose of making profits and making money without exception. In the last plane, some hot money poured into the film industry to invest in making movies, and it was indeed not for the purpose of making profits. It's for the purpose of picking up girls or getting kickbacks.
There is a very strange phenomenon in the previous plane. is obviously a female star who is box office poison, as long as it is a movie that she appears, almost without exception it is a fiasco at the box office and word of mouth, but there are still people looking for her to continue filming. This is obviously the person behind the push. I have to make this female star popular.
In the entertainment industry of this plane. Although there are also cases where they spend money to support actresses, the people who support people behind this plane spend their own money. They are willing to burn money to support people, and this is understandable. But in the previous plane, the boss behind the boss generally spends money to support actresses, not his own money, so there is nothing to say about this.
There is also a very deformed situation in the film investment of the previous plane, that is, some large companies and even state-owned enterprises and institutions and even government organizations invest in making movies, they only care about investing money, and they don't care about what the movie is, let alone the box office, because as long as they invest this money, they will reach a gray agreement with the film producer and get a rebate, as for whether they can make this investment profitable in the end, they don't care, they just care about getting the money themselves.
For example, if a bank invests 10 million in publicity and distribution resources for a crew, not to mention anything else, the investment director himself must first get a rebate of 2 million, as for what the movie will sell in the end, and how much money the bank can recover, it doesn't matter, his own pocket is bulging. The reason why there are many big bad movies in the last plane that I know from the beginning of the project establishment is that they will definitely lose money, and there are still investors who spend money to shoot them, and the rebate is the crux of the problem.
In this new dimension, although the hot money in the film industry is more vigorous and huge, because of the highly transparent audit mechanism and almost all private capital speculating on movies, there will hardly be a big bad movie that knows how to lose money and still make a hard shot.
There are some big-scale movies in this plane, and it is also possible to encounter a situation where the box office is stranded, unable to meet expectations, and even lose a lot of money, but generally in this extreme situation, the film company will self-examine to find the reason, and will definitely find the person who bears the black pot and let this person be responsible. If it is analyzed that it is the reason for the actor (usually the leading actor), then the actor will be labeled as a box office poison, and he may not be able to make a big show in a few years, and if he wants to rise again, he needs to redouble his efforts and the favor of good luck. In short, the film industry of this plane is even more cruel than the previous one.
The box office revenue of this plane film company is slightly higher than that of the domestic film sharing model of the previous plane.
The ticket price of movies in this plane is usually 50 yuan, and small films or graded films will be a little lower, with 25 yuan and 30 yuan, and super blockbusters will increase their prices, but the maximum will not exceed 100 yuan.
Take "River Resentment" produced by Lamb Pictures as an example, when this film was released in the Southeast Cinema Alliance, the ticket price was set at 40 yuan, which is usually set for classified horror films.
How to divide the 40 yuan? First of all, the film foundation of the Southeast Cinema Alliance divided 3%, that is, 1.2 yuan. (Because it is located in the southeast region, where the film industry is the most developed, the film infrastructure is the most complete, so the film fund share ratio of the Southeast Alliance is the least among the five major theater chains, only 3%).) Other film funds such as the Northern Cinema Alliance and the Midwestern Film Alliance should be divided into 5%, the film fund of the East China Cinema Alliance will be divided into 4.5%, and the film fund of the Southwest Regional Cinema Alliance, which is backward in film infrastructure, will be divided into 6%, which is twice that of the Southeast Alliance. )
After the ticket price of "River Resentment" is discarded with 3% of the film fund's share, 3% of the business tax will be deducted, which is also 1.2 yuan.
The remaining 39.6 yuan will be divided into 50% of the total ticket price, that is, 20 yuan, according to the proportion of graded horror films, and 4% to 1.6 yuan will be shared by the Southeast Alliance, an organization that promotes the development of local films.
The last 40% - 16 yuan was distributed to Lamb Pictures.
"River Resentment" has a total box office of 6 million, which is a decent result in a small-budget horror movie, and if you look at the box office income, Lamb Pictures will lose money, because the box office income can only bring them 2.4 million before tax. Fortunately, after the release of films in this plane, there will be a large amount of other income.
For example, VCD disc revenue, which is usually a very important source of income for sharing horror films. Due to the fragmentation of the five major cinema alliances, after a movie is released in one theater, other theaters cannot be released, and audiences in those regions can only watch DVDs or TV stations if they want to watch it. Television stations usually broadcast very late, and it is generally not until a year later that they get the broadcast rights, so watching movies on DVD has become an important way to watch movies.
In particular, some horror movie lovers who can't enjoy movies released on other leagues in theaters will buy VCDs of these movies to collect. There are also hundreds of thousands of rental disc shops across the country, which will also buy genuine DVDs for rent. This will make the audio-visual products of the film form a large part of the income.
Some movies are not satisfactory at the box office, but the reputation is very good, after going offline, the sales of the disc will be extremely hot, and the VCD sales share is even higher than the theater box office share!
There are also some suitable for the whole family to watch animated movies, children like it very much, parents take their children to the cinema to watch the movie, and then buy a video disc to play at home for their children, this kind of movie in the later stage of the film and television products income is also very high.
Some good horror films will also get a good overseas box office, such as Thailand, Malaysia and other Southeast Asian countries, especially like to introduce Chinese graded horror films, local residents because of the strong influence of Han culture, they are very accepting and love Chinese horror films, in these countries, horror films can usually have a good overseas box office share.
However, looking at the investment report of "River Resentment", it seems that they have not sold overseas copyrights, which may be related to the fact that the production cost of the film is too low, and the protagonist is really not famous and has no overseas appeal.
"I'm talking to you, do you hear me?" Seeing that Du Xinghe had been standing by the window and reading the information silently, Lin Jianguo snuffed out his cigarette and beckoned Du Xinghe: "You sit back, I won't smoke, let's shoot this film for five million, what do you think?" ”
Du Xinghe smiled helplessly, thinking that this uncle knew that he didn't like to smell smoke, and he always smoked in his office, but this time it was not bad, he smoked half of it and pinched it, which is also good for his own body, you know, when the second half of the cigarette is smoked, the content of various tar toxins is several times higher than the first half of the cigarette. Smoking half of the cigarette is pinched off, which has certain benefits for alleviating the health crisis.
After Du Xinghe sat back at his desk, Lin Jianguo continued to say to Du Xinghe: "We will pay a maximum of 5 million now, and if we want more, there will be a lot of pressure on our own finances." We don't have much money in our hands now, if you want to invest in the auction with some more funds and share a lot of box office, then you can talk to them first, and wait for another month or two, Yiyan's "Flower Heart" will flow back, and we will have plenty of money on hand. ”
Du Xinghe interrupted: "Don't do it so much, let's invest 5 million is the limit." The film itself didn't cost much money to make, I wanted to shoot this to try the water of the film industry, and I wanted to make money from this movie. This is the first movie invested by our company, just familiarize yourself with the process, wait for better ideas in the future, let's increase investment in filming, and then want to make money, now let's learn first. ”
Lin Jianguo saw that Du Xinghe had this kind of thought, and he was much more down-to-earth.
There is no doubt that Du Xinghe is a genius in the music industry, making zuò records, how much money Du Xinghe is willing to spend on it, Lin Jianguo will feel reliable, because he will definitely be able to earn it back, but making movies is different. (To be continued......)