Chapter 147: Hollywood-style ledger

The so-called Hollywood-style ledger means that the producer and the distributor unite to divide the profits of the box office with various expenses, and exclude investors and ordinary actors from the circle.

To put it in detail, after a movie makes a profit, the theater chain must first take its own share, and then the producer and distributor must first make some so-called adjustments, such as deducting the distribution commission fee and publicity fee or something, and then start to use the knife to divide the cake. The first to move the knife are big producers and big-name stars, followed by other qualified and important insiders, and then deduct the cost when they are done, and the rest are ordinary people.

In this process, the name of the distribution commission and publicity fee can be manipulated, as much as possible, of course, the producer and the distributor need to communicate. And after the producer and the big names moved the knife, when the cost is deducted, various places will come out, such as how much parking fees are spent, such as how much is spent on location rent, etc., in short, there are a variety of places on the ledger to spend money.

So when I went to zuihou, I was finally told when I was waiting for ordinary actors to share, but unfortunately, because the income and expenditure were just balanced, there was no share for you. The worse ones even simply told them that this movie is losing money, and there is no money for you to share, anyway, the ledger is there, and they are unwilling to check it themselves.

In a word, net profit sharing? Sorry, no net profit.

Therefore, don't look at Hollywood movies that are all kinds of big hits, but they either lose money or just recover their costs on the books, and less than 5% of the movies can make a profit every year. Generally speaking, film companies will still give some leftovers to ordinary actors, such as giving some rewards in private names, and they all belong to the kind of meaning, like Weinstein who generously took out 1 million, which is already an investment.

As for those film companies that are indefatigable, ordinary actors are helpless even if they know that there is something wrong with them, and a single individual cannot compete with a system, and this set of rules is deeply ingrained in Hollywood. Therefore, if ordinary actors really want to profit from the share, then they must avoid the trap of net profit sharing and strive to sign a contract for gross profit sharing.

The so-called gross profit sharing refers to the sharing before deducting the production cost, and even then, it is still necessary for the distributor and the producer to make adjustments - deducting the distribution commission and publicity expenses - before starting. Therefore, the statement of gross profit is not entirely accurate, and it should be shared in the general ledger of box office profits.

If you think that you can breathe a sigh of relief in this way, it is a mistake again, the people who share the cake are in descending order according to their status, and the first to do it is naturally the producer and the big-name star, and then the other qualified people, and it is also divided in the form of a percentage of the remaining profits. In addition, if ordinary actors want to get a gross profit share or a profit ledger share, there is another harsh condition, that is, the break-even point is higher.

To put it simply, the box office profit must be higher than the cost before it can be shared, and the higher the status, the lower the point, and vice versa. Woody, who was released in early April before? Allen's new movie called "Hollywood Ending" made fun of this, a third-rate director easily won a share of the box office profit ledger, but the premise is that the box office profit should be at least three to four times higher than the cost!

This is almost impossible, there may be a slight chance of a small investment and a high-grossing movie, and a large investment unless it is at the level of "Titanic", don't even think about it.

Therefore, under normal circumstances, the break-even point of an ordinary actor is enough to make people look up to it after the box office profit is twice as high, just like the total box office of "The Lord of the Rings" signed by Sean and the new line is 6. 500 million after that.

In the final analysis, Hollywood's distributors and producers are using information asymmetry to perfunctory ordinary actors, no one knows how much is used, and no one has the time and energy to verify. So Sean used the same method to put a new line, although he can't remember the specific box office, but over 6. The line of 500 million is certain, and it is the way to share the box office profit ledger, although it is impossible to get as much as he originally imagined, but the new line will have to produce some blood.

Of course, Frederick also contributed a lot, just being able to get a share of the box office profits when Sean was still only a little famous, it is enough to prove that he is excellent, and Sean can have a certain understanding of Hollywood-style account sharing, which is also due to him. Although this is in exchange for giving up part of the peripheral sharing in the future, looking at the partial peripheral sharing contract, the result will not be better than the net profit sharing. In addition, Frederick has set up a small loophole with his lawyer that can be renegotiated if necessary, especially when it comes to ...... The matter of image rights.

Even so, the new line will still set up all kinds of obstacles at that time, who makes Sean just a new star now? You must know that before the Oscar nomination, the new line always felt that it was inappropriate, and wanted to change a contract with him several times.

"It's going to be less than it actually is, but as long as it's not too much, don't worry about it." Frederick once said this to Sean.

It's very helpless and infuriating, but the due benefits are taken away by people by various means, but ...... That's the reality. So even if ordinary actors know that there is no net profit to share, they will still sign a net profit sharing contract, so they all desperately want to become famous, and after becoming famous, they will be able to share more and bigger cakes.

Similarly, Sean will set up his own production company, which may not be a winner-takes-all, but the more he holds the core capital, the more he has the right to speak, and if he can't become a producer, he doesn't want to get more, and he doesn't want to have a higher status, even if he becomes a rich man by relying on Google's shares.

Therefore, Vladimir's proposal is very suitable, as a producer, of course, you have to consider it from the perspective of the producer's interests and position, just ......

"Not for now," Sean shook his head after a moment of thought, "Is there any other way?" ”

Vladimir's brow never furrowed, and he became more and more confused about what he was thinking: "So...... We can choose to shoot in Canada, and the Canadian government will provide a certain subsidy for foreign filmmakers, and if a certain percentage of the crew is from British Columbia, the province will also provide a certain additional tax deduction, in addition to the digital special effects subsidy if the film's digital effects are done in Canada.

Of course, there are certain prerequisites for these, such as the funding comes from Canada, or the Canadian director, screenwriter, and one of the highest-paid actors is Canadian, etc. And the author of this script, while insisting on being the heroine herself, Nia? Ms. Vadallas is a Canadian, Greek. ”

At this point, he paused, then narrowed his eyes, as if he had guessed something: "This can reduce the cost by about 100 to 2 million, and as for other methods, you need to conduct a targeted analysis after calculating the cost in detail." ”

Then, Vladimir changed his words: "If you think that investment is not easy to get, you can try something else." ”

"Oh? What other sources of funding are there besides finding someone to invest in? Sean then looked inquiring.

"Let me put it simply, in general, there are two sources of funding for film production, investment and financing," Vladimir began to explain, "Investment naturally means that the production company invests by itself, or pulls other production companies to invest together to reduce risks, and finding investors to invest is also a kind of investment." Then there is financing, which is roughly divided into four types: general mortgage, pre-sale contract mortgage, delivery contract mortgage and difference mortgage.

The first is a very common way to borrow money, and the second is to pre-sell the distribution rights to the distributor, and then use the funds to make a film, but it requires a high reputation or sufficient connections; The third is to sell the movie to the studio in advance and use their money to make it, but there is basically no production company when the movie is released, and even if there is, it can only get a small piece of the cake, and it also needs credibility and connections. Fourth, an authoritative sales agent is needed to evaluate the possible sales revenue of the unfinished film, and the bank will evaluate the risk and determine the loan amount based on this market. ”

"It doesn't sound easy." Sean sighed and shook his head slightly.

"Actually, I have a suggestion," Vladimir smiled with an inexplicable smile, "if you have friends in the bank, you can first set up a production company with a certain amount of capital, and then use the future income of this company as collateral to go to the bank for the planning of the movie." After that, things are much easier, if the box office fails, and the bankrupt is also a newly established company, as long as you don't just abandon this shell company, it won't affect the ontology too much.

It's even easier if it's profitable, and you know the Hollywood-style ledger, where we can spend enough on the ledger and create a huge deficit so that we don't have to pay the actors. As for the bank loans, their money is not in a hurry, we can repay it with the income from the videotapes and DVDs, anyway, the ratio of these incomes is fixed and divided, and we will not be without money, so that after paying for five or six years, the bank can not only recover the loan, but also have a lot of interest. ”

β€œβ€¦β€¦ Is that okay too? Sean looked at him a little stunned, "The bank won't do anything else...... Like getting our production company blacklisted or something? ”

β€œweishenmeοΌŸβ€ Vladimir showed a strange expression, "Didn't the bank recover the loan?" You know, this is a long-term payment, as long as the DVD is sold, they can get the money, and the risk is low, which is exactly the profit model that the bank wants, which is equivalent to a win-win situation. ”

"Win-win?" Sean twitched the corners of his mouth, "But what do I think...... Does this sound like a debt? ”

"Debts?" Vladimir had a crying and laughing expression, "This is the most clever means of operating accounts, Hollywood production companies have generally done this, why is it that in your mouth, it is almost like a scoundrel on the street?" ”

"Universal behavior?" Sean pinched the bridge of his nose.