Chapter 320: 100 million publicity expenses

After playing a few balls, Zhang Changfeng moved his shoulders and returned to drink tea under the awning.

Xu Guangyi, general manager of the investment department of Penguin Group on the side, chatted with him a few words, talking and laughing, very harmonious.

Fang Xing met the two of them today who are both senior executives of the Penguin Group, and it is obviously not as simple as playing to come to the club so leisurely.

The other side.

Li Xueying is carefully wiping her club, and then putting on gloves and a sunhat, her movements are very skillful, and she obviously comes often.

Fang Xing walked over and chatted, "Mr. Li often comes to play golf?" ”

Li Xueying smiled and replied, "This is a way of socializing in business, and you have to learn it sooner or later." ”

Fang Xing glanced sideways in the direction of the awning and asked, "Is it just about movies today?" ”

Li Xueying smiled playfully and said, "I'm just responsible for introducing you to each other, and it's not my business to talk about anything." However, I do hope that we can work together in depth, and your two dramas have helped me a lot, so if there is anything I need help with in the future, just say it. ”

Fang Xing looked at her meaningfully, and said tentatively: "Don't tell me, you don't know anything about today's bureau. ”

Li Xueying raised her eyebrows and replied, "Okay." To give you a thorough explanation, in fact, your ark culture has always been the focus of attention in the investment bank. It's just that you don't have any signs of financing, and there is really no big funding gap in the company's operation. ”

Ark Culture's capital chain is too healthy, after all, the main revenue is songs and TV series.

These only require upfront investment, and the later stage is all about income.

Moreover, the songs and TV series produced by Fang Xing have ridiculously high yields, making the sustained profitability of Ark Culture very strong.

Fang Xing heard her say this, and probably guessed something.

In fact, even if she didn't say it, Fang Xing probably had a bottom in her heart.

After playing golf, the group returned to the club's VIP room and continued to drink tea and chat.

A few CEOs also lit cigars and tried to invite Fang Xing to taste them together.

Fang Xing waved his hand and refused, joking that he didn't plan to transform into a smoke voice for the time being.

Professional singers really shouldn't smoke in order to protect their throats, so this is a good reason.

After chatting for a while, Zhang Changfeng began to talk about the movie: "Fang Xing, I'll look at it like this." Your movie, I sent it to you. What are your requirements for distribution agency fees and publicity fees? ”

"This ......"

When it comes to money, Fang Xing is not good at opening his mouth.

Qiao Yinghong, as an agent, talked about money, and naturally took over the topic: "Mr. Zhang, when it comes to cooperation, then let's say whatever we want, and put it on the bright side one by one, and the numbers must be talked about clearly, and we can't drag the mud and water." ”

"Of course, it depends on what you think." Zhang Changfeng is not in a hurry, and now he is only willing to act as an agent for the release of "Spirited Away".

As for whether the cooperation can be reached in the end, everything is possible before the contract is signed.

In fact, if it was a normal cooperation, Zhang Changfeng would not have expressed his willingness to act as an agent at the beginning.

The reason why he showed his willingness to cooperate before the negotiation was actually optimistic about the Ark culture, not the movie.

Qiao Yinghong glanced sideways at Fang Xing, and then answered: "We hope that the publicity and distribution costs will be more than 100 million, and the issuer's account share will not be higher than 10%, this is not the opening price, it is the reserve price, and the boss doesn't like to pull on the numbers." ”

Zhang Changfeng frowned, shook his head and said, "It is unlikely that the publicity cost of 100 million will be issued. ”

The publicity cost is 100 million, which is indeed very high.

Typically, the cost of publicity accounts for 20% to 30% of the total cost of a film.

In other words, if the publicity and distribution cost is 100 million, the total cost of the movie is usually more than 300 million.

If the filmmaker wants to recover the cost, the box office usually needs to reach three times the cost.

In other words, the publicity and distribution cost of 100 million yuan must reach 1 billion yuan at the box office of the target movie.

Zhang Changfeng heard Fang Xing's expected box office of one billion before, and originally he just thought it was the ambition of young people to break into the big screen.

Now talking about the details of the cooperation, it is certain that the expected box office that Fang Xing said before really wants so much.

Zhang Changfeng didn't show an inappropriate expression, and said with a smile: "As far as I know, the production cost of your movie is only 30 million. ”

The investment is indeed 30 million.

However, Fang Xing gave the script and was responsible for a large part of the director's work, and he didn't get any money for this part.

If the production cost is really strictly calculated, it is more than 30 million.

According to industry standards, for a film with a production cost of 30 million, the publicity and distribution cost is usually only 10 million.

And the box office must break 100 million in order to recover the cost.

Of course, now that the movie is released in theaters, it can also be released on the video platform, and there will be revenue in the future.

Therefore, even if the box office does not reach three times the total cost when it is released in theaters, there is hope to return to the cost.

Even so.

A box office of 100 million is not easy for animated films.

Don't look at the movies that appear every year with a box office of more than one billion, but the public sees those movies that stand at the top of the pyramid, and under these movies, I don't know how many movies have been buried that have not been seen.

Therefore, the box office breaking 100 million is already an unattainable dream for many movies.

Qiao Yinghong, as an agent, of course has to speak for her company, and said with a smile: "Mr. Zhang, when our boss made a lot of contributions in the production of "Spirited Away", he did all the work of the screenwriter and director, but he didn't take a penny. If you want to calculate the production cost, it is not too much to convert it to 20 million. ”

With Fang Xing's current worth, it is indeed reasonable to spend so much energy on this animated movie, converted into 20 million.

After all, this amount of energy and time, if you put it into making music, can easily earn this amount.

Zhang Changfeng nodded, did not refute, and continued: "Even if the production cost is 50 million, the publicity and distribution ratio will not reach 100 million." I'm afraid that no domestic issuing company will agree to this request. ”

As the president of Penguin Pictures, even if he wants to establish a partnership with Ark Culture, he does not want to lose money on a film project.

For an animated film with a production cost of 50 million, according to the publicity and distribution standards, it is indeed impossible to give 100 million publicity and distribution costs.

Because, if the publicity and distribution costs are smashed, the follow-up needs to be recovered through the box office.

If Penguin Pictures really spent 100 million yuan on publicity and distribution costs, then the box office of Ark Culture, an animated film, must reach more than 300 million yuan before there is any hope of recovering the publicity and distribution costs.

According to the proportion of account sharing of theaters, theaters, filmmakers, and distributors.

First of all, it is necessary to deduct 3.3% of the special business tax and 5% of the special fund for the development of the national film industry.

The remaining 91.7% is the divisible box office that can be used to share the account, that is, the net box office.

Next, theaters and theaters will first share 57% of the box office, and the remaining 43% will be the filmmakers and distributors.

However, 43% is an ideal split rate.

In fact, the box office that the filmmakers and distributors can really account for is usually less than 40%, probably between 35% and 40%.

The more popular the movie, the closer the box office is to 40%.

The specific proportion of account sharing can be obtained depends on the strength of the issuer.

Generally speaking, industry insiders will roughly regard one-third of the total box office as the account-sharing box office that the filmmaker and distributor can get.

However, the box office is not the money that the filmmaker and the distributor can get in the end.

Because, there is also a deduction for the cost of publicity.

In the account-sharing box office, the publicity and distribution expenses need to be paid back first.

In other words, the publicity and distribution cost of a movie is 100 million.

The final total box office is 300 million, and the account box office is 100 million.

Then this 100 million will be given priority to offset the cost of publicity.

In other words, the filmmakers of this movie can't get a penny, and the 100 million share box office is all used to offset the publicity and distribution costs.

In other words.

Fang Xing asked for 100 million publicity and distribution expenses for "Spirited Away", so after the movie is released, the box office is less than 300 million, and the distributor will not only not make a penny, but also lose money.

It is also for this reason that no publishing company is willing to act as an agent for the distribution of Spirited Away.

After all, the box office of 300 million is not something that can be achieved casually.

Just hearing about this publicity fee, many film and television companies with distribution capabilities were scared away.

Zhang Changfeng also felt that this publicity fee was unreasonable, but as the CEO of Penguin Pictures, he did not show too exaggerated expressions.

"As for the cost of publicity, we have to discuss again. For an animated film, such a high publicity and distribution cost is actually inappropriate. It will also be much more difficult to recoup costs. ”

Fang Xing's attitude was very resolute: "Actually, I don't plan to let the publisher pay for this publicity and distribution. We will pay for the publicity and distribution of 100 million yuan. ”

When Zhang Changfeng heard this, a look of surprise flashed on his face.

Generally speaking.

The cost of publicity is usually paid in advance by the issuer.

It seems that there is a risk in paying for publicity and distribution in advance.

However, after the movie is released, the account-sharing box office is the priority to deduct the publicity and distribution costs.

Moreover, the film distribution company must be optimistic about a movie, so it will choose agency distribution, and will calculate a reasonable publicity and distribution cost according to the quality of the film.

Therefore, the issuing company will not lose money if it pays the publicity and distribution costs in advance.

If the distribution company really loses money, the film party will not get a penny, and the production cost of the film will be lost.

Of course, in the film industry, the publicity and distribution costs do not have to be paid in advance by the distribution company.

The specific situation still depends on how the contract is signed.

It's just that the industry-standard cooperation model is indeed paid by the issuer.

Now, Fang Xing offered to pay for the publicity and distribution by himself, which means that if the box office of "Spirited Away" does not reach 300 million, then it is also himself who will lose, and he will not be able to lose Penguin Pictures.

Therefore, at this time, Zhang Changfeng was convinced that Fang Xing really felt that this animated movie had the ability to kill more than 300 million at the box office.

Of course, most of the film and television companies were very confident when they hit the big screen, but in the end, there were not a few who failed and sank into the sand.

Therefore, faith alone is not enough.

"Are you sure you want to pay 100 million in advance for publicity? It takes a total box office of 300 million to have any hope of recovering the publicity and distribution costs, not including the production cost of the film. Zhang Changfeng thinks that Fang Xing may not know much about the film industry.

If it is calculated according to the publicity and distribution cost of 100 million, the film production cost of 50 million.

If you want to recover all the costs, it is not a matter of 300 million box office, and you have to deduct the distributor's account, and the box office needs to be at least 500 million to recover the cost.

Fang Xing's expression was very sure, and he nodded and replied, "Yes, I'm sure." ”

Zhang Changfeng glanced meaningfully at Xu Guangyi on the side, and the content expressed in his eyes was very complicated.

In fact.

Zhang Changfeng's original idea was to act as an agent for the distribution of this animated film of Ark Culture, spending 10 million on publicity and distribution.

In this way, if the box office has 30 million, the publicity cost can be recovered.

Even if the agency does not make a penny, it is acceptable.

However, Fang Xing's expectations for this animated film are too far from his ideas.

The only reason why he was still willing to sit down and continue to talk was that Fang Xing planned to pay for the publicity and distribution by himself.

In other words, if Penguin Pictures releases this animated film, it does not need to advance funds, and no matter how much the final box office is, Penguin Pictures will not lose.

At worst, it doesn't make money.

Of course, if this animated movie hits the street at the box office, then Ark Culture will lose money.

Zhang Changfeng didn't continue to talk about the movie, and said: "Let's put the movie thing aside, Mr. Xu has another project I want to talk to you about." ”

Xu Guangyi stretched out his hand and shook Fang Xing, and said, "Mr. Fang is young and promising, and now domestic investment banks are staring at you." ”

"Don't dare to be." Fang Xing said modestly.

Previously, Dingsheng Capital wanted to invest in Ark Culture, and the valuation given was 250 million.

With the big sales of Fang Xing's new album, this valuation has doubled.

This is a company that has been established for more than two years, with a valuation of 500 million, the development speed is simply appalling.

If any investment company had invested in Ark Culture, the return on investment would have been amazing, and it would inevitably become a legendary case of investment banking.

It's a pity that Ark Culture itself does not need a large amount of money to develop, and it relies entirely on songs and film and television dramas, so it does not need financing.

Xu Guangyi said with a kind smile: "Is Mr. Fang willing to accept the capital injection of our group?" As long as we become a family, we will naturally cooperate more harmoniously in the future. ”

When Fang Xing heard this, he knew that what he had expected at the beginning had finally come.

In fact, Fang Xing had expected it a long time ago.

Since Dingsheng Capital took the initiative to invest in Ark Culture, there have been investment companies throwing olive branches.

It's just that Fang Xing doesn't need a lot of money, so he is not interested in this capital.

It's just that when the company develops to a certain extent, it will encounter many difficulties and bottlenecks.

It is almost impossible for a single company to break through these bottlenecks.

These difficulties and bottlenecks will be easily solved as long as there is a big backer to support them.

Fang Xing has considered many strategies.

The solution is nothing more than accepting a capital injection from a large group, or looking for a strong place to be backed by ZF.

Fang Xing also expected that as long as the Ark culture continued to develop, these solutions would automatically come to the door.

Now, the penguins have come to the door.

The matter of capital injection is not something that can be negotiated at one meeting, Fang Xing is not in a hurry, and continues to chat with Xu Guangyi to ask about the penguin's attitude.

(End of chapter)