There is a remark: China Film's investment in Hollywood is just a normal business strategy for a company... Before the film... There are many mainland cultural enterprises involved in the Hollywood production industry...

It's the same with China Film... It's just that China Film is a national brand, no fuss!

The problem is that China Film has the right to import films, and it just so happens that the growth of domestic box office revenue in North America is slowing down, and Hollywood is actively studying how to enter the Chinese market.

If you cooperate with China Film, does it have a distribution advantage?

Disney's "Avengers 2: Age of Ultron" won't be released in Chinese mainland until May 12, nearly two weeks later than the film's May 1 premiere in almost every other country, including the United States.

Why two weeks late?

Because of "Fast and Furious 7" - China Film participates in investment...

But... After all, China Film is a national brand, what is the matter with your investment in foreign films?

What's wrong, on par with compradors?

It is estimated that Han Shanping is also worried about this kind of rumors, so he asked Shen Xudong.

Xudong asked rhetorically: "Why invest in Hollywood?" China Film relies on the right to introduce films, and it is less than 100 million yuan a year? ”

"Isn't this busy going public..."

"Oh..."

That's understandable!

With the help of investing in Hollywood blockbusters.

"We're working with Legend and we're going to invest in a couple of films..."

"Actually, Legend is just a film investment fund..."

Shen Xudong roughly introduced the birth process of Legendary Entertainment.

It's an investment platter that evolved!

In fact, theoretically, film companies can of course rely entirely on their own funds to shoot movies, and since the 90s, the huge profits of the secondary recycling channel are enough to support film companies to shoot super blockbusters with a scale of 100 million yuan.

But without exception, all studios are still looking for investment.

There are many reasons for this, such as sharing risks, increasing the number of starts, crying poor to make stars and agents lower their salaries, etc., but the main secret is that the cooperation between film companies and external investors is based on some kind of unequal treaty...

"Inequality?"

"Yes," Shen Xudong nodded: "For example, for a $150 million production, the company pays 50% of it yourself, and 50% of the external funds after it is finished, but the film company gets a lot more profits than external investors." ”

"Much more?"

"You see, the box office payment of a film, first deduct 10-15% of the total box office distribution fees and other marketing expenses, and then share it equally with external investors, which of course seems fair, but for the film company, sitting on the distribution fee turns a risky thing into a relatively drought and flood to ensure income, coupled with various accounting strategies, in short, the introduction of external investors is a beautiful thing for Hollywood studios."

"Like a premium investment in your company?"

Shen Xudong admitted: "Yes! ”

……

TiMi Media attracts external investment every year, of course, external investment needs a premium of 20% to enter...

A movie costs 100 million, the company pays 50 million, and the outside capital is 50 million, and then half of the proceeds are given to you?

It's a beautiful idea!

Film investment is a small circle game, not that you can play it if you have money.

The 20% premium is still a bit of a relationship for investors.

In the future, anyone who has a little quality will put the investment share at a premium.

In particular, scarce good projects and big projects will be more favored and more likely to overflow good prices!

For example, "Human Comedy" has a premium of 300 million.

A comedy, with such a premium, is indeed quite rare!

In the final analysis, it is because of the uneven distribution of resources for mainland films.

In most cases, the premium is about 50%, and the shooting cost of a movie is 100 million. The cost of the company's external sale of 150 million, the company first returned 50 million...

Film and television is an industry that is extremely dependent on resources, and if you have resources, you have the right to speak, and from the perspective of large companies, you have spent a lot of time and energy to develop good projects, and you have exhausted your relationship to get good resources, and the results of your efforts obviously cannot be used by others in vain, so there is a premium.

Hot money is pouring into the film industry, especially foreign investors in the industry dominated by financial institutions and film and television funds, and the standards for their investment projects, or those with high premium conditions, are still stuck in big IP, big actors, and big directors, and it is difficult to have a professional judgment on the actual project content.

The premium is caused by too few good projects and too many people who want to invest in good projects, and this imbalance can only be solved with money, and no one will give up the opportunity to make money to others.

The film premium is undoubtedly an additional income for the main prosecution, and it also allows part of the income to be recovered in advance.

At the same time, it is also a way to transfer risks and protect their own interests, and avoid risks in the early stage of project operation.

……

After listening to Shen Xudong's investigation of Legendary Pictures, Han Shanping probably understood: "You mean this is a middleman?" ”

"Yes, middleman!"

"Then I look at the publicity, "Batman" and "Spartan Three Hundred Warriors" are all them..."

"The copyright belongs to Warner!" After a pause, Shen Xudong continued: "And Legendary Pictures owes hundreds of millions of dollars... If you really want to invest, why not go directly to the studio? ”

“… What you said is simple, directly docking with the studio, we can't rush to ask for cooperation, the reason why we invested in Legendary Pictures is also because the boss of Legendary Pictures personally came to visit several times..."

"Thomas Toll?"

"Yes, that's him!"

Shen Xudong: "... He is very famous in Hollywood, and he used to run an investment fund, but he will pull investment... But he can't get money in the U.S. investment market, why do you think that? ”

Han Shanping was stunned for a moment: "... Why? ”

"Because Legendary Pictures has a bad reputation..."

Talking about this, Shen Xudong got up and packed up his fishing gear - another afternoon in the Air Force!

It doesn't matter, he's not a fishing guy anyway, the Air Force is the Air Force.

"Han Dong, let's go to the restaurant and talk while eating."

Han Shanping also packed up his fishing gear and followed...

On the way, he suddenly remembered something: "How is the overseas copyright of "Painted Skin 2" sold? ”

"It's okay, $13 million, mainly in Southeast Asia and South America..."

"Southeast Asia... I don't think you have cooperated much with South Korea in the past few years? ”

"No way, since 09, the South Korean government has restricted the import of Chinese films... If he can't make any money, who will work with him? ”

“… Now the outside is saying that Korean films are developing very well, what do you think? ”

Shen Xudong smiled: "What kind of industry can be developed in a semi-colony?" At that time, South Korea's semiconductor industry was also restricted by the United States, and then transferred to South Korea... It's the same with Korean movies, once they make a name, the United States will come to harvest! ”

"Not really..."

“… That's it! ”

Something...

Alas, I'm so speechless, I really want to slap myself twice!

(End of chapter)