Chapter 28: The quarrel is up
Two hours later, Yan Yiyun, director of the West Film Studio, also called Li Mu's mobile phone.
"Li Mu, Cheng Long called you just now?"
"Hit."
"Can I ask what he said?"
Cheng Long said Columbia Pictures was willing to bid $25 million to buy out all rights to "Hurricane Rescue" in North America and parts of Europe.
"What did you say?"
"Of course I said yes, this time the Colombian film bid is quite generous, only this single transaction, we not only recovered the full cost of the film, but also made a lot of money, and the rest of the domestic market, Xiangjiang, Baodao, South Korea, RB, Singapore, Southeast Asia box office net income, not to mention the DVD copyright, TV broadcast rights and so on in these regions are all income."
Yan Yiyun said: "Yes, the young man is quite sober-minded, this is indeed the truth, at the beginning our Xiying and Cheng Long Yinghuang have the same opinion in this regard, seeing that the cooperation is about to be reached, Cheng Long said that you are the hero of this movie, he wants to talk to you first, but what I didn't expect is that Cheng Long changed his mind after making a phone call with you, and now he has to sign a box office sharing agreement with Colombia for everything, I thought it was Cheng Long who you said, but according to what you just said, this matter has nothing to do with you, I don't know who the mileage dragon consulted with in that half an hour. ”
"Huh?"
Yan Yiyun said again: "Cheng Long has been in the film and television industry for most of his life, and he has not seen it thoroughly as a newcomer, 25 million US dollars, how much box office does this have to get in North America and Europe to get this amount?" Not to mention the risk that even if the movie gets a high box office, people may try their best to swallow your interests. ”
""Hurricane Rescue" is a good movie, and most of the film companies at the film festival also recognize this, but before the official release of the movie, no one can say whether it can be made or lost, if the bid of the Colombian film is not high, find a way to sign the share, and now it is clear that the other party has come up with the price of bleeding, and we only know the share, that is, it is not clear."
"Director Yan......"
"Huh? You said! ”
Li Mu said: "Cheng Long and I talked on the phone just now, and I did say that, but in the end, Cheng Long asked me another question, saying that if "Hurricane Rescue" is my one-man movie, I can call the shots alone, then do I choose to sell it all at once or choose a share." ”
"And what did you say?"
"I said I'd go for a box office share."
"Gone?"
"It's gone!"
"Cheng Long didn't ask you why?"
"Nope."
On both ends of the phone, both were silent.
After a while, Yan Yiyun said: "Actually, I can't blame you for this, you just said a word, and Cheng Long changed his mind, which can only show that Cheng Long originally called this idea, and he talked to you on the phone, the purpose was just to be more firm in his choice, but it doesn't matter, the West Film Studio and Cheng Longyinghuang are the same, in this matter, everyone's right to speak is the same, Cheng Longying Huang wants to sign a sharing agreement, and it is easy to nod without the West Film Studio." ”
……
The "Marché du Film Festival" of the Cannes Film Festival exists in two places, one is the booth area on the basement floor of the Palais du Cinéma, and the other is in several large hotels opposite the Palais du Cinéma, where film company owners, producers, copyright companies, and film sales agents from all over the world have finalized the "business" over coffee.
The basement floor of the Cinema Palace is also known as the "outside" market, where film companies or directors who have no way to buy room magazines and booths to promote movies; Most of the big deals are held in hotels, and Cannes rights dealers like to refer to the luxury hotels opposite the Palais du Cinémath as the "li" market for Cannes films.
At this moment, in the La Majastic Hotel opposite the Palais du Cinema in Cannes, the two major investors of "Hurricane Rescue" - Western Film Studio and Emperor Cheng Longying are fighting for each other.
Emperor Cheng Longying, mainly Cheng Long, seems to have decided to sign a box office sharing agreement at this time, while the Western Film Studio represented by Yan Yiyun believes that Columbia Pictures' bid this time has been quite generous, and there is really no need for his side to throw out the $25 million that has been received for nothing.
In the end, the two sides quarreled for more than two hours, but in the end, no one could convince anyone.
In the end, Cheng Long proposed, anyway, no one can convince anyone, so you might as well listen to Li Mu's thoughts.
Yan Yiyun also agreed, he and Li Mu just finished talking on the phone, and Li Mu was still in favor of signing a one-time sellout agreement on the whole.
Then Cheng Long dialed Li Mu's phone, then explained the situation and pressed the speaker and put the phone on the conference table.
Now that the matter has froze, Li Mu will no longer refuse.
"Uncle Long and Director Yan, whether to sign a sharing agreement or a one-time sales agreement, I think it mainly depends on two issues - first, whether "Hurricane Rescue" can win a high box office in North America and Europe; The second is that if "Hurricane Rescue" can win high box office in North America and Europe, then can the Columbia company obediently distribute the money to us according to the contract. ”
"After all, Hollywood has a lot of black history in this regard."
"Now let's talk about the first question, that is, whether "Hurricane Rescue" can win a high box office in North America and Europe, I personally think it can, of course, this is just my personal opinion."
"The second question is that if the box office sharing model is adopted, will Columbia Pictures cheat our money? I think it's possible, and it's still very likely, so is there a way to overcome that risk? I think the same is. ”
"In 2001, in order to adapt to the new situation of WTO accession, the state established an export credit insurance company to provide foreign exchange risk protection for enterprises to open up overseas markets through policy-based export credit insurance means."
"Relevant statistics show that the copyright trade deficit of China's books and film and television products is more than 10 times or even 100 times. In 2004, China exported 14 copyrights to the United States, and imported 4,068 copyrights from the United States. ”
"In the face of this situation, the state encourages the export of China's films, so can we seek the support of the National Credit Insurance Company?"
"If we can reach a cooperation with the national credit insurance company, it is equivalent to transferring the risks that may be encountered in entering the overseas market to the credit insurance company. The National Export Credit Insurance will provide us with foreign exchange collection protection in the event of late payment or non-payment by the purchaser, underreporting box office revenue, and over-using copyright. And all we need to pay is a premium, which is innocuous compared to the box office gains. ”
"So my opinion is that if we want to adopt the box office sharing model, then we might as well find the Sinosure Company to explore the wind and see if the two sides can reach a similar cooperation."
After Li Mu finished speaking, neither the Western Film Studio nor Cheng Long's side reacted at all, because they lacked understanding of what Li Mu said, they were very unfamiliar, and they didn't know how to operate this thing.
It's normal not to know, because no domestic film company has operated like this so far, and it will not wait until next year, after Huayi Brothers Pictures has suffered losses in foreign markets, it will be wise to eat a trench, and when "Night Banquet" is released, it will strive to seek to formally sign an insurance policy with the National Export and Credit Insurance Company, and the credit insurance company will provide foreign exchange risk protection for the overseas distribution of "Night Banquet".
However, although everyone didn't quite understand what Li Mu meant, it seemed that the prospects were not bad, so the dispute was put on hold for the time being, and everyone first contacted the National Credit Insurance Company to see if the National Credit Insurance Company had this kind of business.
Two days later, they received an accurate reply from the State Credit Insurance Company, and in response to the national policy, the Credit Insurance Company was willing to provide foreign exchange collection risk protection for "Hurricane Rescue", and only charged 3% of the market price of the premium.
At this point, Cheng Longyinghuang's proposition of signing a box office sharing agreement with Colombia began to gain the upper hand, and everyone understands the market potential of "Hurricane Rescue", even if they don't understand it, it is understandable to see that Colombia is willing to pay such a big price, there were too many concerns before, and now there is a national credit insurance company willing to provide foreign exchange collection risk protection, which is equivalent to resolving the biggest risk of signing a sharing agreement, so Yan Yiyun does not blindly insist on signing a one-time sale agreement for overseas copyrights.
In the end, "Hurricane Rescue" signed two agreements with Columbia Pictures in the United States, one is a copyright buyout agreement for DVD and home video products in Europe and the United States, with a buyout price of 7 million US dollars.
The second is the account-sharing agreement for film distribution in Europe and the United States, in which Columbia Pictures is responsible for the distribution of the film "Hurricane Rescue" in Europe and the United States, and the producer will receive 30% of the revenue from the box office.