How China Entertainment was developed

Chapter 391 Some outrageous project profitability
Seeing that Han Sanpin was so righteous, Zhang Nan stopped being secretive.

"First of all, the pure project profit rate may not be too high?" Zhang Nan explained.

But when Han Sanpin heard Zhang Nan's explanation, he was completely confused.

Ta Ma’s movie project with a global box office of over one billion US dollars has a low profit margin?
Who are you trying to fool?
The profit margin is not high, will a Hollywood giant like Paramount Pictures handle this project?

Looking at Han Sanpin's appearance, Zhang Nan knew that Han Sanpin didn't quite understand the profit methods of Hollywood giants.

So Zhang Nan explained to Han Sanpin: "For a Hollywood A-level large-scale production project like this, the profits that the producer can get are basically divided into three parts: movie box office, peripheral profits and copyrights, and the impact of large-scale production on the production company. The rise in stock prices generates financial profits.

The financial profits generated by the increase in stock prices are not included in the project income.

Of course, Mr. Han, if you have the means in finance, you can also directly enter the US stock market to make a profit, but I don't recommend you do this, because the financial operations there are too crazy, and ordinary people can't beat them.

As for the remaining movie box office and peripheral profits, the higher the movie box office, the greater the peripheral profits, and the lower the movie box office, the lower the peripheral profits.

For example, for a movie with a box office of [-] million U.S. dollars, the peripheral profit will probably be around [-] million U.S. dollars; for a movie with a box office of less than [-] million U.S. dollars, the peripheral profit will probably drop to tens of millions; of course, for a movie with a box office of [-] Movies with a box office of [-] million US dollars will also see a significant increase in peripheral profits. "

Listening to Zhang Nan's explanation, Han Sanpin nodded, but still sighed: "This is quite a lot. If the movie's box office reaches one billion U.S. dollars, then wouldn't the total revenue of the movie alone have to be 30 billion U.S. dollars? To what extent is it starting?”

"You're right, it's almost the same number."

Zhang Nan first agreed with Hansanpin's profit calculation results, and then explained: "But of the one billion U.S. dollars in box office, [-]% is given to theaters, leaving only [-] million U.S. dollars in profit, and this [-] million U.S. dollars From the US dollar box office revenue, there are still costs that need to be deducted.

As for the peripheral revenue, which starts at US$20 billion, [-]% to [-]% needs to be distributed to the distributors. After all, without these distributors, the movie peripherals will not be easy to sell. "

Han Sanpin continued to nod in recognition and agreement, "This is also what it should be. It's just like the relationship between the producer and the theater. The producer can't directly show the movie to the audience, but if you think about it, throw it away With [-]% of the box office profit and [-]% to [-]% of the six surrounding people, the profit is still considerable!"

"Forehead……"

Zhang Nan was a little hesitant at Han Sanpin's question, but finally spoke. After all, this matter cannot be hidden, "Mr. Han, you may not know my current salary in Hollywood."

"How could you not know that the US$6.1 million salary Disney offered you has been very popular in our mainland for a long time..." Han Sanpin waved his hand and said these words subconsciously, but before he could finish his words, My heart suddenly reacted.

That is, taking into account Zhang Nan's high salary, the profit of this movie will indeed drop sharply by another level.

It is estimated that the profit from the movie box office of one billion US dollars, after deducting the costs, is not enough to pay Zhang Nan's salary. He has to make up for it from peripheral income.

wrong!

Han Sanpin suddenly realized a question.

Disney has offered Zhang Nan a salary of US$6.1 million. Paramount cannot be much less, so...how come the total investment in [Transformers] is only US$4.5 million?
"Director Zhang, have you drastically reduced the pay for this project?" Han Sanpin asked tentatively.

Zhang Nan shook his head and said: "It's not a reduction, it's just a new way of cooperation. The director and starring actors grabbed it. I got a fixed salary of 3 million US dollars, plus 40.00% of the total box office dividend and 50.00% of peripheral income."

Han Sanpin: "..."

Good guy.

This is too cruel!
According to this calculation, in this project, the producer can only get 5.00% of the box office revenue and 15.00% to 10% of peripheral revenue.If the movie box office exceeds 25 billion US dollars, the peripheral revenue will be [-] billion US dollars.
Then the producer can only receive US$3 million in box office dividends and US$1.25 million to US$3.75 million in peripheral income.

Added together, the revenue is approximately US$4.25 to US$6.75 million.

Throwing aside the US$4.5 million in production fees, the producer might even suffer a small loss in terms of pure movie income.

Of course, the actual accounts cannot be calculated like this.

Because many times the channels for peripheral income are subsidiaries of the producers, and the profits generated by the movie box office boosting the company's stock price fluctuate point by point under the tens of billions of dollars that Hollywood giants often make. They are hundreds of millions of dollars in profit, and the income here is even more terrifying.

This is also the main reason why Wall Street is crazy about entering Hollywood.

Throw in hundreds of millions of dollars and the entire project will come out.

A single point fluctuation in the related company's stock is a profit of hundreds of millions of dollars.

Moreover, this kind of fluctuation, under the dual operation of long and short, can be manipulated regardless of whether the box office performance is good or bad.

However, Huaying, hosted by Han Sanpin, obviously cannot participate in financial operations and can only enjoy the profits from simple film projects.

But this is a movie project that might lose money...

Han Sanpin finally understood why Zhang Nan had to personally deliver such a good project to his door.

Sure enough, there is no such thing as a white pie in the sky.

But even in this situation, Han Sanpin still plans to participate.

Because if nothing else, as long as this wave of cooperation is achieved, regardless of whether it makes money or not, the reputation will definitely be there.

"Director Zhang, thank you very much for explaining the twists and turns here so clearly. Although the rate of return on this project is not high, China Film currently is in urgent need of international influence, so - we at China Film I voted, but how much share can I get?" Han Sanpin said solemnly.

Seeing that Han Sanpin had fallen into the trap, Zhang Nan continued: "Paramount is willing to transfer 5.00% to [-]% of its share. The specific amount depends on China Film's own financial situation. The money must be paid before the end of September. Call him."

4.5亿美金的总投资的5.00%至百分之十，就是2250万美金到4500万美金之间，也就是2亿人民币到4亿人民币的数目。

Han Sanpin weighed Huaying's current financial strength and gritted his teeth: "Huaying wants a ten percent share."

Seeing Han Sanpin's attitude, Zhang Nan felt that the heat was almost there, so he took advantage of the situation and said: "No problem, I will pass the news to Paramount Pictures in a while, but Mr. Han, now the [Transformers] project Although it is not a co-production, it can still be regarded as a project invested by China Film. When the film is released in the mainland, can China Film provide some preferential treatment in terms of schedule arrangement? In terms of the scale of the release, can China Film provide strong support? One? Can you apply for an extension key or something from Huaying?"

The three people asked Han Sanpin questions in succession, almost confusing Han Sanpin.

It was also at this time that Han Sanpin reacted.

Good guy, it turns out the real pit is waiting for him here.

"Director Zhang, the current environment in the mainland film market is like this. If [Transformers] is given special treatment, then other film projects will be emotional." Han Sanpin wanted to refuse.

(End of this chapter)