China Entertainment started from Nortel 2002

Chapter 346 Gambling

The CEOs of China Film, Huayi Brothers, Enlight Media, Bona, Xingmei and Mengying, as well as those responsible for the distribution department, are sitting down to discuss the matter of "forcing the palace".

The "forced uterus" is naturally directed at the theaters.

"As you all know, in recent years, a large number of new production technologies have been applied and labor costs have doubled. The production costs of films have also been rising rapidly. The current high production costs of films have put great pressure on film producers and distributors. "

Yang Min, head of relevant distribution at Huayi Brothers, stated.

Li Mu, Han Sanping, Wang Zhongjun, Yu Dong, Qin Hong, and Wang Changtian were already aware of the cost report for production and distribution at this time.

They must know the current cost situation, otherwise there would be no need for everyone to join forces to discuss it.

"In the United States, movie distributors can get 70% of the split ratio. In China, only 43% is really not enough. The theaters also recognize people. I suggest setting it directly and starting from 50%."

Yu Dong was the first to speak. The 43% account share was really not enough given the current cost.

"Last year, the domestic movie box office was only over 130 billion, but I roughly calculated the cost of the movie to be 400 or 500 billion."

"Director Li, as a representative of the producer, what's your opinion?"

Wang Zhongjun subconsciously asked Li Mu, here Mengying Media is not participating as a representative of the distributor, but a representative of the producer.

"Of course I support the more accounts sharing, the better. However, I am afraid that the theater chain will not agree to a 50% account sharing. Mengying Media also has theater lines. As you all know, the cost of theater lines is indeed much higher nowadays. You have to improve slowly.”

"Indeed, if the 50% ratio suddenly kills the theater chain, I guess no one will have to talk about it." Wang Changtian also agreed with Li Mu's point of view.

"You can start with 45%. According to the opinions issued by the General Administration, it should not be less than 45%. They can't turn a blind eye to the documents issued by the General Administration."

Qin Hong suggested.

Everyone discussed for a long time and finally decided that the six major distribution and production companies will jointly issue a joint statement to the theaters to increase the distributor's box office share ratio from 43% to 45%.

There are 9 movies involved in the Lunar New Year period, including: "1942", "The King's Feast", "Big Shanghai", "The Grandmaster", "Zodiac", "Blood Drops", "Thailand", "Laughing in 2012" and "Secret Garden" .

Things progressed very quickly. The notice was drafted and stamped the next day and sent to all major theater chains.

The notice reads: "Due to the application of a large number of new production technologies and the doubling of labor costs, the production costs of films are also rising rapidly. In order to prosper the creation and production of domestic films and improve the production quality of domestic films, we must gradually rationalize The economic relationship between production, distribution and screening, China Film, Mengying and Huayi."

All the major entertainment media broke the news. Such breaking news suddenly caught them off guard.

This is a big event in the industry, involving several major movie giants and theaters.

Even Li Mu was caught by reporters on his way to the company and asked several questions.

"I work in both production and cinema. I understand that producers are under a lot of pressure. This is actually a leverage effect. Adjusting the production's account sharing is not only for the current prices, but everyone still understands the subsequent trend."

Gradually increasing the ratio of account sharing is a general trend in the country, and Li Mu naturally supports it.

Naturally, it was not only Li Mu who was being interviewed, but the reporters also spared no one from the CEOs of other major companies.

"This morning, Sina Entertainment contacted major distributors, producers and theaters to confirm that this news is indeed true. The film studio has a tough attitude and requires that the split ratio with the theaters should not be less than 45%: 55%. There is no negotiation between the two parties. room."

“The six major companies have a hard-line attitude towards forcing the mother to conceive, and the theaters are ambiguous and do not respond.”

The production and distribution this time formed the "Avengers", which caught the theater chain off guard.

The theater chains are in a state of being notified, but the theater chains are not easy to mess with. Many theater chains such as Wanda, Dadi, Jinyi, Century Universal, etc. hurriedly held internal meetings and urgently formed the "Guardian Alliance".

"That's too much. Zhang Weiping came here last time, and now he plans to come again. Does he think we are easy to mess with?"

"I firmly refuse to agree, once or twice, and will I come once a year in the future?"

"The worst case scenario is that we won't show it anymore. I'd rather lose money than show it."

The theater chain quickly reached a consensus and sent people out to respond: "Both the issuer and the theater chain have high operating costs now. It's really a pity for a sheep and a pity for a wolf."

It means we don’t make any money either, so don’t even think about it.

The two sides are quarreling fiercely. One side is determined to increase the split, while the other side would rather not make money from you than me.

Netizens are also a little confused. Some people support the film side and some people support the theater side, but they are opposed to the fact that there is no movie to watch.

"You just go back to the trouble, the movie will be good."

"Until it is resolved, will the Lunar New Year file be reduced to zero?"

"It's over! Domestic movies are going to be destroyed!!!"

"No matter how hard you try, in the end the wool comes out of the sheep, and the ticket price goes up higher and higher."

Some viewers also said that they should imitate the film studios and theater chains and form a joint boycott, "You guys have eight major theater chains and six major sects, and all of us viewers should also join a boycott price increase alliance!"

The timing chosen by the film crew this time is also very clever. It’s almost the end of November, and the time has only lasted for a few days.

At this time, imported blockbusters, Li Yin's "Pi" entered the mainland, just like James Cameron previously endorsed "Gravity", this time he endorsed Li Yin again, praising: "It can't be better Well, you have to embark on this amazing journey, you have to see it for yourself.”

It brought huge traffic to the movie.

"It's not settled yet?" Liu Yifei knew the result when she saw Li Mu returning with a helpless expression. "It doesn't matter whether you live or die." Li Mu said with a wry smile, "The reason is also good, because the expenditures of theaters are indeed very large now, including 3% tax on the box office, 5% of the special film fund, 43% of the film studio's account, 20% The annual rent of about 15%, the operating cost of about %, plus the depreciation of equipment, and the rent rising every year, are already overwhelming."

"The rents have gone up ridiculously over the years."

After listening to this, Liu Yifei also said something for the cinema.

"The salaries of directors and actors have also increased ridiculously in recent years." Li Mu responded.

Liu Yifei immediately spit out her sweet tongue, and the producer was equally embarrassed.

"Although the box office has increased, the proportion cannot keep up."

Both of them knew the reason came from here.

Of course, those who support the film are basically major directors, actors and production companies. The theater side seems to be alone, but it is the most united.

"If the relevant departments do not come forward to coordinate and the negotiations between the two parties cannot reach an agreement, our attitude is to firmly oppose it, which will lead to a situation where large-scale theaters refuse to show certain films."

"When unreasonable demands exceed fairness, it is time to use administrative power to intervene in the market. The best result is upstream and downstream negotiation and market-oriented adjustment, and the worst result is that theater chains, studios and producers can all take action at the same time. Two scattered."

Wu Hehu and Zhao Jun also revealed the attitude of the discharge team respectively.

The General Administration hurriedly held a meeting with two groups to discuss. If no action is taken, several blockbusters will not be screened. Let alone 180 billion in box office this year, 150 billion is enough.

"You go for me, I'm too tired."

After Li Mu saw the summoned documents, he decided not to come forward, and he would most likely be left alone.

"it is good."

Liu Weijuan also knew that Li Mu had been at various discussions for several days in a row recently and was exhausted.

"Boss, if the negotiation fails, we will bet on whether "囧" will go the other way."

Liu Weijuan subconsciously reminded that she knew that Li Mu was very optimistic about this movie.

This sentence made Li Mu's eyes light up. It seems that it is difficult to increase the share of accounts at present, but it can be achieved by using tricks.

But the bait cannot be small.

Li Mu thought for a while: "If the negotiation doesn't work out, we can directly communicate with the theaters to make a bet. If the box office is less than 10 billion, only 41% will be shared. If it is more than 10 billion, the entire box office will be divided at 45%."

Liu Weijuan was immediately shocked by Li Mu's generosity. She would not find it strange if it were Li Mu's own movie, but this is a low-budget comedy directed by a newcomer.

"The bait is not big, and the theaters won't take the bait. If you want to bet, bet bigger." Li Mu said calmly.

"If the theater chain is cheating." Liu Weijuan reminded, to know how much the box office can get, it is the theater chain that has the final say in arranging the films.

"So this bet is established and legal affairs are sent to communicate. Under the condition that the attendance rate is certain, the theaters cannot adjust the film schedule at will."

"Forget it, I'll go with you."

After careful consideration, Li Mu was still prepared to talk in person.

The General Administration and the six major sects of the eight major cinemas all appeared. Of course, these people were not the only ones present, but also other producers and small and medium-sized cinemas.

Although the leaders of the General Administration tried their best to persuade him to make peace, they did not expect it to have any effect. The theaters refused to give in.

This leaves the producers and distributors alliance helpless.

"Director Han, we're at a stalemate. I guess we won't be able to withstand it anymore." Li Mu said helplessly. He looked at everyone's faces and probably guessed it.

The cost pressure is too great. If this is really not released, it will really be ruined.

On the other hand, if I look at theaters, at worst I won't show films that require 45%, and I will show only those that meet the requirements. In addition, there are imported blockbusters to support them, and we will see who can beat the other.

Han Sanping himself is also under a lot of pressure, because China Film not only has production and distribution, but also theater chains. It can be said that there are also people who are restraining him.

"We are going to lose this time." Han Sanjing said helplessly.

Sure enough, in the end the six sects retreated.

Several blockbusters are preparing to share their box office revenue in a stepped manner.

Li Mu suddenly glanced at Liu Weijuan.

Liu Weijuan immediately said: "Everyone, "囧" wants to make a bet, but I don't know if the theater chain is willing to accept it."

These words immediately stopped the discussion on both sides.

Everyone turned their attention to Liu Weijuan and Li Mu.

(End of this chapter)