Huayu started as a substitute director

Chapter 713 Early Settlement
If Hong Kong films want to enter the mainland, they have to find mainland film and television companies to co-produce them, otherwise it will be difficult to enter. This is their restriction.

Now half of the city is controlled by the principal, and it is difficult not to be affected. Old Yang has no choice, as things are no longer the same as before.

Everyone has to make money. If you don't, you can't survive.

After Fang Hong got to know them all, he walked towards the stairs and stood on the stage.

The stage background was a dynamic bright red. Fang Hong faced the audience, glanced at the people present and said, "You all know why I called you here today, so I won't repeat it."

Of course they know this. Isn't it just to target Wanda and isolate Wanda Cinema Line?

But to achieve this goal, it depends on what the principal says and what benefits he gives them, otherwise it is impossible to do such a thing.

Working with the principal at Wanda also has its own losses.

"I won't say any more empty words. From today on, Tu Piaopiao will shorten the box office payment cycle from the original two to three months to 15 days. In other words, as long as a movie is distributed by Tu Piaopiao, it can get all the box office money within 15 days after one month of release.

Even if the film has not been withdrawn from theaters and is still being shown, you can get the box office money for the previous month within 15 days, and the subsequent money will be settled within 10 days. "

As soon as Fang Hong said this, the faces of the people present changed and they looked quite surprised.

There was a lot of discussion at the scene. Some people looked at each other, some of them didn't quite believe it. A cycle of 15 days was very short for them, a cycle that they couldn't even think about.

That is to say, they can get the box office money within fifteen days after one month after the release, and the money will be received in installments later. The whole cycle will not exceed one month.

This can save them a lot of interest. Many film and television companies invest in movies with money from banks or financial institutions, and all this money will generate interest.

There is even a bet agreement involved.

Not only that, the investment cycle will also be accelerated. That is to say, as long as a movie is released and has good box office on the first day, they can immediately invest in the second one after they have an expectation, and the time in between can be saved.

The utilization rate of this fund is multiplied several times, which can be used for multiple investments and help them reduce their dependence on financing.

In the past, the repayment period was long, and if they wanted to invest in the second film, they would have to look for financing before the money came back, or they would have to wait for the money to be returned.

Now the principal's plan shortens the cycle, and we can start working as long as we have the intention.

Another benefit of this is that it helps them quickly seize high-quality resources. If they have sufficient funds, they can quickly lock in top directors, actors, and IP movies, which greatly increases their flexibility.

Now that we have money, our capital chain is much healthier.

"Principal, is what you said true or false?" Ning Hao looked at the stage and couldn't help asking.

He owns more than a dozen film and television companies, the most famous of which is of course Bad Monkey, and the financial pressure is also very great.

"Of course it's true. You can question my character, but you can't question what I said. I never joke, understand?" Fang Hong said this very seriously.

Ning Hao also smiled awkwardly and did not respond.

It is true that although the principal was fighting with this person and that person, he was no joke in what he said and did, and he did everything he did.

"But the box office revenue is not decided by you alone, the distributor. The theater chains have the final say," someone said, but didn't continue. There are people from the theater chains here.

Others couldn't help but look at Dadi and the other CEOs.

In the past, it took half a month to compile box office statistics for theaters, half a month to reconcile the revenue sharing, and one month to transfer funds. The total cycle was very long.

If the cinema chain is stuck with money, it will be very difficult for Tupiaopiao to pay back the producer. That’s what it means.

“Don’t worry, we have a real-time data feedback system that uses big data to synchronously calculate the box office revenue, which can compress the financial settlement to the shortest time and greatly reduce the time required for theater box office statistics.

In other words, theaters no longer need to use manual calculations for this part, big data can do the calculation, reducing the possibility of their errors. Big data has already calculated how much money you can get, and it is open and transparent. You can monitor the box office data of each theater throughout the process.

If the cinema does not settle the bill for you, we at Tupiaopiao will pay the box office money to the producer in advance and will never cheat." Fang Hong said.

"Clap, clap, clap!" Applause broke out at the scene!
The principal is really kind-hearted, and his kindness is too great. However, it is also a manifestation of strength, which will completely change the box office settlement system in the industry.

If this is really implemented, the entire box office collection system will be broken by the principal.

In the past, when they settled accounts with the original ones, not only was the cycle long, but the errors were also very large. It was possible for the loss to be a few thousand or even hundreds of millions, because box office theft was a serious issue at that time.

Who knows when the cinemas will embezzle the box office revenue? Now the Internet and big data have put an end to their behavior, which is a good thing.

However, they knew that the principal must have a purpose, because the principal said that the issuance must be under the Yutu system.

Of course, this is not very important. It doesn’t matter who issues it. Having one more has an advantage, and having one less doesn’t matter.

In fact, they were worrying too much. Some of the cinema's box office revenue was also paid through Tupiaopiao, that is, tickets were purchased from Tupiaopiao, and the cinema also had to settle this part of the money with Tupiaopiao.

Rabbit tickets can be intercepted!

The short-term box office settlement is very easy to handle. Just sell the box office accounts receivable at a 98% or 97% discount to financial institutions or banks and let them advance the money.

Then we can give this money to the producers, and the whole system will come alive. Finance is really a good thing, which greatly increases efficiency.

At worst, when Chang'e becomes rich in the future, I can sell the Rabbit Bills to her at a discount, transferring the money from one hand to the other.

You can also postpone the payment to Yutu and pay interest to Yutu, so that the benefits remain within the family.

Only about 30% of the accounts receivable will be given to the producer, which means that out of the original box office of 10 billion yuan, only about 3 million yuan will need to be given to the producer.

The rest are divided by theaters and distributors. This is the business of Tupiaopiao and theaters and has nothing to do with producers.

In this way, Tu Piaopiao will earn less in distribution fees, the bank will also earn some money, and the producers will get more money. All three parties benefit. The benefit of Tu Piaopiao is that it expands the market and creates more distribution demand.

In order to get the money as quickly as possible, those producers will use Tupiaopiao as one of the distributors, so that they can better control the upstream content production ports and restrict downstream theaters.

"Principal, you can't be so kind. Do you have any requirements? Will you charge a service fee?" someone asked.

What they are worried about is that the ticketing platform will charge them service fees, which will result in less profit.

"Service fees will not be charged for the time being, but it may not be the case in the future. Also, I'm here today just to be kind." Fang Hong said as a matter of course.

These words caused everyone present to laugh. The principal could be quite humorous sometimes, but having said that, these words were very confident.

We will not charge service fees for the time being, but we will definitely charge them in the future. This is an inevitable trend, and we just have to wait for the competition in the ticketing market to decide the winner.

Without charging service fees, it is impossible to maintain operations, and Tupiaopiao is still in a loss-making state.

"Okay, now that this matter has been made clear, if you have any questions, someone will answer them in detail." Fang Hong skipped this question and told them to ask offline if they had any questions.

If he doesn't do that, as time progresses, rapid account splitting and settlement will soon be achieved. He is just taking the product of the times and using it in advance.

The people at the scene also stopped communicating and listened to the next policy the principal would give them.

As the principal just said, some people have already decided to follow, but they are all small film producers. Many films with low investments cannot be shown at Wanda.

Wanda favors those blockbuster movies, but generally ignores movies with small investments or those that don't seem to have high returns.

This is determined by their location and business attributes.

So it doesn’t matter whether these movies are released by Wanda or not, such as "A Clockwork City", "The Ghost in the Ouija Board", "The Gutian Conference", etc.

It is impossible for a market to be filled with only blockbuster movies; small films make up the majority and are the cornerstone.

"The other issue is the revenue sharing issue. We have agreed that Crystal Cinemas under Yutu and other Dadi Cinemas will adopt a tiered revenue sharing method.

超5亿票房从55%的分账，降至52%分账；超10亿票房，从52%分账降至50%；再往后20亿票房，分账减低到48%”

Before Fang Hong finished speaking, there was already discussion among the audience.

This plan benefits those blockbuster movies and dark horse movies, as such movies can earn a few more points if they get high box office.

Don't underestimate these points. A box office of 10 billion is equivalent to allowing the producers to earn an extra to million yuan, which is already a huge sum of money for a film and television company.

In the past few years, the theater chains and distributors fought to the death over these two points. Even the intervention of China Film Group was of no avail. The higher-ups also intervened to mediate, but the problem was not solved.

Now the principal has neutralized it. If the box office exceeds a certain amount, I will reduce your share.

However, this plan is of no benefit to low-budget movies. It would be good if their movies could make over 100 million yuan, but they can’t even think about making over 500 million or 1 billion yuan.

It is also good for leading producers, especially Huayi, Bona, and Guangguang, which have produced quite a few hit films.

There is also capital coming in from the Internet. Their films generally have the resources and publicity channels to get high box office.

Of course, famous directors, such as Guo Fan, Chen Sicheng, and Happy Twist, also have some bargaining power.

The cinema chain has given up a portion of the profits, so shouldn’t you give me a larger share?

The cinema chain had no objections, as Fang Hong had already negotiated it for them. As long as there was a hit, it would attract traffic, and they could make a lot of money from other sources such as advertising, snacks and drinks.

Therefore, theaters particularly like blockbuster movies, and they don’t like movies that don’t bring in crowds.

No matter how good your movie is, I won't like it.

Later, super-high-grossing movies such as "The Battle at Lake Changjin", "The Wandering Earth 2", and "Hello, Li Huanying" all enjoyed a reduction in the share to 48%.

Because such movies can be shown for a long time, that is, they can be shown for two months. "Nezha 2" was shown for half a year.

The main reason why Fang Hong was able to win them over was that he had control of the recommendation position, that is, the cinema recommendation position.

Some cinemas are ranked at the first position, and some cinemas are ranked at the end. In this way, the cinemas ranked at the first position will of course attract more people and be more conspicuous than the cinemas ranked at the end.

Later, Taopiaopiao often did this!
(End of this chapter)