Entertainment upstart

Chapter 1015 Another Negotiation Plan

The meeting with the theater managers is mainly to give the theater a step down.

Let Zhou Xia talk to them, reminisce about the past, and chat casually, which can somewhat resolve their dissatisfaction with Xia Hua Film and Television's strong operation this time.

But this matter was originally a market behavior. Back then, Zhang Weiping was able to rely on his strength to ask the theaters to increase the box office share ratio.

What Xia Hua did now was understandable.

After all, Xiahua Film and Television is much stronger than Xinhuamian.

Furthermore, how to arrange films and how to rebate points are mutual.

It's just that Xia Hua Film and Television doesn't want to give rebates now, and still wants to maintain a high-ranking film, which is the prerequisite for negotiation.

Otherwise, if Xiahua Film and Television doesn't negotiate with the theaters, the theaters will arrange the films according to the performance of the movies.

Or, according to their own arrangements, because some other movies give high rebate discounts, other movies will be ranked higher.

In this case, for Xiahua Film and Television, it will definitely cause a certain loss.

The crux of the debate between the two sides now is who should get more.

The construction investment and payback time of theaters can basically be calculated and expected.

The initial construction investment, plus the subsequent rent, water and electricity bills, and employee salaries are all determined by the cost price of manpower and material resources in the market, and the risk is relatively low.

The risk of film and television companies making movies is much higher.

Last year, the national production of feature films was 662; only 265 were released in theaters, of which 68 films had a box office of over [-] million, and most of the rest lost money.

Among the nearly 400 films that were not shown in theaters, even if income can be obtained through some other channels, it is very limited, and it is difficult to achieve return.

This is just the national story film, without counting nearly two hundred other films of other types and purposes.

Therefore, from the perspective of risk-taking of the entire industry chain, the film and television company's producer bears much greater risks, and the proportion of account sharing should be increased.

After all, compared with North America, domestic theater chains' share of accounts is indeed much higher.

But this problem is not absolute, after all, the national conditions are different.

The current domestic distribution ratio is that the issuer gets 43% to 45%, and the remaining 55% belongs to the theater chain.

55% seems like a lot, but in fact, 5% of the yuan will be handed over to the country as a film fund, 3.3% will be used to pay business tax, and another 7% will be obtained by the managed theaters. The remaining 39.7% will be It will fall into the hands of the theaters that actually show the movies.

Therefore, for theaters, their share of bills is actually not too high, which is close to the average share of 40% in global theaters.

That's why Zhang Weiping's savage operation back then, forcing the theaters to increase the proportion of the production party's bills, caused such a big disturbance.

If Xia Hua Film and Television is so barbaric, it may also cause dissatisfaction with the theaters, and even fight against Xia Hua together.

Xiahua Film and Television has the confidence to face the theaters, but in this case.Xia Hua will also suffer a certain amount of damage, which is not the best plan.

The negotiation between Xiahua Film and Television and the theaters this time is mainly to transform the strong performance of the movie into high-ranking films that the theaters will not pay for the movie, so as to obtain higher box office revenue in disguise.

Of course, the theaters are unwilling to do this. In the past, they had to rely on rebates to motivate them to obtain high-ranking films. Now there is no use for high-ranking films. Why?
But they didn't dare to talk to Xia Hua Film and Television.

Zhang Weiping only has an old schemer who can force the national theaters to make concessions, but Xiahua Film and Television does not have Zhou Xia.

Just imagine that if the talks between the two parties collapsed, it would be unimaginable that some theaters under the theater chain would not be able to show Xia Hua's movies.

This will directly affect the theater's revenue, and theater managers are sure to be in trouble.

It’s okay if it’s the theater chain’s own theaters, but if it’s a franchised theater chain, it may cause these theaters to leave the theater chain and join other theater chains.

After all, there are [-] or [-] emerging theater management companies in China, which one to cooperate with and who to eat with. In this regard, the theater is the active party.

It would be fatal without Xia Hua Film and Television's movie screening.

Since last year, Xiahua Film and Television has released nearly 20 films each year, accounting for more than half of the country's box office.

In particular, the films of Zhou Xia and Xia Hua Film and Television's big directors are almost guaranteed to make money, and the theaters are counting on these films to make money.

If there is no copy of a popular movie and the movie cannot be shown, some old users of the theater may even choose to go to another theater. This impact is very bad for the theater, and they will not carry it with the theater company.

Therefore, Xiahua Film and Television finally successfully reached negotiations with domestic theaters, and obtained favorable conditions for the future film screenings of Zhou Xia's new film and other major directors of Xiahua Film and Television.

According to the negotiated contract, the theater chain will increase the film schedule for free according to the performance of the film.

Zhou Xia was very satisfied with the result of the negotiation.

But unexpectedly, after the end, Zhang Zhao came to report to him, intending to wait until the screening of "Descendants of Yanhuang" is over, and after the outside world knows about their negotiations with the theaters, they will start to promote another negotiation plan with the theaters, that That's his real purpose.

After listening to Zhang Zhao's report, Zhou Xia was very moved, but a little uncertain.

Once the negotiation between Xiahua Film and Television and the theater chain is known to other domestic film and television companies, then companies with capital and strength will definitely negotiate with the theater chain and demand the same treatment.

I believe that the theaters will eventually back down.

After all, this concession still depends on whether the movie is a hit. If the movie is not bullshit, even the current film schedule cannot be satisfied, and it is useless to increase the film schedule.

After this matter basically formed the unspoken rules of the industry, Zhang Zhao wanted to start another negotiation plan to introduce Hollywood's flexible account sharing method to the country, especially the account sharing form between some big-produced movies and theaters of Xiahua Film and Television.

Many people only know that the proportion of movie theaters in the United States is lower than that in China, but this situation is not one-size-fits-all.

It is true that most of the risks in the film industry are on the producers, and the proportion of the share should be tilted towards the producers.

However, at present, the rent of theaters in first-tier cities in China remains high, accounting for about 20% of the box office, compared to 2002% in 5, plus staff salaries accounting for about 10% of the box office. About 39.7% still have to be taken away, and only less than 30% is their income.

This is not to be used to pay for equipment, maintenance, water and electricity, etc., and the remaining profit in the end will be even lower.

This is just a complaint from the theater side, and it cannot be guaranteed.

But even if many theaters earn a certain amount of income by selling drinks, popcorn, ice cream, peripherals, etc., in comparison, there are still no North American theaters that make money.

The rent of US theaters only accounts for 5% of the box office, and there is no need to pay 5% of the film fund. These two items alone make the profits of American theaters about 20 percentage points higher than those in China.

The proportion of domestic theater bills seems to be high, but in fact, no one else makes money.

So no matter what the situation is, even if Xiahua Film and Television is strong, it is not advisable to forcibly squeeze the theater's share of accounts, which will cause the theater to desperately.

Therefore, another way for Hollywood to dynamically adjust the proportion of accounts is the best choice.

(End of this chapter)