Inherit For Three Thousand Years

"The specific reasons are very complicated. Generally speaking, it is difficult to reconcile interest disputes. Zou Xingxing plans to find a new distribution company. First of all, we selected Huaying Entertainment." Jin Haidong explained briefly.

"Opportunity is indeed a good opportunity, but it is conceivable that Zou Xingxing's requirements must be very demanding. What kind of demanding requirements did he put forward? Tell me about it."

Jin Haidong smiled bitterly: "No wonder Zhou Xingxing broke up with the previous issuing company. His requirements are too harsh. For our company, he put forward three requirements: first, the issuance agency fee is 5%; second, The box office guarantees 1.5 billion yuan; third, the highest treatment is required for film arranging."

"He is really buried in Qian's eyes. I am afraid that no one will agree to such a harsh condition." Xiao Yao shook his head and said.

No wonder Jin Haidong came to ask him for instructions. Zou Xingxing’s release conditions were indeed too harsh, and even Xiao Yao felt that such conditions were unacceptable.

For the domestic box office share, the ratio between the theater chain and the publisher and producer is fixed, but there is no hard and fast rule on the ratio between the publisher and the producer.

For the total box office of all films, 5% of the special funds for the film industry must be paid to the state, followed by a special business tax of 3.3%, which is directly deducted and paid by the theater from the total box office. The above two items, a total of 5% + 3.3% = 8.3%, are called "non-separable box office". The remaining 1-8.3%=91.7% is the "dividable box office", also known as the "net box office".

Then China Film Digital Film Development (Kyoto) Co., Ltd. (hereinafter referred to as China Film Digital), a wholly-owned subsidiary of China Film Co., Ltd., a wholly-owned state-owned enterprise directly under the National Press and Publishing ****, will collect 1% of the net box office~ 3% as the issuance agency fee, referred to as "median agency fee". It is paid by the cinema to "China Film Digital". However, this stage of accounting only exists in large movies, not small ones.

Finally, in the remaining box office, that is, the net box office after deducting the "median agency fee", cinemas share 50%, theaters share 7%, and producers and distributors share a total of 43%.

If the cinema and the theater are the same company, such as Taikoo Theater, it will exclusively enjoy 57% (ie 50% + 7%). If the producer and the distributor are the same company, it will exclusively enjoy the 43%.

So how do the producers and distributors divide the accounts?

Generally speaking, the distributor will agree with the producer to charge 5%~15% as its distribution agency fee.

Whether to charge 5% or 15%, it depends on which party is stronger.

Zou Xingxing is one of the most appealing directors at the box office. Of course, the films produced by his company must occupy a strong position, and the distribution fee must be low, which is understandable.

But the 5% issuance fee is already the lowest standard in the industry. If this standard is implemented, then he should not raise other cocoa requirements.

But Zou Xingxing's appetite is obviously very big. In addition to the minimum standard for issuance fee, he also requires an ultra-high guarantee of 1.5 billion, which is unacceptable.

The 5% agency issuance fee should be acceptable to the major issuing companies, but the 1.5 billion guarantee is certainly not a public-private issuer that can agree to his demanding requirements.

Last year's box office record for domestic movies, No. 1 was 2.4 billion, and No. 2 was only 1.6 billion. Zou Xingxing even opened his mouth and asked for a guaranteed share of 1.5 billion, which is too risky for the issuing company.

If you agree to Zou Xingxing's request, it will be a risky gamble.

Even if the bet is won, it is only a profit of about 70 million yuan. If Zou Xingxing’s film encounters Waterloo, it will be a huge disaster for the distribution company.

In the film market, no director is a winning general. When everyone has Waterloo, the profit is not high, but the risk is extremely high. No one is willing to accept it.

"I think Zou Xingxing should be able to make some concessions, but the extent of the concessions will definitely not be too great, or I will talk to him first, if I still can't reach an agreement, then I can only give up this cooperation. He gave a lot of concessions. I will bring him over again to meet with you. It is up to you to make the final decision. What do you think?"

The feeling that Zou Xingxing gave Jin Haidong was very persistent and rigid. He felt that this cooperation was unlikely to succeed, so he could only try his best.

Xiao Yao thought for a while, and said, "You should bring him here directly. I will meet him, let's talk first, and then talk about cooperation."

Xiao Yao can’t make a decision now whether or not to take over the distribution agency rights of Zou Xingxing’s movie, but after meeting him, there will naturally be results.

Movie box office is a special industry, Xiao Yao only really understood this industry after the establishment of Taikoo Cinemas.

The box office of a movie sounds very high, but for the producer, in fact, the final share they can get is not much.

The box office can be divided and the median agency fee is subtracted, leaving about 90% of the total box office. Producers and distributors can get 43% of this.

If the issuer is particularly strong, then the final share of the producer may be reduced by 15%, which is 28%. And this 28% is not 28% of the total box office, but 28% of the divisible box office.

For small producers, survival is so difficult.

In many cases, this 28% is still not the final account number. If certain films are at a competitive disadvantage in a certain period, in order to increase the number of film screenings, the producers and distributors must also promise to give the theater rebates, usually 3~ 5 points.

Swire Cinemas under Xiao Yao’s name is already the first in China. Although Huaying Entertainment has no affiliation with Swire Cinemas, after all, the majority shareholder is Xiao Yao. Huaying Entertainment often talks about distribution with other film companies. It will occupy a strong dominant position, and this is the first time he has encountered a strong producer like Zou Xingxing.

After a short while, Zou Xingxing and Jin Haidong walked into Xiao Yao's office with a smile.

When Xiao Yao saw Zou Xingxing, he had already made a decision.

He had to sigh that the functions of Feng Shui Talisman and Gathering Talisman were indeed extremely powerful. In these two days, first Wu Jingtian took the initiative to seek investment, and then Zou Xingxing came to discuss the issuance.

Everything went well for these two people, and the fortune was soaring. Wu Jingtian's fortune will not be realized until next year, but Zou Xingxing's fortune is already in sight.

Based on his observations, Xiao Yao roughly calculated that Zou Xingxing’s movie will eventually reach a box office of more than 3 billion yuan. If he is not always confident in his abilities, he might suspect that this result is wrong.

Last year's highest box office was only 2.4 billion, but this movie by Zou Xingxing had a box office of more than 3 billion, which is a huge increase.

Of course, he must hold onto such a good opportunity.