Inherit For Three Thousand Years

Chapter 684: 1.5 billion guaranteed

If you can win the distribution agent of Zou Xingxing's movie, not only will the direct income be amazing, but the indirect income will be what Xiao Yao values ​​most.

The successful distribution of such a high-grossing film with a record-breaking box office is very important to the external image of Huaying Entertainment. With this good news, the company’s stock price will inevitably rise. Xiao Yao is the major shareholder of Huaying Entertainment. , This piece of income is the real big head.

After the routine greetings, Xiao Yao went directly to the topic, "Director Zou, we at Huaying Entertainment are very willing to cooperate with a big director like you, but your distribution conditions are too harsh, I think it is difficult for any distribution company to accept yours. Claim."

"Mr. Xiao, I’m a relatively straightforward person. I don’t want to hide anything. I just say what I think. I put you Huaying Entertainment as the first candidate partner for only one reason, that is, Swire Cinemas is Xiao The industry under the general name, otherwise, if I only start from the interests, I have a better choice.

It is precisely because of this that I even lowered the conditions of cooperation. If the negotiation with your company fails this time and finally chooses to cooperate with other issuing companies, I will definitely increase the conditions of issuing. "

Even in front of Xiao Yao, Zou Xingxing still spoke very hard.

"I can hardly imagine that if Director Zou further improves the issuance conditions, which issuing company will accept it." Xiao Yao said.

"Then I will tell you the truth. Mr. Lei of the Dadi Company had already approached me the day before yesterday. He was willing to give me a guaranteed minimum issuance condition of 1.8 billion. If it weren't for the first two cooperations to be unpleasant, I would agree to Mr. Lei. The conditions are open." Zou Xingxing said unhurriedly.

Xiao Yao could see that Zou Xingxing shouldn't exaggerate deliberately, which is very depressing.

If he hadn't seen Zou Xingxing with his own eyes, Xiao Yao would definitely not agree to his 1.5 billion guarantee request. With such a huge risk, he would rather give up this cooperation.

Mr. Lei of the Dadi Company does not have the skills of his unpredictable prophet, but he is willing to give a minimum issuance condition of 1.8 billion yuan. Such a big gambling is really speechless.

"The courage of President Lei is amazing, but I think that under this premise, President Lei will definitely be very demanding in other aspects. The guarantee of 1.5 billion yuan is too risky. If Director Zou must adhere to this condition , It’s not impossible to consider, but with such harsh conditions, accordingly, you must make concessions in other areas."

Since Dadi Company is willing to provide a guaranteed minimum issuance condition of 1.8 billion yuan, he cannot ignore the 1.5 billion guaranteed minimum issuance requirement proposed by Zou Xingxing.

The concept of guaranteed issuance has been very popular in the past one or two years.

The so-called guaranteed release means that the distributor and the producer set a box office number acceptable to both parties in the contract. Even if the box office does not reach this number after the film is released, the distributor must divide the account with the producer according to this number. If the actual box office is high If the number is guaranteed, the issuer will receive a larger amount than usual in accordance with the contract.

To put it simply, in this way, the producer will not lose money and will transfer the box office pressure to the issuer before the release. Although the issuer has taken the pressure, it also has the opportunity to enjoy additional box office revenue.

For the distributor, guaranteed release is like a gamble. The movie is a high-risk product. As a guarantee for the box office of a movie, it is equivalent to guaranteeing the gambler, and the risk is doubled.

With such a huge risk, the issuer must of course put forward more profit requirements.

Zou Xingxing was ready to be rejected, but he didn't expect Xiao Yao to accept this harsh condition.

He quickly said: "If Mr. Xiao is willing to agree to the 1.5 billion minimum guarantee, we can naturally negotiate other conditions."

"If the final number of guaranteed issuance is set at 1.5 billion, then I have two requirements. First, the final box office is below 1.5 billion, then the issuance agency fee is 15% of the divisible box office; second, the final box office exceeds 1.5 billion For the above part, then our Huaying Entertainment will get 80% of the excess profit."

Zou Xingxing frowned and said, "Mr. Xiao, are you kidding? I can't agree to such a harsh condition."

"I'm not kidding, I think it's fair. As far as I know, Director Zou's "Journey to the West" released in 2013 was a guarantee agreement with Dadi Company. If my news is good, Dadi Company At that time, the box office guarantee was 300 million yuan. If the box office exceeds 300 million yuan, they will get 70% of the profit.

Only in the past three years, the minimum guarantee amount has been increased from 300 million yuan to 1.5 billion yuan. The rate of increase is really too great. For the part of the box office that exceeds the minimum guarantee, I should ask for a little more income. It should be. "Xiao Yao said naturally.

Zou Xingxing didn't expect Xiao Yao's news to be so well informed. He even found out the agreement he signed with Dadi Company back then.

In the Lunar New Year file in 2013, Zou Xingxing signed a guarantee agreement with Dadi Company for "Journey to the West" at that time. Dadi Company guaranteed the box office of "Journey to the West" 300 million yuan, and paid Zou Xingchi 88 million yuan in advance. If the box office of the film is less than 300 million yuan, the loss will be borne by Dadi; when the box office of the film exceeds 300 million, Dadi will get 70% of the excess profits.

As a result, the final box office of "Journey to the West" was 1.246 billion yuan, and Dadi's net income was 140 million yuan, and the income far exceeded the producer.

The guarantee issuance signed with Dadi Company three years ago has left a profound lesson for Zou Xingxing. Although he is still leaning towards guaranteed releases, his expectations have increased countless times. The lesson that the guarantee amount is too small is enough to use it once, and he doesn't want to have a second time.

This time, he proposed a guaranteed minimum issuance condition of 1.5 billion. Many people thought that he was whimsical, but he was always reluctant to let go.

Although Xiao Yao accepted the harsh conditions of his 1.5 billion guaranteed issue, Zou Xingxing was also a bit difficult to accept the two demands he made at the same time.

Zou Xingxing thought for a while and said: "15% of the agency issuance fee is too high. I can't accept this. If the maximum is 10%, I can still reluctantly agree. The 80% of the profit at the box office exceeding 1.5 billion is also difficult for me. Accept, I can accept up to 60%."

For Zou Xingxing, the latter two additional requirements are actually not completely unacceptable, even if Xiao Yao's conditions are fully agreed to, they are still acceptable.

The minimum guarantee of 1.5 billion is the most divergent condition. As long as this is ensured, Zou Xingxing’s production company can get enough revenue.

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