Chapter 1181 Chain reaction
Palmatt glanced at Hastings. Is this famous Silicon Valley person hiding his weakness?
He thought about this previous experience. He was kicked out by the company he founded and then invited back. Some things might have happened in the middle that he would admire Feng Yiping very much.
No wonder he is so cautious now in front of Feng.
He looked at Feng Yiping leaning on the sofa and looking at the faraway sky, thinking about it. He couldn't imagine what the side behind his gentleness would look like in general, no matter what, he was a very gentle young man who was not as bastard as other famous figures in Silicon Valley.
However, even though he had experienced the baptism of artillery fire in the Middle East, he vaguely felt that it would be better not to have the chance to see the other side of him.
"Feng, I think, for one reason, we should also set up our own distribution department," he said.
"A reason?" Feng Yiping thought for a moment and laughed immediately, "Palmatte, a reason you said, I think we can all guess what it is."
Most of the time, I am reluctant to share the profits I have to give to the issuer.
The distribution fee is not low. Even the great director Spielberg, whose DreamWorks movies were released by Paramount, was 9%, or nearly 10%.
The expenses given to publishers by other studios will account for 13% to 15% of the total box office revenue.
It is indeed a considerable expenditure.
For people like Palmatt, they can't be happy no matter how much they watch the real money income be divided.
Palmatt glanced at Feng Yiping helplessly, I was wrong. This is also a little bastard who always attacked me with that little bit, but is it wrong to be frugal?
But why is it difficult for me to be really angry when faced with this little bastard's joke?
"You guessed it, but it's not the case you thought," he said.
"I'm sorry, I'm joking, Palmatte, you say, I'll listen carefully," Feng Yiping said seriously.
"I wonder if you have noticed something strange before, that is, some Hollywood movies have always had a good box office revenue, but on the books, these movies are often losses,"
There is something to say here? Feng Yiping really doesn’t know this.
"We know that Hollywood's assembly-based production method can easily make movies less and less creative. Therefore, another feature of Hollywood is the star system and the appeal of celebrity actors makes up for the innate weakness of assembly-based production,"
This seems to be the same in China later. However, the starring actors of these blockbusters in Hollywood have their acting skills, and many of the domestic leading actors of movies and TV are only famous.
"But this in turn has increased the voice of celebrities. Now more and more celebrities will ask for their own pay, including box office share," he said.
This, later, the most popular stars in our Great Heaven seemed much simpler, too lazy to be so troublesome, and they would directly offer a post-tax pay of 100 million or 80 million.
This shows that they are still self-aware. If they follow the Hollywood model, in most cases, they will not get the share of the money - the movie is so bad that no one can watch it, so where can the box office share be obtained?
"What you mean is that the film company is trying to make these movies seem to lose money in order to reduce the pay for those stars?" Before Palmatt could explain the following, he immediately figured out the obstacles.
"That's it," said Palmatt. "For example, a movie by Warner, whose production cost is 30 million and its box office revenue is 100 million. It should be a profit, but on the books, it's not like that."
"In this box office of 100 million, they will set aside 15 million in a 15% ratio as the issuance fee. Because they issue it themselves, the 15 million is actually in their own pockets."
“Then, there’s $25 million in advertising costs, at least half of it here, and they’re paying themselves because they have their own publicity department,” he said.
"Add to add 30 million yuan in production costs, that's already up to 70 million yuan,"
"And this box office of 100 million yuan must be at least 40%, that is, 40 million yuan, which belongs to the theater chain," Feng Yiping interrupted.
He is more clear about this.
In the American film industry, most film companies and theater chains do not have a fixed share ratio. Generally, the share ratio of film companies in the first week is high, which may be as high as 90%. However, in the following weeks, the share of theaters is getting higher and higher.
On average, the film company's share of the box office is about 60% to 65%.
"You're right. This adds up to 110 million, not counting other expenses. For example, you have to pay 4.1% of the movie union, which means you have already lost 10 million, but not all that. There is another important financial expense here that has not been calculated."
"Usually, when filming, all expenses are provided by one of their foundations, that is, they are loans and interest, which are naturally calculated to high places,"
"Hahaha," Feng Yiping slapped the sofa and laughed, "that is, borrowing his left hand and then generating a few million more interest,"
This was the first time he heard about this. Such a routine really made him a little amazed.
"I think those people on Wall Street are really wronged. When it comes to making money in their pockets, the innovation and shamelessness of these guys in Hollywood are obviously better than them,"
"Oh Palmatte, Feich, I don't mean to you,"
"It's okay, we just want to do this, we can't even have a chance," Feiqi spread his hands.
"So Feng, do you know now that if we make movies ourselves, release them ourselves, and promote ourselves, how much revenue will increase, how much expenditure will be reduced, and how much profit will be generated in the end?" Palmatt asked.
"It's clear," Feng Yiping nodded heavily, "We must do the issuance business,"
"But, in the short term, such as this year and next year, if we have a movie, it is probably better to have the six major distribution channels,"
A new and tender distribution company that has not achieved any results before, whether in schedule or schedule, it is naturally impossible for the six major publishers who have created a lot of profits for theaters, and have the same right to speak.
"In this way, Feiqi, you will join Netflix and join our six major studios, and I prefer Disney or Fox to see if I can negotiate a three-year distribution agreement and try to control the share to about 10%,"
“With Hastings’ support, I think I should be able to do the job,” Fitch said.
Hastings is the key figure in their DVD rental and sale.
"Then next, we have to set up a distribution company to serve Marvel and Netflix in the future, Hastings, don't be upset, one more channel, one more path, that's always a good thing, right,"
"I didn't," Hastings said hurriedly, "Feng, I think you're right, just not to release our movies in the cinema, but to win awards, we also need professional institutions to help us operate,"
This is another public secret, such as the Oscars, and those films that are interested in competing for the Oscars, have no public relations for this.
The same is true in our country. Otherwise, why are there some stars with no acting skills who have won high awards? You really think that those judges are blind, but they just do their work well.
"In addition, I suggest that the candidates for the head of this distribution company can seek Cummins' opinions. There are many senior executives in Hollywood investment banks who are full-time in charge of film investment," he added.
"Well, I will remember this," Feng Yiping nodded.
If Wall Street has the right candidate, it is really good.
Wall Street is a place that connects the world. Not only are the senior executives who are all talented, but everyone has their own connections.
"Then the next question is how to make the issuing company we set up survive,"
If you set up a distribution company and just serve Marvel and Netflix in full-time, the cost would be too high.
"In addition to looking for opportunities in various film festivals, I think we can also try to create some opportunities,"
He looked up at Qingkong again and began to think about this question.
When I lowered my head, I could see that there seemed to be two people sunbathing in the backyard of the house below. Collins must have skipped class.
"I wonder, can we do this, Randolph, we add a new project to initiate and hold a world-class micro-film competition,"
"Microfilm competition?" Randolph's eyes lit up, "This is good,"
Although in China, the movie "The Madness Caused by a Steamed Bun" that almost angered the big director has not yet been released, micro-films around the world have become a new wave.
For youtube, it is definitely a good thing to be able to hold such an event that has attracted the attention of many people.
"How to do it yourself, you plan it yourself, I just hope...,"
"Let the newly established distribution companies have the opportunity to meet some new or new directors?" Randolph understood Feng Yiping's meaning in seconds.
“It’s not just about getting to know each other, but also about the situation, the distribution company can invest in the movies of these newcomers.”
Instead of jealous of fish in the abyss, it is better to retreat and weave a net.
It is conceivable that it is always a matter of low chance to find a bargain at a film festival. Of course, with Feng Yiping's help, the chance will naturally be greater, but it is definitely more useful to hand over a group of good seedlings first.
The investment of newcomers’ movies is generally not too large, and only these movies that do not have too large investments are likely to have a big profit opportunity.
It's very simple. It's not easy to have a box office of $1 billion for a movie with an investment of $300 million. It's just realized, and the box office is only more than three times the investment.
But if a movie invests $3 million, it is not impossible to achieve a box office of $30 million, if it is operated properly, then its box office revenue is 10 times that of investment!
"I hope that in the future, many film directors can show their own movie titles, and feel honored,"
"Then it seems that this job is not easy to do," Palmatt said.
The subtext of Feng Yiping's words is naturally that the movies issued by the distribution company have won many awards or released movies, which have generally received praise from film enthusiasts.
No matter either of these two things, it is not easy.
"I think it's a job worth challenging," Hastings said.
"Okay, let's talk about how you families cooperate next to you, so I won't care," Feng Yiping looked at the two children who were leaning against each other and were about to fall asleep, and said, "I promised them that I would take them to the playground to play,"
They all came to Los Angeles with their children, and it would be really unreasonable not to take them to the playground.
"Xiao Zha, it's good that you're here, and there's something about you here. Think about it, Facebook, will definitely undertake some of our publicity activities in the future. Do you want to make money?"
"The boss is definitely unhappy if he doesn't make money, so, I think,"
Xiao Zha's answer made everyone laugh.
"So, just listen to the user's request, don't be impatient, otherwise the boss will be unhappy,"
"Haha," Hastings and the others laughed again.
But in fact, they envied Xiao Zha, who looked quite young. She was so young and so valued by Feng Yiping. There is no need to say about her future and future.
Feng Yiping suddenly remembered something. Speaking of which, there is one that has a deep impression on him. It is the Australian film that is very heavy but touching and tear-jerking. It seems to be called "The Countdown to Father's Love". Can Netflix use this creativity to make one and make a comeback in the film industry?
Wu Qian walked over and said in his ear with a strange expression, "Yiping, another girl has come to find you. Irving seems to know her, and her name is Alisonbri."
Oh, she is here too?
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Chapter completed!