China Entertainment: Director’s happiness is so simple
Chapter 59 Make money before shooting
Huayi, Mr. Wang put down the newspaper and sighed: "We won the glory of the country quietly, and the road is safe and the road is quite wild."
Mr. Xiao Wang on the side also sighed: "Jiang Wen is his teacher, and Brother Kai thinks so highly of him. With the two of us helping, it won't be difficult."
"I don't think so. Guorong won't accept a script like that. We've asked him a few times. Has he agreed?"
Mr. Wang clicked on the words "Source Code" on the newspaper and said, "So Lu Ping'an's movie is the key."
"It's science fiction again. Young people have different ideas. It seems that Guorong wants to play something new."
Mr. Wang smiled and agreed.
There is no such thing as jealousy. At least now both parties are in the same industry and have a competitive relationship, but they are all in the same circle after all. The most important thing is that their film is the only one, which is completely different. It is threatening to a certain extent. Just a lot less.
Compared with jealousy, seeking cooperation is actually the way normal people should think.
Mr. Xiao Wang asked: "Want to vote?"
Mr. Wang nodded: "30 million is not particularly high, but it is not necessarily high for Lu Ping'an. Let's take a look at it then. The script of this film is probably not bad, even if it is average, I won't lose much if I watch it. At the moment The only two blockbusters are modern films, so it is much easier to make back the money than "Hero"."
Mr. Xiao Wang smiled and said: "Indeed, many advertisers have become red-eyed recently."
"Hero" is an ancient martial arts film, and there are almost no opportunities for advertising placement. The only way to intervene is from peripheral channels, and the effect will be much worse.
Judging from the information currently disclosed by "Source Code", unless Lu Pingan refuses advertising sponsorship, there will be too many opportunities for advertising placement in modern films.
In addition, "Source Code" is the second most popular domestic blockbuster after "Heroes", and it is also the only two domestic blockbusters so far. The advertising space will probably cost a lot.
Needless to say, the high price of advertising sponsorship means a lot to the film producers.
Therefore, Huayi's big and small kings had already decided to invest after knowing the news.
There is only one question left: whether Lu Ping An will give up its share.
The King said calmly: "He is not a person who doesn't know anything. If he hangs around in the circle, he will definitely know this. It just depends on what he wants."
Mr. Xiao Wang agreed: "Let's talk about it first. The third master is taking the lead, so it's not a big problem to make some profits."
At the same time, other investors and advertisers also have the same idea.
There are currently only two domestic blockbusters, one of which has basically lost its chance. I don’t know if there will be another one in the future, so this one is the only choice at the moment.
April 26th is a good day to sign contracts, trade, and start business.
On this day, several powerful investors, entertainment companies, distribution companies, and advertisers gathered at Star Film and Television to gather. . . Franchise negotiations officially begin.
Early on the morning of the 26th, Star Film and Television gathered the first batch of investors.
Big names join in, China Film leads the investment, and distribution is strongly supported. As long as the quality of the film is good, you will make money if you invest!
Lu Pingping spoke.
Cooperation is possible, but resources must be exchanged. If you only pay, you can wait for the next batch, which means buying shares at a premium, and you may not be able to buy them yet.
There are five companies in the first batch. In addition to China Film, there are also Huayi, Guangguang, Xingmei and Eagle Emperor from Xiangjiang.
Director Ren of Shanghai Film Studio also approached Lu Ping An this time, but in the end they chose to cooperate in distribution. I don’t know why. He only said that he must bring them with him next time he makes a movie.
Huayi and Taihe have now formed Huayi Taihe, which is very strong. Guangguang has previously cooperated with Lu Ping'an in "Comet". This time, they probably still want to use their publicity advantages to cooperate. Star America has already started to establish a theater management company. , Han Sanpin said that they will be one of the first batch of 30 theater chains. Eagle Emperor was found through Han Sanpin's route. Lu Ping'an's "The Tuner" reached a box office of 16 million in Hong Kong, which is a very good result. , even if Guorong doesn't join, they still want a piece of the new movie.
Lu Ping'an didn't talk nonsense. After showing everyone the rough script and a few special effects template samples, everyone spoke highly of the project.
Lu Ping An has continued to have its usual distinctive characteristics, with an excellent script, a solid brand name, and good prospects.
The investment is determined, just how to replace it, and some production details.
In the first wave of profit sharing, the total investment is 30 million. In addition to the 3 million from China Film, Lu Ping An will distribute 9 million and keep 60% for itself.
In the end, Huayi and Lu Pingan reached a mutual investment in the project. This time, they invested 3 million, accounting for 10% of "Source Code". Lu Pingan exchanged it for Huayi's investment opportunity of up to 20% of a future movie.
Lu Ping'an's target is "A World Without Thieves", which is a hugely profitable film with a cost of 30 million and a box office of 130 million. The cost was recovered before it was released. The total advertising revenue is as high as 40 million, which is equal to 20% of the investment. 6 million, which theoretically means a profit of 2 million. In fact, after deducting the publicity and distribution costs, it is equivalent to him spending just over one million to get a 20% share of "A World Without Thieves".
At present, Huayi does not know that Lu Ping An is targeting this film, but unless they never do it, then the agreement will be invalid. As long as they do it, Lu Ping An will be able to participate.
Huayi directly agreed to this. Betting on the future is the most illusory thing. Lu Ping'an said this, in their view, it meant taking the initiative to sell favors, so the 20% was simply given.
Enlight and StarMedia jointly invested 3 million, taking advantage of future theaters, media and other advantages to capture 10%.
Don’t underestimate this 10%, it is very helpful for publicity and distribution, and may save tens of millions of publicity and distribution expenses in the future.
The Eagle Emperor took the remaining 10% and provided it to Xiangjiang and some overseas regions for separate issuance to the Eagle Emperor. Half of it was to give Han Sanpin face, and the other half was for their strength.
"Source Code" is not like other Chinese-language films. It is a work with a balance of Chinese and Western elements, and its global box office is expected to be promising in the future.
Of course, Lu Ping'an only gave it to some areas. In other areas, he also had film producers. This could also put some pressure on the Eagle Emperor, so as not to mess up and bully him into not understanding the overseas market.
The first round is over, and the next round will be for the remaining investors. Lu Ping An will continue to divide 10%, totaling 3 million, divided into five parts, and the premium will be distributed to other investors, entertainment companies and other idle investors. The final average premium will be about 100% , 6.1 million was recovered, and Lu Ping An took part of the premium.
These idle investors may seem insignificant, but in fact Lu Ping An knows that the ones selected will all produce hit film and television works in the future.
Giving them an investment opportunity also gives your future self an investment opportunity, perfect.
For them, Lu Ping'an gave them face today, after all, he didn't need to separate themselves.
The above shares all have supplementary clauses. If the overspending is within a certain limit, the funds must be supplemented. Otherwise, the proportion will be calculated based on the actual funds.
Now that the shares have been allocated, the next step is distribution and sponsorship.
China Film has also joined forces with more distributors.
Practically speaking, this should be discussed after the finished film is released, but it does not affect it now. After all, there are no distribution restrictions, it is just a pitfall in advance.
Distribution expenses are settled at 10% of the box office account according to the region they belong to.
This is consistent with the future issuer settlement model.
After the matter was settled, several producers and publishers jointly signed an anti-piracy treaty.
Like "Heroes", in the future we will do our best to curb piracy in order to achieve higher box office.
Next, there are advertisers.
This is something that producers from all parties are very fond of.
Can I go back and watch this before it's released?
Lu Ping An still said: The starting price is 1 million, don’t buy less than this amount.
In one sentence, half of the advertisers will be driven away.
Among the remaining brands, half also want to see why Lu Ping An is so confident.
Guorong joined, invested 30 million, and strongly supported the release. It is the only domestic blockbuster.
This is indeed attractive enough.
But that’s not a reason to shout high prices.
The most expensive one of Feng Dapao's movies is only 1.5 million, and there aren't many shots.
Why are you?
As a result, when everyone knew that the movie would repeat the "8-minute" plot over and over in a loop, everyone couldn't sit still.
This means that as long as you get the main advertisement, it will be repeated at least 6 times in the video! There will also be several props that read out the brand name at least twice!
Now everyone understands that it's not that Lu Ping'an is loud, but that this movie is quite suitable for product placement!
Finally after 7 days of negotiations.
Obtrusive brand name line insertions that affect the plot have been eliminated.
Seek the best from the best.
In the end, 12 brands including Red Bull, Bird, Founder, Septwolves, Master Kong, Swarovski Eyewear, and Life Insurance decided on implantation plans.
Covering beverages, mobile phones, computers, clothing, food, automobiles, real estate, insurance companies, watches, cosmetics and other industries.
The total advertising sponsorship fee is 20.6 million!
Among them, the advertisement with the largest amount is for Bird mobile phones, with a total amount of 3.88 million.
So far, "Source Code" has recovered nearly 70% of its original investment even before it is released.
And this is only the income from implantation. In the future, there will be some scattered income from peripheral advertising, and the pressure to recover costs will decrease again.
This time, investors feel comfortable.
The film's box office revenue is promising.
All that's left is to see the finished product after the film is produced, and hope that Lu Pingan will not destroy the sign.
However, everyone still feels that Lu Ping An is a little more conservative.
No need to be so demanding.
Otherwise, the advertising fees can directly cover the cost, or even exceed the cost by a lot.
But Lu Pingping doesn't care about them.
90% of the red threads are hanging over his head. How can he want any kind of advertisement?
In the end, the total project funding has reached 37.1 million yuan, which does not include half of Lu Ping An’s actual investment.
For Lu Ping'an, the actual production cost is only 10 million, so in terms of production expenses, if everyone does not withdraw investment, he has already earned 6.5 million.
He earns half of the advertising fee, which is 10.3 million.
A total of 16.8 million.
And that’s not counting the money that must be spent on special effects.
In other words, he has already earned at least 16.8 million without paying a penny! And you can also harvest a movie and various valuable resources with huge potential.
The price is only to give out half of the share.
The key is that he is not afraid of divestment.
After all, the cost is only 10 million, and Guorong will not run away. He still has 10 million. Even if he has 20 million, he just can't get back so many resources.
If the investment is not withdrawn, there will be much more margin for future production costs and publicity costs, so there is no need to worry about overspending.
If Lu Pingan has no bottom line, he can learn from the great director Peter Chan and get a sky-high straw hat. . . Forget it, the bottom line is important!
Of course, since he holds half of the share, the production fee of 15 million must be paid into the relevant account first.
However, he has a special effects company. When the film enters post-production, once he hands it off, it will become his own again.
Moreover, Xiang Guoqiang said that Akers Special Effects Company is now a high-tech enterprise with an extremely low tax rate. If it is transferred, it will be equivalent to another form of tax avoidance, and it will be reduced by at least 20%!
Overall, Lu Ping An is satisfied with this operation so far.
After all, the significance of making a blockbuster film is definitely not only about box office and profit, but also about connections, resources, influence, etc.
Now it seems, not bad.
Happy, of course.
But it’s not too early to be happy.
The next step is how to operate the plate smoothly and stably. . .
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