Empire of Shadows

In the past two days, funds had been continuously flowing into the company's project account. The director watched the money steadily increase, a smile plastered on his face that he couldn't contain.

The actual profits were much larger than he had imagined. After all the distributions came in, the total revenue had already exceeded 1.3 million, and it was still continuously increasing.

Reaching 1.5 million wasn't impossible. According to the contract they signed with the theater chains, the production company would receive 70% of the film's revenue, while the theaters would only get 30%.

For the theater chains, this kind of split was still profitable, but the profit margin was getting smaller.

To avoid a situation where the theater chains would pull the film after taking the lion's share of the revenue, the company included a binding requirement when signing the agreements.

They could only take the bigger share for about a week. Then, from the second week onwards, the percentage would decrease sharply and continue to adjust at a certain rate.

Eventually, the production company's share of the box office revenue would be higher than the theater's share.

At this point, if the theater was still willing to continue showing the film, the production company would continue to receive box office profits, but the percentage would no longer change.

If they were unwilling to continue showing it, then the film would be completely pulled from that theater.

The film was the private property of the production company. Once it was pulled, it was not allowed to be shown again unless a re-release agreement was signed.

This was different from a buyout system. Under a buyout system, once the theater bought the film reel, they could show it whenever they wanted. This was actually a huge infringement on the production company's profits.

But in the past, when a ticket cost five cents and film reels were the norm, not all theater operators could recoup the cost of the few hundred yuan they spent on the reel.

So this could be considered a kind of... benefit under special circumstances, but now, it had been terminated, at least at Wanli Film and Television.

The director was happily calculating these figures. On his desk was a newspaper he had already read, the number one newspaper in the federal film industry in terms of distribution and quantity: 'Movie News'.

'Movie News' was a bi-monthly publication, but this one was clearly not a regular issue. It was a special supplement.

For the sake of the 20,000 yuan sponsorship from Wanli Film and Television, the newspaper directly published a special supplement, and the headline on the front page was indeed worth the extra publication—

'The First Film in Federal Film History to Earn Over a Million, and the Story Behind It'.

This report was written by someone hired by the director at the behest of Lance. Most of it described the facts, with only a small portion potentially containing some exaggeration.

The report claimed that 'The Mystery of Angel Lake' was deeply loved by moviegoers due to its excellent quality and the new film genre it created, resulting in a box office miracle.

At the same time, the film adopted a box office revenue-sharing system, which had always been looked down upon, but achieved great success at Wanli Film and Television and achieved great success.

In the report, the director admitted that after deducting various expenses, their actual profit was over one million!

This was definitely an astonishing number, with a published return on investment of over 450%.

At this time, the investment in a film was usually between 200,000 and 300,000, and a return on investment of 450% had already made many people's eyes turn red.

In a Q\u0026A with the reporter, the director believed that the film's excellent quality was one reason for the impressive revenue, but the other, and most important, reason was that the film adopted a revenue-sharing system.

He cited examples from film festivals, where some theaters were very optimistic about their film and even offered prices of 900 yuan and 1,000 yuan per theater.

The lowest theaters also offered prices of 400 yuan.

Of course, those theaters offering low prices were in more remote locations, in cities with fewer moviegoers. They couldn't afford to pay too much, or they might face losses.

If it were the old buyout method, they might only get 700,000 to 800,000 in revenue through these buyouts, which was the best-case scenario.

After deducting costs, the return on investment might only be around 200%, and that was only because its quality was excellent and people were willing to try it out.

But they changed their distribution strategy, turning the theaters and production companies into a win-win situation. The theaters only needed to bear the insignificant costs of electricity, personnel wages, and venue wear and tear, and they could get a huge share of the box office revenue.

The production company was not subject to the low price of a one-time buyout. As long as they believed their film was good enough, the more successful the film was, the more revenue they would earn.

It was a win-win situation.

He elaborated on these things in it, giving people a clear understanding of box office revenue sharing.

With the release of the special supplement, he believed that the entire film industry would soon be shaken.

At around ten o'clock, he began reviewing some recent film project proposals. Before he could review a few, the phone rang.

The moment he answered the phone, a hearty laugh came from the other end, which made the director lean back in his chair and relax.

He knew this person, a director and producer, a role that was almost everywhere these days.

Especially those production companies that had gradually developed from small investments, where directors often held multiple positions.

They might be a producer, a screenwriter, a cinematographer, or even an actor.

The guy on the other end had directed several relatively successful films and achieved some success. In this booming industry, he was considered a minor celebrity.

After a brief greeting, the other party asked a question: "...I read today's newspaper, which gave me a lot of inspiration, and also raised a question for me."

"How do you ensure that the theaters truthfully share the profits with you according to the contract you signed?"

"Some people have tried it before, but they encountered many problems."

Refusing to pay box office revenue sharing, deducting and tampering with real box office data, and even various private copies.

It could be said that it was basically difficult to make money with this model.

The director chuckled and said, "We have our own distribution channels to ensure that no one can cheat us on these issues."

"And... the boss said that we will strengthen the supervision system of the entire channel to ensure that there will be no problems with every movie ticket in every show."

"The number of theaters we are actually showing this film in is not too many. As people become more aware of us, and more theaters are built, I believe our revenue will only increase."

"The first million in profit is just the starting point for us and the entire industry."

"Two million, three million, five million, or even ten million, are our future goals!"

"I firmly believe that we can achieve these goals, and it won't be too far away from us!"

Listening to the director's impassioned speech, the producer on the other end of the phone's breathing also became slightly heavier.

They had recently completed the filming of a film and planned to release it in the fall.

The company discussed it and decided that with the increase in movie ticket prices, they could appropriately increase the average buyout price to over 800 yuan.

This way, as long as they could complete sales to 500 theaters, they would have a gross profit of 250,000 yuan.

After some simple operations, their net profit could be around 200,000 yuan.

With a total investment of 150,000, a 100% net profit was already far ahead of their peers.

But this was just their prediction. If they couldn't sell to 500 theaters, or the average price couldn't reach 800, then their net profit wouldn't be that high.

Originally, he didn't have many good ideas about this situation. After all, everyone had been doing this all along, until he saw today's special supplement of 'Movie News'.

He suddenly realized that they actually had another opportunity.

If he only wanted to understand and probe a little before the call, then the director had already convinced him during this call. He was moved.

"If... I mean, if we use your channels to release the film in major theaters, what do we need to pay?"

Hearing the other party say this, the director's face was already full of smiles, but his tone didn't seem so eager.

He used a calm and composed tone, without any emotional fluctuations, and said, "We need to get revenue from the box office."

"The head office has already talked to me about it."

"For total box office revenue below one million, we charge 9%."

"Between one million and two million, it's 8%."

"For every million increase in box office revenue, we reduce it by 1%, with a limit of five million, which is 5%."

"If your box office can reach ten million, then the split is 4.5%, and twenty million is 4%."

"If you are confident in your film, I think you can give it a try."

The producer listened and recorded these detailed data with a pen. He was just a producer, and there were investors and shareholders behind him. He still had to discuss it with them.

But he had a premonition that this model would soon become popular.

"I personally am very willing to choose this distribution model, but I have to discuss it with them. I'll give you a call when I have a result."

He paused, "When are you coming over for a visit? Let's chat privately. We have two films that need casting recently, and you can help us with some suggestions."

This was a typical hint. The director didn't refuse, "I'll give you a call when I have time."

The two chatted about some other things in the film industry before hurriedly hanging up the phone.

The phone had barely been hung up when it rang again. It was the vice president of a film company, inquiring about how the director guaranteed revenue with their box office split.

Until three or four in the afternoon, almost all the calls were about these issues, all wanting to obtain assistance with this distribution method.

After all, they were too envious. Who could refuse to make money, to make big money?

Capitalists are never philanthropists. If making people eat dirt could make them big money, tomorrow 95% of the world would be sitting at the table eating dirt.

Once a clearly more profitable plan appears, they can't refuse it.

Especially when they can't figure it out themselves, they can only rely on Wanli Film.

The director planned to talk to Lance to see if they should spin off a company to specifically handle this matter.

At the same time, Jordan and his people had already entered King's Harbor City.

Death Angels is a large-scale criminal group. They have their own symbol, just like the Lance family members have a red armband on their left sleeve.

The Death Angels' symbol is a winged skull, with a ball of black flame in the skull's eyes, each flame containing a blue highlight.

Death, angels, souls, and evil flames - such a pattern is extremely impactful to the people of this era!

They didn't rush to make trouble for that Wanli Film company. Instead, they found a small restaurant to sit down and fill their stomachs.

"The food here is filled with a rural fishy smell, I really can't stand it!" Jordan ate a little bit and then stopped enjoying the food.

In fact, the food itself was no different from the food in New Gold City, but he just felt that the food here was not as good as the food in New Gold City.

He could also find many problems, such as not fresh enough, not tender enough, not... He had many reasons.

As long as his prejudice still existed, he would have countless reasons.

The others weren't too picky. As long as it was meat, as long as it tasted okay, they didn't care.

Jordan walked over to the restaurant owner, a large cigar in his mouth, "How much?"

A total of four tables, more than twenty people. The owner quickly calculated, "Sixty-seven dollars, sir."

Jordan took out his wallet from his pocket, counted out ten extra dollars, and placed it on the counter.

The owner looked at him somewhat puzzled. He smiled, cigar in his mouth, and said, "I want to ask about something. As you can see, we are all from out of town."

The owner glanced at the people behind him who obviously didn't look like locals, nodded slightly, and then put the money on the counter into the cash box, "No problem, as long as I know it."

Who wouldn't want to do a good deed that earns them ten dollars for nothing?

Jordan had a smile on his face. His years in the gang had taught him to be careful when he needed to be.

"Do you know Wanli Film?" he asked.

The owner nodded, "I know. I really like watching 'The Mystery of Angel Lake' that they filmed, and it's very realistic. Everyone says that there is indeed an oil drum named Jason at the bottom of Angel Lake."

The smile on his face made Jordan a little confused. The owner looked at the blank look on his face and realized that this hellish joke was too niche for outsiders.

He quickly explained, "This is a joke that only locals know, sorry, I forgot you were from out of town."

"Anyway... I know this company."

Jordan nodded, "Is it a local gang's business?"

Thinking of his old friend Mr. Ceret's severed little finger, this was obviously a gang's method and means.

To connect Wanli Film with the Lance family would definitely not be an easy task.

In fact, he could completely infer that the two companies might have the same boss by inferring Wanli Film and Wanli Labor Service, but in the Federation, it is difficult to look at the problem this way without concrete evidence.

Maybe there's no relationship between them?

So the owner shook his head, "I don't know much about this company, I've only seen their movies."

Jordan didn't continue to pursue this question, but changed the subject, "How many relatively powerful gangs are there in your area now?"

"I heard that the Five Great Families are finished?"

This was a topic the owner liked. He nodded, "Yes, four of the Five Great Families are almost finished, only the Pasreto family still exists."

Jordan nodded again, "Then who is the strongest in the city now?"

The owner looked up and down again at the person in front of him who was smoking a cigar and didn't look so 'honest'.

He thought for a while, "It should be the Lance family. They are undoubtedly the strongest gang here, without a doubt."

"Besides them, there are actually some small gangs, but those gangs only control a certain block and don't have much influence."

"Do you want to make trouble for them?"

"Or cooperate with them?"

"If it's the former, I advise you to be careful. Messing with the Lance family will be a big trouble for you."

Jordan "Aha"-ed, looking indifferent, "I really haven't encountered a guy who could be a big trouble for me, I hope this gang can give me some fun!"

"But I still want to thank you for your information, you have helped me a lot."

At this time, he had basically locked onto the two organizations, Wanli Film and the Lance Family.

The former was the film company that injured his good brother, and the latter was very likely the people who went to New Gold City this time.

Jordan wasn't really interested in gangs in such remote places, even though people say that King's Harbor City is the engine of the Federation's economy.

But for someone who has lived in Gold State for decades, most of his life, King's Harbor City is still an emerging city and not that great.

Whether it is or not, he will know when he goes to their door.

Soon the owner watched these people leave, and also saw the winged skull pattern on their vehicles, and then dialed his uncle's phone.

His uncle lived in the Imperial District. The first generation of residents in the Imperial District were actually locals, but later more and more Imperials lived there, gradually squeezing the living space of the locals, and eventually making that place a gathering place for Imperials and immigrants.

However, his uncle didn't move out. He had lived there for decades and was used to it.

Last time he also heard that his uncle was now working for Mr. Lance, and if he found out any information, he should tell Mr. Bolton.

If this information was valuable, then he would be able to receive varying amounts of rewards.

It is said that the minimum is five or ten dollars, and the maximum has no upper limit!

The phone was quickly connected, "Someone just ate in my shop. One of them asked me about Wanli Film and the Lance family. I didn't say anything."

"I think this thing is a little strange. They all look like they are from out of town, and the car is printed with another winged skull. They may be here to cause trouble."

"Do you think this news is useful to you?"

The old man's excited voice came from the earpiece, "It's too damn useful!"