The entertainment industry shouldn't be like this

Chapter 77 There are fat sheep overseas

In the capital of China, in the conference room of the presidential suite of a luxury hotel.

An island man with a short haircut, a suit and leather shoes was respectfully reporting to the middle-aged man behind the long conference table.

"President Ito, I have made preliminary contact with people from Dunhuang Pictures."

The middle-aged man nodded and said, "Harada, tell me what you know."

Harada looked serious and answered without pausing: "Dunhuang is rising rapidly again. In the future, more and more movies will be invested in and produced, requiring large sums of money. He has a very positive attitude towards overseas investment."

Ito smiled when he heard this.

Where funds are needed, investors like them can see where the profits lie.

“What financing options did they offer?”

Harada said: "Dunhuang has proposed different plans. The first one is for investors to directly share the profits from the film's profits..."

The fact that they can recoup their costs shows that Lianya Entertainment has not cheated them too badly.

As a result, after a few years, the principal was barely recovered, and there was no return at all.

Moreover, there are many environmental factors that affect movie profits. Even an excellent movie will be unlucky if it encounters another even better movie in the same period.

With so many concerns, why should you consider investing in China Entertainment?

There is nothing we can do about it. The economic growth of island countries is slow, the market is relatively small, and domestic investment risks are higher.

even……

This is not the first time that their investment fund has invested in China Entertainment.

Films are high-risk investments, and each film is a new brand. Unlike other industries that have a strict reference system and quality standards, film production is more uncertain.

Harada explained: "Yes, but those are not caused by human factors. Moreover, the profitability of any film in Dunhuang that is successfully completed is astonishingly high!"

But stepping on the trap once is enough. Ito doesn’t intend to step on it again: “Let’s talk about the next plan.”

"Yes." Harada bowed in agreement.

Ito instantly understood Harada’s unfinished intentions.

China Entertainment treats all overseas investors, and even domestic lay investors, the same way - investors can only play the role of providing money and have difficulty participating in the core process, let alone post-production.

As for how many of them can unite?

Please, we are from different countries, no one knows anyone, and there is no trust at all, so how can we talk about unity?

Ito didn't think too much and made a decision immediately: "You contact the Dunhuang side immediately. I want to interview their person in charge. I must get ahead of those Indians."

"Yes." Harada paused and continued: "The second option is to raise funds from us in installments in the form of high-yield bonds. The bonds have fixed and stable income. As for the specific rate of return, we haven't discussed it yet."

Ito's face became extremely ugly.

What was it like for them to invest in China Entertainment for the first time?

Just like a pilgrimage, there are almost no return requirements for the Chinese entertainment films that participate in investment, as long as they are allowed to invest.

Moreover, it is impossible for Dunhuang to invest in movies that have a high chance of success.

Needless to say, last year, "Peking Holiday" cost an investment of just over 10 million yuan, but the profit it brought back was comparable to that of a blockbuster movie. It is definitely a model of making a big deal out of a small amount.

Secondly, China Entertainment has a halo in the island country, and it will be much easier for the foundation to raise funds if it has the reputation of investing in China Entertainment.

"It seems so at the moment." Harada agreed.

It can't be calculated like this.

So, the only question now remains, how to obtain a higher rate of return from Dunhuang?

Ito thought carefully, saw Harada hesitate to speak, and said in a deep voice: "If there is anything else, tell me."

"The Genius" is still being shown all over Asia!

Although the specific investment is not known, it is said that Dunhuang has recovered all costs through embedded advertising sponsorship.

Harada naturally understood what he meant.

The reason why I still choose to invest in China Entertainment is that their foundation has at least been through pitfalls and has some experience in hedging;

What's even more deceptive is that Dunhuang called them together, clearly because he wanted them to lower each other's prices so that they could reap the benefits.

Based on this calculation, it seems that it is more cost-effective to choose to share the profits from the movie profits.

Only then did they realize how deep the water in Huayu was.

When there is only one investor, it is natural to be greedy and raise prices. When there are more than one investor, such greed can only be regarded as stupidity, rather than a reasonable means to maximize returns.

Hollywood is the same, maybe even worse.

This year it’s even more exaggerated.

But Ito quickly shook his head seriously.

Harada smiled bitterly and said: "I communicated with the person in charge of the Indian side and found that they are just like us who invested in China Entertainment for the first time..."

When Ito heard this, he interrupted him as if he was furious: "No, we won't consider this."

Ito was stunned and lost his voice: "Dunhuang called investors from all over the world at the same time?"

The key is that there really is more than one investor.

In a word, Dunhuang must have made a lot of money in this film!

This is obvious.

Even if it invests in China Entertainment, it positions itself as an investor, not as a collaborator in China Entertainment's film industry.

Ito is very self-aware.

If there is a film every year that manages to make a big picture out of a small one, it can be regarded as an excellent Dunhuang vision.

Ito knocked on the table, thought for a while, and murmured: "This sounds a bit sincere."

Harada pointed to the floor and ceiling and said softly: "In the presidential suites on the upper and lower floors of the hotel, there is also an investment group from the Northern Dynasties and an investment fund from India."

As for the profitability rate, Ito didn't even dare to think how exaggerated it was.

"But Dunhuang also cheated many investors a few years ago." Ito thought of the information he had read.

Dunhuang's frequent operation of small and broad-based operations is theoretically impossible to continue.

Being able to give this plan shows that Dunhuang should not intend to trap them to death.

China Entertainment has independent and systematic financial calculation rules. Within the scope allowed by the rules, even if it is a blockbuster movie, the net profit may be negative.

In comparison, the huge Chinese market is full of investment opportunities, and all walks of life are profitable.

They also generously arranged to live together, for fear that they would not know that there was more than one choice in Dunhuang?

Harada nodded helplessly.

——The cultural differences between the East and the West alone are enough to deceive them to the core.

A few years ago, we cooperated with Lien Asia Entertainment and adopted a method in which the investors directly share the profits from the movie.

Don't look at the fact that "The Genius" is currently being overtaken by the newly released "The Fury" in China. In real terms, the profit of the former is probably higher than that of the latter.

Ito nodded slowly.

Then I heard Ito gritted his teeth and said: "Baga, damn the Northern Dynasties and Indians, are you worried that you won't be able to be a fat sheep, so you are anxious to line up for the slaughterhouse?"

Harada bowed his head and retreated, thinking about the "fat sheep" issue for a while.

——Aren’t we more eager to be fat sheep?

…

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(End of chapter)