This star’s style is wrong

After chatting at the golf club, Fang Xing basically understood what Penguin meant.

Penguin Group's entertainment business group is interested in the content output of Ark Culture, so it intends to invest and hold shares.

In other words, it’s not Penguin Pictures that has its sights on “Spirited Away.”

"Spirited Away" can be regarded as an addition to the cooperation.

The entertainment business group of Penguin Group includes companies in the cultural industry such as Penguin Video, Penguin Pictures, and Penguin Music.

So far, the content exported by Ark Culture mainly includes songs and TV series.

Especially in the field of music, Ark Culture’s performance is comparable to that of giants in the record industry.

The two TV series that were released were also hits.

Therefore, in terms of cultural content, Ark Culture has great potential.

Senior executives of Penguin Video and Penguin Music hope that the group can hold shares in Ark Culture.

Only in this way can Penguin Video and Penguin Music steadily obtain the content output from Ark Culture.

In fact.

Since "The Beginning" became popular, companies that want to cooperate with Ark Culture in film and television have leveled the threshold of Ark Culture.

Moreover, some film and television companies have already made large S+ investments. As long as Fang Xing nods, big projects can be launched immediately.

If Ark Culture continues to develop, Penguin Video may not be able to obtain exclusive broadcast rights in the future.

Not just TV series, competition in music is equally fierce.

Now, the competition between the three major domestic music platforms is mainly focused on the competition for music copyright.

Music is more sticky than TV series.

Generally speaking, when viewers watch TV series, they usually only watch it once.

If you particularly like a drama, you may watch it twice or three times, but for most TV dramas, viewers will only watch it once.

Music is different. If you like a song, you can keep playing it on repeat.

Ten or twenty years from now, when I think of these old songs, I will still listen to them.

Whichever music platform has these songs, listeners will go to that platform to listen to them.

If a music platform wants to gain more users, it must have a large enough music library.

Therefore, competition for song copyrights on music platforms is more intense than on video platforms.

After several major domestic music platforms have gone through several mergers and acquisitions, 99% of their songs are shared across multiple platforms.

Among music platforms, the real competition is the remaining 1% of song copyrights.

For the three major music platforms, exclusive copyright is not necessarily required, but it must be available, otherwise users will be lost very quickly.

The total sales of Fang Xing's new album that he just released have reached 120 million, which is a solid album sales ceiling.

The current situation is that any music platform that fails to obtain the music copyright of Ark Culture will be rubbed on the ground by its opponents.

Therefore, in terms of business layout, many companies in Penguin Group's entertainment business group hope that the group can invest in Ark Culture.

…

This is why Zhang Changfeng of Penguin Pictures and Xu Guangyi, general manager of Penguin Investment Department, appeared together.

According to the intentions of the senior executives of Penguin Group's entertainment business group, they hope to use the release of "Spirited Away" as a bargaining chip to gain the opportunity to invest in Ark Culture.

Of course, if Fang Xing wants to distribute "Spirited Away", no matter the conditions, there will be a film distribution company willing to distribute it, but it is difficult to reach an agreement on the publicity and distribution fees and distribution sharing.

Penguin Group wanted to tie the two things together, so the conditions for the release of "Spirited Away" were very generous. They even set a very low distribution ratio, only 10% of the box office.

In terms of capital injection, Xu Guangyi revealed Penguin Group’s investment intention, hoping to inject 100 million, accounting for 20% of the shares.

Moreover, Xu Guangyi also stated that the group will not interfere in the specific operations of Ark Culture.

This investment intention is sincere.

If it were any other company that could get investment from Penguin Group, it would probably be a dream come true.

Because after Penguin Group's capital injection, the company received not only a sum of money, but also a huge network of relationships and countless group resources.

After the first meeting and chatting, Fang Xing went back to discuss it with the company management.

Two days passed.

Fang Xing made a formal appointment with Xu Guangyi and Zhang Changfeng to discuss cooperation.

The last time we met at the golf club was an informal meeting, the purpose of which was to test the willingness of both parties to cooperate.

For a formal appointment, you get straight to the point and talk about specific cooperation details.

Fang Xing held out two fingers and expressed his attitude directly: "I hope to publish "Spirited Away" first, and I will pay the publicity and distribution expenses. As for the distribution agency fee, there are two options."

Zhang Changfeng was a little curious and asked: "What two options?"

"Since the publicity and distribution expenses were advanced by me, Penguin Pictures, as the distributor, does not need to take risks when releasing "Spirited Away". At most, it will just not make any money..."

Fang Xing first mentioned the advantages of Penguin Pictures in this cooperation, and then continued: "In the first plan, the distribution agent will share 5%, but you can sign a guaranteed distribution agency fee of 20 million.

"If Penguin Pictures ultimately fails to earn 20 million from this film's distribution, I will personally pay 20 million for the distribution agency fee."

When Zhang Changfeng heard this plan, he felt Fang Xing's courage.

In the current film industry, the distributor’s share ratio is usually between 5% and 15%.

However, in fact, few issuers have a share ratio as low as 5%.

If this happens, it can only happen because the producer is very powerful, and the movie to be released is a sequel to a big IP, which can make money even with your eyes closed.

In this case, the issuer will lower the issuance share ratio and strive for cooperation.

For example, the series of movies that dominate the Lunar New Year festival every year easily make billions at the box office. Only such movies have the strength to reduce the distributor's share of the revenue to 5%.

The reason Fang Xing dared to mention such a low distribution split ratio was because he gave Penguin Pictures a guaranteed distribution fee of 20 million.

Regardless of whether "Spirited Away" makes a profit or a loss in the end, Penguin Pictures will make at least 20 million on this project.

Zhang Changfeng naturally understood the meaning of Fang Xing's words and continued to ask: "What about the second plan?"

Fang Xing replied: "The issuance share ratio is 10%, and there is no guarantee."

Zhang Changfeng smiled and nodded: "It seems that Mr. Fang is very confident in "Spirited Away"."

In fact, the two account-sharing plans are actually a big gamble.

Bet on whether the total box office of "Spirited Away" can exceed 450 million.

If the distribution ratio is 10%, the total box office of "Spirited Away" will reach 450 million. After deducting the business tax and offsetting the publicity and distribution expenses, the final amount Penguin Pictures can get is about 20 million.

In other words, two issuance agents split the accounts.

The watershed is the box office of 450 million.

If the box office is less than 450 million, then Penguin Pictures will make more money by signing a 5% account sharing ratio + 20 million guaranteed.

If the box office is higher than 450 million, it is better to sign a 10% account sharing ratio.

In fact.

The senior executives of the Penguin Group Entertainment Group did not originally intend to make money on the "Spirited Away" project.

It is completely a cooperation project to inject capital into Ark Culture.

After listening to the two plans, Zhang Changfeng praised: "Mr. Fang is really courageous. If "Spirited Away" does not perform well at the box office, it will lose more than 100 million. Mr. Fang will lose all the money he made from the album. Got in."

"It doesn't matter. If you lose all your money, you can make more." Fang Xing said this, but his expression was full of confidence.

Zhang Changfeng thought about it and asked: "So which plan does Mr. Fang want to sign?"

In fact, the current view of film companies on the animated film market is that it is generally difficult for an animated film like "Spirited Away" to leverage a box office of 450 million.

Many movies with an investment of 100 to 200 million dare not say they can reach this box office.

The production cost of "Spirited Away" was only 30 million.

Therefore, if Zhang Changfeng looks at it from a professional perspective, Penguin Pictures signing a 5% account + 20 million guarantee is a sure-fire plan to make money without losing money.

However, this will increase the losses of Ark Culture.

If Penguin Group had just invested in Ark Culture, Ark Culture would have lost more than 100 million. This is not good news no matter how you look at it.

Zhang Changfeng glanced at Xu Guangyi and motioned for him to speak.

Xu Guangyi asked in a calm tone: "How has Mr. Fang considered the Penguin Group's shareholding in Ark Culture?"

"The intention can be confirmed. However, my idea is to wait until the release of "Spirited Away" is over before discussing the specific shareholding plan." Fang Xing has already considered it and is ready to accept the capital injection from Penguin Group, but the specific shareholding plan As for the proportion, we will discuss it after the release of "Spirited Away".

Xu Guangyi nodded and started thinking.

In fact, from his perspective, he also wants to wait until "Spirited Away" is released before injecting capital into Ark Culture.

Judging from the current situation, if Ark Culture really spends 100 million on the promotion and distribution of "Spirited Away", then this project will probably lose money.

If the project loses money, Ark Culture’s valuation will definitely decrease.

If you inject more capital at that time, you can get more shares with less capital.

Simply put, this is a huge gamble.

Fang Xing bets that the box office of "Spirited Away" will exceed 450 million, while Penguin bets that the box office of the movie will be less than 450 million.

"Alright, the investment project will take several months to advance. We can start with the "Spirited Away" project." Xu Guangyi agreed to the plan.

The topic turned back to movies.

Zhang Changfeng asked: "The distribution plan is basically determined, and we can continue to discuss the details. Does Mr. Fang have any other requirements for film distribution?"

Fang Xing thought about it and said, "I hope Penguin Pictures can get more than 20% of the film schedule for "Spirited Away" in the eleventh schedule."

"this……"

Zhang Changfeng was stunned for a moment and replied: "This is very difficult."

The eleventh period is the most important movie period of the year, apart from the Lunar New Year and summer vacations.

There are many special effects blockbusters that choose to be released in the eleventh period.

This also means that the competition for the eleventh slot is very fierce.

Moreover, in the eleventh period of this year, two heavyweight special effects blockbusters have been confirmed.

Two heavyweight special effects blockbusters will consume at least 60% of the film schedule.

It is indeed very difficult to get 20% of the remaining films.

Even if Penguin Pictures is very strong, it is not confident that it can get so many films.

"So, Mr. Zhang, how many films do you think you can get?" Fang Xing asked in a calm tone.

Zhang Changfeng thought for a moment and replied: "Only 5% of the film schedule can be guaranteed. Unless the film has a very good reputation after it is released, it will be possible to increase the film schedule later."

5% of the film schedule may seem like a low number, but for an animated film, it is actually enough.

After all, the production cost is 30 million, there are no stars to carry the box office, and it is not directed by a famous director.

All data does not indicate a box office hit.

Penguin Pictures can guarantee 5% of the film schedule, which is already its best effort.

However, Fang Xing was not satisfied with 5%.

This initial film schedule is still too few. Even if more films are added later based on word-of-mouth, it will be difficult to counterattack at the box office.

For many viewers, they don’t make a decision until they arrive at the cinema to watch a movie during the National Day holiday.

Audiences like this basically watch whatever movies happen to be scheduled.

Therefore, the proportion of films scheduled has a great impact on the movie box office.

Fang Xing was not satisfied with the 5% film schedule and asked, "I request more films."

Zhang Changfeng shook his head and replied: "It's not that I don't want to help, it's just that I really can't help. 5% of the film schedule is already my best effort."

Fang Xing nodded and said, "Don't worry, I won't embarrass Mr. Zhang. I'm considering ordering the screening in advance and using word-of-mouth in exchange for scheduling the film."

Zhang Changfeng's eyes widened when he heard this method.

Pre-screening of movies is nothing new.

Advance screening is a small-scale screening before the movie is released.

Audiences can watch movies in advance, but there will be fewer screenings.

After screening, viewers who have watched it will naturally give feedback on the movie.

Especially film critics, after watching the screening, they will definitely write a review.

This allows the movie to form a reputation before it is officially released.

However, the results of point mapping are not necessarily positive.

If a bad movie is screened in advance, the audience will criticize the bad movie online after watching it.

Well, the movie hasn’t even been officially released yet, and its reputation is bad.

It is conceivable that when it is officially released, the box office will definitely be a hit.

Cinemas have to make money. If the movie is bad and no audience is willing to buy tickets, they will naturally be unwilling to arrange more shows, and the film schedule will naturally decrease.

On the contrary, if the movie is screened in advance and the audience agrees with it after watching it, its reputation will increase.

Audience feedback is the most authentic.

As long as the reputation is good, in order to make money, movie theaters will definitely ask for more movies to be scheduled.

Therefore, early screening is a double-edged sword.

When Zhang Changfeng heard that Fang Xing was going to screen the movie in advance, he smiled and said, "Mr. Fang's courage is admirable. Penguin Pictures can indeed arrange screenings, and can only invite many film critics to watch the movie. As long as Mr. Fang is confident, there will be no problem." question.

"However, once the audience feedback is not good, even 5% of the film schedule cannot be guaranteed. Are you sure you want to do a screening?"

Fang Xing's expression was very firm, and he nodded and replied: "I am determined to do the screening, and the sooner the better."

Penguin Pictures didn’t need to take any risks on this project.

So there was no pressure on Zhang Changfeng. Naturally, Fang Xing could do whatever he wanted.

"Okay, then we will follow Mr. Fang's plan. We will fully cooperate." Zhang Changfeng readily agreed.

After the two parties reached an agreement, the release plan of "Spirited Away" was immediately launched. Publicity and screening were carried out at the same time, and a huge gamble began.