Chapter 828 Do You Want to Buy Theaters? (2)

The status of film production companies and theater groups mentioned above is still an extreme situation. After all, everyone is trying to make money, and no one will completely offend anyone. Hello, everyone, let’s take out people’s wallets together Space is king.

Coupled with so many years of development, the relationship between theater chains, producers, and distributors has already developed enough tacit understanding. Everyone has gradually explored a relatively fixed cooperation model to balance the interests of all parties as much as possible. In this way, larger conflicts can be avoided.

In North America, there are generally two types of cooperation between distribution companies and theaters: one is the "negotiated reserve price" model, for example, a theater has to pay a fixed amount of money to the distributor for four weeks, also known as "du". , This model is currently popular in the country, there is no way, there are too many hot money in the market, of course, most of them are not so clean, and the entertainment industry is recognized as the Holy Land of xi~money.

As a result, funds from various sources poured in, but behind these funds are not professionals. It is a waste of time for them to understand the operation process of the film industry from beginning to end. It is better to just spend money and gamble. Change a bicycle into a motorcycle.

You know, these masters with huge sums of money have never lacked courage. They directly use the small distribution company they set up to pay a high price, buy out the movie directly, and then show it in a movie theater. After gaining a firm foothold in the industry, whether it is participating in investment or issuance, the road will be much easier.

Compared with ordinary distribution, there are two main characteristics or advantages of guaranteed distribution: first, investors can recover the box office payment that can only be obtained one year after the film is released before the film is released;

The second is that the risk of a film project is transferred from the investor to the distributor. Therefore, the guaranteed distribution participants are required to have more accurate expectations for the box office of the film. Hit the film with a guaranteed price that far exceeds expectations, to fight for a future for yourself.

Of course, for large companies, guarantee is also a very good profit point. In 2013, Brother Huayi dei had guaranteed a minimum of 300 million yuan for Master Xing’s "Journey to the West: Conquering the Demons". The share is 70%; since then, another distribution giant, Bernard Films, has guaranteed a minimum of 350 million yuan for Han Han's "The Future" and Bernard will share 40% of the part of the box office that exceeds 350 million yuan.

The guarantees of these two films are obviously not as high as the topic brought about by "Beautiful Heart".

In 2014, Z Film and Ferris Wheel paid 125 million to the film studio of "Heart Flower Road", with a guaranteed release of 500 million, and the final box office of the film was 1.17 billion.

Since then, more and more films have begun to adopt this method of distribution, because everyone has seen the sweetness.

For example, the film company of that liar Xibei guaranteed 800 million yuan for Wu Yusen's two "Taiping Wheels", and Jujiao Films guaranteed 430 million yuan for the super bad movie "Gardenia Blossoms".

For films such as "The Mermaid", "The Future Will Never End", and "Gardenia Blooms", which are generally well-received and hot topics, the guaranteed release is a booster for the box office, which makes the distributor a lot of money.

But for some films that were released later, because too many people competed for the cake, the guaranteed price of the price soared, and it was not a problem to lose 70 to 80 million in the end. , Guaranteed release is not so crazy.

Frankly speaking, this is a game that destroys the market and is not conducive to the development of the art of film.

Therefore, the distribution giants in Hollywood, apart from facing films made by small companies with no status and no right to speak, or targeting films from overseas that want to be famous in the United States, everyone still generally prefers another model—— — into.

Generally speaking, before each film is released, the distribution company will negotiate with the theaters on the share ratio. In most cases, a 90/10 model is adopted. The total box office revenue of , minus the necessary fixed expenses negotiated at the beginning, and then multiplied by 90%, is the commission (A) that the publisher gets;

Next, the box office revenue available to distributors will be reduced by 10% every two weeks, while exhibitors, that is, theaters, will increase by 10% accordingly. The longer the screening, the higher the box office revenue.

But there is another guaranteed number (B). The total box office is not subtracted from the fixed expenses, but directly multiplied by 70%. Among the two numbers A and B, the distributor will take the largest one as the income from the theater this week. commission income.

Therefore, most of the benefits produced by the American film market have been taken away by distribution giants including the Big Six, and theaters can only pick up some "leftovers" and it depends on people's faces.

Especially in recent years, due to the saturation of the number of theaters and silver screens in North America, including the rise of Netflix, Hulu and VoD, etc., the window period of theaters has been extremely compressed, resulting in a slowdown in box office revenue growth, or even a decline With the trend, the income from the box office share is also slowly being impacted. The theaters are dissatisfied with the pressure of the Sixth Congress on them. The big giants teamed up to suppress it, let's not mention it for now.

Theater chain revenue mainly comes from three parts: box office revenue, franchise revenue and theater advertising. These three parts basically account for about 95% of a theater operator’s revenue. Among them, movie box office revenue is the largest source of revenue, but This segment has the lowest gross profit.

For large theater chains such as Emperor Entertainment, AMC, and Cinemark, the gross profit of the franchise business is around 80-85%, while the gross profit of the screening business is only around 45%-50%.

Other sources of revenue, such as theater advertising, have high gross margins but a relatively low percentage of revenue.

In recent years, with the slowdown of box office growth in North America and the reduction of box office revenue, American theaters have had to increase the proportion of other businesses, but the decline has not been alleviated.

The negative growth of Cinemark’s income that Tang Na mentioned before, in Yang Cheng’s view, is just an overdraft of future potential. It is certainly an advantage to seize the untapped market in advance, but don’t forget that theaters are no longer the first choice for young people’s entertainment. In this era of big entertainment, there are too many products that squeeze the living space of movies, and with the development of technology, in the future, people may be able to stay at home and enjoy an audio-visual feast that is no less than that of a movie theater. Orange believes that this day is really not too far away.

So, is it still necessary to follow suit now, or to spend huge sums of money to acquire a sunset industry for a little right to speak?

However, he knew about Donna Round's ambitions. If he could lead to a one-stop monopoly of film production, distribution, and screening, it would undoubtedly be the most glorious stroke for Donna Round's career. The so-called butt determines thinking, Donna Langde naturally doesn't need to worry about the company's strategic plan 10 years later, if she does well now, it is considered a success!

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