Chapter 868 Nonsense
There is a saying: China Film's investment in Hollywood is just a company's normal business strategy... Before China Film... there were many mainland cultural companies involved in the Hollywood production industry...
The same goes for China Film Group Corporation... It's just that China Film Group Corporation is a national brand, so there's nothing to make a fuss about!
The problem is that China Film Group has the right to import films. Fortunately, the growth of box office revenue in North America has slowed down, and Hollywood is actively studying how to enter the Chinese market.
If you cooperate with China Film, will there be a distribution advantage?
That's it, Disney's "Avengers: Age of Ultron" won't be released in mainland China until May 12, which is the same as the film's May 1 in almost every other country, including the United States. ’s premiere was nearly two weeks later.
Why two weeks late?
Because of "Fast and Furious 7" - China Film Group participated in the investment...
But...China Film is a national brand after all, so why are you investing in foreign films?
What's wrong? Are you following the compradors?
I guess Han Shanping was also worried about such rumors, so he asked Shen Xudong.
Xudong asked: "Why invest in Hollywood? China Film Group can earn at least one billion a year just by importing the rights to films?"
"Aren't you busy going public..."
"oh…"
That’s understandable!
Take advantage of the trend of investing in Hollywood blockbusters.
"We are cooperating with Legend and preparing to invest in several movies..."
"Actually, Legend is just a film investment foundation..."
Shen Xudong briefly introduced the birth process of Legend Entertainment.
It is the evolution of an investment platter!
In fact, in theory, film companies can of course rely entirely on their own funds to shoot movies, and since the 1990s, the huge profits from secondary recycling channels have been enough to support film companies in filming super blockbusters worth 100 million yuan.
But without exception, all film companies are still looking for investment from outside.
There are many reasons, such as sharing risks, increasing the number of starts, crying poverty to get stars and agents to reduce their salaries, etc., but the main secret is that the cooperation between film companies and external investors is based on some kind of unequal treaty...
"Inequality?"
"Yes," Shen Xudong nodded: "For example, for a large production of 150 million US dollars, the company will pay 50% yourself and 50% from external funds after the completion. However, the final profit shared by the film company is much more than that of external investors."
"A lot more?"
"You see, from the box office return of a movie, 10-15% of the total box office is first deducted from the distribution fee and other marketing expenses, and then divided equally with external investors. This certainly seems fair, but it is For film companies, collecting distribution fees has turned a risky business into a relatively guaranteed income. Coupled with various accounting strategies, in short, the introduction of external investors is a good thing for Hollywood film companies to take advantage of. thing."
“Like a premium investment in your company?”
Shen Xudong admitted: "Yes!"
…
Tianmei Media attracts outside investment every year. Of course, outside investment requires a 20% premium to enter...
A movie costs 100 million, the company pays 50 million, external funds are 50 million, and then half of the proceeds are given to you?
What a beautiful thought!
Film investment is a small-circle game, and it’s not something you can do well if you have money.
A 20% premium is still a somewhat relevant investor.
In future generations, anyone with a certain quality will pay a premium for their investment share.
In particular, scarce good projects and large projects will be more popular and more likely to attract good prices!
For example, "Human Comedy" has a premium of 300 million.
It’s really rare for a comedy to have such a premium!
Ultimately, it is because of the uneven distribution of resources for mainland films.
In most cases, the premium is about 50%, and the shooting cost of a movie is 100 million. The company's external offering costs 150 million yuan, and the company will first repay the capital of 50 million yuan...
Film and television is an industry that relies heavily on resources. If you have resources, you have the right to speak. From the perspective of a large company, you have spent a lot of time and energy developing good projects and exhausted your connections to obtain good resources. The results of your efforts are obvious. It cannot be used by others in vain, so a premium is generated.
Hot money is pouring into the film industry, especially investors outside the industry, mainly financial institutions and film and television funds. Their standards for investment projects, or those with high premium conditions, still focus on big IP, big actors, and big directors. It is difficult to make a professional judgment on the actual project content. In the eyes of these investors, projects are only divided into big and small, not good or bad. Therefore, this type of investors are the most likely to accept high premiums for bad projects.
The premium is caused by too few good projects and too many people who want to invest in good projects. This imbalance can only be solved with money. No one will give up the opportunity to make money to others.
The movie premium is undoubtedly an additional income for the main controller, and it also allows part of the income to be recovered in advance.
At the same time, it is also a way to transfer risks and protect one's own interests, avoiding risks in the early project operations.
…
After listening to Shen Xudong's investigation of Legendary Pictures, Han Shanping probably understood: "You mean this is just a middleman?"
"Yes, middlemen!"
"Then let me see the promotions. "Batman" and "The 300" are all from them..."
"The copyright belongs to Warner!" After a pause, Shen Xudong continued: "And Legendary Pictures owes hundreds of millions of dollars... If you really want to invest, why don't you contact the studio directly?"
"...What you said is simple. We can contact the studio directly. We can't rush to ask for cooperation. The reason why we invested in Legendary Pictures is because the boss of Legendary Pictures has personally visited several times..."
"Thomas Tull?"
"Yes, that's him!"
Shen Xudong: "...He is very famous in Hollywood. He used to run an investment foundation and he was able to attract investments...but he couldn't raise money in the US investment market. Why do you think this is?"
Han Shanping was stunned for a moment: "...why?"
"Because Legendary Pictures has a bad reputation..."
After talking about this, Shen Xudong stood up and packed up his fishing gear - another afternoon in the Air Force!
It doesn't matter, he is not a fisherman anyway, the Air Force is the Air Force.
"Director Han, let's go to the restaurant and chat while we eat."
Han Shanping also packed up his fishing gear and followed...
On the way, he suddenly remembered something: "How is the overseas copyright of "Painted Skin 2" sold?"
"It's okay, 13 million US dollars, mainly in Southeast Asia and South America..."
"Southeast Asia...I see that you haven't cooperated much with South Korea in recent years?"
"There is no way. Starting in 2009, the Korean government restricted the import of Chinese-language films... We can't make any money anymore. Who will cooperate with him?"
"...Now everyone is saying that Korean movies are developing very well. What do you think?"
Shen Xudong smiled: "What kind of industry can be developed in a semi-colony? At that time, the United States restricted Japan's benzene in South Korea's semiconductor industry, and then it was transferred to South Korea... The same is true for Korean movies. Once they become famous, the United States will come to harvest it. !”
"It's not that bad..."
"...It's very impressive!"
Something happened...
Oh, I'm so speechless, I really want to slap myself twice!