Chapter 29: Give up 4 million and choose 1 million
Thank you for your three evaluation tickets in Xiaotang246. Actually, I prefer to change it to a reward, haha; thank you brother 745 for your reward becoming the first deacon in this book, please recommend it!
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Distribution department manager Jon Filtimel stood aside and looked at Chen Tian. The guaranteed share was also the way the producers and theaters chose to share.
The producers often agree with the theaters to guarantee the lowest price before the release, which is also the fee that the theaters should pay to the producers is fixed income, and has nothing to do with the final amount of the box office.
Then, the actual box office revenue will be obtained based on the box office of the entire release period, and then the share will be divided according to different proportions during the release period.
Jon Filtimel really wants to know if Chen Tian is confident in his video or wants to bet on luck before he comes up with the idea of guaranteed share.
In his opinion, although US$2.5 million is not too much, it is definitely not too little. To some extent, it can alleviate the financial difficulties that Chen Tian mentioned.
Chen Tian thought about it and found that the global box office of Hollywood movies will only account for about one-third of the movie revenue, and some of them will not even reach this proportion.
This is also the main reason why many Hollywood blockbusters have such high investments, but the final box office is not ideal but still profitable, because DVD audio and video sales are the big ones, and the box office revenue will be followed by the revenue from TV in nine months.
Generally, the three items of film DVD, box office and TV will account for the vast majority of the movie revenue, and the popular films in the surrounding products do not belong to this list, such as Harry Potter and some animated blockbusters.
"Burning Live" obviously has no peripherals to sell. In this way, combined with "Burning Live"'s global box office of $20 million, the final total revenue is about $60 million.
Chen Tian did not know the specific share of the film and these various incomes, but based on what he knew, the later generations of "Buried Alive" could probably bring about 40 million yuan in net income to the Lions Gate.
Although this data may not be accurate, Chen Tian felt that the difference would not be too big in general.
After clarifying these things, Chen Tian felt a little embarrassed and looked at Tom Oldenberg: "The guaranteed price is $1 million."
Tom Oldenberg did not speak but signaled Chen Tian to continue speaking. Chen Tian smiled: "If the global box office of the movie exceeds 10 million, it will be divided into 5%; if it can exceed 20 million, it will be 10%.
On the basis of 20 million, I will share 2% to 50 million US dollars more. If it exceeds 50 million US dollars, then the excess will be divided into 30%.
Jon Filtimel, who had been watching Chen Tian, sneered. He already had the idea of driving Chen Tian, the ungrateful Asian: "No one in Justin tells you that it's not a good habit to be too greedy? The box office is directly divided into Justin. Do you think our Lions Gate is a charity for you?"
As Jon Filtimel said, Chen Tianti's share ratio is too exaggerated. If Lions Gate gets the box office share and then divides the share, then they will still consider it.
"No, no, you obviously didn't wait for me to finish."
"What else do you want to say? Although we admit that this is an excellent work, it does not mean that we must buy it." Tom Oldenberg said coldly.
"I only need box office revenue, and I don't want any peripheral revenues such as DVDs, TVs and soundtracks.
I think the three of you also know the proportion of box office revenue. Even a film that cannot be released across the United States may earn tens of millions of dollars in these channels.
Now I give up this part of the income, as long as the box office share, if you can't agree, sorry." Chen Tian shrugged. He didn't want to hand over the initiative to the Lions Gate.
Compared with the final box office, Chen Tian could not grasp the specific net income at all. Even if Lions Gate promised him to share 50% of the net income, Chen Tian would not ask for it.
Because net income is just a vague concept in Hollywood where profit first, more than 90% of the final net income is not real net income.
Chen Tian has seen too many such examples, which gradually became the norm and eventually became the famous Hollywood accounting loss law.
The most common law of loss is blockbusters released by large companies. Although these Hollywood blockbusters can generate considerable returns, these movies are usually losses on the books.
They often set up a "shell" company for every movie they produce, and this company is specially designed to "lose money", and the income generated by the movie will be taken away by large studios under various names.
Under such an accounting system, a movie that was originally sold may also be considered a loss.
The main creators who signed a profit sharing agreement on movies find it difficult to get any income from it. This is the famous accounting loss law in Hollywood.
For example, later generations of "Harry Potter and the Order of the Phoenix" earned $612 million in North America alone, but such a super big film lost as much as $167 million on the books.
The reason is that the law of loss emerged, and Warner Bros. Pictures deducted up to $212 million in issuance fees, which was the service fee paid by Warner to itself.
In addition, Warner Reports show that the video's advertising costs are as high as $130 million, and at least half of them were paid to themselves by Warner Bros.
Warner Bros. can earn at least $350 million in revenue through these items, but after deducting expenses as expenditures, it deducted $316 million in production expenses, resulting in huge losses from an accounting perspective.
In this case, the main creators who signed a net income sharing agreement with the film company should not be able to share even a cent.
There is oppression and resistance. This is an eternal law.
After the law of loss emerged, in order to avoid the tricks of Hollywood studios, some celebrities and big directors proposed to share the shares in other forms or share the shares before they proposed net income like Chen Tian, but not all celebrities and main creators have such a voice.
Not to mention that he is not famous yet, so Chen Tian simply made such a request.
As Chen Tian said, the unnecessary channel fee outside the box office undoubtedly touched the three managers of Lions Gate.
But capitalists will never be satisfied, even if they don’t have a point outside the box office, it is a huge ** for them.
They are worried that if the global box office reaches 25 million, they will need to share 3 million for Chen Tian. Adding the guaranteed 1 million is equivalent to giving Chen Tian and the psychological price limit of 4 million for Chen Tian and the others to buy out.
"If you are not satisfied, I can only say that I am sorry for this collaboration." Chen Tian shrugged. According to his prediction, this new "Buried Live" should reach the box office level in later generations no matter what.
The box office share of 20 million yuan plus a guaranteed 1 million yuan was exactly the lowest buyout price he expected 3 million yuan.
If you are lucky, you can get more. At this moment, Chen Tian threw the idea of buying out directly to the Pacific Ocean.
If the agreement cannot be reached with Lionsgate, then he will go to another company.
"How about we buy out directly for 3 million to you?" Tom Oldenberg suggested looking at Chen Tian.
If the Lions Gate had given this price at the beginning, Chen Tian had already taken the bus back to downtown Los Angeles with a check, but now it is not the beginning.
Chen Tian did not show any performance on his face, which made Tom Oldenberg clench his teeth: "3.5 million, this price can't be higher."
Seeing Chen Tian shaking his head, Tom Odenberg gave the final offer of 4 million.
This price once made Chen Tian excited, but Chen Tian still restrained his impulse and did not agree: "Mr. Odenberg, I will not sell it directly unless it is a crazy price."
Tom Oldenberg was very annoyed, but he endured it with his professional habits: "Justin, we still need to discuss it, please wait."
As he said that, Tom Odenberg and the other two walked aside and discussed again. Although the three of them were very dissatisfied with Chen Tian's high price, they immediately and quickly operated their brains when discussing specific cooperation.
"This film is really good. With Scarlett Johnson and his own production fund selling points during this period, if we do corresponding publicity and release it again, the global box office of 20 million should be available." Distribution manager Jon Philtimel expressed his thoughts.
"But it is not ruled out that unexpected situations may reach 30 million or even 40 million, but this possibility is not great. As for reaching 50 million, I don't think there is any possibility."
Production manager Michael Parsonneck nodded: "Jon and I have the same idea, and he means it very clearly unless we come up with a buyout price that will make him excited enough.
I think the price is at least 6 million, and when the box office reaches 35 million, we finally paid him 6.6 million, but it is not easy to reach so much box office, and I think we can promise him a guaranteed share."
"And it can also achieve long-term cooperation. I think he has great potential. If he has a good script in his hand, it is more worthy of our cooperation." Jon Filtimel said what the Lions lacks the most.
Although Tom Odenberg felt uncomfortable being led by a young Asian, he thought that the sheer income of tens of millions outside the box office might be swallowed by other companies because of his disagreement, so he swallowed all the discomfort into his stomach.
"Then agree with him." Tom Oldenberg said, turning around and walking towards Chen Tian.
"We agree to your guaranteed share."
Tom Oldenberg's reply made Chen Tian feel the urge to cry with joy. Although he only got 1 million at this moment, this was incomparable to the advertising funds he received.
"I hope we can cooperate happily." Chen Tian smiled and stretched out his hand.
"You are such a crafty guy. I feel it's necessary to open a bottle of champagne to celebrate our cooperation."
Chapter completed!