The so-called Hollywood-style account book means that the producer and the issuer unite to divide the box office profits with various expenses, excluding investors and ordinary actors outside the circle from the cake.

To put it more specifically, after a movie is profitable, the theaters must first take away one of their own. Then the producer and publisher must first make some so-called adjustments, such as deducting the issuance commission and publicity fees, and then start to use the knife to divide the cake. The first one is the big producer and big-name stars, and the second is other qualified and important insiders. After they have finished the distribution, the cost will be deducted, and the rest is the ordinary people.

In this process, the issuance of commissions and publicity fees can be done, and the number of reports can be reported as much as possible. Of course, the producer and the publisher need to communicate. After the producer and various big brands have used their knives, various quotas will be released when deducting the cost, such as parking fees, such as how much rent the location is spent, etc. In short, there are a wide range of quotas for spending money on the account book.

So at the end, when I finally waited for ordinary actors to share the money, I was told that unfortunately, since the income and expenditure were just balanced, there was no share of your share. The worse ones even told them that this movie was losing money and there was no money to share it. Anyway, the account book was there, so I was unwilling to check it myself.

In a word, net profit sharing? Sorry, there is no net profit.

So, don’t watch Hollywood movies sell well, but they either lose money or just recover the cost on the books. Less than 5% of the movies that can make a profit every year. Generally speaking, film companies will still give some leftovers to ordinary actors, such as giving some rewards in private names, and they all belong to the kind of meaning. Taking out 1 million as generously as Weinstein is already an investment.

As for those film companies that are not bad, ordinary actors can do nothing even if they know there is something wrong with this. They cannot compete with a system alone. This set of rules is deeply rooted in Hollywood. Therefore, if ordinary actors really want to make a profit from the share of their share, they must avoid the trap of share of their net profits and strive to sign a contract for share of their gross profits.

The so-called gross profit sharing refers to sharing before deducting production costs. Even so, the issuer and producer still have to wait for the issuer to deduct issuance commissions and promotional expenses after adjustments. Therefore, the statement of gross profit is not completely accurate, and it should be divided in the general ledger of box office profits.

If you think you can breathe a sigh of relief, it would be wrong again. The person who divides the cake should decrease in order according to your identity. The first thing you do is naturally the producers and big-name stars, and then other qualified people, and they still share the share in a percentage in the remaining profit. In addition, if ordinary actors want to get the gross profit share or the profit share, there is another harsh condition, that is, the balance of income and expenditure is higher.

Simply put, the higher the box office profit, the higher the cost, the lower the point, and vice versa. Woody Allen's new movie called "Hollywood-style Finale" which was released in early April made a joke about this. A third-rate young director finally managed to get the share of the box office profit, but the prerequisite is that the box office profit should be at least three to four times the cost!

This is almost impossible. There may be a slight chance of a movie with small investments and high box offices. Unless it is a Titanic level, you can't even think about it.

Therefore, generally speaking, the balance between income and expenditure of ordinary actors is enough to see people look up to it after the box office profit is twice as high as that of the box office, just like Sean and the new line signing "The Lord of the Rings" divided the total box office after 650 million.

After all, Hollywood publishers and producers are using information asymmetry to perfunctory ordinary actors. No one knows how much they have been used, and no one has the time and energy to verify it. In addition, a person is weak, so naturally he can't do anything about it. So Sean used the same method to set up a new line. Although he couldn't remember the specific box office, it was certain that he had exceeded 650 million lines. In addition, it was the way to share the profits of the box office. Although it was impossible to get as much as he had imagined at the beginning, the new line would have to be bleeding.

Of course, Frederick also made a great contribution. Just getting the total box office profit share when Sean is only a little famous is enough to prove his excellence. Sean has a certain understanding of Hollywood-style accounting, which is also thanks to him. Although this is obtained at the cost of giving up the subsequent peripheral sharing, the result is not better than the net profit share in the partial peripheral sharing contract. Besides, Frederick also sets up a small loophole with his lawyer, and can renegotiate if necessary, especially related to... portrait rights.

Even so, there will still be various obstacles in the new line at that time. Who made Sean just a new star now? You should know that before the Oscar nomination, the new line always felt that it was inappropriate, and I wanted to exchange a contract with him several times.

"There will definitely be less than the actual ones, but as long as it is not too much, don't worry about it." Frederick once said to Sean.

It is helpless and infuriating. The benefits they deserve are taken away by various means, but... this is reality. So even if ordinary actors know that there is no net profit to share, they will still sign net profit sharing contracts. So they all try their best to become famous, and after becoming famous, they can get more and bigger cakes.

Similarly, Sean will set up his own production company. This may not be a winner-takes-all place, but the more you master the core capital, the more you have the right to speak. If you can't become a producer, you won't want to get more, and you won't want to have a higher status, even if you rely on Google's shares to become a rich man.

Therefore, Vladimir's proposal is very suitable. As a producer, of course, you have to consider it from the interests and positions of the producer, just...

"No need to do this for the time being," Shawn shook his head after thinking for a while, "Is there any other way?"

Vladimir's brow had not been stretched out, and he became increasingly confused about what he was thinking: "Then... we can choose to shoot in Canada. The Canadian government will provide certain subsidies to foreign filmmakers. If a certain proportion of the people hired by the crew comes from British Columbia, the province will also provide certain additional tax relief. In addition, if the digital effects of the film are completed in Canada, there will be digital effects subsidies.

Of course, there are certain prerequisites for these, such as the funds come from Canada, or one of the directors, screenwriters, and actors with the highest pay is Canadian, etc. The author of this script also insists on her becoming the heroine, Ms. Nia Vadalas, is a Canadian Greek.

He paused for a while, then narrowed his eyes, as if he had guessed something: "This can reduce the cost by about 1 million to 2 million. As for other methods, it is necessary to conduct a targeted analysis after calculating the cost in detail."

Then, Vladimir changed his tone: "If you think investment is not easy to reach, you can try something else."

"Oh? In addition to finding someone to invest, there are other sources of funds?" Sean immediately showed an inquiring look.

"I'll put it simply. Generally speaking, there are two sources of funds for film production, investment and financing," Vladimir began to explain. "Investment naturally refers to the production company investing itself, or other production companies investing together to reduce risks. It is also a kind of investment to find investors to invest. Then there is financing, and financing is roughly divided into four types: general mortgage loans, pre-sale contract mortgage loans, delivery contract mortgages and difference mortgages.

The first one is not to mention in detail. It is a very common method of loan. The second is to pre-sell the issuance rights to the publisher and then use the funds to make the movie, but it requires a high reputation or sufficient connections. The third is to sell the movie to the studio in advance and use their money to make it. However, there is basically no production company when the movie is released. Even if there is one, it can only be divided into a small piece of cake, and it also requires credibility and connections. The fourth type requires an authoritative sales agent to evaluate the possible sales revenue of the unfinished movie. The bank evaluates the risks based on this market and determines the loan amount."

"It doesn't sound easy." Sean sighed and shook his head gently.

"Actually, I have a suggestion," Vladimir showed an unknown smile. "If you have friends in the bank, you can first set up a production company with a certain amount of capital, and then use the company's future income as collateral to go to the bank to borrow money with the movie's plan. Things will be much easier afterwards. If the box office fails, the bankrupt company will be a newly established company. As long as you don't abandon this shell company casually, it will not have much impact on the entity.

If you make a profit, it will be even simpler. You also know that Hollywood-style books, we can make enough expenses on the books and create a huge deficit, so that we don’t have to pay the actors’ share. As for bank loans, they don’t have to hurry up. We can repay the income from videotapes and DVDs. Anyway, the income ratios are fixedly divided, and we won’t have no money to get it. If you pay for five or six years, the bank can not only recover the loan, but also have a lot of interest."

"...Is this OK?" Sean looked at him and was a little stunned. "The bank won't have any other measures...such as blacklisting our production company?"

"Why?" Vladimir showed a strange expression. "Have the bank not recovered the loan? You should know that this is a long-term payment. As long as the DVD is sold, they can get the money, and the risk is low. It is exactly the profit model the bank wants, which is equivalent to a win-win."

"Win win?" Sean twitched the corner of his mouth, "But why do I feel... this seems to be a debtor?"

"Don't pay?" Vladimir looked amused and crying, "This is the most clever way to operate accounts. Hollywood production companies have generally done this. Why do you think you are almost the same as the scoundrels on the street?"
Chapter completed!