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242 Box Office Dividends

As Chaos Pictures' second work, "The Day Afternoon" can be said to be a difficult challenge. Whether it is cooperation with a top company like Twentieth Century Fox or a high investment of $130 million, it is a thorny road to heaven and hell for Chaos Pictures without any foundation.`

When Chaos Pictures signed a cooperation agreement with 20th Century Fox, "City of God" had not yet won the Oscar nomination - of course, even though three little gold men were in hand, Chaos Pictures still did not have much capital to negotiate with 20th Century Fox. Faced with such a giant crocodile, Chaos Pictures almost did not have any advantage. Therefore, in the end, Theo and Ian, as representatives, reached a cooperation agreement with 20th Century Fox, and ensured the final editing rights of the movie through box office dividend transactions.

However, Chaos Pictures is only qualified to divide North American box office. In other words, no matter how outstanding the "day acquired" performs in the overseas market, it has nothing to do with Chaos Pictures. In fact, this is also very fair, because Chaos Pictures does not have any business or publicity capabilities in the overseas market, and has not yet proved its production capabilities in North America, so it relies more on Lance's producer, director and screenwriter to bargain.

There is no free lunch in the world, and there is even less in Hollywood.

Chaos Pictures exchanged 10% of the box office dividend for the final editing rights - according to the North American box office of "the day after tomorrow", this is 28 million US dollars, which made 20 Century Fox make a big profit. But it is a win-win situation for Chaos Pictures and 20 Century Fox. If there is no final editing rights transaction, no one knows what the finished product of "the day after tomorrow" will look like, and whether it can still achieve the current results.

Fortunately, both Twentieth Century Fox and Chaos Films made wise trade-offs.

After the "day acquired" North American box office and global box office were released one after another, 20th Century Fox conducted statistics. After deducting production costs, promotional costs, theater dividends, crew dividends, etc., 20th Century Fox relied on this movie to earn 120 million US dollars in profits - pre-tax income.`

More importantly, this is just a box office profit. When the "day-to-day acquired" video tape is on the 6 market and the DVD disc is sold, 20th Century Fox will enter the net income stage, which is the real main income of the film production company. Since Chaos Pictures is not qualified to share this profit, 20th Century Fox will enjoy this dividend alone, which is the important reason why they smile.

Similarly, Chaos Film also ushered in a bumper harvest.

Unfortunately, the box office in North America "the day after tomorrow" must exceed 300 million, and Chaos Pictures can only get a full 25% dividend, but now the box office finally stops at 280 million US dollars, which also means that the day after tomorrow" can only receive 23% dividends. In the process of cooperating with top companies like 20th Century Fox, the disadvantages of film companies like Chaos Pictures are fully demonstrated.

Even so, the outstanding box office performance of "the day after tomorrow" still won Chaos Film's dividend of 64.8 million.

64.8 million US dollars, one step to heaven, one step to hell, Chaos Film successfully entered the scope of heaven overnight. After deducting the actor's remuneration, Chaos Film's income was 44 million US dollars. Even after paying taxes, this income was enough to allow Chaos Film to calmly invest in the production of "borrowing a knife to kill people".

From passive expenditures in "City of God", to the "acquired debt" and then to the balance of income and expenditure of "borrowing a knife to kill people". Chaos Film completed a triple jump in just one and a half years. Once "borrowing a knife to kill people" is successful, Chaos Film can truly enter the profit stage and even make free moves, producing two or even three works at the same time, or occupying more initiative in works invested more than $100 million, avoiding serious suppression by 20th Century Fox.`

Chaos Pictures' rise is indeed extraordinary, and Diorama's concerns are not unreasonable. Just a "post-natal" movie, such a shocking gamble will completely erase Chaos Pictures' disadvantages, which is also the fundamental reason why major Hollywood film companies have always been committed to large-scale investment and production. The failure of the three works only requires the success of one work to be restored.

After Chaos Pictures relied on "acquired" to achieve its rise, Diorama Pictures was stretched because of the disastrous defeat of "Troy".

Since the fourth week of May, "Troy" has lost the capital to challenge the "day acquired" and announced the irreversible decline of the movie in three weeks of release. Then, facing the successive impact of works such as "Harry Potter and the Prisoner of Azkaban", the box office of the movie plummeted, with the weekly box office dropping higher than 45%, and even three high drops higher than 55%, which made the movie weak. It was announced to be offline only after fifteen weeks of release.

The total box office of "Troy" in North America regretfully stops forever at $116 million.

175 million investments have only received 116 million box office data in North America, without overtaking the book cost, 150 million or even exceeding 120 million, just 116 million. A mere 116 million completely destroyed the ambitions of Diorama Film.

Even if the box office outside Shanghai is added, the final global box office of "Troy" is only 376 million, not exceeding the target value of 400 million, which also means that Warner Bros., B Plan Pictures and Diorama both ushered in a defeat.

After statistics, the entire project of "Troy" suffered a total loss of up to 85 million US dollars, and the good performance in the overseas market did not save the collapse momentum. Even if Warner Bros. can still expect the videotape store to further reduce losses after it, there is no doubt that the high losses made Warner Bros. internally - in the preparation stage, "Troy" was considered an impossible project, and was absolutely guaranteed in all aspects, but in the end, it did not even get a result of "one plus one equals two", but instead ushered in a total collapse.

Diorama Film Company lost 25 million US dollars, which has not yet calculated public relations expenses, favor investment and other contents. This is the largest loss since the company was established. For a film company, a loss of 25 million means that their efforts for one year or even two years have been gone. Although this is not enough to make Diorama Film Company irrelevant, the subsequent exhibition is indeed in short supply.

As Ryan has always been worried, a high-investment project like "Troy" will push the company to a difficult situation once it fails.

This is like a gamble. After losing the cost, you have to invest more. Looking forward to a desperate victory, not only turning the decline, but also making a fortune. The failure of "Troy" has left Diorama Film with no choice. It is impossible to smooth out huge losses by relying on works like "Lost Tokyo" or "Elephant". If they continue to stick to their previous route and stick to low-cost movies, not to mention turning losses into profits will be an impossible task. Just talking about Diorama Film's pace will be seriously restricted, and the pace of progress will only become more and more restrained, slower, and heavier.

If Diorama does not need to compete with Chaos Pictures, then even if "Troy" fails, they can completely slow down and look forward to discovering more works such as "Lost Tokyo", "Two Big Smoke Guns", and "Death Prisoner's Dance". After recovering, they will seek breakthroughs and seek suitable projects again. Although they will still have to challenge again, they can at least have a breathing time.

But there is no "if" in the world. They must face the strong rise of Chaos Pictures, especially if one party fails and one party succeeds; one party loses and the other party makes a profit. Between this advance and retreat, the gap between Diorama Pictures and Chaos Pictures was immediately shortened by a lot. Similar to the head-on battle between "acquired" and "Troy" will inevitably appear again in the future. Whether it is commercial movies or movies, they have become competitors.

What's more, this is Hollywood, a society where the strong prey on the weak. Even without Chaos Pictures, they must face suppression and competition from other second-tier production companies. The involvement of a failure has a chain impact far more than expected.

This is like sailing against the current, if you don’t advance, you will retreat. Not only can they not be conservative, but they must also be bolder, more cautious, more rational, more sensitive, and seek more opportunities for breakthroughs. Otherwise, it will be only a matter of time before Chaos Pictures catch up or even rush.

One wrong step, one wrong step, it is like a chain of traps. After the first step is wrong, you have lost the initiative and no longer have the possibility of turning back. You can only grit your teeth and continue to move forward, and then look forward to the next step to turn the situation around. Who would have thought that just a "Troy" would create such an excellent situation. Perhaps, Lance thought of it.

Now, the failure of "Troy" has left Ryan and others with no choice but to pin their hopes on the "Saharan Cavalry".

This is a contradictory situation.

Because of the aggressiveness, the current situation has been led to, but conservativeness cannot solve the problem, so they have to continue to choose to make progress, and then every time they make progress, they must take more, bigger and stronger risks, just like they push themselves step by step towards the cliff.

However, at least, the "Saharan Cavalry" is a good news. The investment of 160 million yuan has given the work enough weight. More importantly, in recent years, treasure hunting movies such as "The Return of the Mummy" and "National Treasures" have begun to recover again, and even news that the "Raider of the Lost Ark" series is ready to restart, which also means that the entire film market has felt the value of adventure movies.

Following the trend is always the safest way to take risks, isn’t it?

ps: The second update today, I beg for support for the monthly ticket guaranteed, thank you everyone!
Chapter completed!
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