Vol 5 Chapter 1181: chain reaction

Palmat glanced at Hastings. Is this Silicon Valley celebrity hiding himself?

He thought about this previous experience. He was kicked out by the company he founded and then invited back. Something that would make him admire Feng Yiping might have happened.

No wonder he is so cautious now in front of Feng.

He glanced at Feng Yiping, who was leaning on the sofa and looking at the distant sky. He couldn't imagine Feng Yiping who was thinking about it. On the whole, in any case, he was a gentle young man who was not as **** as other famous figures in Silicon Valley. People, what will the side behind his gentleness look like.

However, even if he has experienced the baptism of the war in the Middle East, he vaguely feels that it is best not to have the opportunity to see the other side of him.

"Feng, I think, for one reason, we should also set up our own distribution department," he said.

"A reason?" Feng Yiping thought for a while, and immediately laughed, "Palmatt you said a reason, I think we can all guess what it is,"

Most of it is also reluctant to share that part of the profits to the publisher.

The cost of distribution is not low. Even the big director Spielberg, whose DreamWorks movies are distributed by Paramount, is 9%, or nearly 10%.

And other more studios, the cost to the distributor, will account for 13% to 15% of the entire box office revenue.

It is indeed a considerable expenditure.

For a person like Palmat, watching the real income of real money and being divided by others, it will not be happy anyway.

Palmat gave Feng Yiping a helpless look. I was wrong. This is also a little bastard. He always attacks me with that point, but is thrift wrong?

But why is it hard to be really angry when faced with the ridicule of this little bastard?

"You guessed it, but it's definitely not the kind of situation you think," he said.

"I'm sorry, I was joking, Palmat, you say, I am listening," Feng Yiping said sternly.

"I don't know if you have noticed a strange thing before, that is, there have been some Hollywood movies that have a very good single box office income, but on the books, these movies are often at a loss."

Is there something to say about it? Feng Yiping really doesn't know this point.

"We know that Hollywood's assembly-line production method can easily make movie works less and less creative. Therefore, another characteristic of Hollywood is the star system and the appeal of star actors, which makes up for the inherent weakness of assembly-line production."

This, it seems to be the same in China later, but the leading actors of these Hollywood blockbusters have acting skills at any rate, and many of the leading actors in domestic movies and TV are only famous.

"But this, in turn, has increased the celebrity's right to speak. Now more and more celebrities will ask for their own remuneration, including box office share,"

This, the most popular celebrities of our great celestial dynasty later seemed to be much simpler and too lazy to be so troublesome. They all directly offered 100 million or 80 million after-tax remuneration.

This shows that they are self-aware. If they follow the Hollywood model, in most cases, they will not get the share-the film is so bad that no one watches it. Where else is the box office share?

"You mean that in order to reduce the pay of those stars, the filmmakers are trying to make these movies look at a loss?" Before Palmat could say the following, he immediately figured out the obstacles.

"That's it," Palmat said. "For example, a Warner movie has a production cost of 30 million and a box office revenue of 100 million. It should be profitable, but on the books, it is not like that."

"In the box office of 100 million yuan, they will accrue 15 million yuan according to the ratio of 15%, as the issuance cost, because they are issuing their own, so the 15 million yuan actually went into their own pockets."

"Then, there is another $25 million in advertising costs. At least half of this is paid to themselves because they have their own publicity department."

"In addition to the production cost of 30 million, this is already as high as 70 million,"

"And this 100 million box office, at least 40%, which is 40 million, belongs to the theater," Feng Yiping inserted.

He is more aware of this.

In the U.S. film industry, there is actually no fixed share ratio between the film party and the theater. Generally, the share of the film party in the first week is high, possibly as high as 90%, but in the following weeks, the share of the theater is getting higher and higher.

On average, the film's share at the box office is about 60% to 65%.

"You're right. This adds up to 110 million. Not counting other expenses. For example, if you have to pay 4.1% of the film union, you have already lost 10 million. But there is more than that. There is another item here. Important financial expenses are not calculated,"

"Under normal circumstances, all expenses incurred during film production are provided by one of their foundations, that is, it is a loan, and the interest is naturally calculated in the high."

"Hahaha," Feng Yiping slapped the sofa and laughed, "that is, borrowing the left hand from the right hand, and then generating several million in interest,"

This was the first time he had heard of this. Such a routine really made him a little bit astonished.

"I think those people on Wall Street are really wronged. When it comes to making money in their own pockets, these Hollywood guys are more innovative and shameless than they are."

"Oh, Palmat, Fitch, I didn't mean to target you,"

"It's okay, we just want to do this, we can have no chance before," Fitch spread out.

"So Feng, you know now that if we make our own films, distribute them ourselves, and promote ourselves, how much revenue will be increased, how much expenditure will be reduced, and how much more profit will be generated in the end?" Palmat asked.

"Clear," Feng Yiping nodded heavily, "We must do the issuance business."

"It's just that, in the short term, such as this year and next year, if we have a movie coming out, I am afraid that the six major distribution channels will be better."

A new publishing company that has not had any success before, whether it is in scheduling or arranging films, it is naturally impossible to have the same right of speech as the Big Six, which has already created a lot of profits for the theater.

"In this way, Fitch, you will join Netflix together with our six major studios, I prefer Disney or Fox, and see if we can negotiate a three-year distribution agreement, and the share will be controlled at around 10%. ,"

"With Hastings' support, I think I should be able to finish this job," Fitch said.

Hastings, but the key figure in their DVD rental and sales.

"Then next, we must set up a distribution company to serve Marvel and Netflix in the future, Hastings, don't be upset, one more channel, one more way, this is always a good thing, right,"

"I didn't," Hastings said hurriedly. "Feng, I think you are right. It's not for showing our films in cinemas, just for awards. We also need professional institutions to help us operate."

This is another open secret. For example, Oscars, those movies that are interested in competing for Oscars, have not started various public relations for this.

In fact, it is the same in our country. Otherwise, why are there some stars who have no acting skills and get high gold awards? You really think that those judges are all blind, but the work is too good.

"In addition, I suggest that the person in charge of this distribution company can be consulted by Cummins. In Hollywood investment banks, there are many executives who are responsible for film investment," he added.

"Well, I will remember this," Feng Yiping nodded.

If there is a suitable candidate on Wall Street, it is really good.

Wall Street, it's a place that connects all over the world, where the executives are mixed, not only are human elites, but everyone will have their own contacts.

"Then the next question is how to make the issuing company we established can survive,"

If you set up a publishing company to serve Marvel and Netflix full-time, the cost would be too high.

"In addition to looking for opportunities in various film festivals, I wonder if we can also create some opportunities as much as possible,"

He looked up at the clear sky again and began to think about this question.

When I lowered my head, I saw indistinctly that there seemed to be two people sunbathing in the backyard of the house below. Collins must have skipped class.

"I think, can this be the case, Randolph, we YouTube, we will add a new project, initiate and host a world-class micro film contest,"

"Micro Film Contest?" Randolph's eyes lit up, "This is good,"

Although in China, the movie "A Murder Caused by a Steamed Bun", which was almost annoyed by a major director, has not yet appeared, but in the world, micro-films have become a new wave.

For YouTube, it is certainly a good thing to be able to hold such an event that has attracted the attention of many people.

"How to do it, plan it yourself, I just hope...,"

"Let the newly established distribution company have the opportunity to meet some freshmen or new directors?" Randolph understood Feng Yiping's meaning.

"It's not just getting acquainted, the distribution company can also invest in the films of these newcomers as appropriate,"

It is better to retreat and build a net instead of facing Yuanxian fish.

It is conceivable that there is always a small chance of trying to pick up a leak at a film festival. Of course, with Feng Yiping’s help, this chance will naturally be higher, but it is definitely better to hand in a batch of good seedlings first. it works.

Newcomers’ films generally don’t invest too much, and those films that do not have too much investment are likely to have the opportunity to make big profits.

It is very simple. It is not easy for a film with an investment of 300 million US dollars to have a box office of 1 billion US dollars. It is realized. The box office is only three times the investment.

However, it is not impossible for a company to invest 3 million US dollars if it operates properly and obtains 30 million US dollars in the box office. Then its box office income is 10 times the investment!

"I hope that in the future, many film directors will be honored by showing the logo of our distribution company for the title of their movie,"

"Then it seems that this job is not easy to do," Palmat said.

The subtext of Feng Yiping's words is naturally that the movie released by the distribution company ~www.wuxiaspot.com~ has won many awards, or the released movies have generally been well received by movie lovers.

Neither of these two things is easy.

"I think this is a job worth challenging," Hastings said.

"Okay, how to cooperate with the next few of you, just talk about it by yourself, I don't care," Feng Yiping looked at the two children who were close to each other and said, "I can agree They, take them to the playground."

They all brought their children to Los Angeles, and it’s really unreasonable without taking them to the playground.

"Xiao Zha, whether you are here, there is something about you, think about it, Facebook, it will definitely undertake some of our promotional activities in the future, do you want to make money?"

"The boss who doesn't make money is definitely not happy, so, I think,"

Xiaozha's answer made everyone laugh.

"So, just listen to the user's request, don't be impatient, otherwise the boss will be unhappy,"

"Hehe," Hastings and the others laughed again.

But in fact, they were envious of Xiao Zha, who looked rather young and young, so young and so valued by Feng Yiping. The future of this person is not come from and need not be said.

Feng Yiping suddenly remembered one thing. Speaking of the micro-movie, he was deeply impressed, and there was also one, that is, the Australian film, which is very heavy in taste, but touching and tearing, seems to be called "Father's Love Counting Three Hours, is it possible for Netflix to use this idea to make a movie that will shine in the film industry?

Wu Qian came over and whispered in his ear with a strange expression, "Yiping, there is another girl looking for you. Owen seems to know her and her name is Alison Brie,"

Oh, is she here too?