This star is wrong

Chapter 320 [-] Million Publicity Expenses

After playing a few balls, Zhang Changfeng moved his shoulders and went back to drink tea under the awning.

Xu Guangyi, the general manager of the investment department of Penguin Group, chatted with him for a few words, talking and laughing very harmoniously.

Fang Xing met two senior executives of the Penguin Group today. It is obviously not as simple as playing golf to come to the club so leisurely.

the other side.

Li Xueying was carefully cleaning her clubs, and then put on gloves and a sun hat. She was very skillful and obviously came here often.

Fang Xing walked over and chatted, "President Li often comes to play golf?"

Li Xueying smiled, and replied: "This is a way of socializing in business, and you have to learn it sooner or later."

Fang Xing glanced sideways at the direction of the awning, and asked, "Are we just talking about movies today?"

Li Xueying showed a playful smile and said: "I am just responsible for introducing you to each other. What to talk about is not my business. However, I do hope that we can cooperate deeply. Your two dramas are of great help to me. So if you need help in the future, just say it."

Fang Xing looked at her with deep meaning, and said tentatively, "Don't tell me, you don't know anything about today's situation."

Li Xueying raised her eyebrows, and replied: "Okay. Let me know, in fact, your Ark culture has always been the focus of attention in the investment bank. It's just that you have no signs of financing, and the company's operations are not perfect. There really isn’t a big funding gap.”

The capital chain of Ark Culture is too healthy. After all, the main revenue is songs and TV dramas.

These only require an initial investment, and the later stage is all income.

Moreover, the songs and TV series produced by Fang Xing have ridiculously high yields, making Ark Culture's sustainable profitability very strong.

Hearing what she said, Fang Xing probably guessed something.

In fact, even if she didn't say anything, Fang Xing probably had a good idea in his heart.

After the group finished playing golf, they returned to the VIP room of the club and continued drinking tea and chatting.

Several bosses even lit cigars and tried to invite Fang Xing to taste them together.

Fang Xing waved his hands and refused, joking that he did not plan to transform into a smoker for the time being.

Professional singers really shouldn't smoke in order to protect their throats, so there's a good reason for that.

After chatting for a while, Zhang Changfeng began to talk about the movie: "Fang Xing, let me see it this way. I sent you your movie. What are your requirements for distribution agency fees and publicity fees?"

"This one……"

When it comes to money, Fang Xing finds it difficult to speak up.

Qiao Yinghong was born as a manager. When talking about money, she naturally took over the topic: "Mr. Zhang, when we talk about cooperation, let's say what we want. We have to talk clearly, and we can’t be dragging our feet.”

"Of course, it depends on what you think." Zhang Changfeng is not in a hurry, and now he just expresses his willingness to distribute "Spirited Away" as an agent.

As for whether the cooperation can be reached in the end, everything is possible before the contract is signed.

In fact, Zhang Changfeng would not have expressed his willingness to act as an agent if it was a normal cooperation discussion.

The reason why they showed a willingness to cooperate before the negotiation is that they are optimistic about the Ark culture, not the movie.

Qiao Yinghong glanced sideways at Fang Xing before answering, "We hope that the publicity fee will be more than 10 million yuan, and the issuer's share of the account will not exceed [-]%. This is not an opening price, but a reserve price. The boss doesn't like to argue about numbers."

Zhang Changfeng frowned, shook his head and said, "The [-] million announcement fee is unlikely."

The publicity fee is [-] million yuan, which is indeed very high.

Generally speaking, publicity and distribution costs account for 20% to 30% of the total cost of a movie.

In other words, if the publicity fee is 3 million, the total cost of the movie is usually more than [-] million.

And if the film studio wants to recover the cost, the box office usually needs to reach three times the cost.

In other words, for a publicity fee of [-] million yuan, the box office of the target movie must reach [-] billion yuan.

Zhang Changfeng had heard that Fang Xing's expected box office was one billion yuan, but he originally thought it was the young man's ambition to enter the big screen.

Now that we are talking about the details of the cooperation, I am sure that the expected box office that Fang Xing said before really wants that much.

Zhang Changfeng did not show an inappropriate expression, and said with a smile: "As far as I know, the production cost of your movie is only 3000 million."

The investment is indeed 3000 million.

However, Fang Xing gave the script and was responsible for a large part of the director's work, and he didn't get paid for this part of the effort.

If the production cost is really strictly calculated, it is more than 3000 million.

According to industry standards, for a movie with a production cost of 3000 million, the cost of publicity and distribution is usually only 1000 million.

And the box office needs to exceed [-] million yuan to recover the cost.

Of course, after the movie is released in theaters, it can also be released on the video platform, and there will be profits in the future.

Therefore, even if the box office does not reach three times the total cost when it is released in theaters, there is hope that it will pay back.

even so.

A box office of [-] million is not easy for animated films.

Don't look at the movies that have a box office of more than one billion yuan every year, but what the public sees are those movies that stand at the top of the pyramid. Under these movies, I don't know how many movies that have not been seen are buried.

Therefore, the box office breaks through [-] million, which is already an unattainable dream for many movies.

Qiao Yinghong, as an agent, of course has to speak for her company, she laughed and said, "Mr. Zhang, our boss contributed a lot when producing "Spirited Away". I didn’t take it. If you want to calculate the production cost, it’s not too much to convert it to 2000 million.”

With Fang Xing's current net worth, spending so much energy on this animation movie, it is indeed reasonable to convert it into 2000 million.

After all, if you put all this energy and time into making music, you can easily earn this amount.

Zhang Changfeng nodded without refuting, and continued: "Even if the production cost is 5000 million, the publicity and distribution ratio will not reach [-] million. I am afraid that no distribution company in China will agree to your request."

As the president of Penguin Films, even though he really wanted to establish a cooperative relationship with Ark Culture, he didn't want to lose money on a film project.

An animated film with a production cost of 5000 million yuan, according to the publicity and distribution standards, it is indeed impossible to give a [-] million publicity and distribution fee.

Because, if the publicity fee is dropped, it needs to be recovered through the box office in the future.

If Penguin Pictures really spent [-] million in publicity and distribution costs, then the box office of the animated film Ark Culture must reach more than [-] million in order to recover the publicity and distribution costs.

According to the account sharing ratio of theaters, theater chains, film producers, and distributors.

First of all, a 3.3% special business tax and a 5% special fund for the development of the national film industry must be deducted.

The remaining 91.7% is the divisible box office that can be used to divide the account, that is, the net box office.

Next, theaters and theater chains will first share 57% of the box office, and the remaining 43% will go to filmmakers and distributors.

However, 43% is an ideal split ratio.

In fact, the box office that filmmakers and distributors can really account for is usually less than 40%, probably between 35% and 40%.

The hotter the movie, the closer to 40% the box office share.

The specific ratio of account sharing that can be obtained depends on the strength of the issuer.

Generally speaking, people in the industry will roughly regard one-third of the total box office as the split box office that the film and distributor can get.

However, splitting the box office is not the money that the filmmakers and distributors can finally get.

Because, the publicity fee will also be deducted.

In the account-sharing box office, the publicity fee needs to be paid back first.

In other words, the publicity fee for the release of a movie is [-] million.

In the end, the total box office was [-] million, and the split box office was [-] million.

Then this [-] million will be paid for the publicity fee first.

In other words, the film studio didn't get a penny of money, and the [-] million box office split was used to offset the publicity and distribution costs.

In other words.

Fang Xing asked "Spirited Away" for a publicity fee of [-] million yuan, so after the film was released, the box office would be less than [-] million yuan, and the distributor would not only not be able to make a penny, but would also lose money.

Also because of this reason, no distribution company is willing to distribute "Spirited Away" as an agent.

After all, a box office of [-] million yuan cannot be achieved casually.

Just hearing the announcement fee, many film and television companies with distribution capabilities were scared away.

Zhang Changfeng also felt that the announcement fee was unreasonable, but as the boss of Penguin Pictures, he didn't show an exaggerated expression.

"As for the publicity fee, we need to discuss it again. Such a high publicity fee is actually not appropriate for an animated film. It will also greatly increase the difficulty of recovering the cost."

Fang Xing's attitude was very firm: "Actually, I don't plan to ask the publisher to advance the publicity fee. We will pay the [-] million publicity fee ourselves."

When Zhang Changfeng heard this sentence, a look of surprise flashed across his face.

usually.

Publicity costs are usually paid in advance by the issuer.

It seems that paying the publicity fee in advance seems to be risky.

But after the movie is released, the split box office is the priority to deduct the publicity and distribution expenses.

Moreover, the film distribution company must be optimistic about a movie before choosing to distribute it as an agent, and will calculate a reasonable publicity cost based on the quality of the movie.

Therefore, the issuing company will generally not lose money if it pays the publicity fee in advance.

If the distribution company really loses money, the film studio won't get any money, and the production cost of the film will be lost.

Of course, in the film industry, the cost of publicity and distribution does not have to be paid by the distribution company in advance.

The specific situation depends on how the contract is signed.

It's just that the industry standard cooperation model is indeed the issuer's advance payment.

Now, Fang Xing offered to pay the publicity fee by himself, which means that if the box office of "Spirited Away" does not reach [-] million, then he will be the loser, not Penguin Pictures.

Therefore, at this moment, Zhang Changfeng was convinced that Fang Xing really felt that this animation movie had the ability to earn more than [-] million yuan at the box office.

Of course, most of the film and television companies were very confident when they hit the big screen, but not a few fell into the sand in the end.

Therefore, faith alone is not enough.

"Mr. Fang, are you sure you want to pay [-] million in advance for the publicity fee? It will take a total box office of [-] million to hope to recover the publicity fee. This does not include the production cost of the film." Zhang Changfeng felt that Fang Xing might not Knows a lot about the film industry.

If the publicity fee is 5000 million, the film production cost is [-] million.

If you want to recover the full cost, it is not a matter of [-] million box office, and the issuer's share of the account will be deducted, and the box office needs to be at least [-] million to pay back.

Fang Xing looked very sure, nodded and replied, "Yes, I'm sure."

Zhang Changfeng glanced meaningfully at Xu Guangyi at the side, and the content expressed in his eyes was very complicated.

in fact.

Zhang Changfeng's original idea was to distribute the animation film of Ark Culture as an agent and spend 1000 million in publicity and distribution costs.

In this way, with a box office of 3000 million, the publicity fee can be recovered.

Even if the agency issue does not earn a penny, it is acceptable.

However, Fang Xing's expectation for this animated film is far from his idea.

The only reason why he was willing to sit down and continue the conversation was that Fang Xing planned to pay the publicity fee in advance.

In other words, if Penguin Films releases this animated film, there is no need to advance funds, no matter how much the final box office is, Penguin Films will not lose money.

The worst is not to make money.

Of course, if this animated movie hits the box office, then Ark Culture will lose money.

Zhang Changfeng didn't continue to talk about the movie, and said: "Let's put the movie aside, Mr. Xu has another project he wants to talk to you about."

Xu Guangyi reached out to shake Fang Xing's hand, and said, "President Fang is young and promising, and now domestic investment banks are staring at you."

"Don't dare to do it." Fang Xing said modestly.

Before Dingsheng Capital wanted to invest in Ark Culture, the valuation given was 2.5 million.

With the huge sales of Fang Xing's new album, this valuation has doubled.

For a company that has been established for more than two years, with a valuation of 5 million, the speed of development is simply appalling.

If any investment company had invested in Ark Culture, the rate of return on investment would have been astonishing, and it would have become a legendary case of investment banking.

It's a pity that Ark Culture itself doesn't need a lot of money to develop, it relies entirely on songs and film and television dramas, so it doesn't need financing.

Xu Guangyi smiled and said kindly: "Is Mr. Fang willing to accept capital injection from our group? As long as we become a family, we will naturally cooperate more harmoniously in the future."

When Fang Xing heard these words, he knew that what he had expected from the beginning had finally come.

In fact, Fang Xing had expected it a long time ago.

Ever since Dingsheng Capital proactively asked to invest in Ark Culture, there have been constant offers of olive branches from investment companies.

It's just that Fang Xing doesn't need large sums of money, so he's not interested in these capitals.

However, when the company develops to a certain level, it will encounter many difficulties and bottlenecks.

It is almost impossible for a single company to break through these bottlenecks.

These difficulties and bottlenecks can be easily solved as long as there is a big backer to back them up.

Fang Xing considered many strategies.

The solution is nothing more than accepting capital injection from a large group, or finding a strong local government as a backer.

Fang Xing had already expected that as long as the Ark culture continued to develop, these solutions would automatically come to him.

Now, the penguin came to the door on its own initiative.

The matter of capital injection cannot be settled in one meeting. Fang Xing was not in a hurry, and continued chatting with Xu Guangyi to ask Penguin's attitude.

(End of this chapter)