This star is wrong

After chatting at the golf club, Fang Xing basically understood what the penguins meant.

Penguin Group's entertainment business group has taken a fancy to the content output of Ark Culture, so it intends to invest capital and hold shares.

In other words, it's not that Penguin Pictures has taken a fancy to "Spirited Away".

"Spirited Away" can be regarded as an addition to the cooperation.

Penguin Group's cultural and entertainment business group includes Penguin Video, Penguin Films, Penguin Music and other companies in the cultural industry.

So far, the output of Ark Culture mainly includes songs and TV dramas.

Especially in the field of music, the performance of Ark Culture has been comparable to the giants in the record industry.

The two TV series released are also hits.

Therefore, in terms of cultural content, Ark Culture has great potential.

The executives of Penguin Video and Penguin Music all hope that the group can hold shares in Ark Culture.

Only in this way can Penguin Video and Penguin Music obtain stable output from Ark Culture.

In fact.

Since "The Beginning" became popular, companies that want to cooperate with Ark Culture in film and television have stepped on the threshold of Ark Culture.

Moreover, some film and television companies have already offered a large investment of S+ level. As long as Fang Xing nods, the big project can be launched immediately.

If Ark Culture continues to develop, Penguin Video may not be able to obtain the exclusive broadcasting rights in the future.

Not only TV dramas, but music competition is equally fierce.

Now, the competition among the three major domestic music platforms is mainly focused on the competition for music copyrights.

The stickiness of music is greater than that of TV series.

Generally speaking, audiences usually only watch TV series once.

A favorite drama may be watched twice or thrice, but most TV dramas are only watched once by the audience.

Music is different. If you like a song, you can repeat it all the time.

After ten or twenty years, when I think of these old songs, I will still turn them out and listen to them.

Whichever music platform has these songs, listeners will go to that platform to listen to them.

If a music platform wants to gain more users, it must have a large enough music library.

Therefore, music platforms have more intense competition for song copyrights than video platforms.

After several major music platforms in China, after several mergers and acquisitions, 99% of the songs are shared by multiple platforms.

Among music platforms, the real competition is the remaining 1% of song copyrights.

For the three major music platforms, exclusive copyright is not necessary, but it must be, otherwise the rate of user loss will be very fast.

And Fang Xing's new album just released has a total sales of 1.2 million, which is a solid album sales ceiling.

The current situation is that any music platform that cannot obtain the music copyright of Ark Culture will be rubbed against the ground by its opponents.

Therefore, from the perspective of business layout, many companies in Penguin Group's cultural and entertainment business group all hope that the group can become a shareholder of Ark Culture.

……

This is why Zhang Changfeng of Penguin Pictures and Xu Guangyi, general manager of Penguin Investment Department, appeared together.

According to the meaning of the senior executives of Penguin Group's entertainment business group, they hope to use the release of "Spirited Away" as a bargaining chip to obtain the opportunity to invest in Ark Culture.

Of course, if Fang Xing wanted to release "Spirited Away", regardless of the conditions, there would be a movie distribution company willing to release it, but the cost of publicity and the distribution share could not be negotiated.

The Penguin Group wants to tie the two things together, so the conditions for the release of "Spirited Away" are very generous, and even the distribution ratio is very low, only 10% of the box office.

In terms of capital injection, Xu Guangyi disclosed the investment intention of Penguin Group, hoping to inject 20 million yuan, accounting for [-]% of the shares.

Moreover, Xu Guangyi also stated that the group will not intervene in the specific operation of Ark Culture.

There is sincerity in this investment intention.

For other companies, if they can get the investment from Penguin Group, I am afraid that they will wake up from their dreams.

Because after Penguin Group's capital injection, the company got not only a sum of money, but also a huge network of relationships and countless group resources.

After the first meeting, Fang Xing went back to discuss with the company's management.

Two days passed.

Fang Xing made a formal appointment with Xu Guangyi and Zhang Changfeng to talk about cooperation.

The last time at the golf club was an informal meeting, the purpose of which was to test the willingness of both parties to cooperate.

A formal appointment is to get straight to the point and talk about specific cooperation details.

Fang Xing stretched out two fingers, directly expressing his attitude: "I hope to publish "Spirited Away" first, and I will pay for the publicity fee. As for the distribution agency fee, there are two plans."

Zhang Changfeng was a little curious and asked, "Which two solutions?"

"Because I paid for the publicity and distribution expenses in advance, Penguin Films, as the publisher, does not need to take risks when releasing "Spirited Away". The most is that it does not make money..."

Fang Xing first mentioned the advantages of Penguin Pictures in this cooperation, and then continued: "The first plan, the distribution agency will be divided into 5%, but you can sign a guaranteed distribution agency fee of 2000 million.

"If in the end Penguin Pictures fails to earn 2000 million from this film distribution, I will personally pay 2000 million to pay the distribution agency fee."

When Zhang Changfeng heard this plan, he felt Fang Xing's courage.

In the current film industry, the distribution ratio of distributors is usually between 5% and 15%.

However, in fact, very few issuers have a share ratio as low as 5%.

If this happens, it can only be because the producer is very strong, and the movie to be released is a sequel to a big IP, which can make money even with eyes closed.

In this case, the issuer will reduce the distribution share ratio and strive for cooperation.

For example, the series of movies that dominate the Lunar New Year file every year can easily generate billions at the box office. This kind of movie has the strength to reduce the distribution ratio of the distributor to 5%.

Fang Xing dared to mention such a low distribution ratio because he gave Penguin Films 2000 million guaranteed agency fees for distribution.

Regardless of whether "Spirited Away" makes money or loses in the end, Penguin Pictures can make at least 2000 million on this project.

Zhang Changfeng naturally understood the meaning of Fang Xing's words, and continued to ask: "Then what about the second plan?"

Fang Xing replied: "Issuance account share ratio is 10%, there is no guarantee."

Zhang Changfeng smiled and nodded: "It seems that Mr. Fang has full confidence in "Spirited Away."

In fact, the two account sharing plans are actually a big gamble.

Bet on whether the total box office of "Spirited Away" can exceed 4.5 million.

If according to the 10% distribution ratio, the total box office of "Spirited Away" will reach 4.5 million. After deducting the business tax and offsetting the publicity and distribution expenses, the final amount that Penguin Pictures can get is about 2000 million.

That is to say, two distribution agency account sharing schemes.

The watershed is 4.5 million box office.

If the box office is less than 4.5 million, then Penguin Pictures will sign a 5% share ratio + 2000 million guarantee, which will make a lot of money.

If the box office is higher than 4.5 million, it is better to sign a 10% split.

In fact.

The top executives of Penguin Group's entertainment business group had no intention of making money from the project "Spirited Away".

It is entirely a cooperative project for capital injection into Ark Culture.

After listening to the two proposals, Zhang Changfeng praised: "Mr. Fang is indeed courageous. If the box office of "Spirited Away" is not satisfactory, he will lose more than [-] million yuan. Mr. Fang will lose all the money he made on the album." went in."

"It doesn't matter, if you lose all your money, you can make more money." Fang Xing said so, but his expression was full of confidence.

Zhang Changfeng thought about it and asked, "Then which plan does Mr. Fang want to sign?"

In fact, the current view of film companies on the animated film market is that it is generally believed that an animated film like "Spirited Away" is difficult to leverage the 4.5 million box office.

Many movies with an investment of [-] to [-] million yuan dare not say that they can reach this box office.

The production cost of "Spirited Away" is only 3000 million.

Therefore, if Zhang Changfeng looks at it from a professional perspective, Penguin Pictures will sign a 5% share + 2000 million guaranteed bottom line, which is the plan to make money without losing money.

However, this will increase the loss of Ark Culture.

If Penguin Group just invested in Ark Culture, Ark Culture would lose more than [-] million yuan, which is not good news.

Zhang Changfeng glanced at Xu Guangyi and motioned for him to speak.

Xu Guangyi asked in a calm tone, "How is Mr. Fang thinking about Penguin Group's holding of Ark Culture?"

"The intention can be confirmed. However, my idea is to discuss the specific shareholding plan after "Spirited Away" is released." Fang Xing has already considered it and is ready to accept the capital injection from Penguin Group, but the specific shareholding plan Ratio, we are going to talk about it after the release of "Spirited Away".

Xu Guangyi nodded and began to think.

In fact, from his point of view, he also wants to wait for the release of "Spirited Away" before injecting capital into Ark Culture.

Judging from the current situation, if Ark Culture really wants to spend [-] million publicity fees on "Spirited Away", then this project will probably lose money.

If the project loses money, the valuation of Ark Culture will definitely decrease.

If you re-inject capital at that time, you can get more shares with less capital.

Simply put, this is a big gamble.

Fang Xing bet that the box office of "Spirited Away" would exceed 4.5 million, while Penguin bet that the box office of the movie would be less than 4.5 million.

"Alright, the investment project will take a few months to advance. You can start the "Spirited Away" project first." Xu Guangyi agreed to this plan.

The topic turned back to the movie.

Zhang Changfeng asked: "The distribution plan is basically confirmed, and the details can continue to be discussed. President Fang, do you have any requests for film distribution?"

Fang Xing thought about it, and said, "I hope Penguin Pictures can secure more than 20% of the eleventh schedule for "Spirited Away"."

"This one……"

Zhang Changfeng froze for a moment, and replied, "This is very difficult."

The eleventh schedule is the most important movie schedule in a year, except for the Lunar New Year and summer vacation.

There are many special effects blockbusters that choose to be released in the eleventh schedule.

This also means that the competition for film scheduling in the [-]th schedule is very fierce.

And this year's November schedule, it has been confirmed that there will be two heavyweight special effects blockbusters.

Two heavyweight special effects blockbusters must consume at least 60% of the lineup.

It is indeed very difficult to get 20% of the rest of the film.

Even if Penguin Pictures is very strong, it is not confident that it will be able to get so many films.

"Then Mr. Zhang, how many films do you think you can get?" Fang Xing asked calmly.

Zhang Changfeng thought about it for a moment, and replied: "Only 5% of the film schedule can be guaranteed, unless the film has a very good reputation after it is released, it is possible to increase the film schedule later."

5% of the film schedule, the number seems to be very low, but for an animated film, it is actually enough.

After all, with a production cost of 3000 million, there are no stars to carry the box office, and it is not directed by a famous director.

All aspects of the data do not have signs of a box office explosion.

Penguin Pictures can guarantee 5% of the film schedule, which is already doing its best.

However, Fang Xing was not satisfied with 5%.

This initial film schedule is still too small. Even if word of mouth increases the film lineup in the later stage, it will be difficult to counterattack at the box office.

For many viewers, they watch movies during the National Day holiday and make decisions only when they arrive at the cinema.

This kind of audience basically just watches any movie that happens to be scheduled.

Therefore, the proportion of film scheduling has a great impact on the movie box office.

Fang Xing was not satisfied with the 5% cuts, and asked, "I want to increase the cuts."

Zhang Changfeng shook his head and replied: "It's not that I don't want to help, but that I really can't help. 5% of the filming is already doing my best."

Fang Xing nodded, and said, "Don't worry, I won't make things difficult for Mr. Zhang. I'm considering ordering screenings in advance and using word of mouth to change the schedule."

Zhang Changfeng's eyes widened when he heard this method.

It is nothing new for movies to be screened in advance.

Pre-screening is a small-scale screening before the movie is released.

Audiences can watch movies in advance, but the number of shows is relatively small.

After the screening, the audience who have watched it will naturally give feedback on the movie.

Especially film critics, after watching the screenings, they will definitely write film reviews.

This makes the movie a word of mouth before it is officially released.

However, the results of screenings are not necessarily positive.

If there is a bad movie, order it in advance, and after the audience has finished watching it, they will complain about the bad movie on the Internet.

Well, before the movie is officially released, word of mouth will be bad.

It is conceivable that when it is officially released, the box office will definitely hit the street.

Movie theaters want to make money. If the movie is bad and no audience is willing to buy tickets, they will naturally not want to arrange more screenings, and the number of movies will naturally decrease.

On the contrary, if the movie is ordered in advance, the audience will say it is good after watching it, and the word-of-mouth will rise.

Audience feedback is the most authentic.

As long as the word-of-mouth is good, in order to make money, the cinema must actively request to increase the film schedule.

Therefore, early screening is a double-edged sword.

When Zhang Changfeng heard that Fang Xing was going to order screenings in advance, he said with a smile, "Mr. Fang's courage is admirable. Penguin Films can indeed arrange screenings, but it can invite many film critics to watch the movies. As long as Mr. Fang is confident, there will be no question.

"However, once the audience's feedback is not good, even 5% of the film schedule can't be guaranteed. Are you sure you want to order screening?"

Fang Xing's expression was very firm, he nodded and replied, "I'm sure to make a screening, and the sooner the better."

On this project, Penguin Pictures does not need to take risks.

So Zhang Changfeng wasn't under any pressure, so Fang Xing could do whatever he wanted.

"Okay, then follow Mr. Fang's plan. We will fully cooperate." Zhang Changfeng readily agreed.

After the two sides negotiated, the release plan of "Spirited Away" was launched immediately, and the announcement and screening were carried out at the same time, and a big gamble kicked off.