October 8th is Sunday, and that night, Shen Chong disappeared for several hours.

Early in the morning on October 9, he completed the check-out procedures at the Beijing Hotel, then moved to the guesthouse of the Film Bureau, and lived with Liao Yiyuan and others to discuss how to draft a feasibility report on the screening of Hong Kong movies into the mainland.

The world is great and the benefits are the greatest.

So the first thing to solve is the money problem - is Hong Kong movies entering the mainland market, should they sell trailers or box office sharing?

In order to win over Hong Kong filmmakers, Taiwan regards films produced in Hong Kong as "domestic films" and is not subject to import quota restrictions. Therefore, Shaw Brothers and Jiahe have invested a lot in Taiwan, either jointly or solely owned by the establishment of their own theater chains, and earn a large amount of box office revenue every year. These two large film companies are unlikely to abandon Taiwan's interests in a short period of time and turn to the mainland.

What the mainland can currently strive for are those independent film production companies.

Chen Chong has been in the Hong Kong film industry for more than half a year, and from time to time, he instructs his magazines to conduct targeted investigations and research. He has already figured out the tricks of independent producers.

In 1979, the average production cost of independent films was about 800,000, while the average box office of Hong Kong movies was over 1 million. Based on this data, 17.5% entertainment tax, 15% distribution fee and 12% publicity fee were deducted, and then 46% of the theaters were divided into 200,000, and a loss of 600,000 yuan. The part that was lost was filled by selling trailers.

A movie that produces an ordinary movie, with 300,000 yuan in Singapore and Malaysia, 200,000 yuan in Taiwan, 150,000 yuan in Europe and the United States, and other places such as Northern Europe and South America, can still sell for about 100,000 yuan. Together, all the income can earn between 150,000 and 200,000 yuan. Hong Kong film production companies are basically operated in this way. (Note 1)

Taiwan has three times the population of Hong Kong and its economy is prosperous. Logically speaking, if you choose to share the share, your income will be higher. However, Hong Kong film companies are not willing to do this. First, it is troublesome and the funds are slow to recover. Second, there are unpredictable political risks under the martial law state of Taiwan. Third, it is all about straitors and they cannot get a good share ratio from Taiwanese publishers.

Selling trailers is a one-time transaction. The process is simple, easy to operate, and safe and reliable, with no toxic side effects. After the sale, everyone will clear the two things. After the screening, whether it is bad box office or a taboo, it has nothing to do with the production company...

Since the opening of Hong Kong, selling trailers has been the main trading model for movies. Independent producers rely on it to make a living. If the mainland also uses this method to trade, as long as the offer price is higher than that of Taiwan, merchants will immediately flock to them.

Therefore, Liao Yiyuan, Fu Qi and others said that this kind of trading method was recommended, but Chen Chong did not agree with it. He strongly asked that the box office share be written into the main text of the report.

In 1979, the mainland's economic foundation was very weak, with an average annual income of only US$185. Although the people's enthusiasm for watching movies was high, they were short of money. In addition, they were still in the era of planned economy, in the eyes of leaders, the functions of movies are: first, publicity and welfare. Therefore, many movies are screened for free on the open air. Even if they are screened in cinemas, the ticket prices are very low. In big cities like Beijing and Shanghai, the ticket prices are no more than 20 cents, and this price is determined. If any region wants to adjust the ticket price, it needs to report to the Chinese film distribution and screening company in advance to coordinate, and then it can be implemented after approval by the Ministry of Culture, the Ministry of Finance and the National Price Administration. (Note 2)

Therefore, at this time, the mainland film market seemed beautiful, but in fact the total box office was very limited. The box office was divided into accounts and the amount was less than a few dollars. For independent film production companies, the attractiveness was far less than selling movies.

"Xiao Shen, I also know that the mainland film market has great potential and is unlimited in the future. If you choose to divide the accounts, the profit will be higher in the future." Liao Yiyuan shook his head and said in an old-fashioned manner: "But the box office splitting model is very complicated to operate, and there are many departments involved, which is easy to argue. It is better to lose something than more. Our top priority now is to enable Hong Kong movies to enter the mainland for screenings, and we will solve the future problems later."

"Yes, what Mr. Liao said makes sense." Chen Jingbo, who has never had any sense of existence, also persuaded: "It is good to share the box office, but it will take several years to achieve results. We can't wait now."

"Two seniors, what you said are all sophisticated words, and I admire them very much." Chen Chong put down his pen and said vaguely; "But I think that we Chinese people have always been the first priority in doing things. Selling trailers is indeed convenient and quick, but when it is convenient, the favors are weak, and when it is quick, there will be fewer connections."

He touched his clean beard that he shaved last night and continued, "Although the box office is troublesome, there are many people who deal with it. The situation in the mainland is booming, and we are now valued and we can often communicate with senior management. There may not be such opportunities in the future. Several seniors are full of children and grandchildren. I remember a saying that it is better to keep gold and silver than to keep personal favors."

The three old guys, the youngest Fu Qi, are already 50 years old, all of whom have families. They looked at each other and were silent. After a while, Liao Yiyuan nodded slowly and said, "Xiao Shen, you are young and have a clear understanding of the world. You are such a genius of heaven. No wonder you can add to your eyes to Minister Situ and Director Chen."

"I think this is the case." Chen Chong said with a smile: "In the main text of the report, selling trailers is the main transaction method, and box office sharing is used as a record. Because this model is more complicated, let's choose a few representative box office sharing cases as an attachment to provide reference for leaders. What do you think?"

"I think this is good." Fu Qi said: "Old Liao, what do you think?"

"This is good, with actual cases as reference, and it is more convincing." Liao Yiyuan picked up the teacup and said, "Xiao Shen, we are all old and have little energy. You can write this report, let's take action."

"How can that be done!" Chen Chong quickly made a polite approach, "I can only do physical work like writing, theoretical knowledge and practical experience, and I don't deserve to carry my shoes to the three of you..."

Chen Chong was determined to promote the box office share system, but it was not for the benefit of Hong Kong independent film companies - the vast majority of these companies were dead or alive, and he didn't care.

Of course, it is even more impossible to benefit his descendants' connections. He is only 20 years old. Moreover, as a time travel party, he knows clearly who he should make friends with, and there is no need to use small profits like box office sharing to win over people.

His purpose is to break the monopoly position of Chinese film distribution and screening companies.

Two months ago, on August 10, the Film Bureau of the Ministry of Culture and the Ministry of Finance, jointly formulated the "Ministry of Culture and the Ministry of Finance on the Implementation Plan for Reforming the Management System of Film Distribution and Screening". In the plan, it clearly stipulates that the Chinese film distribution and screening company is a professional company that leads and manages the national film distribution and screening business. All kinds of films released nationwide will be distributed by China Film Company.

The distribution method of China Film Company is to buy out - it is to buy it from major film studios at a price of 700,000 yuan per feature film.

This price seems good, but mainland film studios are subject to the system, are inefficient and have high costs. This price, let alone profit, is difficult to make a living. On the other hand, the mainland film market is in full swing and full of liveliness.

Ancient poem says: After picking flowers into honey, who will work hard for whom and who will be sweet for?

The studio worked hard to make a big cake, but could only watch China Film Company have a feast for a while, and naturally it was full of resentment. Chen Chong heard Wei Baoguo say that some time ago, the director of Beijing Film Studio personally wrote a letter to the central government, demanding reform.

This situation is very beneficial to the sinking.

There are now two monopoly film companies in the mainland, one is the Chinese film distribution and screening company, and the other is the newly established Chinese cooperative production company. However, there is another big name that has not appeared...

Later China Film Group was so arrogant. In addition to its advantages in distribution and screening, it also held a super killer - the only company in mainland China that has the right to import films.

At the beginning, this right was not owned by China Film Company, but by China's input and export company. However, throughout the 1980s, the mainland was the world of domestic films. The company had no reputation and unknown function, so it was later incorporated into China Film Company.

This company has not been established yet, but according to the news that Shen Chong recently found, it is very likely to be established before the end of the year. (Note 3)

You can tell by looking at the name. If Hong Kong movies want to enter the mainland, they must go through this company.

Chen Chong did not mention the word "national" in front of Chen Bo. He just suggested that Hong Kong movies enter the Cantonese-speaking "Guangdong area" to be screened, asking for a price everywhere and paying the money on the ground. His psychological expectations were actually very low. As long as he could be screened in Shenzhen, he would be satisfied...

Shenzhen is a special zone, and special matters are handled in a special way, and there is still a great opportunity. Before coming to Beijing, Chen Chong had learned from Jiang Zhiqiang that Shenzhen welcomes Hong Kong businessmen to invest and operate cinemas.

China Film Company is an institution responsible for national screenings. It is not considered the whole country when it is screened in Shenzhen. It is a game of edge and avoids policy regulations. Moreover, Shenzhen is just a small fishing village now, with a population of more than 300,000 and a small profit in a small place. China Film Company may not care about it. Even if it cares, the desire to boycott will not be strong.

Build a cinema chain in Shenzhen, and then borrow the skins of China's input and output companies to settle the box office in the form of movies. This is Shen Chong's plan.

With the development speed of Shenzhen, Chen Chong believes that at most two or three years, the box office sharing data will allow the managers of mainland film studios to stand up and rebel.

Only when the monopoly position of China Film Company's unified purchase and sales is destroyed, the mainland film market will be considered to be truly alive. Otherwise, under the shadow of monopoly, any prosperity will eventually be a waste of water and moon.

Chen Chong's courage to do this was also seizing the gap period of national transformation at the beginning of reform and opening up.

Ten years of turmoil have caused the mainland to lose a large number of talents and at the same time destroyed the old rules and regulations of many industries. Therefore, at the beginning of reform and opening up, many industries have rebuilt order in a blank space. At this time, an expert may determine the fate of an industry in the next ten years or decades.

Although Chen Chong was young, he rose like a comet in Hong Kong. He started from scratch and made tens of millions a month, breaking the Hong Kong movie box office record. All these things cast him the cloak of a business genius and a film expert. The mainland is now eager to seek talent. Even if it is not the encounter with Huangshan, he can still gain a good status when he goes to Beijing.

This is the so-called dividends of the times!

For example, Lee Kaiyuan was in Shenzhen and claimed to invest 10 million Hong Kong dollars. In fact, he only invested 2 million in advance, so that the provincial-level leaders could personally attend the groundbreaking ceremony. In a few years, not to mention 10 million, it would be 100 million. If you invest in Shenzhen, you would not even have a splash.

Mainland films almost completely stagnated during the turmoil. For several consecutive years, no film has been produced in the country. After the turmoil ended, the film industry basically operated in accordance with the rules of the 1950s and could not keep up with the needs of the times. Therefore, both senior leaders and lower-level employees have a strong desire to reform.

So, at this time, Chen Chong seemed to be a construction businessman standing on a ruin...

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Note 1: See Zhuo Botang's "Hong Kong New Wave Movie".

Note 2: See Volume 2 of "History of Contemporary Chinese Film".
Chapter completed!