Chapter 212 Box Office Distribution and Going Overseas Strategy
Chapter 212 Box Office Accounting and Overseas Strategy
Author: Box and Orange
Chapter 212 Box Office Accounting and Overseas Strategy
"The global box office of "Gravity" exceeded 2.8 billion, and Zhang Hao is about to have great things..." - "UC News"
According to domestic media practice, the bigger the number, the better. US$400 million sounds a bit small, not as impressive as 2.8 billion RMB.
"While the global box office of "Gravity" is soaring, we also received the news that Zhang Hao and Da Mi Mi are getting married." - "Penguin News"
"Zhang Hao and Da Mi Mi, the golden couple, have finally achieved success. Let us wish them well." - "Sohu Entertainment"
""Gravity" entered the top ten of global annual box office for the first time. Although this is not the first time for Zhang Hao, it is the first time for a Chinese-language film." - "Sina.com"
"It should be noted that there will be many heavyweight blockbusters released in the second half of the year, and "Gravity"'s top ten position is not guaranteed.
In addition, the film has already grossed nearly 1.9 billion at the box office in the mainland, and is about to exceed 2 billion, setting a new record." - "Beijing Daily"
"How long can Zhang Hao and Da Mi Mi's marriage last? There are countless temptations in the entertainment industry. Unless the two retire now, they will face a test." - "Southern Metropolis Daily"
Almost all other media outlets have positive reports, either blessing Zhang Hao and Power, or congratulating "Gravity" for ranking among the top ten global annual box office.
Only the southern media, led by Southern Metropolis Daily, expressed negative opinions and doubts. There were also various well-known Vs on the Internet who expressed doubts in various ways and were not optimistic about the marriage between Zhang Hao and Da Mi Mi.
Some theaters privately increased movie ticket prices, which was first reported by southern media.
In the eyes of the southern media, Zhang Hao is far inferior to the National Master, very far behind.
The reason is self-evident. It is simply that Zhang Hao has done very well and has proven himself in the international market.
Even before their masters became anxious, these southern media outlets began to become anxious on their behalf.
Who says that domestic speech is not free? Isn’t it quite free? If it were on the other side of the Pacific, the editor-in-chief of their newspaper would have been shot eight times in the back and committed suicide the next day.
The media was abuzz, and netizens were unambiguous. They began to worry about Zhang Hao's question of whether "Gravity" would make money.
"In fact, the film has already recovered its cost through the domestic box office alone, and the overseas box office is a pure profit."
"Excluding the domestic box office, the film made approximately US$140 million?"
"Hey~ Are there so many? You can't even rob a bank that fast, right?"
"My calculations are wrong. Do you think you don't need to share the foreign box office revenue? You have to share it with local theaters and distributors, so you only get tens of millions of dollars."
"No matter what, if the box office is high, the sharing model is much better than the buyout model."
"Yes, it's just that overseas box office supervision is more difficult, and those demons in Hollywood dare to steal money from even Wall Street vampires."
"Both sides are not good things, but Warner Pictures will not cheat."
"Why?"
"Because Warner Pictures still relies on Director Zhang to direct Batman Part II, and it has defrauded him of money, can he direct it for you?"
"Wouldn't it be over if we just change the director? Do we have to use Zhang Hao?"
"You are Zhang Hao's little black boy, aren't you? Do you understand that the director is the core of a movie, and the same movie may be completely different if different directors are used.
Warner Pictures is playing it safe and cannot afford the risk of changing directors."
"Those upstairs, do you want to eat pancakes? What pigeons? That's my brother."
It's lively, except for a few people, who are actually just having fun, enjoying themselves online.
Zhang Hao and Da Mi Mi did not stay long in North America before returning to China. They still have a lot of work to do in China.
First of all, it is the first box office split of "Gravity".
The accounting firm, which was located in the same building as Tianmi Film and Television Company, took the money and had to work with the lawyers to start calculating.
From May 27th to May 31st, Gravity received a box office of 40.58 million, and the box office decline remained healthy, thus pushing the total box office of "Gravity" in the mainland to 1.87 billion.
The film was released for 32 days, with a box office of 1.87 billion, and with the Dragon Boat Festival holiday coming next, the box office of "Gravity" will definitely rebound.
"Gravity" has also received an extension key and will remain in theaters until the first weekend of August.
The long running time and the accumulation of time are enough to push the film to a box office of 2 billion. Even if you are bolder, it is not impossible to hit a box office of 2.122 billion.
The first round of division is 1.87 billion.
There is a very simple formula for box office sharing: total box office * 91.7% * 37%.
The total box office of a movie needs to pay 5% of the film industry special development fund, and 3.3% of related taxes and fees. The remaining 91.7% is divided among the theater distributors and producers.
However, the actual calculation is often more complicated. In fact, sometimes the producer and distributor can get more money if they are the same company.
For a company like China Film Group, which not only produces and distributes films, but also controls theater chains, basically the money from the theater chains goes into its right pocket, and the money from the producer and distributor goes into the left pocket.
It's all your own money anyway, it doesn't matter which pocket it is from.
Therefore, it is no wonder that after Wanda became one of the largest cinema operators in the country, it would also get involved in film production. In fact, according to Wang Yiwan's plan, Wanda will also get involved in film peripheral industries.
After all, box office revenue is only a part of a movie's revenue, often less than half of a movie's profit.
But then Wanda was hit hard, and even its theater chain was unable to sustain itself, and it was unable to enter the broader movie peripheral market.
The box office share of "Gravity" is very simple. The film is a key support project of Big Scissors. Not only did it apply for tax exemption, but it even received only 3% from the special film fund that refused to be exempted.
In other words, the film's shareable box office is 97%, which is 1.814 billion, and the theaters take another 907 million of the 1.814 billion, which is 50%.
The theater chain took 7% of the 1.814 billion, almost 127 million, and the remaining 780 million was the money of the producers and distributors.
There are only two mainland distributors of "Gravity", China Film and Bona, Tianmi Film and Television Production Company is the producer and producer, and Penguin Lighting and a dozen other small and medium-sized companies are investors.
China Film did not participate in the investment, but took part of the distribution agency fee from here according to the issuance ratio. Bona participated in both investment and distribution.
According to the prior distribution agency contract, the two companies received the lowest distribution agency fee, so Bona and China Film split 91 million first.
There is only 689 million left in the box office that can be divided among the major investors.
The cost of production and promotion of "Gravity" has reached 600 million. This split at the box office seems to be just a matter of recouping costs and making some hard-earned money.
If this is the case, let alone promoting domestic science fiction movies, it would be good if Zhang Hao is not laughed at by other colleagues.
After working so hard for more than a year for such a small amount of money, it would be better to make a comedy or a bad youth movie, hurriedly produce it and release it in two or three months, and then lose the money.
However, it turns out that "Gravity" is much more than that.
In fact, ever since "Gravity" became a hit at the box office overseas, ordinary people have marveled at the fact that "Gravity" continues to achieve great results, while industry insiders are concerned about the revenue of "Gravity".
Since last year, some Chinese-language film directors headed by Zhang Hao have been able to share 25% of the box office share in Asia, and that is after tax.
This is a negotiation between the superiors and the local government, not between Zhang Hao's company and local distributors. He does not have that much power to interfere with a country's film distribution strategy.
Why can it be said that only some Chinese-speaking directors can get this 25%? Just like not all Hollywood movies can enter the mainland market, and not all Chinese-language movies can be released in other parts of Asia.
In the Asian market alone, "Gravity" brought in revenue of US$31.5 million to the producers and distributors, equivalent to more than RMB 220 million.
This is pure profit, and there is no need to consider the issue of capital recovery, because the goal of capital recovery has been achieved through the mainland market.
This is the advantage of having a strong local market. No matter what industry you are in, if the local market is maintained, whatever you can earn will be natural profits.
What's more, as of May 31st, the North American box office of "Gravity" has reached 53.68 million U.S. dollars, and the European and other box offices combined have also reached 24 million U.S. dollars.
Warner signed a tiered sharing agreement with China, and this tiered sharing agreement has now been triggered.
The box office continued to accumulate, and when the accounts were finally divided, the revenue would be tens of millions of dollars.
Zhang Hao successfully proved that domestic science fiction films can also make money, and make a lot of money.
Don’t forget, box office revenue only accounts for a part of the overall film revenue. As time goes by, the proportion of box office revenue continues to decrease.
Even before "Gravity" is finished, the copyright revenue is already very promising, especially in the hot online video field, where the bids are getting higher and higher.
In addition, there are so many overseas copyright markets, as well as income from joint books, comics, game linkages, etc. that have yet to be developed.
Among other things, Penguin has just acquired Qidian, a subsidiary of Shanda, and integrated it into China Literature Group.
A science fiction essay collection event was also launched during the release of "Gravity", and joint activities were also launched on clients such as Qidian and QQ Reading.
These are all methods of monetization, and Penguin is very familiar with this aspect.
But without Zhang Hao, could Penguin be able to do so many activities? No, he doesn't have the ability.
Penguin doesn't have a second Zhang Hao to make movies for it, so in these activities, Zhang Hao's company and all the investors get a share of the money.
Make the surrounding cake bigger and everyone share the money. This is the long-term way for movies.
The basis of everything in the surrounding area is the quality of the movie itself, the box office, and the degree of development of the surrounding areas.
You said that the movie "Man Jiang Hong" has a higher box office than "The Wandering Earth 2", and that's no problem.
Objectively speaking, the film quality of "Man Jiang Hong" is actually acceptable. It is a commercial film that is acceptable in the Chinese film environment. No wonder the film has a high box office.
But what is the sales situation of the peripheral products of "River Red"?
In my previous life, I had always heard that the peripherals of Little Broken Ball were selling like crazy, such as stupid robots, digital life cards, and even a book that was sold out as soon as it was released online.
But "Man Jiang Hong" followed the example and produced a Qin Hui peripheral, but was scolded bloody.
It is undeniable that a small number of people really want Qin Hui to stand up. They feel that he has been kneeling for a thousand years, too long, and is tired.
But when he stood up, he was asking everyone to kneel down again. The majority of the audience would not do it if they knelt down again.
The audience is a fool, and they can watch a bad movie with gusto. The audience is also smart, and they know what a bad movie is and what a good movie is.
I support good movies and don't let go of bad movies, but one day I will despise bad movies.
As a result, the film was a hit in theaters, but it actually wanted to make the audience kneel down again. Then the audience would tell the capital with practical actions: I have a strong bone and cannot kneel down.
Of course, given the size of the forest, there are all kinds of birds, and it’s not surprising that among the 1.4 billion birds there are some weird ones.
Therefore, the peripherals of "Amores" cannot be sold, but the peripherals of "Broken Ball 2" are becoming more and more popular.
If the production cost of "Man Jiang Hong" really costs 500 million, Zhang Hao can definitely say that including the peripherals, the revenue of this film will be far less than that of "The Wandering Earth 2".
But it’s hard to say about the cost of film production. Some people say 500 million is 500 million, such as Zhang Hao.
Some people say 500 million, but it may actually be only 100 million.
After all, it is the work of a big director. No matter how high the salary of Xiao Xianrou is, if he appears in a work of a big director, he will have to reduce his salary, otherwise he will not be able to act.
Great directors are irreplaceable, but young actors are not. There are many young actors in the industry, so why should it be you?
Where did the remaining 400 million come from and where did they go? This is a question worth thinking about.
In addition, there is also the issue of the film’s overseas revenue.
Unlike Hollywood imports to the mainland, which use split accounts instead of buyouts, Chinese-language films generally use the buyout model and do not use split accounts.
It is because of the uncertainty in the overseas market that if the box office fails, not only will Chinese-language films not get a penny, but they will also have to pay a distribution agency fee to the overseas distributor.
In addition, it is also due to issues with distribution channels.
This time, Warner Pictures, a Hollywood giant, distributed it on its behalf. When "Gravity" opened in North America, there were 1,550 theaters in its first week, and the number rose to 1,700 in the second week.
Then it gradually declined, and by June there were less than 500.
Hou Jianchun, a well-known film critic who went to North America to watch "Gravity" and is also Zhang Chui, said on his Weibo:
"I went to several cinemas in Los Angeles. Basically, the occupancy rate of "Gravity" in the VIP halls can reach 70%, the occupancy rate of ordinary 3D theaters is about 30%, and the occupancy rate of IMAX theaters is 40%.
And many of them are not local Chinese viewers, there are more white, black and even more female viewers."
This is a fact that Hou Jianchun personally investigated, and is also in contrast to Sony Columbia Pictures' "Godzilla".
The theater attendance rate of "Godzilla" is not as good as that of "Gravity", but it still has thousands of theaters in June, while "Gravity" has less than 500 theaters.
But even so, the film is still profitable.
However, other directors’ films do not have the luck to find giants like Warner Pictures to distribute the films on their behalf.
They let Zhang Hao distribute their films as an agent because Zhang Hao brings them huge income, and they also rely on Zhang Hao to direct the second Batman movie!
What can you bring to others? Play with the hidden rules of women or be a pretty girl?
There is no shortage of people in this area, and when it comes to major business operations, countless facts have proven that it is unreliable to play with the hidden rules of women.
Moreover, people like macho men, preferably those with eight-pack abs. A cute guy with a pretty face won’t work either.
When you get there, it may be that other women are playing tricks on you, but not you.
Therefore, all problems are ultimately one problem, which is one's own strength.
The overseas release of "Gravity" can be regarded as an example for all Chinese-language films, proving that the overseas branching route is feasible.
And the higher the box office, the higher the income, which is definitely much more than the buyout income.
However, high returns and high risks coexist. If you want to get a share of the income, it depends on the capabilities of the major film companies and film producers.
Guoshi's "Hero" also took the buyout route back then. As a result, the overseas publishers made a lot of money, and Guoshi only received a buyout fee.
The only film that received overseas royalties was actually "Crouching Tiger, Hidden Dragon."
But this film is essentially produced by a Hollywood company. In terms of cultural attributes, it is a Chinese-language film, but in terms of commercial attributes, the film is actually a Hollywood film.
Within a system, everyone would definitely get a share, and in the end the film lived up to expectations, earning US$130 million in North America.
US$130 million in that era was not the same concept as it is now. What's more, the production cost of "Crouching Tiger, Hidden Dragon" was only US$15 million, and the producer made a lot of money.
As the competition in the summer season becomes increasingly fierce, the box office of "Gravity" in North America is gradually declining. Even if it maintains a running time, it is impossible to surpass "Crouching Tiger, Hidden Dragon" at the box office.
What's more, with the constant impact of blockbusters, North American theater chains have continued to reduce the number of theaters where "Gravity" will be shown. Starting from June 1st, less than 500 theaters are still showing the movie.
The film's box office has also declined rapidly, with a single-day box office only ranging from a few dozen to more than one million US dollars.
It is certain that when "Transformers 4: Age of Extinction" is released in North America, it will be the day when "Gravity" is released.
Because North American cinemas have to free up more IMAX theaters for "Transformers 4: Age of Extinction" and "Gravity" has led to a craze for IMAX3D viewing, all the benefits have been taken away by the Autobots.
North America still prefers its own stories to those from across the Pacific.
In addition, it is worth mentioning that with the small-scale global popularity of "Gravity", Da Mi Mi, who is the absolute leading actor, can finally have the title of an international superstar.
Compared with other international superstars who do not live up to their names, the international superstar Da Mi Mi is somewhat more convincing.
If you feel unconvincing, just take a look at the global box office of "Gravity", which reached US$450 million. This is an achievement that many Chinese movie stars have not been able to achieve.
However, some people are still dissatisfied. Lao Fan, who tried to be careful and failed at the last celebration party, is not convinced.
What she said to her friends in private, saying that the Great Power was only possible because of Zhang Hao, somehow spread out.
Therefore, Da Mi Mi, who stood out from the competition with the Eight Five Flowers, will soon face competition with established female stars.
The alternation of old and new is an eternal theme.
But the older one doesn't necessarily want to be replaced so early. He has not yet enjoyed a life under the spotlight and has so many fans, so he still has to struggle.
Only God knows how effective this struggle will be.
As I was writing, I got lost in my thoughts. When I read the 5,000 words, I suddenly felt stupid.
There is another chapter in the evening (ask in a low voice, maybe you don’t owe me anymore, am I done paying it off?)