Chapter 363

Langley and Drake left the hotel room - Harvey's, the best in park city.

In contrast, the cash strapped Langley and Drake live in Salt Lake City, because the park city hotel is too expensive during the Sundance Film Festival, and Salt Lake City, which is only 30 minutes away, is more economical.

Standing outside the hotel room, Drake suddenly felt a moment of fear. His feet were a little soft, and he almost fell to the ground. His embarrassed appearance made lanli really laugh. "Do you want to sit down and have a rest?"

Drake repeatedly waved his hand. He had been sitting for 25 minutes just now, and his buttocks began to ache. What he needs now is not to sit down and rest, but to confirm and try, "did we really refuse Weinstein?"

Lan Li nodded.

"We really turned down four and a half million?"

Lan Li nodded again.

Drake felt his blood sugar was a little low, dizzy, and quickly reached for the wall to avoid the risk of falling. "So... How much do we need?"

"I don't know, eight million?" Langley shrugged, then saw Drake take a breath, almost unable to change his breath, which made Langley laugh directly, "if you regret it, we can go back now. I believe Harvey is very willing to renegotiate and sign the contract."

Drake took a big breath and finally gasped. "Well, I need to digest. There's a bit of information today. "

How to calculate the distribution rights of a movie? How to calculate the buyout price? What's the share ratio?

This is a very cumbersome calculation process. Even the real industry insiders can't explain it clearly for a while and a half. After simplification, we can make a simple and crude analogy of numerical ratio.

Generally speaking, the film revenue can be divided into two parts, box office revenue and peripheral revenue. The latter includes video rental, TV station broadcasting, network on demand, peripheral products, theme parks, overseas copyright and many other items. The former is the box office that people are familiar with.

Peripheral revenue is a specialized product of large film companies. It is unrealistic to make profits only through the box office. For companies like Disney and Warner Bros., peripheral revenue is the largest.

But the box office is the main source of income for others. After a film gains the box office, it will be divided among the cinema, distribution and production.

For any work that is shown in a cinema, the cinema side will formulate two ways to achieve profits. One is to negotiate the minimum price. For example, if the work is shown on several screens for four weeks, the producer and distributor will pay the cinema $100000. This is fixed. The producer and distributor will make more money and lose less money. However, now in North America, the second way is to divide into two parts.

It is a very complicated calculation process. After careful calculation, it can be concluded that the cinema takes 40% of the box office, and the remaining 60% is divided by the distributor and producer.

Normally, the distributor's share of dividends fluctuates between 15% and 20%, while the producer takes the remaining 40% to 45%.

Among them, the dividend of the producer also needs to be divided into two parts, one for the production company itself, and the other for the director, actor, screenwriter, producer and other crew members. Normally, producers leave 15 to 20 percent, and the rest goes to the crew.

For example, after "crazy love" is released, if it gets 10 million North American box office, then the cinema will take 4 million, the distributor will take 1.5 million, the producer will take 2.5 million, and the crew will share the remaining 2 million.

If it's a big film company that has both distribution and production, such as Warner Bros., they'll take four million; If it's an independent film company, the producers and crew members are the same team, such as "Crazy", then they will take away 4.5 million.

Of course, these percentages can only be said to be the general level, and the specific percentages will change according to the different situations of each work.

Especially for the members of the cast, if Tom Cruise is used as a big brand, the dividend ratio will naturally be higher. If Steven Spielberg is added as a big director, the dividend of the cast alone may be as high as 40% or even 50%. In this way, the income of the other three parties must be adjusted accordingly.

It can be seen from this that the producers almost do not make money, because their dividends also need to deduct publicity expenses, production costs and so on. Not only do they not make money, they even have to pay money.

So within the industry, people will simply say that if a film wants to make money for the producer by relying on the box office, then the box office must reach three or four times of the production cost, which is possible. Relatively speaking, for producers, peripheral revenue is the fastest way to recover costs.

For the "crazy love" crew, they are the producers. That is to say, according to the industry rules, they can share 40% to 45% of the box office. Although in reality, the proportion of the box office share of an independent drama group like them may not reach such a high level. Generally speaking, it fluctuates sharply between 25% and 45%. The detailed figures still depend on the negotiation process.

Then, we can simply take a fuzzy median value of 30% and calculate such an account. If the box office of "crazy love" in North America is 10 million, then the crew can get three million dollars.

Harvey first offered a buyout price of 1.5 million, then increased it to 4.5 million, and increased it by 3 million at a time. In fact, it is equivalent to the dividend that the crew should have received when the box office of "crazy love" reached 10 million. In other words, this is to change the soup without changing the dressing. Harvey just spits out the part that the "crazy love" crew should get, but he makes a heartbreaking expression, and his acting skills are really full marks.

More importantly, Harvey uses the buy-out price. That is to say, if the box office of "Crazy" in North America is more than 10 million, the crew will not get any income, and all of their "30 percent" will fall into Harvey's pocket.

But what if the North American box office of "crazy love" is less than 10 million?

Harvey will not lose money either, because he only spent "4.5 million dollars". Instead, he can get 60% of the box office bonus of "Ai crazy". In other words, as long as the box office of "Ai crazy" in North America is higher than 7.5 million, he will not lose money. Even if he can't reach this figure, his loss will not be much.

It's almost a deal that won't fail.

Harvey is really crafty, holding the advantage firmly in his hands from beginning to end. Even in the face of lanli's sudden attack, he still did not lose control. This is the real "Godfather" demeanor.

However, lanli doesn't know these inside details, and his judgment principle is very simple.

Andy said two sets of figures, one is the buyout price, 7 million; One is the share price, four million plus the share percentage. So how do these two groups of figures come out?

Assuming that the box office of "crazy love" in North America is only 10 million, it means that their percentage share should be 30%. In this case, the box office share is 3 million, plus the copyright price of 4 million, which is 7 million - just equal to the buyout price.

Just now, Harvey put forward a buyout price of 4.5 million with a decisive expression, but lanli knew that since Harvey was willing to put forward this price, it means Andy's judgment is accurate, and the price of "Crazy" distribution rights is really around 4 million, so if Harvey wants to buy out, 7 million is the most suitable price.

Of course, the premise of all this discussion is that the box office of "crazy love" in North America is 10 million. As for whether it can reach such a standard, this is not the question that lanli can answer. It's all hypothetical speculation. Maybe higher, maybe lower, everything is possible. Andy is estimating, Harvey is estimating, and so are other distribution companies.

What's more, lanli firmly believes that an old fox like Harvey can't offer a top price at one go without leaving any room for himself. Harvey is a businessman, not an artist, not a philanthropist, or a businessman of chiguoguo, a businessman with supreme interests. At any time, he will leave a way for himself.

Therefore, even if Langley's judgment of numbers is not so accurate, he will not be easily deceived.

As for the $8 million just told Drake, it was just a joke.

"What should we do now?" Drake finally eased his breath and looked up at lanli, with a lingering fear in his expression.

"Waiting?" Langley shrugged his shoulders and gave the simplest but most real answer. Drake was stunned and then laughed.

For "love crazy", the wisest way is to wait. Because, they are the seller's market, waiting for the buyer to come to buy. At present, there are two well-known companies, paramount advantage and Weinstein film, coming to the door. Next, with the further fermentation of the film's reputation, there are bound to be more competitors to join them.

What they need to do is wait for the price.

This year's Sundance seems to lack a bit of explosive power, not able to reproduce the blowout of the past three years. At present, "another Earth" and "double Martha" have not been able to ignite public praise. The only one that can match "crazy love" is "seeking asylum".

The film, starring Jessica chastan and Michael Shannon and directed by Jeff Nichols, won 90 points in the official journal, surpassing "crazy love" and temporarily ranking first in the journal. However, "asylum seeking" failed to trigger a chain reaction among the audience, and the overall momentum was slightly weaker.

Sure enough, less than an hour after Langley and Drake left the hotel, the phone came to them again. It seems that Weinstein's move has been leaked, and other tycoons have begun to act. This time, it was the focus of the film industry.