Chapter 828： Do you want to buy theater chains? (2)

The status of film production companies and theater groups mentioned in the previous article is still a more extreme situation. After all, everyone is to make money, and no one will completely offend anyone to death. Hello, me, everyone, and we will take people’s wallets together. Empty is king.

Coupled with so many years of development, the relationship between the theater, the production and the issuer has been sufficiently tacit, and everyone has gradually explored a set of relatively fixed cooperation models to balance the interests of all parties as much as possible. In order to avoid greater conflicts.

In North America, there are generally two types of cooperation between distribution companies and theaters: one is the "negotiated reserve price" model. For example, a theater will be shown for four weeks and a fixed amount of money must be paid to the distributor. It is also commonly known as "to du" This model is currently popular in China. There is no alternative. There is too much hot money in the market. Of course, most of them are not so clean. The entertainment circle is recognized as a holy land of money.

As a result, funds from all sources flooded in, but there are no professionals behind these funds. It is purely a waste of time to let them understand the operation process of the film industry from beginning to end. It is better to just throw money and gamble. Strike a bike into a motorcycle.

You know, these owners who hold huge sums of money have never lacked courage. They directly use the small distribution company they set up to pay a high price, buy out the movie directly, and then take it to the cinema to show it. As long as du is right, it will be fine. After gaining a foothold in the industry, whether it is to participate in investment or issuance, the road will be much easier.

Compared with ordinary distribution, guaranteed distribution has two main characteristics or advantages: First, the investor can recover the box office share of the film that was originally received 1 year after the film is released;

Second, the risk of the film project is passed on from the investor to the distributor, so the guaranteed release participants are required to have more accurate expectations about the box office of the film, but it is more of a hot head, and when someone is fooled by a PPT, they will break the head. Smash the movie with a guaranteed price far exceeding expectations to make a future for yourself.

Of course, for large companies, the guarantee is also a very good profit point. In 2013, the Huayi brother dei once guaranteed 300 million yuan for Xingye’s "Journey to the West: Conquering the Demons". The part of the box office that exceeded 300 million, the Huayi brother dei The score became 70%; after that, another publishing giant Bernard Pictures also guaranteed 350 million for Han Han's "Later Meeting Indefinitely", and the part of Bernard that had a box office exceeding 350 million was divided by 40%.

The guarantee of these two films is obviously not as high as the topic of "Heart Flower Road Fang".

In 2014, Z Film and the Ferris Wheel Company paid 125 million to the filmmaker of "Heart Flower Road Fang", with a guaranteed release of 500 million, and the film's final box office was 1.17 billion.

Since then, more and more films have begun to adopt this method of distribution, because everyone has seen the sweetness.

For example, the film company of the liar in Xibei guaranteed 800 million yuan for Wu Yusen's two "Tai Ping Lun", and Ju Jiao Yinghua guaranteed 430 million yuan for the super lousy film "Gardenia Flower".

Like "The Mermaid", "The Future Will Be Unexpected", and "Gardenia Blossoms", films with a general reputation and high topical interest, guaranteed release is a fuel booster at the box office, allowing the distributor to make a lot of profits.

However, in some of the films that were released afterwards, because too many people competed for the cake, the price of the minimum price soared. In the end, it was nothing to lose RMB 780 to 80 million. It was a miserable death. It was not until this time that everyone remembered to be calm. , Guaranteed release is not so crazy.

Frankly speaking, this is a gameplay that disrupts the market and is not conducive to the development of the art of film. Therefore, the distribution giants on the Hollywood side, in addition to facing some movies made by small companies with no status and no right to speak, or targeting In addition to films from overseas who want to make a presence in the United States, everyone generally still likes another mode-sharing.

Generally speaking, before each film is released, the distribution company will negotiate with the theater on the proportion of shares. In most cases, a 90/10 model is adopted. In the first week, one film is used in a movie theater. The total box office revenue, minus the necessary fixed expenses negotiated at the beginning, and multiplied by 90%, is the commission (A) obtained by the issuer;

Next, the box office revenue that publishers can get is reduced by 10% every two weeks, and the movie theaters, which is the theater chain, increase by 10% accordingly. The longer the screening, the higher the proportion of box office revenue that can be obtained.

But there is another guaranteed number (B). Instead of subtracting fixed expenses from the total box office, it is directly multiplied by 70%. Of the two numbers A and B, the publisher will take the largest one as the one obtained from the theater this week Commission income.

Therefore, most of the profits generated by the American film market have been taken away by distribution giants including the Big Six. The theaters can only pick up some "leftovers", and it depends on people's faces.

Especially in recent years, as the number of theaters and silver screens in North America has become saturated, including the rise of Netflix, Hulu, and VoD movie viewing methods, the theater window period has been extremely compressed, resulting in a slowdown in box office revenue growth, or even a decline As a result, the income from the box office division is slowly being impacted. The theaters began to be dissatisfied with the Six Big Six's squeeze on them. They faintly have the heart of zao~anti, qi~yi. Of course, this little storm is temporarily affected. The big giants joined forces to suppress it, not to mention it for the time being.

Theater revenue mainly comes from three parts: box office share, franchise revenue, and theater advertising. These three parts basically account for about 95% of a theater operator’s revenue. Among them, movie box office revenue is the largest source of revenue. The gross profit in this part is the lowest.

For large cinema chains like Emperor Entertainment, AMC and Cinemark , the gross profit of franchising business is around 80-85%, while the gross profit of screening business is only around 45%-50%.

Other sources of revenue, such as theater advertising, have a high gross profit margin, but they account for a relatively low percentage of revenue.

In recent years, with the slowdown in North American box office growth and the shrinking of box office revenue, US cinemas have had to increase the proportion of other businesses, but the decline has not been alleviated.

Earlier, Donna said that Cinemark’s revenue grew inversely. From Yang Cheng’s point of view, it’s just an overdraft of future potential. Although it has an advantage to seize the undeveloped market in advance, don’t forget that cinemas are no longer the first choice for young people’s entertainment. In this era of big entertainment, too many products have squeezed the living space of movies. With the development of technology, people may not be able to stay at home in the future and enjoy an audio-visual feast no less than that of a movie theater. Orange believes that this day will not be too far.

So, is it still necessary to follow suit now, or spend a lot of money to acquire a sunset and evening industry for a little right to speak?

However, he knows that Donna Lande’s ambitions, if it can promote the monopoly of film production, distribution, and screening, will undoubtedly be the most glorious stroke in Donna Lande’s career. The so-called **** determines thinking, Donna Lande naturally doesn't need to worry about the company's strategic plan 10 years from now. If she does the present well, it is considered a success!

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