A movie, first establish a project, find investment, production, and distribution!

The release here is not only just the release of the movie, but also the release of various copyrights.

The channel resources in this area are completely controlled by several major Hollywood giants.

Perhaps they cannot absolutely monopolize, but they are relatively monopolize.

Because there may be some small distribution companies that can also release movies, and even some companies can do so, many screens.

However, small distribution companies are far inferior in terms of publicity.

How do the issuing companies under the giants make money?

First of all, the regular issuance share is the direct profit of the issuing company.

No matter how much the box office of your movie is, the distribution company will be divided into proportion.

The second is the promotion and distribution budget.

Generally speaking, for relatively optimistic movies, distribution companies will advance the promotional budget.

Including, publicity budget, issuance and copy costs, etc.

The latter has nothing to say.

But the former said a lot.

First of all, for issuing companies, although they advance the promotional expenses, they themselves are because this part is profitable for the issuing companies.

Especially for giants who control a large number of publicity channels and resources.

For example, in the budget, how much does it cost to buy the page of a newspaper, but in many cases, they will give priority to companies under the group's parent company.

It can be said that the left hand is turned to the right hand.

Then, when the movie is released, they will be given priority to deducting the money from the movie box office share.

The only possible risk is that the box office share is even lower than the advance payment promotion and distribution expenses.

But most of the time, this possibility is very low.

Because as a distribution company, most of the time, they can make certain box office expectations for a movie through feedback from various channels in the early stage, and then formulate promotional and distribution plans.

Therefore, the most profitable and safest ones are always issued.

If a movie is sold well, everyone will naturally be happy. The distribution company can make a lot of money and the producer can also get a lot of profits.

But if the movie loses money, then the first thing that loses is the producer, not the distribution company!

For example, a movie costs 10 million, and the distribution is about 10% calculated, and the promotion budget is 3 million!

The box office was only 10 million!

At this time, if the share with theaters is calculated at 50%, that is, theaters will give the distribution company a box office share of the past five million.

At this time, the distribution company must first withdraw one million in the issuance share, and then deduct three million in the promotion and distribution budget, and in the end the producer can only get one million in the share.

The fact is that distribution share is usually almost impossible for outsider film companies.

This is also the reason why many domestic movies would rather sell them than release them normally.

Because that is the real sinkhole. Unless a director like Wang Yifan has a great reputation and is confident in the movie, most of the time, movies released in Hollywood through normal distribution often suffer losses.

Of course, if the movie is sold well, there will naturally be other income, such as income around copyright.

But if the movies are not sold well, then these copyrights and peripheral incomes that are referenced by the movie box office are not worth mentioning.

The reason why Hollywood giants have stronger risk resistance is that most of the time, they are both producers, publishers, and even operate their own theaters, so this is the real price difference without middlemen.

To put it bluntly, issuing companies are actually equivalent to middlemen most of the time!

......

Although Wang Yifan is not optimistic about Ali Media’s so-called globalization strategy, Ali’s PPT is still quite good.

At least, many domestic film companies are all tempted.

Why, in their opinion, there is one more market, and it is the world's largest market like North America, at least one more revenue, right?

This is indeed the case.

Although this income is likely to be so low that these film companies are speechless, it has to be said that from this perspective alone, there is indeed an additional channel for generating income.

But if the North American market is the main focus, it will be the real sinkhole.

"Don't participate. Just cooperate with Hollywood giants in overseas distribution. After all, that's not domestic." Wang Yifan said lightly.

Lin Husheng nodded.

In fact, for Huaxin and Wang Yifan's film projects, Ali's so-called new distribution channel is really not attractive.

Because Wang Yifan's movies are in Hollywood, they may be divided into a lot of profits most of the time, but they can definitely be considered a win-win situation.

Because Wang Yifan's movies have high box office potential, naturally, there is no situation where the store bullies customers.

Actually, this is also a tacit understanding.

As long as you don’t get involved in issuing and be your leek, Hollywood giants will naturally not let you make money without making money.

Dreamworks in his previous life ultimately compromised, which was to give up the issuance right!

It can be seen that the issuance is the real red line for Hollywood giants! The bottom line that is absolutely not allowed to be contaminated by outsiders!

"However, it may not be very attractive to us, but for other companies, it is still quite attractive, right?" Lin Husheng still frowned and said authentically.

Wang Yifan nodded and said, "This is for sure!"

"At least in the short term, Ali Media's distribution will definitely attract many companies, but this is actually a pit." Wang Yifan sighed.

"How to say it? Isn't it a good thing to have an extra market?" Lin Husheng asked in confusion.

"Yes, it's a good thing, but when we usually make movies, we first estimate the box office potential and return on investment, which is only aimed at the domestic market. However, if someone also has high expectations for the North American market, what do you think will happen?" Wang Yifan asked back.

"You mean, would you miscalculate the market size?" Lin Husheng said with wide eyes.

"Yes, this is really a pit!" Lin Husheng then nodded with a wry smile.

Why do you say so?

This involves the cost of the movie.

For example, why did Hong Kong Island movies decline?

To put it bluntly, movies themselves are a money-burning business.

But in the early days, everyone knew the box office market in Hong Kong. In addition, the Southeast Asian ticket store that was relatively stable at the time, so they would control costs according to this scale.

For example, the box office of the top movie is HK$30 million.

Then film companies that use local as their ticket warehouses will naturally strictly control costs.

The cost is mostly not more than the box office ratio of a leading movie.

But if they miscalculate the size of the ticket store, then at this time, they will have big problems in cost control.
Chapter completed!