Meiyu: I don’t care about the cost when making movies

Chapter 12: You voted before the fight even started?

"I remember that in the publicity and distribution contract we signed with Warner, the tiered share ratio for theaters was only 50% initially, right?" Wayne asked first.

"Yes," Sierra nodded and explained: "The share ratio between production companies and theaters is generally between 45% and 60%. For example, super-A productions produced by the seven giants can even get 65% or even 70%. [-]%.”

"Our film is still a small-to-medium-budget production. Apart from Natalie Portman and Hugo Weaving, there are no famous stars among the leading actors. The 50% share ratio is already quite high."

"However, if they accept Wiggins' new proposal, they should continue to expand the number of theaters for premieres and the share of box office revenue to increase their own profits. I estimate that the number of premiere theaters should increase to more than 2000. The share ratio can be increased to 55%~58%.”

Obviously, this is the difference between other people's children and your own son.

"In addition, if a giant like Warner participates in this movie, it can also avoid some unnecessary troubles, such as MPAA ratings, and some troubles in publicity."

Wayne understood what she meant. To put it simply, with Warner's participation, this movie was equivalent to paying a protection fee and being protected by a big boss.

"So you agreed?" Wayne asked.

"Yes." Sierra said very calmly.

Because this is the normal model in Hollywood, if a small production company does not find a giant to "pay protection fees", it is easy to encounter all kinds of unexpected troubles.

Wayne couldn't help but fell into thought.

He couldn't remember how much box office the movie "Admission Notice" had achieved in its previous life, but the movie had a good reputation both in America and China.

And it also caused a certain degree of social discussion in Millikin.

Serra's estimate of the film's North American box office is 2500 million to 3000 million. In other words, it will make a small profit from the North American box office alone, and the remaining overseas box office and disc sales will be pure profits.

According to her estimates, conservative profits will exceed US$1500 million.

Of course, her estimate may not be accurate. If it were accurate, the movie she had previously invested in, with an investment of tens of millions, would not have failed so miserably.

However, coupled with the attitudes of Wiggins and Wiggins just now, this profit is still very likely to be achieved. Otherwise, why would Warner spend so much effort to change the agreement?
"So, can we change the way and sell the global rights of this movie directly to Warner?"

Sierra couldn’t help but be stunned for a moment.

"What? Sell it to Warner?"

"Yes, except for retaining the online broadcast rights, all other rights will be sold to Warner in a package."

Wayne took the initiative to explain: "Although packaging everything and selling it to Warner will reduce our own income, it also reduces the risks we have to bear. In addition, it is too slow to collect money from box office sharing and disc sales. We will immediately package it and sell it." Then you can get the money.”

A strange look flashed in Sierra's eyes, and she immediately understood what Wayne meant.

For ordinary theater movies, it will take at least several months to get the money back.

Small production companies usually have tight liquidity and can't afford to wait that long.

The most important thing is that Hollywood giants like Warner and Paramount dare to steal the money of Wall Street giants. It is obvious that a movie that is a hit at the box office can still lose money.

Especially the discounted cost of publicity and distribution, this is simply a pit within a pit.

Because in terms of overseas publicity, if a large team of accountants is not sent to keep an eye on it, it is too easy to falsify the accounts.

But how much expense would it cost to hire a large team of accountants to go overseas and follow up for several months?
Therefore, packaging and selling copyrights to distribution companies is also a routine operation for independent low-cost films produced by small and medium-sized Hollywood production companies.

Hemera Pictures has done the same thing in the past for movies that cost hundreds of thousands to 200 million.

This can help these small companies better reduce financial pressure, and allow the profits they have earned from the films they have worked so hard to make to actually fall into their pockets.

However, a movie with a production cost of 800 million is barely considered a medium-sized production, so there are relatively few people who do this.

After all, who wouldn’t want to earn more if they could?
Therefore, even Wiggins, the deputy head of Warner's department, did not make such an 'unreliable' proposal of directly buying out.

But Wayne actually voluntarily gave up the benefits he could obviously get and proposed this method himself?

Doesn’t this mean that you surrendered before the war even started, before anyone even wanted to attack you?

But the film and the entire company were in Wayne's hands, and she had no problem with it if he decided to do it.

"In addition, although the box office revenue has decreased, after all is sold to Warner, Warner will definitely promote it more carefully and the results will be better."

"By then, as the leading actor and screenwriter, as well as you as the producer, and together with the entire Hemera Pictures, my reputation will definitely increase even more, right?"

As he becomes more famous, he can command higher remuneration. In addition, he can get the money immediately. It is actually in his best interest to choose to sell all the copyrights directly.At this time, Sierra also remembered that her young boss was still an actor.

"Okay, Wayne, you convinced me."

"Then the rest of the negotiation with Warner will be up to you, Serra."

"No problem, this is my job."

Sera smiled and agreed.

With more than ten years of experience in the industry, she is already quite skilled at this kind of thing.

In addition, Wiggins was also very optimistic about the movie, so the negotiation process went surprisingly smoothly.

A week later, Wayne received another call from Serra.

"Wayne, Warner has concluded the third round of internal screenings this morning. The price has already reached 1950 million. There should be no way to go higher."

"That's it! But the fee needs to be paid in one go!"

Wayne thought about it and accepted the price.

1950 million is just to buy it back, plus the publicity and distribution costs, even if it is a 60% theater share ratio, it is estimated that it will take more than 4500 million global box office to make back the money.

This result is not too difficult for the upgraded version of "Admission Notice", but it is not without risks.

Although taking into account the sales volume transferred to the disc market after the film is released, as well as the fees for reselling the TV rights, there is definitely no problem in making a profit, but that is Warner Brothers, and they will not like it if the profit is small.

So it's pretty good that Serra can talk about 1950 million. After all, the actual production cost is only 800 million.

Including the 200 million publicity fees refunded after the agreement was changed, after various reasonable tax avoidances, he could get almost 1800 million after tax.

This is 1800 US dollars!

Even 20 years later, it will be a huge amount of money that ordinary people can only look up to!
It is worth mentioning that Hemera Pictures is also registered in Delaware, a state with a lower tax rate, like most Hollywood production companies.

"How should we spend such a large amount of money?"

"Tsk tsk, why don't you buy a house first!"

The Chinese thoughts in his bones made him think of buying a house for the first time.

So the signing was completed the next morning, and after receiving the remittance that afternoon, Wayne immediately asked Serra to transfer the money to his account, leaving only 100 million for the loan and the company's daily operations.

Then he was going to take Mia to see the house.

"Actually, purchasing in the name of the company can be counted as operating expenses and can reasonably avoid taxes." Serra couldn't help but remind him after learning of his plan.

This is one of the common tax avoidance methods in America.

If this is done, the original tax bill of several million will be reduced to 30 to [-].

However, Wayne just thought about it and refused. After all, his deep-rooted habits still made him not want to count his own property as the company's property.

At least for his first house, he doesn't want to do that yet.

Sierra couldn't help but have a look of astonishment on her face, but she didn't say anything to persuade him. After all, the money belonged to Wayne, and it was Wayne's own business to spend it.

"In addition, I have contacted the investors behind me. After seeing the finished film, they thought it was very good, so they decided to continue investing in us, and the investment will increase to 3000 million US dollars in the future——"

"3000 dollars?!"

Not to mention Mia, even Sierra couldn't help but exclaimed after hearing this number.

"So Sierra, your next task is to continue collecting scripts while expanding the company's production department. After I confirm the new project, start preparations as soon as possible."

"Okay, Wayne, I got it!"

Serra had just ended the war-like intense negotiations with Warner Bros., and Serra, who had originally planned to take a vacation and rest for a while, had no intention of resting now.

At this time, she was completely motivated by the huge figure of 3000 million US dollars, and she couldn't wait to start doing something big right away.

　Ask for recommendation, ask for follow-up, ask for monthly pass~~~~
　　
　
(End of this chapter)