Best Actor

Vol 2 Chapter 33: hollywood ledger

    The so-called Hollywood-style ledger means that the producers and distributors join forces to divide up the box office profits with various expenditures, excluding investors and ordinary actors outside the circle from the cake. .

    To put it in detail, after a movie is profitable, the theater chain must first take its own share, and then the producer and distributor must first make some so-called adjustments, such as from the After deducting the distribution commission fee and publicity fee, etc., the knife will start to divide the cake. The big producers and big-name stars are the first to make a move, followed by other qualified and important insiders. After they have finished dividing the cost, the cost will be deducted, and the rest will be ordinary people.

    In this process, the issue of commissions and publicity fees can be manipulated, and as many newspapers as possible, of course, the producer and the issuer need to communicate. And after the producers and the big names move their knives, various quotas will come out when the cost is deducted, such as how much the parking fee has been spent, such as how much the rent of the location has been spent, etc. In short, the various quotas for spending money on the ledger Dazzling.

    So at the end, when I finally waited for the ordinary actors to get a share, I was told that unfortunately, because the income and expenditure were just balanced, there was no share for you. The worse ones even told them that the movie lost money, and there was no money to share with you. Anyway, the ledger is there, so you can check it yourself if you are not reconciled.

    In a word, net profit share? Sorry, no net profit.

    So, don't watch a Hollywood movie that sells all kinds of big things, but it is either a loss on the book or just enough to recover the cost, and the movies that can make a profit every year are less than 5%. Generally speaking, the film company will still give some leftovers to ordinary actors, such as giving some rewards in the name of personal, and they are all of the kind, like Weinstein, who generously took out 1 million, It's already an investment.

    As for those unscrupulous film companies, ordinary actors are helpless even if they know that there are tricks in them. Individuals cannot compete with a system. This set of rules is also deeply ingrained in Hollywood. Therefore, if ordinary actors really want to profit from the share, they must avoid the trap of net profit share, and strive to sign a contract for gross profit share.

    The so-called gross profit share refers to the share before the production cost is deducted. Even so, it is still necessary to wait for the publisher and the producer to adjust - after deducting the distribution commission and publicity expenses - before starting. Therefore, the statement of gross profit is not completely accurate, it should be divided into the general ledger of box office profits.

      of people, and still get a percentage of the remaining profits. In addition, there is a harsh condition for ordinary actors to get the gross profit share or the profit general ledger share, that is, the break-even point is higher.

    Simply put, the box office profit must be higher than the cost before it can be split. The higher the status, the lower the point, and vice versa. Woody Allen's new movie called "Hollywood Ending", which was released in early April, made fun of it. A third-rate little director managed to win a share of the box office profit, but the premise is that , the box office profit is at least three to four times higher than the cost!

     

    So, under normal circumstances, the break-even point of ordinary actors is twice as high as the box office profit, which is enough for people to look up, just like Sean and Xinxian signed " The total box office of The Lord of the Rings is divided into that after 650 million.

    In the final analysis, Hollywood distributors and producers are using information asymmetry to perfunctory ordinary actors, no one knows how much is used, and no one has the time and energy to verify, plus a People are weak, and naturally helpless. So Sean used the same method to set up a new line. Although he can't remember the specific box office, it is certain that the line will exceed 650 million. In addition, it is the way of dividing the box office profit general ledger, although it is impossible to get his original delusion. There are so many, but the new line has to bleed a little bit.

    Of course, Frederick also contributed a lot. Just being able to get a share of the box office profits when Sean was only a little famous is enough to prove his excellence. Sean can He has a certain understanding of Hollywood-style accounting, which is also thanks to him. Although this is at the cost of giving up some peripheral shares in the future, looking at the contract for some peripheral shares, the result will not be better than the net profit share. Besides, Frederick also set up a small loophole with lawyers to renegotiate if necessary, especially when it comes to...image rights.

    Even so, the new line will still set up various obstacles, who makes Sean just a new star now? You must know that before the Oscar nomination, the new line always felt inappropriate, and wanted to exchange a contract with him several times.

    "It will definitely be less than it actually is, but as long as it's not too much, don't bother." Frederick once said to Sean.

    It is very helpless and irritating, but the due benefits have been taken away by various means, but... this is the reality. Therefore, even if ordinary actors know that there is no net profit to share, they will still sign a net profit sharing contract, so they are desperately trying to become famous, and they can get more and bigger cakes after becoming famous.

    Similarly, Sean will set up his own production company. It may not be a winner-take-all here, but the more you have the core capital, the more you have the right to speak. Higher status, even if you rely on Google's shares to become a millionaire.

    So, Vladimir's proposal is very suitable. As a producer, of course, you must consider the producer's interests and position, but...

    "Don't do this for now," after thinking carefully for a moment, Sean shook his head, "Is there any other way?"

    Vladimir's brows didn't lift, and he couldn't understand what he was thinking: "Then...we can choose to go to Canada to shoot, the Canadian government will provide foreign filmmakers with Certain subsidies, and if a certain percentage of the people hired by the crew come from British Columbia, then the province will provide additional tax relief, in addition, if the digital effects of the film are done in Canada, there will be digital effects. subsidy.

    Of course, there are certain prerequisites for these, such as funding from Canada, or Canadian directors, screenwriters, and one of the highest paid actors is Canadian, etc. And the author of this script, Ms. Nia Vardalas, who insisted on being the heroine, is a Canadian Greek. "

    He paused at this point, then narrowed his eyes, as if he had guessed something: "This can reduce the cost of about 1 million to 2 million, as for other methods, we need to calculate the cost in detail. A more specific analysis will be carried out later.”

    Then, Vladimir changed his words: "If you think that investment is not easy to pull, you can try something else."

    "Oh? Besides finding someone to invest, are there other sources of funds?" Sean immediately showed an inquiring look.

    "Let me put it simply, in general, there are two sources of funding for film production, investment and financing," Vladimir began to explain, "The investment naturally refers to the production company itself. Investing, or pulling other production companies to invest together to reduce risks, is also a way to find investors to invest. Then there is financing, which can be roughly divided into four types, general mortgage loans, pre-sale contract mortgage loans, delivery contract mortgages and differential mortgages .

      The third is to sell the movie to the studio in advance and use their money to make it, but the movie is basically nothing to do with the production company, and even if there is, you can only get a small piece of the cake , but also requires credibility and connections. The fourth type requires an authoritative sales agent to evaluate the possible sales revenue of the unfinished film. The bank evaluates the risk based on this market and determines the loan amount. "

    "It doesn't sound easy." Sean sighed and shook his head slightly.

    "Actually, I have a suggestion," Vladimir showed an ambiguous smile, "If you have friends in the bank, you can first set up a production company with a certain amount of capital, and then use The future income of this company is used as collateral, and it goes to the bank for loan in conjunction with the movie’s planning. After that, things will be much easier. If the box office fails, the newly established company will go bankrupt. As long as you don’t just abandon this shell company, you won’t. Too much influence on the body.

    It's easier to make a profit, you know the Hollywood ledger, we can spend enough on the ledger and then create a huge deficit so that we don't have to pay the actors a share. As for the bank's loan, they don't have to worry about their money. We can repay it with the income from video tapes and DVDs. Anyway, the ratio of these incomes is fixed and divided, and we will not run out of money to take it. Not only can the loan be recovered, but there is also a lot of interest. "

    "...This is also possible?" Sean looked at him in a daze, "The bank won't have any other measures...such as blacklisting our production company?"

    "Why?" Vladimir showed a strange expression, "Didn't the bank recover the loan? You know this is a long-term payment, as long as the DVD is sold, they can get the money, And the risk is low, which is exactly the profit model the bank wants, which is equivalent to a win-win situation.”

    "Win-win?" Sean twitched the corners of his mouth, "But why do I think...it's like a default?"

      Are you almost a rogue?"

    "Common behavior?" Sean pinched the bridge of his nose.

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