Hollywood Road

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Although within CAA, Bill Rossis is just one of many inconspicuous brokers, but the novice Murphy can't match the understanding of this industry anyway.

Murphy has also seen Bill Rossis's ability, and believes some of his words.

He turned his head to look at Bill Rossis, and asked curiously, "Tell me."

"You just said that the six major distribution companies will charge up to 30% of the distribution fee for films produced by their own studios or their subsidiaries, which is different from the distribution fees for external films that they release. It is a pure commission that does not include the cost of publicity."

Murphy nodded. These are not secrets in the industry. Distribution means distribution commissions. Big studios usually charge 30% of the distribution fees for the films they invest in.

Of course, they sometimes charge a 30% commission for distributing videos from other small companies, but it basically includes the publicity fee.

Under normal circumstances, if it is a distribution agency, that is, a film produced by a non-industry investor, in order to ensure that the film has a large enough audience size, it often negotiates fiercely with large studios on the percentage of distribution commission, but usually if it is not enough Strong, usually compromise between 15% and 18%.

The publicity fee for this issuance method is calculated separately.

From the appearance of the distribution ratio, this is a very strange phenomenon. The distribution company charges a high distribution fee for the films produced by itself, and the ratio of foreign films is much lower.

"According to Hollywood accounting practice, each self-produced film released by the Big Six companies will set up an independent shell company..."

Bill Rossi immediately explained this point, "In this case, 30% of the issuance commission will be paid to the issuer as a cost item of this external entity, which is essentially the same company."

Murphy is not an idiot, and he immediately understood, "The purpose of this is to make the production company pay a lot of fees for the film, so that the production company can hardly show profits, even after the production company pays the distribution costs. There is still a surplus, but the screenwriters, directors, actors and other film sharers will never see the profits. They will not see anything except the deficit on the financial statements?"

"bingo!"

Bill Rossis raised a hand and snapped his fingers, "And this is a legal method. Even in court, it is difficult for litigants to win the company."

Murphy looked up at the roof of the car. The circle was obviously more complicated than he thought.

Thinking Murphy didn't believe it, Bill Rossis added at this time, "I have a ready-made case here."

Murphy has already aroused interest, "Can you tell me if it is convenient?"

This is also a rare experience.

Despite the harsh conditions imposed by various distribution companies, and the evaluation and attitude of the film, Bill Rossis has even higher expectations of Murphy.

He thought for a while and said, "Last year, Disney's Bowei Pictures released a film called "Sixty Seconds", which was produced by Disney Holdings' Jerry-Bruckheimer Studios."

Murphy nodded and raised her ears, listening very carefully as if she hadn't left behind studying filmmaking.

The accumulated experience now may be able to avoid big pits in the future.

"The global box office of this film is about 240 million U.S. dollars, and Disney should get less than 110 million U.S. dollars from it."

While driving the car, Bill Rossis recalled the relevant statistics he saw inside CAA, “After the box office was split, Bowei Pictures began to deduct various expenses from it, including more than 90 million US dollars in publicity expenses. Including $13.4 million in advertising costs, $13 million in copying and printing, as well as $600,000 in insurance, shipping, customs clearance, check redemption and local taxes, the box office revenue left is only about $10 million. "

Bill Rossis shrugged, "Then, start sharing accounts with investors, producers, and actors-after the theater release, a film costing $133.4 million shows $90 million. Around the deficit."

"Except for the number set by the trade union..." Murphy had an impression of the film. The protagonist seemed to be Nicholas Cage. "The actors, directors and screenwriters simply cannot get extra shares."

Murphy sighed, "Only the distribution company and the big studios behind them can make a steady profit under this business model."

"This is generally the case," Bill Rossis nodded, "It also depends on the game between the actors, the agency and them. There is a lot of room for manipulation. If your card is large enough, the agency is very Strong, they still want to continue cooperating, and they will certainly divide some interests appropriately. Those in this circle can climb to a high position, and few will be foolishly waiting to be slaughtered."

He added, “For example, the current top stars like Tom Cruise and directors like Spielberg don’t sign such contracts with production companies at all. What they require is North American or global box office sharing, not profit sharing. , The latter has far more places for legal manipulation than the former."

"It seems that if you want to cooperate with large companies," Murphy took precautions, "you must be cautious when signing a sharing contract."

However, he went on to say, "I am still far away from being seen by a large production company."

Bill Rossis said encouragingly, "As long as you can enter the mainstream film circle, you will soon have such an opportunity."

Murphy has never lacked fighting spirit, smiled and nodded, now that it is still a long way away, he can always finish it step by step.

Just like at the beginning, he even had a problem with the most basic life. Now he has not seized the opportunity to successfully enter Hollywood and directed two films.

Although the publisher has not yet been found for the second part, Murphy's confidence is growing.

On the third day after the screening, Murphy walked into the Fox Searchlight. The company agreed with him at the latest time, and his impression of Tony Guzman was not very good. Strictly speaking, Tony Guzman also let him go.

Of course, Murphy will not be so narrow-minded as to have opinions on Tony Guzman and Fox Searchlight because of this. Starting from the actual situation at this stage, he has to admit that for these little directors and small studios. Said that the issuer is really a very high-end existence.

Unless he doesn't take the cinema channel and throws the film directly on the video tape market.

"Boss, as far as I know," a female assistant in an office at Lionsgate said to Milton Johnson sitting behind her desk, "he has been to Miramax, Morris Entertainment, DreamWorks ...A number of distribution companies have also arranged a trial meeting with Fox Searchlight today..."

Milton Johnson gently squeezed the table with his fingers. "It seems that he will not easily accept our terms."

As one of the senior executives in charge of the distribution business of Lionsgate, the horror film he has watched the most in recent years, and the one that left the most impressive impression was "Chain Saw" whose copyright is not in his hands.

How can we win this film with the least cost, or use this film to create brilliant performance?

This is what Milton Johnson has considered the most in the last two days.

It is okay to appropriately reduce the distribution rate, but the young director's heart is obviously very big, and this does not guarantee that Lionsgate will get the film.