The Fantasy Entertainment Empire

Chapter 229: Acquisition

Fan Zhe is looking forward to playing the beta version of "Taiwu Picture Scroll 2" a week later, but before that, he still has a work report to listen to.

Ye Jiayi approached him to talk about the proceeds of the movie "Hell's Apartment".

At present, "Hell Apartment" has basically been offline from major theaters, and the total box office has been fixed at 380 million yuan.

At the moment, the domestic movie market is already a huge ticket warehouse comparable to North America. A variety of movies with a box office of two to three billion are frequently released, which was impossible to imagine a few years ago, let alone a monster with a box office of more than five billion in "Wolf Warriors 2".

In this environment, the 380 million yuan box office of "Hell Apartment" can be regarded as unremarkable.

It’s just that you can’t count that.

In name, "Hell's Apartment" is just a 20 million investment scale movie, in exchange for nearly 20 times the box office, it is already a pretty good result.

At least, it can definitely be considered a success.

"...The division of box office profits between us and Heye Pictures has ended. In the past week, relevant payments have been received one after another."

"After deducting the funds for the theaters, deducting taxes and fees, and then calculating according to the distribution ratio between us and Heye Pictures, we have recovered about 96 million yuan of funds through the box office."

"At the same time, the derivative rights, network on-demand, and TV broadcast rights were all sold separately, and the total revenue reached 50 million yuan. According to the agreement, 20% of the profits in this area belong to Heye Pictures, and we can here. Harvest 30 million yuan."

"In the movie "Hell's Apartment", our total domestic income reached more than 126 million yuan, which is very rich compared to our investment."

"Ten percent of the 126 million profit, or 12.6 million, belonged to Lotus. The profit we really got was about 114 million."

"At the same time, we are currently promoting the overseas release of this work. It is expected that it will be released on a small scale in North America and Europe, but there should be a larger scale in Asia. Our copyrights in Europe and the United States are all bought out. In the form of sales, it sold five million US dollars. In the Asian region, it is operated by a box office share. It is expected that the film will be released worldwide after the year."

This is another tens of millions of yuan in income.

"In general, in the movie "Hell's Apartment", we can probably make more than 150 million in profits."

Fan Zhe couldn't help nodding after hearing what Ye Jiayi had said.

In fact, Dimension Entertainment's investment in the "Hell Apartment" project is only three million dollars.

The real rate of return has reached 50 times!

Even with a nominal investment of 20 million, it is 7.5 times the rate of return.

This is real profiteering!

Fan Zhe is also quite complacent, this is the first movie he directed!

To be able to achieve such a result, in fact, even he himself did not think of it.

At the beginning, he started shooting this movie with the idea of ​​practicing his hands. At that time, he didn't think much about profit, he just tried it out and practiced purely. Even in his mind, he planned to lose money in the end.

I didn't expect to make so much in the end.

However, on another thought, Fan Zhe felt that some things were quite painful.

"Lotus Leaf Pictures, when our film was released, didn't it still get a bit dirty with us?"

"Ok."

"Then... we are at a loss. We took the risk, made the film, and distributed it to them. The publicity cost they invested was not high. As a result, they cut off the profit of the film by more than 100 million! It's really unhappy..."

This is indeed very uncomfortable, and it is also the most uncomfortable place for many companies in the industry that do not have distribution channels.

I invested a lot of money and spent a lot of energy to make a movie. If it fails, the distributor will not lose too much; if it succeeds, the theater will be grandfather, and the distributor will be the father. In the end, there is not much profit left to the producer.

Large-scale distribution companies are the upstream of this industry chain, and they can naturally exploit the producers.

Dimension Entertainment has suffered at this point.

In the beginning, if Lotus Films did its best to do its best in publishing, why was "Hell Apartment" so bleak in the early stage of its release? If the early box office exploded, will the final box office be a lot higher than it is now?

No one knows this, but it doesn't prevent Ye Jiayi from thinking so.

Under this circumstance, it was really uncomfortable to distribute that much money to Heye Pictures in accordance with the contract.

It was this discomfort that gave her an idea.

"Fan Zhe, I want to buy a distribution company."

Hearing Ye Jiayi's thoughts, Fan Zhe didn't hesitate at all, and directly agreed: "Okay."

His idea is very simple. In the future, Dimension Entertainment will inevitably make a lot of movies. In the cultural and entertainment industry, movies are undoubtedly the most influential and profitable category, the top cultural product, and the most important battlefield for ‘dimensional entertainment’ in the future.

If you establish a distribution channel yourself, you will never run into such disgusting things from the distribution company in the future. At the same time, the profits generated by the film can be put into your own hands as much as possible.

Establishing a distribution channel from scratch is very slow, and there will be many difficulties. A better way is to buy an issuing company directly, which is more appropriate.

Ye Jiayi didn't have any surprises for Fan Zhe's willingness to agree so readily. She continued: "I already have a goal, Xinmo Media, do you remember this company?"

"Remember ~www.NovelMTL.com~ When Du Zhengde shot "Movie Warfare", he invested and produced this company."

"They are a company that integrates investment, production and distribution. They were founded ten years ago and had a good performance at the beginning. However, after the "Magic Shadow War", successive failures have seriously affected them. They have raised funds many times, but they still haven’t stopped the company’s decadence. Many shareholders have already withdrawn their capital. I probably don’t know, we can take this opportunity to acquire this company. Although they did The film is not very good, but the distribution channel is relatively complete."

"How much will it cost?"

"If it was acquired four years ago, it would be at least 6 billion. Now, their assets have shrunk very seriously. It is said that most of the film rights have been sold to them, and the distribution channels have also shrunk. It is estimated that the wholly-owned acquisition may be possible. About 1.5 billion can be won."

"1.5 billion?" Hearing this number, Fan Zhe raised his eyebrows, "Do we... have so much money?"

——

The last chapter has been revised. After the continuous shooting of "Budo Master", it was divided into two parts and launched. Thanks to the reminder of [Chocolate Bones], I feel that this is indeed more reliable.

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