Chapter 101 (1/2)

”Denny, at present, several major studios are very interested in when Harry meets Sally, and the business prospect must be very guaranteed. However, in order to maintain control of the project, Denise pictures prefers to invest independently. On the other hand, the money in my hand will not be available until the end of the year, but the film will start shooting in September. That's why we choose to work with a third party. ”

Although Denise O'Brien took the initiative to contact us after Denise pictures released the news of seeking cooperation, after listening to Simon explain the general situation of the project, Denise O'Brien keenly raised his doubts.

”Simon, as far as I know, Denise pictures has absolute control over both” death is coming ”and” vulgar fiction. ”. It shouldn't be difficult for you to get the same treatment for when Harry meets Sally from the big seven, right

Simon shook his head and said, ”it's different this time, Denny. The point is that I also intend to invest. If you cooperate with one of the big seven, even if you can get control of the production process of the project, the subsequent release is not only the North American cinema, but all other channels are bound to be completely tied up with each other. What's more, the accounting system of big film companies can't guarantee danielis film to get the benefits we deserve. You must know that

Dennis O'Brien nodded in sympathy.

Almost all the film capitals who enter Hollywood hate the ”Hollywood ledger” of major studios and even second and third tier distribution companies.

In order to retain the due benefits of independent producers as much as possible, Hollywood distribution companies will try their best to misrepresent all costs.

Let's take cinema distribution as an example. If it's a project of an independent producer, this is the usual accounting rule for Hollywood distributors and producers.

After the film is released, the distributor will deduct part of the film box office as the distribution Commission. The proportion of this money is determined by the contract between the two sides, and the stronger the producer, the lower the distribution commission he needs to pay.

In the process of cooperation between DreamWorks and paramount and other companies in the original time and space, only 8% of the issuing Commission needs to be paid. But a weak producer would have to pay as much as 15% commission.

But this is just the beginning. The next issue for

issuers is the essence of the Hollywood account system.

Film distribution is definitely expensive.

Copy costs, TV advertising, offline expenses of loss making projects, mowing of lawns in studios, and private airplanes for management vacations are basically included.

In the end.

In fact, the cost of publicity and distribution may be less than half of the production cost, even higher than the production cost of the film in the book of the distribution company.

Can Hollywood ledger be avoided?

No.

This is the rule of Hollywood studios. Even the ”Harry Potter” series, which once had a single global box office of $1 billion, actually suffered losses on its books. Even if the producer is strong enough to send accountants to follow up the release, it will only get a high publicity budget.

Of course, that's the problem.

No one is a fool.

Why is there so much capital in Hollywood?

It's obvious.

Hollywood ledger certainly has a strategy.

For the strong capital, they usually invest in the whole large studio level, then calculate the general ledger, and bear the profit and loss together. No matter how the film company plays tricks on a single project, the overall financial statements must be clear. Otherwise, the IRS won't agree.

As for small and medium-sized film investors, they either choose to sell out the copyright directly or set up a film company to do the distribution in person.

Right now.

Simon's release plan for when Harry meets Sally is basically similar to Lola Run. As far as possible to retain the copyright of various channels, first to the North American cinema, and then according to the local box office results, gradually operate the follow-up distribution. Of course, the main thing is to sell out.

In the office.

Simon and Amy spent more than an hour explaining in detail to Dennis O'Brien the details of CASS, shooting schedule and release strategy of when Harry meets Sally.

Finally, Simon talked about the proportion of investment and the distribution of interests.

”Denny, if the handicraft film industry intends to invest in when Harry meets Sally, my request is that the budget of 15 million US dollars be shared by both sides, which is 7.5 million US dollars. However, in the future, as the producer of the whole project, after deducting the budget cost, danelis pictures needs to take 60% of the net profit of the project, and the rest 40% belongs to handicraft pictures. ”

Dennis O'Brien immediately shook his head and said, ”Simon, it's too high.”

Simon insisted: ”it's not high at all, Denny. You have to understand that it's on the premise that the project is profitable. Denise pictures takes on all the production work, but actually only asks for 20% of the net profit as a commission, which is fair. ”Dennis O'Brien hesitated for a moment and asked, ”Simon, what's the future revenue settlement process? If we participate in the investment, when can we recover the money? ”