Chapter 486 Unilateral Notification
Since the 1980s and 1990s, the reason why Hollywood blockbusters have been sweeping the world is not only because of the developed American economy and the upgrading of filming technology, but also because film distributors can get the vast majority of box office revenues.

In fact, Hollywood produces thousands or even tens of thousands of movies every year, and most of the box office is in a loss-making state, but it still cannot stop the enthusiasm of large, medium and small film and television companies to make movies.

Because once a movie becomes a big hit at the box office, the film distributor can get 70% or even higher share of the box office revenue.

In China, after several rounds of negotiations, the box office revenue of the film increased from 39% to 43%, but when calculated in detail, the producers still bore most of the risks.

Later, in 03, Zhang Yimou's "Hero" opened the era of domestic commercial blockbusters, and the distributors' income was slightly guaranteed, but it was far from enough.

This is also the reason why several major domestic film and television companies have joined together this time. The purpose is very clear, to increase the box office sharing ratio and jointly bear the risks of film shooting.

"As everyone knows, with the application of new production technologies and the exponential increase in labor costs in recent years, the production costs of films have also risen rapidly. The current high production costs of films have put a lot of pressure on film producers and distributors."

Yang Min, the relevant distribution manager of Huayi Company, said slowly.

Han Sanping, Wang Zhongjun, Yu Dong, Wang Changtian, and Song Ge had already understood the cost of production and distribution as they listened to the report.

Everyone knows the current cost situation, otherwise there would be no need to come together to discuss it.

Originally, Wang Zhongjun, Yu Dong, Han Sanping and others had a private communication, and the topic of discussion was naturally whether to invite Xingchen Film and Television Company to join.

According to Wang Zhongjun and Yu Dong, "Xingchen Films currently has its own cinema chain and may not agree to increase the distribution ratio."

"Although Gu Wei has a cinema chain, at present, film production is the main business of Xingchen Film and Television Company. Don't forget that from the end of this year to next year, Gu Wei's company will have five or six movies released."

Everyone thought about it and agreed. Not to mention Hollywood, in the domestic film market, Star Films Company was indeed a behemoth that could not be ignored.

After receiving the invitation from Han Sanping and others, Gu Wei naturally had no time to come, so he could only let Song Ge represent him.

"In the United States, film distributors can get 70% of the revenue share. In China, only 43% is not enough. Theater chains also have to choose their own people. I suggest that we just decide and start with 50% of the revenue share."

The meeting continued, and Yu Dong spoke first, saying that considering the current costs, a 43% share was really not enough.

According to statistics from relevant departments, the domestic box office revenue last year was only over 130 billion yuan, but the cost of shooting these films was as high as around 400 to 500 billion yuan.

"Mr. Song, as the representative of Xingchen Film and Television Company, what is your opinion?"

Wang Zhongjun subconsciously asked Song Ge, here Xingchen Film and Television is not participating as a representative of the distributor, but as a representative of the producer.

"I discussed this with Director Gu before coming here. Although Xingchen Films has its own cinema chain, we definitely support the larger share of the revenue, the better. However, I'm afraid the cinema chain will not agree to a 50% share. As everyone knows, the cost of cinema chains is indeed much higher now. I think we need to increase it gradually. We can't expect to get rich overnight."

“Indeed, if the share drops to 50% all of a sudden, it will be the end of the theater chain. If it really comes to the end, I guess there will be nothing left to talk about.” Wang Changtian also agreed with Song Ge’s point of view.

"Then we should start with 45%. According to the opinion issued by the General Administration, it should not be lower than 45%. They can't just ignore the document issued by the General Administration."

Han Sanping said this directly, setting the tone.

Afterwards, everyone discussed for a long time and finally decided.

The six major distribution and production companies will jointly issue a statement to theaters, increasing the distributor's share of the box office revenue from 43% to 45%.

Major companies are preparing to confront theater chains directly, using their upcoming movies as bargaining chips.

Although there are many domestic films at the end of this year, the most popular ones are "2012", "The Banquet", "The Great Shanghai", "The Grandmaster", "The Chinese Zodiac", "The Guillotines", "Lost in Thailand", "Laughing in ", and "The Secret Garden".

Now all the representatives of the production company have taken them out, which shows everyone's determination.

.........

"Prometheus" and "The Expendables 2" continue to reap box office revenue.

The two films were released just one week apart from Batman and Spider-Man.

At this moment, four Hollywood blockbusters are reaping the profits of the mainland film market. A large number of domestic films have fallen to the ground and become cannon fodder again. The production companies have already suffered psychological trauma.

This wave of operations by China Film Group has indeed put an end to the internal friction among Hollywood imported blockbusters. Originally, any one of these movies could have been a big hit if taken alone.

But now that all the films are being released simultaneously, "Prometheus" is the first to collapse. After its box office exceeded 100 million yuan, its average daily box office has dropped sharply.

Subsequently, the film producer criticized China Film’s behavior online, accusing it of forcibly intervening in the market.

But Han Sanping has nothing else to say. He is just stubborn. No matter what you say, I will just listen and do things the same way.

In mid-September, the epic masterpiece "White Deer Plain", which had been hyped for nearly two years, finally started its pre-release premiere.

I don’t know where Wang Quanan got the confidence from. The premiere was not large in scale, and the external publicity was still about the film screening.

Since it is an epic masterpiece, there will naturally be many industry professionals invited.

Director Zhang Yimou, Director Chen Kaige, Director Gu Changwei and others were among the invited guests.

As a big director, Gu Wei was naturally invited, but the crew had too many things to do and Song Ge didn't have time to go, so Wang Chen was finally arranged to go on behalf of the company. Zhang Yimou also said he was busy, and after discussing with Gu Wei, Wang Chen was made the full representative, not only representing him and Gu Wei, but also Ning Hao and Wu Ershan who were busy.

As for Lu Yang, he put down the work in his hands and walked over happily.

As a result, after the film viewing session ended, Lu Yang couldn't help but complain, "I really didn't understand it. Maybe it was too artistic."

"How high?" Gu Wei asked with a smile.

"It's as high as three or four floors, but the sex scenes are pretty good, tsk tsk."

The two chatted for a while, then looked at each other and laughed.

Although Gu Wei has not seen this movie, as a professional, he knows that it is a bit too far-fetched to tell the complete and wonderful story of a literary masterpiece through a movie.

.........

Major film and television companies are making rapid progress in increasing their profit-sharing ratios.

Within two days, the notice was drafted and stamped, looking quite formal, and then it was unilaterally sent to all major cinema chains.

The notice reads: “Due to the application of new production technology and the exponential increase in labor costs, the production costs of films are also rising rapidly.

In order to promote the creation and production of domestic films, improve the production quality of domestic films, and gradually straighten out the economic relationship between production, distribution, and screening, China Film, Xingchen Films, Huayi and other companies have jointly decided to increase the box office share ratio of mainland films. "

As soon as the news came out, the entertainment media went crazy. Such explosive news caught them off guard.

This is a big event in the industry, involving several major movie giants and theaters.

The main reason was that there was no news about it beforehand, and it happened suddenly, which would have confused everyone. Fortunately, the media reacted quickly and gave it a front-page headline immediately.

Reporters from major media outlets also followed up with reports and interviewed the CEOs of the film and television companies involved.

Even when Gu Wei was entering and leaving the crew of "The Wandering Earth", he was surrounded by reporters and asked several questions.

“Xingchen Films is both a producer and a cinema chain, and I can understand that the producers are under a lot of pressure.

After all, high investment without high returns has really dampened the enthusiasm of the producers.”

Gradually increasing the profit sharing ratio is the general trend in China, and Gu Wei naturally supports it.

Of course, Gu Wei was not the only person interviewed. The reporters also interviewed the CEOs of several other major companies.

"According to the responses from major distributors, producers and cinemas, this news is indeed true.

The producers took a hard line and demanded that the revenue sharing ratio with the cinema chain should not be lower than 45%:55%, and there was no room for negotiation between the two sides." Sina Entertainment reported.

"Film and television companies, led by China Film, have a tough attitude, while theater chains have chosen not to respond. Both parties have no plans to negotiate for now," Souhu Entertainment reported.

This production and distribution caught the theaters off guard.

The cinema chains are in a state of being notified, but they are not easy to deal with.

Wanda, Jinyi, Century Universal and many other cinema chains hurriedly held internal meetings, but the representatives of Dadi Cinemas were excluded. After all, this was a real traitor.

"Haha, Zhang Weiping came here once last time and now he's planning to come again. Does he really think we're easy to bully?" The representative of Century Global said with a sneer.

"I absolutely won't agree to this. It's just one or two times. If I agree to this, will I have to come here every year in the future?"

"We can't indulge the other party this time. Even if we refuse to screen the film and would rather lose money, we can't compromise." Ye Ning said very firmly.

"Correct."

"That's it!"

The representatives below responded one after another.

Afterwards, the cinema chains quickly reached a consensus and responded directly online: "Both the distributors and cinema chains have huge operating costs now, and they are all sympathizing and pitying the producers. But who cares about the cinema chains' feelings?"

The two sides are arguing fiercely. One side is determined to increase its share of the profits, while the other side would rather not make any money from you than increase it.

Some netizens were a little confused, but more people were just watching the fun.

Some people support the theaters, and some people agree with the producers' ideas, but they are only a small part.

For more netizens and viewers, the first reaction in their minds is that no matter how much trouble is done, in the end the sheep will have to pay for it, and the ticket prices will only go up higher and higher.

Perhaps, the purpose of everyone making such a fuss is to raise the ticket price, no one can tell for sure!!!
(End of this chapter)