Hollywood Road

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Although Bill Rossis was just one of many inconspicuous agents within CAA, Murphy, a novice, couldn't match his understanding of the industry.

Murphy has also seen the ability of Bill Rossis, and he still believes in some of his words.

He turned to look at Bill Rosses, and asked curiously, "Tell me."

"You also said just now that the six major distribution companies will charge up to 30% of the distribution fee for the films produced by their own studios or their subsidiaries. It is a pure commission that does not include the cost of publicity."

Murphy nodded. This is not a secret in the industry. Distribution means distribution commission. Major studios usually charge 30% of the distribution fee for the films they invest in.

Of course, they sometimes charge a 30% commission for distributing films from other small companies, but this basically includes the cost of publicity and distribution.

Under normal circumstances, if it is an agency release, that is, a film produced by outside investors, in order to ensure that the film has a large enough audience, there will often be fierce negotiations with the big studios on the percentage of the distribution commission, but usually if it is not enough If you are strong, you will generally compromise between 15% and 18%.

The publicity fee for this distribution method is calculated separately.

Judging from the distribution ratio on the surface, this is a very strange phenomenon. Distribution companies charge high distribution fees for their own films, and the ratio of foreign films is much lower.

"According to Hollywood's accounting practice, every self-produced film released by the six major companies will set up an independent shell company..."

Bill Rossi immediately explained this, "In this way, 30 percent of the publishing commission would be paid to the publisher as a cost item of this external entity, which is essentially the same company."

Murphy is not an idiot, and immediately understood, "The purpose of this is to make the production company pay a lot of fees for the film, so that it will be difficult for the production company to show profits, even after the production company pays the distribution fee. There's still a surplus, but the writers, directors, actors, and other moviegoers will never see a profit, and they won't see anything but a deficit on their financial statements?"

"bingo!"

Bill Rosses raised one hand and snapped his fingers, "And this is a legal method. Even if it goes to court, it will be difficult for litigants to win the company."

Murphy looked up at the roof of the car, and the circle was obviously more complicated than he imagined.

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

Murphy has already been aroused, "Can you tell me if it's convenient?"

This is also a rare experience.

Despite the harsh conditions offered by various distribution companies, the evaluation and attitude towards the film made Bill Rosses have higher expectations for Murphy.

He thought for a while, and said, "Last year, Buena Vista, a subsidiary of Disney, released a film called "Sixty Seconds," which was produced by Jerry Bruckheimer Studio, which is controlled by Disney."

Murphy nodded and pricked up his ears, listening very carefully as if he had never left behind his study of film production.

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

"The total 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, Bill Rosses recalled the relevant statistics he saw inside CAA, "After getting the box office share, 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,

$13 million in photocopying, plus $600,000 in insurance, shipping, customs clearance, check cashing, and local taxes, leaves only about $10 million in box office receipts. "

Bill Rossis shrugged, "Then, start splitting the bills with the various investors, producers, and actors-after the theatrical release, the film with a cost of $103.4 million shows $90 million left and right deficits.”

"Except for the figures rigidly stipulated by the trade union..." Murphy had an impression of the film, and the protagonist seemed to be Nicolas Cage. "It is impossible for the actors, directors and screenwriters to get the extra share."

Murphy said with emotion, "Only distribution companies and the big studios behind them can make steady profits under such a business model."

"This is generally the case," Bill Rosses nodded. "It also depends on the game between the actors, the agency and them. There is a lot of room for manipulation. If your cards are big enough, the agency will Strong, they still want to continue to cooperate, and they will definitely divide some interests appropriately, and few people in this circle who can climb to a high position will be foolish and wait to be slaughtered."

He also said, "For example, the current first-line superstars like Tom Cruise and directors like Spielberg don't sign such contracts with production companies at all. What they ask for is a share of the North American or global box office, not a share of profits. , the latter can legally manipulate much more places than the former.”

"It seems that if you want to cooperate with a big company," Murphy prepared ahead, "you must be cautious when signing a sharing contract."

However, he added, "I'm far from being seen by a major production company."

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

Murphy has never lacked fighting spirit, and nodded with a smile. It seems that there is still a long way to go, and he can always complete it step by step.

Just like at the beginning, he even had problems with the most basic life, but now he has not seized the opportunity, successfully entered Hollywood, and directed two films.

Although the second part has not yet found a distributor, Murphy's confidence is getting stronger and stronger.

On the third day after the preview, Murphy walked into Fox Searchlight. The company made an appointment with him the latest, and the impression of Tony Guzman was not very good. Strictly speaking, Toni Guzman also let him go.

Of course, Murphy will not be narrow-minded enough to have opinions on Tony Guzman and Fox Searchlight because of this matter. Starting from the actual situation at this stage, he has to admit that for small directors and small studios like them, It can be said that the publisher is really a very high-end existence.

Unless he doesn't go through the theater channel and directly throws the film into the video tape market.

"Boss, as far as I know," the female assistant said to Milton Johnson sitting behind a desk in a Lionsgate office, "he has been to Miramax, Morris Entertainment, DreamWorks ...A number of distribution companies have made an appointment with Fox Searchlight today to hold a preview..."

Milton Johnson tapped the table lightly with his fingers, "It seems that he will not easily accept our conditions."

As one of the executives in charge of the distribution business of Lionsgate Films, he has watched horror movies the most in recent years, and the one that left the deepest impression is "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 past two days.

It is also possible to appropriately reduce the distribution commission ratio, but the young director obviously has a big heart, which does not guarantee that Lionsgate will get the film. To be continued.