Author: Trojanrw

Investing in a movie directly, it sounds a good profit and allows you as a rich man to obtain a good story in front of friends. But in fact, it may be an extremely complex and dangerous adventure.

Then, then

Looking for a suitable card lineup, managing production costs and contacting efficient distributors, it is only a few less troublesome actual obstacles that film and television investors need to work with the producer during the production process. If you have enough industry

Experience, or can hire professionals with rich employment experience to control risks, these difficulties can be effectively resolved.

The real success or failure of the movie sometimes does not depend on material conditions. No matter how strong the lineup and the production are good, it may become a commercial bomb like "Nine". Because the most difficult to measure and defined in the world is the cinema audience elusive

The noise murmos made by the impervious viewing preferences and the film critics.

After all, the taste is fickle. In this decade, a widely attractive story may become bland in the next decade.

If you can achieve business success, the production company can not only turn a movie into a trilogy, a series of movies and even a movie universe, but also sell from international sales, family entertainment, paid TV, free TV, film and television streaming media, surrounding products and even even

It is the theme park authorization fee. But if the movie encounters a box office defeat, it may also cause a lot of casualties.

What casualties?

Of course, from the behind -the -scenes team of the production company, to the producer and director, to the career of the screenwriter, starring and starring, etc.

Most people can only see "Avatar", "Titanic", "Avengers" and "Jurassic World".

The income after being released can give birth to a single -piece gross profit that can also be unprepared.

To be the simplest cross -border comparison, Han Yi acquired UTA's direct negotiating opponent, Michigan Investment Bank, the gross profit of the entire company in 2015 was $ 552 million.

What about the total revenue of "Jurassic World" worldwide? 1.672 billion US dollars!

Deduct all the production costs and the cost of publicity. The actor is divided into the cinema line and the streaming media. In the end, it can still fall into the hands of the filmmaker.

This is the bright and glorious shown by Hollywood to the outside world. Institutional investors and individual investors, watching the Marvel universe harvesting global ticket warehouses year after year, envy and jealous of eyeballs.

This kind of urgent mood to want to invest in a huge profit industry, and I saw Taylor Swift's new album with the fund managers and the world tour with the world's tour to Universal Music Group.

But they forgot the most fatal point. Regardless of whether the film and television industry or the music industry, they are the brutal jungles of the winner as the king.

Where and so, people naturally ignore the wreckage of the losing wreckage stacked in the corner.

We have mentioned the 19th law of the music industry, and in the film and television industry, this proportion is not much better. It can even be said that it is worse.

Hollywood and Capital have been in harmony for decades. Until now, at least 10,000 movie drafts on the tables of major film and television companies have been accumulated, 90%of them are killed, and nearly 1,000 projects are prepared at the same time. These projects are about 60 60

-70%can be completed in the end, which means that every year, Hollywood alone will transport 600-700 movies to the global film market.

One day two new films, no matter how large the cinema line, can not carry such a number of releases. Therefore, in hundreds of movies, less than one -third of the films can get good ducts, the issuance matrix

And publicity exposure.

In other words, before the realization of this step, Hollywood has eliminated 98%of the projects and 98%of project investors.

Comparing with the real estate industry, if a real estate company spend $ 10 million to develop a high -end residential project in Belly Mountain, then its expectations may be to get 50%of the gross profit margin, that is, the built house is $ 15 million for $ 15 million

The price is sold to consumers. If this goal can be completed, the real estate company will think that it has reached the expected revenue goal.

Old set, classic, and safe.

However, on the film company, it is also a film that costs 10 million US dollars. If a publisher is willing to pay prepaid payment for the same price, it is already a great event worthy of the producer to play the crown.

It means that this means that they have at least get rid of the situation of losses, and whether they make money in the future or not, they are already the 2%stage winner.

This is the cold reality of Hollywood, whether it is movie or music, even if even TV shows are the same. Take the pile of bones to pile up a glory general. This is why there are only six major movie companies in Hollywood,

The reasons for the three major music distribution groups and three public television networks.

In an industry that cannot find a fixed number like a gambling, of course, capital hot money will quickly gather in the safest place.

Holding the ball to warm up, you will not freeze alone in the snowstorm that can't see the direction.

However, even so, the operations of the six major film industry are always in the difficult situation as thin ice. The parent company of Columbia Films Sony Film and Television Entertainment Group is a tragedy, hacker attack, box office defeat, plus Wikiker

In less than a year, the Lone Star Fund and Citi Group quickly abandoned the negative news Sony Films, which prompted the latter to fall into a deeper financial crisis.

The two major investors have exited collectively, the liquidity of Sony Films is almost exhausted, and the parent company Sony Entertainment, including the parent company's parent company Sony United States, and the final big BOSS said the cash reserves of the Sony Group are also at a historical low. As of 2016,

On March 31, 2015, all the cash reserves of the Sony Group were only 16 billion US dollars, a decrease of 6.67%year -on -year. It is worth noting that on March 31, 2015, the cash reserves had fallen by 8.65%year -on -year.

For this level of Titans, $ 16 billion is actually almost the same as the 160 dollars of paper banknotes on ordinary people.

In this case, it is naturally impossible for a superior group to have enough funds in the short term to help Sony Film through difficulties. What is worse is that in the 2010s, the situation of foreign pre -sale is becoming increasingly unstable.

Many production companies that rely on overseas issuers to advance the production process, such as Waynestan Films, have fallen into a deep financial crisis.

Although in addition to overseas pre -sale, film and television companies can also obtain funds through gap financing or super gap financing.

Under the case.

The gap financing is essentially a form of mezzanine debt financing. It takes the unsold overseas region's right to screen and other rights as a mortgage to complete the film's financing plan.

If you go out, you can get a life -saving money.

But the disadvantage is also obvious. If the box office of the movie encounters Waterloo and the income of overseas regions cannot repay the gap financing loan, then the producer puts himself into a deeper debt trap.

The kind of interest.

Help money can become a debt at any time.

Therefore, in the current Hollywood financing market, private equity capital has become almost the only choice in the case of large -scale film companies in the case of cash. This is what Sony Films, whose bank accounts are about to bottom out, urgently need to do it.

They have to find new investors as soon as possible, make up for the holes that are not optimistic, and then pray for popular projects, such as "Spider -Man: Return of Heroes" and "Space Travele", which can succeed in the business market.

Help Sony out of the valley.

But investors are not fools, especially for the film and television investors who have been pitted by Hollywood year after decades. Those Sony Films and Columbia Pictures are not optimistic about items.

Therefore, when Han Yi appeared, Yu Wei, who was acquired by $ 190 million to acquire the United Artist Broker Company, made a intention to invest in Sony Films to invest in Sony Films through Kevin Hart.

Colleagues in the development department are almost happy to be angry.

For this children's fantasy readings published in 1981, the entire story line is closely related to the desktop game. The original starring actress that had just died before died less than two years ago, what is the view of Sony in Sony?

In the words of the chairman and CEO Tom Roseman of Sony Film Group:

Jumanji is not jurassic.

"" Brave Game ", not" Jurassic Park "."

Han Yi repeated the words of Christopher Charnson, chewing carefully.

"So they mean?"

"The idea of ​​Sony side is to see if you want to be Slate Deal." Christopher opened his mouth, and seemed to be thinking about how to make the next sentence softened as possible and not to anger Han Yi. But

No matter how hard work, he couldn't find a better means than frankness, "300 million US dollars, 30 films, 5 -year period, 25%share."

"$ 300 million?" Han Yi thought he had heard it wrong.

"Yes, 300 million."

"Other conditions are consistent with the lone star and Citi?"

"Yes."

"Do they know me ... clear the details of the previous transaction?" Han Yi hugged his chest with some funny hands, "They did not hide the previous transaction as secretly hidden, and there were specific numbers on the Internet."

"Of course know." Christopher spread his hand and pursed his lips helplessly, "But this is still the initial condition of Sony. I asked about the situation of investing in the movie ... but they are very smart, in principle, they do not accept the single right.

Investment of the film. Even if you want to invest, it is in the form of bridge funds, short -term borrowing. After three to six months, the full return is returned, and it is calculated at a higher interest rate than the bank. This may not be great for us.

"

"I understand." Han Yi glanced at Jordan Bromley, "It seems, we have to talk to them in person."

"There is no doubt that this is the case."

Jordan made a slight head and said.

"But when you meet, we should hide our true purpose as much as possible."

"Correct, this is my idea."

Han Yi's eyes brought a trace of surprise. Even if he had long understood the keen mind of Jordan-Bromley, the latter could still make him amazing from time to time.

"I only learned about the" Brave Game "project through Kevin." Han Yi described to Kevin Hart to describe his excuse when meeting with Sony Films, "My purpose is to follow Kevin with Kevin

-Hart and Boulder Johnson, two big stars have been launched to help them complete the project smoothly in order to better carry out other aspects of investment cooperation ... As for the film itself, I don't know if it will be profitable, and I don't care. "

"In this era, who wants to play the desktop game?" The intelligent and extraordinary Kevin immediately understood the meaning of Han Yi. He shrugged and ridiculed humorously.

"Yes, who plays the desktop game. We have never been to Comic-Con."

Han Yi smiled at Erhang Road. In business negotiations, the opportunity to occupy the opportunity is not louder than whom -branded roar, but more lifelike than who wears the mask.

Be careful not to reveal your true thoughts to the other party, so that the transaction can be carried out on the established orbit that you conceive.

Since Sony himself is skeptical of "Brave Games", then they don't need to know that they are optimistic about this film.

The lower the estimated value of the project, the more share that the owner is willing to transfer.

"But if you operate this way, you may have to eat some bad movies, easy." Jordan-Bromley added, "I know ... as a camouflage."

"Maybe, but I think we should be able to control a package of agreements around five films, not thirty. They want to share the risks, we don't want to help them do it."
To be continued...