In Shahai Entertainment's office, Mary sat opposite Ronan and asked, "How to settle this account?"

Yesterday, all the overseas copyright fees paid by Sony Entertainment in two times have been received. The Human Clearance Plan is a typical financing and shooting project. Ronan has signed a contract with investors in Abu Dhabi, and will be heading to Abu Dhabi to raise funds again. It will definitely share the profits of investors.

But how to distinguish it specifically will have a lot of room for operation.

"We try to standardize operations as much as possible." Ronan has been studying Hollywood's financial regulations and accounting standards, as well as relevant laws since May, and has a good understanding of this aspect. He has considered it since signing a contract with Sony Entertainment. He said: "This involves the next financing plan, and we can't do it too much."

Mary nodded, not to go too far, not to be able to do it.

Ronan picked up the teacup and took a sip, then said: "In the industry, the taxes for tax filing next year are deducted first, and then 15% of the management expenses are deducted, and this is also deducted."

This is a legal expense incurred during the shooting and production process. The film is fundraising for shooting, but Shahai Entertainment is the project operator. The manpower, time, loss, office and business management expenses generated during the period are also a cost paid by Shahai Entertainment.

Mary didn't say anything, but just wrote a note on the notebook, and the management cost was not too much, which was $3.75 million.

This ratio is of course calculated before tax.

Ronan put down his teacup and continued: "$25 million is the licensing fee for the two films "Human Purge" and "The Jedi". Is it not appropriate to share half of one film?"

Mary shook her head and reminded: "We need to raise funds there, we can't go too far."

"What about a quarter?" Ronan asked again.

This fundraising is also related to the next step in establishing issuance channels, and the efforts are now for more gains.

Mary thought for a while and said, "It's not appropriate, the proportion of "The Jedi" cannot be too high."

Ronan nodded slightly, thought for a moment, and said, "It's $3 million."

As a conscientious entrepreneur and capitalist, he is still quite generous.

Many companies in the industry often let bad movies share one-third or even half of their revenue when packing.

Sure enough, I am a good person.

Well...this should be true.

With the box office of "The Jedi" of 800,000 US dollars in North America, the most optimistic overseas copyright is to sell for 500,000 US dollars.

What's more, the overseas copyright of this bad movie is simply ignored. If it were not packaged, it would only be crushed in your hands and rotten.

"$3 million?" Mary thought for a while and said, "Two videos were sold in packages, one of which only accounts for one eighth, so it should be fine."

Arabs don’t understand these legal and compliant operating methods in Hollywood at all. They originally packaged "The Jedi" to dilute profits.

"There is the last item, profit sharing." Ronan said directly: "This is based on the law and contract. We are a film manufacturer and naturally enjoy 20% of the profit sharing of the film."

This is a small clause in the contract signed at the time. As the producer, Shahai Entertainment, of course, is not a waste of work, and can give priority to withdrawing 20% ​​of the profits.

Just 20% of this proportion is also a conscientious discovery in order to attract investment. For truly unscrupulous companies, the prerequisite for distribution is not profit, but total revenue.

Mary wrote down another $5 million in her notebook.

Ronan resisted the desire to create more expenses and said to Mary: "The account is made more beautifully and more standardized."

Mary nodded: "I'm going to do anything else."

"Go." Ronan responded.

In just two days, a financial statement of market revenue outside North America from the Human Purge Plan was submitted by Mary to Ronan.

Sony Entertainment paid $25 million, deducting $3.75 million in administrative expenses, $3 million in profits from "The Jedi", $5 million in producer profits, plus pre-due taxes and producer league management fees, etc., and finally $11 million remained.

For the next financing consideration, Ronan gritted his teeth and vomited blood.

When I went to Abu Dhabi, I took out the relevant reports and proved to the Arabs: Look, what a trustworthy person I am.

For Hollywood, there are two completely different groups from local investors and overseas investors.

Treat differently, any country or industry has it.

With more than 10 million US dollars in legal income, Ronan has more confidence and has instigated three plans at the same time.

First, the upcoming trip to Abu Dhabi, code-named "Operation Desert"; second, solve the issuance channel, which is one of the important reasons for his continued financing; the other is a possible trip to India in the future, code-named "Asan".

Especially for the latter action, after studying the laws and regulations here and the industry rules that are common in the industry, Ronan is preparing to play a big game.

Robert found out that people from India have been active in Hollywood recently. It seems that some investment institutions in India are doing preliminary preparations for future investment in Hollywood.

I am not afraid that you want to invest, but I am afraid that you don’t want to invest.

In addition, Ronan once again emphasized that Shahai Entertainment took Lionsgate Pictures as a role model to acquire a distribution company as soon as possible.

George and Robert found information about two small distribution companies, and Ronan gathered together for a while and then gave up.

The scale of these two issuing companies is too small and the channels are simply incomplete. It is better to build a new issuing company than to acquire them.

Ronan knew the importance and key role of distribution, because the case of Lionsgate Films publishing the Human Purge Plan for Shahai Entertainment was in front of him.

After six weeks of screening, The Human Purge Project exhausted all its potential in the North American market and was released before Thanksgiving.

The six-week screening time is not long, but it is more than the Halloween 7 starring Jamie Lee Curtis in "Halloween 7".

The box office of "Human Purge" in North America was US$52.5 million, which is a box office boom compared to the public production cost of US$11 million.

The film has just been removed. With the participation of relevant staff from Shahai Entertainment, Lionsgate Film quickly completed a number of offline distributions, with the large licensing fees and North American box office share, and paid in full one after another.

In terms of authorization fees, Lionsgate Pictures has its own video tape and DVD distribution channels. According to the industry's rules, the copyright of North American home theaters composed of video tapes and discs is authorized to Lionsgate Pictures with a basic transfer fee of 5 million US dollars and a 20% rental and sales share.

Then, the public TV station has a ten-year broadcasting rights of $3 million, the cable TV station has a ten-year broadcasting rights of $2 million, and the Internet has a five-year broadcasting rights of $500,000.

In another Hollywood commercial film revenue-oriented derivative, horror films have always been weak and powerless, and the derivatives license only sold $1 million.

Lionsgate Pictures has just been established, and it is not a newcomer without foundation or a company outside the industry. Generally speaking, it still follows the spirit of the contract. After various incomes are received, it will start profit delivery with Shahai Entertainment.

In terms of box office, North America's box office was 52.5 million US dollars. Under the rules of prevailing, the box office of Lionsgate Pictures was deducted and the various taxes and fees were finally 26 million US dollars.

According to the issuance contract, Lionsgate Films drew 28% of the total box office in North America, or 14.7 million US dollars, including promotional and distribution expenses.

The distribution of home theater copyrights, new media and television copyrights was $2.1 million.

Derivatives are $505,000.

Lionsgate Films earned $17.3 million from the Human Purge Program with a total investment of only $6 million.

This can be said to be huge profits.

Small-cost horror movies that are so popular at the box office can create amazing revenue ratios even if they are included in the promotional and distribution costs.

Starting from the end of November, Lionsgate Pictures has successively paid Shahai Entertainment various share shares. In more than a week, Shahai Entertainment received a total of US$20.2 million.

With the $11 million public cost removed, and the investment of Shahai Entertainment in the film promotion and distribution stage, Shahai Entertainment, the producer, made profits in the North American market, even less than that of the publisher of Lionsgate Pictures.

(The income calculation rules refer to the two books "How to talk about business in Hollywood" written by Dana Appston and August Fanny's "Guide to Business Operations of Independent Films". The situation may be different from the reality, but the authors of both books are both practitioners in the entertainment industry, so there will be no special differences.)
Chapter completed!