Hu Fang continued while making tea: "Last month, a movie called "The Veil of Wheat" caused a storm. I heard that the publisher Fang Xingyue Times organized salesmen distributed across the country to sell their movie investment shares on the grounds of film investment, resulting in more than 40 people being trapped and losing all their money in the end."

Chen Feng curled his lips, wasn’t it caused by huge profits?

With the emergence of popular movie projects such as "Nezha", "Wolf Warrior 2" and "I Am Not a God of Medicine", many laymen want to participate and get a share of the pie?

Deserve it!

The transfer of film share has never been a new business. The film and television and financial industries have always been closely intertwined. However, compared with other industries, film and television have more serious information asymmetry, which is simply a step-by-step trick.

"The external fundraising share of movies usually only takes three time periods: one is to raise funds outside during the project incubation period, with only one script or even an outline stage."

"The second is that the project is advanced to the medium term, and the cash flow suddenly breaks, so the main creative team has to seek help from the outside world to extend their lives."

"Third, the film has been filmed and produced and is in the waiting period before release. The producer is unwilling to bet on all profits on the market, so he chose to resell most of the movie shares before release."

Hu Fang said: "Of course, the high premium of these shares allows the seller not only to recover costs, but also to make most of the profits in advance."

Chen Feng nodded. The so-called three ways of playing actually correspond to three ideas. The first one was more common in the first few years when the film and television industry exploded. At that time, hot money was surging in the industry and crowdfunding models emerged.

But 17 years later, due to box office fraud and tax reimbursement, movie crowdfunding players have successively left the market. Now the tide has completely receded, and only some long-standing teams or film and television centers with government backgrounds can have enough appeal to attract investment;

The second type is more common in some literary and artistic directors and animation directors supported by emotions. They are often forced to do so and the returns are unstable. Lu Wei, the producer of "The Return of the Great Sage", raised funds through his circle of friends.

Later, the box office myth was set, with 89 investors participating in the return rate exceeding 400%!

The last gameplay is more similar to the financial idea. It is not uncommon in the industry to package related film and television projects into a financial product, that is, the producer first adopts a follow-up investment strategy to obtain shares, and then sells them to other investors at a premium.

During the reselling of shares, it is a completely reasonable business behavior for the seller to charge a certain premium. Although the early share of film and television projects is low, it requires solid connections to obtain it.

"Let me say that, the most difficult movie project is in the incubation period. I have seen a boss who hired a bunch of screenwriters to write scripts, with salary plus rent, burning millions in two or three years, but the book was still not finished."

"It's equivalent to the highest risk period being taken, so you shouldn't earn more?"

"Can you transfer the price to the next company for other people to make money?"

Hu Fang is now an insider and said deeply: "Logic is indeed true. But the key point of the controversy lies in the extent of the premium."

"For large companies in the industry that hold early shares, the premium is still in a more reasonable range. In order to safeguard investors' interests and company reputation, they often promise to sign a repurchase agreement."

"If the box office does not meet expectations after the movie is released and causes investors to lose money, the company will make up for the difference between the promised and the actual income."

"Everyone's funds have time costs. From investors paying for subscription shares to movie releases, it often takes more than half a year or even one or two years. In addition, the settlement cycle will only start at least three months after it is offline, and the longest time can even reach one or two years."

"So companies that are willing to sign a repurchase agreement during the share sale are already considered conscience in the industry. If the chain continues to extend downward and secondary investors resell after obtaining the share, it will be even darker."

Chen Feng understood that under the temptation of high commissions, the premium rate will be entirely based on one word, and the entire system will become more and more biased towards pyramid schemes, and downstream investors will naturally have no guarantees.

Because almost every expense in film and television projects is not transparent!

It is simply difficult to verify whether there is oversubsidy, which is almost unfeasible from a technical perspective. In addition, there are many investors in film and television projects and the capital flow chain is long, so it is very difficult to trace and determine responsibilities in such cases.

In other words, as long as the contract subject can be released normally, investors will not be able to prove that fraud exists. In most cases, they can only be regarded as investment failure and think that they are unlucky.

Last May, Xu Zheng posted a solemn statement on Weibo about the impersonation of the sales investment share of the movie "囧妈" and even if the director has issued a statement, there are still people selling the project income rights of "囧妈" online.

Can you even guarantee direct contact with Xu Zheng for an interview?

Some scammers also combine fake projects with Internet technology to develop financial apps to attract investment, and then run away with money after the explosion. Let’s learn about the two apps, Jingu Film and Television and Yinglian Film and Television.

Ultimately, the industry's financing methods are limited. Large financial institutions must be behind film and television projects costing hundreds of millions of dollars in the United States, which is why Hollywood can continue to sweep the world.

The main way to make funds for domestic film and television projects is to raise funds by the company itself. If this almost primitive financing chain continues to develop, it is easy to blur the boundary between financing and pyramid schemes.

Some laymen have spent money in.

I don’t know that the theater chain will have to pay in the end?
Chapter completed!