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Chapter 5 Financing of Films (3/8)

"Have you seen the novel "The Wandering Earth" and "The Wandering Earth"?"

Lucbesson looked confused.

"The sun is about to be destroyed, and the existence that has served as the spiritual pillar of human beings over the past countless years has become a symbol of death and terror. Instead of waiting for death, human beings choose to struggle to the end.

The huge plan for escape from the earth has begun to be implemented. However, the ordinary-sized artificial environment that humans can create cannot withstand a long escape journey. Therefore, humans have to install a huge earth engine on one side of the earth, turning the entire huge earth environment into an immigration ark, so as to escape from the solar system and head to their new home..."

After briefly introducing the plot of "The Wandering Earth", Zhang Junsheng looked at Luc Besson: "This is the most popular science fiction novel in China!"

“…This is very difficult to shoot!”

Lucbesson hesitated for a moment.

Just listening to this idea, you will know that you will definitely not be able to shoot without a cost of 100 million or 200 million!

"There is also a "Full-band Blocking Interference"..."

Before it ended, Zhang Junsheng said another work by Liu...

"Zhang, Europa Film Company can only launch projects worth less than 50 million US dollars..."

"We can raise funds!"

Lucbesson immediately got Zhang Junsheng's idea: "...Do you want to get money from the Germans?"

Well, basically when it comes to financing, the first thing that comes to mind is Germany...

The total investment in Tomb Raider is $94 million, but in fact, Paramount did not spend a penny on production, and the cost was zero.

"Tomb Raider" is hailed as a model of Hollywood capital operation.

Their target of making money is Germany!

According to German tax laws, film investors can get a tax refund in advance, and the money can be obtained before the filming begins.

It is also effective not only for German films but also for foreign films invested with Germans; more importantly, German law does not require movies to be filmed in Germany or to cooperate with German filmmakers, but only requires German production companies to own the copyright and dividends of the film.

This is why many Hollywood producers don’t look for a director first when they get the script, but a German investor first.

Before the filming of "Tomb Raider", Paramount directly sold the film copyright to a German company for 94 million yuan. Next, Paramount rented back the film for 83.8 million US dollars for 20 years, and Paramount immediately made $10.2 million.

The German company nominally owns the copyright of this movie. According to German tax laws, the company received a tax refund of about 10% of the future movie revenue, which is a benefit of the German company.

As for who lost money?

Maybe he is a German citizen, after all, the funds used for tax refunds are obtained by tax collection.

Not only that, the British tax law also has similar regulations on tax refunds for film investment. The only difference from Germany is that British law requires that movies with tax refunds must be filmed in the UK, either partially filmed and produced in the UK, or hired British filmmakers; therefore, Paramount hired several British actors and technicians. In this way, Paramount sold the film copyright to a British bank in the same way, making another $12 million.

Next, Paramount pre-selled the overseas distribution rights of the Tomb Raider to film distribution companies in Japan, Britain, France, Germany, Italy and Spain, selling a total of US$65 million.

Through the above three tricks, Paramount received a total of $87.2 million, with less than $7 million remaining in budget, and obtained by selling the film's broadcast rights on paid TV stations in the United States.

Paramount solved the problem without spending a single cent on the movie...

As for the only lawyer fee I paid, in fact, a large company like Paramount specializes in supporting a group of excellent lawyers and accountants, so I don’t even have to pay for lawyer fees...

You heard it right, Paramount didn't spend a penny on "Tomb Raider", which had a total investment of $94 million, and a Hollywood blockbuster was made like this!

... From now on, all the box office, DVD, and peripheral products after the movie are 100% net profit!

Huge profit...

It is still easy to operate the blockbuster, provided that the project itself is attractive enough!

Expensive lawyer fees and agency fees are not something that ordinary low-cost movies can afford. More importantly, the overseas distribution rights of ordinary movies are all after the movie is made. The film merchants will watch the sample films and think they can sell them for money.

The box office of art films cannot be guaranteed, and there is no way to raise money through this way.

This is the real reason why the six major Hollywood film companies like to make blockbusters!

"I admit that what you said is attractive, but..."

Luke Besson hesitated for a moment. The two works Zhang Junsheng mentioned were not practical at all. "Tomb Raider" was adapted from the game. The "Tomb Raider" game has a very large influence around the world and has a huge fan base.

Chinese science fiction novels have no influence overseas...

"So, I hope you can be a producer!"

Zhang Junsheng immediately responded.

Lucbesson's influence is still very strong, and there is no problem with completing a financing of 50 million US dollars...

"…Haha, I don't have such a strong attraction!"

Fifty million US dollars can only solve half of the budget, what should I do if the remaining half is done?

"You underestimated the Chinese rich people's interest in movies!"

Zhang Junsheng smiled: "I can guarantee that as long as you come to China early next year and announce your role as the producer of "The Wandering Earth" and "Full Band Blockage Interference", I will be sure to add more than $50 million in funds!"

...

Mainland tycoons are very obsessed with big directors!

"The Warriors' Gate" invests nearly $50 million, and the main investment is Kimei Pictures;

"Wolf Totem" invests nearly US$60 million, and the main investment is China Film...

"Night Peacock" produces a cost of US$10 million, and the main investment is Haixiu Media...

French directors are still very popular, and Chinese tyrants welcome such great directors. Lucbesson and Zhang Junsheng, some tyrants are willing to endorse the letter!

Wanda and Xingmei are interested in cooperating with Yuehua, and believe they will not reject a big cake like "The Wandering Earth".

The most important thing is that if Yuehua has these big projects, the listing will be much smoother!

As for whether it will lose money, please, science fiction film, "Avatar" will be released next year, and will be converted into 3D in the later stage, and the box office in the mainland will definitely exceed 500 million...

It is unlikely to make a big profit, but it can definitely guarantee Yuehua's profits.

...

Don’t think that Zhang Junsheng is vicious. In fact, his approach can be called good. After all, "The Wandering Earth" and "Full Band Blockage Interference" are high-quality projects. If you make money, he will share the profits to that company!

Where is Hollywood?

Eat people without spitting bones!

For example, Germany, in many cases, is used to "take the bottom", especially projects that celebrities are keen on but studios are not optimistic about, and are most likely to find foreign investors to act as cannon fodder in the market.

Celebrity pay is sky-high, which invisibly increases the risk factor of the film; but if a celebrity takes charge, foreign investors are easily misled.

Many big stars are already in the setting stage in the United States, but overseas people still have the understanding of their value 5 or 10 years ago, so these stars who were already priceless have the opportunity to make a comeback again and again.

Stallone is famous. A few years ago, he wanted to film a movie "The Eyes Look at You", but Hollywood manufacturers were not interested at all when they read the script. Fortunately, thousands of Germans paid for it and easily raised the 60 million budget for the film.

The filming of the video was completed. When the Global Supervisor saw it, he didn't even have the courage to send it to the cinema for distribution. After a year of suppression, he quietly sold it to the video rental store Pepsiarch...

As for the investments of the German "aggressives" of course, they were all flooded with water and could not make a penny back - minus various issuance costs, it is impossible for investors to have a share.

The German tax law will not be amended for the time being, and will not be amended until 2016...

I have to be cheated for eight years!
Chapter completed!
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