I was just thinking about taking the arts exam and you said I've been playing supporting roles

Chapter 387 The Manifestation of Ambition, the Beginning of Hollywood's Voyage!

It was still the same presidential suite, but the outer reception room was very quiet.

Bale had just told Costigan some details about "Hong Kong Trip," and now Costigan understood just how big a game Bale and Chen Jin had played.

These two people are really ambitious.

But...Costigan likes it.

He enjoys collaborating with ambitious young people, especially talented young people like Chen Jin.

The influence of China Electronics Technology Group Corporation (CETC) in China is also a factor that Costigan is very inclined to consider; after all, times have changed, Hollywood is now focusing on China, and the Big Six have begun to favor China in their policies.

Originally, the US's core markets were either Europe, Japan and South Korea, or Mexico, Russia, and so on.

In fact, China has never been within Hollywood's purview.

It's not that the Americans don't value it; on the contrary, no one understands China's potential better than them, as evidenced by the sheer number of joint ventures that have entered China.

But the film industry really has no choice.

Because of China's national policies, there are many restrictions on the entry of Hollywood works, and the revenue sharing for imported films is also low.

This makes these guys too lazy to bother talking to China.

You love imports, but if you don't, I can still live a very comfortable life thanks to the global market in other regions.

Even after China joined the WTO, the entry requirements for films did not change much at first.

But this year is different.

They are completely different.

Because the division of China has changed.

This is what is known as the film revenue-sharing system, which has undergone a major reform.

Foreign film producers, when releasing films in mainland China through distribution agents, cannot directly sell the copyrights; instead, they can only receive a share of the box office revenue according to a pre-agreed percentage.

Since the introduction of this model to the Chinese market in 1994 with "The Fugitive," the number of films has been continuously adjusted, increasing from 10 to 34. The revenue sharing ratio has also been optimized from 13% for the US side to 25% this year.

In less than 20 years, the number of films allowed to enter the market has tripled, and the revenue sharing has doubled.

Everything will happen this year.

With a 25% cut and Hollywood movies that easily gross over 10 billion RMB, it would be foolish for Americans not to jump on the bandwagon.

It's important to know that this 25% share excludes marketing and promotion expenses.

This is unique in the whole world.

For domestic films, distribution costs are a significant expense, accounting for 8%-15%. If you add the relentless, all-encompassing publicity, the distribution cost can sometimes reach 20%.

You'll only get less than 25%.

Therefore, the policy regarding imported films has resulted in profits that are almost the same as those of domestic films this year.

This is one of the most advantageous aspects of the revenue-sharing rules in mainland China: the publicity costs are borne by the domestic distributor, while the international practice is for the exhibition distributor to pay for them.

There are only two domestic distributors – China Film Group and Huaxia Film Distribution.

Especially China Film Group, they don't need any publicity or promotion. With full screening schedules, all they need to do is advertise a Hollywood movie, and audiences will rush into the theater without thinking. Yes, that's how enthusiastic Chinese movie fans are about Hollywood movies these days.

And that's not all.

Revenue sharing for online streaming media is also very substantial. Several video-on-demand platforms in China offer revenue sharing based on fees.

A movie costs 6 yuan, and the production company gets half of it!
Under such circumstances, the overtures shown by the six powers to China are obvious to everyone.

Making money isn't shameful when it comes to embracing China.

Of course, Hollywood movies have also had a tremendous positive impact on China.

The phenomenal success of Avatar in 2010 led to an increase in the number of IMAX screens nationwide from 22 to 783... and even forced domestic blockbusters such as The Wandering Earth to improve their industrial standards.

This is the "catfish effect" that China excels at, attracting outstanding enterprises and using it as a unique way to "learn from the barbarians to subdue them"!
Americans aren't blind to this, but they're making money and can't worry about it for now.

Capital seeks a quick way to make money; securing profits as soon as possible is the key.

"If, and I mean if, this film, 'A Trip to Hong Kong,' were a co-production between China and the United States, what kind of policy would that be?"

Costigan has clearly taken the bait.

Moreover, his current investor, Relativity Media, has a precedent of cooperating with China Film Group.

The Forbidden Kingdom, released in 08!
A major production starring Jet Li, Jackie Chan, and Liu Yifei.

It generated tremendous buzz back then, but unfortunately, that was all it was—blowouts. It grossed 1.85 million RMB in China, Hong Kong, and Taiwan combined, and only 1.28 million USD worldwide.

The losses are severe.

This led to the shelving of Sino-US cooperation projects.

Now, with China's policies changing and the market improving, Costigan clearly still wants to give it a try.

"This script might not pass the review of the relevant departments in China!"

"But if China and the US cooperate, they should be able to make an exception!"

What Chen Jin said is true.

If it's an American investment, then the censorship is another matter entirely; human nature and other factors are secondary, the main focus is on whether there's any corruption or regency involved.

Domestically, it's a matter of principle; internationally, it's a matter of politics—completely different directions.

"This way we can get a higher percentage of the profits!"

"We can save a lot of money on marketing and promotion..."

"And in North America, we can also look for distributors!"

In short, Sino-US cooperation is about maximizing benefits, and both domestic and international companies can be found to issue the rights, rather than simply selling the rights as a package deal.

If the movie is good, everyone is happy; but if the movie is bad, the losses are significant.

But when sold in a package, the price is fixed.

For example, the high box office of "Jinling" in North America has nothing to do with Chen Jin, because he has already sold it for more than 3000 million.

"So, all you need to do is find a publisher?"

Costigan saw through Chen Jin's only need.

In North America, we need to find a reliable distributor to fill the theaters when "Hong Kong Trip" is released. The only ones who can do this are the Big Six and a few other film studios, such as Lionsgate, which is now known as the world's seventh largest film studio.

However, Lionsgate's issuance is still much weaker compared to the Big Six.

Films like Relativity Media are all dependent on the Big Six studios and rely on Universal's support.

Without Universal, it's hard to imagine how its films would be released.

The Big Six cinemas do indeed have a near-monopoly in North America, and theater chains have to listen to them.

the reason is simple.

The theater chains are demanding that they show blockbusters, otherwise they'll starve.
AMC, which later became the largest movie theater chain in the United States, went bankrupt. It was expected to be acquired by Wanda this year, but it was eventually sold.

In China, things are different; producers have to beg theaters to give them more screenings.

Unlike Hollywood blockbusters, where you don't need to worry about screenings at all, as they're always packed with movies from the moment they're released.

Moreover, the revenue sharing that theaters offer to blockbusters is quite substantial, with some offering as much as 60% and using tiered pricing. If Chen Jin's "Hong Kong Trip" wants to be released in North America, it will definitely have to give up some profits and get the Big Six to sign its name, so that its release will be guaranteed.

"Our goal, of course, is to increase the number of theaters showing the film in North America; that needs to be guaranteed!"

Chen Jin glanced at Bell, and Costigan nodded knowingly: "Understood, my boss will definitely be very interested!"

"No, Michael!"

Bale didn't want Relativity Media to get involved: "Chan's meaning is very clear, he only wants to work with Universal, Warner, and a few others!"

This is also what Bell is asking for.

"I can't guarantee I can convince those arrogant guys..."

Costigan shrugged: "Hong Kong Trip is indeed a great project, and Killer: Dragon proves Chan and his team's capabilities, but the Big Six... won't take them seriously!"

"It's not that our project is bad, it's just... the investment!"

"The investment is too small!"

"What I mean is, we need to convince my boss that he can get the Big Six to approve our project!"

"Or, go find a legend!"

Chen Jin understood Costigan's suggestion. This was actually the reason why Bell had encountered setbacks at every turn before.

He went to the Big Six, but even if they were interested in his project, they wouldn't really give it a second glance; even if Bale starred in it, even if Chen Jin presented a rough cut of a project like "Killer: Dragon"!

Six major investments make a huge number of films; what is "Hong Kong Trip" compared to that?!

Projects that WarnerMedia personally participates in involve investments of hundreds of millions of US dollars; tens of millions are also handed over to their independent theater chains.

Unless the first "Killer: Dragon" movie is a huge hit, just like the original "John Wick," then the Big Six will have a completely different attitude.

Now, they are high and mighty.

The legendary company that Costigan mentioned is currently the most sought-after independent production company in the world.

His influence globally and even in China is comparable to that of the six major film studios.

Relativity is actually a company of the same nature as Legend.

Both companies serve the Big Six, but some of the movies produced by Relativity Media are not as popular as those produced by Legendary.

The only notable film based on relativity in recent years is the Fast & Furious series; while Legendary wields DC's heavy artillery.

Christian Bale's Batman trilogy, the Superman series, Godzilla, and Pacific Rim are all films produced by this company.

The IP belongs to Warner Bros., but the production is handled by Legendary Pictures, and the projects have been getting bigger and bigger in recent years.

It started by producing movies with budgets under $1 million, but it became increasingly successful, leading to Warner Bros. being credited to it for all its films.

This company belongs to Wall Street and is a shrewd operation spearheaded by Wall Street giants and Warner Bros. to allow hot money to flow into Hollywood and make money.

The boss of Relativity, Ryan Kavanaugh, also came from Wall Street, following the same path as the legendary character, but his luck... wasn't as good as that of the legendary boss, Thomas Tour.

However, Legendary Future was also acquired by Wanda, a company with deep pockets that didn't care about small goals.

Wanda made a grand plan, venturing into both film and cinema chains, but it overextended itself and ultimately failed.

This is just the beginning.

"Michael!"

Chen Jin looked at Costigan and, after talking for so long, felt that the producer still had a bit of sincerity in him.

At least he does want to work with him.

Of course, it could also be Chen Jin's imagination, but in any case, it is necessary to have a heart-to-heart talk.

"I actually don't really want any other companies to get involved in this project with Bell!"

"We just want to get in on the coattails of the Big Six publishers and get some advantages from them. Of course, we can give up a portion of the revenue share..."

However, Chen Jin may have been overly optimistic.

Reality was not so smooth. Even though Chen Jin thought that Liu Da didn't have to do anything, he could still make a lot of money from the release of "Hong Kong Trip".

All he needs to do is arrange the distribution.

But in fact, the "Big Six" is the biggest brand name.

Even if Warner and Universal don't spend a single penny, there are plenty of people who want to work with them.

this is the truth.

Bale's starring role only has a certain box office appeal in the market; in the eyes of capital, it is actually not worth mentioning at all.

This is the awkward situation for a Hollywood actor.

You might have some value, but not much for the Big Six; I could easily replace you.

"I got you!"

"Actually, my suggestion is to cooperate with Relativity or Legendary; that's the best way out!"

"Have them contact the six major cinemas to arrange the premiere..."

Costigan laughed and said, "Besides, we're cheaper. If you really don't want us to invest, my boss probably will. He's been having a lot of trouble lately and is looking for a hit product to make a splash in the market!"

Both companies are from Wall Street. One is thriving, while the other, apart from the short-lived success of "Fast & Furious," had its IP taken back by its parent company, Universal, and has had no further development. What would you think if you were in their shoes?
"Only if we succeed will we have the confidence to negotiate with the six major powers!"

"Moreover, your Chinese identity currently gives you a significant advantage!"

The Big Six may not take Chen Jin and Bell seriously, but they certainly value the Chinese market.

Once Chen Jin proves his box office appeal in China, as well as his ability to produce and film movies, the Big Six might be begging him to make films in the future.

This is what a true comeback looks like.

"Michael, are you interested in 'Killer Dragon'?"

Chen Jin suddenly launched a surprise attack.

"Ok?"

Kostigan paused for a moment, but then instantly realized what he meant: "You mean?"

"I'm confident that 'Killer: Dragon' can pass censorship in China and strive for a global release. Originally, I wanted to participate in film festivals to trade for overseas distribution rights, but now I have a new idea!"

Bell, who was standing to the side, clearly understood as well.

Killer Dragon!
If this movie is successful in North America, the six major film studios will obviously take notice of Chen Jin.

In reality, Chen Jin had no intention of collaborating with North America on the sequel to "The Killer"; he was merely using it as bait for the "Hong Kong Trip" project.

Just kidding, the "Hitman" series is part of the "John Wick" universe, how could Chen Jin possibly collaborate with the six major studios on this IP?

Collaborating on "A Trip to Hong Kong" would be a good idea.

This is a strategy for Chen Jin's film release.

If "Killer: Dragon" is successful in North America, then "Hong Kong Trip" will definitely be successful as well. At that time, Chen Jin will infinitely increase her influence in North America regarding "Killer 2".

Perhaps by then, he will have a certain influence in North America, like Jet Li and Jackie Chan.

"If it were 'Killer Dragon,' that would be even better!"

"Hong Kong Trip" is just a project that hasn't even started yet, while Costigan has already seen the rough cut of "Killer: Dragon".

If I had to pick a movie that I think will be successful, it would definitely be the one I just watched.

The film was almost finished, and he could already see its commercial potential.

"I'm willing to give up 5% of the share, in exchange for Relativity ensuring my theatrical release in North America..."

"5%?"

Kostigan chuckled slightly: "Getting the theory of relativity published by Universal also costs money!"

"That's between your boss and Universal..."

"Haha, if we really want to cooperate, shouldn't we sit down and have a proper talk?"

In fact, the moment Chen Jin announced the share allocation, everyone present knew that the situation had become about the final share allocation and the theaters where the film would be shown, rather than about cooperation.

The cooperation has already begun, from the very first moment Costigan began negotiating with Chen Jin.

Now, all Chen Jin wants to do is use Relativity Media as a springboard to help "Killer: Dragon" achieve higher box office returns.

This makes the "Hong Kong Trip" project even more valuable.

This is what Chen Jin needs to do now.

The previous sale of the North American distribution rights for "Hitman: Dragon" has now turned into finding a local North American distribution "agent" to secure more theater support for its release in North America.

Only when the interests of the two parties are aligned can the box office be maximized.

With ample screenings available from the start, Chen Jin was full of confidence in the two films, "The Killer" and "Hong Kong Trip," which had already proven their worth in the market.

As long as enough cinemas are open, box office revenue will definitely not be a problem.

The reason why the two films in my previous life didn't become box office hits was because they couldn't find good distribution partners in North America.

As for "John Wick," the investors never expected the movie to become such a hit.

This is the current situation.

Aside from Chen Jin, even Costigan and Bell only thought that "Killer: Dragon" might have a box office potential and that the script for "Hong Kong Trip" was decent. They had no idea what would happen to the two films afterward.

Chen Jin was aware of this.

Therefore, sacrificing interests to gain greater benefits is a perfectly feasible policy!

You have to give up something to gain something more!
(End of this chapter)