It's reasonable for me to be a three-time Golden Horse Award-winning director and an all-around

Chapter 184 The people are simple and honest, Brother Tan is full of talented people, Arkham... It's still easier to make money from foreigners!
From the official preparation and filming to the launch of a unique marketing and promotion model, which ignited a nationwide buzz, and then to its theatrical release, it has now successfully finished its run in theaters...

Overall, Paranormal Activity is definitely a highly successful game that achieved great results with a small budget.

What's even more remarkable is that it didn't repeat the mistakes of "The Blair Witch Project".

Although the latter became a huge hit, its reputation completely collapsed.

In contrast, Paranormal Activity has earned audiences high expectations for a sequel thanks to its solid plot and high quality.

A sure-fire money-making machine thus took root in Hollywood.

This is also a common practice in Hollywood: once a movie is successful, sequels will be released one after another until it stops making money.

"North American box office far exceeded expectations, with the film grossing over $1.03 million in its first 60 days of release..."

Inside the office, Jason was excitedly reporting his achievements.

This data allowed Paranormal Activity to successfully rank 20th on the 2005 North American box office chart.

The top 20 on the list, especially the top ten, are all box office giants, with each grossing over $1.8 million in North America.

The top-grossing film was "Star Wars: Episode III – Revenge of the Sith," which grossed $3.8 million in North America.

Following closely behind was "I Am Legend," produced by Luckin Films, which grossed $2.91 million at the North American box office.

The third place went to "The Chronicles of Narnia," which competed with "I Am Legend" in December, with a North American box office of $2.46 million.

Following that are films like "Harry Potter and the Goblet of Fire" and "War of the Worlds." As for "King Kong," its North American box office was just over $1.5 million, far behind the top films.

Despite the fact that Paranormal Activity's box office performance was far behind these blockbusters, its $200 million production cost made it stand out!
It's worth noting that the production costs of those blockbuster movies can easily reach hundreds of millions of dollars.

For this reason, the media directly bestowed upon it the title of "King of North American Horror Films in 2005".

Although Lü Rui's name has not entered the public eye, he has been remembered by major film and television companies.

His motto in North America has always been: play it safe and don't be reckless!

However, his name kept appearing in the producer and executive producer sections, so the Academy of Motion Picture Arts and Sciences extended an invitation to him, hoping that he could become one of the Academy's members.

Lü Rui did not refuse, since he was already a member of the producers' alliance.

Having the right to vote for the Oscars is a recognition of his status in the industry.

The relevant documents have been submitted, and barring any unforeseen circumstances, this news will be officially announced before the opening of this year's Oscars.

Jason continued to enthusiastically report on the results: "After calculation, the North American box office revenue share has been fully received. We have earned a total of $5253 million in profit in North America from this movie."

Upon hearing this, Lü Rui couldn't help but slap the table, his voice full of approval:
"it is good!"

This result is definitely satisfactory, and it's worth all the effort he put into the publicity plan.

"Lv, you deserve the most credit for achieving such results."

Jason made no secret of his admiration.

The outside media only thought that the distribution of Brom House played a role, but those insiders knew that it was all thanks to Lü Rui.

He came up with the plan, he issued the task, and his subordinates simply carried out his ideas.

Lu Rui smiled and said, "No, this is the result of everyone's joint efforts. I couldn't have done it alone. Give the order that everyone's bonus will be doubled this month!"

There's no need to hoard the fame once you've made the money; it's meaningless.

As a company leader, in order to enable the team to achieve a synergistic effect greater than the sum of its parts (1+1>2), in addition to one's own abilities and personal charisma, the ability to bring benefits and tangible gains to followers is also a crucial factor.

Jason smiled broadly: "I'll pass on the news as soon as I get back, and I'm sure all the employees will be very happy."

At this moment, he felt more and more that cooperating with Lü Rui was the best decision he had ever made.

A share of $5253 million!
Since its inception, the combined revenue of all of Brom House's businesses has barely reached parity with that of Brom House.

This is just the first project; many more projects are waiting to be launched...

He even began to fantasize: maybe one day, Brom could rival Lionsgate, or even catch up with DreamWorks.
Previously, he only dared to target Lionsgate, after all, they also started with low-budget films.

But now, he feels that his goal can be further afield.

With the backing of Hollywood's Big Three and the support of the Samsung Group, DreamWorks is raising funds and expanding its business, aiming to become the "seventh largest Hollywood studio."

Now, with Ruixing Pictures joining forces with Blum House, and with the support of Lü Rui and the Eastern Market behind him, they may well have a chance to surpass it.

Although this goal is far away, it now seems to have a chance of being achieved.

Just as he was envisioning the future, Lü Rui suddenly changed the subject: "Let's talk about the details of financial expenditures and income."

Jason immediately produced a pre-prepared report and gave a detailed presentation:
"During the entire operation of 'Paranormal Activity,' the Brom House invested $1500 million in advertising, $500 million in distribution, and $300 million in distribution costs for the released videotapes and DVDs, for a total expenditure of $2300 million..."

A $2300 million distribution budget compared to a $200 million production cost is ridiculously exaggerated!
None of the three of them felt there was anything wrong with it.

The $1.03 million box office was a success achieved through massive marketing and promotional spending.

In standard Hollywood practice, marketing and distribution costs are usually half or even equal to the production cost, and the corresponding box office revenue is only 3 to 5 times the cost.

However, the box office of "Paranormal Activity" was 51.5 times its cost!
All things considered, the investment in marketing and promotion is undoubtedly very worthwhile.

If he hadn't been absolutely certain the film would be a huge success, Lü Rui would never have dared to implement such a crazy publicity plan.

Of course, another reason is that he owns the full copyright to the film.

The North American share alone was $5253 million, and there were also videotapes, DVDs, television rights, and overseas rights to come. No matter how you look at it, it's a sure thing to make money.

Jason continued, "The DVD and videotape sales are also progressing smoothly. Our offline distribution department has had stable relationships with Walmart and Best Buy for many years..."

Videotapes and DVDs of horror films have always been the main source of revenue.

Going back to before 2000, since the invention of the videotape, film distribution has no longer been limited to theatrical screenings.

Nowadays, especially with DVDs, it's no exaggeration to say that they're supporting Hollywood.

The core reason is the huge gap between profits and costs.

Compared to traditional videotapes, DVDs, even in North America where labor costs are extremely high, cost only 50 cents to produce and only $3 to $5 to sell.

However, the official price is generally around $20, and it is common for deluxe sets and limited editions to sell for $100.

The main reason for this is the superior picture quality of DVDs compared to videotapes.

In today's blockbuster era, most movies rely on special effects to attract attention, and videotapes simply cannot provide the same level of impact.

However, the picture quality of DVDs is very clear, especially for horror movies, which often bring an excellent viewing experience.

Especially when it's late at night and everyone is quiet, watching DVDs alone on the living room sofa can be even more immersive than watching a movie in a theater!

"The DVD release of 'Paranormal Activity' has generated over $1000 million in sales and rentals in just one week, and negotiations for television broadcasting rights are underway."

Jason's report concluded here, but it also conveyed a crucial message.

The profits from this movie will continue to come!

This is the confidence that comes from having a publishing company in hand and standing at the upstream of the industry chain!
"Okay, hard work."

Lu Rui was in high spirits as he thought about the funds that were about to arrive in his account.

Peter, who was standing nearby, chimed in at the right moment to add financial details: "The $2300 million spent on marketing and promotion for the Brom House was all borrowed from Ruixing Film Studio."

Next, they will repay the principal and interest, with an interest rate of 15%, for a total repayment of $2645 million.

In addition, Ruixing Films will transfer the five-year print rights to "Paranormal Activity" to Broome House for $15 million.

Lü Rui nodded slightly, indicating his understanding.

This is standard practice in Hollywood, a transfer of funds between different parties, mainly for tax deduction purposes.

Peter added, "After deducting repayment and copyright transfer fees, the remaining funds will be temporarily held in the Brom House account as working capital to support the release and advancement of subsequent projects."

Lu Rui had previously given specific instructions, requiring Jason to scour the world for the rights to low-budget films for resale.

Although we can only earn a little from the middleman and the price difference, every little bit helps.

Moreover, once enough copyrights are accumulated, they can be packaged and sold, which is also a way to make money.

Blum House used to survive on this kind of business, and the fact that it has been able to develop to this day shows that there is nothing wrong with this way of making money.

Since there are no problems, there's no reason to give up.

Part of the remaining working capital was used for these purposes.

Lu Rui picked up the conversation and added firmly, "Besides using it to acquire copyrights, this part of the funds also needs to be used to expand overseas distribution channels. Our next plan is to try to extend our distribution reach overseas."

While it's now possible to ensure that North American channels are no longer subject to external control, overseas channels are still suppressed by other publishing companies.

More importantly, building overseas channels is much more difficult than building channels in North America.

Looking across Hollywood as a whole, aside from the Big Six studios, only a handful of companies possess overseas distribution capabilities. Even the ambitious DreamWorks currently lacks the capacity to penetrate overseas markets.

If we don't try to establish overseas distribution channels now, we'll eventually end up like DreamWorks, always lacking a crucial overseas distribution channel.

In contrast, Lionsgate, although it didn't have the capability at first, managed to carve out its own path through acquisitions and self-built projects.

Ultimately, DreamWorks was acquired, but Lionsgate was able to remain independent and even outperformed the Big Six in profitability on multiple occasions. This is the advantage of a global distribution channel!

Although this part of the work is very difficult at the moment, Lü Rui believes that as long as one is willing to put in the effort, and given the current relatively low level of competition, it is very likely to succeed.

Of course, all of this is based on the fact that Ruixing Films can continuously produce high-quality films and entrust them to Brom House for distribution.

Jason listened to Lü Rui's words and found that they were very much in line with his own views. He immediately said, "Lv, don't worry, the road may be long, but I will definitely work hard to explore it!"

His eyes were full of certainty.

Lu Rui reached out and patted him on the shoulder, encouraging him earnestly: "Keep going, I believe in you!"

……

As soon as Jason finished his report, he immediately got up and returned to Brom House.

He needs to arrange a remittance to Ruixing Film Industry as soon as possible.

As Lü Rui had previously stated, he urgently needed funds and dared not delay.

Meanwhile, Peter didn't waste any time; he took out the project schedule and continued his report:
"After 45 days of release, The Legend of I Am Legend has grossed over $5.5 million worldwide, and Warner Bros. predicts that the total box office will eventually reach $8 million."

The North American box office far exceeded the overseas box office, all thanks to the premiere you designed. Warner Bros. was initially worried it was too risky, but now it seems the results have far exceeded their expectations.

Lu Rui chuckled lightly: "For movies to fetch a high price, promotion is key. Warner Bros.' previous approach was too outdated. Although they have strong distribution capabilities, their promotional strategies are simply too backward..."

Speaking of this, he couldn't help but think of the later film "Suicide Squad".

This movie was also distributed by Warner Bros., and its quality was mediocre.

Warner Bros. had long been aware of the film's problems and worried about not being able to secure the rights, so they specifically hired a professional publicity company to develop a plan.

After taking over the project, the company did not hesitate and immediately cut all the best parts of the film into the trailer.

Unsurprisingly, the trailer became an instant hit! The box office soared to the top in its first week.

But viewers only realized after watching the finished film that the trailer was actually the highlight of the whole movie, while the actual film was a complete mess.

Even with all the criticism, it didn't stop them from making a fortune in business.

This is the importance of promotion. Finding the right method can instantly turn a 'weakness' into a 'selling point'!
Peter wholeheartedly agreed: "Lv, you're right. Warner Bros. previously wanted to follow the old routine of releasing press releases and running variety shows, but it was your insistence on an immersive premiere that allowed the audience to immerse themselves in the atmosphere of 'post-apocalyptic survival' in advance, which is why the film generated so much buzz before its release."

Warner Music is now saying that for their next collaboration, their promotional plans will prioritize your input.

"Haha, let's talk about it next time..."

These weren't the key issues at the moment, and Lü Rui didn't dwell on them too much.

"I Am Legend" is still showing in theaters, and the box office revenue sharing won't be available for a while.

After briefly reviewing the data and confirming that the box office would easily surpass that of "The Chronicles of Narnia" and "King Kong" at the same time, he put the project out of his mind and moved on to other topics:

How are the negotiations with Warner Bros. and 20th Century Fox progressing?

“Very smoothly!” Peter’s tone was full of confidence. “With the success of so many projects, especially the huge success of ‘I Am Legend,’ these two companies now have extremely high trust in Ruixing’s production capabilities and your adaptation abilities.”

He first talked about the "300" project: "In the end, we got a 45% share, and Warner Bros. also agreed to a production cost of $150 million."

They initially wanted to cut costs, but after seeing your detailed storyboard plan, they immediately agreed.

Then he talked about "Life of Pi": "20th Century Fox was willing to license the script for adaptation, but they had concerns about the $200 million cost and were only willing to take a 40% share, demanding that we take 60% and bear $120 million of the funding."

"no problem!"

Lu Rui's eyes lit up, and a look of joy instantly appeared on his face.

He is least afraid of spending money; what he fears most is the other party not agreeing to cooperate.

Once the other party is willing to join the game and share the risks, the subsequent progress will be much easier.

In its previous version, 300 had a production cost of approximately $65 million and ultimately grossed $4.56 million worldwide.

From a commercial perspective, the film's box office revenue far exceeded its production costs, and it still made a significant profit after deducting routine expenses such as marketing and distribution. It is a typical commercially successful film that achieved both box office success and critical acclaim.

This time, Lü Rui asked for $1.5 million.

But in reality, he plans to stick to the style of his previous life and keep the cost below $8000 million.

This is already very generous!
He refused to believe that the $6500 million revealed by Warner in his previous life could all be used wisely.

Then the remaining $7000 million can be used for accounting and such, and all of it can be pocketed.

The production cost of "Life of Pi," as revealed by 20th Century Fox in its previous version, was approximately $120 million.

After its release, the film grossed $6.09 million worldwide. Even after deducting marketing and other expenses, it still made a very considerable profit, making it a commercially successful film.

This time, Lü Rui made an outrageous demand, asking for a production cost of $2 million.

In fact, he intends to keep the cost below $1.2 million.

As for the remaining $8000 million, it can all be embezzled.

In other words, if these two projects were launched simultaneously and the accounts were made to look good, Ruixing Pictures would not only not have to spend a single penny, but could also earn $1.1 million in the early stages!
Thinking about this, Lü Rui couldn't help but sigh, "It's still easier to make money off foreigners!"

Of course, this is based on the premise that both films will make money after they are made; otherwise, the money that is pocketed would be easy to take but difficult to spend.

Lü Rui is very confident about this!

Both of his previous films were huge hits, so how could they possibly lose money when they're in his hands?

So he immediately urged, "Go with this agreement and urge them to make the payment as soon as possible so that the funds can be deposited into the account."

"Ok!"

Peter knew what he meant and smiled in agreement.

The two then discussed the company's current operations.

As the company grows larger and new employees join, some are unable to perform their duties and need to be dismissed.

Lu Rui took this very seriously and earnestly instructed, "The dismissal procedures must be handled flawlessly. Multiple rounds of review are necessary to confirm that the employee is truly incompetent before dismissing them, understand?"

The reason for such caution is twofold: firstly, there is a concern that layoffs might affect vital sectors.

Secondly, the labor unions in the United States are not just for show!
If certain procedures are not done well, or if the compensation is not in place, and the labor union is involved, the cost will be much greater than the compensation for severance pay!

This is completely different from the situation in China.

“I understand.” Peter nodded solemnly, but then sighed helplessly, “Why are they still unwilling to do their jobs properly even though I pay them enough?”

He came from a poor background, so he couldn't understand why some people would slack off at work.

"This is normal and has nothing to do with your management. People are inherently lazy, and not everyone is willing to work hard and make sacrifices after receiving rewards."

Lu Rui comforted him, but he himself remained completely unaffected.

After all, he was already used to this kind of situation.

Human nature is the most difficult thing to fathom; no expert can guarantee that they can completely understand the thoughts of higher animals.

It's not just abroad; it's the same in China. There are countless people who slack off while earning high salaries.

Excellent employees are really hard to find.

Thinking about it that way, Gotham is actually better.

The people of Big Brother Tan are simple and honest, and Arkham is full of talented people!
When it comes to finding talent, Gotham is the place to go!
After his conversation with Peter, Lü Rui did not stay at the company for long.

That afternoon, Jason Blum transferred a total of $4145 million to Ruixing Films' account.

In addition, 20% of the box office revenue from "Taken" has already been received...

There are over $5000 million in the account!

After working so hard for so long, I've finally saved enough money to buy a house, so I'll have a place to stay when I come to Los Angeles in the future.

The thought filled Lü Rui with excitement, and only one thought remained in his mind:
"Beverly Hills! I'm here!"

……

……

P.S.: Requesting monthly votes and recommendation votes.

(End of this chapter)