Huayu: A Commercial Director

Chapter 156 A Powerful Alliance, Complete Release

As December arrives and the weather gets colder, the film market is heating up.

As living standards improve, the cultural and entertainment industry is becoming increasingly diverse, and more and more people are turning their attention to the entertainment industry.

As movies, TV series, variety shows, and celebrities rise in status, their salaries also change daily.

Especially after internet companies entered the market, a group of powerful figures became even more terrifying than coal mine owners, and many production companies started using their methods.

They abandoned the traditional film and television industry methods and adopted the most labor-saving and fastest way to make money by producing works.

They have even discovered that variety shows promote people much faster than movies and TV series.

Compare her to Dilraba, and you'll see. Many people know that Dilraba became incredibly popular last year and is now a top-tier female celebrity. The problem is that she doesn't have many works yet; the only noteworthy one is her role as the third female lead in Painted Skin.

Through variety shows and television dramas, she became a top-tier actress.

What's most frightening is her earning power; conservatively estimated, it could bring Yang Mi's studio a small fortune.

A top-tier female star can be worth more than a listed company. If they can successfully manage one project, they will never lack money.

Many companies have started to learn from the Korean Wave and adopt their methods to cultivate new talent.

Last year, a company launched a singing group consisting of three underage children, who were active in various events, and one of their songs became a hit among many primary and secondary school students.

With the addition of four people who returned from South Korea, as well as girl group members and others, it's fair to say that the entertainment industry today is not what it used to be.

It's become more entertainment-oriented.

What works have those people created?

Who would be willing to spend $100 million and 22 months to produce an animated film?

Sometimes it's not that you can't do it, but that you don't need to.

Why bother creating a good work when you can make money lying down in a comfortable environment?

With the rise of companies like Alibaba, the domestic film market will only continue to decline, and box office revenue will flow to films with better production quality or more fantastical marketing.

Those films with low investment and little fame will fade into obscurity, be replaced by big studios, and eventually disappear.

Chen Shouzhe's animated film was considered crazy by people in the film industry, but from the perspective of the authorities, Chen Shouzhe's actions deserve encouragement.

Many media outlets have contacted Chen Shouzhe, wanting to do an interview.

Chen Shouzhe only told one of them that it would be later, and that they would talk about it next month; he refused the rest if he could.

It's too early to give interviews now. Although Let the Bullets Fly is also from their company, WALL-E is too important. It's an independent product of their own company, so it needs to be given the maximum amount of publicity.

Chen Shou drove himself to the company, wearing a down jacket that wrapped him up tightly, and took the elevator from the underground parking garage to Shouzhe Film Studio's office.

"Has Sister Zhong and everyone arrived?" Chen Shou asked.

“Chairman Wang has arrived,” Zhong Lifan said.

"Those who live nearby arrive faster," Chen Shou said with a smile.

The company had turned on the underfloor heating. I took off my clothes and went into the office. Wang Changtian was already drinking coffee on the large sofa in the reception room.

"Director Chen, you've really given the film industry a huge shock." Wang Changtian put down his coffee and smiled as he saw Chen Shouzhe walk in.

"It's nothing, it'll be announced sooner or later," Chen Shou said with a smile and a wave of his hand.

"Will this distribution be handled by Enlight Media?" Wang Changtian said, rubbing his hands together.

If Enlight Media can secure the distribution rights for the animated film, they'll definitely make a fortune.

Although Enlight Media's stock price has only fallen slightly, it is still declining, and they need good news to stimulate the stock price.

Several pieces of good news from Huayi helped stabilize its stock price, with various news items constantly emerging.

It's a joke that a company that has moved away from filmmaking ends up maintaining its stock price by acquiring star companies.

"I want to be thorough this time," Chen Shou said, shaking his head.

"Two companies?" Wang Changtian sighed.

“At least two,” Chen Shou nodded.

Wang Changtian immediately understood that if it were him, with a total investment of 700 million including publicity, he would indeed need to ensure the film's distribution was thorough.

Distribution involves sending films to various theaters, which requires on-the-ground promotion. It's impossible for Enlight Media to do it thoroughly on its own, as the distribution capabilities of a single company are ultimately limited.

Some distribution companies can only distribute to cinemas in a few cities, resulting in very poor distribution efforts.

If we want to cover cinemas across the country, relying on Enlight Media alone is far from enough.

If there are at least two companies involved, it means that the profits are being shared, and the profit-sharing ratio needs to be split between two or even three companies.

Even if it's split among three companies, there will still be many distribution companies eyeing this lucrative market. Distribution is inherently a sure-fire way to make money; if it's a bad movie, they only collect a one-time distribution fee, ensuring they don't lose money.

Big-budget films are definitely charged on a percentage basis, and they can be distributed more thoroughly.

The reason why many large production companies and theater chains have distribution rights is that distribution is a sure-fire way to make money.

As long as there are buyers, they can find sellers.

Many companies, including Huayi Brothers, Bona Film Group, Emperor Entertainment Group, Enlight Media, China Film Group, and Wanda Pictures, have distribution capabilities.

Enlight Media has the deepest relationship with Shou Zhe Pictures. This year's films, from Painted Skin to the upcoming Let the Bullets Fly, all have Enlight Media's distribution footprint. It is precisely because of the profits from these distribution businesses that Enlight Media has stopped its stock decline this year.

With just one film, A Chinese Ghost Story, they earned tens of millions in distribution fees. Which distribution company can do that?

Issuing such a product is a sure thing, but you won't make too much money from it.

With the performance record standing out, Wang Changtian clearly understood Chen Shouzhe's thoughts. If it were him, he wouldn't have entrusted such a large production to just one distribution company.

We must go all out and push it to every cinema chain, even private cinemas and places like foot massage parlors.

During the conversation with Wang Changtian, Ye Ning also arrived. He was going to move to another place after finishing this month's work. He was just going through the motions, and Ye Ning was an excellent professional manager. He knew exactly what he should do.

Just when Wang Changtian and Ye Ning thought there were only two companies, Vice Chairman Wang also arrived.

China Film Group, Wanda Media, and Enlight Media jointly distributed the film, with China Film Group also responsible for distribution in Southeast Asia and overseas.

Emperor Entertainment called yesterday, but unfortunately, China Film Group has already taken the lead. As a state-owned enterprise, they are a long-established distribution company and are also quite domineering. Emperor Entertainment simply cannot compete with them. If they had invested, it would be fine. For example, Emperor Entertainment was handling the distribution of "Let the Bullets Fly" in Southeast Asia.

Chen Shouzhe gave up enough points among the three publishers, letting others grab them.

The typical distribution fee is over ten million, and this is a fixed price. Only when the film is deemed to have no potential will a fixed price be set.

The more promising a film is, the more likely it is to receive a share of the box office revenue, usually around 10%. This requires negotiation among the production company, distribution company, and theater chain.

Chen Shou's strength allows him to secure more revenue from theaters because he has the capability to do so.

In reality, most production companies only receive about 30% of the box office revenue; getting 40% is already considered quite impressive.

Chen Shouzhe's films typically generate just over 40% of the box office revenue. After deducting distribution costs, production costs, taxes, and other expenses, the actual amount he receives is far less than he would have imagined. The real focus is on the profits from the film's copyrights in the later stages of production.

Many films lose money when they are released, but make a fortune from copyrights.

Chen Shouzhe offered the three distribution companies a minimum fee of 5%. They would never agree to a fixed price. Chen Shouzhe's films never had a fixed price; he always offered the minimum distribution fee.

The rest is up to the three families to discuss how to allocate the funds.

With the distribution power of these three companies—China Film Group for established cinemas, Enlight Media for independent cinemas in smaller places like county towns, and Wanda Cinemas, the largest cinema chain in China, which can guarantee the largest number of screenings—these three companies cover almost all cinema chains nationwide.

Of course, besides Anle, after being jointly blacklisted, Anle's shopping mall saw a decrease in foot traffic due to the loss of the film market.

After all, shopping is often paired with watching a movie.

When taking your girlfriend to the movies, can't you not grab a bite to eat and try your luck at the mall? You can also browse the supermarket and buy some daily necessities.

The merchants in Anle Shopping Mall are dissatisfied with the loss of foot traffic from the cinema and have demanded that Anle sell the mall, or they will leave Anle and choose to do business elsewhere.

Anle was forced to take drastic measures and sell these shopping malls to recoup his money as soon as possible, otherwise it would be even more difficult once the company went bankrupt.

Chen Shouzhe nearly ruined a listed company, and now no cinemas or production companies dare to steal its box office revenue.

Many production companies both loved and hated Chen Shouzhe; he curbed box office fraud, but at the same time, he prevented them from doing so.

The cinemas were also afraid of being punished, so they dared not continue stealing.

Originally, stealing box office revenue was one of the ways for theater managers to make extra money, but now, as long as you report it, you can get Chen Shouzhe's movies to appear.

Chen Shouzhe had previously promised a netizen that when the filming of Painted Skin took place two months ago, that person actually played a role and posted stills from the film on their Weibo account, experiencing the joy of being an actor.

Chen Shouzhe also paid him a small fee, only a few hundred yuan a day, but he covered all the expenses, including round-trip airfare, accommodation, and meals.

Seeing his photo with Yan Danchen has made countless netizens envious.

Report any box office fraud you discover, and then find Chen to keep an eye on your movies.

Even some talent agencies want to do this, as appearing in Chen Shouzhe's movies is a huge opportunity for a newcomer to rise to fame overnight.

Of course, Chen Shouzhe wasn't stupid. There were actually quite a few people who reported him, but very few of them could actually act in the movie. If everyone acted, his movies would be full of amateurs.

The three parties needed to discuss further, so Chen Shouzhe invited them to dinner. The three said they were all busy, but Chen Shouzhe still saw them off at the elevator before returning to his office.

"Right now, we're prioritizing publicity for 'Let the Bullets Fly.' If we don't cooperate with the publicity, Jiang Wen will jump up and bite us," Chen Shou said with a wry smile.

“That’s true. After all, he invested so much and even reshot the film. If he loses money, he’ll definitely bite someone.” Zhong Lifan smiled.

The pressure to recoup costs is too great. That's why An Le went so far as to steal and manipulate box office figures and fleece investors in the stock market. Jiang Wen is also under considerable pressure to recoup his costs. Chen Shou dared not provoke him and could only obediently cooperate with him in the promotion.

(End of this chapter)