Huayu: This producer has no bottom line.

Chapter 150 Let you go and exchange

On June 14th, Pusi Capital,

When Ren Pingsheng pushed the door open and came in, Wang Sicong was looking at the World Cup schedule.

"You're way too punctual," Wang Sicong gestured for him to sit down, "So, what's the matter that's so formal, inviting me to dinner and bringing a document?"

Ren Pingsheng placed a document on the table.

"Let me start with the bad news," Ren Pingsheng said bluntly, "we won't be able to break 100 million."

Wang Sicong raised an eyebrow, picked up the document, and glanced at it.

"I know about the World Cup," he put down the paper. "I'm not blind. Cinemas across the country are like they're haunted. I went to Wanda Plaza in Jinyuan last weekend and there were less than twenty people in the 9 p.m. showing."

"So the final figure will likely be between 60 and 70 million. Taking a conservative estimate of 60 million, your 10% would get you 216 million."

Ten thousand."

Upon hearing this, Wang Sicong chuckled, "You only made a pittance?"

"Theatrical box office revenue is only part of it," Ren Pingsheng didn't disappoint him for long. "The exclusive online broadcasting rights were sold for 800 million, and there's still a follow-up development deal. All in all, your 200 million investment will probably yield a return of 320 to 350 million."

Wang Sicong didn't say anything and continued flipping through the pages.

Ren Pingsheng didn't urge him; he was waiting for Wang Sicong to flip to the back, where there were revenue estimates for other films released around the same time.

"Are all these films losing money?"

"Yes, 'Lost in Thailand' is the only one in this batch that has already broken even."

This is what Ren Pingsheng wanted him to understand.

The same black swan event has left others either losing money or worried about whether they will lose money.

Ironically, he made over a million more out of his initial 200 million.

Wang Sicong doesn't lack the million-plus yuan, but he needs a report card that he can present to his father.

"Fine, I guess you didn't screw me over."

He tossed the documents onto the table, glanced at Ren Pingsheng, and said, "But you certainly didn't come here today just to give me a report, did you?"

Ren Pingsheng smiled.

"It's easier for smart people to talk to each other," he said, pulling another item from his bag—a book.

Ghost Blows Out the Light.

When Wang Sicong saw the book title, his pupils contracted slightly.

"You want to film this?"

"It's already in preparation, with a total budget of 300 million, a production cost of 250 million, a publicity cost of 50 million, a search engine marketing cost of 75 million (2.5%), a video marketing cost of over 100 million (35%), and for the remaining 40%, I need to find a strong partner."

Three hundred million.

Wang Sicong sat up straight. No matter how ignorant he was, he knew what three hundred million meant.

This year's box office champion, Avatar, only had a total investment of $2.3 million, which is just over a billion yuan, but it's a global market.

"Three hundred million yuan to make a domestic film? Are you confident you can recoup your investment?"

"Released during the summer of 2014, with a four-year increase in screen revenue, 1.5 billion is not a pipe dream."

"1.5 billion?" Wang Sicong exclaimed as if he'd heard a joke. "The total box office for the whole country this year is only projected to reach a little over 10 billion. You're going to take a tenth of that with just one movie?"

"I'm talking about 2014, not now. Based on the production company's 36% share, it would take 800 million to break even, and anything over 800 million would be a profit."

Wang Sicong didn't say anything, but his hand was already unconsciously rubbing against the book cover.

"How much do you want me to bet?"

"That depends on whether you're willing to involve Wanda Pictures," Ren Pingsheng didn't answer directly.

Wanda Pictures was registered and established last July, and a year has passed since then, and it hasn't even had a single project.

The old man spent so much money building plazas and cinemas in Wanda Plaza, but the content is completely blank.

Hundreds of cinemas are showing other people's movies every day.

Wang Sicong understood the old man's ambition; he couldn't remain just a screening company forever, he had to move upstream.

But Wanda Pictures hasn't even assembled a full production team yet, so how can it move up the value chain?

"You want Wanda to invest in this project," Wang Sicong stated bluntly.

"right."

His brows furrowed. "I've told you before, I don't ask my family for favors on behalf of others."

Ren Pingsheng shook his head. "I'm asking you to go and change."

"Mr. Wang, think about it. Wanda Pictures has been established for a year, and it hasn't taken on a single project. Why is that? Are they waiting for a worthwhile project? What kind of project would Wanda be willing to invest in? Would 300 million yuan for 'Ghost Blows Out the Light' be enough?"

"Think again about what Wanda's strongest resource is? It's the number one cinema chain in all of Asia."

"What does the 300 million yuan 'Ghost Blows Out the Light' series need most? It needs theater distribution channels."

"If Wanda comes in as an investor, then this movie is essentially self-funded and self-distributed, taking a cut from filming to release."

Wang Sicong's breathing slowed down by half a beat.

He wasn't unaware of this logic.

Wanda owns cinemas, but it can only passively screen other people's content, and its profits come entirely from service fees and popcorn sales.

But what if Wanda invested in a movie itself?

They control the film scheduling rights and the distribution profits, operating from the end-user to the upstream, creating an integrated industry chain.

This is the path Wanda Pictures should truly take.

"You want Wanda to participate as an investor, and then incidentally handle the issuance?"

"It's not just incidental," Ren Pingsheng said bluntly. "If Wanda can run the entire process of a top-tier commercial blockbuster with an investment of 300 million yuan smoothly, from project initiation to production to distribution to release, then it will be the strongest private film company in China, bar none."

The office was silent for a full ten seconds.

If Wanda is brought into the "Ghost Blows Out the Light" franchise in advance, once the Wuzhou distribution is finalized, the film will be the eldest son of their system, and resources will be unstoppable.

The success of series like Northern Love, Detective Chinatown, and Sheep Without a Shepherd is precisely due to the support and protection provided by these two companies.

Wang Sicong read the book "Ghost Blows Out the Light" over and over again, and finally slammed the book on the table.

"Do the people at Wanda Pictures even listen to what you're saying?"

That's why I came to find you.

Wang Sicong raised his head.

"I don't know anyone from Wanda," Ren Pingsheng said frankly. "If this project succeeds, it will be strategic for Wanda, and you are the only person who can present a strategic project to President Wang."

"Stop trying to sweet-talk me," Wang Sicong interrupted him, but the curve of his lips betrayed his emotions. "You just want me to talk to the old man."

"I wanted you to invest first under the name of Pusi," Ren Pingsheng corrected him, "Your investment is like 'Ghost Blows Out the Light'."

"Shouldn't shareholders bring in resources to help their invested projects secure better issuance terms?"

The same logic as last time.

Last time, it was the 10% share of "Lost in Thailand" that allowed him to legitimately mobilize Wanda's lobby resources.

This time, investing in "Ghost Blows Out the Light" gave him a legitimate reason to bring Wanda Pictures into the picture.

Wang Sicong had seen through Ren Pingsheng; he would never embarrass you, and every step he laid out for you would be very dignified.

Moreover, after each step you take, you find yourself being carried forward a considerable distance by him.

"How much will Pusi offer?"

"It depends on your appetite. Of the 40% vacancy, I've reserved 20% for you, which is 6000 million."

"What about the remaining 20%?"

"Qiyi 5% to 10%, China Film 10% to 15%, depending on subsequent negotiations."

Wang Sicong's eyebrows twitched when he heard "China Film".

The involvement of China Film Group signifies policy support, coupled with Wanda's distribution and cinema chains, Sohu's online resources, and iQiyi's platform...

This plate is incredibly stable.

"6000 million..." Wang Sicong read the number aloud. It was a lot for him, not a number he could just casually count.

He needs to go back and do the math, and more importantly, he needs to figure out how to bring it up with the old man.

"I'll think about it," Wang Sicong stood up, "Give me a week."

"Okay, no rush."

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