This director loves making friends.

Chapter 153 Hollywood and the Oscars

There are generally three ways for foreign films to be released in North America.

One approach is to directly buy out the North American rights to Hollywood film studios. For example, Harvey Weinstein of Miramax preferred to buy out the rights to films outside of North America.

The second option is minimum guarantee distribution. The film is sold to a Hollywood film company at a guaranteed price, and then a trigger condition is set. Once the condition is met, the film company receives an additional share of the profits.

Third, find a Hollywood film company with distribution rights to cooperate on distribution, and give the distribution company a certain percentage of the revenue according to the negotiated terms.

For most non-Hollywood films, the tendency is to collaborate with Hollywood film studios for guaranteed distribution.

Although the conditions for a minimum guarantee release may not be the best, and the cost of a minimum guarantee buyout is much lower than that of a direct buyout, who wouldn't want to gamble on their film's box office performance to trigger the profit-sharing conditions?

In theory, if Hollywood film companies don't have ulterior motives, buying out films through a minimum guarantee is the most cost-effective approach.

Because the buyout fee for guaranteed distribution is lower, and most films outside Hollywood rarely meet the box office requirements to trigger revenue sharing, this seems to be most advantageous for Hollywood film companies.

Of course, this is only theoretically, or logically.

However, in reality, most Hollywood film studios prefer to buy out the rights in a one-time transaction.

There are many reasons for this, and it is precisely because of these reasons that, although a one-time buyout may seem to cost more money, in practice, it is actually the most profitable for Hollywood film companies.

In the end, the actual expenses are sometimes less than the cost of the guaranteed issuance.

Therefore, it is important to encounter a "legitimate" Hollywood film company. If you encounter an "illegitimate" one, you may receive an advance payment and then there may be no further developments.

"Old Boys" is also being released with a minimum guarantee in collaboration with Sony Classics.

If you want to maximize profits, the best option is to use the third method with Sony Classics: the agency distribution model, where you only need to pay the distribution fee.

However, in addition to the distribution fee, there are also expenses for printing and distribution, GG, multi-channel promotion and distribution, and theater connections, which are easy to get ripped off on.

Even the most "reputable" Hollywood film companies will tamper with this.

As a result, a cooperative model emerged where fixed issuance fees were no longer paid, but instead a percentage was given to the issuing company.

The expected box office revenue varies for different films, so the commission rate for distribution companies will definitely be different. However, excluding other necessary expenses, the commission rate for distribution companies is generally between 10% and 20%.

Most are between 12% and 16%.

Of course, these are expenditures from that era, that is, the 1990s. After the internet became more widespread, the costs changed.

If it's a guaranteed release, the issuing company's commission will be higher because of the guaranteed fee, usually 5 to 10 percentage points higher than in regular cooperation.

It seems that it's more profitable to distribute films through Hollywood studios.

However, if it's a distribution agency, unless it's a "blockbuster" or a commercially successful film with obvious box office potential, the Hollywood company responsible for distribution certainly won't be as attentive or focused.

Furthermore, they may encounter pitfalls in their marketing and promotion efforts.

On the contrary, guaranteed distribution not only benefits the distribution company in terms of revenue sharing after the revenue sharing conditions are met, but more importantly, the guarantee means that the distribution company needs to break even, which requires investment in marketing and promotion.

While "sunk cost" isn't the most accurate term, that's roughly the idea.

Generally speaking, because a minimum guarantee fee is paid, the distribution company will take it seriously and will be less likely to cut corners. If the box office doesn't even recover the minimum guarantee fee, it's a failure in terms of performance.

Qin Keqing was well aware that with his current connections in Hollywood—well, not really connections yet—he would likely be ripped off if he didn't adopt the minimum guarantee distribution model with Sony Classics.

There are many "legitimate" companies in Hollywood, but including the Big Six studios, there isn't one that doesn't cheat people. You can't expect others to consciously follow the rules.

Self-interest is the greatest expression of sincerity.

After finalizing the guaranteed distribution deal for "Old Boys" with Sony Classics, that evening, the film festival chairman, Moritz, invited Qin Keqing to a private gathering attended by members of parliament, Berlin municipal officials, and directors of various associations.

According to Moritz, this gathering is held every year after the Berlin Film Festival. Although the focus is still on things related to the Berlin Film Festival, it is more about "internal" matters.

Qin Keqing was a little confused. Was it okay for her to attend this kind of "internal" gathering in Germany?

When Moritz introduced Qin Keqing to others, he didn't say, "This is Qin Keqing, the director who won the Golden Bear this year." Instead, he said, "This is the child of a good friend of mine, Qin Keqing, one of my most valued junior colleagues."

Moritz's attitude gave Qin Keqing a false impression.

"Is Moritz grooming me to be his successor?"

Peng Jiesi is graduating.

She wants to work in Hong Kong after graduation.

It seems like a good thing, but for Qin Keqing, it might not be a good thing.

Qin Keqing was still thinking about how to handle this matter when today's gathering gave him some inspiration.

"uncle."

Privately, Moritz always insisted on addressing him that way.

"Uncle, I have a good friend who is British. She's studying at university in England and is about to graduate. She's worked part-time at the Berlin Film Festival and the Cannes Film Festival. I was thinking, could I—"

"A young girl?"

Moritz turned his head, a knowing smile on his face.

"Yes."

Qin Keqing did not deny it, but after thinking about it, she decided it would be better to explain Peng Jiesi's family background to Moritz.

"She's the daughter of the Governor of Hong Kong, and she has some feelings for me. I'm currently developing my career in Hong Kong."

"Haha, I understand, I understand. You're absolutely right. Letting her stay and work in Europe is the best option. Don't worry, I'm here. I won't let her be bullied in Berlin."

Moritz laughed heartily as he spoke.

Although Qin Keqing didn't know what Moritz "understood," arranging for Peng Jiesi to stay in Berlin was a respectable arrangement.

I've got another good job.

The key is that with Moritz around, maybe in a few years, Peng Jiesi will also become a high-ranking official at the Berlin Film Festival.

The following day, the nominations for the 66th Academy Awards were announced, and *The Man* won Best Original Screenplay and Best Cinematography.

Three nominations for Best Art Direction.