How is the money divided between the movie theater and the producer?

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First of all,

should be clear that the number discussed in the box office split is to put aside movie service fees. For example, a movie shows that the cumulative box office is "1.05 billion yuan (including service fees)", and the split box office is "1 billion yuan". The difference of 50 million is the e-commerce service fee, and the box office split is not including service On the basis of this 1 billion fee.

Take a movie with a box office of 1 billion as an example. First, you need to pay a special business tax of 3.3% and a special fund of 5% for the development of the national film industry to the state. The remaining 91.7% is the divisible box office (net box office). ), which means that a movie with a box office of 1 billion can actually have a total box office of 917 million.

How is the money divided between the movie theater and the producer? - Lujuba

Office structure and main functions of the National Film Industry Development Special Fund Management Committee

Of the 917 million divisible box office, in the usual sense, theaters and theaters can share 57%, that is, 9.17 billion × 57% = 52.269 100 million box office, if theaters and movie theaters agree to get 50% for theaters and 7% for theaters, then these 1 billion box office movies, theaters and theaters can be divided into 458.5 million and 64.19 million respectively. However, it has also been mentioned in the previous science popularization of the eye that many theaters have taken the initiative to lower the proportion of theaters’ accounts in order to attract high-quality theaters to join, and only take 1-2% of the share to "meaning", and it may even be Paste the money back to the theater.

In the split-book box office, China Film Digital will also collect a distribution agency fee ranging from 0-3% (if the film is charged at 3% within 50 million, the box office will be charged 2% within 50-300 million, and the box office will be at 300-600 million. Charge 1%, no charge if the box office is over 600 million). The remaining 40-43% of the

box office can be shared by the film producer and the publicity distributor. Generally speaking, the film distributor will charge about 10% of the box office as a distribution agency fee (usually 5-15%). After deducting this part of the publicity fee, the film party can get 30-33% of the money, that is, a film with a box office of 1 billion, and the film party’s gross at the box office is about 300 million.

This is why people in the industry often used one-third of the box office figure to calculate the amount of money a film party received, because in the past, if a movie wanted to pay back, the box office had to be at least three times the production cost. However, with the increase in the number of embedded advertisements in movies and the sale of streaming media copyrights and overseas copyrights, many movies may recover their investment at box office twice or even less than the cost.

Usually, there are often more than one investor in a film, especially when the blockbuster film may be produced by multiple or even a dozen companies, so even the main investor can only be allocated a small part of the film’s account, and the final one is obtained. Money is not as high as outsiders guessed.

And in Hollywood, the ratio of the production and theaters is not as fixed as in China. Different film companies have different degrees of discourse power, and the specific agreements reached with theaters are also different. Generally speaking, a step-by-step accounting model is adopted between film companies and theaters. At different times such as the first week, the second week, and the third week of blockbuster films, the ratio of the film companies and theaters to the accounts is different. In the first week of the film’s release, the film owner usually receives a larger share of the income. Some blockbuster film owners often share a share of as high as 80% to ensure that they can recover their costs. In North America, the revenue from the film owners of the hottest films with relatively high box office It is often higher than the theater line, and the film with a poor box office will give priority to the revenue of the theater line and give it more tilt.

How is the money divided between the movie theater and the producer? - Lujuba

Distributors compete with theaters for profits (Comic: Yu Xiaoxiang) In North America, the revenue of the movie producers is higher than the theaters for the higher the box office hits, and the theaters’ revenue should be given priority to the movies with poor box office. . Generally speaking, in the domestic box office of an American movie, the film company's share is probably 40-55%, higher than the domestic 40-43%. So in contrast, the game between domestic cinema chains and producers and distributors is particularly common. Film producers and distributors have always been dissatisfied with the 40-43% box office share, and believe that it should be increased to 50% to ensure that the works they produce can get a little more profit guarantee; similarly, theaters and The theaters are also trying to find a higher box office distribution above 52.269% due to the increasingly difficult business in recent years. Because of this, the game between theaters and filmmakers on the box office split has never stopped. Before 1994, China Film Group bought out films at a fixed price and distributed copies to distribution units in various provinces.70% of the film’s box office; since 1994, studios could directly distribute films to domestic distribution and screening units and abroad, and implement revenue sharing, breaking the monopoly of China Film and provincial distribution companies; and in 1995, domestic The film "Red Cherry" has established a box office splitting rule, that is, for every 100 yuan of the box office, a national film development fund of 5 yuan and a business tax of 3.3 yuan shall be paid, and the remaining part shall be 35% and 65% by both the producer and the theater. With the reform of the "theatre system" in 2002, the box office splitting model has also been clarified and clear.

How is the money divided between the movie theater and the producer? - Lujuba

"Red Cherry" from the box office distribution rules established. In addition to the theater is fighting for more profit space for themselves, the film party has not stopped their attempts. In 2003, Zhang Yimou’s "Hero" created the box office myth of domestic movies. From this, the producer Zhang Weiping also gained the right to speak that the producer did not have in the past, and asked the producer to increase the share of accounts to 40%. Over the years, I have been "sit down and talk" with the theaters, and finally increased the proportion of film accounts to 41% in "Ambush on Ten Sides" in 2004. In 2006, the number of "Full City with Golden Armor" rose to Increased to 42%—Finally, at the end of 2009, the State Administration of Radio, Film and Television proposed that the producer’s share of accounts should not be less than 43%, and Zhang Weiping, who succeeded in the struggle this time, was also called the “historical person” at the time.

"Full City with Golden Armor" was released in 2011, "Jinling Thirteen Hairpins", Zhang Weiping once again "chugged" to the theaters to increase the share of the producer from 43% to 45%. Joint opposition from mainstream theaters. At that time, the State Administration of Radio, Film and Television further stipulated that, in principle, the proportion of movie theaters for the first round of film screenings should not exceed 50%. However, most domestic films are still based on the ratio of 43:57. Zhang Weiping did not calculate the 43% figure in 2011. Improve again. But the game did not stop. In 2012, in November before the release of many domestic Chinese New Year blockbusters such as "1942", "The Great Master", and "The Zodiac", the five major film distribution companies of China Film, Huayi, Bona, SMI, and Guangguang joined forces to the whole country The theater line put forward the request of "increasing the box office share ratio" and tried to increase the share ratio from 43% to 45%. Because this time it was the theater line that proposed to increase its share ratio instead of the film side, which was called the "Avengers" by the media. On the one hand, the theater business is not good. The operating costs of self-investment, renovation of the theater, rent and labor have soared. The difficult situation of survival made them try to increase their revenue share; on the other hand, the proportion of domestic films at the box office dropped sharply. , The market is sluggish, and the producers are taking huge investment risks, and it is urgent to mention the box office revenue share. With their own difficulties and insistence on their own interests, the two sides have launched more than ten days of debate and negotiation. The final result There has also been no substantial progress. The split-to-account ratio is still 43:57 and continues to this day. In the past few years, controversy over the proportion of domestic film producers’ box office share has continued to sound. Both film producers and theaters want to improve their own interests in the "difficult" market conditions, and want to change the existing box office accounting rules. At present, it is still a difficult task that takes a long time and fierce game, and it is no wonder that after iQiyi proposed a new share ratio, it caused a big response in the industry.

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