Chapter 600: Baiting and Arrival

Over the past two days, funds have been continuously hitting the company's project account. As the director watches the money steadily increase, the smile on his face simply cannot be contained.

The actual returns are far greater than he had imagined. After all the revenue splits were wired over, the total income has already surpassed 1.3 million, and it is still increasing in fits and starts.

1.5 million is not out of reach. According to the contract they signed with the theater chains, the production company now receives 70% of the film's screening revenue, while the cinemas only get 30%.

For the theater chains, this split still allows them to make a profit, just not a very large one.

To prevent the theaters from pulling the film from their screens once they reach the stage where they would only be taking the smaller share, the company includes a binding requirement in the agreements they sign.

In reality, they only get to take the lion's share for one week. Starting from the second week, the percentage drops sharply and continues to be adjusted according to a set ratio.

In the end, the share the production company receives from the box office will be higher than what the theater chain can take.

Once it reaches this point, if the theater chain is still willing to continue screening the film, the production company will continue to earn box office profits from it, but the ratio will no longer change.

If they are unwilling to continue screening it, then the film is completely pulled from that cinema.

The film is the private property of the production company; once it is pulled, it is not permitted to be screened again unless a new agreement for a re-release is signed.

This point differs from the buyout system. Under a buyout system, once a cinema buys the film reels, they can screen them whenever they want, which is actually a huge infringement on the interests of the production company.

But in the past, under those circumstances, a ticket cost five cents, and it was primarily film reels; not every cinema operator could recoup their costs after spending hundreds of dollars on a reel.

So this could be considered a kind of... benefit under special circumstances, but now, it has been terminated—at least, it has been terminated at Wanli Film Industry.

The director is happily calculating these figures. On his desk lies a newspaper he has already read, which is also the newspaper with the largest distribution range and volume in the federal film industry: *The Film News*.

*The Film News* is a semi-monthly publication, but this issue clearly does not belong to the first or second half of the month; it is a special supplement.

In exchange for the 20,000 dollars sponsored by Wanli Film Industry, the newspaper office issued a special supplement directly, and the front-page headline was indeed worth the extra printing—

"The First Film in Federal History to Gross Over One Million, and the Story Behind the Scenes."

This report was written by someone paid by the director under Lanse's instruction. Most of what is described inside is fact, with only a small portion possibly slightly exaggerated.

In this report, it is claimed that *The Mystery of Angel Lake* is deeply loved by film fans due to its high quality and the new film genre it pioneered, creating a box office miracle.

At the same time, this film adopted a box office revenue-sharing system. This system, which had never been favored by people, achieved great success here at Wanli Film Industry, and it was a massive success.

In the report, the director admits that after deducting various expenses, their actual profit is over one million!

This is absolutely an astonishing number, with a published return on investment of over 450%.

At this time, film investments are generally between 200,000 and 300,000. A 450% return on investment has already made many people's eyes turn red.

In the Q&A with the reporter, the director believes that the high quality of the film is part of the reason for the gratifying income, but another part of the reason—and the most important part—is that the film adopted the revenue-sharing system.

He cited the example from the film exhibition, where some cinemas were very optimistic about their film, even offering single-cinema prices of 900 and 1,000 dollars.

The lowest-offering cinema still put up a price of 400 dollars.

Of course, those cinemas that gave low prices were all in relatively remote places or cities with few moviegoers; they couldn't afford to pay too much, otherwise, they might face losses.

If it had been the buyout method of the past, they might only have been able to obtain 700,000 to 800,000 in revenue through these buyouts; that would be the best-case scenario.

After deducting cost expenditures, the return on investment might only be around 200%. This was only because the quality was high and people were willing to give it a try.

But they changed the distribution strategy, making it a win-win for the cinemas and the production company. The theater chain only needs to bear the electricity costs, staff wages, and venue wear and tear—costs that are almost negligible—to obtain a huge advantage in the box office split.

And the production company will not be constrained by the low price of a one-time buyout. As long as they believe their film is good enough, the more popular the film is, the more income they will have.

This is a win-win.

He elaborated on these things here, giving people a clear understanding of box office revenue sharing.

With the sale of the supplement, he believes that the entire film circle will soon be shaken.

After ten o'clock, he began to review some recent film project proposals. He hadn't reviewed many when the telephone rang.

The moment he picked up the phone, a hearty laugh came from the other end of the receiver, which made the director lean back in his chair, becoming very relaxed.

He knows this person, a director and producer; such roles are almost everywhere now.

Especially for those production companies that have gradually developed from small-investment films, the director holds multiple positions.

They might be the producer, the screenwriter, the cinematographer, or even possibly the actor as well.

The guy on the other end has filmed several fairly successful movies and has also achieved some results. In this booming industry, he can be considered a minor celebrity.

After a simple exchange of pleasantries, the other party asked a question, "... I read today's newspaper, which gave me great inspiration and also gave me a question."

"How do you ensure that the cinemas honestly follow the contract you signed and share the profits with you?"

"Others have tried this before, but they encountered many problems."

Refusing to pay the box office share, skimming off the top, tampering with real box office data, and even various forms of private copying.

It can be said that basically, it is very difficult to make money with this model.

The director laughed twice and said, "We have our own distribution channels, which can ensure that no one cheats us on these issues."

"And... the boss above said that we will strengthen the entire channel supervision system later to ensure that every single movie ticket for every screening will not have any problems."

"We actually didn't send this film to too many cinemas. As people get to know us and more cinemas are built, I believe our income will only increase."

"The first film with a million in profit is just a starting point for us and for the entire industry."

"Two million, three million, five million, or even ten million—that is our goal for the future!"

"I firmly believe we can achieve these; it won't be too far from us!"

Listening to the director's impassioned speech, the producer on the other end of the receiver also felt his breathing become slightly heavier.

Recently, they had just completed a film shooting plan and intended to release it in the autumn.

The company discussed it internally, and with the increase in movie ticket prices, they could appropriately raise the average buyout price to over 800 dollars.

In this way, as long as they could complete sales to 500 cinemas, they would have a gross profit of 250,000.

After some simple operations, their net profit might be around 200,000.

With a total investment of 150,000, a 100% net profit is already considered far ahead among peers.

But this was just their prediction. If they couldn't sell to 500 cinemas, or if the average price couldn't reach 800, then their net profit wouldn't be that much.

Originally, he didn't have many good ideas about this situation; after all, everyone had been doing it this way all along, until he saw the supplement in today's *Film News*.

He suddenly realized that they actually had another opportunity.

If he was just wanting to understand and test the waters before the call, then the director had convinced him with this call; he was moved.

"If... I mean, if we let the film be screened in major cinemas through your channels, what do we need to pay?"

Hearing the other party say this, the director's face was already full of smiles, but his tone did not appear that enthusiastic.

He used a very calm and composed tone, without any emotional fluctuations, and said, "We need to obtain revenue from the box office."

"The head office has already talked to me about it."

"For a total box office under one million, we charge a 9% fee."

"Over one million and under two million, it is 8%."

"For every one million increase in box office, it decreases by 1%, with a cap at five million, which is 5%."

"If your box office can reach ten million, then the split is 4.5%; twenty million is 4%. If you have confidence in your film, I think you can give it a try."

The producer recorded these detailed figures with a pen while listening. He was just a producer; there were investors and shareholders behind him, and he still had to discuss it with them.

But he had a premonition that this model would soon become popular.

"I personally am very willing to choose this distribution model, but I have to discuss it with them. I'll give you a call when there's a result."

He paused, "When are you coming over? Let's chat privately. We have two films that need casting recently; you can help us with some references."

This was a typical hint, and the director did not refuse, "I'll call you when I have time."

After the two chatted a few more times about other things in the film circle, they hung up the phone in a hurry.

Not long after the phone was hung up, it rang again. A vice president of a film company called over, asking the director about how they guarantee income with their box office split.

Until three or four o'clock in the afternoon, almost all the calls were discussing these issues, all wanting to obtain the assistance of this distribution method.

After all, they were too jealous. Who could refuse to make money, to make big money?

Capitalists have never been philanthropists. If letting people eat dirt could make them big money, tomorrow 95% of the people in the world would be sitting at the dinner table eating dirt.

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After a clearly more profitable plan appeared, they couldn't refuse it.

Especially when they couldn't handle it themselves, they could only rely on Wanli Film Industry.

The director intends to talk to Lanse to see if they should spin off a company specifically to manage this matter.

At the same time, Qiaodeng and these people have already arrived in New Jincheng.

The Angel Lake is a large-scale criminal group. They have their own logo, just like the people of the Lanse family have a red armband on their left sleeve.

The characteristic of the Angel Lake is a skull with wings. In the eyes of the skull, there is a cluster of black flames, and there is a blue bright spot in each flame.

Death, angels, souls, and evil flames—such a pattern has a huge impact on the people of this era!

They didn't rush to find trouble with that so-called Wanli Film Industry, but instead found a small restaurant to sit down and fill their stomachs.

"The food here is full of a country-style fishy smell. I really can't stand this!" Qiaodeng ate some things casually and didn't continue to enjoy the food.

Actually, the food itself was no different from the food in Xinjin City, but he just felt that the food here didn't taste as good as the food in Xinjin City.

He could also find many problems, such as not fresh enough, not tender enough, not... he had many reasons.

As long as his prejudice still existed, he had endless reasons.

The others were not very picky. As long as it was meat and the taste was okay, they didn't care.

Qiaodeng walked to the restaurant owner's side, chewing on a large cigar, "How much?"

A total of four tables, more than twenty people. The owner calculated simply, "Sixty-seven dollars, sir."

Qiaodeng took out a leather wallet from his pocket, counted out ten more dollars, and placed it on the counter.

The owner looked at him somewhat confused. He bit his cigar and smiled, "I want to inquire about some things. You see, we are all from out of town."

The owner glanced at those behind him who clearly didn't look like locals, nodded slightly, and then put the money on the counter into the money box, "No problem, as long as it's something I know."

Who wouldn't want to do a good deed of getting ten dollars for free?

Qiaodeng had a smile on his face. These years of gang life have taught him that he should be careful when he needs to be careful.

"Do you know Wanli Film Industry?", he asked.

The owner nodded, "I know. I really like watching *The Mystery of Angel Lake* that they filmed, and it's also very realistic. Everyone says that there is indeed an oil drum called Jason at the bottom of Angel Lake."

The smile on his face made Qiaodeng a little confused. The owner looked at the confusion on his face, and only then realized that this hellish joke was too obscure for out-of-towners.

He hurriedly explained, "This is a joke that only locals know. Sorry, I forgot you are from out of town."

"Anyway... I know this company."

Qiaodeng nodded, "Is it an industry of the local gang?"

Thinking of the little finger cut off from his old friend Mr. Selei, this is clearly a gang's method and means.

To say that connecting Wanli Film Industry with the Lanse family is definitely not an easy thing.

Actually, he could completely infer that the two companies might have the same boss by inferring Wanli Film Industry and Wanli Labor Agency, but in the Federation, it is difficult to look at problems this way without exact evidence.

Maybe they have no relationship between them?

So the owner shook his head, "I don't know much about this company. I've only watched their movies."

Qiaodeng didn't continue to ask this question, but changed to another question, "How many gangs with strong strength do you have locally now?"

"I heard that the five major families are finished?"

This is a topic the owner likes. He nodded, "Yes, the four major families among the five major families are almost finished. Only the Pasleto family still exists."

Qiaodeng nodded again, "Then who is the strongest in the city now?"

The owner looked up and down at the person in front of him chewing a cigar who didn't look so "honest".

He pondered for a while, "It should be the Lanse family. They are the strongest gang here, without one."

"Besides them, there are actually some small gangs, but those gangs only control a certain street area and don't have much influence."

"Do you want to find trouble with them?"

"Or find them to cooperate?"

"If it's the former, I advise you to be careful. Provoking the Lanse family will become a big trouble for you."

Qiaodeng said "Aha", with an expression of not caring, "I really haven't met a guy who can become a big trouble for me. I hope this gang can give me some fun!"

"But I still want to thank you for your information. You helped me a lot."

At this time, he had basically locked onto the two organizations of Wanli Film Industry and the Lanse family.

The former is the film company that injured his good brother, and the latter is very likely the one who went to Xinjin City this time.

Qiaodeng is actually not very interested in gangs in such remote places, even if people say that New Jincheng is the engine of the federal economy.

But for people who have lived in Jinzhou for decades, for half a lifetime, New Jincheng is still an emerging city and cannot be considered anything remarkable.

Whether it is or not, you will know when you find the door.

Soon the owner watched these people leave and also saw the skull pattern with wings on their vehicles, and then dialed his uncle's phone.

His uncle lives in the Imperial District. The first generation of residents in the Imperial District were actually locals, but later the Imperial people living there became more and more, gradually squeezing the living space of the locals, and finally making that piece of land a place where Imperial people and immigrants gathered.

However, his uncle didn't move out. He had lived there for decades and was long used to it.

Last time he also heard that his uncle is now working for Mr. Lanse. If he finds out any information, tell Mr. Bodun.

If this information is valuable, then he can get rewards of varying amounts.

It is said that there are at least five or ten dollars, and the highest, no cap!

The phone was connected quickly, "Someone was eating in my shop just now. One of them asked me about the situation of Wanli Film Industry and the Lanse family. I didn't say anything."

"I think this matter is a bit strange. They look like out-of-towners, and there is another skull with wings printed on the car. They might be here to find trouble."

"Do you think this news is useful to you?"

The excited voice of the old man came from the receiver, "It's fucking useful!"

(End of chapter) ===== CHAPTER 601 =====