weddingnovel Chapter 27 Revenue Sharing, Next Step
Chapter 27 Revenue Sharing, Next Step
"What are you thinking? The movie has just finished its run. How can you expect to get paid so quickly?" Tang Jia said irritably.
"How long will that take?"
Tang Long hadn't really paid attention to this aspect before.
"It will take more than a month."
So fast?
It takes at least six months for mainland cinemas to settle box office revenue, and in some cases it can even take a year.
Seeing Tang Long's surprised expression, Cheng Xiaodong assumed he thought this was taking too long and explained:
"We are not large companies in the industry like New City, Yong Sheng, or Si Yuan, so we cannot settle accounts every week."
The final settlement for the entire film can only be carried out after the film has finished its theatrical run, verifying all cinema box office revenue, print costs, and miscellaneous marketing expenses.
The final settlement and payment are usually completed within one to two months.
Is there a weekly settlement?
Hong Kong truly lives up to its reputation as a city that values efficiency.
"How much money will we get?"
"Of the HK$13.6 million box office revenue, a 10% entertainment tax, commonly known in the industry, needs to be deducted."
The revenue is deducted directly from the cinema chain and handed over to the Hong Kong government's Film and Television Services Department without any reduction or exemption. Independent production teams and large companies are treated the same.
This is also a fixed cost for the industry.
The tax rate is 10%, which is slightly higher than in mainland China.
Seeing that Tang Long was listening attentively, Tang Jia continued:
"After deducting 10% entertainment tax, the remaining HK$1224 million will be used for profit sharing."
We split the profits 50/50 with the cinemas, and we ended up with 612 million.
However, this 612 million will need to be reduced by 5% for distribution fees from Metropolitan Films, amounting to 612,000.
Advertising expenses are included in the total cost and do not need to be deducted.
Only fifteen copies of "The Blade" were made, each costing HK$2,000, for a total copying cost of HK$30,000.
In the end, we received 547.8 million, barely breaking even.
After working hard for four or five months, he only earned 478,000 yuan in the end, of which 60% belonged to Shao Daheng, and he only had less than 200,000 yuan.
However, the fact that they were able to break even on the box office revenue in Hong Kong was already a pleasant surprise for them.
They initially expected "The Blade" to be a success if it grossed ten million Hong Kong dollars in Hong Kong.
We were prepared for losses and were thinking of making up for them through external revenue.
The situation is much better now; we break even locally, and any external gains are pure profit.
"Uncle, have the distribution agreements for other regions been finalized?"
Tang Jia was clearly satisfied with the results of "The Blade," responding with a smile:
"We don't need to worry about distribution outside of mainland China; Shaw Brothers Cinemas is the largest cinema distributor in Southeast Asia."
Shao Daheng also has a cinema chain company in Taiwan, so we can talk to Shao Daheng directly.
The only question now is whether we should buy the copyright outright or distribute it through a revenue-sharing model.
"Buy it outright," Tang Long and Cheng Xiaodong said in unison.
"It seems everyone agrees, and I also tend to buy out the copyright directly."
Revenue-sharing issuance not only has high issuance costs, but some expenses are also opaque; you might end up losing money.
Tang Long pondered for a moment, then looked up at Tang Jia:
"Uncle, when you go to talk to Shao Daheng about buying out the copyright, could you please put in a good word for Liu Jialing?"
Her contract with TVB is about to expire, and she doesn't want to renew it. Fong Yi-wah might target her.
Tang Jia was somewhat surprised; he had thought that the two had lost contact since he returned from the mainland.
I never imagined that my nephew and Liu Jialing had such a deep relationship.
"Are you serious? You're planning to be with her?"
"No, we have a good relationship, and I want to help her now that she's in trouble."
But I can't speak to Shao Daheng and Fang Yihua, so I'd like to ask you, Uncle, to intervene."
Tang Jia naturally knew that the relationship between Tang Long and Liu Jialing was not that simple, otherwise they wouldn't have come to him for help.
"I can help you put this matter in front of Shao Daheng. Anyway, after 'The Blade,' I don't have much of a relationship with him anymore."
But I can't guarantee they'll agree; after all, there are rules to running a TV station.
"Uncle, I understand. It's already a lot of trouble for you to step forward. As for whether Shao Daheng agrees or not, that depends on Liu Jialing's luck."
"There's nothing to worry about between us, but I hope you remember this."
If you really think Liu Jialing is a good person, then stay with her and don't mess around outside.
Tang Long reluctantly agreed to Tang Jia's instructions.
He knew very well that Tang Jia was a very traditional and devoted person.
In the original timeline, Tang Jia and his wife Xue Ni married in 1969 and spent 56 years of marriage together, supporting each other through thick and thin.
Suet Nei was a well-known Cantonese actress and martial arts actress in the 1960s. After getting married, she chose to retire from acting, but occasionally came out to act in TV series.
The couple has always been very loving after their marriage. Two years ago, Tang Jia gave up his career and chose to leave the familiar Hong Kong for Canada, largely because he wanted to treat his wife's ear disease.
Later, Xue Ni was diagnosed with pancreatic cancer. Tang Jia was very saddened to see his wife hospitalized for a long time and expressed his wish to die with her.
After the hospital issued a critical condition notice, he jumped off a building and committed suicide, fulfilling his promise.
There are two model couples in the Hong Kong film and television industry: one is Leung Ka-fai and Kong Chi-nin, and the other is Tong Ka and Suet Nei.
They have been married for decades and have always had a good relationship, without even a scandal.
Because of Liang Jiahui's fame, their relationship is more widely known to the outside world.
Tang Long naturally respected and admired Tang Jia's attitude towards relationships, but he couldn't possibly do it to that extent.
Having witnessed so many unbelievable things in later generations, he had long since lost any expectation for love and marriage.
Besides, even if Tang Long wanted to be with Liu Jialing, she might not be willing.
Because she moved to Hong Kong from the mainland, she faced discrimination at the beginning of her career and was called a "Northern Girl".
Now that she's famous, this discrimination still exists.
So she had been holding onto her ambition, wanting to rise above others, marry into a wealthy family, and achieve upward social mobility.
Tang Long was really not her ideal partner.
The relationship between the two is now somewhat like huddling together for warmth, fulfilling each other's needs.
"Alright, you've been so busy lately, now you can take a good rest," Cheng Xiaodong said, clapping his hands.
"Hey bro, didn't director Tsui Hark hire you as the action choreographer for 'Once Upon a Time in China'?"
"No, he hired Yuen Woo-ping's Yuen Clan, whose style is more suitable."
He hoped I would start preparing for "A Chinese Ghost Story 3" as soon as possible, but I wanted to take a break first.
After filming "The Blade", Cheng Xiaodong developed even greater ambitions for his directing career.
He wasn't really keen on taking on the "A Chinese Ghost Story 3" project; he preferred to film Tang Long's script.
But since Tang Long hasn't created a new script yet, he'll take on this project for now.
After all, he has a group of people under his command who rely on him for their livelihood.
"A Chinese Ghost Story 3, the second one was so successful, it's definitely time to strike while the iron is hot and make a sequel."
"Are you interested in 'A Chinese Ghost Story 3'? If you are, I can talk to Director Tsui and try to get you the male lead."
"It was impossible before, but now you have the chance to win the male lead role."
"Thank you, sir. Let's see how things go. Maybe Director Xu already has someone he likes."
Tang Long didn't rule out the possibility of a complete disaster. Although "A Chinese Ghost Story 3" was a poor sequel, it was still a popular IP and featured the male lead.
This is also a very valuable opportunity for him, who is just beginning to make a name for himself.
Tang Long felt that he should also consider his next step.