dkrc Chapter 69 Dragons and Tigers Are Both Dog Food
Chapter 69 Dragons and Tigers Are Both Dog Food
Golden Harvest only invested 70% in "The Big Boss"!
Another 30% comes from Liu Lianghua's Thai film distributors, and the film has already been released in Hong Kong, Taiwan, Southeast Asia, and even the island nation, a major box office market.
Although it broke box office records in Thailand and Singapore, the combined total did not exceed $50.
"Fist of Fury" performed quite well, generating a strong response in the island nation, a major box office market, and selling nearly $100 million worth of tickets.
However, entering the European and American markets for the first time is bound to be challenging, and no one is sure what the future holds.
Hollywood predicts that the films will gross no more than $200 million, which would amount to only $1000 million from the total box office for the five films.
Of course, this situation will inevitably improve as Bruce Lee makes his mark in Hollywood.
Based on this calculation, it's impossible to break $500 million; a rough estimate puts it at $2500 million.
however!
Box office revenue is one thing, and profit is another; the two should not be confused.
However, cinemas in Europe, America, and Southeast Asia do not use the "minimum guarantee" distribution method used in Hong Kong; instead, they mostly use a revenue-sharing system.
Each state in the United States has its own laws, and the box office revenue sharing ratio varies from state to state. In some Western European countries, the box office revenue sharing ratio can be as high as 60%.
Overall, it's roughly a 50/50 split, with the production company owning 50% and the theaters owning 50%.
but!
赚到钱还要上税，美利坚各州税率在5-15%之间，西欧甚至能达到10-25%，香江仅有的5-10%税率算是相当宽鬆。
Therefore, of the $2500 million in box office revenue, the producers will only receive about 40%, which is exactly $1000 million.
but!
"The Big Boss" and "Fist of Fury" have already been released in many places, and "Enter the Dragon" is scheduled for December 30 and cannot be withdrawn, so the so-called global box office is no longer valid.
Although "Game of Death" had a 50% investment, it was never filmed after being approved. "Enter the Dragon" had a 45% investment, which was considered good, but "Enter the Dragon" had an even smaller investment of only 25%.
Based on this calculation, Golden Harvest holds scattered equity stakes in five films. Why should it ask for $1000 million? It's like a toad yawning.
"Start with an insane price, then negotiate a lower one..."
Zou Wenhuai chuckled awkwardly, "You've seen it yourself, 'Enter the Dragon' is definitely better than the first two. 'Enter the Dragon' is a Hollywood blockbuster, with an investment more than eight times that of the first two!"
"A large investment does not necessarily mean a large return."
Chen Guanjiang scoffed, "Cleopatra had a budget of $44 million and a box office of $20 million on its opening night. It was such a loss that 20th Century Fox still hasn't recovered."
Even with great confidence in Li Xiaolong, Zou Wenhuai was uncertain about whether they could conquer the European and American markets, and even Warner Bros. was equally uncertain.
After all, Hong Kong and even Southeast Asia, including island nations, have long been major markets for martial arts and kung fu films, deeply influenced by Chinese culture, while this genre is a niche market in Europe and America.
Otherwise, Warner Bros. would not be playing around like a small fry, allowing Bruce Lee to flounder in the quagmire of Hong Kong.
Once it's confirmed that Bruce Lee is well-connected in Europe and America, Warner Bros. will immediately increase their investment to bring him back to the United States.
Of course, it is precisely because of this uncertainty that the two sides disagreed on the box office betting agreement.
Zou Wenhuai frowned and asked, "How much money are you willing to offer?"
"The Big Boss is projected to gross $200 million. European and American theaters will take an average of 50% of the box office revenue, so I expect to receive $100 million. Golden Harvest holds a 70% stake, so I will give them $70."
"Fist of Fury performed well in Japan, and the estimated box office in Europe and America is $350 million. Golden Harvest owns 100% of the company, so it is estimated that they will receive $175 million. I will give $175 million."
"The movie 'Enter the Dragon' is estimated to gross $500 million worldwide. Golden Harvest holds a 55% stake, but will only receive 40% of the box office revenue, which is $100 million."
"Enter the Dragon and Game of Death are currently in production. Although there is a lot of uncertainty, the market has been cultivated after all. I can give both films a box office estimate of $700 million."
"Golden Harvest holds a 25% stake in 'Enter the Dragon,' worth US$87.5."
"Golden Harvest holds a 50% stake in 'Game of Death' for $175 million."
"Five films, totaling $607.5 million. After deducting the global average tax rate of 10%, that's $546.7 million. A flat price of $550 million. We can't let Uncle Zou lose out."
Chen Guanjiang's offer made Zou Wenhuai's heart pound.
To know!
The total investment in Bruce Lee's five films was only $207 million (the original investment for "Game of Death" was $50, with an additional $80 invested before filming was completed).
Golden Harvest actually invested $92.75. By simply selling the box office revenue of the five films to Chen Guanjiang, they could earn $457.25. Moreover, some films had already been released in certain regions and garnered some box office revenue. Subsequent films would also be released in Golden Harvest to earn guaranteed fees.
But who would complain about making too much money?
Zou Wenhuai suppressed the upward curve of his lips and shook his head in refusal, saying, "The estimates for 'The Big Boss' and 'Fist of Fury' are reasonable, and 'Enter the Dragon' is also fine. I can agree to them."
"But 'Enter the Dragon' and 'Game of Death' had professional Hollywood teams directing their production, making them more suited to the tastes of the Western market, and their box office performance in Europe and America was severely underestimated..."
"The movie isn't finished filming yet, Uncle Zou, how much do you want?"
Chen Guanjiang couldn't help but laugh at the old man's poor performance, realizing that he was also playing along with him.
As a seasoned professional, I know the industry inside and out.
Chen Guanjiang knew the box office of every film Li Xiaolong made like the back of his hand, and the price he quoted for each film was higher than the normal commercial estimate, all in order to lull Zou Wenhuai into a false sense of security.
The reason they were willing to deliver box office revenue far exceeding expectations was for the upcoming film, "Enter the Dragon"!
If calculated based on normal box office figures, "Enter the Dragon" would have reached a global box office of $1000 million, and only grossed $300 million in Europe and America.
however!
When Bruce Lee passed away, "Enter the Dragon" became his swan song. Coupled with the audience base accumulated by the first three films, Jeet Kune Do culture and "Kung Fu" were included in the Oxford English Dictionary.
All of these factors combined to propel "Enter the Dragon," this swan song, to a record-breaking $2500 million in North America and a staggering $9000 million in its first run worldwide!
Only death can elevate art;
Only death can earn one a place in history;
Just like that director, if he had died on the spot after filming "The King of Turtle and Chicken," he would have been immortalized.
As the saying goes, "New generation replaces old," and if Bruce Lee hadn't died, he would have eventually been surpassed by the new generation of actors, and he would have had no chance of challenging the entire film industry and special effects production.
Chow tentatively offered, "A package deal of five films for $650 million!"
"$600!"
Chen Guanjiang said firmly, "This is my bottom line. If you think $700 million is appropriate, Uncle Zou, we can wait until the box office results of 'The Big Boss' in Europe and America come out before discussing other films."
Chow Wen-huai didn't dare wait for the box office results in Europe and America, and quickly agreed, "Okay, $600 million it is! But I need to discuss it with the other shareholders of Golden Harvest first."
"no problem!"