Chapter 182: Profit profit

? With the support of the release of Embassy Pictures, the three films achieved high revenue.
"Blair the Witch" has a total revenue of US$181.2 million, "Ace Agent" has a total revenue of US$28.2 million, and "Reaper is Coming" has a total revenue of US$118.1 million.
Due to the sale of overseas copyrights, North American income accounted for the bulk of the revenue of the three films.
These calculations are all overseas copyright income from the sale, not the total overseas income in the hands of Sony Columbia.
In fact, the overall overseas box office of the three films is also very good.
"Blair the Witch" earned US$113.51 million in overseas box office, "Ace Agent" earned US$16.7 million in overseas box office, and "Reaper is Coming" earned US$72.64 million in overseas box office.
These are all online income, offline income data, as the publisher, Sony Columbia Pictures has not disclosed it at all.
In the face of overseas markets, the former Embassy Pictures could only sell off overseas copyrights, and at least nearly half of its overseas revenue went to overseas distributors.
Fortunately, even if the three films are sold off overseas copyrights, they are also distributed by the Embassy Pictures. As the distributor, the Embassy Pictures can justifiably extract distribution costs from the sale.
For these three films, including online and offline, Embassy Pictures drew a total of US$111.55 million.
Of course, the profit of Embassy Pictures is not so high. This is just the total revenue, excluding labor, taxes, operations, attorney fees, accountant fees, channel costs represented by video tape stores, relativity loan interest, and overseas channel expansion. Net profit was 28.3 million US dollars.
The income of Shahai Entertainment is much lower. The largest part of the income is "Blair the Witch" purchased by Relativity Entertainment. The only two films that belong to Shahai Entertainment are "Death Is Coming" and "Ace Agent".
Moreover, after the relevant income is obtained, some of it has to be settled with investors such as the Abu Dhabi Investment Authority and Hassan. The operating income is only 41.2 million US dollars.
As a producer, it is also the main payer of various expenses, such as the union fee of the film, the post bonus of the main creators, the market research fee and so on.
Shahai Entertainment's net profit after removing a series of expenses was only $8.64 million.
This is just the number on the statement. In fact, many funds, such as Hassan and others' share, will stay on Shahai Entertainment for a long time.
The most profitable is Relativity Entertainment. Ronan originally bought "Blair the Witch" as Relativity Entertainment. After the Embassy Pictures deducted various income and various channel fees, there was still close to 100 million US dollars. Relativity Entertainment’s account.
Compared with the high income of "Blair the Witch", the cost of Relativity Entertainment is too small, and the total box office bonus for buying the copyright and the main creative group is only a hundred thousand dollars.
In addition, Relativity Entertainment has $4 million in interest income from loans to two subsidiaries.
These did not calculate the income of Ronan’s investment in the stock market. Since Ronan fully controlled three companies, he had already asked Mary to pass legal procedures to transfer the income from the stock market to his personal name.
This funding is as high as 48.5 million US dollars.
During the past two years, Ronan has a lot of personal income, especially in 1999. As the president of three companies, the first producer of two films, and the creator of a film’s publicity and marketing plan, he has The corresponding income, the annual salary during the period, screenwriting fees, producer salary, producer share, etc., total up to 12 million US dollars.
This has not counted in the producer compensation for "Fatal Turn" and "Human Removal Project 2."
Just like the crew of the "Human Removal Project", even if Ronan absolutely controls the company, he won't take a penny less in the reward he should get.
Not to mention anything else, this can also dilute the profit of the film.
For a medium-to-higher scale production like "The Bourne" alone, Ronan's producer salary is as high as 3 million US dollars, the screenwriter is paid 50,000 US dollars, and has a 1.5% box office share.
This is the legal income of the producer.
Ronan was the producer of the films, "Human Elimination Project" and "Reaper Is Coming", a North American box office with a box office of more than 100 million, and a global box office with a box office of more than 100 million, the producer's salary has naturally risen.
Although producers cannot get a single film salary of 20 million U.S. dollars like first-line directors and celebrities, but gold medal producers such as Jerry Bruckheimer have a single film salary of up to 10 million U.S. dollars and various post-production incomes. Divided.
Investment can be tax deductible, Ronan withdrew 50 million US dollars from his personal income, ready to wait for the opportunity to invest.
As soon as April’s tax filing season is coming, professionals will do all the work in this area. Ronan doesn’t need to pay too much attention, but he has repeatedly reminded him not to evade taxes.
Various legal tax avoidance methods are available, but measures that are too risky are not suitable for the time being.
Relativity Entertainment's current anti-risk ability is too poor, if it gets into the IRS, it might be over.
Ronan worked hard for two years, stood on the tightrope and danced several times, even without hesitation, and finally got the reward.
At the beginning, the Abu Dhabi Investment Authority offered 100 million U.S. dollars in investment and 300 million U.S. dollars in capital in exchange for most of his shares, but he refused. Now even if it doubles, Ronan will refuse without hesitation.
Film companies with annual revenues of more than US$300 million can barely be included in the ranks of medium-sized film companies in Hollywood.
The key is that Relativity Entertainment has a distribution channel that the average medium film company can't reach!
As long as overseas distribution channels are established and two or three films can be successfully distributed overseas, the value of Embassy Pictures alone is more than 500 million US dollars!
But Ronan will not sell, the issuance will continue to bring benefits.
Relativity Entertainment is not listed and does not need to make public performance reports. Ronan has no plans to make public. To have such a high income in 1999, the success of "Blair the Witch" is the key.
However, he believes that as the company expands and the number of films produced or distributed increases, revenue will increase every year in the future.
The successful release of "Blair the Witch" brought even more profits than investing in the stock market during the same period.
With subsequent investment in video tapes and DVDs, the total investment in this film was less than 24 million U.S. dollars, in exchange for 181.2 million U.S. dollars in revenue.
Excluding those small companies that invested $100,000 a year to make two films, but hit the big luck in the video tape and DVD market with less than one million revenues. Among all the medium-sized film companies, Ronan felt that the profit of Relativity Entertainment Rate can be ranked in the top few.
The six major Hollywood companies have very high net incomes, but their profit margins have always been low. In the 1980s, there were 15%. By the middle and late 1990s, the profit margins had dropped to about 5%.
This is the public data of the six major companies. They are all listed companies. Ronan does not know whether there are any tricks among them. I am afraid that only the core personnel of the six major companies will know.
Relativity Entertainment has a large amount of funds in its hands. Except for the necessary working capital, the remaining funds can be invested in order to achieve the maximum value.
Today, Embassy Pictures has initially possessed online distribution channels, and Ronan’s focus is on offline distribution.
The most important offline distribution is TV broadcast, video tape and DVD rental and sale, and peripheral derivative development.
Nowadays, most large-scale TV stations in North America have long been owned by large groups, and their value ranges from billions to tens of billions of dollars. For example, Disney's acquisition of ABC TV station cost as much as 19 billion US dollars.
For the other three of the four major television networks, CBS is owned by Viacom, NBC’s controlling party is General Electric, and Fox Television Network belongs to Twentieth Century Fox, a subsidiary of News Corporation.
Others like MTV, Disney TV, Warner TV and HBO, etc., also have their own homes.
These traditional TV stations are not what Ronan can expect now.
Reaching out to the field of these traditional media groups indiscriminately, it is estimated that he and Relativity Entertainment will be beaten all over.
In the development of peripheral derivatives, Hollywood is really the only one that has done a good job with Disney. Most other companies use authorization methods to authorize character images or other copyrights to other manufacturers, and take a very valuable license fee. Raised from sales revenue.
Ronan has no other way for the time being, and can only take this road with a successful model.
Then there are video tapes and DVD rentals and sales. This is Ronan's next goal.
Today, the largest video tape and DVD rental and seller in the United States is Blockbuster, which is the company that Ronan sold the "Jedi" to raise the cost of his first trip to Abu Dhabi.
Ronan has done enough to understand.
Blockbuster is the nation's largest video tape and DVD rental and sale chain brand, and it currently belongs to Viacom Holdings of Summer Redstone.
This is also one of the offline distribution partners of Embassy Pictures.
Ronan has no idea about Blockbuster, and he is powerless. The real goal is Netflix, who has been staring at him.
This company has developed for more than a year, but its scale has always been limited. Despite the speed of North American Internet development, the penetration rate is still not high enough.
In addition, due to funding issues, Netflix has never obtained a large-scale film license ~EbookFREE.me~ The number of films that can be provided is limited.
The research company that Ronan hired sent him relevant reports every week. Although Netflix built a framework during this period, it was really tough.
Without sufficient film licenses, it is impossible to attract large-scale users. Without a large number of users, it is impossible to attract investment from investors. Without investment, Netflix cannot buy more film licenses.
Now that the stock market has begun to be turbulent, as a typical Internet company, Netflix will inevitably be severely impacted and life will be even more difficult.
Ronan confessed that he was watching Netflix closely and waiting for the most suitable opportunity.
In March 2000, the Nasdaq Composite Stock Index fell sharply, and then it plummeted, and countless investors lost their money.
Ronan couldn't help thinking of the lines in the movie "Wall Street."
"Money is a woman who never falls asleep. She is naturally jealous. If you are careless about her, when you wake up in the morning, she may have disappeared forever."