The cost of “Hello, Li Huanying” has always been the focus of the industry. According to industry estimates, the cost of the film will not exceed 100 million. According to the current film investment situation, it takes three times of the box office to recover the cost. Assuming that the cost of “Hello, Li Huanying” is 100 million, then the box office needs 300 million to break even. By the time of the deadline, the box office of the film has exceeded 4.3 billion. According to the current box office trend, the film is considered by the industry to be the film with the highest rate of return on investment this year.
“Hello, Li Huanying” has 8 producers and 16 co producers. Besides Beijing culture and Huayi Brothers, it also includes well-known film and television investment companies such as China Film Corporation and Ali film, and Jia Ling’s own company, Beijing Dawan entertainment culture media Co., Ltd.
Recently, Beijing Culture released an announcement on the box office of the film “Hello, Li Huanying”, which shows that the film has been entrusted to a third-party company for guaranteed distribution, with a guaranteed box office revenue of 1.5 billion yuan. From the above announcement, it can be seen that “Hello, Li Huanying” has been guaranteed a minimum of 1.5 billion yuan. At present, the box office of the film has reached 4.3 billion yuan. The party who guarantees the minimum will make a steady profit and will become the biggest winner. But Jia Ling’s big bowl entertainment is not the bottom of the film, but the sixth largest producer of the film. On February 21, Hengteng announced that Ruyi film, a subsidiary of the company, was the main producer and the largest guaranteed distributor of Hello, Li Huanying.
Guaranteed distribution is a common way of investment in the film industry. There are generally two ways. One is the distributor’s buyout. If the box office fails to reach the guaranteed box office, the distributor will bear the loss and the producer will make a steady profit. If the bet is successful, the issuer will get all the excess earnings except the minimum box office. On the other hand, on the basis of ensuring the bottom box office, if the box office is higher, the producer and the distributor will divide the account according to a certain proportion. The higher the box office is, the more the distributor will share. If the total box office of “Hello, Li Huanying” is estimated to be 5 billion yuan, the actual income of Jia Ling’s big bowl entertainment may be about 100 million yuan.
If “Hello, Li Huanying” does not take the way of guaranteed release, how much more money will Jia Ling make? If “Hello, Li Huanying” does not take the way of guaranteed distribution, according to the total box office of 5 billion yuan, the film cost and publicity expenses are calculated as 100 million respectively, and the film side recovers 1.75 billion. Assuming that the investment share of Dawan entertainment is 10, it will earn 175 million. According to this calculation, Jia Ling made about 70 million yuan less from the guaranteed issuance.