New York 2006

Chapter 322 The layout of Huaguo
People without thought, he must worry about.

Luo Ji was fascinated by the calligraphy and paintings on the wall of the hotel room. The font was in running script, which was very beautiful.

"My dear, I'm fine." Christine, who was putting on makeup in her room, walked out and held Luo Ji's hand intimately.

"Then let's go." Luo Ji looked at her and smiled.

Since the two made their official announcement, Kristen has stopped pursuing her career and her family is no longer with her.Wherever Luo Ji went, she followed him.In the past month, Luo Ji inspected branches around the world, and she followed him every step of the way.

Don't tell me, there is always someone to accompany you, and you don't have to date secretly when we are together like this.This feeling is quite good.

The two first met with Yang Yanzi, CEO of Logic Pictures, and Zhu Haowei, CEO of Marvel Pictures, and then took a car to Chaoyang District, the capital of China.

Today, they came to attend a symposium on the Chinese film and television industry.

……

"Hello, Luo Ji."

"Hello." Luo Ji shook hands with everyone present and said hello.

Today’s guests are all big names in the Chinese film and television industry.Including Han San, chairman of Huaguo Film Group, Wang Zhongjun, chairman of Huayi Brothers, Yu Dong, CEO of Bona, famous director Zhang Yi, actor Huang Xiao, etc.

They big shots were sitting on a row of benches in front of the stage, and even Christine got into a seat in the front.Others sat below and listened.

The first person to speak was Han San, chairman of China Film Group: "In 2009, my country's movie box office is expected to reach 60 billion, a year-on-year increase of 43%. It has created a new milestone for my country's movies. This is..."

Although Luo Ji had already read these materials once, he still listened very carefully.

China's economic development is getting better and better, especially after the financial crisis.

Other countries are still in recession, but China has introduced 4 trillion government investments, plus each province's own investment.

In the second half of 2009, China's economy has completely recovered.Drive the global economy to slowly recover.

As the country's economy develops and people's wallets expand, entertainment consumption will naturally increase.This can be seen from the revenue of Holi Game Company.

The game company has already established its presence in China, so his film company cannot be left behind.

Han San said: "Now, let us welcome Mr. Luo Ji, a world-renowned Chinese entrepreneur, a famous singer, and a famous actor, to speak."

Bang bang bang, the whole audience applauded.Christine, who was sitting next to Luo Ji, clapped very hard.

Luo Ji did not hesitate and spoke into the microphone: "To be honest, I can't give you any advice on how to develop the Chinese film industry. After all, I am only 19 years old now, and there are only two companies in Hollywood with a valuation of more than ten It’s just a movie company worth hundreds of millions of dollars.”

Hahahaha, everyone laughed out loud.

Luo Ji was humorous for a moment, then became serious: "However, I can talk about how Hollywood works. I believe everyone has heard that when I first became famous through music and made a little money, I invested in the filming of "Twilight" City"."

"Yeah, yeah, I've heard of it."

"know."

Luo Ji continued: "Perhaps in the eyes of others, it is very bold for me, an outsider, to directly invest heavily in making movies. But in fact, this is not bold at all, because the industry chain in Hollywood is so complete that it can even be said to be abundant. .As long as you need everything you need to make a movie, you can easily find it in Hollywood..."

What Luo Ji said was basically dry stuff, and he told all the details about the original filming of "The Twilight Saga."

"This is my speech today. If you have anything you want to ask, you are free to ask."

A young man in the audience said: "Dear Mr. Luo Ji, I am a director. Excuse me..."

…………

After the symposium, Luo Ji took a fellow Chinese and took the initiative to find Han San, the CEO of Huaguo Film Group.

"Hello, Mr. Han!"

"Hello Logic."

Luo Ji introduced the Chinese next to Han San: "Mr. Han, this is the general manager of Huaguo Investment Co., Ltd."

"Hua Investment Company?"

The Chinese next to him said: "Our company manages China's sovereign investment fund."

This was a big shot. Han San immediately came forward to say hello enthusiastically, and the three of them chatted animatedly.

Ten minutes later, the general manager of Huatou had done his job of supporting the appearance, so he said: "Han San, I'm leaving first. Ronaldinho has something to trouble you next, and I hope you can take more care of him."

"No problem." Han San nodded immediately.

The general manager of Huatou left, and Han San immediately looked at Luo Ji with enthusiasm: "Logic, how do you know him?"

Luo Ji said calmly: "His company has some investments in my private equity fund."

"Okay... okay."

As Logic Investment Company becomes more and more famous.China’s sovereign investment fund also came to the door.Luo Ji was a little more reserved before accepting their investment application.

No, we will use them today.This is the benefit of having a wide network of people. You might be able to use it at some point.

Luo Ji then got down to the topic: "Mr. Han, I recently heard news. Your company is currently preparing a subsidiary company, Huaguo Film, right?"

Han San looked at Luo Ji in surprise: "Yes, but how did you know?"

Luo Ji smiled: "My company Logic Pictures also has an office in China."

"Okay." Han San said, "So, the reason why you are looking for me is related to Huaguo Film Company, right?"

"Yes." Luo Ji said with a smile, "I wonder if this company needs investment? I happen to have some spare money."

Han San immediately said: "This company will indeed bring in some external investors, but it is not convenient to accept Hollywood capital. Our company holds the quota of split films. If we accept your investment, other Hollywood film companies will have objections."

"Okay, I understand." Luo Ji also felt that there was little hope, so he just mentioned it.

It's best if you can succeed, and it's okay if you can't.Luo Ji had other purposes.

His purpose is related to China's film policy.

In order to protect its film industry from being overwhelmed by Hollywood, China has its own protection policy.

This kind of protection policy is actually very suitable for underdeveloped countries. The four Asian Tigers all developed in this way.On the contrary, countries without protective policies have developed in a mediocre way.

……

There are two ways for Hollywood movies to enter China.

The first is a direct buyout by China, which is called batch film, also known as "imported buyout film".

This kind of buyout fee is generally not high, and there is a quota limit. "Imported buyout films" usually have a longer release date in China than in the country of origin.

The second type is imported credit-sharing films. As the name suggests, they are foreign films that directly participate in credit-sharing and will be released simultaneously with overseas movies.This profit is much higher than a direct buyout.

There are also quotas for split-account films, and there are only 20 films a year.

The Huaguo Film Group holds the rights to these twenty imported films.Their requirements are blockbusters, which means big investment, big production, and big scenes.

The film distributor of Logic Pictures is Warner, but it is not known whether Warner has not made any efforts or the investment in "The Twilight Saga 1 and 2" is too small and does not meet the definition of a blockbuster. Neither of these two films has been selected by the Huaguo Film Group Selected.

Since Warner cannot distribute the "Twilight" series in China, Logic Pictures will have to handle it themselves.

Therefore, for "The Twilight Saga 1 and 2", Logic Pictures sold the films to Chinese film companies.The movie was released in China as an "imported buyout film", and its box office revenue had nothing to do with Luo Ji's half a dime.

It didn't matter when Huaguo's box office was low, but seeing the market increase day by day, Luo Ji was also greedy for these branch films.Luo Ji looked at Han San: "Mr. Han, my Logic Pictures will have two blockbusters next year. I wonder if you can give me a quota for two parts of the film?"

Han San said: "Come directly to the promotion meeting for your movie. As long as it complies with the rules of blockbusters, we are willing to introduce it."

Luo Ji said: "The Twilight Saga 1 and 2 were submitted by Warner, but they were not selected. I hope that The Twilight Saga 3 will be selected next year."

"Okay, your second part of "The Twilight Saga" performed very well. It is also popular in Huaguo. I will inform my subordinates when the time comes."

"What about 'World War of the Dead'? It's completely a blockbuster, with an investment of 1.5 million US dollars, and there are many big scenes in it!"

"Don't worry, I will pay attention when the time comes."

Han San continued: "Actually, your film company can shoot a co-production film with us. This kind of film does not occupy the quota of split films, and enjoys the treatment of domestic films, and the share is higher."

Luo Ji said, "I know about co-productions, but I don't have any projects. Do you, China Film, have any good projects? We can invest together."

Han San shook his head: "No, you can let your movie find projects."

"Okay, I'll go back and ask Yang Yanzi to look for any suitable projects."

Luo Ji then looked at Han San and said tentatively, "I heard someone say that the quotas for China's budget-sharing films are basically controlled by the top seven in Hollywood. Is that true?"

"No, of course not."

Han San said: "There are so few quotas for split films, so of course what we introduce are blockbusters. Although we are a state-owned enterprise, we still have to make money. In Hollywood, those who can produce blockbusters are usually the top seven. Even if others can produce blockbusters, companies, and they publish it. Just like your Marvel, Logic Pictures, and DreamWorks."

Luo Ji continued: "Then if I distribute Marvel movies myself in the future, I wonder if I can get a quota for split films?"

Han San said: "Don't Marvel's film distribution rights belong to Paramount? "Iron Man" is a split film."

"The deal between Marvel and Paramount is about to expire, and we only have a contract for five movies."

“Are you going to do your own distribution?”

Luo Ji shook his head expressionlessly: "I don't have any plans for the moment, I'm just asking."

Han San looked at Luo Ji thoughtfully, thought for a moment and said, "Logic, you are Chinese, so we should support you. But the Seven Major Companies in the United States have been lobbying the American government to open up the film market. Now we Are we still fighting them at the WTO? They put a lot of pressure on us."

"So, we should try our best to take care of them in the quota of Hua Guo's sub-account cards, right?"

"Yes."

Luo Ji continued: "So, other countries with film protection policies, such as the Middle East, France, South Korea and other regions, should also consider Hollywood's top seven as much as possible?"

"Yes." Han San nodded.

Damn, Qida is so powerful.It can not only affect the United States, but also affect foreign countries.No wonder it’s even stronger than DreamWorks, which only distributes in North America.

It seems like only Lionsgate is doing its own global distribution.By the way, Summit Entertainment, which Luo Ji stole "The Twilight Saga" from, also distributes it globally.

I don’t know how they did it. I can ask Yang Yanzi to investigate later.

Luo Ji then said, "Mr. Han, if I do my own distribution in the future, I wonder how many credits you can give me."

Han San thought for a while and said: "There are two places at most. If there are more places in the split account in the future, I can give you a few more."

Luo Ji wanted to try harder: "Can't there be more?"

"No more." Han San said, "I have already promised you one-tenth of the quota."

"Ok."

Han San kindly reminded: "Logic, the Big Seven can monopolize most of the world's film distribution. Not only because they can lobby the US government and put pressure on foreign countries. But also because they control the American Film Association and control the classification of movies. Power and most of the media resources in the world are the fundamental reason why they can monopolize it. If you really want to distribute it globally, given the current size of your two film companies, they will definitely target you."

"Uh-huh."

Even though Luo Ji was stubborn and unscrupulous.Now I am a little nervous about challenging the Seventh Great.We can't be so reckless, we still need to take a long-term approach.

…………

Two days later, Luo Ji arrived in Shenzhen from the capital of China.

He first visited the factory that produces Marvel toys, and executives from Marvel Toys accompanied him to explain.Christine and Fiona were hanging in the back.

The executive looked excited: "Logic, your previous decision to close the American toy factory was so right. Marvel's toy department's profits will increase by at least 60% this year, and it may be even higher next year."

"Not bad!" Luo Ji was also very happy.

Marvel is a comprehensive company, not just for fun. Sony's "Spider-Man" series, Fox's "X-Men" series, and Marvel's own movie universe series.

These are all to promote Marvel's toy sales.

And it’s not just toys. Peripheral licensing fees for various peripherals, figures, 3C digital products, daily necessities, small household appliances and even pet supplies are also very profitable.

The revenue from popular IP peripherals can basically exceed the box office of movies. No wonder Disney is so rich.

The Marvel executive next to him continued: "Logic has also acted as an agent for several of our toy production factories, and several of them have developed very well in recent years. Our idle production lines in the United States can also be sold to them."

"Really?" Luo Ji said in surprise.

Marvel's factory is closed, but the factory land has been sold.But the machine never sold, and Luo Ji didn't want to sell it directly as scrap, so it kept sitting idle in the warehouse.

You have to pay rent every month and hire someone to maintain it.This has almost become a problem for him.

The executive said, "Of course it's true. I've been talking to them about this recently."

Luo Ji said excitedly: "Then hurry up. As long as you successfully sell it, you will definitely receive a big red envelope as a year-end bonus."

"I will."

Luo Ji came to a Marvel toy display stand in the factory, pointed at the toys inside and said, "Which of our characters sells the best?"

"Spider-Man." His executive said without hesitation.

"No wonder!"

Luo Ji said that Marvel only had a small share of the "Spider-Man" series of movies before, and they also tried their best to help Sony with suggestions.It turns out that's the reason.

Luo Ji continued to ask: "Which toys will sell best next?"

"The X-Men series, and then Iron Man."

"Not bad, not bad. Iron Man is a second-tier character, but the toy sales driven by our movie have reached the top level. It seems that our movie universe strategy is very successful!"

"Yes."

Luo Ji walked around and had a good idea of ​​toy production. The group of people came to the factory's reception room to rest.

Luo Ji drank tea and began to give guidance to his senior executives: "Next, in addition to selling American toy machines, you also have to do one more thing. That is to find a way to count the products on the market that we have authorized. The items sell best. Then we contact the Chinese OEM to produce them and sell them ourselves."

The executive immediately advised: "Isn't this good? Those dealers in the United States will have objections."

Luo Ji waved his hand: "We don't do offline stuff, that would take too much effort, we just do it online. Didn't you notice? Our comics were moved online last week. Those distributors just imposed restrictions. New comics cannot be posted online for [-] days. Others have agreed."

The executive thought for a moment and said, "Okay, then I will be responsible for this."

"That's right!" Luo Ji said with a smile, "Now is the Internet era, and we at Marvel must keep pace with the times."

(End of this chapter)