The entertainment industry shouldn't be like this

Chapter 77

In the capital of China, in the meeting room of the presidential suite of a luxurious hotel.

An islander with a slim fit and a suit and leather shoes was reporting work respectfully to the middle-aged man behind the long conference table.

"President Ito, I have made initial contact with people from Dunhuang Films."

The middle-aged man nodded and said, "Harada, tell me what you have learned."

With a serious face, Harada replied without pausing: "Dunhuang is rapidly rising again, and more and more films will be invested and produced in the future, which will require large sums of money. We have a very positive attitude towards overseas investment."

Ito smiled when he heard this.

Where there is a need for capital, they, investors, can see where the profits are.

"What financing plan did they offer?"

Harada said: "Dunhuang has proposed different plans. The first one is that the investors will directly share the profits from the movie..."

Hearing this, Ito interrupted his words like a blow: "No, we will not consider this."

Harada naturally understood what he meant.

This is not the first time their investment fund has invested in China Entertainment.

A few years ago, we cooperated with Lianya Entertainment, and we adopted the method that the investors directly share the proceeds from the movie profits.

As a result, after a few years, that is to say, the principal was barely recovered, and there was no shadow of income.

Only then did they realize how deep Huayu's water was.

China Entertainment has independent and systematic financial calculation rules. Within the scope allowed by the rules, even if it is a big-selling movie, the net profit may be negative.

They can recover the cost, which shows that Lianya Entertainment hasn't made them too miserable.

But it is enough to step on the pit once, and Ito does not intend to step on it again: "Tell me about the plan behind."

"Yes." Harada paused, and continued: "The second plan is to raise funds from us in installments in the form of high-yield bonds. Bonds have solidified and stable returns. As for the specific rate of return, we haven't discussed yet."

Ito knocked on the table, thought for a while, and murmured: "This sounds a little sincere."

Being able to come up with this plan shows that Dunhuang should not intend to put them to death.

"It seems to be right now." Harada Ying said.

"But Dunhuang cheated many investors a few years ago." Ito recalled the information he had read.

Harada explained: "Yes, but those are not caused by human factors. Moreover, all Dunhuang films that are successfully completed have a frighteningly high profit rate!"

Ito nodded slowly.

Needless to say last year, the investment in "Peking Holiday" was about tens of millions of RMB, but the profit it brought back was comparable to that of a blockbuster movie, and it is definitely a model of small and big.

This year is even more exaggerated.

"Genius Gunner" is still being screened all over Asia!
Although I don't know the specific investment, it is said that Dunhuang has recovered all the costs through the placement of advertising sponsorship.

Don't look at the current "Genius Gunner" being overwhelmed by the newly released "Furious Mountain" in China. In terms of profitability, the former may be higher than the latter.

As for the profit rate, Ito didn't even dare to think about how exaggerated it was.

In a word, Dunhuang must have made a lot of money on this film!

In this way, it seems that it is more cost-effective to choose to share the proceeds from the movie profits.

But Ito quickly shook his head gravely.

It cannot be counted like this.

Movies are high-risk investments, and each movie is a new brand. Unlike other industries that have a strict reference system and quality standards, film production is more uncertain.

Moreover, there are many environmental factors that affect the income of a movie. Even if it is an excellent movie, if it encounters another even better movie in the same period, it can only be considered unlucky.

It is theoretically impossible for Dunhuang to continue such frequent operations with small and large scales.

Every year, there is one film that succeeds in making a big impact with a small one, which is regarded as Dunhuang's vision is excellent.

Moreover, it is impossible for Dunhuang to invest in movies with a high probability of success.

Ito is very self-aware.

Even if you invest in China Entertainment, you are positioning yourself as an investor, not a partner in China Entertainment's film industry.

China Entertainment Group is the same to all overseas investors, even domestic lay investors—investors can only play the role of giving money, and it is difficult to participate in the core process, let alone post-production.

Hollywood is like a bird, maybe even worse.

——The cultural differences between the East and the West alone are enough to trap them to nothing.

With so many concerns, why should you consider investing in China Entertainment?
There is no way to do this, the island country’s economic growth is slow, the market is relatively small, and the risk of investing in the country is higher.

In contrast, the huge Huaguo market is full of investment opportunities, and all walks of life are profitable.

The reason why they still choose to invest in China Entertainment is that their foundation has at least stepped on the pit and has a certain experience in avoiding risks;

Secondly, China Entertainment has a halo in the island country. It is much easier for the foundation to raise funds under the name of investing in China Entertainment.

So, the only question left now is, how to obtain a higher rate of return from Dunhuang?
Ito thought about it carefully, and seeing Harada hesitated to speak, he said in a deep voice, "If there is anything else, tell me."

Harada pointed to the floor and ceiling, and said softly: "In the presidential suite on the upper and lower floors of the hotel, there is also an investment group from the Northern Dynasty and an investment fund from India."

Ito was stunned, and lost his voice: "Dunhuang called investors from all over the world at the same time?"

They also generously arranged to live together, in case they didn't know that Dunhuang had more than one choice?
Harada nodded helplessly.

This is obvious.

The point is, there is really more than one investor.

even……

Harada smiled wryly and said, "I talked with the person in charge of the Indian side, and found that they are just like us who invested in China Entertainment for the first time..."

Ito instantly understood what Harada meant.

What was it like for them to invest in China Entertainment for the first time?
Like a pilgrimage, there is almost no requirement for returns on participating in investment in China Entertainment Films, as long as they are allowed to invest.

Ito's face became extremely ugly.

When there is a single investor, it is natural to be greedy to raise the price. When there are more than one investor, this kind of greed can only be regarded as stupidity, not a reasonable means to maintain maximum income.

What's even more deceitful is that when Dunhuang called them together, he clearly wanted them to undercut each other's prices so that they could reap the benefits.

As for how many of them can unite?
Come on, everyone is from different countries, no one knows who, there is no trust at all, how can we talk about unity?
Ito didn't think too much, and said decisively: "You contact the Dunhuang side immediately, I want to have an interview with their person in charge, and I must hurry ahead of those Indians."

"Yes." Harada responded with a bow.

Then I heard Ito gritted his teeth and said: "Baga, damn Northerners and Indians, are you afraid that you won't be able to be a fat sheep, so you are anxious to queue up for the slaughterhouse?"

Harada bowed his head and stepped back, thinking about the "fat sheep" issue.

——Aren’t we more eager to be fat sheep?

……

　Asking for three consecutive times in daily life - asking for collection, asking for voting, asking for reading, refill~
　　
　
(End of this chapter)