Reborn Tycoon Rise
Chapter 42 What is fair?
Even though the movie has started to be released, there is still a lot of publicity. Various leaflets are still distributed, and advertisements on TV stations continue. And our own newspaper Jiahe Daily has been publishing Drunken Master advertisements since early July.
Soon, another kind of advertising took over: word of mouth.
As word-of-mouth continued to grow, more and more people came to major theaters to inquire about movie screenings. Jiahe Cinema also immediately responded. Not only were all 19 theaters showing Drunken Master, but the time slot every day also changed from 2 to 2. The number of shows increased to 5, and Drunken Master's single-day box office continued to break records.
A few days ago, Xu Zhi visited several theaters in Jiahe. Almost every theater was full. It wasn't until Jiahe opened more broadcast time slots and opened more theaters that the scene became more environmentally friendly, and the attendance rate went from continuous to full. The 80% that was stable for a few days slowly dropped to 70, 60, 50...
Lin Siqi happily placed a form in front of Xu Zhi and said: "Boss, the box office of Drunken Master has been released, 7.1 million Hong Kong dollars."
Xu Zhi looked at the report. It was better than the historical data. This was the daily box office revenue data provided by Jiahe, but he didn't know if there was any fraud.
This is the strength of a monopoly theater chain. If you want to check his data, you will probably have to go to court. Even if you succeed, you will be prepared not to be in this industry in the future, otherwise it is best to stay honest. Pretend not to know, after all, Jiahe can't cheat your family, they will all be cheated together, and there will be a bottom line, even if they cheat, they can't be too cruel.
Xu Zhi smiled and said: "According to the sharing agreement with Jiahe, how much can we get?"
Lin Siqi said: "After deducting taxes, we can get almost 35%, but we have to deduct 10% of the entertainment tax first. If we can almost get it, it should be about 2.2 million Hong Kong dollars. Of course, this money has to be called corporate income tax. But that’s next year, but we still have to prepare for tax avoidance.”
Xiangjiang Company pays tax once a year, and there is only one type of tax, which is profit tax. The fixed amount is 15%. That is, no matter how much sales a company has, it only needs 15% of its profits. It is simple and clear. Most small companies do not even need an accountant. please.
Changxing Company is registered in Bermuda, where taxes are lower, often only 1.5%, and if a large company goes there, it can have a certain amount of room for negotiation. This is simply the place that all international companies yearn for.
But basically all parts of the world abide by the rules for paying taxes at the place of sale. Wherever the company's products are eventually sold, taxes have to be paid there, so to a certain extent, you don't have to pay taxes if you register overseas.
Changxing's movies are released in Xiangjiang, so it is normal to pay taxes to Xiangjiang. However, since the tax is only reported in the first half of each year, Xu Zhi is not in a hurry.
After thinking for a while, he said: "Contact the people at Jiahe. I still owe their company 500,000, so I will use the box office share as a deduction first."
Lin Siqi nodded and said: "Okay, but Wanwan's theater chain has been urging me several times recently. Should we give them an answer?"
A few days after Drunken Master was released, the box office and word-of-mouth reviews have been very good, which also attracted the attention of Wanwan Cinema Company. They mainly make money by introducing movies from Xiangjiang. They can't hide any disturbance in the Xiangjiang film industry from them. Of course, they couldn't ignore the sudden rise of Drunken Master.
Through Jiahe's internal information, they also contacted Lin Siqi. Of course, Lin Siqi couldn't make the decision, so she told Xu Zhi, but Xu Zhi was not in a hurry at all and just kept saying: "We will wait until the box office comes out."
Xu Zhi thought for a while and said, "Okay, please contact everyone, including Jiahe, Wanwan Cinema, Chen Long, Yuan He and other crew members, and we will have a celebration meeting together."
When Lin Siqi heard that there was a party, she smiled and said, "Okay."
"Wait a minute." Xu Zhi added, "It's best not to notify the media and arrange a hotel that can refuse reporters. I don't want to bother these people."
Lin Siqi asked: "If we don't notify reporters and media, there's no way we can promote our film company?"
Xu Zhi shook his head and said: "No, stars need publicity, but I don't. Besides, you said we are a film company, but besides you and me, who else is there!"
Lin Siqi said: "It's because we don't have it now, so we need to open up our reputation! Attract more people to join. Even if first- and second-tier stars don't join, it's okay to sign some potential newcomers!"
Xu Zhi smiled and said, "Do you know why the name of my company is Changxing Culture instead of Changxing Pictures?"
Lin Siqi was not stupid, and immediately said: "Boss, do you mean that we are not actually a film company?"
Xu Zhi smiled and said: "Yes, Zou Wenhuai controls theaters and channels. This success is beyond his expectation, but I will definitely be restricted by him next time, unless I am willing to work for him. Just like Xu Guanwen, he has already We have made several movies in a row that grossed more than 3 million at the box office, but I estimate that Golden Harvest made at least 80% of the profits during the whole process."
Lin Siqi said: "Then there is nothing we can do?"
Xu Zhi said with a smile: "In the whole of Xiangjiang, the two largest theater chains are Shaw Brothers and Golden Harvest. Among them, Shaw Brothers is more domineering than Golden Harvest. They make their own movies and release them and do not accept outsiders. If you go to Shaw Brothers, no matter it is Stars and directors all receive a fixed salary.
Jiahe was a little better. Although he also took away a lot of profits, at least he could still leave a mouthful of soup with a few bones, and maybe a few floating pieces of fat occasionally. "
Lin Siqi said: "These monopolies are really hateful and unfair."
Xu Zhi shook his hand and smiled: "No, this is fair. If someone controls the theaters and channels, can they still share the profits with you? Only the weak in this world will pray for fairness."
Lin Siqi was stunned after hearing this. This was completely different from her world view. She paused for a while and said, "What should a weak person do?"
Xu Zhi thought for a while and smiled: "Work hard to become stronger, and then bully other weak people."
Lin Siqi couldn't keep up and asked, "Then what should we do now?"
Xu Zhi thought for a while and said: "Let's look at the situation first. Unless it is absolutely necessary, it is better not to fall out with Jiahe. This will not do any good. Now that we are weaker than others, we must have this awareness. Blindly seeking fairness is just idiotic. Behavior, I will negotiate with Jiahe again, you go about your business first!"
"Okay." Lin Siqi said and went out.
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