The director starts by learning from the abilities of renowned directors.

Chapter 147: Success! The Film and Television Industry Shocked

Following Shen Qing's instructions, Chen Zhixi first contacted the film's distributors, China Film Group and Enlight Media, and then contacted almost all the other cinema chains through them, requesting that the opening day screenings of "Taken 3" should not be lower than those of "Transformers 3".

The theater operators were furious when they heard this. Liu Wei, general manager of Beijing New Film Union, complained to Han Sanping on the phone that the reason why "Transformers 3" got an extremely high screening rate of 73% was because it was released during a clearance screening, and there were no other big films before it.

However, "Taken 3" is scheduled for release on August 12th. At that time, "Transformers 3" has only been released for 22 days and "Harry Potter and the Deathly Hallows Part 8" has only been released for 9 days. Theoretically, both of these blockbusters still have strong momentum, and theaters must reserve appropriate screenings for them.

With three major films being released at the same time, "Taken 3" already shows that theaters have extremely high hopes for director Shen Qing if it gets 50% of the screenings.

In short, it's impossible to get a screening slot for "Transformers 3" on its opening day!

Han Sanping and Wang Changtian called Shen Qing separately to explain the difficulties faced by the cinema chains. Han Sanping was particularly patient in his explanation, since four of the top ten cinema chains are either subsidiaries of China Film Group or have shares held by China Film Group.

"Mr. Han, I see that mainstream media are predicting 'Transformers 3' will gross between 800 million and 1 billion yuan, while 'Taken 3' is predicted to gross between 1 billion and 15 billion yuan. 'Taken 3' is predicted to have a higher box office, but it only gets less than 70% of the screenings of the other film. Do you think the theaters think we're easy to bully?"

"Haha, no one dares to bully you. Cinemas across the country are counting on your movies to make money for them. This is indeed a special case, and 73% is unrealistic. How about this for now? I'll have a good talk with the cinemas during the internal screenings and ask them to think of a way to raise it to 55%?"

"Okay, I'll listen to President Han. We'll talk about it when we have the internal screening."

The two then hung up the phone.

It's true that mainstream media predicted that "Taken 3" would surpass "Transformers 3" at the box office, based on the 15.7 billion yuan box office of "Lost in Thailand".

If "Lost in Thailand" can rake in 15.7 billion, it's not impossible for "Taken 3" to also rake in 15 billion, right?

The "Taken" series has been a blockbuster from the beginning. The first two films in the series far surpassed "Lost in Thailand" in terms of domestic box office, international box office, and overall influence. With the popularity of the first two films and the combination of Shen Qing and Fan Bingbing, it would be a miracle if the box office of "Taken 3" was less than 10 billion!

Right now, Shen Qing himself is probably the least confident about "Taken 3." He knows better than anyone that "Lost in Thailand"...

That's an exception. Just because "Lost in Thailand" is good doesn't mean other movies can be good too. Besides, "Taken 3" doesn't have as wide an audience as "Lost in Thailand," and it doesn't even have as wide an audience as the "Transformers" series.

In short, Shen Qing would be incredibly grateful if "Taken 3" could gross 10 billion yuan at the box office; it's normal if it doesn't. But that doesn't stop Shen Qing from negotiating with theaters based on mainstream media predictions that "Taken 3" has a chance to gross 15 billion yuan, or even break the record set by "Lost in Thailand."

After a minor setback in negotiations to increase screen time, Shen Qing immediately instructed Chen Zhixi to make new demands to the theaters—to increase the film's revenue share.

"How much should it be increased?" Chen Zhixi asked.

"46%."

"The opposition will be fierce."

"They vehemently opposed my request to increase the proportion of screenings I get, and they still vehemently opposed my request to increase the revenue share. Do they really think I have no temper?"

"So you mean that since they've already opposed your request to increase the number of screenings, they won't strongly oppose increasing the revenue sharing ratio anymore?" Chen Zhixi shook her head. "It's very difficult. The revenue sharing ratio is a matter of life and death, and no one will easily give in."

"Increasing the revenue-sharing ratio is one aspect, but it's also to test how many tricks we can pull off with 'premium screenings.'"

"A preview screening?"

"Yes, a preview screening!"

Preview screenings are a key tool in Shen Qing's plan to develop "Maoyan Movies". With the Maoyan Movies APP about to be launched, Shen Qing wants to take this opportunity to test whether this tool is sharp enough.

If the preview screenings can get Shen Qing to back down to the theaters, then it will certainly be a powerful tool.

As for the specific operating methods...

Zhang Weiping's method was to use Zhang Yimou's films as leverage: if you don't give me a higher share of the revenue, I won't allow you to release Yimou's films.

The method was effective, but the backlash was too intense. At the end of this year, Zhang Weiping used "The Flowers of War" as leverage to demand that the film's revenue share be increased to 45%, which then led to a collective boycott from the eight major cinema chains.

The two sides were at an impasse. One side said, "If you don't increase your revenue share, I won't let your theaters screen your film." The other side said, "If you increase your revenue share, then all our theaters will refuse to screen your film."

Finally, the leaders of the Film Bureau intervened to mediate and break the deadlock. Zhang Weiping basically achieved his goal, but there were also some compromises. The revenue sharing ratio for "The Flowers of War" within 5 million yuan of box office revenue was increased to 45%, while the revenue sharing ratio for the part exceeding 5 million yuan was reduced to 41%.

Rejecting films from theaters and cinemas unless the revenue-sharing ratio is increased is indeed too domineering, hurting both sides and potentially leading to a boycott. But what if theaters with unfriendly relationships are denied screenings? That's perfectly fine!

The choice of which theaters and cinemas a film chooses to screen in is entirely the independent right of the film's producers, and no one has the right to interfere!

Moreover, theaters don't really care who gets the preview screening slots, since these days preview screenings are usually very small, generally less than 0.1% of the total screenings.

There will only be two or three preview screenings; you can give them to whomever you want.

The problem is that no one has ever said that preview screenings have to be very small.

In 2023, the movie "All for the Winner," starring Jin Chen, had a 20% share of preview screenings, which later surged to 24%. 24% of the total screenings were actually preview screenings!

This screening ratio is higher than the general release screening ratio of most movies, but it is still a preview screening!

Ultimately, "All In" grossed 5.4 million yuan in its first three days of preview screenings.

Also a 2023 film, Wang Baoqiang's "The Octagonal Cage" grossed 4.2 million yuan in ten days of preview screenings, which was also a preview screening.

"Claw Machine" had 37% of the screenings in advance, but it was still considered an advance screening!

What if Shen Qing negotiated the preview screening scale of "Taken 3" to 10%? It is the film company's right to decide who gets preview screenings. Friendly theaters get temporary keys and take over the preview screening traffic of big films in advance, selling millions or tens of millions of yuan in box office revenue every day. Moreover, because the preview screenings are small in scale, the average number of people per screening is usually very high. With fewer empty seats, the theaters earn more.

As for unfriendly and uncooperative theaters, Shen Qing is certainly not as domineering as Zhang Weiping in preventing them from showing his movies, but waiting until the theatrical release is perfectly reasonable, right?

This effectively turns into a system where only those who obey are allowed to have their films released, and it naturally fragments the cinema alliance.

You boycotted it, but other cinemas secretly signed preview agreements with Shen Qing. Your cinema was empty and was even disliked by the audience. Other cinemas could show Shen Qing's movies, but yours couldn't, it was trash! Meanwhile, the cinemas and theaters that were originally allied with you were packed every day because they had big movies showing in advance. Don't you think you were wronged?

Expanding the scale of preview screenings will naturally break up the cinema alliance.

When Shen Qing explained the specific plan to Chen Zhixi, Chen Zhixi's first reaction was excitement, but after calming down, she had some concerns.

"How will China Film Group view us for trying to control cinemas with limited screenings? Four of the top ten cinema chains are under China Film Group."

"It's okay, China Film Group is too big. China Film Group's distribution and China Film Group's cinema chain are not the same thing."

Shen Qing remembers that in the original timeline of 2012, which is next year, the five major distribution companies—China Film Group, Huayi Brothers, Berna, Stellar Media, and Enlight Media—would use films such as "Back to 1942," "The Last Supper," "The Grandmaster," "CZ12," "The Guillotines," "Laughing God 2012," "Secret Garden," "Lost in Thailand," and "The Great Shanghai" as bargaining chips to demand that theaters increase the revenue share of the film companies to 45%.

These five distribution companies, all of which own their own cinema chains, have stepped forward to demand that cinemas increase the revenue share for the film producers. This is a prime example of a battle between the left and right brains, and they've succeeded once again.

This is also one of the reasons why Shen Qing requested a higher share of the profits, because he would be involved sooner or later, so he might as well remain in the fold and take the opportunity to test whether his preview weapon was actually any good.

"First, talk to those cinema chains with whom you've had a more pleasant working relationship and who have faster returns."

"Okay, and whoever we talk to, even if they don't want to agree in their heart, they will have to seriously consider it or even agree against their will, because if they don't agree, we will definitely talk to other companies, and no one can guarantee that other companies will not agree either."

The Prisoner's Dilemma.

Chen Zhixi first met with Ye Ning, the general manager of Wanda Cinemas. Wanda Cinemas is the largest in the country, has a fast return on investment (at least it returned money to Magic Films very quickly), and has invested heavily in "The Great Wall". The two parties have a close cooperation and meet the standards of a cooperation partner.

"Mr. Chen, land prices are getting more and more expensive, and the initial investment costs for cinema construction are getting higher and higher, and the risks are getting greater and greater. Even if the revenue is split at 43% according to the film producers, many cinemas are not making money or even losing money. Raising it to 46% is almost completely unacceptable for cinemas."

"Mr. Ye, in the future, the scale of preview screenings for the films produced by our Magical Film and Television Media will gradually increase, possibly by 5%, 10%, 15% or even higher. You are an expert, and you don't need me to remind you of the higher attendance rate for preview screenings. Our Mr. Shen's films have always been super popular, and it is common for audiences to line up outside the ticket hall to buy tickets."

With the increased scale of preview screenings, it's as if your Wanda Cinemas can screen Mr. Shen's film ahead of time, while your competitors can only wait for the later public release. Wanda Cinemas has big ambitions. Don't you think this is an excellent opportunity to further expand Wanda Cinemas' leading advantage?

Spending money to acquire market share is very common in business competition, but what we at Magic Films want is just a mere 3% increase in revenue sharing, and what we can offer Wanda Cinemas is —”

Upon hearing this, Ye Ning frowned and fell into deep thought, while Chen Zhixi waited quietly while drinking her coffee.

"This is a very important matter, and I cannot give you an immediate reply."

"No rush. There are still more than two months until the release of Taken 3. You can take your time to study it."

"it is good."

"That's all for today, I have appointments with managers from other cinema chains."

Managers of other cinema chains?

Ye Ning immediately became alert. If it wasn't that important whether Wanda Cinemas could release Shen Qing's movie ahead of schedule, then it was absolutely unacceptable for a competitor to release Shen Qing's movie ahead of schedule.

"Please wait a moment, Mr. Chen."

"?"

Chen Zhixi turned to look at Ye Ning.

"Regardless of the outcome, I will give you a clear answer within three days."

"it is good."

In the following days, Chen Zhixi met with several film distribution companies, including China Film Stellar, Zhejiang Times, and Liaoning Northern. The situations were all similar: when asked to increase the revenue sharing ratio, they immediately said no; when asked about the large-scale preview screenings of Magical Films, they all hesitated, each with their own ulterior motives.

That day, Chen Zhixi met with Zhao Jun, the manager of China Film Southern New Line.

"Mr. Chen, this is a very serious matter. You need to give us time to consider it."

"certainly."

Chen Zhixi was used to the same response as always.

Just then, Chen Zhixi's phone rang.

"Mr. Zhao, I'm sorry."

Chen Zhixi raised her phone.

"Please make yourself at home, Mr. Chen!"

The call was from Ye Ning, the general manager of Wanda Cinemas.

"Hello, Mr. Ye."

"Hello Mr. Chen, do you have some time recently? We need to discuss the profit-sharing ratio in more detail."

"Then let's do it tomorrow."

"Okay, I'll give you a heads-up tomorrow. Our CEO, Mr. Wang, is already aware of your proposal. Wanda Cinemas' stance is that some details still need to be discussed further."

"Yes, Mr. Ye."

After agreeing on a time and place to meet, the two hung up the phone.

"Excuse me, is this Mr. Ye the same Mr. Ye Ning from Wanda Cinemas?"

Zhao Jun had only overheard a few words, and now he couldn't contain his curiosity and asked.

Chen Zhixi smiled, neither saying yes nor no.

This only reinforced Zhao Jun's suspicions.

If Wanda Cinemas agrees—

Zhao Jun felt a sudden surge of urgency.

Back at the company, Chen Zhixi reported the progress of the matter to Shen Qing.

"A 46% revenue share is an outrageous demand. You can decide the exact amount yourself," Shen Qing instructed.

The next day, at the same coffee shop where they had met before, Ye Ning immediately told Chen Zhixi that Wanda Cinemas had basically agreed to her proposed preview screening plan.

In addition, Wanda Cinemas promised Chen Zhixi that Wanda would give Shen Qing 46% of the box office revenue from his self-directed films and would also give him as many screenings as possible, but this was not a mandatory agreement.

Another day passed, and Southern New Line also agreed. They originally wanted to fight for some more rights, but when they learned that Wanda Cinemas, the largest cinema chain, had already given in, they stopped trying to fight for their rights.

With China Film Group and Enlight Media as witnesses, Magic Film & Media was the first to sign a contract with Wanda Cinemas, followed by Southern New Line and China Film Stellar Media.

"I think the scale is about right," Shen Qing said to Chen Zhixi. "It doesn't matter whether other theaters agree to join us anymore."

"Several companies have said they will try their best to increase the number of screenings for our film."

Shen Qing smiled and nodded upon hearing this. Chen Zhixi smiled when she saw Shen Qing smile, and this could be considered as the two of them having accomplished something very proud together.

Shenqi Films has reached an agreement with Wanda Cinemas, China Film South New Line, and other cinema chains, which will increase the revenue share of Shenqi Films' blockbusters to 46% in the future. As soon as the news was released, the entire Chinese film and television industry was instantly set ablaze.

Is this for real?

The revenue sharing ratio has been increased to 46%?

Does this work too?

How exactly did Magic Movies manage to do that?

How exactly did Shen Qing persuade Wanda and other cinema chains?

That's incredible!

The news completely ignited the Chinese film and television industry, and those in the know were particularly shocked.