"Hello, Li Huanying" chose a guaranteed release, which made Jia Ling lose 70 million yuan

During this year's Spring Festival, Jia Ling's debut film "Hello, Li Huanying" became a hit, and the box office soared. The industry predicts that the total box office of the film will exceed 5 billion yuan. "Hello, Li Huanying" has such a high box office. As the director, screenwriter, starring actor and one of the investors of this film, how much money can Jia Ling make from it? If the film does not participate in the guaranteed release, how much less money will Jia Ling make?

The cost of "Hello, Li Huanying" has always been the focus of attention in 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 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. As of press time, 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 have the highest return on investment this year.

"Hello, Li Huanying" has 8 producers and 16 co-producers. In addition to Beijing Culture and Huayi Brothers, it also includes well-known film and television investment companies such as China Film Co., Ltd. and Alibaba Pictures, as well as Jia Ling's own company-Beijing Dawan Entertainment Culture Media Co., Ltd.

Recently, Beijing Culture released an announcement on the box office of the movie "Hello, Li Huanying". The announcement showed that the film has been entrusted to a third-party company for guaranteed distribution, and the guaranteed box office revenue is 1.5 billion yuan. It can be seen from the above announcement that "Hello, Li Huanying" has a guaranteed minimum of 1.5 billion yuan. The current box office of the film has reached 4.3 billion yuan. The guarantor will make a steady profit and will become the biggest winner. However, Jia Ling's Big Bowl Entertainment is not the guarantor of the film, but the sixth largest producer of the film. On February 21, Hengten Network announced that the company's Ruyi Films is the main producer and largest guaranteed distributor of "Hello, Li Huanying".

Guaranteed release is a common investment method in the film industry. There are generally two ways. One is that the distributor buys out. If the box office does not reach the guaranteed box office, the bet fails, the distributor bears the loss, and the producer makes a profit. If the bet is successful, the distributor will obtain all excess profits beyond the guaranteed box office. The other is that on the basis of the guaranteed box office, the excess box office will be divided by the producer and the distributor in a certain proportion. The higher the box office, the more the distributor gets. The guaranteed release method of "Hello, Li Huanying" may be the latter. If calculated based on the total box office of 5 billion yuan for "Hello, Li Huanying", Jia Ling's actual profit for Big Bowl Entertainment may be around 100 million yuan.

If Hello, Li Huanying did not adopt the guaranteed release method, how much more money would Jia Ling make? If Hello, Li Huanying did not adopt the guaranteed release method, based on the total box office of 5 billion yuan, the film cost and publicity and distribution expenses would each be 100 million yuan, and the film company would recover 1.75 billion yuan. Assuming that Big Bowl Entertainment’s investment share is 10%, it would make 175 million yuan. In this way, the guaranteed release made Jia Ling lose about 70 million yuan.