Chapter 288: Chapter 288: Buyout Films
Hawaii, a state in the central Pacific region of the United States, had a geographically advantageous location, beautiful environment, and significant political, economic, and military value.
Honolulu, the capital of Hawaii, was on Oahu, the third largest island of the Hawaiian Islands. After Charles Capet picked up Gao Yuanyuan at Honolulu International Airport, he took her to the Hyatt Regency Waikiki Beach Resort and Spa.
Honolulu was already located on the southern side of Oahu, and Waikiki Beach was the most famous beach in all of Hawaii.
"It's really beautiful!" Gao Yuanyuan said, wearing sunglasses and a silk long dress. She felt the warm seawater and sunlight with her bare feet on the sand.
Charles wore beach shorts, a floral shirt, and was kicking sand in the water with bare feet. He looked up through his sunglasses at the glaring sun.
"This place is indeed nice. No wonder there are so many people here this season," Charles said, shaking his head.
"Next time, let's buy a beach house on Kauai Island with a private beach, and get a yacht to dock here!"
Gao Yuanyuan smiled and shook Charles' arm. "This is already very nice, more interesting than the beach in Cannes."
"You Americans really like a bronze tan, don't you? Especially rich people. I hear you guys are often on vacation, enjoying sunbathing to turn your skin wheat-colored?"
Gao Yuanyuan looked at Charles and touched him a few times. "You're still a bit pale!"
"Me? I used to live in East Los Angeles in a low-income community. I didn't even go to college. I had nothing to do with rich people," Charles laughed.
"It was only after 2001 that I started making money when I got into the movie production business!"
"Besides, I don't like being too dark anyway."
Gao Yuanyuan nodded. "The Oscars are happening in a few days, aren't you going to attend?"
"No big deal, I can attend the Oscars anytime," Charles shook his head.
"Capet Pictures' The Devil Wears Prada is going to be released in China at the end of the month."
"The Devil Wears Prada is being introduced to China as an imported revenue-sharing film. So far, I've only had one of my films, Mr. & Mrs. Smith, imported as a revenue-sharing film previously!"
Over the years, Capet Pictures had only managed to get films like Mr. & Mrs. Smith, The Da Vinci Code, and The Devil Wears Prada introduced to China as revenue-sharing films.
The Departed and 300 couldn't pass the censorship, and other films could only be introduced as buyout films or released through DVDs.
Gao Yuanyuan nodded and smiled: "I thought The Pursuit of Happiness could be introduced as a revenue-sharing film, but it couldn't either."
Charles shrugged. "China only allows 20 revenue-sharing films a year, and only 14 of those can be from the U.S.; the other six have to be non-U.S. films."
"Luckily, this year, Capet Pictures' two special effects blockbusters, Transformers and Iron Man, passed your film bureau's scrutiny, so they can be introduced as revenue-sharing films!"
But Charles didn't mind much; after all, even with the revenue-sharing model, studios could only get 13% of the box office revenue from China.
"There's no way around it. Currently, only China Film Group and Huaxia Film Distribution have the rights for imported films, and you need their approval for both revenue-sharing and buyout films," Gao Yuanyuan understood these things well.
Revenue-sharing films were distributed by China Film Group or Huaxia Film Distribution in China;
Buyout films, on the other hand, were bought outright by private enterprises for the domestic rights and then distributed once approved by China Film Group or Huaxia Film Distribution, who applied for quotas and arranged release dates with the film bureau.
Charles's eyes lit up as he looked at Gao Yuanyuan and suggested with a smile: "Are there still not many companies in China doing the buyout film business?"
Gao Yuanyuan nodded, "Not many. Last year, Duplex, starring Ben Stiller and Drew Barrymore, was released and grossed 13 million yuan. It went through the buyout route."
Duplex, wasn't that a 2003 American movie?
As for buyout films, they were very cheap right now, costing between $50k and $150k each.
They were bought in batches, hence the term 'buyout films.'
Charles hugged the girl's waist and smiled, "Do you want to make money? Just get into the buyout film business. With me around, you'll definitely make some money!"
"Me?" Gao Yuanyuan was definitely tempted.
However, buyout films needed a keen eye, money for purchasing rights, and funds for duplication and translation. Since the release schedule was determined by the film bureau, you never knew when the movie would be released. Waiting six months or a year was common.
And it's also about quotas. Currently, there were only 30 to 40 slots for buyout films, and you had to consider passing the censorship too. If you failed, you'd lose the money.
"Come on, let's go back to the hotel and study this," Charles remembered that the peak of buyout films was when The Expendables was bought for $500k and grossed hundreds of millions of yuan in China.
That was when the prices of buyout films skyrocketed due to increased competition and the booming Chinese film market. Later on, even production companies would demand revenue-sharing minimums for buyout films!
Gao Yuanyuan, interested, hurried back to the hotel with Charles.
"It should be profitable. For example, last year's Duplex grossed 13 million yuan in China. The buying company spent 600k yuan on the film rights, and another 2 million yuan on customs, translation, duplication, and distribution," Charles calculated for Gao Yuanyuan.
"With the buyout distribution model, the buying company could get about 30% of the box office revenue, around 4 million yuan. After deducting costs, they made over 1 million yuan profit!"
"This investment seems okay, but the film quota and censorship need connections, and the release schedule is very passive. If it ends up with a naked release, that would be a disaster," Gao Yuanyuan was still worried. "And if the film only runs for a day, that would be terrible!"
"Don't worry. We'll spend some money on promotion when the time comes," Charles smiled and pulled the girl into his arms. "I'll give you advice on which films to buy. First, buy one or two films to test the waters. Then find partners to start a film company. I'll have Dawn Investments invest in your film company."
Charles said, stroking the girl's thigh. Gao Yuanyuan leaned in close and playfully whispered in his ear, "Dawn Investments invested in a Call for Love. Should I partner with Lin Chi-ling?"
"Mmm," Charles kissed the girl passionately, his hands wandering under her dress...
*****
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