Chapter 138 Ticket Subsidy
"Mr. Yang, what do you think about ticket subsidies?" Wang Xing then explained to Yang Hao in detail what ticket subsidies are and how to use layman's terms, ticket subsidies require producers to pay distribution channels to sell movie tickets at low prices in the hope of increasing the number of moviegoers and gaining word of mouth.
"Mr. Wang, I personally absolutely support ticket subsidies. Ticket subsidies are definitely the best means of promoting movies. Low-priced tickets can also help increase the number of moviegoers, cultivate movie-watching habits, and have a positive impact on the development of the entire Chinese film industry," Yang Hao said, specifically picking out nice things to say.
It is not against my will to say this. From 2014 to 2018, the ticket subsidy policy has indeed greatly promoted the number of moviegoers in China and cultivated the movie-watching habit of more people.
Some people who originally didn't want to go to the cinema to watch a movie saw that the movie ticket price was only yuan, which was to yuan cheaper than the normal ticket price.
With such a strong contrast, wouldn’t it be a loss of twenty or thirty dollars if you don’t go to see a movie?
In recent years, movie box office records have repeatedly broken new highs, which is directly related to the ticket subsidy policy.
"Haha, I didn't expect that Mr. Yang's understanding of ticket subsidies is exactly the same as mine."
Wang Xing was also very excited when he heard what Yang Hao said. Although he wanted to get Yang Hao to invest because of his achievements in the film industry, he did not expect that Yang Hao's views on ticket subsidies were the same as his. It really is true that great minds think alike.
Regarding the ticket subsidy, Wang Xing contacted several film producers, but when they heard that they had to pay 10 million or even 20 million yuan in ticket subsidies, they all shook their heads and refused.
After all, ticket subsidy is a new thing, and the amount required is so huge, it is understandable that people are not willing to be the first to try it.
But Yang Hao didn't expect that the other party agreed before he had even tried to persuade him, and he was so supportive of the ticket subsidy that he truly was a close friend.
Seeing that Wang Xing treated him as a confidant, Yang Hao was secretly happy in his heart. Who in the future would not know about your ticket subsidy methods?
"Then, Mr. Yang, how much do you plan to invest in ticket subsidies for "Assassins 1"? "Wang Xing asked with an expectant smile.
"How about 10 million?" Yang Hao had some thoughts about how much the ticket subsidy would be.
The ticket subsidy started with the foreign blockbuster "Transformers 4".
However, the ticket subsidy for domestic films was the first shot fired by "My Lucky Star". The film company and Maoyan each subsidized 1000 million yuan towards the film's publicity and promotion costs.
This was also the first time that domestic film and television production companies saw the power of ticket subsidies. It was so simple and crude that there was no logic to it at all.
During the pre-sale period, the pre-sale box office of "My Lucky Star" exceeded 6 million yuan. The box office on the first day after its release was as high as million yuan, and the box office in the first week exceeded million yuan. The final box office was billion yuan.
This box office result directly shocked many people in the industry.
From then on, ticket subsidies entered a crazy era. The ticket subsidies for "The Man from Macau 2" were 3000 million, "Dragon Blade" was 6000 million, and "Lost in Hong Kong" was close to 1 million. At that time, the ticket price was as low as yuan.
The ticket subsidies for subsequent movies became more and more generous, and the effect of ticket subsidies in boosting box office sales was surprisingly good. Cinemas also attached great importance to the amount of ticket subsidies. The higher the ticket subsidies, the higher the initial film budget.
This has led to a vicious cycle. Without ticket subsidies, no films will be made, and major film companies can only compete to increase the ticket subsidy amount.
In this environment, low-budget films that cannot afford ticket subsidies have no room to survive.
In the end, it was too much. On October 2018, 10, the relevant departments directly issued a document to cancel movie ticket subsidies and prohibit vicious competition.
"In the previous life, the producer of "The Heart of Fury" invested 10 million in ticket subsidies, so it shouldn't be a small amount if I also invest 10 million," Yang Hao thought silently. "Okay! Mr. Yang, you invest 10 million in ticket subsidies, and Maoyan will also invest 10 million in ticket subsidies." When Wang Xing heard Yang Hao say the number of 10 million, his smile became even bigger, and he said directly with a big hand.
After hearing Wang Xing's promise, Yang Hao had only one thought in his mind, "Is this considered as me getting the first shot at snatching the ticket subsidy for "My Lucky Star"? "
With Yang Hao's deliberate flattery, Yang Hao and Wang Xing had a very good conversation about the ticket subsidy.
"What about the matter of investing in Maoyan? What do you think, Mr. Wang?" While the two were chatting happily, Yang Hao brought up the purpose of this trip.
Wang Xing had originally taken a fancy to Yang Hao's achievements in the film industry and wanted to get him to invest. As the two talked, they reached a surprisingly unified view on ticket subsidies, and they could be called close friends.
This made Wang Xing more willing to have Yang Hao invest. He was not only a business partner, but also a like-minded confidant. Such a person was hard to find.
So Wang Xing said: "Let our subordinates discuss the specific price, and we just need to agree on the general framework of the cooperation."
Yang Hao nodded, agreeing with what Wang Xing said.
Yang Hao left Meituan's headquarters alone, while Xie Yongjun stayed there and continued to discuss the details of the investment with the other party. Xie Yongjun had already handled the investment in ByteDance, so Yang Hao was quite confident in his abilities.
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The ticket subsidy of 1 million is considered as the publicity and promotion expenses. The additional investment of million in "Assassin's Blade " came in handy at this moment. However, this is a big deal. Although Wang Xing was verbally agreed to it just now, he still needs to inform Lu Yang and China Film.
In Lu Yang's room at the hotel where the crew of "Knife of the Assassin 2" is working, Yang Hao will have a general discussion with Wang Xing about the ticket subsidy at the Meituan headquarters in the afternoon, and he will tell his senior brother Lu Yang about it.
"Is the ticket subsidy reliable?" Faced with this new thing called ticket subsidy, Lu Yang was unsure.
"Don't worry, if we lose the 1000 million yuan in ticket subsidies, I will bear the consequences." After explaining for a long time without making Lu Yang understand, Yang Hao could only use his ultimate move.
As for whether the ticket subsidy would result in a loss? Yang Hao had never thought of this possibility. The first movie to take the plunge, "My Lucky Star", had a box office of more than 1 billion yuan.
"Knife of the Assassin 1" has a good reputation. If it uses ticket subsidies to get high screening schedules and spreads word of mouth, it is possible that the box office will create miracles.
No one knew what benefits Wang Xing promised China Film Group, but the next day, news came from China Film Group that the promotion and marketing of "Knife of the Assassin 1" and "Knife of the Assassin 2" were handed over to Maoyan.
The China Film Corporation also allowed the 1 million yuan of publicity funds reserved for "Knife of the Assassin " to be used as ticket subsidies for publicity and promotion.
The negotiations on acquiring a stake in Maoyan also went smoothly.
Meituan decided to separate Maoyan from Meituan and operate it independently.
In the end, Maoyan was valued at 50 million RMB, Meituan invested an additional 20 million RMB, and Yang Hao's investment company invested 30 million RMB.
In the newly established company, Yang Hao holds a 30% stake, and has the right to priority financing in the next round of financing.
After the contract was signed, Yang Hao Investment Company transferred the 30 million RMB that had been prepared into Maoyan Company's account.
Only at this point did Yang Hao breathe a sigh of relief. As long as he waited for the next round of financing, he might be able to follow the example of Guangxian and take controlling stake in Maoyan, thus gaining strong publicity and promotion capabilities.
(End of this chapter)
