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Wednesday, July 28, 2021

The basic rules for box office distribution in China's film(MOVIES) industry are as follows:

The basic rules for box office distribution in China's film(MOVIES) industry are as follows:


① All box office receipts of the film are included in the electronic ticketing system, and the data are uniformly summarized to the China film industry special fund office (hereinafter referred to as the special fund office). The statistical data of the office shall be used as the basis for the division of accounts by all parties.


② All film revenues shall first pay a special business tax of 3.3% and a special fund of 5% for the film industry. The remaining 91.7% was identified as the "separable box office" of a film.


③ In the separable ticket room, 57% of the distribution agency fee is reserved for cinemas and cinemas, and 1-3% of the distribution agency fee is reserved for China Film Digital. The remaining 40-42% is attributed to film producers and distributors (40% in most cases).


④ The distributor of the film will charge 5-15% of the box office belonging to the producer and distributor as the distribution agency fee. That is, 2-6% of the divisible box office as the issuance agency fee.


⑤ In many cases, the distributor prepays the publicity and distribution expenses of the film. At this time, the distributor will charge 12-20% of the agency distribution fee. If the issuer promises to guarantee the minimum issuance, buy out the issuance, prepay the production cost, etc., it will charge a higher issuance agency fee.


⑥ Some films are at a competitive disadvantage in the same schedule. For the purpose of increasing the number of film screenings, box office rebates are promised to cinemas and cinemas. Rebate generally accounts for 3-5% of the divisible box office.


⑦ The formula of box office collection recovered by the producer is: 1x (1-0.033-0.05) x40%x (1-0.1) = 0.33, which is the division of the producer in general.


Taking the above situation as an example, for a film with a final box office of 100 million, the box office recovery is about 33 million.


US $10 million, that is, the cost is 60 million yuan, and the target box office is more than 200 million. The reasonable publicity and distribution cost for film publicity and distribution in China is about 10% of the target box office. That is, about 20 million yuan will be used as publicity expenses. The total cost is 80 million yuan. If other recovery channels are not considered, it really takes 240 million yuan to recover the cost according to the above algorithm.

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