Chapter 559 Negotiation of Box Office Revenue Sharing

The more meetings Lu Yanhe attended, the more he realized that he knew absolutely nothing about company management.

I didn't understand many of the operating principles, and I also realized how difficult it is to coordinate such matters.

If a sum of money is invested in a certain place, when is it expected to come out, how much will come out, what places will need the money at that time, and what backup plans are there in case the initial investment is lost or not enough is recovered?

Lu Yanhe used to hear the term "broken capital chain" often, but he didn't understand it. Now, after listening to them talk about it again and again, he is slowly beginning to understand it a little.

It's not that we're really out of money, but we're stuck on a certain project and can't get out. We need money for other things, but we can't wait indefinitely if we don't have the money. As a result, many things just fall apart.

Linghe's profits have been quite good in recent years.

However, the initial accumulation is far from enough to achieve the scale and goals we want to reach later.

Unless Lu Yanhe uses his own money to make up for it—Chen Ziyan had warned him from the beginning that he couldn't do that.

This is not entrepreneurship. Once you need to use your own money to subsidize a company, it means that the company is not in a healthy operating state.

Moreover, you can eat as much food as your stomach can handle.

If you fix one end, but then the other end has a problem, should you fix that too? And how much should you fix to fix it?

Inevitably, the topic of financing came up.

After all, this is the fastest way to make money.

However, the reason why Lu Yanhe and Chen Ziyan have not chosen to raise funds is twofold: first, they want to maintain firm control of the company; second, selling some shares now to pay off debts would be too low a value, far exceeding the future value of the company.

I'd rather the company grow at a slower pace and accumulate initial capital myself.

After all, this is not an industry that is about speed or who is faster.

As long as the content projects they create are good, the company will not be eliminated.

In the end, Linghe made a decision.

First, reduce the investment in "Raise the Red Lantern". The production company of "Raise the Red Lantern" is Wang Zhong's company, and the film is not short of investment. It's just that because of Lu Yanhe's relationship, the investment share of the film was given to Lu Yanhe first - but the film is not a box office blockbuster, and after its release, it will not be able to achieve a large profit in the short term based on box office alone.

In this way, some funds can be set aside to increase investment in "Chinese Paladin". Linghe is the copyright holder and one of the producers of this series. Filming took place this year, post-production will take about a year, and it may not air until the second half of next year. But before that, the investment from Northern Lights will arrive, and with advertising sponsorships and other revenue, we will receive our first round of payments.

However, this places high demands on "Roommates". If "Roommates" cannot be broadcast in the second half of the year, and "Roommates" cannot return, then "Chinese Paladin" will have to attract external investment again.

Then Linghe will earn a little less. At this stage, Lu Yanhe's project to film "Chinese Paladin" is 100% profitable and a huge success—even if a movie is popular in the early stages, it still needs box office revenue to make money, but a TV series doesn't. Aurora will foot the bill. Even if the series flops in the end, Linghe has already received its money, and only Aurora will lose money—and Aurora might not even lose money, since the advertising and commercial revenue in the early stages may have already made back the initial investment.

-

Upon hearing this, Lu Yanhe said to Chen Ziyan, "No, Sister Ziyan, these things are too complicated for me. I won't participate in the discussion anymore. It's too exhausting for me. I still have to rehearse and film with everyone during the day, and I also have to squeeze in promotional activities for the two production teams whenever I can. It's too tiring. I'll just find out what the company is going to do after you guys come up with a result."

Chen Ziyan also felt that Lu Yanhe had been under too much strain lately.

She said, "Don't participate in the discussions during the filming of 'Friends.' After you finish filming the show, which is almost finished anyway, you'll have to get involved. You need to understand these things, what direction the company should take, and how it should be arranged. You can say less, but you need to listen more. Putting everything else aside, when you act in the future, playing roles in the workplace, this is about experiencing life for you. You don't always have to see the world from an actor's perspective. Linghe Company is another perspective for you to understand the world."

Chen Ziyan's words always managed to hit the nail on the head for Lu Yanhe.

Lu Yanhe's work and life are indeed going too smoothly now. He rarely encounters any problems or situations that give him a headache.

If he continues to be so closed off, his role in life will truly be reduced to that of an entertainer.

Lu Yanhe nodded, accepting Chen Ziyan's suggestion, and said okay.

-

One week after its release in North America, The Mist grossed over $60 million at the North American box office.

D19 arranged for several of the main actors to appear on popular American television programs to promote "The Mist".

They actually wanted to call Lu Yanhe back to cooperate with the publicity, but this time Lu Yanhe could only refuse.

He was still filming Friends and rehearsals for the Spring Festival Gala had begun, so he didn't have time to go to the United States to promote The Mist.

They only gave him that little bit of pay, and now that the box office is doing so well, they haven't even mentioned giving him a bonus. In Chen Ziyan's words, they have no sincerity in asking him to continue cooperating with the promotion. They never mention the remuneration, as if it were an actor's voluntary work.

While the box office success of "The Mist" greatly benefited Lu Yanhe, this did not justify D19 using Lu Yanhe's labor for free.

As a result, the film still grossed over 20 million dollars at the box office the following weekend, officially surpassing 80 million dollars. With overseas box office revenue, the film's total global box office reached 130 million dollars.

D19 sent out a celebratory message—

Based on this trend, it's a certainty that "The Mist" will gross over $100 million at the North American box office.

With such strong box office performance in theaters, the prices of other copyrights have also risen accordingly.

The Mist is poised to become one of Hollywood's highest-return-on-investment films this year.

At this time, many viewers and fans of "The Mist" suddenly gathered on Twitter and appealed to D19 to make a sequel to "The Mist". They wanted to see the return of the Asian ghost played by Lu Yanhe.

In Europe and America, petitions like these are common—people hoping for sequels to a TV series, or expressing their fondness for a particular character and wishing for spin-off films or movies based on that character. This is not uncommon.

In the United States, developing sequels is perfectly normal, whether for movies or TV series. It's rare for a box office hit not to have a sequel.

It can be said that the "sequel industry" is very mature and well-developed in the United States.

In fact, given the box office success of "The Mist," D19 will definitely be developing a sequel. However, there are some internal disagreements within D19 regarding whether to bring Lu Yanhe back.

Given Lu Yanhe's performance and popularity in this film, coupled with the high praise from media critics, his salary for the sequel will certainly not be low. D19 has not yet started negotiations with Lu Yanhe's side for the sequel because they haven't decided what kind of salary to offer him.

Lu Yanhe is really popular in the United States right now.

Among the actors in "The Mist," none of the other actors combined received as much attention as Lu Yanhe.

One important reason why D19 was unwilling to pay Lu Yanhe a high salary was that they believed Lu Yanhe was able to become the biggest beneficiary of "Mist" because their early publicity strategy provided him with a lot of buzz.

Now, Lu Yanhe has made a name for himself in the United States with "The Mist," thanks in part to their contributions.

However, they should keep these words to themselves. If they were to actually use this to pressure Lu Yanhe's salary, not only would Lu Yanhe definitely disagree, but if word got out, it would even become a laughing stock in the industry.

Of course, there's another important reason why D19 hasn't started negotiations with Lu Yanhe yet. They previously sent Lu Yanhe another script, also a horror/thriller script, but it was politely declined by Lu Yanhe.

In that script, Lu Yanhe was even the lead actor, and the story unfolded from his perspective from beginning to end. However, Lu Yanhe's agent said that Lu Yanhe had just finished filming a horror movie and wanted to act in some other types of films next.

There's nothing we can do about it.

Would Lu Yanhe be willing to return for the sequel to "The Mist"?

Without showing any sincerity, what are the chances of Lu Yanhe returning?

This is the problem they need to face.

Having been in contact with Lu Yanhe for so long, if they initially didn't understand Lu Yanhe's situation well enough, or if their understanding was still stuck at the stage of arrogantly believing that Asian actors were eager to accept Hollywood offers, they would no longer think that way now.

Lu Yanhe's popularity and media attention are not limited to Asia.

For Hollywood stars, Lu Yanhe's fame and influence in Europe and Asia are unmatched by many of them.

Just look at the overseas box office performance of the movie "The Mist"—

Based on the current media reviews and social media buzz surrounding "The Mist" overseas, it's an undeniable fact that most media outlets, film critics, and those commenting on the film online are focusing on Lu Yanhe.

According to data from box office research agencies, especially in Asia, about 30% of moviegoers went to see the film because of Lu Yanhe.

-

That day.

After Lu Yanhe, Li Zhibai, and Yan Liang finished a rehearsal for the Spring Festival Gala, they went to the audience to watch the replay of their performance.

The production team is quite satisfied with the new song that the three of them collaborated on.

Youthful, energetic, and age-appropriate, they are exactly what the audience expects from their trio.

The song itself is also very patriotic, as "Let the whole world speak Chinese" has been a very popular cultural trend in the past two years. By incorporating rap into the song and adding traditional Chinese elements such as tongue twisters, they achieved a patriotic theme while also making it refreshing and catchy.

Given Lu Yanhe's recent global popularity, his performance with Li Zhibai and Yan Liang is a perfect stage performance.

The production team treated the three of them very politely.

On the contrary, some photographers, lighting crews and other technical staff did not treat them very well.

Lu Yanhe was somewhat surprised, but after learning more, he found out that because Lu Yanhe and Yan Liang had been too busy lately, they had missed several rehearsals—which, according to the Spring Festival Gala's rehearsal standards, had actually affected their work.

At an event of this scale, even a small problem can have a significant negative impact on a career. A performance stage is not just a matter for the performers, but also for many staff members behind the scenes.

Here, no matter how famous you are, you're just a label on this stage, a tool to complete a task. Nothing describes their work attitude better than "seeking no merit but avoiding mistakes." As long as they can complete the task smoothly and without problems, it's already a great achievement.

Of course, there is another very important reason.

People who can participate in the Spring Festival Gala program team generally have powerful connections, so it's normal for them to ignore big-name stars like you—you're a star, but I'm not inferior to you.

After the rehearsal, Lu Yanhe went to eat with Li Zhibai and Yan Liang.

"I saw some media reports saying that D19 plans to film a sequel to 'The Mist,' is that true?" Li Zhi asked.

"Is it true?"

"Right? Don't you know they're going to make a sequel?" Li Zhi asked.

Lu Yanhe nodded and said, "They have probably communicated this intention with me, but we haven't had a formal discussion, nor have they formally invited me to return for the sequel."

Li Zhibai: "Holy crap, are they going to replace the actor with someone else?"

"Generally not." Yan Liang was more calm and rational than Li Zhibai. Logically speaking, sequel movies wouldn't do that. The reason a sequel is a sequel is to replicate the success of the first movie, or even to go further. Why would they abandon the box office selling points of the first movie?

Lu Yanhe said, "Sister Ziyan guessed that D19 hadn't decided what kind of contract terms to give me yet."

Li Zhibai: "So, are you planning to act in it?"

"Let's see what direction they plan to take for the sequel. If they have a good idea and a good story, it would be great to make a sequel," Lu Yanhe said. "At least they'll have a character that the general public knows in Europe and America."

Films like "Late Spring" and "Road to Glory" won awards at international film festivals, but most people have never seen them.

Lu Yanhe's commercial purpose in starring in "The Mist" was to increase his fame and expand his influence in Europe and America.

He has never shied away from this point.

"Actually, probably because 'The Mist' did well at the box office, a foreign horror film also came to me," Yan Liang suddenly said.

Li Zhibai exclaimed "Oh!" and asked, "Is it also from Hollywood?"

“No, it was a script provided by a British film company,” Yan Liang said. “But after reading the script, it’s just a very ordinary horror story, not much different from the ones we’ve seen before.”

"So you're not planning to accept it?"

“Zhou Ping’an wants me to take the role.” Yan Liang said, glancing at Lu Yanhe, and also speaking frankly, “Zhou Ping’an thinks that since Yanhe has become popular in Hollywood, he will definitely receive many scripts and roles. He can’t handle so many roles on his own. I can ride on Yanhe’s coattails. So, with the same horror movie and the same Asian actor, let the West know that there is a Chinese actor like me who is about your age, and many opportunities will come to me.”

Lu Yanhe rolled his eyes and said, "Zhou Ping'an is a leopard that can't change its spots. He's spewing filth all over the place. You don't need to associate yourself with me at all. Friends and Gold Rush have already brought you to the attention of many European and American film and television companies."

Yan Liang: "But I think what he said makes sense, so I'm thinking about it."

Li Zhi asked, "Was the main character in that horror movie that was looking for you?"

“Yes.” Yan Liang smiled. “However, my character is a mysterious ghost hunter from the East, not a ghost.”

"That sounds really exciting."

"It's actually a police and gangster film with some horror and thriller elements. You can think of it as the police catching criminals," Yan Liang said. "It feels like the script is completely in the pattern of a police and gangster film."

"Hahaha." Li Zhibai laughed.

Lu Yanhe: "What about the director? If the director is good, even though the story is old wine in new bottles, it can still be filmed well."

"Don't even mention it. This director's previous works were also mediocre," Yan Liang said. "If they were any better, I wouldn't be so hesitant. I'm not the kind of actor who only takes on roles with exceptionally good scripts; I'm not at that level yet. Besides, this movie probably won't be released in theaters; it'll go straight to streaming."

"ah?"

"That's what they say, but it's not finalized yet," Yan Liang said. "This is another reason for my hesitation. Streaming movies can be filmed painstakingly for two or three months, only to fizzle out in less than a week. I haven't seen any streaming movies generate much discussion or buzz, and their influence is generally quite limited."

Lu Yanhe: "That is indeed the case."

Li Zhibai: "If you refuse to accept it, will Zhou Ping'an force you to?"

"I don't think so now," Yan Liang admitted. "My hesitation isn't because he insists I take the job, but because I'm afraid of missing an opportunity."

“The roles you’re currently taking are mainly TV series. However, given the current state of the entertainment industry, if you want to advance further, you either need to create an even bigger hit TV series or you need to go into the film industry,” Li Zhibai said. “Film actors are considered superior to TV series actors—although we don’t all agree with that, that’s the prevailing view in the industry.”

Yan Liang: "Yes."

He let out a soft, quiet sigh.

Lu Yanhe said, "It's okay. I think since you're hesitating, it means there's something about this project that appeals to you. I think you can give it a try. Even if it fails, it won't affect you much. When I took on 'The Mist,' I was actually nervous. After all, it's a horror film, and everyone says it's rather low-brow, crude, and simple. But later I thought, at worst, the box office performance won't be good, and I can afford to fail. You're the same. You have two series, 'The Gold Rush' and 'Friends,' so you don't have to worry about failure for the next few years."

Li Zhibai nodded as well.

“Zhou Ping’an may not be a good person, but he does have a good eye for choosing roles. If he says a role is worth taking, then there must be something worth taking.”

Yan Liang glanced at Li Zhibai.

Are you bringing up something I told you before?

Li Zhibai: "You said it yourself, learn from others' strengths to make up for your own weaknesses. Since Zhou Ping'an is so good at picking scripts, you can trust his judgment."

Lu Yanhe shook his head in disbelief and sighed, "I never thought I would hear Li Zhibai say such things one day."

Yan Liang also said, "Who isn't? It's unbelievable."

Li Zhibai: "...That's enough, you two."

-

Since the two episodes featuring Lee Ji-baek's guest appearance, the average viewership rating of "Friends" has consistently remained above 3%, especially as students begin their winter break, the ratings have remained consistently high.

This is especially true for online streaming.

Both Yuehu TV and Aurora Video are very satisfied with the success of this drama.

Not to mention Maxine.

After The Mist grossed over $100 million in North America and over $170 million worldwide, Maxine spent a high price to snatch the streaming rights from several streaming competitors. D19 finally made up its mind and said it was willing to offer Lu Yanhe a salary of six million dollars for the sequel.

Because during D19's negotiations with Maxine, they sensed that their interest in Lu Yanhe was actually greater than in the film "Misty".

A six million dollar salary is a significant increase compared to Lu Yanhe's one million dollar salary for his first film. Converted to RMB, that's over forty million yuan.

Lu Yanhe has never received this amount of payment for acting in movies in the country.

D19 believes he has been generous enough.

However, Chen Ziyan was not satisfied. She was not dissatisfied with the number itself, but rather with the fact that Lu Yanhe was not entitled to a share of the box office revenue.

However, from a market perspective, Lu Yanhe, an actor who has just arrived in Hollywood to make movies, is not yet at the stage where he can negotiate box office revenue sharing, even if his first film has such a good box office performance.

This kind of operation is rare in the industry.

Chen Ziyan's attitude, however, was very clear.

“The development of the sequel is not based on how popular the movie ‘The Mist’ is. In fact, we all know that the sequel can be developed because everyone loves the character of the Asian ghost played by Yan He so much,” Chen Ziyan said. “This sequel will definitely be developed around the character of Yan He, and the selling point is also this character, Yan He. In other words, without Yan He, this sequel is not valid. Under such circumstances, I think Yan He deserves to enjoy the box office revenue sharing. This is what Yan He deserves.”

The person in charge of negotiating with Chen Ziyan from D19 looked very grim.

Because he thought six million dollars was already high enough, Chen Ziyan was still not satisfied, which was greed.

Chen Ziyan didn't care whether his expression was unpleasant or not, nor did she care whether he was angry or not.

She simply stated her thoughts; the rest is up to D19 to discuss in their meeting.

(End of this chapter)