Starting from a Fake University
Chapter 535 - 325: Drought dies of drought, flood dies of flood (a 7000-word - please subscribe)_2

Chapter 535: Chapter 325: Drought dies of drought, flood dies of flood (a 7000-word Chapter please subscribe)_2

It’s much more than several millions now.

Because the total box office is 2.573 billion yuan!

As "Super Combat Team" extended its key filing for one more month, Ding Yue did not want to wait another month, and then it would take several more months to settle the box office before he could get his share of the box office revenue. If he waited that long to distribute the profit bonus to the employees of Feiyue Animation, it would seem too late.

So, Ding Yue had his secretary, Wen Ruohan, work out the figures with the finance department. He then took out the 3% bonus from the money he currently had to reward the Feiyue Animation employees for their enduring nights of hard work and ceaseless effort.

"With a box office of 2.573 billion yuan, how much profit can we make?"

Ding Yue lifted his head, chewing a fragrant bun, and asked.

Ding Yue had already made a rough calculation; certainly, it would be at least one billion yuan.

"I made a quick calculation last time, and I think we’d have a revenue of at least 1.3 billion yuan," he mentioned, not waiting for Wen Ruohan to present the data.

"Principal Ding, we first need to deduct a 5% movie fund from the 2.573 billion yuan box office, followed by a 3.3% tax."

Wen Ruohan responded.

Upon hearing this, Ding Yue could not help but feel a pang of pain.

The five percent movie fund, plus the 3.3 percent tax, comes to a total deduction of 8.3 percent.

For a box office of 2.573 billion yuan, this was no small amount of money.

"2.573 billion yuan multiplied by 91.7%, leaves us roughly 2.359 billion yuan."

Wen Ruohan continued, "Of this, according to our contract with the cinema chains and theaters, their share will be 43%!"

"That high!"

Upon hearing this, Ding Yue couldn’t help but gasp.

It seems his estimate that the income was roughly equal to 60% of the total box office was calculated a bit high.

The various cinema funds, taxes, and cuts for cinema and theater distributors already whittled away a significant amount.

"Principal Ding, about the high proportion of the cinema and theater distribution, it is because we and the cinema chains and large theater companies do not have long-term partnerships. We are also the distributor, which makes this our first time sharing the accounts. This is why the cinema and theater distribution reached such a high ratio of 43%."

Wen Ruohan explained to Principal Ding why the sharing ratio for cinema chains and theaters was so high.

Normally, the cinema and theater share of a movie’s box office revenue is between 38% and 43%.

The exact amount depends on the agreement between the distributors, cinemas, and theaters.

If the distributor has relationships in the industry circles, the cinema and theater share would be less than 40 percent.

For the movie "Super Combat Team" by Mist City Arts and Science University, the distributor was Ding Yue’s Feiyue Group. But since Feiyue Group had no prior experience in the film industry and no connections with any cinema chains or theaters, the box office share of "Super Combat Team" for theater chains and theaters would be 43%.

Ding Yue did a simple calculation. This would be worth about one billion yuan, wouldn’t it?

"If the theaters are getting a 43% cut, that would be approximately 1.014 billion yuan," Wen Ruohan continued, "From the remaining 2.359 billion yuan, once we deduct this 1.014 billion yuan, the rest is ours. Since we, Feiyue Media, are the distributor, we don’t have to deduct the distribution fee of around 5-15%. As long as we deduct the production and distribution costs, the remaining amount would be pure profit."

"What’s the final net profit?"

Ding Yue wondered after all the deductions, whether there would be any of the initial 1.3 billion yuan left.

"After subtracting the cost and the distribution fee from our earnings, we’re left with a net profit of 1.263 billion yuan," Wen Ruohan said excitedly. "Principal Ding, we’ve made over a billion from just one movie. It’s simply incredible!"

An income of over one billion was astronomical to Wen Ruohan. Probably only a bold and fearless individual like Principal Ding could earn such colossal money!

"1.263 billion..."

Although this figure was somewhat less than Ding Yue’s previous estimate, it was still quite impressive.

Just imagine.

In this parallel world, which company could produce a film and net over one billion yuan?

If the investors and directors of films released simultaneously with "Super Combat Team" knew that Ding Yue had made over one billion yuan from it, they would likely be green with envy.

What’s more, this one billion yuan box office earnings ended up with Ding Yue’s Feiyue Group, with no need to share, because the investment was made entirely by Ding Yue.

Unlike other movies, where the box office earnings of several hundreds of millions must be divided among various investors. After such rounds of distribution, what the investors end up getting is considerably less.

Take "Chronicles of Demon Sealing", which was released at the same time as "Super Combat Team" as an example. This fantasy film also exceeded a box office of 2 billion yuan.

After deducting all kinds of shares, funds, taxes, and distribution fees, the production side ended up with approximately 700 million yuan.

This 700 million yuan then has to be divided with investors according to their proportions. After the split, it would be very good for an investor to earn 100 million yuan.

Generally, a movie with an investment of hundreds of millions of yuan does not have just one investor but many investors.

But "Super Combat Team" had only one investor, Ding Yue.

All the production costs were borne by Ding Yue alone. At that time, it was a few tens of millions. But tens of millions aren’t much for Ding Yue. He was confident that he could at least recoup the cost, which is why he was willing to spend tens of millions to produce "Super Combat Team".