blueteamnovel Chapter 50: So that's how it is
Chapter 50: So that's how it is
Liu Yu had breakfast at the hotel restaurant, and then went to the airport to see Li Xue off to meet them.
They all left Berlin today. Li Xuejian returned to Beijing, Song Dandan returned to Beijing, Liu Yifei and Liu Xiaoli returned to Xiangshan, and Luo Jin also returned to Beijing.
The itineraries are different, but the flights are all in the morning.
Liu Yu stood in the waiting hall, seeing off each passenger one by one.
As Li Xuejian left, she patted Liu Yu on the shoulder. "Xiao Liu, things in Berlin are done. Go back and get some rest. Don't rush into starting a new project; take some time to process it."
Liu Yifei and Liu Xiaoli were the last to leave.
Liu Yifei wore a white sweatshirt and a baseball cap today, without makeup, and looked like an ordinary college student.
Liu Xiaoli stood to the side, holding a bag containing souvenirs she had bought in Berlin.
"Director Liu, thank you." Liu Yifei's tone was very serious, not just polite.
"Why are you being so polite? It's because you acted so well. I just set up the camera in the right place."
Liu Yifei smiled too, a very soft smile.
The two and their assistant walked toward the boarding gate. Liu Yifei took a few steps, turned back to look at Liu Yu, and waved.
Liu Yu waved back, then turned around and followed Liu Xiaoli into the boarding gate.
......
Back at the hotel, Zhong Lifang was already waiting for him in the coffee shop.
"The film distributors will arrive at ten o'clock. People from China Film Group will also be here; President Han said he'll help you with the selection." She opened her notebook, which was filled with a densely packed schedule.
Liu Yu sat down and ordered a hot chocolate.
"Sister Chung, how many deals do you think we can close today?"
Zhong Lifang thought for a moment, "At least three. European, North American, and Asian. Do you have a price range in mind?"
Liu Yu leaned back in his chair. He had a question he used to have: why did those older generation directors keep making films even though they lost money every time they made one? Now he knew the reason.
Others come here specifically for the film festival. If they can get nominated and win an award, the copyright can be sold for at least several times the cost, saving on marketing and distribution costs and theater revenue sharing. It's pure profit, and they don't care whether the domestic box office can break even.
The production cost of "Hearing Girl" was less than one million US dollars, and now it has a Silver Bear Award. The copyright price will easily increase several times over.
At 10 a.m., the film distributors began to arrive.
People from China Film Group also came, including a deputy manager surnamed Zhang, who was in his forties and spoke and acted with impeccable discretion.
Although Han Sanping did not attend in person, he gave prior notice, instructing Deputy Manager Zhang to provide full assistance to Liu Yu.
With representatives from China Film Group present, the negotiations proceeded much more quickly.
China Film Group is a veteran in international distribution. They know exactly which terms are acceptable, which are not, where to compromise, and where they cannot back down.
European distributors still offered the highest bids; their eyes lit up when they saw the Silver Bear Award.
They saw the potential of "Hearing Girl" in the European market more clearly than Liu Yu did.
These stories about family, kinship, and dreams transcend cultural barriers, and European audiences are drawn to them.
With the added prestige of the Silver Bear Award, the box office performance is sure to be strong.
After several rounds of bargaining, the price of the European copyright rose from over two million US dollars to four million seven hundred thousand.
Liu Yu still remembers when they finished filming "A Moment to Remember," Yu Dong said, "I hope this film can be sold overseas."
Back then, he didn't understand what overseas copyrights were all about; now he does.
A trophy is a gold mine.
Negotiations in the North American market were much more intense than in Europe.
David represented the North American branch of Former Wave Pictures in the negotiations. His strategy was clear: no outright sale, only revenue sharing.
North American film distributors objected; they wanted full rights and didn't want to share the profits with others.
After nearly two hours of negotiations, both sides compromised, and the North American rights were bought out for $2.8 million, with a five-year release period. If the film is not released within five years, the rights will automatically revert to the original rights.
This clause was insisted upon by Liu Yu, who didn't want his films to be bought and then gather dust in the warehouse.
Negotiations in the Asian market went the most smoothly.
Japanese, South Korean, and Southeast Asian film distributors didn't haggle much because they knew that a Chinese film that won the Silver Bear at the Berlin International Film Festival would have appeal in their markets.
Japan and South Korea, in particular, have a higher acceptance of Chinese art films than Europe and the United States.
The total value of the Asian copyrights is $1.5 million.
In other regions, including South America, Africa, and the Middle East, the total sales amounted to 800,000.
After a day of negotiations, all copyrights outside of mainland China were finalized, with a total price of US$9.3 million.
When Liu Yu signed his name on the contract, it was $9.3 million, which, according to the real-time exchange rate, was equivalent to more than 76 million yuan.
The cost was less than seven million, but the copyright alone sold for more than seventy million, a tenfold increase.
This doesn't even include box office revenue in mainland China, nor does it include remake rights.
Speaking of remake rights, several film studios in North America and Europe have also expressed interest in them.
A European production company offered $1.8 million to buy the European remake rights.
An independent production company in North America offered $1.4 million to buy the North American remake rights.
The two contracts totaled $3.2 million. After signing the contracts, Liu Yu leaned back in his chair, unable to suppress a smile.
He recalled that when he was filming "A Moment to Remember" three years ago, he had to beg for help everywhere to make a budget of seven million, and it took him a long time to negotiate a sponsorship of fifty thousand from 7-Eleven.
The copyright fee for one film now is equivalent to the box office revenue of several films back then.
It's not that he's changed, it's that the track has changed.
Commercial films rely on box office success, while art-house films rely on copyright. Both paths can be profitable, but the methods are completely different.
......
Han Sanping invited Liu Yu to dinner that evening at a German restaurant near the hotel.
Han Sanping picked up a piece of pork knuckle, took a sip of beer, leaned back in his chair, and looked at Liu Yu.
"Liu Yu, I really should have invested more back then. One million is far too little." He made no attempt to hide the fervor in his eyes. "Your film, with a budget of less than one million US dollars, sold for nearly ten million in rights, not even counting remake rights. Ten times the profit, plus a Silver Bear Award. Who wouldn't be envious of that?"
Liu Yu smiled and said, "Mr. Han is too kind. Back then, no one dared to imagine that it would help me win Best Director. I was hoping to get an encouragement award."
He was telling the truth. When Hearing Girl was submitted to Berlin, he was just hoping it would be shortlisted. But when the program's rating came out, it was only 3.6, and he started to have a little bit of hope.
He actually won Best Director in the end, and even he felt it was unreal.
Han Sanping put down his fork, his expression turning serious.
"We'll get the screening permit sorted out as soon as we get back. Your award will help with that. I'll put in a good word with the Film Bureau for you." He paused, then changed the subject, "Have you heard about the box office performance of 'Peacock'?"
Liu Yu nodded. He had read the news that "Peacock" had performed poorly at the domestic box office. It was released on the 18th, and the box office on the first day was less than 500,000 yuan. The second and third days were similar.
Even if the film wins the Grand Jury Prize, it won't save the box office; at most, it will only make 700,000 to 800,000 a day.
Domestic box office revenue is no longer important for "Peacock". Its copyright has already been negotiated, and making five times the profit by selling the copyright is not a problem at all.
Liu Yu understood what Han Sanping meant: art films have a very low box office ceiling in China, so don't have too high expectations.
Sell as much as you can; selling more would be a pleasant surprise, and selling less would just break even.
"Mr. Han, don't worry, I know what I'm doing."
Han Sanping looked at him and said, "Liu Yu, you are the least worrisome young person I have ever met. You know when to advance, when to retreat, when to speak, and when to shut up. This skill is not learned, it is innate."
Han Sanping downed his beer. "But even innate talent needs to be honed. You still need to pay attention to the domestic box office. I'm not asking you to make commercial films, but to learn how to sell art films to a wider domestic audience. You've seen the lesson of 'Peacock,' don't make the same mistake."
Liu Yu kept Han Sanping's words in mind. He raised his beer glass and toasted Han Sanping.
"Mr. Han, thank you for your guidance. I've got it in mind."