The box office of Ne Zha 2: The Demon Boy Makes Havoc in the Sea is a huge success. Let's talk about the profit-sharing rules and legal risks of Chinese movie box office.
2025 02/12
Recently,the movie market has been extremely lively.Ne Zha 2:The Demon Boy Makes Havoc in the Sea(hereinafter referred to as Ne Zha 2)has taken the lead,with its box office soaring all the way,becoming the focus of heated discussion.As of February 12th,its box office(including pre-sales)has exceeded 9.2 billion yuan and has ranked 24th on the global box office chart of film history.While people are proud of this domestic animation,they are also deeply interested in the profit-sharing rules and legal issues behind the movie box office.How much money can Director Jiaozi of Ne Zha 2 get?
I.Basic Rules of Box Office Profit Sharing
In China,there is a set of established procedures and rules for movie box office profit sharing.First,5%of the total box office is deducted as the special fund for film development and 3.3%as business tax.These two parts of fees are of great significance.The special fund for film development is like a"booster"for the development of the film industry,and the funds are used for specific purposes,such as supporting all aspects of the film industry,including encouraging artistic innovation,cultivating film talents,and supporting the creation of small and medium-budget films.The business tax is a basic requirement for paying taxes according to law,and it is an obligation that every legally operating industry must fulfill,contributing to the national finance and supporting the development of public undertakings.After deducting this part,the remaining approximately 91.7%is the"profit-sharing box office".
Among the profit-sharing box office,cinemas and theater chains account for the largest share,usually taking 57%,generally 50%for cinemas and 7%for theater chains.After all,cinemas provide the screening venues,and theater chains are responsible for arranging the screening schedules of films.They are directly facing the audience and play a key role in the generation of box office.It can be said that without the venue support of cinemas and the screening arrangements of theater chains,audiences cannot watch movies smoothly,and there will be no box office.
Of course,for some movies with special circumstances,the 57%share taken by cinemas and theater chains may change.For example,for some movies with strong market appeal,the producers and distributors are in a dominant position in the negotiation and may strive for a more favorable profit-sharing ratio,resulting in a lower share for cinemas and theater chains.In actual operation,during the preparation and distribution stages of each movie,the producers,distributors,theater chains,and cinemas will specifically agree on the profit-sharing ratio through contracts according to various factors such as the movie's production cost,cast,subject matter popularity,and market expectations,generally within the range of 50%-57%.This reflects the flexibility and fairness of the market economy.All parties negotiate and determine a reasonable profit-sharing method according to the actual situation of the movie,which can not only protect the interests of all parties but also promote the healthy competition in the movie market.
The producers and distributors jointly divide the remaining 43%.However,this 43%still needs to deduct the distribution agency fee(generally 1%-3%of the box office)charged by China Film Digital Media and the publicity and distribution costs,which include the publicity and promotion expenses of the movie and various expenses during the distribution process.Only after deducting these expenses can the final actual income of the producers(investors)be obtained.
II.Box Office Profit Sharing of Ne Zha 2
The great success of Ne Zha 2 has brought rich returns to all parties.According to the box office profit-sharing rules,Enlight Media,as the producer and distributor,will obtain considerable income from the 43%profit-sharing box office after deducting various expenses.Suppose the final box office of Ne Zha 2 reaches 10 billion yuan(just for the convenience of calculation).After deducting 5%of the special fund for film development(500 million yuan)and 3.3%of the business tax(330 million yuan),the profit-sharing box office is approximately 9.17 billion yuan.Cinemas and theater chains will get about 5.227 billion yuan according to the 57%sharing ratio.Enlight Media and other producers and distributors jointly divide the remaining 43%,that is,about 3.943 billion yuan.But the distribution agency fee and publicity and distribution costs still need to be deducted from this amount.Assuming that the distribution agency fee and publicity and distribution costs are 1 billion yuan,then Enlight Media and others will actually obtain about 2.943 billion yuan in revenue.
For Director Jiaozi,in addition to the possible fixed remuneration,his box office share and derivative income are also quite substantial.According to industry practices,if Jiaozi signed a contract of"basic remuneration+box office share"with the film company,with the current box office performance of Ne Zha 2,his box office share income may be astonishing.Moreover,if Jiaozi holds the share right in the derivative income such as the development of derivatives of the Ne Zha IP,he can also get a share.For example,the derivatives of the Ne Zha series,such as dolls,stationery,and clothing,are very popular in the market.According to the contract,Jiaozi can get a certain percentage of the sales revenue of these derivatives.
III.Risks and Precautions in Movie Box Office Profit Sharing
However,not all movies are so lucky.In the movie market,most movies face fierce competition,and it is difficult for their box office to reach the expected level.This further highlights the importance of the box office profit-sharing rules and legal protection,and there are also some legal risks that all parties need to prevent.
For producers(investors),they should carefully select distributors and clarify the rights and obligations in the contract,including the payment method of distribution fees,the time nodes of profit sharing,and the calculation method of box office data.They should prevent illegal acts such as"stealing box office","buying box office",and"transferring box office"."Stealing box office"means that the cinema records the box office income that should belong to a certain movie under the name of other movies by means of tampering with the ticketing system data."Buying box office"means that the film company or distributor buys false box office through improper means to create the illusion of a popular movie."Transferring box office"means transferring the box office income of one movie to another movie.These acts not only damage the interests of other movies but also undermine the fair competition environment of the movie market.Producers(investors)can stipulate strict liability for breach of contract in the contract.Once the distributor is found to have such behavior,they can be required to bear a high amount of compensation liability.
Cinemas and theater chains should abide by the rules and operate in good faith.When signing the screening contract with the cinema,clearly stipulate the reporting method and time of box office data to ensure the authenticity and accuracy of box office data.At the same time,the regulatory authorities should also strengthen the supervision of the movie market and establish a sound box office supervision mechanism.For illegal acts,they should be discovered in a timely manner and dealt with seriously to protect the legitimate rights and interests of all parties and promote the healthy development of the film industry.The box office profit sharing of movies involves many legal issues and interest relationships,and all parties need to abide by the rules and act in accordance with the law.
Conclusion
Movies,as an art interwoven with light and shadow,carry the hard work and dreams of countless creators.The success of Ne Zha 2 is not only a brilliant achievement in box office figures but also a powerful testament to the vigorous development of the Chinese film industry.In the complex system of movie box office profit sharing,we have seen the game and cooperation among all parties,as well as the importance of rules and laws in safeguarding the industry.
The birth of each movie is like a difficult adventure.From the concept to the shooting,from the production to the release,it condenses the efforts and sweat of countless people.And the box office profit sharing is like the distribution of the harvest after this adventure,which is not only related to the rewards of the creators but also affects the future direction of the film industry.It is hoped that in the future,Chinese movies can continue to innovate and break through under the protection of rules and laws,and more excellent works like Ne Zha 2 will be born.Let us jointly look forward to Chinese movies blooming more brilliantly in the world of light and shadow,writing our own movie legends,and leaving a strong mark of China in the global film industry.
I.Basic Rules of Box Office Profit Sharing
In China,there is a set of established procedures and rules for movie box office profit sharing.First,5%of the total box office is deducted as the special fund for film development and 3.3%as business tax.These two parts of fees are of great significance.The special fund for film development is like a"booster"for the development of the film industry,and the funds are used for specific purposes,such as supporting all aspects of the film industry,including encouraging artistic innovation,cultivating film talents,and supporting the creation of small and medium-budget films.The business tax is a basic requirement for paying taxes according to law,and it is an obligation that every legally operating industry must fulfill,contributing to the national finance and supporting the development of public undertakings.After deducting this part,the remaining approximately 91.7%is the"profit-sharing box office".
Among the profit-sharing box office,cinemas and theater chains account for the largest share,usually taking 57%,generally 50%for cinemas and 7%for theater chains.After all,cinemas provide the screening venues,and theater chains are responsible for arranging the screening schedules of films.They are directly facing the audience and play a key role in the generation of box office.It can be said that without the venue support of cinemas and the screening arrangements of theater chains,audiences cannot watch movies smoothly,and there will be no box office.
Of course,for some movies with special circumstances,the 57%share taken by cinemas and theater chains may change.For example,for some movies with strong market appeal,the producers and distributors are in a dominant position in the negotiation and may strive for a more favorable profit-sharing ratio,resulting in a lower share for cinemas and theater chains.In actual operation,during the preparation and distribution stages of each movie,the producers,distributors,theater chains,and cinemas will specifically agree on the profit-sharing ratio through contracts according to various factors such as the movie's production cost,cast,subject matter popularity,and market expectations,generally within the range of 50%-57%.This reflects the flexibility and fairness of the market economy.All parties negotiate and determine a reasonable profit-sharing method according to the actual situation of the movie,which can not only protect the interests of all parties but also promote the healthy competition in the movie market.
The producers and distributors jointly divide the remaining 43%.However,this 43%still needs to deduct the distribution agency fee(generally 1%-3%of the box office)charged by China Film Digital Media and the publicity and distribution costs,which include the publicity and promotion expenses of the movie and various expenses during the distribution process.Only after deducting these expenses can the final actual income of the producers(investors)be obtained.
II.Box Office Profit Sharing of Ne Zha 2
The great success of Ne Zha 2 has brought rich returns to all parties.According to the box office profit-sharing rules,Enlight Media,as the producer and distributor,will obtain considerable income from the 43%profit-sharing box office after deducting various expenses.Suppose the final box office of Ne Zha 2 reaches 10 billion yuan(just for the convenience of calculation).After deducting 5%of the special fund for film development(500 million yuan)and 3.3%of the business tax(330 million yuan),the profit-sharing box office is approximately 9.17 billion yuan.Cinemas and theater chains will get about 5.227 billion yuan according to the 57%sharing ratio.Enlight Media and other producers and distributors jointly divide the remaining 43%,that is,about 3.943 billion yuan.But the distribution agency fee and publicity and distribution costs still need to be deducted from this amount.Assuming that the distribution agency fee and publicity and distribution costs are 1 billion yuan,then Enlight Media and others will actually obtain about 2.943 billion yuan in revenue.
For Director Jiaozi,in addition to the possible fixed remuneration,his box office share and derivative income are also quite substantial.According to industry practices,if Jiaozi signed a contract of"basic remuneration+box office share"with the film company,with the current box office performance of Ne Zha 2,his box office share income may be astonishing.Moreover,if Jiaozi holds the share right in the derivative income such as the development of derivatives of the Ne Zha IP,he can also get a share.For example,the derivatives of the Ne Zha series,such as dolls,stationery,and clothing,are very popular in the market.According to the contract,Jiaozi can get a certain percentage of the sales revenue of these derivatives.
III.Risks and Precautions in Movie Box Office Profit Sharing
However,not all movies are so lucky.In the movie market,most movies face fierce competition,and it is difficult for their box office to reach the expected level.This further highlights the importance of the box office profit-sharing rules and legal protection,and there are also some legal risks that all parties need to prevent.
For producers(investors),they should carefully select distributors and clarify the rights and obligations in the contract,including the payment method of distribution fees,the time nodes of profit sharing,and the calculation method of box office data.They should prevent illegal acts such as"stealing box office","buying box office",and"transferring box office"."Stealing box office"means that the cinema records the box office income that should belong to a certain movie under the name of other movies by means of tampering with the ticketing system data."Buying box office"means that the film company or distributor buys false box office through improper means to create the illusion of a popular movie."Transferring box office"means transferring the box office income of one movie to another movie.These acts not only damage the interests of other movies but also undermine the fair competition environment of the movie market.Producers(investors)can stipulate strict liability for breach of contract in the contract.Once the distributor is found to have such behavior,they can be required to bear a high amount of compensation liability.
Cinemas and theater chains should abide by the rules and operate in good faith.When signing the screening contract with the cinema,clearly stipulate the reporting method and time of box office data to ensure the authenticity and accuracy of box office data.At the same time,the regulatory authorities should also strengthen the supervision of the movie market and establish a sound box office supervision mechanism.For illegal acts,they should be discovered in a timely manner and dealt with seriously to protect the legitimate rights and interests of all parties and promote the healthy development of the film industry.The box office profit sharing of movies involves many legal issues and interest relationships,and all parties need to abide by the rules and act in accordance with the law.
Conclusion
Movies,as an art interwoven with light and shadow,carry the hard work and dreams of countless creators.The success of Ne Zha 2 is not only a brilliant achievement in box office figures but also a powerful testament to the vigorous development of the Chinese film industry.In the complex system of movie box office profit sharing,we have seen the game and cooperation among all parties,as well as the importance of rules and laws in safeguarding the industry.
The birth of each movie is like a difficult adventure.From the concept to the shooting,from the production to the release,it condenses the efforts and sweat of countless people.And the box office profit sharing is like the distribution of the harvest after this adventure,which is not only related to the rewards of the creators but also affects the future direction of the film industry.It is hoped that in the future,Chinese movies can continue to innovate and break through under the protection of rules and laws,and more excellent works like Ne Zha 2 will be born.Let us jointly look forward to Chinese movies blooming more brilliantly in the world of light and shadow,writing our own movie legends,and leaving a strong mark of China in the global film industry.
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