Golden Dawn Entertainment Group.
Chairman's office.
"Boss, this is the stock price change of 20th Century Fox after the release of 'X-Men' and related financial derivatives data." Alexander handed a document to Kyle.
Kyle immediately stopped his work and picked up the document to read it.
"Good heavens~"
Kyle exclaimed, "Just from the box office, the final box office revenue of 'X-Men' alone can earn 20th Century Fox tens of millions of dollars. With the offline market and merchandise revenue, it's conservatively estimated to easily make over a hundred million in profit."
"However, the money they earned from the financial market is actually much more!"
Isn't that right!
There are many, many production companies in Hollywood, as numerous as the stars. But most production companies are quite simple production companies, whose main revenue comes from box office, offline DVD market, merchandise licensing, TV platform broadcasting, and so on.
A production company with good revenue might make over a hundred million in profit in a year; however, when revenue is poor, or after losing money on a few bad films, they might end up with nothing for the entire year!
But... the Hollywood Big Six are completely different.
In addition to revenue from box office, offline DVD market, merchandise licensing, TV platform broadcasting, and so on, the Hollywood Big Six also sell financial derivatives related to film entertainment.
A common practice is that the funds required during the creation process of a film can be packaged into standardized wealth management or trust products for financing, and the relevant investors can also profit from the stock market.
Film finance, in plain terms, is a money-grabbing operation by investors and production companies!
"Film finance and related financial derivatives, after capital enters the market, have indeed greatly prospered the market, but at the same time, they have also buried huge hidden dangers, because capital is profit-driven and likes to make quick money!"
"Boss, just like this time with 'X-Men'!"
"The production company, 20th Century Fox, will definitely achieve 5 to 8 times its box office revenue from finance and the stock market."
"This is also why the Hollywood Big Six have frequently invested in and filmed high-budget movies in recent years."
Alexander spoke eloquently.
Hearing this, Kyle couldn't help but smile, "Not bad! Your understanding of the film market has become more profound."
What is the box office?
For the Hollywood Big Six, they don't particularly care about the revenue from a film's box office!
What they care about is how high they can pile up the box office!
As long as the box office is high enough, they can earn more money from the film-related stock market and financial derivatives market!
Kyle was also quite envious.
If films produced by the Hollywood Big Six and films produced by Page Pictures both exceed $300 million at the box office, then after deducting production costs, promotion, labor, copies, and other expenses, the revenue of the Big Six companies will definitely far exceed that of Page Pictures.
Why?
Financial derivatives and the soaring stock prices related to films!
"How can the revenue of a pure film production company catch up with the soaring stock prices related to financial derivatives and films?"
"Even if capital's pursuit of profit will greatly harm the stability of the film market, who cares?"
"Every film director and producer is a financial expert!"
Kyle's heart was filled with endless emotion.
"Tsk tsk tsk~ Film companies are really good at playing the financial game!" Kyle chuckled.
Envious!
So, Kyle chose to go with the flow!
You can do film finance, and so can I.
Page Pictures previously did not have the conditions to engage in film finance, but now it's different!
Page Pictures has been producing hit films one after another, and with the Golden Dawn Entertainment Group as its backing, it completely possesses all the necessary conditions for high-end film finance... Investors are everywhere!
"Mr. Mecca, do we really have to do this?"
The man speaking was a middle-aged man, a senior executive at a small investment bank on Wall Street.
The Mr. Mecca he referred to was Hedda Mecca, 56 years old, the owner of this small investment bank.
Hedda Mecca smiled, "Mooney, don't worry. Although Page Pictures has never engaged in film finance before, and the financial derivatives for'Spider-Man' are being sold for the first time, I am confident that it will definitely make us a lot of money."
Mooney: "..."
He was still a bit worried.
Capital always chases success.
Page Pictures had indeed produced many hit films before, but who can guarantee that "Spider-Man" will definitely be a box office smash?
Buddy, the production cost of Spider-Man is as high as $150 million!
Such high production and promotion costs mean high risks, which makes it necessary for these investment banks to be cautious, especially in the broader environment after the dot-com bubble.
"Mooney, I understand your concerns very well!"
"But think about 20th Century Fox's 'X-Men.' Its opening weekend box office exceeded $54 million in three days. Now look at Fox's stock price—goodness, the profit from the stock price increase exceeded $140 million; sales of financial derivatives also exceeded $60 million."
"To put it boldly, in two months, 'X-Men's' traditional revenue alone will bring 20th Century Fox no less than $100 million in profit, while stock price and financial derivative revenue will be at least $300 million, possibly even exceeding $500 million!"
"Look!"
"The massive success of 'X-Men' has ignited the superhero market!"
"Nowadays, moviegoers' expectations for'Spider-Man,' also a comic book adaptation, are absolutely maxed out!"
"I firmly believe that by purchasing'Spider-Man' financial derivatives now, we will definitely make a fortune."
Hedda Mecca spoke passionately, constantly waving his arms and fists in the air.
Executive Mooney was convinced.
At the same time.
Across Wall Street, more than 20 investment banks were focusing their attention on the movie "Spider-Man."
"Investing, of course, has risks!"
"But I believe that'Spider-Man' exploding at the box office is a high-probability event!"
"Losing money? If we lose, it's a few million, but if we win, we can earn at least $10 million!"
"In short, I am optimistic about'Spider-Man's' performance!"
Large investment banks and capital might not care about such small profits, but those small investment banks and speculators will definitely not miss this opportunity, and they do not lack the gambler's mentality and courage.
A thousand calls and ten thousand expectations are not enough to describe their anticipation for "Spider-Man."
Of course, classmate Kyle himself is also very much looking forward to the release of "Spider-Man," wanting to see how many hundreds of millions of dollars it can rake in at the box office.
Outside, there were numerous predictions for "Spider-Man's" opening day and opening weekend box office.