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Tech

What does STX Entertainment Chief Robert Simonds

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CEO of STX Entertainment has recently announced his partnership with Huayi Brothers for financing and producing an expanded slate of movies for his studio. It is expected to produce almost 15 feature films every year which will surely work for adding more in the business of STX Entertainment. As per Robert Simonds in Hollywood Reporter, the STX Entertainment studio was originally designed to work on 8-10 movies per year with an average budget of $30 million whereas $35 million for average prints and advertising per film. Before getting in partnership with STX Entertainment; Huayi Brothers were firstly participating on a global basis. The deal between the two includes terms and conditions by Robert Simond and Huayi Brothers where they had added equity investment plugs into the lines of credit and surcharges which have ultimately added more in the production of the films.

The number of movies going to be shoot every year has been jumped by about 4-5 movies per year which are really a good signal for the growth of both of the companies. Bob Simond in an interview clearly mentioned that it is a slate deal which does not include any equity shares by Huayi in the company. The Huayi Brothers are going to have a direct ownership in each of the movies going to be produced and hence we can also say that the deal is going to be equally beneficial for both of the companies i.e. STX Entertainment and Huayi Brothers. Bob Simond also mentioned in his speech that it is the perfect time when they are going to perform their partnership. It’s not about the increased number of movies they are going to produce every year but it is also due to the business plans they are going to indulge in.

As per the experts, the only reason behind the closure of most of the studios is the shifting of business plans to franchise movies. It’s all about the blank space they have created due to the shifting of the business plans. According to Robert Simond; most of the time people wanted to work with the brand, not with the final content of the movie. They look for the talented and popular directors and movie stars to work along with. Robert Simond also mentioned that their partnership is also going to risk one as what they have done is really competitive and difficult one; but in addition to it; they are also providing a platform for the aspiring talent to let them tell their stories which may hopefully fill the vacuum created by the shifting of business plans.

As per Bob Simonds, they are investing the capital what they actually believe in. They are just looking for best future plans where they can perform better in China. Exposure to the new talent will hopefully bring a new future to the entertainment industry in China. The STX Entertainment studio has successfully raised its business in collaboration with Huayi Brothers so that they can easily cover the failure of any films for years to come.