I am the savior of China Entertainment

Chapter 58 Negotiation of distribution share

Whether it is a record company or a film company, the most important resource is the distribution channel.

The reason why the Hollywood Big Six are the Big Six is ​​because they have mastered the distribution channels at home and abroad, and many second-tier film companies need the distribution channels of the Big Six.

If a second-tier company knew that Fox Pictures would be acquired in the future, Xin Yiheng might become Fox's successor and become one of the Big Six.

But that's a matter of the film business. In the record industry, there is no doubt that Universal, Warner Records, Sony Music, Rolling Stone Records and other international entertainment giants have extensive distribution channels around the world.

The most famous ones in the Chinese-speaking area are probably Huayan Records and Emperor Entertainment. In the mainland, there are also large record distribution companies such as Huayi Brothers and Modern Sky.

As for others, such as Starlight Records and Huang's Records, both belong to second-tier groups, and in the field of digital distribution, Internet giants naturally occupy the market, such as overseas Apple, Amazon, domestic Penguin NetEase and so on.

In the 90s, based on the strength of the Chinese music scene, Chinese record companies had a large distribution market in East and Southeast Asia.

However, after the turn of the millennium, the record industry declined as a whole, and the Chinese music scene couldn't afford to fall. As a result, the entire record market in East Asia and Southeast Asia was occupied by Japan, South Korea, Europe and the United States.

Nowadays, it is very difficult for many Chinese-language record companies to even hold onto the local market, let alone expand overseas.

Therefore, although Fantasy Studio has become famous in the domestic record market with "Jay", it does not have any overseas markets and channels to speak of.

Therefore, when Sony Records came to the door and wanted to cooperate with Fantasy Studios to obtain the agency distribution rights in Japan, South Korea and Southeast Asia, Fan Nuoxuan started negotiations very happily.

"Mr. Fan, our Sony is the world's largest record distribution company. It is a very wise choice for your singers to be represented by Sony." Tang Hao, Sony's China business representative, was in charge of negotiating with Fantasy Studio.

"Of course I know the strength of your company, but the 40.00% share ratio is too high, and our studio cannot accept it." Fan Nuoxuan said.

"Mr. Fan, you have to be clear that the publisher needs to consume a lot of resources in the process of transshipment, warehousing and sales of records, and 40.00% is really not high.

And you have to know that Chinese singers haven't had outstanding commercial performance in the international record market for many years, and this share ratio is already very reasonable. " Tang Hao said.

"We spent a lot of energy and time in making this album, and the producer Lee Hyuk devoted all his talents to create such a high-quality album.

According to your company's distribution share, we can't even earn a cent, and maybe even pay back a certain distribution share to Sony. This is something we can't accept anyway. "Fan Nuoxuan had a firm attitude and did not agree with this sharing plan. The negotiations on the proceeds reached a deadlock from the very beginning.

There are many people who don't understand the distribution mode of an album, and there are many situations.

Take the "Jay" album as an example, the digital album is released on QQ Music, the producer is Fantasy Studio, the publisher is QQ Music, and Li Hyuk wrote and sang.

QQ Concert will take 30.00% of the total digital album sales as distribution revenue, and the remaining 70.00%, the producer Fantasy Studio will take another 40.00%. As a songwriter and singer, Lee Hyuk can only Get a 30.00% profit.

It seems very unfair, obviously I wrote and sang the song, why did I get the least amount.

The reason is very simple, it is distribution channels and production costs.

It costs money for a record company to make an album for you, and it also requires a lot of money and resources to promote it.He's not a philanthropist, why should he do it for you for free?

In fact, if Lee Hyuk is not a songwriter, he will only get about [-]% of the singer's share.

So I used to say that I love to sing so-and-so's songs, but in fact only [-]% of the whole song belongs to the singer himself, unless he is the original creator.

The above is just an ideal sharing method, and the actual situation is much more responsible than this, not to mention the physical album, in addition to production costs, mastering recording, and distributors' sharing, etc.

The profits of the recording industry are getting lower and lower. The "Jay" album released by Fantasy Studios this year has brought about 2000 million yuan in revenue to the studio. After deducting various costs, the profit is only more than 500 million yuan. Of course, it cannot Forget about paying taxes.

Li Hyuk also personally received nearly 1000 million share income, and there will be a steady stream of copyright income in the future, which is a long-term meal ticket.

There is another question, since Li Hyuk owns the copyright of the lyrics and music, does Fantasy Studio have no copyright?

Of course, Fantasy Studio owns the copyright of the original master tape, and any singer who uses cover songs in the future needs to obtain the copyright of the master tape. This is also one of Fantasy Studio’s main sources of income.

It is precisely because of the complexity of copyright sharing that it is impossible for Fantasy Studios to agree to Sony's lions. They would rather develop the international market later, but also guarantee the basic income.

Sony and Fantasy Studios didn't agree, and other major record companies moved after hearing the news, and Warner Records came up.

However, Warner Music's conditions were even harsher than Sony's. Fan Nuoxuan refused without even thinking about it, and the matter was dragged on like this.

As the end of the year approached, the popularity of "Jay" gradually declined. So many things happened in the entertainment industry every day, such as today's cheating, tomorrow's divorce, and the broadcast of some popular TV series and variety shows the day after tomorrow.

Singers like Li Hyuk, who are basically low-key in front of the public media, are gradually forgotten by the public, and only the fans who have repeated singles are still waiting.

The scandal between Yingbao and Li He has been hyped for two days, and the team of Yingbao saw Li He's basically uncooperative attitude, so they gave up and turned around to hype other scandals.

A common method used in the entertainment industry, this trick is best used by Fan Ye, other female stars have learned and styled, and they are hyped up one by one.

If there are no major changes in the world, Fan Ye will turn over soon. I hope these actresses don't even learn this trick.

The most important event at the end of the year is probably the New Year's Eve party of various David TVs. Lee Hyuk is also a singer from the Bilibili Top Ten Campus Singer Contest, and Bilibili is also a shareholder of Fantasy Studio.

So at the end of the year, Li He rejected the invitations of several satellite TVs and went to the most beautiful night New Year's Eve concert at Station B.

Station B was not attractive enough. Li He and Xu Shangao were actually the biggest guests. In addition, Guns N’ Roses, Xuan Zi and other bands and singers were present.

Li He saw that it was a bit shabby, so he called Yang Zi, who had collaborated in commercial songs, and invited her to participate in the New Year's Eve concert at Station B.

"I didn't expect you to invite me, what a surprise!" Yang Zi was having dinner with her good friend Zhang Yishan at the moment, when she received a call from Li He.

Li He on the other end of the phone bit his pen and signed various documents, and said with a smile: "The song you sang "Sweet and Sour is Me" is a popular song after all, many girls like it, so it's not strange to invite you Let's do it!"

Yang Zi smiled and said, "Thank you too. I didn't expect this song to be so effective. I actually have fans. I'm not afraid that I won't be able to sing when I participate in commercial performances."

Although "Sweet and Sour Is Me" is a mouthwatering song, it is considered to be of high quality among the mouthwatering songs. Coupled with Yang Zitiantian's voice, the former Xia Xue has turned into a butterfly and has become a new generation of boy killers.

"You don't need to thank me. After all, I also received the money. If you ask me to invite songs in the future, I will give you a [-]% discount." Li He said.

"OK, you can't go back on your word, I've already recorded it." Yang Zi laughed.

Li He said with a smile: "A gentleman's word is hard to follow, but I keep my word."

In the end, under the temptation of Li He's song, Yang Zi gave up participating in Lantai's New Year's Eve party and joined station B instead.

However, Yang Zi is considered a second-tier TV drama star at this time, and her position is not big, and she has not attracted the attention of other audiences except fans.

(End of this chapter)