Back to 80: My literary life.

Chapter 897 Negotiations Hindered
"So anxious?" Fang Minghua was surprised: "January 24th is only the third day of the Chinese New Year, the New Year hasn't even ended yet."

"In the U.S., there is only one day off for the Spring Festival, and we have to go back to work on the third day!"

Hearing Song Tangtang's words, Fang Minghua could only sigh: "Okay."

Back at Feroli Manor, it was Song Tangtang's first time here. Looking at the surrounding scenery, she smiled and said, "This manor is nice. The environment is elegant and much better than our small courtyard in Xijing."

"Then you should stay here for a while longer and have a good rest." Fang Minghua said.

"I want to, too, but I'm not as free as you." Song Tangtang sighed, "I hope we can reach an agreement with Warner Bros. as soon as possible. The company still has a lot of things waiting for me."

At noon, Li Li and her daughter Li Xin returned home. In the afternoon, Fang Rui also came back from school for vacation. The villa suddenly became lively.

Today is New Year's Eve. According to the custom in Xijing, the whole family hung red lanterns in the manor, pasted Spring Festival couplets at the door, set off fireworks and had New Year's Eve dinner in the evening. However, they couldn't watch the Spring Festival Gala.

On the first day of the Lunar New Year, the whole family drove to Chinatown to watch dragon and lion dance performances. Early in the morning on the second day of the Lunar New Year, Song Tangtang left San Francisco alone and flew to Los Angeles. She will meet up with Wu Tianmin's team and then negotiate with Warner Bros.

In the morning, Fang Minghua personally drove his wife to the airport.

Song Tangtang sat in the passenger seat and said:

"Yesterday, Wu Tianmin called me to wish me a happy new year and mentioned that he had contacted senior executives of Hollywood film companies to discuss cooperation. 20th Century Fox and MGM were very interested and suggested that I go to Los Angeles to talk to the senior executives of these companies. However..."

"But what?" Fang Minghua asked.

"But I still hope to reach an agreement with Warner Bros. After all, the cooperation between the two parties is quite tacit. Once the negotiations break down, the copyright of all derivative and peripheral products related to the film, as well as the production and sales, will also be a headache."

Fang Minghua nodded after hearing this.

Indeed, the big IP of "Harry Potter" is not only about box office revenue, but more importantly, the copyright and sales of derivatives and peripheral products. The economic benefits here have exceeded the box office revenue of the movie.

According to the contract at the time, Shengshi Film and Television authorized Warner Bros. to design, produce and sell derivative products and peripheral copyrights.

In this regard, Shengshi Film and Television actually relies on Warner Bros.' strong design capabilities and huge sales network. This is also the main reason why Warner Bros. is so confident and suddenly has a tough attitude.

After Song Tangtang finished speaking, Fang Minghua replied, "We rely on Warner Bros., and so does Warner Bros.? Warner has made a lot of money in recent years not only from the box office of Harry Potter, but also from the peripheral products. They even make more than us, and they are still not satisfied?!"

Song Tangtang didn't say anything after listening. The box office revenue of the first four films was as high as 41 billion US dollars, and the net profit was about 9 million yuan, of which Warner Bros. took 5 million yuan and Shengshi Film and Television took 4 million yuan.

Of course, Warner Bros. makes more money from Harry Potter derivatives and peripherals. According to relevant data, Warner Bros. has a revenue of 25 billion and a net profit of about 10 billion! This is higher than the box office revenue of the movie!

However, Shengshi Films only has copyright income, which is about 2.5 million US dollars, far lower than Warner Bros.' income.

"To be honest, I'm not very worried about this negotiation." Fang Minghua said again.

"Hmm?" Song Tangtang looked at him inquiringly.

"Don't forget, we have the copyright to Harry Potter! This includes the authorization for the peripheral derivative products! If we don't give them the authorization, they won't be able to design and produce new peripheral products and derivative products, and they won't make a penny!"

Hearing Fang Minghua's tough tone, Song Tangtang laughed and said, "Haha, in fact, you are the one who is fearless."

Fang Minghua laughed loudly and said, "I hate being blackmailed. Can't we all make money together? Why do you have to be so greedy?"

"Okay, while I negotiate, I'll have Wu Tianmin increase his contact with MGM and 20th Century Fox so that we can take the initiative in the negotiations." Song Tangtang said. "Okay."

"I will inform you of the progress of the negotiations with Warner Bros. when I go to Los Angeles, and you can also help me with some advice."

"As ordered!"

After seeing Song Tangtang off, Fang Minghua returned to his manor and continued to live a peaceful life.

The negotiations between Shengshi Film and Television and Warner Bros. were indeed difficult, but in the end Warner Bros. made concessions and continued to cooperate based on their respective investment ratio of 50%.

Everyone thought that the two parties could sign the contract and were about to prepare the filming team, but Warner Bros. suddenly made new demands.

After dinner, Fang Minghua learned the latest negotiation results from a phone call from Song Tangtang.

"Minghua, this afternoon Warner Bros. put forward new conditions, saying that since they have made concessions on the investment ratio, they require us to extend the authorization of their company's Harry Potter derivative products and peripherals from five years to twenty years.

Twenty years?!

According to the contract initially negotiated and signed by the two companies, Shengshi Film and Television authorized Warner Bros. to develop Harry Potter peripherals and derivative products. At the same time, Warner Bros. had to pay Shengshi Film and Television a copyright fee, accounting for 10% of the total revenue.

授权时间是从1999年12月31日开始到2004年12月31日，届时，双方进行谈判商定是否继续续约。

Now, Warner Bros. suddenly proposed to extend the contract right now, and for 20 years!
Very aggressive.

Fang Minghua sneered: "I absolutely won't agree to that."

"Yes, that's what I think too. According to Warner Bros., they value the revenue from movie-related products more." Song Tangtang's tone was also calm.

"Yes, this is a huge gold mine, and only the tip of the iceberg has been revealed." Fang Minghua laughed: "It really bullies us Chinese people for not understanding this."

"Yes, our domestic film industry only cares about box office revenue and rarely pays attention to these peripheral products and derivatives. More importantly, it seems that China does not have the habit and ability to develop movie peripherals."

“So they are more emboldened.”

"If I refuse, the negotiations with Warner Bros. will probably fail. I'll start preparing to talk to MGM or 20th Century Fox." Song Tangtang sounded a little tired on the phone.

"Don't be anxious, talk about it slowly. If it really doesn't work out, put it aside for now and don't tire yourself out." Fang Minghua comforted.

"I'm fine. OK, I'll hang up now."

The news that the negotiations between Shengshi Films and Warner Bros. were blocked was soon leaked, and Harry Potter fans were immediately very disappointed. The filming and release of the fifth film were nowhere in sight!

Fang Minghua didn't care about this, but a piece of news published in the American "Entertainment Weekly" caught his attention.

Negotiations between DreamWorks and NBCUniversal Pictures - for DreamWorks to sell itself to Universal Pictures - have stalled.

DreamWorks?
Isn't this Spielberg's company?

(End of this chapter)