American Entertainment 1978: New York Night Fever

Chapter 106 The Rolling Stones' Divine Assistance

"We've only dealt with each other once, and Jacques certainly wouldn't dare to verify it. But this path is indeed feasible. At most, we'll suffer a loss and have our money discounted, but Jacques will definitely not renege on his promise." Tino raised an eyebrow smugly. "Maurice Levy likes violence and extortion, and he's willing to make any kind of money."

Exploiting artists, stealing royalties, and seizing authorship rights—he was a master in this regard. Jacques, having been in New York for so long, couldn't possibly be unaware of the infamous record roulette game; even John Lennon was ripped off by him.

Qi Ke was secretly delighted; it seems the wicked need another wicked person to teach them a lesson!

Although Jacques also stole his royalties and grabbed his authorship, he immediately cowered when he heard the name of this truly ruthless man.

"In short, Lee holds the copyright to Chuck Berry's hit song 'You Can't Catch Me,' and he discovered that Lennon borrowed a line from it in 'Come Together,' so he sued Lennon."

Lennon wasn't stupid; he knew he couldn't afford to mess with this guy, so when they settled out of court, he agreed to cover three songs from Levy's label on his solo album as compensation. But that wasn't the end of it. Levy later cobbled together Lennon's demos into a mail-order record called "Roots," which really screwed Lennon over and made Levy's name known throughout the rock and roll community.

7

"Hahaha..."

After everyone laughed for a while, Larry straightened his suit collar, stood up and said, "Alright, you guys can handle the rest yourselves. I need to take Candy to the hospital, so I'm leaving now."

"Larry, thank you," Zeke said sincerely.

"You're welcome," Neil told me on the phone. "What Casablanca needs is a new wave that can take disco into the next decade."

He gave Zeke a meaningful look: "The situation is clear: Rolling Stone is moving in the direction you favor, the whole industry is in an uproar, everyone wants to know how to adapt to the changing winds, but Jacques is still clinging to his outdated methods. So, no need to thank me and Neil, we're just paving the way for the future Casablanca."

"Good luck, Zeke. Don't be late for the premiere tonight."

After saying that, Larry pushed open the door, leaving the conference room with a dashing back view.

Zeke knew perfectly well that it was the Rolling Stones' divine intervention that transformed him from a producer whose rights had been infringed upon into an irreplaceable strategic asset, making Casablanca completely side with him.

May 19, 1978, is probably destined to be a day recorded in history.

The legendary rock band Rolling Stones have officially released the disco-style single "Miss You".

This single, whose release was delayed due to production capacity constraints in the record industry, was like a bomb, directly detonating the entire European and American record industry.

Rock and disco have always been at odds, with music critics and die-hard fans adhering to the "purity of rock" and viewing disco as vulgar commercial noise.

For three whole years after David Bowie first tried it in 75, no top rock star dared to do it.

Today, the Rolling Stones, a totem of rock music, actually made a disco song, directly slapping the face of "rock fundamentalism."

The timing was unbelievably perfect. Zeke had just introduced the concept of "New Wave" on the Murphy Show, boldly predicting a future of convergence with Neil; and just a few dozen hours later, Rolling Stones had delivered a powerful message, embedding Zeke's predictions into the minds of every record company executive.

Even the Rolling Stones are stealing disco's weapons to arm rock and roll, which is tantamount to giving Zeke's fusion theory the highest level of official certification.

Neal and Larry understood better than anyone that the winds had truly shifted.

Soon, CantStop's accountant came in with a calculator and quickly calculated the royalty share that Jacques should pay to Zieg.

PolyGram and Casablanca distributed the "YMCA" single on 7-inch vinyl like bread to almost every record store in Europe and America. Since its official release in January, it has sold over six million copies. Over 1.6 million copies have been sold in the US alone, with sales approaching one million in the UK and France, and in other markets including Canada, Germany, Australia, the Netherlands, and Japan.

The numbers are staggering, but Zeke's share is meager. A 7-inch single sells for $1.59, and according to the distribution agreement, the producer's 3% cut is calculated directly based on the selling price, amounting to $180,000.

The other part is artist royalties. Since the Villagers band doesn't have artist status, a calculation benchmark is needed. With Casablanca mediating, the three parties agreed on a 10% percentage, taking the median value from industry practice.

Furthermore, artist royalties in the industry are settled based on the wholesale price, not the selling price. This wholesale price fluctuates around one dollar, while overseas, due to higher costs, the average settlement price at Casablanca and Can'tStop is about ninety cents.

Zeke receives 20% of the artist's royalties, with North American sales accounting for only a little over $30,000 and overseas sales less than $80,000.

The other major part is the album "MachoMan". Casablanca just celebrated its first million-selling album in North America, and although this album is smaller, it's almost as substantial as the singles.

Because the album retails for $8.99, the producer's 3% cut alone amounts to $270,000. However, Zeke doesn't receive the full amount: the album has seven songs, and apart from "YMCA," the rest were produced by Jacques. There's an industry-specific algorithm for this, roughly based on album ratings, track play rates, and album share. In total, Zeke receives approximately $90,000, while the wholesale price of the album is around $4. "YMCA" is undoubtedly the most successful track on "MachoMan." According to the previous contract, Zeke receives 15% of the album's artist royalties, which amounts to $60,000 for him.

All these things added up to about 440,000, and after deducting agent Tino's 12%, Zik pocketed more than 380,000.

In addition, there is the 12-inch single deluxe edition, which is priced higher. The total revenue from this part is about 110,000, but the actual amount received is less than 100,000.

After settling the bill, Jacques placed the check on the table expressionlessly and left silently without even glancing at anyone.

"Zek," Allen said, his previous aggressive and cold demeanor softening into a gentle expression, "Although you didn't get much money this time, all the proceeds from this song will be yours. You'll need professionals to help you settle accounts with Casablanca."

"I've entrusted all of this, including my copyright administrative management, to your law firm, Allen. I'm very satisfied with your service, and I hope we can have a long-term partnership."

Zeke nodded without hesitation. According to the settlement agreement, all subsequent royalties and production profits from "YMCA" belonged to him, and he would have to handle the settlement himself.

Generally speaking, Casablanca, as the distributor, will first take about 25% of the distribution fee, and after deducting royalties from producers and artists, the remaining income belongs to the production company, which is the holder of the master tape copyright.

But when you actually do the math, there are a lot of tricks involved: advertising expenses, cost deductions, packaging fees, advance payments, return deposits, free goods, and so on. Zeke himself has been exposed to quite a few of these accounting methods, which are often used to delay or dilute royalty payments.

In reality, the actual settlement method in the record industry was far more complicated than it is today, because the Villagers Band was not an artist, and the royalty calculation for this part was entirely estimated. The money was taken directly from Jacques' pocket, and none of the fancy tricks of the record company were included. The process was greatly simplified.

Another source of income, separate from recording royalties, is the publishing royalties from Zeke's songwriting career, which will be channeled through BMI/ASCAP.

The organizations collect the fees, usually settling accounts once a year. Now, as the publisher of his own music, Zik's publishing company must first become a member of these organizations.

He really needed professionals to handle these complicated matters, and Allen's law firm was a very suitable choice. Moreover, they were providing free services this time, so he felt that they should give him more business in return.

"Of course, Zeke, thank you for your trust." Allen shook his hand solemnly, then asked, "There's a question I've been wanting to ask you: if Jacques pays you the promised share on time, will you accept the status quo?"

"Of course, I'm a very rule-abiding person. This is my first song, and to be honest, I'll consider this loss as tuition." Zeke shrugged. "But this bastard is too greedy and doesn't want to share a single penny with me."

"Haha, I knew it!" Allen laughed so hard he slammed his fist on the table. "That idiot Jacques, for a mere 50 dollars, he's now lost all his long-tail revenue and copyrights."

Zik laughed along with him.

He had long known that the share he was supposedly entitled to today was just a drop in the ocean compared to the entire industry chain.

"YMCA" has remained on the charts for over four months, reaching number two on the US Billboard Hot 100 and number one on the singles charts in 15 countries and regions worldwide. Jacques' Can't Stop Records really reaped the rewards, earning at least millions from the song.

The reason he didn't insist on getting more cash is because, based on Allen's experience, a hit single like "YMCA," even though it's been released for more than four months and sold over 600 million copies, is only about a third of its peak sales lifespan.

Instead of competing with Jacques for that one-third, it would be better to take the remaining two-thirds, forcing Jacques to give up the master tape copyright and subsequent long-tail revenue. This way, Zicques' overall profit would be much higher.

The group walked out of the conference room, where the sunlight was somewhat dazzling.

Only at this moment did Zeke truly feel the joy of a resounding victory and the thrill of successful revenge; he felt his adrenaline surge—

The feeling was strange, like a scalding electric current rushing up his spine, making his fingertips tremble and his scalp tingle.

He fell in love with the feeling almost instantly.

WhateverltTakes

Cause I love the adrenaline in my veins

I do whatever it takes

Causellavehowitfeelswhenlbreakthechains

Whatever it takes

Ya take me to the top I「m ready for

Whateverittakes

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