America: Starting with the acquisition of MGM...

Chapter 175, Section 174: Mei Yi Records Established, Planning for The Voice of America

At Dream Manor, a celebration party is underway.

boom!

The champagne cork was ejected by bubbles, and Eric waved the liquor around, the foam landing on everyone.

Hahahaha

cheers

Everyone burst into laughter from the depths of their hearts; after this arduous struggle, victory had finally been achieved.

As she looked at the news report, Olsen chuckled and said, "How could you say such things in front of reporters? Aren't you ashamed?"

Michael shook his head and sighed, "That's why I had lawyer Messerio do it for me; saying these things is still too difficult for me."

Attorney Meserio, who usually maintained a very serious demeanor, was now unusually laughing heartily: "Howardskinger probably wants to eat our hearts out."

Upon hearing this, Ao Mei was somewhat worried.

"Michael, you may have won this time, but Sony will definitely retaliate against you. You need to be careful."

Messerio waved his hand: "No, Mike and Sony signed a new agreement that includes a no-retaliation clause."

"Besides, as long as he holds the copyright, Sony won't dare to really do anything. If they really had the guts, why would they have compromised this time?"

"I'm more worried about MGM. This incident has blown up too much. Sony has suffered such a big loss that it can't get away for a while, but they will definitely investigate afterwards. Eric can't hide it."

Thinking of this, Michael couldn't laugh anymore: "Eric, the one who really needs to be careful is you. If Sony targets MGM, have you considered how to deal with it?"

Seeing their tense expressions, Eric didn't take it seriously.

He knew very well that once Lionheart Online went live, it would inevitably impact other film and television companies.

Streaming media and television stations/cinemas are inherently in conflict. Diverting viewers is like taking food from someone else's bowl; who wouldn't resent that?

Anyway, Eric was prepared to be besieged by the other six major companies, just like the six major sects besieging Bright Peak.

He doesn't expect other companies to grant MGM film rights at that time; Lionheart.com will most likely only be able to use MGM's own film library.

Perhaps they could acquire some film libraries from small independent companies, and DreamWorks could also consider trying, but DreamWorks' foundation is too weak to be of much use.

All Eric can do is keep producing good shows to attract viewers and retain users; this is the only way to break through the competition.

Therefore, people must rely on themselves!

Since we'll be rivals sooner or later, what's there to worry about? We'll meet force with force and water with water!

Taking a sip of champagne, Eric said nonchalantly, "A solution? What's there to consider! As long as it's not a terrorist attack like an assassination, let the business competition come at us."

"Anyway, since the establishment of Hollywood, the eight major studios have always been in a state of both cooperation and competition."

"We're all making movies, what else can we compete on? It's just about competing for box office revenue in the same release window. Do you think I'm afraid of Sony?"

"Although Sony also has some big IPs, such as Spider-Man, Men in Black, and Stuart Little, MGM also has Transformers, James Bond, and The Silence of the Lambs."

"Moreover, the market has witnessed the company's performance over the past year, and there's a lot of capital waiting for MGM to relist. Who's afraid of whom is anyone's guess!"

Seeing Eric's confident demeanor, even though everyone was worried, they didn't say anything more.

After a pleasant time eating, drinking, and playing, Mike and Eric went outside.

Arriving at the artificial lake, the evening breeze, dampened by the lake water, brought a refreshing coolness.

"Michael, now you're finally free. With this half of the copyright in your hands, you can do a lot of things. What are your plans?"

Michael gazed at the lake and said softly, "Until this moment, I still feel like I'm dreaming. Although I've had thoughts of leaving Sony, I've always believed it was an unrealistic fantasy."

"Eric, your appearance is like a gift from heaven, helping me start a new chapter in my life. Thank you!"

Looking at Michael, who seemed calm but was actually very excited, Eric was also quite moved. Compared to the fragmented life in the original timeline, this was a new life, full of light and hope.

He patted Eric on the shoulder, his tone complex: "You are my idol, like a ray of light that has brought joy and hope to many people. Perhaps I am the one God sent to reward you."

The two smiled at each other. Although they had only known each other for half a year, the trials and tribulations they had gone through together exceeded those of many people's entire lives, and their relationship was even stronger than that of old friends.

"Eric, the new agreement I signed with Sony has many restrictions on the use of this half of the copyright, so the best solution is to start my own music company."

"Even if we have to rebuild our distribution channels, it's better than being controlled by others. I believe that with our resources and capabilities, we will definitely become a super music company that can rival Sony, Universal, and Warner in the future."

"us?"

"Yes, it's us, Eric. I'd like to invite you to start a new company together. I've already thought of a name for it: Mei Yi Records."

"The name is derived from the initial 'M' of my name combined with the initial 'E' of your name, from Mei Yi Records."

"You will own 49% of the company; this is my way of repaying you."

"I hope you won't find it offensive; this is the most precious thing I can offer."

Eric paused for a moment, not because he thought it was too little, but because it was too much. He knew very well what 49% of the shares meant.

That means he will be able to enjoy the profits from Mikey itself and the many artists signed by Sony.

For example, if Britney Spears earns $100 million through her company this year, she can take about 20% of the income.

This percentage is variable, varying from company to company and from contract to contract.

If you're a newcomer and you sign with a big company like Sony, your percentage might be reduced to 15% or even lower.

For newcomers, the percentage increases significantly if they sign with a small company or studio, typically reaching over 30%.

However, the cost of being a small company or label is weak distribution channels. Album sales may not even reach half of those of big companies, and in the end, the money earned is less than that of signing with a big company.

After Britney takes 20%, the company's operating expenses and taxes will be deducted. After all these miscellaneous expenses are deducted, Sony and Mike can split the remaining portion equally.

As for how much is left, it varies from person to person. For example, if 40% is left, then Mike will get 20%, which is $2000 million.

This means he can get a $2000 million share simply by sitting at home and doing nothing.

Sony handles both publishing and operations, doing all the work and still getting paid. Don't you think they're envious?

But what can you do if you're envious? Who told you to covet the music library that Michael Jackson owned? Michael Jackson made a huge contribution to Sony Music's growth from the 1990s to the present day.

He personally, along with the music library he owns, has earned Sony billions of dollars; it's a mutually beneficial arrangement.

Now that Mike has established a new company, it means that the 20% profit that he could have received will be given to Eric again, with 49% going to him. This is roughly equivalent to the two of them splitting the profits in half, and the value of this is immeasurable.

However, since Michael is now an independent musician, his copyright is also subject to limitations.

Firstly, Sony Music Japan is independent, and Mike doesn't enjoy the rights there.

Then, from the moment he left Sony, he would also be unable to enjoy the rights when Sony's artists released new albums.

His copyright rights only extend from the founding of Sony Music to this point.

Over time, the value of these songs will decrease, and some may even be transferred to the public domain, but even so, they will still be a very considerable asset.

"Michael, I'd love to start a company with you, but 49% is too high. I can't accept it."

Michael replied in an unquestionable tone, "No, you must accept it. I can't think of anyone more deserving than you."

"But 49% is really too much. I can accept it, but at most 20%. I will put a sum of money as the company's registered capital."

Michael turned to look at Eric, his eyes clear: "Eric, are you my friend?"

"Of course, I consider you my best friend."

"Then don't say no anymore. I consider you my best friend, and these shares are nothing compared to our friendship."

Looking into his sincere eyes, Eric slowly nodded: "Alright, let's work together to build Meiyi into a new music giant, not only to rival Sony, but to surpass it. And in the future, we'll acquire it and take back all the copyrights."

Eric accepted the shares, and Michael smiled. He bent down, picked up a pebble, and threw it, which splashed across the lake.

"Eric, I also have some ideas for the company, like these gradually advancing splashes, to gradually grow and expand it."

"First of all, I plan to release a new album as soon as possible. The success of 'Rolling in the Deep' made me realize some things. I must adapt to the new market environment and make certain changes in my musical style."

"Then there's the concert issue. Without Sony's help, it's not easy, or even impossible, to hold a world tour. So next year, I plan to hold a concert in China first, at least to rebuild momentum."

"Another very important thing is to discover some good talents. Good artists are the company's real assets. Only by constantly injecting fresh blood can the company develop in the long term."

"That's all I've considered for now. Do you have any thoughts?"

Eric's pre-planned strategy came to mind, and he then gave Mike a detailed explanation of the Lionheart website and YouTube.

He's been using Facebook quite frequently lately, and his understanding of the internet has deepened considerably.

In particular, the war with Sony gave them a profound understanding of the reach of the Internet.

"Eric, you mean that once it's online on YouTube, I'll license the copyright I have to YouTube?"

Eric nodded: "That's right. This way, YouTube can leverage your copyright to achieve faster growth, and MeiYi can also collect fees."

"It doesn't feel much different from a regular licensed music library," Michael said, somewhat puzzled.

"For the time being, there is not much difference. I plan to buy a year's usage rights and give them to users for free, since YouTube is also in its early stages."

"Once YouTube has developed in a year, we will adopt a new cooperation model, such as licensing Meiyi to YouTube, but taking a cut of the profits from views, Google Ads promotions, and other aspects."

"Wow. This kind of cooperation model sounds quite novel, giving me a feeling of a new era of the Internet."

"Yes, that's the first idea. Then there's Lionheart's music variety show. I intend to create a novel program to compete with American Idol. The tentative name is 'The Voice of America'."

"A music talent show?" Michael asked.

"I guess so, but it's not an open audition. Instead, we select contestants in advance. We only want the elite, and we want to present a high-quality competition where the contestants can demonstrate singing skills that are no less than those of professional singers."

"The selected singers will sign with Mei Yi, which is a good way to bring in fresh talent."

"It sounds interesting. The format is the complete opposite of American Idol. One is about the grassroots, and the other is about the elite. I just don't know which type the audience will like."

"Don't worry about that, because even if the contestants can't compete with American Idol, The Voice has another major selling point, which is the mentors' fierce competition to recruit contestants."

"I plan to invite four music big names to form a mentor group. After the contestants finish singing, if more than one person likes the contestant, then the mentors will have to compete for the contestant."

"When audiences discover that these big stars are joking and cracking jokes, a stark contrast to their stage personas, they will find it very novel."

"So, while the contestants may seem to be the main characters on the surface of The Voice, the real protagonists are actually the four mentors. I'm sure that the show will greatly increase the mentors' popularity after it airs."

"Michael, you're the first mentor I've ever invited!"

Upon hearing this, Mai took a step back, trying hard to visualize the scene in his mind, but he couldn't imagine it at all and could only shake his head helplessly.

"Eric, am I suitable? I rarely participate in variety shows, I don't know if I can adapt."

Eric chuckled and said, "Just sitting there, without saying a word, will have enough effect."

"And to ease any awkwardness you might experience, I'm also planning to invite your sister to be a mentor as well."

"You mean Jenny?"

"Yes, she's a rock queen, a top-notch female singer. She's more than qualified to be a mentor. You won't be lonely with her around."

Michael nodded slightly: "With Jenny involved, I do feel more relaxed. What about the other two?"

"I haven't decided yet. I'm considering a combination of two men and two women, plus a rapper and a female singer, but I'm still undecided about what kind of music the female singer is good at."

"My ideal choice is Whitney Houston, Madonna, Celine Dion, or Shania Twain. Do you have any suggestions?"

Mike thought for a moment: "They are all too outstanding, I can't give any advice. You can try inviting them, and choose the one with the lowest price and the longest contract period."

"Uh, practical!"

(End of this chapter)