Chapter 575： A new model for amusement parks

MGM has an enviable library of films.

By licensing the film rights in the library to pay TV, cable networks and TV stations around the world, and selling and leasing videotapes and DVDs, MGM's annual revenue can reach $600 million.

However, this revenue is complex and needs to be shared with other film rights holders.

Each film has its own special contract terms to separately stipulate the payment rules of the distributor, the main creator, the trade association and the third party.

For this expenditure, MGM has to sign more than 15,000 checks each quarter.

Not only do films have different profit sharing conditions, but their future revenue streams are also specific to each film, such as the age of the star, the subject matter of the film, and the genre.

In order to evaluate the value of the film library, all bidding companies for MGM have sent an experienced financial team to conduct inspections.

Viacom is also interested in MGM.

Redstone sent an experienced 50-person team of in-house professionals to value each film's likely benefits over the next 10 years.

The hard work has begun since Kirk Kerkorian announced that he was selling MGM.

Two months later, Viacom managers gave a reasonable estimate of MGM at between $3.5 billion and $4 billion.

The bid wasn't even submitted to MGM, though.

Viacom internally gave no.

President Mayer Kamathin, an ultra-conservative, especially resents Redstone's huge spending on the unprofitable film industry.

He only asked the manager one question: "Will the acquisition of MGM's film library repeat the mistakes of the record industry?"

The managers looked at each other.

The development situation of the Internet, no one can see clearly, can't understand!

Kamathin said firmly: "In this case, we will not acquire MGM."

Disney is also eyeing MGM.

Michael Eisner has even made an offer to Kirk Kerkorian: "$3 Billion!"

As soon as the offer came out, it was directly rejected by Kirk Kerkorian.

Want to buy MGM for $3 billion?

What are you kidding?

In Kirk Kerkorian's reply, the words "joke" and "clown" were even used, and Michael Eisner jumped in anger.

Now, of the nine companies participating in the bid for MGM, Microsoft, Viacom and Disney have withdrawn one after another.

Only General Electric, Sony, New Universal, Lionsgate, Comcast and Time Warner remain.

Dunn was not in a hurry to shoot.

He is negotiating with Warner Bros. over the lease of the internet rights.

Both parties sent negotiating teams to negotiate the deal in five rounds over ten days.

Finally, on February 1, Dunn Walker and Barry Mayer attended the last negotiation meeting in person, and the two sides reached an agreement.

New Universal will lease the network streaming rights of all Warner Bros. films, including the existing copyright library and future film projects, for a total of 20 years!

In the first ten years, the annual lease fee is $20 million; in the second ten years, the annual lease fee is $30 million.

Not only that, New Universal will also pay a one-time payment of a total of 200 million US dollars in copyright lease fees for the next ten years.

Barry Diller and Barry Mayer, representing the two companies, signed the contract.

After the signing ceremony, Barry Mayer came to the backstage and smiled wryly at Dunn, "Don, I have a hunch that I've been fooled by this deal."

Tang En forced a smile and pretended to be at a loss, "I was fooled? What do you mean? If you say I was fooled, it's me, right? Originally I meant to sign a contract for 30 years, but now it's shortened to 20 years. My investment risk has greatly increased."

"But I always feel that... within ten years, there will be a rapid development of network speed." Barry Mayer shook his head, "If it weren't for Warner's current financial difficulties, I would definitely not accept such an agreement."

"nonsense!"

Dunn laughed secretly in his heart.

If he hadn't known the plight of Time Warner, how could he have directly attacked the most difficult bone?

He knows the crisis at Time Warner very well.

The merger of aol AOL and Time Warner has caused irreparable damage and trauma that will not be repaired for decades.

In order to alleviate the crisis, Warner Records, Warner Publishing, and Warner Cable were sold successively, and the assets of aol AOL were stripped off after vomiting blood. In the end, it was still difficult to handle, so that the entire group was sold as a whole to at&t.

Tang En said calmly: "It's just a 20-year lease period, it's not that serious. Besides, it's not an exclusive online copyright. If the Internet really rises in the future, Warner, with its huge film library, can still be in the Internet age. Invincible."

Barry Mayer shrugged. "Hopefully."

This is his only psychological comfort.

What New Universal has rented is not exclusive online copyright, that is to say, within these 20 years, Warner can also develop and sell online copyrights for the movies in the film library.

Dunn is snickering.

The 20-year copyright period... It's not too long, but it's definitely not too short.

In ten years, $30 million wants to package all the movie streaming rights to Warner?

$300 million is almost there!

Even after 20 years, Warner's huge copyright fee, it is impossible to renew the contract on such conditions.

Dunn is also confident.

Because by that time, Netflix has developed thoroughly, and has a rich copyright library made by itself, and there is no need to lease copyrights from other companies.

What's more, New Universal and Warner Bros. have reached a deal, which is a signal to Hollywood industry peers.

With Warner Bros.'s library of 6,500 movies, the current online copyright package price is only $20 million.

How much can other companies offer?

This deal sets the tone.

Next, New Universal will have a better theoretical basis when negotiating with 20th Century Fox, Disney, Columbia Pictures, and Lionsgate.

...

New Universal's film and television streaming copyright acquisition plan continues.

Dunn has already dealt with Warner Bros. and made a good start.

The remaining specific work was handed over to Robert Iger and Kevin Turner.

However, Robert Iger and Bob Chapek proposed a new park construction plan after securing investment negotiations for the new "Spider-Man Adventure" park at Universal Pictures Osaka.

"At present, Disneyland is too far ahead of Universal Studios, whether it is brand image or attractiveness to tourists, it is not at the same level. To break this pattern, we must find a suitable entry point."

Robert Iger was born in Disney, travel and consumer goods, under his direct leadership.

Dunn was very interested, "Oh? What entry point?"

"An entry point that can make Universal Studios' public opinion overshadow Disneyland!"

"Want to suppress Mickey Mouse and Snow White? It's hard, isn't it?"

"It's hard, but there's a chance."

Dunn nodded, "Tell me about it specifically."

Robert Egger said: "Recently, I read your book "The Theory of Explosion" and was deeply touched. If the movie is like this, why not the amusement park? The attraction of Disneyland lies in the cartoon characters such as Mickey Mouse, Snow White and so on. , to put it bluntly, it is a big park that is made up of countless small projects. New Universal has not many small projects, and Pixar only has 4 films. Therefore, we can take a completely different development path from Disneyland. !"

"Oh?" Dunn's eyes lit up, "You mean... a big project?"

"That's right!"

Robert Iger clapped his hands, "The performance of Universal Studios Osaka is not bad, but the overall design is still a traditional model. The theme of 'Jurassic Park' is only a small area in the park, and it does not play at all. The characteristics and humanistic features of the Cretaceous era of 'Jurassic Park'."

Dunn nodded in approval.

The Jurassic Park franchise, after the trilogy, was shelved. However, after the launch of 3D technology, the "Jurassic World" series can still bring the shock of giant dinosaurs to the world!

Universal Studios' current design and construction of the "Jurassic Park" adventure area is too ambitious and overkill.

Of course, it's also about investing.

Want to build an ideal real Jurassic Park ~ www.novelhall.com ~ at least 600-800 million US dollars investment.

Such a large investment is too risky.

Simply integrate the "Jurassic Park", "Future Water World", "Terminator" and other projects into a park, reduce the scale of each project, and attract customers with richer elements.

It's still mimicking the Disneyland model.

"I think if Universal Studios wants to surpass Disneyland, it can't honestly imitate Disney, we have to come out with a new Universal-style amusement park model!"

"Big project?"

"Yes, it's a big project!"

Tang En nodded again and again and gave him a deep look, "Have a choice?"

Robert Egger said: "Yes, we can invest 700 million to 800 million US dollars, next to Universal Studios Orlando, to truly build the world's first independent individual park - Harry Potter theme park! "

"Harry Potter Theme Park..."

Dunn muttered to himself.

Robert Egger said: "Disneyland is a combination park, and each park has many small projects. The richness is rich, but it is not unique enough. It is just playing, and it lacks the shocking eye-opening in the big world. Harry · The Potter theme park is completely different, completely built around the Harry Potter series of novels and movies, unique, new and unique, this theme park, and the Disneyland model of the past, is completely different!"

Dunn narrowed his eyes.

Indeed, it was like this in previous lives.

In Orlando, there are two major tourist resorts, Disneyland and Universal Studios.

The former is far more attractive than the latter.

Until the opening of the Harry Potter theme park, it directly drove Universal Studios and became the overlord of the Orlando tourism industry!

(Sanqi Chinese)