Chapter 699： Constant business theme

In the conference room of Sony Columbia Pictures, Howard Stringer, representing Sony Entertainment, glanced at Ronan who was silent, and took the pen to sign the contract.

represents Mark Randolph, who has recently changed his name to Netflix, and signed his name on another contract.

Then, the two parties exchanged contracts and signed again.

The authorization agreement was officially reached, and Howard Stringer shook hands with Mark Randolph.

There was warm applause in the conference room.

Ronan was also applauding with everyone.

Since the acquisition of Artisan Pictures' film library, Relativity Entertainment and Netflix have never stopped looking for more film sources. They have reached agreements with DreamWorks, Universal Pictures and Warner Bros. and obtained three companies. Network use authorization of the film library.

With the development of Netflix, the sales and rental of DVD business has soared, and the difficulty of negotiation between Netflix and other companies has suddenly decreased.

This year, Netflix’s leasing business volume has surpassed that of Blockbuster’s leasing business. Anyone with a little foresight can see clearly that it’s only a matter of time before Netflix represents the future and defeats the old and conservative Blockbuster.

The vast market for online leasing is also eye-catching.

Therefore, Netflix naturally changed from wanting to buy copyrights and not being able to buy them. Many companies took the initiative to talk about Internet licensing.

According to Ronan’s instructions, all Internet authorization is a bundled authorization negotiation between DVD and online playback.

This is also the final preparation for Netflix's streaming media business, to open up more film sources.

It is important for new works to attract attention, but old films also have a large audience.

And unlike the authorization method of Netflix, which has very little business volume, it requires a high initial fee. All companies that negotiate with Netflix to authorize are targeting and requesting the latter part.

The fast-growing business volume of Netflix is ​​here. It is purely a problem with the brain to require high early-stage expenses and a low proportion of late-stage shares.

Almost all authorization negotiations basically did not involve the initial cost, and the authorization of the two parties is mainly based on the subsequent sharing.

Netflix’s current three major businesses include social sharing, video and picture sharing, and DVD rental and sales. The real profit is DVD rental and sales.

But the first two effectively boosted the number of users of the latter, and the three are an organic whole and can drive each other.

Besides, when Netflix's streaming media business starts and stabilizes, when it is ready to go public, Ronan is also preparing to plan a big move to further expand Netflix's influence and raise Netflix's stock price.

Ronan asked Robert Iger and Mark Randolph to appoint capable personnel and jointly formed a team to prepare for this.

If it can proceed as planned, Netflix's influence will spread to the world!

Howard Stringer approached Ronan and said, "I thought it would be you who signed today."

Ronan smiled: "Mark Randolph is the CEO of Netflix."

"It is said that you only spent 50 million US dollars on buying Netflix?" Howard Stringer asked.

"Almost." Ronan reminded: "But the funds invested in Netflix have been hundreds of millions of dollars."

The development of Netflix is ​​not as easy as it seems. Relativity Entertainment actually did not get any profit from Netflix. Netflix's profit was all invested in new business.

Howard Stringer said enviously: "But Netflix will bring you great rewards."

Ronan followed his words and said, "I also hope that this day will come soon."

Howard Stringer added: "In the competition between Netflix and Blockbuster, Sony Entertainment is on Netflix's side."

Ronan said, "Thank you."

Of course, this does not involve any favors, but pure business. It is not difficult for Sony Entertainment to choose the future or the past.

Sony Entertainment and its controlling MGM have accumulated a huge film library in Hollywood’s years of bankruptcy, acquisitions and annexations, including Samsung Pictures, Columbia Pictures, MGM and United American. Giant.

This time Netflix and Sony Entertainment’s licensing negotiations, the license is a huge library of up to 23,000 movies, TV series and cartoons.

There is no upfront cost. Because of the relationship between Netflix’s business volume and Relativity Entertainment, the licensing fee is completely in accordance with industry standards. For movies that have been sold in the past five years, Sony Entertainment charges a licensing fee of US$2.99 ​​for each lease. Old movies are $1.99.

This price can be said to be very low. Only Hollywood’s internal authorization adopts this industry standard.

Externally, the price of Hollywood authorization is much higher.

For example, Hollywood’s authorization to the Eastern market is at least three times the internal industry standard.

Therefore, the original Hollywood movie peripheral products on the oriental market were surprisingly expensive, and a considerable part of the cost was piled up with high licensing fees.

Ronan and Howard Stringer chatted for a while, and both were very satisfied with this cooperation.

Before Howard Stringer left, he took the initiative to shake hands with Ronan: "I hope we will have more cooperation in the future."

Ronan smiled and said, "I hope so, and happy cooperation."

Howard Stringer also said: "Happy cooperation."

The two sides are as harmonious as strategic partners.

Howard Stringer invited: "Ronan, do you have time? Let's talk a few words alone."

"Yes." Ronan certainly wouldn't refuse: "I also want to ask you about management experience."

The two left the meeting room and went to the luxurious reception room on the same floor.

At the same time, in the conference room a few floors below Ronan and Howard Stringer, also in the headquarters of Sony Columbia Pictures, a verbal negotiation is going on.

Arthur Macomb, who represents Marvel Entertainment, looked serious: "Columbia’s conditions lack sincerity. It only increases the share of the TV broadcast copyright authorization by 1%. Marvel Entertainment cannot accept it!"

The ghostwriter Best of Sony Columbia Pictures said: “Don’t forget the Spider-Man copyright contract. According to the contract, we don’t need to pay Marvel an extra cent. However, considering the good cooperative relationship between the two parties, we are willing to Make compensation!"

Arthur Macomb took out the information again and pushed it in front of Sony Columbia representatives, and said loudly: "Compensation? Good! For the first two "Spiderman" movies, you owed at least $10 million in legal shares to Marvel Entertainment. Please fill in this part, and we will talk about other compensation."

Not once or twice, the people at Sony Columbia are also accustomed to Arthur Macomb's shameless manner.

Best said very seriously: "I repeat, this 10 million dollars does not exist at all! If Mr. Macomb continues, we can only appeal to the law."

"Well, let's not talk about the 10 million US dollars for the time being." Arthur Macomb didn't want to be so shameless. He had no choice but to hold on to Sony Columbia. "Marvel Entertainment can also give up. A new interest appeal was added to the box office..."

Best hurriedly prepared, because he knew it would not be that simple.

Arthur Macomb said: "The film is produced by Sony Columbia, and Marvel will not take credit for Columbia. The copyright income of the "Spider-Man" movie itself, except for the existing part, other additional requirements can be abandoned by Marvel."

Best increased his vigilance: "What do you want?"

Arthur Macomb said directly: "All income from peripheral products belongs to Marvel."

"All peripheral products?" Best thinks Marvel and the crowd are crazy: "Sony will give up all the profits from the copyrights of toys and dolls in the Spider-Man movie?"

Arthur Macomb knew very well that he must be shameless, shameless, and shameless if he wants to continue the negotiations instead of being struck out by Sony. “Spider-Man’s mask is on his head. It’s all the same. This is Marvel Entertainment’s legitimate claims for the rights and interests of comics."

Best refused without hesitation: "Don't mention this kind of non-descriptive request, otherwise Sony Columbia Pictures refuses to negotiate again."

"Marvel Entertainment is committed to continuing to cooperate with Sony Columbia within the scope of reasonable profit distribution." Arthur Macomb continued to talk nonsense with his eyes open: "I don't want the relationship between Marvel Entertainment and Sony Columbia to evolve into the twentieth century. Like Fox."

Marvel Entertainment is in court with Twentieth Century Fox, everyone in the circle knows this.

Best's face is a bit dark, Marvel Entertainment is really determined to destroy his own son? He doesn't believe it, because Spider-Man is Marvel's signature!

As if guessing what Best was thinking, Arthur Macomb said in a seemingly calm tone: "The son who is sold is no longer a son. We sold even the son, let alone him. The little clothes left."

"Don't be so extreme." Sony Columbia has been trying to avoid this situation, and Best put his hands down slightly: "Mr. Macomb, we are talking. Before we finish talking, it is irresponsible to make any decision."

Spider-Man comics are completely in the hands of Marvel Entertainment. What Marvel really wants to do, and Sony Columbia Pictures can only watch Best’s boss confessed that the main goal of the negotiation is to drag , Hold on to Marvel Entertainment and make a decision based on the specific situation in the future.

Of course, it would be ideal if Marvel Entertainment could be dismissed by increasing the TV copyright share by one percent or similar terms.

Arthur Macomb also knows that Sony Columbia is dragging, but he has no good way. The contracts between Marvel Entertainment and Cannon Pictures, and Cannon Pictures and Sony Columbia Pictures are here. It's really hard to talk about.

But I still have to talk to find opportunities in it.

The two sides calmed down for a while, their voices increased again, and the negotiations even turned into a quarrel.

Judging from the situation of the negotiations, no one can see that the two companies have just reached a close cooperation agreement.

Also, the conversation between Ronan and Howard Stringer in the reception room was also very friendly, focusing on the next stage of cooperation.