The Best Entertainment Era

In the conference room of Sony Columbia Pictures, Howard Stringer, representing Sony Entertainment, glanced at the silent Ronan, picked up a pen to sign the contract.

Mark Randolph, representing the newly renamed Netflix network, signed his name to another contract.

Subsequently, the two parties exchange contracts and sign again.

The licensing agreement was formalized, and Howard Stringer shook hands with Mark Randolph.

There was warm applause in the meeting room.

Ronan was also applauding along with the crowd.

Starting from taking over the film library of Artisan Pictures, Relativity Entertainment and Netflix Network have never stopped looking for more film sources. They have reached an agreement with DreamWorks, Universal Pictures and Warner Brothers before, and got three companies. License for network use of film library.

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

This year, Netflix’s leasing business has surpassed Blockbuster’s leasing business in an all-round way. Anyone with a little vision can clearly see that it is only a matter of time before Netflix, which represents the future, defeats the old-fashioned Blockbuster.

The vast market of online rental is also eye-catching.

Therefore, Netflix has naturally changed from wanting to buy copyrights but not being able to buy them to many companies taking the initiative to talk about Internet licensing.

As directed by Ronan, all Internet licenses were negotiated as bundled licenses for DVD and online play.

This is also the streaming media business that is making final preparations for Netflix to develop more film sources.

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

Moreover, unlike Netflix’s licensing method, which charges high upfront fees when its business volume is small, all companies negotiating with Netflix for authorization focus on and demand the later share.

The high-speed development of Netflix's business volume is here. It is purely a problem in the head to ask for a high upfront fee and a low proportion of the later share.

Almost all authorization negotiations basically do not involve upfront costs, and the authorizations of both parties are generally based on the later sharing.

Netflix's current three ace businesses,

In terms of social sharing, video and picture sharing, and DVD rental and sales, the real profit is DVD rental and sales.

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

What's more, when Netflix's streaming media business starts and stabilizes, and prepares to go public, Ronan is also preparing to plan a big move to further expand Netflix's influence and drive up Netflix's stock price.

Ronan asked Robert Iger and Mark Randolph to pull out elite personnel and jointly form a team to prepare for this.

If it goes according to plan, Netflix's influence will spread all over the world!

Howard Stringer approached Ronan and said, I thought it was you who signed today.

Ronan smiled: Mark Randolph is the CEO of Netflix.

It was said that you bought Netflix for only $50 million? Howard Stringer asked.

It's about the same. Ronan reminded: But the funds invested in Netflix are hundreds of millions of dollars.

The development of Netflix is ​​not as easy as it seems. Relativity Entertainment did not actually get any profits from Netflix, and all of Netflix's profits were invested in new businesses.

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

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

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 actually not difficult for Sony Entertainment to choose the future or the past.

Sony Entertainment and its controlling MGM have accumulated a huge film library during years of bankruptcy, acquisitions and annexations in Hollywood, including Samsung Pictures, Columbia Pictures, MGM and United Artists. giant.

This time, Netflix and Sony Entertainment have negotiated a licensing agreement, and what has been authorized is a huge library of 23,000 movies, TV series and cartoons.

There is no upfront fee, 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 sold well 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, and only Hollywood's internal authorization adopts this industry standard.

Externally, the price of Hollywood licensing 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 in the eastern market were surprisingly expensive, and a considerable part of the cost was piled up from high licensing fees.

Ronan chatted with Howard Stringer 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 said with a smile: I hope so too, happy cooperation.

Howard Stringer also said: It's a pleasure to work with.

The two sides are as harmonious as strategic partners.

Howard Stringer invited: Ronan, do you have time? Let's chat alone.

Yes. Of course Ronan would not refuse: I would also like to ask you for some experience in business management.

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

Meanwhile, in a conference room a few floors below Ronan and Howard Stringer's, also at Sony's Columbia Pictures headquarters, a war of words was underway.

Arthur Macomb, representing Marvel Entertainment, looked serious: Columbia's conditions lack sincerity, and only increase the share of 1% of the TV broadcast copyright authorization, Marvel Entertainment cannot accept it!

Best, who ghostwritten Sony Columbia Pictures, said: Don't forget about the copyright contract of Spider-Man. According to the contract, we don't need to pay Marvel an extra penny, but considering the good cooperation between the two parties, we are willing to pay Marvel. Make amends!

Arthur Macomb took out the information again, pushed it in front of the representatives of Sony Columbia, and said loudly: Compensation? Good! You owe Marvel Entertainment at least 10 million US dollars in legal cuts for the first two Spider-Man movies, Please complete this part, and we will discuss other aspects of compensation.

After talking about it not once or twice, the people at Sony Columbia are also used to Arthur Macomb's shameless behavior.

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

Well, let's not talk about the 10 million dollars for the time being. Arthur Macomb didn't want to be so shameless, but the higher-ups were holding on tightly, and they must bite Sony Columbia: Marvel Entertainment can also give up Add new interest appeals to the box office...

Best prepared quickly, because he knew that things would not be so simple.

Arthur Macomb said: The film is produced by Sony Columbia. Marvel will not take credit for Columbia. Except for the existing part of the copyright income of the Spider-Man movie itself, Marvel can give up all the additional requirements.

Best raised his vigilance: What do you want?

Arthur Malcolm said directly: All revenue from peripheral products belongs to Marvel.

All the peripheral products? Best felt that the Marvel group was crazy: Sony will give up all the income from the copyrights of the toys, dolls and other images in the Spider-Man movies?

Arthur Macomb is very clear that if he wants to continue the negotiation, instead of being knocked out by Sony, he must be shameless, shameless, and shameless: Spiderman's mask is on his head, the image It’s all the same. This is Marvel Entertainment’s legitimate demand for comic peripheral rights.”

Best refused without hesitation: This kind of unreasonable request should not be raised, otherwise Sony Columbia Pictures will refuse to negotiate again.

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

Marvel Entertainment is in court with 20th Century Fox, and everyone in the industry knows this.

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

As if guessing what Best was thinking, Arthur Malcolm said in a seemingly calm tone: The son who is sold is no longer his own son. We even sold our own son, let alone his son. The little clothes left.

Don't be so extreme. Sony Columbia has been trying its best to avoid this situation. Best lowered his hands slightly: Mr. Macomb, we are talking, and it is irresponsible to make any decision before the talk is over.

The Spider-Man comics are completely in the hands of Marvel Entertainment, and Sony Columbia Pictures can only watch what Marvel really wants to do.

Best's boss explained that the main goal of the negotiation is to delay 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 1% or similar terms.

Arthur Macomb also knew that Sony Columbia was procrastinating, but he didn't have a good solution. The contracts between Marvel Entertainment and Cannon Pictures, and Cannon Pictures and Sony Columbia Pictures were here, which was really hard to talk about.

But still have to talk to find opportunities from it.

The two sides calmed down for a while, and the tone rose again, and the negotiation even had a tendency to evolve into a quarrel.

Judging from the state of the negotiations, no one could see that the previous companies of the two companies had just reached an agreement for close cooperation.

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