Chapter 699 Unchangeable business theme
In the conference room of Sony Columbia Pictures, Howard Stringer, who represents Sony Entertainment, glanced at Ronan, who was silent, picked up a signing pen and signed the contract.
Mark Randolph, who recently renamed Netflix Network, 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.
Warm applause rang out in the conference room.
Ronan was also applauding with everyone.
Since taking over the film library of Yijiang Film, Relativity Entertainment and Netflix Network have never stopped looking for more film sources. They have reached an agreement with DreamWorks, Universal Pictures and Warner Bros. and obtained the network usage authorization of the film library of three companies.
With the development of Netflix, the sales and leasing of DVD businesses have skyrocketed, and the difficulty of negotiations between Netflix and other companies has suddenly decreased.
This year, Netflix's leasing business volume exceeds that of Pepsika's leasing business. Anyone with a little vision can see clearly. It is only a matter of time before Netflix will defeat the old-fashioned Pepsika.
The vast market for online rental is also jealous.
Therefore, Netflix naturally changed from wanting to not be able to buy copyrights, and many companies took the initiative to talk about Internet authorization.
According to Ronan's instructions, all Internet authorizations are negotiated with DVD and online playback bundled authorization.
This is also the streaming media business that is being prepared for Netflix and developing more film sources.
It is important to attract attention from new works, but old movies also have a large audience.
Moreover, unlike the authorization method that has little business volume, which requires high preliminary fees, all companies that negotiate authorization with Netflix are targeted and required to divide the target and demand this part in the later stage.
Netflix's rapid development of business volume is here, and it requires high early expenses and low proportions to share the later share, which is purely because there is a problem with the brain.
Almost all authorization negotiations do not involve pre-stage fees, and the authorizations of both parties will generally become the main ones in the future.
Netflix's current three ace businesses, social sharing, video and picture sharing and DVD rental and sales, is the real profitable one.
However, the first two effectively drive the number of users of the latter, and the three are organic wholes that can drive each other.
Moreover, when Netflix's streaming business is launched and stabilized and ready to go public, Ronan is also preparing to plan a major action to further expand Netflix's influence and increase Netflix's stock price.
Ronan asked Robert Eiger and Mark Randolph to draw capable personnel to form a team to prepare for this.
If it can be carried out according to the plan, Netflix's influence will spread all over the world!
Howard Stringer found Ronan and said, "I thought it would be you who signed the contract today."
Ronan smiled: "Mark Randolph is the CEO of Netflix."
"It is said that you only spent $50 million on Netflix at that time?" asked Howard Stinger.
"It's almost the same." Ronan reminded: "But the funds invested in Netflix are hundreds of millions of dollars."
Netflix's development is not as easy as it seems. Relativity Entertainment has not actually made any profits from Netflix, and Netflix's profits have been invested in new businesses.
Howard Stringer said enviously: "But Netflix will bring you rich rewards."
Ronan followed his words and said, "I hope I will arrive soon this day."
Howard Stringer said: "In the competition between Netflix and Pepsika, Sony Entertainment is on Netflix's side."
Ronan said, "Thank you."
Of course, this does not involve any favors, but a pure business. It is actually not difficult for Sony Entertainment to choose whether to go to the future or the past.
Sony Entertainment and MGM, which holds shares, have accumulated a huge library of films in Hollywood's bankruptcy, acquisitions and annexes for many years, including former Hollywood giants such as Samsung Pictures, Columbia Pictures, MGM and United.
This time Netflix Network and Sony Entertainment's authorization negotiations were granted a huge library of films of up to 23,000 movies, TV series and cartoons.
There is no upfront fee, because Netflix's business size and Relativity Entertainment, the licensing fee is completely based on industry standards. For every time a customer rents a video in the past five years, Sony Entertainment charges a licensing fee of US$2.99, while the rest of the old movies are US$1.99.
This price can be said to be very low, only within Hollywood authorization, adopting this industry standard.
Externally, the price of Hollywood licensed is much higher.
For example, Hollywood's authorization for the Oriental market is at least three times that of internal industry standards.
Therefore, the authentic Hollywood movie peripheral products in the Oriental market were surprisingly expensive, and a considerable part of the cost was piled up with high licensing fees.
Ronan chatted with Howard Stringer for a while, and they were all very satisfied with the cooperation.
Before Howard Stringer left, he took the initiative to shake hands with Ronan: "I hope we will cooperate more in the future."
Ronan smiled and said, "I hope so too, and the cooperation is pleasant."
Howard Stringer also said: "Happy cooperation."
Both parties are as harmonious as strategic partners.
Howard Stringer invited: "Ronan, do you have time? Let's talk a few words alone."
"Yes." Of course, Ronan would not refuse: "I also want to ask you about business management experience."
The two left the conference room and went to the luxurious reception room on the same floor.
Meanwhile, in the conference room several floors lower than Ronan and Howard Stinger, a verbal negotiation is underway at the Sony Columbia Films headquarters.
Arthur Macomb, who represents Marvel Entertainment, looked serious: "Columbia's conditions lack sincerity, and only increased the share of one percent of the copyright authorization for TV broadcasting, which Marvel Entertainment cannot accept!"
Best of Sony Columbia Pictures said: "Don't forget Spider-Man's copyright contract. According to the contract, we don't need to pay Marvel an extra cent, but considering the good partnership between the two parties, we are willing to compensate Marvel!"
Arthur Macomb took out the information again, pushed it to Sony Columbia representatives, and shouted: "Compensation? OK! For the first two "Spider-Man" movies, you owe Marvel Entertainment at least $10 million in legal share. Please make up for this part, and we will talk about other compensation."
After talking about it once or twice, people from Sony Colombia are also used to the shameless style of Arthur Macomb.
Best said very seriously: "I'll say it again, this $10 million does not exist at all! If Mr. Macomb continues, we can only sue it to the law."
"Okay, let's not talk about the $10 million for the time being." Arthur Macomb didn't want to be shameless, but he had to hold on tight, so he must bite Sony Columbia: "Marvel Entertainment can also give up adding new interest demands to the box office..."
Best quickly prepared because he knew things wouldn't be that simple.
Arthur Macomb said: "The film comes from Sony Columbia production. Marvel will not steal Columbia's credit. The copyright income of the Spider-Man movie itself is not the case with the existing part, but the rest of the additional requirements Marvel can give up."
Best raised his vigilance: "What do you want?"
Arthur Macomb said directly: "All revenue from peripheral products belongs to Marvel."
"All peripheral products?" Best felt that Marvel and other people were crazy: "Sony will give up all the benefits of copyrights such as toys and dolls in Spider-Man movies?"
Arthur Macomb knew very well that if you want to continue the negotiations instead of being struck out by Sony, you must be shameless, shameless, and shameless: "The Spider-Man's mask is put on his head, and the image is the same. This is Marvel Entertainment's legitimate comic-related rights appeal."
Best refused without hesitation: "Don't mention this non-substantiated request, otherwise Sony Columbia Pictures will refuse to negotiate again."
"Marvel Entertainment is committed to continuing to cooperate with Sony Columbia within the scope of reasonable distribution of interests." 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 20th Century Fox."
Marvel Entertainment is in court with Twentieth Century Fox, and everyone in the circle knows this.
Best's face turned a little 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 he guessed what Best was thinking, Arthur Macomb said in a seemingly stable tone: "The sold son is no longer the biological son. We even sold the biological son, let alone the little clothes he left behind."
"Don't be so extreme." Sony Columbia has been trying to avoid this situation, and Best pressed down slightly with his hands: "Mr. Macomb, we will make any decision before we finish talking, and it is irresponsible."
Spider-Man comics are completely in the hands of Marvel Entertainment. What Marvel really wants to do, Sony Columbia Pictures can only watch.
Best's boss told the negotiations that the main goal is to delay Marvel Entertainment and make a decision after deciding on the specific situation in the future.
Of course, it would be ideal to dismiss Marvel Entertainment by increasing the share of TV copyrights by one percent or similar terms.
Arthur Macomb also knows that Sony Columbia is dragging, but he doesn't have a good idea. The contract between Marvel Entertainment and Cannon Films and Cannon Films and Sony Columbia Pictures is here, which is really hard to talk about.
But we still have to talk about it to find opportunities.
The two sides calmed down for a while, their tone increased again, and negotiations even had a tendency toward quarrels.
Judging from the negotiation situation, no one can tell that the two companies' previous companies have just reached a close cooperation agreement.
Chapter completed!