Chapter 699 - Unchanging 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 pen and signed the contract.

On behalf of Mark Randolph, who was recently renamed Netflix Network, signed his name on a separate contract.

Subsequently, the two parties exchanged contracts and signed them again.

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

There was a round of applause in the room.

Ronan was also clapping along with the crowd.

Since winning the film library of Yijiang Pictures, Relativity Entertainment and Netflix have never stopped their work to find more film sources, and have previously reached agreements with DreamWorks, Universal Pictures and Warner Bros. to obtain the network use license of the three companies' film libraries.

As Netflix grew, the sale and rental of DVDs skyrocketed, making it more difficult for Netflix to negotiate with other companies.

This year, Netflix's leasing business volume has surpassed Pepsi's leasing business in an all-round way, but anyone with a little vision can see clearly that it is only a matter of time before Netflix, which represents the future, defeats the old-fashioned and conservative Pesda.

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

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

Following Ronan's instructions, all Internet licenses are negotiated for DVD bundled licenses with online playback.

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

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

And unlike the licensing method when Netflix has a small amount of business, which charges high upfront fees, all the companies that negotiate with Netflix to authorize are eyeing and asking for this part later.

Netflix's fast-growing business volume is here, and it is purely a problem to have a high upfront cost and a low proportion of later share.

Almost all licensing negotiations basically do not involve upfront costs, and the authorization of both parties is generally based on post-sharing.

Netflix's current three trump card businesses, social sharing, video and picture sharing, and DVD rental and sales, the real profit is DVD rental and sales.

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

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

Ronan asked Robert Iger and Mark Randolph to assemble a team to prepare for this.

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

Howard Stringer approached Ronan and said, "I thought you were going to sign today." ”

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

"It's said that you only bought Netflix for $50 million at the time?" asked Howard Stringer.

"Pretty much. Ronan reminded: "But the money invested in Netflix has hundreds of millions of dollars." ”

Netflix's development, where is it as easy as it seems, Relativity Entertainment actually does not get any profit from Netflix, Netflix's profits are all invested in new businesses.

Howard Stringer said with envy: "But Netflix will bring you a good reward." ”

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

Howard Stringer added: "In the competition between Netflix and Pepsi, Sony Entertainment is on the side of Netflix. ”

Ronan said, "Thank you. ”

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

Sony Entertainment and MGM, the controlling company, have amassed a vast library of films from years of bankruptcy, acquisitions and mergers in Hollywood, including Samsung Pictures, Columbia Pictures, MGM and Luen America.

This time, Netflix Network and Sony Entertainment have obtained the license for 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, and for the films that have been sold in the past five years, Sony Entertainment charges $2.99 for each lease of the film, and $1.99 for the rest of the old films.

This price can be said to be very low, only authorized by Hollywood to adopt this industry standard.

Externally, the price of a Hollywood license is much higher.

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

Therefore, the genuine Hollywood movie peripheral products in the Oriental market used to be surprisingly expensive, and a considerable part of its cost was piled up by high licensing fees.

Ronan chatted with Howard Stringer for a while, and both were very happy with the collaboration.

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, happy cooperation." ”

Howard Stringer said: "It's been a pleasure to work with. ”

The two sides are as harmonious as strategic partners.

Howard Stringer invited, "Ronan, do you have time? ”

"Yes. Of course, Ronan will not refuse: "I also want to ask you about your experience in business management." ”

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

Meanwhile, in the same conference room at Sony's Columbia Pictures headquarters, a few floors below Ronan and Howard Stringer, a fiery negotiation is underway.

Arthur Malcom, who represents Marvel Entertainment, has a serious face: "Colombia's conditions lack sincerity, and only one percent of the TV broadcast copyright authorization is increased, which Marvel Entertainment cannot accept!"

"Don't forget the Spider-Man copyright contract, according to the contract, we don't have to pay Marvel a penny more, but given the good relationship between the two parties, we are willing to compensate Marvel!"

Arthur Malcolm took out the information again, pushed it in front of the Sony Columbia representatives, and said loudly: "Compensation? Okay! For the first two "Spider-Man" movies, you owe at least $10 million to Marvel Entertainment for its legal share, please make up this part, and we will talk about other compensation." ”

It's not once or twice, and the people of Sony Columbia are also used to Arthur Malcombe's shameless style.

Best said very seriously: "I repeat, this $10 million does not exist! If Mr. Malcolm continues, we will have to resort to the law." ”

"Well, let's not talk about the $10 million for now. Arthur Malcolm didn't want to be so shameless, so he had no choice but to hold on tightly, and he must bite Sony Columbia: "Marvel Entertainment can also give up adding new interests to the box office......"

Best hurried to get ready because he knew it wouldn't be that simple.

Arthur Malcolm said: "The film is produced by Sony Columbia, Marvel will not take the credit of Columbia, and the copyright income of the "Spider-Man" movie itself, except for the existing part, the rest of the additional requirements Marvel can give up. ”

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

Arthur Malcolm said directly: "All the revenue from peripheral products is owned by Marvel. ”

"All peripheral products?" Best felt that the Marvel group was crazy: "Sony wants to give up all the income from the copyright of toys, dolls and other images in the Spider-Man movie?"

Arthur Malcolm is well aware that in order to continue the negotiations and not be knocked out by Sony, one must be shameless, two shameless, and three is still shameless: "Spider-Man's mask is on his head, and the image is the same. This is Marvel Entertainment's legitimate appeal for the rights and interests of comics. ”

Best refused without hesitation: "Don't mention this kind of non-sub-demand, otherwise Sony Columbia Pictures will refuse to negotiate again." ”

"Marvel Entertainment is committed to continuing its partnership with Sony Colombia within a reasonable distribution of benefits. Arthur Malcolm continued to talk nonsense with his eyes open: "I don't want Marvel Entertainment's relationship with Sony Columbia to evolve into a twentieth century Fox look. ”

Marvel Entertainment is going to court with Twentieth Century Fox, and everyone in the circle knows that.

Best's face is 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 guessing what Best was thinking, Arthur Malcolm said in a seemingly smooth tone: "The son who is sold is no longer his own son." We even sold our own son, not to mention the little clothes he left behind. ”

"Don't be so extreme. Sony Colombia has been trying to avoid this situation, and Best pressed down his hands slightly: "Mr. Macombe, it is irresponsible for us to make any decision before we talk." ”

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

Best's boss explained that the main goal of the negotiation is to delay, drag Marvel Entertainment, and make a decision after seeing the specific situation in the future.

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

Arthur Malcolm also knows that Sony Columbia is dragging, but he doesn't have a good way, and the contracts between Marvel Entertainment and Cannon Pictures, Cannon Pictures and Sony Columbia Pictures are here, and it's really hard to discuss.

But it is still necessary to talk in order to find opportunities from it.

The two sides calmed down for a while, the tone raised again, and the negotiations even tended to evolve into quarrels for a while.

Judging from the dynamics of the negotiations, no one can see that the predecessors of the two companies have just reached an agreement on close cooperation.

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