701 Unlimited Potential
With the hit of the third season of cartoons, the popularity of "Peppa Pig" has skyrocketed, and the ratings of children's cartoons with low collars this year have steadily ranked first.
Along with it, it is a big sale in the periphery.
Those merchants with a keen sense of smell will not miss such a striking opportunity to make money, and in October alone, Relativity Entertainment received nearly 150 manufacturers who came to negotiate licensing.
Peppa Pig has become a veritable popular fried chicken.
Peppa Pig has a tattoo on her body, and applause is given to the society!
After Relativity Entertainment reached a licensing agreement with Hasbro, various licensing negotiations were also concluded.
All licensing fees are paid upfront plus post-sharing, such as the canvas bag in the school bag, for which the manufacturer Kassel pays $1 million upfront and 25% of future sales revenue.
That's very close to Warner Bros.'s price for licensing a Harry Potter spin-off.
Licensing derivatives of popular cartoons often has an advantage over live-action films.
In just one week, Relativity Entertainment sold a number of licenses, watches, school bags, stationery boxes, canvas bags, children's wallets, sterling silver pendants, crystal stickers, night lights, dinner plates, various cups, toothpaste and toothbrushes, wall stickers, umbrellas, slides and dollhouses, etc.
Nearly 100 categories of authorizations, upfront costs of $63.5 million were accounted for.
Children's snacks alone have sold more than 20 licenses.
For example, watch candies, fruit stands, milk chips, funny eggs, probiotics, sandwich biscuits and lollipops, etc.
The proportion of the later share varies from 20% to 30% depending on the product and the merchant.
Although Relativity Entertainment also sells derivatives through the channel of Embassy Pictures, the market coverage of a company is really limited, and hundreds of manufacturers can bring more revenue by working together.
Relativity Entertainment has set up a licensing project team specifically for the "Peppa Pig" derivative, and according to the project team's planning, it is not a matter to sell a few hundred more licenses.
Ronan vaguely remembers the relevant reports he had read, at that time, there were more than 800 global licensees of "Peppa Pig" derivatives, and the number was still increasing rapidly, and it was only a matter of time before the number of more than 1,000 was broken.
Think of Disney's Mickey Mouse, where there are thousands of licenses.
According to Ronan, Peppa Pig derivatives should cover all aspects of a child's growth, from life to learning to play.
At present, among the single character derivatives of Relativity Entertainment, Peppa Pig rushed to the first place almost frantically as soon as he made a force, and even Captain Jack Sparrow, who was popular with fans, had to bow down.
A huge children's market with unlimited potential.
Ronan even considered whether to erect a giant pink pig on top of the Relativity Building?
According to what was once said in Internet literature, the one who came out to mix and shouted the most was always the first to die.
It is said that pretending to be a pig and eating a tiger is the supreme law of the rivers and lakes.
This is just the beginning, Pink Pig is just getting started, and Ronan looks forward to the day when Peppa Pig brings hundreds of millions of dollars in revenue to Relativity Entertainment every year.
In the Relativity Building, Mark Randolph took the elevator to the top floor with a tired face and walked into Ronan's office.
Ronan asked for a cup of tea and asked, "How were the talks?"
Mark Randolph put down his teacup: "I met with Alan Horn today and basically reached an agreement with him that he will soon be able to get the license from Disney Studios and Disney Animation Studios. ”
Ronan nodded slightly: "Yes, I got another company." ”
Mark Randolph said: "But the negotiations between Disney's Touchstone Pictures and Hollywood Studios are not going well, and they have no intention of cooperating with Netflix." ”
Ronan was not surprised: "We can't get the support of all the companies. That's already good, and Netflix has more than a thousand more movie licenses. ”
Mark Randolph added: "We're pretty much done with the Weinstein brothers in Miramax and expect to sign this week. ”
"That's all good news. Ronan said.
Miramax was founded in the 70s of the last century, and he doesn't shoot many films himself, but he has also bought other companies in the middle, and there seem to be more than 700 films in the film library.
How long the Weinstein brothers can control Miramax, even they can't say, they must seek the best interests.
Mark Randolph asked curiously, "From my contacts with Disney's various companies, it seems that Disney is divided internally?"
Ronan certainly understands Disney's situation, saying: "The situation at Disney is complicated, but Alan Horn, the co-chairman of Disney Studios, is a capable and clear-headed person, and he will make the best choice for Disney Pictures, and there should be no surprises." ”
Among the six major companies, Warner Bros., Universal Pictures, Sony Columbia and some companies owned by Disney have confirmed their licenses to Netflix. Mark Randolph feels that the efforts of more than half a year have paid off: "The remaining Paramount Pictures, which belongs to the same Viacom Group as Pepsi, Shirley Lansing refuses to negotiate with us. Twentieth Century Fox ......"
He smiled embarrassedly: "Some time ago, Netflix grabbed an Internet technology company from Twentieth Century Fox and raised the price for other acquisitions, and they didn't contact us at all. ”
"Twentieth Century Fox has spent hundreds of millions of dollars, acquired a number of Internet companies, is in the process of internal integration, and has a clear intention to enter the Internet entertainment industry, and it is normal not to authorize it," Ronan said. ”
Twentieth Century Fox and Marvel Entertainment are fighting bloodshed, and the relationship with Relativity Entertainment is not good, and Netflix is constantly stumbling in the acquisition of Twentieth Century Fox, and it is strange that Twentieth Century Fox is willing to license Netflix.
Mark Randolph said: "Netflix will have more and more competitors. ”
"So, you have to be strong. Ronan said slowly: "No matter how many competitors there are, Netflix must be the leader of the industry it is engaged in." ”
Mark Randolph took a sip of tea and said: "The video resources are almost ready, and Netflix of "Prison Break" and "Survival in the Wild" also called old users to try it out, and the evaluation is very high. With attractive new titles and tens of thousands of old titles, the streaming business is sure to be a success. ”
Ronan asked with concern, "What's going on with the technical preparations?"
"It's just the technology. Mark Randolph also knew that Ronan was not very knowledgeable about Internet technology, and said as easily as possible: "The technical preparation has reached the final stage, after Netflix applies the new transmission technology, the video definition and transmission speed have been significantly improved, and it can provide different definition versions of video content, if the user's hardware meets the requirements, the maximum can be watched online with a video that is no less than the definition of a Blu-ray disc." ”
Ronan doesn't understand Internet technology, but he knows the effect of Blu-ray discs, in the previous BD and HD disputes, Relativity Entertainment has long stood on the side of Sony's BD technology, which is one of the reasons why the relationship between Relativity and Sony has always been good.
Although there are major differences between the two sides on "Spider-Man", both sides of this contradiction are tacitly controlled by Marvel Entertainment and Sony Columbia.
Ronan said: "If the streaming media plan goes well, after the business stabilizes, we will pay attention to developing two markets in the future." ”
Mark Randolph looked at Ronan, a technical layman, but very forward-looking in his judgment of the direction of the market and the direction of the industry.
Netflix's development has amply demonstrated this.
"In the future, the technology can meet the requirements of marketization, and Netflix will further cooperate with communication companies to strive to appear in front of TV users through cable set-top boxes. Ronan is talking about what Netflix has successfully done, and it may not be possible in the next few years, but it will take time for the technology to accumulate: "On the other hand, the client in the smartphone field. ”
Manufacturers such as Motorola launched smartphones that sold quite well last year, and another major mobile phone giant, Nokia, is also said to be targeting this market.
Mark Randolph said: "The mobile app is the next key area for Netflix, and the client for social networking, video sharing and rental and sales has been developed and is currently being tested and adjusted. A client for the streaming service is also under development and will be fully available in January next year. ”
He paused and organized his language slightly: "We are currently in talks with companies such as Motorola, Nokia and Samsung to make Netflix a pre-installed program for these manufacturers. ”
Ronan nodded with satisfaction and reminded, "And Apple! Apple's smartphone is under development, and I will ask Scott Swift to assist you and get in touch with Apple." ”
"Okay. Mark Randolph has doubts: "Apple has never been involved in mobile phone making before. ”
Ronan knew the power of the kidney machine and said, "I am a shareholder of Apple, and I have seen the concept machine, which is ...... How to put it, it will become a popular fashion. ”
Apple's products are successful, but even more successful is Apple's marketing.
Smart phones have entered the market, the mobile phone entertainment market is about to kick off, Netflix in addition to the Internet itself, but also to the field of smart phone terminals.
Perhaps, Netflix will be considered an important reason for the birth of the Bow Clan in the future.
Ronan is very clear that the Internet market is very large, Netflix cannot develop in all aspects, and as long as the existing and upcoming businesses are done well, it will inevitably be one of the Internet giants in the future.
"By the way, the technical department reminded me that the mobile phone system is relatively chaotic now, and if I only do mobile phone client development, it will be in the downstream of the industrial chain. Mark Randolph said at this time: "The technical department and the business research department have recommended me several mobile phone system development companies, and one of them has a very strong development team, and I think Netflix can buy them." ”
He opened his briefcase and said, "This is a small company founded in 2003, and there are no products for the time being. ”