Whether it is a record company or a movie company, the most important resource is distribution channels.
The reason why the Big Six in Hollywood are the Big Six is because they have mastered distribution channels at home and abroad. Many second-tier film companies need the distribution channels of the Big Six.
If a second-tier company knew that Fox Pictures would be acquired in the future, Xin Yiheng might become Fox's successor and become one of the Big Six.
But that is a matter in the film business. In the record industry, those who have broad distribution channels around the world are undoubtedly international entertainment industry giants such as Universal, Warner Records, Sony Music, and Rolling Stone Records.
The more famous ones in the Chinese-speaking area are probably Huayan Records and Emperor Entertainment. In the mainland, there are also large record distribution companies such as Huayi Brothers and Modern Sky.
As for others, such as Starlight Records and Huang Records, they both belong to second-tier groups. In the field of digital distribution, the market is naturally occupied by a number of Internet giants, such as Apple and Amazon overseas, Penguin NetEase domestically, etc.
In the 1990s, based on the strength of the Chinese music scene, Chinese record companies had a large distribution market in East Asia and Southeast Asia.
However, after the turn of the millennium, the record industry as a whole declined, and the Chinese music scene could not afford to fall. As a result, the entire record market in East Asia and Southeast Asia was occupied by Japan, South Korea, Europe and the United States.
Nowadays, it is very difficult for many Chinese-language record companies to even hold on to the local market, let alone expand overseas markets.
Therefore, although Fantasy Studio has become famous in the domestic record market with "Jay", it has no overseas markets and channels to speak of.
Therefore, when Sony Records came to the door and wanted to cooperate with Fantasy Studio to obtain the distribution rights in Japan, South Korea and Southeast Asia, Fan Noxuan started negotiations very happily.
"Mr. Fan, Sony is the world's largest record distribution company. It is a very wise choice for your singers to be represented by Sony." Tang Hao, Sony's China business representative, is responsible for negotiating with Fantasy Studio.
"Of course I know the strength of your company, but the 40% share ratio is too high and our studio cannot accept it," Fan Noxuan said.
"Mr. Fan, you have to understand that the publisher needs to spend a lot of resources in the process of transferring, warehousing and selling records, and 40% is really not high.
And you have to know that Chinese singers have not had outstanding commercial performance in the international record market for many years, so this share ratio is already very reasonable." Tang Hao said.
"We spent a lot of energy and time producing this album, and producer Li Hyuk devoted all his talents to create such an album of high quality.
According to your company's distribution share, we can't even earn a penny of profit, and we may have to compensate Sony for a certain distribution share. This is unacceptable to us in any case." Fan Noxuan was firm and disagreed with this.
Negotiations on the profit-sharing plan reached a deadlock as soon as they began.
There are many people who don’t understand the sharing model of an album, and there are many situations.
Take the "Jay" album as an example. The digital album is released on QQ Music. The producer is Fantasia Studio, the publisher is QQ Music, and the songwriting and singing are all Li He.
QQ Music will take 30% of the total digital album sales as a distribution share, and the producer Fantasy Studio will take 40% of the remaining 70%. As a songwriter,
Li Hyuk, the singer, could only get 30% of the proceeds.
It seems very unfair. I obviously wrote the song and sang it, so why did I get the least?
The reason is very simple, it lies in distribution channels and production costs.
It costs money for a record company to produce an album for you, and it also requires a lot of money and resources to promote and promote it. If you are not a philanthropist, why should you do it for free?
In fact, if Li Hyuk was not the songwriter, he would only receive about 10% of the singer's share.
So I used to say that I loved singing so-and-so’s songs, but in fact only 10% of the entire song belongs to the singer himself, unless he is the original creator.
The above is just an ideal sharing method. The actual situation is much more responsible than this, not to mention the physical album, in addition to production costs, master recording, and dealer sharing, etc.
The profits of the record industry are getting lower and lower. The "Jay" album released by Fantasy Studio this year brought almost 20 million in revenue to the studio. After deducting various costs, the profit was only over 15 million. Of course,
, don’t forget to pay taxes.
Li Hyuk personally also received nearly 10 million in share income, and there will be a steady stream of copyright income in the future. It is a long-term meal ticket.
There is another question. Since the copyright of lyrics and music belongs to Li Hyuk personally, doesn’t Fantasy Studio have no copyright?
Of course, Fantasy Studio owns the copyright of the original master tape, and any future singers will need to obtain the copyright of the master tape for commercial use. This is also one of the main sources of income for Fantasy Studio.
It is precisely because of the complexity of copyright sharing that Fantasy Studio would not agree to open its mouth to Sony's lion. It would rather develop the international market later to ensure basic profits.
Sony and Fantasy Studios failed to reach an agreement, and other major record companies took notice of the situation, and Warner Records approached them.
However, the conditions of Warner Records were even more stringent than those of Sony Records, so Fan Noxuan refused without even thinking about it, and the matter dragged on.
As the end of the year approaches, the popularity of "Jay" is gradually declining. So many things happen in the entertainment industry every day, such as cheating today, divorce tomorrow, and popular TV series and variety shows being aired the day after tomorrow.
Singers like Lee Hyuk, who basically keep a low profile in front of the public media, have gradually been forgotten by the public. Only fans who have repeated singles are still waiting.
The scandal between Ying Bao and Li Hyuk had been hyped for two days. When Ying Bao's team saw Li Hyuk's basically uncooperative attitude, they gave up and went back to hyping up other scandals.
It is a commonly used method in the entertainment industry. The person who used this trick best was Fan Ye. Other actresses followed suit and became very popular one by one.
If there are no big changes in the world, Mr. Fan will soon fall over. I hope these female stars will not learn this trick.
The most important event at the end of the year is probably the New Year's Eve parties of major TV stations. After all, Li Hyuk is also a singer who came out of the top ten singers competition on campus at Bilibili, and Bilibili is also a shareholder of Fantasy Studio.
So at the end of the year, Li Hyuk rejected invitations from several satellite TV stations and went to Station B's Most Beautiful Night New Year's Eve concert.
Station B is not attractive enough. Li Hyuk and Xu Shangao are actually the biggest guests. In addition, bands and singers such as Guns N’ Roses and Xuanzi are also present.
When Li Hyuk saw that this was a bit shabby, he called Yang Zi, who had collaborated with him on advertising songs, and invited her to attend the New Year's Eve concert at Station B.
"I didn't expect you to invite me, what a surprise!" Yang Zi was having dinner with her good friend Zhang Yishan when she received a call from Li He.
Li Hyuk on the other end of the phone was biting his pen and signing various documents while smiling: "The song "Sour and Sweet Is Me" you sang is also a popular song. Many girls like it. It's not strange to invite you.
Let’s do it!”
Yang Zi smiled and said: "I have to thank you for this. I didn't expect this song to be so effective. I actually have fans. I don't have to worry about not singing when I participate in commercial performances."
Although "Sour, Sweet and Sweet Is Me" is a saliva song, it is considered to be of the highest quality among saliva songs. Coupled with Yang Zi's sweet voice, the former Xia Xue has turned into a cocoon and turned into a butterfly, becoming a new generation of boy killers.
"You don't need to thank me. After all, I received the money. If you ask me for songs in the future, I will give you a 20% discount." Li He said.
"OK, you can't go back on your word, I've already recorded it." Yang Zi was happy.
Li He smiled and said: "A gentleman's words are hard to follow, but I keep my word."
In the end, under the temptation of Li Hyuk's song, Yang Zi gave up attending the New Year's Eve party of Blue Channel and joined Station B instead.
However, Yang Zi was still considered a second-tier TV star at this time, with a small celebrity status, and did not attract the attention of other audiences except fans.