Before the British Gramophone Company acquired EMI, EMI Records mainly had two institutions in China: "General Distribution Office" and "China Record Company".
In the first half of last year alone, the gross profit of "China Record Company" reached 100,000 yuan, but the "general distribution office" lost a full 80,000 yuan. Putting aside various expenditure costs, EMI Records has actually been losing money for four consecutive years.
The main reason is that the current situation is turbulent, from the Central Plains War to the December 8th Incident, which has made EMI's distribution business very difficult.
You know, EMI's "main distribution office" is responsible for nearly half of the distribution business of record companies in China. Due to the war, records were recorded in Shanghai and could not be transported to other markets, let alone sold.
Is it possible to avoid serious losses?
Just at the beginning of this year, British Gramophone Records acquired the parent company of China's EMI Records, and then carried out a series of corporate structural integrations. The original "General Distribution Office" and "China Record Company" were merged into one, and administrative efficiency was greatly improved.
Manager Hua, Li Kaisheng, was also hired at that time.
Under normal circumstances, Chinese managers in foreign-funded enterprises in the Republic of China are just decorations. Because the government stipulates that every foreign company (foreign-funded company) must hire Chinese managers, the foreign devils have no choice but to find some compradors as managers.
The main responsibility of these Chinese managers is actually to be responsible for communicating with people and channels, and they basically don't care about the company's operations.
But historically, Li Kaisheng was the key to EMI turning losses into profits.
After he took office as Manager Hua of EMI Records, he immediately selected and recruited musical talents. At the same time, he actively released a large number of patriotic songs based on the Chinese people's anti-Japanese and national salvation mentality. For example, the national anthem of New China, "March of the Volunteers", was originally
Launched by EMI.
Li Kaisheng is now in a critical period. He has just taken office and must produce one or two hot-selling new albums as soon as possible.
The 30% record royalty share is really outrageous. Even if it includes the songwriter and singing share, it is still an unacceptable price. Li Kaisheng frowned and said: "Mr. Zhou, with all due respect, your asking price is too high. The most I can do is
Give 15% royalties.”
Zhou Hexuan was not in a hurry, he just smiled calmly and said: "Do you know how much royalties the publishing company will give me when I publish novels?"
"How much?" Li Kaisheng really didn't know.
Zhou Hexuan handed a cigarette to Li Kaisheng, lit one himself and said: "50%."
"That's really... amazing." Li Kaisheng couldn't find any adjectives.
Writers during the Republic of China were very popular, and the royalties for their works were frighteningly high. For slightly famous writers, the royalties were at least 15%, and top literary figures like Lu Xun could get 35% to 40% of the royalties.
Hu Shi once set a royalty record of 45%, but that situation is not common. His royalty has now dropped to 40%, which is similar to Lu Xun's price.
And Zhou Hexuan belongs to the special category. When "Titanic" was released, he had already received 45% of the royalties. Now "Black Earth" is about to release the first volume of its single book. More than 20 publishers are competing for the lead, including 9 publishers.
Offer a sky-high 50% royalty rate.
Publishing companies also have costs, including administrative expenses, machine wear and tear, editing, printing, paper, ink, transportation, distribution, and tax payment. All aspects require money. What is the concept of Zhou Hexuan's 50% royalty? He took it all by himself.
Most of the profits are made, while the publishing house can only make some hard-earned money. Even if it doesn't work well, the publishing house may face losses.
But Zhou Hexuan's influence in the cultural and intellectual circles is so great that many publishing companies would rather lose money than help him publish his novels with tears in their eyes. Firstly, it can increase the company's influence in the industry, and secondly, it can expand channels and markets. Publishers have their own
abacus.
"One price, 18% royalties." Li Kaisheng gave in again. Zhou Hexuan's novel royalties really scared him.
Zhou Hexuan smiled and said: "Since Manager Li is a straightforward person, I am not ambiguous. Let's each take a step back, just 25%. If we can agree, we can talk. If we can't, let it go. There can be no business without benevolence and righteousness. I hope there will be more in the future.
Opportunity to coorparate."
Li Kaisheng smiled bitterly and said: "The 25% royalty is not something that I, Manager Hua, can decide. It must be agreed by General Manager Li Qi (British, also translated as Rich). However, Mr. Zhou is not an ordinary person, so I have overstepped my authority."
Agreed, I will convince the general manager."
This time it was Zhou Hexuan's turn to be surprised. He thought Li Kaisheng would have to think about it for a few days. Unexpectedly, this fake foreign devil was so courageous that he agreed on the spot and even exceeded his authority to make the decision.
"In that case, I wish us a happy cooperation." Zhou Hexuan said.
"Happy cooperation!" Li Kaisheng stood up and shook hands, "Mr. Zhou, why don't we go to the company now, I will introduce you to the director of our music department, and sign the contract by the way."
Zhou Hexuan said funnyly: "Manager Li is so vigorous and resolute in his work. I really admire him."
Li Kaisheng smiled, but secretly complained in his heart that he was worried about how to deal with the British. After signing the 25% record royalty contract, the stingy British general manager Li Qi would definitely be furious.
If Zhou Hexuan's records fail to sell well, Li Kaisheng will not be able to continue playing at EMI Records and will definitely be fired.
At 10:30 that morning, Li Kaisheng took Zhou Hexuan to No. 1099 Xujiahui Road, which was located in Xujiahui Park in later generations.
This is a three-story red western-style building. It is now the headquarters of EMI Records. After the founding of New China, it was the address of the Shanghai Record Factory of China Record Corporation. For the Chinese, the most profound impact left by this place is
The "March of the Volunteers" was born, which is also the national anthem of the People's Republic of China.
Li Kaisheng proudly introduced: "Mr. Zhou, although our company building only has three floors, the recording machines inside are worth millions of yuan. We have employees all over the country, and the total number of workers exceeds 1,500. This is
Even Victory Records and Greater China Records can’t keep up.”
"It's really amazing." Zhou Hexuan nodded in agreement.
For the record industry, until the 1980s, it required a lot of capital to operate successfully.
The development of technology will allow several musicians to set up a studio casually in the future and be able to call themselves a record company and record their own records. However, it was completely different in the 1930s.
Take EMI Records at this time as an example. It was just the machinery and equipment in the recording studio and record factory, and the combined value was as high as 4 million silver dollars. How could a small businessman have fun?
Therefore, although there are dozens or hundreds of record companies in China, they can only be called leather companies. Only the three major record giants, EMI, Victory and Greater China, have record recording, recording and distribution capabilities.
Li Kaisheng brought Zhou Hexuan to an office and introduced: "Mr. Zhou, this is the outstanding talent I hired with a high salary in April, Mr. Nie Er, director of the music department of EMI Records. Regarding the professional matters of recording records, you and Nie
