I’m in Hollywood Chapter 713: One tenth
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If you want to revitalize a TV Station, it is certainly not enough to rely on one popular program. However, a popular program that is full of topic and attracts wide media attention can significantly increase the popularity of related TV channels and gather more Popular. As long as the situation is open, and then continue to produce high-quality TV programs, TV Station can enter a virtuous circle of continuous development and growth.
This is what Eric expects from "America's Next Top Model".
Firefly does not have a major acquisition and expansion plan in the next few years, which does not mean that Firefly will stop growing.
Before Eric put forward the idea of "America's Next Top Model", Katzenberg has begun to increase its support for Firefly's record business. Eric is familiar with the development prospects of the Western record industry. Although it is not eager for the development plan of Katzenberg, it has not stopped . Relying on the strict copyright protection law, although the western record market has become more and more depressed due to the strong impact of the Internet era, it has not declined to the point where the entire industry has disappeared.
In addition to the record business, a more standardized commercial operation of the peripheral products of its popular movies is also one of Firefly ’s important development plans in the next few years. Negotiations with the Hasbro Group on toy peripherals to be launched are part of this plan. .
After hearing the idea of "America's Next Top Model", the energetic Katzenberg immediately proposed the idea of developing lInternet ExplorertimeTV Station.
As I said just now, even if "America's Next Top Model" is a success again, a single popular program will certainly not be able to support an TV Station.
After brainstorming at many meetings, the management quickly worked out a detailed set of original programming, TV Network resource reuse, programming and channel marketing plan. Firefly will invest 100 million USD in the production, procurement and marketing of lInternet ExplorertimeTV Station every year for the next three years. It is expected to create a professional female TV Station for young women who focus on fashion and high-quality life.
The parent company aeTV Network of lInternet ExplorertimeTV Station is jointly owned by Firefly Group and Hearst Communications, so this reform plan for lInternet Explorertime. It is also necessary to consult with Hearst Communications and obtain related resource support. Hearst Communications has hundreds of daily newspapers, weekly magazines and magazine worldwide. These paper media resources are still indispensable for the promotion of women's channels.
After Oscar, the award season finally ended. Eric has also handled most of the movie projects that require personal attention. But before a few days of rest, a whole lot of things came again.
Hearst Communications ’s Headquarters is located in New York, and aeTV Station ’s Headquarters is also in New York. Once the plan is made, most of the programs of lInternet ExplorertimeTV Station will also be produced on New York. No matter from what point of view, Eric needs to rush to New York for relevant consultation and layout.
At the same time, the birthdays of the two little guys are coming soon, and Easter this year is also on April 16. On these special days, there is always time to accompany women and children.
The Headquarters of Hasbro is in Rhode Island, very close to New York. The negotiations on toy development cooperation between the two parties have finally been decided to be held in New York.
The Firefly investment and the telecom operator Sprint's capital injection negotiations have been opened, involving more than one billion USD investments, and some important occasions also require Eric to attend in person. Both Firefly investment and Sprint's Headquarters are in New York.
On a plane flying to New York, Eric simply schedules consider as finished. Found that after finishing these things, the movie summer file is coming.
Just got off the plane. Eric has invested in non-stop work.
Manhattan Upper West District ABC TV Station Headquarters, in the conference room, senior executives of Firefly TV Network, aeTV Network managers and representatives from Hearst Communications are holding related meetings. At the invitation of Eric, Hearst Communications third-generation heads William? Hearst are also sitting In the room.
"... According to the statistics of 1994, the number of users of lInternet ExplorertimeTV Station is 31.5 million. The average cable TV operators such as Comcast, Time Warner, and telecommunications pay 15 cents per user per month, and lInternet ExplorertimeTV Station operated last year. The business points became 56.7 million USD, the advertising revenue was 33500,000 USD, the annual revenue was 90200,000 USD, and the profit was 13800,000 USD. We plan to use three years. Through the first stage of the reform plan, the number of lInternet ExplorertimeTV Station subscriber subscriptions will be expanded to 60 million to 90 million households. And increase the operator's share to 25 cents, and hope to achieve a revenue of 500 million USD and a net profit of 100 million USD by broadcasting a series of high-quality TV programs to achieve advertising revenue overtaking the operator's revenue. "
Katzenberg finished the simple report and was about to move on to the next topic. William? Hearst sitting at the top left of the long meeting table table raised his head and knocked on the document in front of him. He ignored the Katzenberg but looked at the other Eric, who was sitting on his own, said: "Eric, last year's Victoria’s Secret Fashion Show, is a direct profit and an indirect stock appreciation. The benefits for you are more than 1.5 billion USD. Isn't this plan too stingy by comparison? "
Eric leaned on the back of a comfortable leather chair, holding a pencil in his hand, and habitually turned a pen flower in his hand, laughing: "William, that was totally an accident last year, the road always has to go step by step Yes, with the foundation of lInternet ExplorertimeTV Station, achieving this goal in three years has been very good. Last year, the total profit of all TV businesses under Firefly was only more than 600 million USD. "
William? Hearst stared at the young man on the opposite side and said, "I don't pay much attention to the TV business, but I always feel that this plan is a bit imperfect, or that some areas are not clear."
The other party was not clear, and Eric also continued to go round the corner: "This is just a draft, and it definitely needs to be revised, otherwise we will not have to hold this meeting today."
William? Hearst looked at the somewhat lazy smile and said: "Eric, I mean, regarding the production of the original program lInternet ExplorertimeTV Station, this plan does not seem to explain what to do?"
Eric replied: "Oh, I do n’t think there is any objection to this matter. Except for the news, all the TV Network programs are in charge of the Firefly Group TV program production department, of course, this time follow the convention."
The two gangsters wrestled, and everyone in the field took the initiative to quiet down and listened patiently.
As an industry elite, most people actually know what the two big brothers are discussing. And when the two people talked about it, even the clerks who were just a little confused about the minutes of the meeting almost understood it.
Eric and William? Hearst discussed copyright attribution of the original program of lInternet ExplorertimeTV Station.
Normally, a TV program producer sells the first broadcast right to TV Station, and the sales revenue obtained only accounts for a very small part of the program revenue, and even the cost cannot be recovered.
Most of the revenue from TV shows comes from the income from the release of the video of the episode and the addition of Cindy after the premiere of TV Station. The so-called TV program Cindy plus, the simple explanation is the program distribution system.
One TV program passes the Cindy plus program distribution system. In entire US and even global, countless TV Station broadcast rights and remake rights sales profits will definitely far exceed the revenue of the first round of TV broadcasts, and the profits from the video tapes and Cindy plus revenue of the hit series can even reach The production cost is more than ten times, which is why many TV series protagonists can get a million pieces per episode later. If there is no video tape and Cindy plus, only by the first round of advertising and cable TV, TV Network is absolutely impossible to open such a Sky-high pay.
Most of the TV Station program production department and distribution system are integrated, and there is no need to distinguish these issues.
But the parent company aeTV Network of lInternet ExplorertimeTV Station is different. aeTV Network is jointly held by Firefly and Hearst, each of which holds 50% of the shares. If the original program of lInternet ExplorertimeTV Station is produced by aeTV Network production department, then Hearst Communications will be able to share the profits of the video tape and the program Cindy. But if these programs are produced by TV Department of Firefly, the program copyright has nothing to do with aeTV Network. Although Hearst Communications does not have to bear the risk of production investment, it can not share the video tape and Cindy plus income. That's why William? Hearst just said that the plan is 'stingy'. If only TV Station's cable TV share and advertising can earn 100 million USD annual profits, video tapes and Cindy plus income must be much more than that.
It is well known that projects led by Eric, whether it is movies or TV series, can be associated with the term "profiteering". Hearst Communications certainly cannot give up this profit within reach.
Although Hearst Communications is in a giant position in the paper media industry, it does not have enough confidence in the management of TV Network. William? Hearst already realized that Eric invites itself to participate in this meeting, it will not be as simple as it seems He can only follow his way of thinking, saying: "Eric, I think it is more appropriate for aeTV Network to produce this batch of original programs. Hearst Communications can provide production funds according to the proportion. In addition, if paper media resources are needed here, we also Can cooperate as much as possible. "
Eric seems to have heard something of interest and stood up and said, "Speaking of proportion, William, I think that the proportion of Firefly and Hearst in ESPN is more coordinated, what do you think?"
Although prepared, William? Hearst almost heard the Eric, and almost threw the documents in his hands towards him, shaking his head without hesitation: "Eric, this thing will not work, absolutely not."
Firefly and Hearst's shareholding in aeTV Network is 50%, but ESPN's shareholding is 28%, Hearst accounts for 20%, Firefly accounts for 80%. At the beginning, Hearst and the original metropolitan media group's interest in ESPN were equally important. In the 1980s, ESPN had not yet risen. At that time, Tom? Murphy was bought from Hearst Communications and several other small shareholders. Most of the ESPN shares were less than 50 million USD at the time. Now ESPN is already the largest sports channel of North America. In 1995, the annual profit exceeded 200 million. At that time, only the shares that Hearst Communications disengaged produced more than 50 million.
There is such a lesson ahead. Of course, William? Hearst is unlikely to do such a stupid thing again.
When I heard William? Hearst refused excitedly, Eric shrugged and said, "William, if you don't agree, then consider as finished."
William? Hearst was suddenly speechless, and was silent for a moment before continuing: "Eric, I have listened to your idea about" America's Next Top Model ", this project needs a lot of paper media resources to support the development, Firefly all the paper media assets last year Sold out, without Hearst, it is difficult for you to make this project bigger alone. "
"William, I think this is a win-win situation, we get resources, you can also get more news material," Eric shook his head, his mouth smiled confidently: "And, you are also mistaken One thing, there is no Hearst, Condé Nast, News Corp, Firefly and the relationship between these two is just right. Even, I still have Yahoo in hand, although the influence is temporarily unable to compare with traditional paper media, but the user population is The fashion female audience of Internet ExplorertimeTV Station has a lot of overlap, I think you can definitely see the media operation potential that Yahoo showed during Victoria’s Secret Fashion Show last year. "
William? Hearst opened his mouth, but he couldn't find a suitable refusal word for a while.
Although he did not want to admit it, he had to helplessly admit this fact in his heart. Although Hearst Communications is very strong in the media industry, Hearst Communications is not indispensable for the more resource-rich Firefly, and vice versa , Firefly, Hearst Communications is not difficult to further aeTV Network alone.
The current situation is that Eric has put forward the conditions, Firefly wants the majority of aeTV Station shares, if Hearst Communications does not agree, then they will not be able to share most of the profits that lInternet ExplorertimeTV Station may bring after the growth. But if compromised, Hearst Communications will almost certainly repeat the same mistakes as the original ESPN.
It ’s another entanglement, William? Hearst said: "Eric, Firefly want to account for 80% of the shares, which is definitely impossible. We will give up the absolute controlling right at most, you can completely modify this according to your own ideas. TV Network, how is it? "
Eric shakes his head: "William, Hearst Communications's business focus is on paper media. I don't think you need to stick to these TV Network assets at all. So, let me take a step back. Firefly only needs 75%. This is my bottom line." /
"No no no, Eric, up to 55%, no matter how high, I would rather give up the power of aeTV Network to undertake program production and keep it as it is."
"Hey, William, did you know that last year's" ER ", the production cost was less than 30 million USD, but only the first quarter of Cindy plus sales profit exceeded 150 million, we will also release video tapes recently, this income It will be more objective. Look at the advertising revenue again, 45 million USD, the profit is only one-tenth of Cindy plus one-tenth. "
William? Hearst looked helpless: "Well, Eric, 60%, no matter how high, I am afraid I will be criticized by shareholders."
"You can't fool me. The William and Hearst families have always firmly controlled Hearst Communications. No one will object to your decision. 70%. This is the bottom line that Firefly can bear. If you cannot accept it, Firefly does not Exclude a separate acquisition of a wired TV Station. "
"..."
"..."
Everyone in the meeting room listened to two Bosss coming and going. They were quick in thinking and spoke quickly. They seemed to blurt out without hesitation, but they were full of shrewdness and calculations. Tsk Tsk was surprising in their hearts. Westerners are rare. Bargaining like a vegetable market.
Finally, after more than ten minutes of disputes, the two sides finally decided on a plan that each of them could barely accept. Firefly held 65% of the shares, Hearst Communications left 35% of the shares. The production of lInternet ExplorertimeTV Station program was led by aeTV Station, and Hearst Communications was in the paper media. Resources are fully coordinated. (To be continued.)