China Entertainment: Starting from 07 Kuainan

Chapter 94 Deja Vu Negotiation

"So, you want to debut as a rock singer in Europe and the United States?"

After listening to three songs that clearly had a rock style, Kangni Liang had this question, which was very reasonable.

"Do not."

Lu Yuan smiled and shook his head: "In addition to rock, this album also includes pop, folk, and electronic music. Just like my first album, there are various genres."

"In addition, the theme of my first English album is inspirational, so it will have more rock music."

Liang Kangni nodded thoughtfully and said bluntly.

"I haven't heard the other songs yet, so I won't comment on them first. Just talking about these three songs, they are all of high quality and have the potential to hit the charts."

"But since you are going to release an English album, you must have understood the specific situation, right?"

"A little understanding."

Regarding the European and American music scene, when Lu Yuan played music in his previous life, he mostly listened to songs and studied singles. He really didn't know much about the specific situation there.

Liang Kangni asked very straightforwardly: "Then, what kind of cooperation method do you want to sign?"

"We can discuss record release contracts, acting contracts, commercial performances, and announcements from management." Lu Yuan smiled slightly and dropped the question again.

“I wonder what kind of conditions Universal can provide?”

Liang Kangni frowned slightly. The conditions proposed by Lu Yuan were not beyond her expectations, but she was only the general manager of Global China.

In other words, she does not have much say in the global headquarters.

After thinking for a while, she came up with a plan.

"If that's all, the conditions I can offer are not high."

"Within my authority, the maximum share for singles and albums can be 23%."

In Europe and the United States, the profit distribution parties of a single or an album are roughly the record company, album/single sellers, singers, producers, and songwriters.

The singer's share is usually between 10-25%, the producer's share is about 9%, and the songwriter's share is 3%.

Of course, if you are a well-known singer, well-known songwriter, or producer, the share ratio can also fluctuate.

Excluding singers, producers, lyrics and music, the rest is allocated by the record companies and sellers, and the ratio between the two also fluctuates.

However, the record company usually gets more.

In addition to the above parties, there are also various associations that will also participate in revenue distribution, such as the American Musicians Association, Composers Association, etc.

Of course, the share drawn by the association is not high. When it reaches a certain amount, the association will not participate in the share of subsequent income.

While making profits, major associations will also ensure the interests of their members.

A typical case is the general strike of Hollywood actors and screenwriters. Under the organization of the Screen Actors Guild and the Screenwriters Guild, they jointly fight against the producers (capital) and strive for more benefits for their members.

(This year’s Hollywood strike is also a type of labor dispute. Union members unite to protest against capital. While increasing the income of actors, the union will also get more, which is all business)
23%?

Lu Yuan frowned. He was a producer, a singer, and a songwriter.

If according to this share, as a singer, his share is only 11%?

However, although Lu Yuan had objections in his heart, he did not object immediately. He had to listen to all the offers for counter-offers.

"In terms of commercial performances and announcements, it can be split [-]-[-]. Of course, if you don't have your own band, the company can provide a band to act as a supporting guest."

"For concerts and tours, my personal authority is 22%."

In the European and American music circles, tours are the bulk of a singer's income. Taking the average ticket price of US$100 as an example, a tour with 5 people will generate ticket revenue of US$500 million.

20 tours is $[-] million.

Of course, the investment costs of touring are not low, including venue rental, equipment rental, stage design, labor costs, etc.

According to Liang Kangni's quotation, if Lu Yuan holds a concert, he can get 1000 million US dollars for every 220 million US dollars in tickets sold.

This share can only be said to be quite satisfactory, neither too high nor too low.

"Finally, in terms of copyright-derived income, Universal needs a [-]% management fee."

After stating all the conditions in one breath, Liang Kangni took a sip of tea and waited for Lu Yuan's reply.In fact, in terms of bottom line, she did not deceive Lu Yuan.

The conditions she gave were the best choices within her authority.

After all, Lu Yuan is not a nobody.

Not to mention his popularity in the country, his relative alone is enough for Liang Kangni to treat him carefully.

"Sales royalties, 23% is too low."

After a long time, Lu Yuan raised an objection.

"For this album, I am not only a producer, but also a singer and a songwriter. It does not take up Universal's production resources at all."

"All I need is Universal's publicity channel."

"Mr. Liang, Universal is not the only record company in the world. You should know this very well."

Kangni Liang was silent for a long time and then said, "Then how much do you want?"

"Minimum 30%."

The 30% proposed by Lu Yuan is slightly higher than non-creative contracted artists, but also lower than independent label artists.

Independent label artists can get up to 38%.

But facing a giant like Universal, it is obviously impossible to take away more than one-third of the share.

If the song sells for 1000 million U.S. dollars, the artist will take away 380 million U.S. dollars, and the remaining 620 million U.S. dollars will be taken away by the seller and 200 million U.S. dollars. The major associations will divide 20 U.S. dollars, leaving only 400 million U.S. dollars for the record company.

If the publicity and distribution costs are deducted, the net profit attributable to the record company is only over 200 million.

The share is lower than that of a singer!
Some small independent labels may agree to such a contract if they meet big-name artists, but it is absolutely impossible for a giant like Universal to agree.

Not to mention 38%, even if Lu Yuan proposed 30%, others might not be willing to do so.

After all, the cost of helping a singer hit the charts is not cheap. Various music festivals, TV programs, radio broadcasts, etc. all cost money.

For example, before a singer releases a single, the record company usually sends the single to major radio stations in the United States.

In this regard, the record company needs to pay the radio station.

Others, such as music festivals, TV shows, and media, also require certain resources or fees.

The newer the person, the higher the investment.

Of course, music giants like Universal have bargaining power with promoters, but bargaining power is also an implicit investment from Universal.

Capitalists naturally have to factor this into their costs.

"30%?"

On the other side, Liang Kangni frowned and said: "This is too high, but I can try to apply to the headquarters."

"Just don't have too high hopes."

Speaking, Liang Kangni asked.

"what about others?"

"Commercial performances and announcements can be split [-]-[-], but I need the freedom to choose which announcements I accept. After all, I can't stay in America all year round."

"In terms of tour, the 22% box office revenue share is too low. My personal expectation is a 28% box office share."

"As for copyright management fees, 7% is too high, [-]% is the most."

"This……"

After hesitating for a moment, Liang Kangni said frankly: "Your request is a bit harsh. It may be difficult for the headquarters to pass it."

Lu Yuan raised the corners of his mouth slightly and uttered a sentence slowly.

"What if every song in my English album can reach the level of these three songs?"

Snapped!
Lu Yuan hit four points!
Global, how should we respond?
(End of this chapter)