New York 2006

Chapter 161 Differences with Universal Music’s business philosophy
On December 2007, 12, in the Future Records conference room, Jeff Busker looked at Luo Ji and spoke tentatively.

"We are young" is currently ranked second on the Billboard singles chart. The first is "Low" by Flo Rida. Logic, would you like to promote the "We are young" single? Sales have also dropped during this period. , and your first three singles have all won the number one spot on the Billboard singles chart, and this song has won four crowns."

Luo Ji looked at Jeff Basker seriously and said, "Okay, you can make the arrangements. But the most I can do is go to a radio station in New York for interviews and publicity throughout the United States. I'm quite busy at this time."

"OK." Jeff Busker said with a smile.

"Okay, let's continue reporting!"

Jeff Basker took the document and said, "There are now more than 70 employees in the record company, and there is still a shortage of talents for a few technical positions. Let's see if we can approve the recruitment."

Luo Ji looked at the document in his hand. Now he was very familiar with all the positions in the record company. After thinking about it for a moment, he realized that it was really indispensable: "Okay, you ask Max to find a headhunter, and I will approve it."

"Okay." Jeff Basker continued: "We have released a total of seven albums this year. In addition to your album "16", Bruno Mars' album also made a small profit, Tracy's album was flat, and other singers All albums have suffered losses."

"Yes." Luo Ji continued nonchalantly: "I know. Please tell me your plans for next year."

Jeff Busker said: "Lady Gaga's album will be produced around March next year, and Justin Bieber's EP will be produced around June next year. Apart from these two singers, there are no other singer album production plans next year." Yes. Boss, do you want to release an album next year? You have five songs now."

"Don't worry about me yet."

Luo Ji knocked on the table and said, "Let's sign six more singers next year. I will be there in person during the auditions."

"Okay." Jeff Basker agreed immediately.

After making plans for the record company for next year, Luo Ji sat in the office and dealt with other companies' affairs.

As a result, in the afternoon, Universal Music’s representative from Future Records came over and said: “Logic, I have objections to the record company’s plan for next year. You launched six singers this year, and almost all of them failed. Why haven’t you learned your lesson? "

Luo Ji's eyes were sharp: "Are you speaking on behalf of Universal Music Company?"

The representative of Universal Music had a good attitude, but the content of his words was very rude: "Logic, don't be angry. Writing songs is one thing, running a record company is another. You can't waste the company's money like this. Next year you will We also plan to sign six singers. Those medium-sized record companies don’t dare to do this.”

Luo Ji thought carefully and then said, "Let Universal Music President Doug Morris talk to me."

"I can talk." The Universal Music representative continued: "I represent the will of the parent company."

Luo Ji left no room for doubt: "I want to talk to him directly."

An hour later, Universal Music President Doug Morris called. His attitude was very good: "Logic, I heard that you are publicizing the Grammys through CBS channels, and Universal Music can also help."

Luo Ji smiled and said, "Thank you very much. I will cooperate with you in whatever you need me to do."

"Row."

Doug Morris continued: "I heard from a representative of the company that you wanted to talk to me."

Luo Ji said, "He wants me to stop my strategy of cultivating singers. You know, I am also injecting new vitality into the recording industry."

Doug Morris said: "Logic, I understand your thoughts, but have you ever considered the issue of operating costs? When Universal Music bought a stake in your company, it was actually for your singer contract. You didn't want the company to Expansive.”

Luo Ji said coldly: "I understand, but you agreed not to interfere in the company's operations."

"We are not interfering with you, we are just making suggestions. The final decision is still in your hands."

After Doug Morris finished speaking, he continued: "Logic, I'm serious. The loss in training singers this year is actually not much, just more than 300 million. But have you noticed that in order to train these singers, you have to sacrifice the entire company's employees?" The number of people is expanding rapidly, and the wages and insurance of these employees require a lot of money every year. Originally, you could have more than 20 employees for one singer, but now there are fifty more, and this expense is not a small amount." Luo Ji said seriously: "So what do you mean?"

"Lay off employees and stop the company's expansion."

Doug Morris continued: "The company almost relies on you alone to make money now, but the company's income, as a singer and songwriter, you have to share 40% of the profits. The company itself is actually not that profitable. More than 70 There is almost no profit for each employee if this continues. Not to mention, the conditions you provide to other singers are so good, and the company simply works for the singers. I know that your live performance company and management company can make some money from these failed singers. It’s a small amount of money, but Universal Music has no share in it.”

Doug Morris continued: "So you understand? Logic. This is not what a qualified chairman should look like."

Luo Ji said seriously: "Don't think that I am a person who seeks personal gain for public benefit. I also want to cultivate a popular singer. I am very optimistic about Lady Gaga now. I even wrote songs for her myself, and she is here Executing my electronic music strategy.”

Doug Morris continued to persuade: "Now the record industry is shrinking. Although you have your big hit album "16" this year, the sales volume of the entire record industry is still shrinking this year. We have received news that the sales volume of the global record industry will decline this year. It will continue to shrink by $18 billion. So, you know what I mean? It can no longer expand next year. The global record industry is laying off employees, but your company is expanding again."

Luo Ji's purpose in talking to him was actually to have such an attitude.

"I understand."

Luo Ji said seriously: "But I still want to implement my expansion strategy, but I also have to consider my partners. That is, your attitude. Let's do this. Except for me, I will acquire all other singer contracts in the entire company. , including those singers who are losing money, I will buy them at the cost price cultivated by the company. Of course, as well as those employees you think are inappropriate, I will also include them in my sole proprietorship record company. I will only have one singer in the entire company, so Do you think it’s okay?”

Doug Morris hesitated a little: "Can Bruno Mars, Tracy and Lady Gaga, who you personally wrote songs for, stay?"

Luo Ji said seriously: "Mr. President, these three are the fruits of my expansion strategy. You can't just take advantage of them and then leave all the failures in my hands."

"Or not."

Doug Morris said seriously: "If I approve letting them go, I will be criticized by the board of directors. You are a genius. This is your first time writing songs for others. I will not take such a risk. Tracy and Bruno Mars were also minor successes.”

You're still smart, you can't fool him.

After Luo Ji discovered Lady Gaga's songs, he actually had a small idea and wanted to sign her into his sole proprietorship, but then he thought about it and realized that he couldn't let Universal Music take the responsibility when the singer was losing money, but not when he was making money. Taking them with you would be unethical.Moreover, he also wrote songs for Lady Gaga himself, which would greatly affect his relationship with Universal Music if word spread about it.

Unexpectedly, Universal Music now opposes its expansion strategy.

Luo Ji said, "Then what do you think we should do? I can't just take in those employees you don't like and just keep them. I don't have any singers now."

Doug Morris said: "Don't Future Records still have three singers who have no plans to release albums? Jason Chen, James Byrne and Justin Bieber. And the four singers whose album sales are not good, All can be transferred to your record company for free, without charging a penny, as long as you can complete the record company layoffs and then transfer to your sole proprietorship."

Doug Morris added: "In this way, you can expand how you want in the future, and I have no problem with it. The distribution rights can still be handed over to Universal Music, just like your company."

It seems that Universal Music really dislikes his wanton expansion that has reduced the company's profits. These singers spent a lot of money to train before, so they were directly transferred to him for free.

Although his authority was somewhat challenged, Luo Ji was not angry.He is a person with Tianqi. From now on, Tianqi’s singers can sign into the sole proprietorship company.

Luo Ji thought for a moment and said, "I need your wholehearted support at the Grammys?"

"Don't worry, we will support you even without this."

"Okay, I'll start splitting the company," Luo Ji said.

Doug Morris smiled and said: "You are a rational person, Logic. I thought it would be difficult for you to explain. You can fully implement your strategy in the future. No more troublesome people like us will tell you what to do. Yes. Okay, what are you going to call your solo record?"

"Electronic music record!"

(End of this chapter)