From Flower Vase to Film Emperor in Hollywood

5%.

Undoubtedly, this number is impactful.

Edgar and Lucas both vaguely sensed something amiss—

Being too stingy and refusing to concede any benefits is obviously not a good thing; but at the same time, being too generous and readily giving away most of the benefits is also not a good thing.

Abnormality indicates something fishy.

However, Edgar and Lucas had very limited understanding of the music industry, and they couldn't even come up with any theoretical ideas.

At this moment, they sensed the anomaly but had no idea what Matt was up to, making it impossible to prepare a counterattack.

Sure enough, a professional music agent is still needed—

Being a layman in one field is like being separated by mountains, this saying is indeed true.

However, Anson, who had been sitting quietly by Edgar's side since he started speaking, chuckled.

"No wonder Mom always says, never easily trust strangers, maybe he's the Big Bad Wolf."

Matt noticed the hidden meaning in his words and smiled at Anson, "So, you're Little Red Riding Hood?"

Anson also raised the corners of his mouth, "Times have changed. Little Red Riding Hood might have surrendered obediently in the past, but now, Little Red Riding Hood will also resist."

"Matt, on iTunes, how much does a song cost?"

Edgar: ?

Lucas: ?

Honestly, they really didn't know the answer to this question.

Matt's heart stirred slightly, and a sense of unease was creeping out from the depths, but Matt remained calm, "One dollar, to be precise, ninety-nine cents."

Anson, "Then, what is the profit split that the singer gets from each song?"

Matt wasn't going to fall for it, "This is an industry secret, I'm sorry, I can't answer."

Anson pursed his lips slightly, "Then, how about I guess? You don't need to answer, just give me a look as a response, how's that?"

Matt had a bad feeling, that uneasy emotion was gradually expanding—

Things are getting out of control.

The digital audio source is still in the early stages of development and overall rise. There is chaos, and the industry has no regulations, so different platforms and companies are exploring. Naturally, there is no unified standard.

Matt said it was a secret, he wasn't lying. This high-level information must not be leaked, otherwise competitors would immediately launch malicious competition.

However, looking at the mischievous glint in Anson's eyes, Matt felt a burst of unease.

Matt showed a wry smile and spread his hands.

"Anson, unless you agree to cooperate, and we formally sit down at the negotiating table, otherwise, you know, I can't give any form of response."

Then, he changed the subject.

"Of course, if you're ready, and we enter a cooperation mode now, then that's another matter."

Matt was trying to turn the situation around.

Unfortunately, Anson didn't buy it.

"Five cents," Anson said.

Edgar and Lucas were both stunned.

Edgar blurted out, "How much?"

Lucas quickly glanced at Matt. Although Matt's expression was calm and composed, impenetrable; Lucas still caught a hint of astonishment—

Anson guessed it right.

Not only hit, but accurately.

Because it was so accurate, even a veteran like Matt was momentarily shaken:

How did Anson guess it?

Five cents.

A song, only five cents?

A thousand times is only a hundred dollars?

No wonder Matt is so generous, offering 5% right off the bat!

Edgar and Lucas both looked at Matt, a hint of scrutiny in their eyes, and the harmonious atmosphere suddenly tensed up.

Matt couldn't defend himself—

He couldn't admit it, but he couldn't deny it either.

In fact, the entire industry is currently in its initial stages, and even iTunes itself is still exploring and negotiating. The industry has not yet been unified and standardized.

After all, iTunes' music paid download function only went online in 2003, and it hasn't even been a year yet.

Currently, iTunes is trying to cooperate fully with music companies and musicians, and there are still many variables in the negotiations.

Here, it needs to be divided into two parts.

One part is independent musicians.

That is, those without record company participation in profit sharing. iTunes mainly adopts a 50-50 split. For a one-dollar song, Apple takes fifty cents, and the independent musician also takes fifty cents.

This method is very much a robber's logic. Apple doesn't do anything and directly takes half; however, independent musicians like it very much.

Because when cooperating with record companies, their royalty splits are often lower than 20%. Now it has been increased to 50%. Without the layers of exploitation from record companies and distribution channels, they can clearly see the increase in profits, which allows them to focus on making music without external interference.

One part is record companies.

Currently, Warner Music is at the forefront, but the negotiations between Apple and Warner Music are very stalled.

Apple's goal is to take 40% of the profit sharing; but Warner Music allows Apple to take 30% of the profit sharing, which is not much different from the profit sharing ratio of traditional record stores and other distribution channels.

In other words, Warner Music does not resist the trends of the times. They are willing to incorporate digital audio source platforms into their distribution channels, but refuse to change their model, treating iTunes as just another record store.

At the same time, Warner Music turned around and told the musicians that the new distribution channels require a lot of resources, and the distribution and promotion costs continue to rise. The royalty splits for singers in the digital audio source section need to be reduced, controlled between 5% and 15%, with the top singers getting only 15%.

With one addition and one subtraction, Warner Music firmly controls as much as 55%, or even 65% of the profits—

This is the real robber.

Otherwise, why would these big companies all be said to be monsters that eat people without spitting out bones?

Of course, everything is still in the stage of exploration and negotiation. Variables always exist, and these numbers cannot be said to be 100% certain.

But one thing is certain, standing in front of these big companies, singers and other independent individuals are always the disadvantaged group, this has never changed.

The 5% that Anson said is the lowest amount, equivalent to the bottom line, and Matt cannot deny its existence.

The problem is that Matt cannot explain it either, otherwise he might leak the negotiation content between Apple and Warner Music, inadvertently leaking trade secrets.

Beside him, there are also Edgar and Lucas, two watchful existences. Matt must be cautious.

So, Anson threw out a difficult problem, a dilemma.

Matt was slightly startled, then chuckled, "Anson, you're doing this on purpose, right?"

Obviously, Anson was deliberately putting Matt in a difficult situation.

Anson, however, had a innocent look on his face, "If I said something wrong, you're welcome to correct me at any time."

After speaking, Anson also spread his hands, making an inviting gesture.

Matt helplessly shook his head slightly.

Unexpectedly, Anson changed the subject, "The point is, you just said that iTunes is willing to sign a special agreement, 5% higher than the standard agreement. Does this 5% include cooperation with Warner Music, or does it not?"

His real intention was elsewhere.

Matt's expression paused slightly, and his eyes slowly brightened—

It seems that Anson is smarter than he thought.

This is not surprising. In Hollywood, those who can truly stand at the top of the pyramid are all smart people, even if they look stupid or like pretty vases on the outside, there are no exceptions.