Heads Up Hollywood

MGM has an enviable library.

By authorizing the film copyrights in the film library to pay TV, cable TV networks and TV stations around the world, and selling and leasing video tapes and DVDs, MGM's average annual income can reach 600 million US dollars.

Still, that revenue is complicated and needs to be shared with other film rights holders.

Each film has its own special contract terms to agree on the remuneration rules for accountants, creators, guilds, and third parties.

For this expenditure, MGM has to sign more than 15,000 checks every quarter.

Not only do films have different profit-sharing conditions, but their future revenue streams are also specific to each film, such as the age of the star, the subject matter, and genre of the film.

In order to evaluate the value of the film library, all the bidding companies for MGM sent an experienced financial team to conduct investigations.

Viacom is also interested in MGM.

Redstone dispatched a team of 50 experienced in-house professionals to estimate the potential benefits of each film over the next 10 years.

The hard work has begun since Kirk Kerkorian announced the sale of MGM.

After two months, Viacom's managers gave a reasonable valuation for MGM, between $3.5 billion and $4 billion.

However, the bidding price was not even submitted to MGM.

Viacom internally gave no.

President Mayer Kamasin is an ultra-conservative, and he is particularly disgusted with Redstone's huge spending on the film industry that has little profit.

He only asked one question to the managers: "Will the acquisition of MGM Film Library repeat the mistakes of the record industry?"

The managers looked at each other.

No one can see clearly the development situation of the Internet!

Kamasin said firmly: "In this case, we will not acquire MGM."

Disney is also eyeing MGM.

Michael Eisner Has Even Made an Offer to Kirk Kerkorian: "$3 Billion!"

As soon as the offer came out, it was directly rejected by Kirk Kerkorian.

Want to buy MGM for $3 billion?

What are you kidding?

In Kirk Kerkorian's reply, he even used words like "joke" and "clown", which made Michael Eisner jump in anger.

Now, Microsoft, Viacom and Disney among the nine major companies participating in the bid for MGM have withdrawn successively.

That leaves only General Electric, Sony, New Universal, Lionsgate, Comcast and Time Warner.

Tang En was not in a hurry to make a move.

He is negotiating with Warner Bros. about the lease of online rights.

Both parties sent negotiating teams to conduct five rounds of negotiations on the deal in ten days.

Finally, on February 1st, Dunn Walker and Barry Meyer attended the last negotiation meeting in person, and the two sides reached an agreement.

New Universal will lease the online streaming copyrights of all films under Warner Bros., including existing copyright libraries and future film projects, for a total of 20 years!

For the first ten years, the annual lease fee is US$20 million; for the second ten years, the annual lease fee is US$30 million.

Not only that, New Universal will also have to pay a total of 200 million US dollars in copyright lease fees for the next ten years.

Barry Diller and Barry Meyer, representing the two companies, signed the contract.

After the signing ceremony, Barry Meyer came backstage and smiled wryly at Tang En, "Tang En, I have a hunch that I've been fooled by this deal."

Tang En suppressed a smile, pretending to be dazed, "Taken? What do you mean? If you say I was taken in, it's me, right? I originally meant to sign a contract for 30 years, but now it's shortened to 20 years. My investment risk has greatly increased."

"But I always feel...within ten years, the network speed will develop rapidly." Barry Meyer shook his head, "If it weren't for Warner's current financial difficulties, I would definitely not accept such an agreement."

"nonsense!"

Tang En secretly laughed in his heart.

If he hadn't known about Time Warner's plight, how could he have directly attacked the most difficult bone?

He is very familiar with Time Warner's crisis.

The merger of AOL and Time Warner caused irreparable damage and decades of irreparable trauma.

In order to alleviate the crisis, Warner Records, Warner Publishing, and Warner Cable were successively sold, and the assets of AOL America Online were spit out. In the end, it was so difficult that the entire group was packaged and sold to AT\u0026T.

Tang En said calmly: "It's just a 20-year lease period, it's not that serious. Besides, it's not an exclusive online copyright. If the Internet really rises in the future, Warner can still rely on its huge movie library. Invincible."

Barry Mayer shrugged. "I hope so."

This is his only psychological comfort.

What New Universal leased is not an exclusive online copyright, that is to say, within the 20 years, Warner can also develop and sell online copyright for the movies in the film library.

Tang En snickered endlessly.

The 20-year copyright period... is not long, and it will definitely not be short.

After ten years, $30 million wants to pack and lease all Warner's movie streaming rights?

$300 million is about the same!

Even 20 years later, with Warner's huge copyright fees, it is impossible to renew the contract under such conditions.

Tang En was also confident.

Because by that time, Netflix has been completely developed, and with a rich self-made copyright library, there is no need to lease copyrights from other companies.

More importantly, New Universal and Warner Bros. have reached an agreement, which is a signal to Hollywood industry peers.

With Warner Bros.'s library of 6,500 films, the current online copyright package price is only 20 million US dollars.

How much can other companies offer?

This deal sets the tone.

Next, New Universal will have a better theoretical basis when negotiating with 20th Century Fox, Disney, Columbia Pictures, and Lionsgate.

...

New Universal's film and television streaming copyright acquisition plan is still going on.

Twain has already settled Warner Bros., which is a good start.

The rest of the specific work was handed over to Robert Iger and Kevin Turner.

However, after Robert Iger settled the investment negotiations for the new "Spider-Man's Amazing Adventures" park at Osaka Universal Pictures, he and Bob Chapek proposed a new park construction plan.

"At present, Disneyland is far ahead of Universal Studios. Whether it is brand image or attraction to tourists, it is not at the same level. To break this pattern, we must find a suitable entry point."

Robert Iger was born in Disney, Tourism and Consumer Products Department, under his direct leadership.

Tang En was very interested, "Oh? What entry point?"

"An entry point that can make the popularity of Universal Studios surpass that of Disneyland!"

"Want to suppress Mickey Mouse and Snow White? It's hard, isn't it?"

"It's difficult, but there is an opportunity."

Tang En nodded, "Tell me specifically."

Robert Iger said: "Recently, I read your book "The Theory of Explosive Money", and I was deeply moved. Movies are like this, so why not amusement parks? The attraction of Disneyland lies in cartoon characters such as Mickey Mouse and Snow White. To put it bluntly, it is a large park integrated by countless small projects. There are not many small projects under New Universal, and Pixar only has 4 films. Therefore, we can embark on a completely different development route from Disneyland. !"

"Oh?" Tang En's eyes lit up, "You mean...a big project?"

"That's right!"

Robert Iger clapped his hands, "The performance of Universal Studios Osaka is not bad, but the overall design is still in the traditional mode. The theme of 'Jurassic Park' is only a small area in the park, and it has not been played at all." The characteristics and humanistic features of the Cretaceous era in 'Jurassic Park'."

Tang En nodded in approval.

The Jurassic Park franchise, after the trilogy, was shelved. However, after the introduction of 3D technology, the "Jurassic World" series can still bring the shock of giant dinosaurs to the world!

Universal Studios' current design and construction of the "Jurassic Park" adventure area is too ambitious and overqualified.

Of course, this is also related to investment.

If you want to build an ideal and real Jurassic Park, you need to invest at least 600-800 million US dollars.

Such a large investment is too risky.

Simply integrate "Jurassic Park", "Future Water World", "Terminator" and other projects to create a park, reduce the scale of each project, and attract customers with more abundant elements.

This is still imitating the Disneyland model.

"I think that if Universal Studios wants to surpass Disneyland, it cannot imitate Disney honestly. We must come up with a new Universal-style amusement park model!"

"Big project?"

"That's right, it's a big project!"

Tang En nodded again and again, and took a deep look at him, "Do you have a choice?"

Robert Iger said: "Yes, we can invest 700-800 million US dollars, next to Universal Studios Orlando, to truly build the world's first independent single-project park-Harry Potter theme park! "

“Harry Potter Theme Park…”

Tang En muttered to himself.

Robert Iger said: "Disneyland is a combined park. Each park has many small projects. It is rich, but not unique enough. It is just for fun, without some eye-opening shocks in the big world. Harry · The Potter theme park is completely different, completely built around the "Harry Potter" series of novels and movies, unique, innovative, and unique, this theme park is completely different from the past Disneyland model!"

Tang En narrowed his eyes.

Indeed, it was like this in the previous life.

In Orlando, there are two major tourist resorts, Disneyland and Universal Studios.

The former is far more attractive than the latter.

Until the opening of the Harry Potter theme park, it directly drove Universal Studios and became the overlord of Orlando's tourism industry!