hollywood billionaire

Chapter 39 Eye of the Ocean

Author: Trojanrw

Chapter 39 Eye of the Ocean

"There is nothing particularly worth mentioning in this song. The whole production is done with the sound and sampling package brought by Logic. There are no other plug-ins, and there are no special sounds... It was originally written for me,

Slightlys.”

"No." Bili shrugged her shoulders with a wicked smile, "It was written for a certain 'Eye of the Ocean'."

"No, Bili..." Phineas looked at his sister helplessly, "It was written for the band. But if I sing myself, I always feel that the taste is wrong, so Bili tried it. Unexpectedly, it happened to be very good.

Fit."

"He came to my room with a guitar and taught me to sing this song." Bili pointed to her head, "So it was just hanging in my mind for a few weeks, and I thought to myself, 'This

The song must be sung by me'."

"So we recorded it in our bedroom and uploaded it to SoundCloud on November 18 last year, but it turned out to become popular overnight." Phineas added.

"246,000 views." Bili couldn't wait to take the conversation, "Who could have thought of it?"

"What about commercial?" Han Yi asked with a smile, "What commercial operations did you do for Ocean Eyes after the popularity of SoundCloud?"

"We still want to get voice on a platform that can settle streaming royalties, so after the song has a certain amount of traffic, I talked to Spotify and Apple Music. Finally, Apple Music introduced us to an A&R platform company.

Platoon signed an agreement with Bili."

"What exactly is the agreement like?" Han Yi's smile became a little slow when he heard Phoenas's words.

Did someone take the lead?

“They promised to sign a big record company for Bili within three years.”

"In exchange for..."

"For Bili's revenue in acting in three years is 15%."

“Is there any sunset clause?”

"Yes." Phineas looked at Han Yi with a little more surprised. He originally thought that this rich man Yuzhen highly recommended was just a funder who was determined to join the music industry, but he didn't expect him to be a thief.

I actually have a considerable understanding of the industry itself.

"They are entitled to 10% of the income of Bili in the ten years after the agreement ends."

"No wonder Platoon was acquired by Apple." Han Yi nodded and murmured to himself.

A so-called A&R companies like Platoon are neither artist management companies nor record companies. The full name of A&R is Artists&Repertoire. In Chinese, it can be called Artists and Production Department, or Artists and Works Department. As the name implies, A&R's work is development.

and train singers’ abilities and assist artists in preparing works, so that they have a higher probability of success in the commercial market.

A&R is the core department of record companies. People see the daily life of record companies in film and television works, such as song collection, contract signing, training, and recording, all are the work areas of A&R. It can be said that more than 85% of the artists in record companies are from

Music-related businesses are all carried out by this department.

Platform companies like Platoon, which specialize in A&R, are a popular music entrepreneurship method in recent years. Traditional record companies have signed a standard contract of 1+6 with musicians, that is, 1 album + 6 albums.

The renewal option for a total of 7 albums can be bound to at least one musician for nearly ten years. The financial resources spent on creating seven albums that effectively promote a singer from music to superstars and

Human resources are amazing.

According to Pareto's law, the ratio of successful people to losers in any industry is between 28 and 28, and in the music industry, this ratio can reach a shocking 10%: 90%. The record company signed a contract.

Among the 100 artists, only 10 can make them recover their costs, and among these 10 guaranteed cases, only 1 can really make money.

In the era of physical records, the circulation and fashion update speed is relatively slow. It is profitable to spend more than ten years to run an artist brand carefully. But entering the era of streaming media, especially mobile networks and large

In the past few years when data began to change the business logic of music, the attributes and preferences of record companies have also changed, from production as the core to marketing as the core.

Whether it is Universal, Sony or Warner, their record companies want to sign contracts for musicians with mature works and existing traffic. Promoting such artists does not require spending energy in the most difficult initial period and achieve commercial success.

The probability is much higher.

In other words, everyone wants to do work from 1 to 100, not from 0 to 1.

In such a market environment, pure A&R companies specializing in packaging newcomers came into being. They will sign a large number of musicians who are still in their infancy to provide suggestions in the direction of their works and play a role in introducing industry resources.

This kind of company does not sign an issuance contract with artists, does not sign a record contract, and does not even need a management contract. The agreement they reached with newcomers is very simple and clear - I will help you find the right development path and your favorite next home, as

For rewards, you need to distribute income to me in your subsequent career.

Without investing too much money, you will be fighting for the tiny probability of a crow turning into a phoenix.

This kind of agreement, usually in the music industry, is called...

"I understand the artist development agreement." Han Yi pondered for a few seconds and asked, "What specific benefits need to be shared with them?"

“It is mainly the revenue from recordings, and the royalties obtained from the recordings that our music works are ripped into recordings.” Phineas recalled the details of the agreement, “and…all other commercial revenues in the three-year contract period were held in all other areas.

All need to share the share, such as endorsement or sponsorship. If it is negotiated within the contract period and the income is only obtained after the agreement expires, it still needs to share the share with them at a ratio of 15%.

"That is to say, three years later, except for the income generated by the master copyright and music copyright, other income will not need to be shared with Platoon, right?"

“That’s how it is.”

"That's not bad. It seems that you have noticed a lot of details, Phineas." Han Yi gave Phineas a look of approval at Phineas. Generally speaking, this kind of artist development agreement will require musicians to divide the business in the entire field.

, whether it is recording works, music creation, performances, endorsements, or even film and television revenue, income needs to be distributed.

The agreement between Bili and Platoon was obviously carefully revised and the income from other parts of the performance was deliberately removed from the sunset clause.

If it is not removed, Billie Eilish recorded a gross profit of $18 million on its first world tour alone, and Apple even spent $25 million to buy the channel distribution rights for Bili documentary in 2019. You guess who the Platoon people have

What's the success?

"I'm just learning hard." Phineas spread his hands, "and there are still many things I don't feel like I'm doing well."

"So, you are Bili's manager now, are you?"

"Yes, he is the best manager in the world." Bili used her hands to stumble on Phoenix's short brown hair. She seemed to be naughty and careless, but in fact anyone could observe her trust and dependence on her brother.

Then, then

"So, manager, we... have a cooperation to talk to you." Han Yi's right hand swung back and forth between himself and Zhao Youzhen, "We hope to become your manager, A&R, record company, distribution company,

And the performance agent, you will become your greatest helper to the Coachella Festival, your backstage supporter for every stop of your world tour, and your thanks to the Grammy podium."

"Note, I'm talking about you." Han Yi pointed at Bili, and then at Phinias, "Billie Eilish, and FINNEAS."

"Just like I mentioned to you..." Zhao Youzhen inserted the topic at the right time, and she put the news from Billboard magazine in front of the two, "Yi Company has just acquired 40% of the equity of United Artist Brokerage Company.

. ""

"That is, as long as you want..."

Zhao Youzhen hugged Bili and showed a very convincing and moving smile.

“Whether it’s Demi Lovato, Florence + The Machine, or Paramore. Any artist of any kind can be the opening guest of their tour right away.”

Speaking of this, Zhao Youzhen couldn't help but turn her eyes toward Han Yi. The reason why she was so eager to cooperate with Han Yi and generously recommending her most optimistic artist is that she valued what Han Yi will enjoy in the performance market.

The right to speak.

For newcomers who are new to the world tour with long-standing celebrities in the industry, regardless of the exposure and attention that comes with it, just the promotional posters you get are enough to make them compete with their peers

The opportunity is on the way.

At this time, Han Yi was also staring at Zhao Youzhen with an inexplicable smile.

Of course, there is no derogatory meaning in this smile, and Zhao Youzhen's words and expressions are excellent enough.

What he was feeling was just the ruthlessness of time.

In 2016, Demi Lovato could actually be used to lure Billie Eilish.

"We can get you on any stage, not just Coachella. Good morning America, or even Jimmy Fallon." Han Yi added a footnote to the beautiful vision depicted by Zhao Youzhen, "The sky is the limit."

"So, if we sign..."

The future that Han Yi and Zhao Youzhen point to is certainly bright, but Phoenix, who has been rushing around Los Angeles for his and his sister's music career since early on, has heard too many similar promises.

What he cares most about is the actual numbers.

"Will it be a 360 agreement, right?"

A traditional record agreement only contains a single aspect of the artist's career. If a contract includes both the record and music copyright distribution part, then this agreement is usually called the 180 agreement because it contains the required content for recording music.

All rights and interests. If the performance part is added, the contract will be upgraded to 270 degrees.

As for the 360 ​​Agreement, it is better to understand that any rights and income related to the performing arts career are within the scope agreed in the agreement. The artist allows the company to play streaming media, live performances, peripheral sales, music licensing, commercial endorsement, etc.

In exchange, the company also needs to provide financial and professional resource support to provide comprehensive assistance in artist packaging, music production and marketing.

As early as 2002, Robbie Williams reached a cooperation with EMI similar to the 360 ​​agreement. The two parties established a joint venture, and Robbie moved all the performing activities to a new company, while EMI invested 157 million yuan.

USD in exchange for Robbie Williams' business income share in the entire sector.

Robbie Williams can earn 100% of physical record revenue, 28.75% of non-record revenue, 0% of online music revenue. In exchange, EMI will receive 71.43% of non-record revenue and 100% of online

Music income.

At first, the entire music industry was clamoring for EMI's stupidity, but it turned out that they won the big bet.

In the six months of the first half of 2003 alone, the joint venture recorded a gross profit of £35 million. According to the exchange rate at that time, it was a full $68.68 million, and Robbie Williams was able to get about 50.

%, while EMI can acquire the other 50% of the investment, which means that in just half a year, EMI recovered 21.9% of its investment.

You know, this is in 2003 when even iTunes is still in development. Robbie Williams, who signed six albums for a long time, will only reduce the share ratio in the future as physical records gradually decline.

Robbie Williams' success inspired a large number of superstars to sign contracts in the same way, the most famous of which was the shocking agreement reached by Madonna's manager Guy O'Sheri and live performance giant LiveNation in 2007.

$17.5 million in signing fees, $60 million in advance of three albums, $50 million in cash plus stock combinations, to get exclusive rights to host Madonna World Tour, and the right to use her portrait and name.

, even after paying $50 million, 90% of concert revenue and 50% of portrait and name usage fees belong to Madonna.

This agreement solves many inherent problems encountered by artists in the process of development. In the framework of the traditional music industry, artists need to work with record companies, music distribution companies, performing arts brokerage companies, performance companies, marketing companies, public relations companies, etc.

More than a dozen different partners collaborate at the same time, and each stakeholder has their considerations, and it is extremely difficult to form consensus and synergy. The emergence of this new form of the 360 ​​Agreement has reduced the number of artist partners from more than a dozen to

One, greatly improves communication and work efficiency, and also allows artists to better realize their personal career planning.

For companies that sign the 360 ​​agreement, the advantages are also obvious. They will now be able to fully enjoy the share of all the performing arts income of an artist, which will allow the company to invest resources for artists more with confidence without worrying about their own

Will efforts help other idle partners?

In addition, as mentioned earlier, being able to fully own the artistic assets of a superstar will also greatly improve the company's valuation and financing capabilities in the capital market.

Imagine that if UTA was not only Angelina Jolie's acting agent, but also had her portrait rights, name rights, and derivative goods sales rights, Nabohui Capital and Han Yi could also buy it for $190 million.

40% equity?

As a result, the 360 ​​agreement quickly became a new trend that everyone in the music circle in the 21st century talked about. It was not just superstars who signed this contract, but Jeff Hansen signed the first place with the Atlantic Records for Paramore.

After the 360 ​​agreement for the newcomer, mainstream record companies have also begun to fully embrace this all-round share agreement. Now, the 360 ​​agreement has become a standard contract in the music industry.

"Yes, it's the 360 ​​protocol, but it's not just the 360 ​​protocol."

Han Yi explained seriously.

"The 360 ​​agreement that mainstream record companies handed you over to review is actually a traditional record agreement, which only adds some other income distribution terms. In other words, they will still only give you a poor 15 in terms of record royalties.

% or 20%, but in the field of performances and endorsement, they want to get another 30%. It must be emphasized that record companies will not help you do any work in these fields for this 30%, they will make you pay for it yourself.

Just try your best to ask people to book performances everywhere, and then snatch 30% from your already shriveled wallet.”

"And what we want to do is treat you with superstar standards, Bili and Phoenias. We hope to jointly create a joint venture with you, jointly manage, jointly own, and all the acting careers, whether it is copyright distribution.

Whether it is a live performance, it will be carried out under the framework of this joint venture."

"Simply put, we hope that not only us, but also Ms. Zhao and I, can also become the real helmsman of our career."

Is it really so tempting?

Of course not.

Joint ventures are just another way to deeply bind musicians, making them feel that they really own a company instead of just signing an artist agreement. This mentality difference can help them stay stable for a longer time.

The land is developing on the same platform. The share Han Yi is preparing to give them is not much better than that of mainstream record companies.

"In the joint venture, you will receive a record royalty share of 25%, which is the same level as Jay-Z and Beyonce. In other business income, we only need 35%. Most importantly, we will not let you do professional work

In any field of life, at any stage of life, we will set up artist management companies, record companies, copyright distribution companies, live performance companies, and even the UTA I just bought now will join the ranks of promoting your development.

Come on. Every company I mentioned will hold shares in our joint ventures to ensure their full investment.”

Zhao Youzhen lowered her eyes, as if she wanted to cover up the smile on the corner of her mouth. Han Yi was indeed very insightful about the music industry, and his marketing concepts were also perfect.

Many people believe that the record industry is declining and music sales can no longer make much money. But in fact, with the rapid development of streaming media platforms in recent years, the influx of financial capital and the continuous rise of online royalties, the record industry has gradually become

Return to the prosperous state of the past, even more than that.

Take Billie Eilish's globally popular "Bad Guy" as an example. You can earn tens of millions of dollars in revenue on Apple Music alone. From 2019 to 2022, Bili's streaming revenue exceeded 80 million US dollars.

You should know that the actual music production cost of Bili album is less than 1% of this number.

In other words, even if the MV shooting and music marketing costs are added together, just from the revenue of streaming media, music sales in the new era are also profitable transactions. Even more than the so-called "State" that sells physical sales at 20 to 30 million yuan.

The golden age of the record industry is even more exaggerated.

It turns out that selling records requires the record company to pay a large amount of money in advance to suppress CDs and deliver them to record stores around the world through a complex logistics and transportation system. Once the sales forecast is not accurate enough, a large amount of inventory will be generated. Two years later, the record store will be

To return, you also need to pay your own money to transport it to the desert in Nevada.

What sales costs can record companies have to pay for today?

Is the mouse wear fee generated by clicking the "Publish" button?

In the conditions proposed by Han Yi, 75% of the music revenue share, almost all of them are net profit after deducting labor costs and taxes, and 35% of other commercial revenue is icing on the cake. Except for the concert, most of them are

He doesn't need to pay for music business activities.

In addition, each affiliated company holds a certain proportion of joint venture shares, which not only allows all business sectors to enjoy the future booming commercial value of Bili, but also allows the valuation formulas of each company in the future financing process.

Better clearer.

A joint venture can be raised once, and each holding company can be raised once, one asset, and multiple financings.

Eat more fish, and pull out all the fish bones and cook them to make rice.

No matter how you look at it, it is a more beneficial operation for Han Yi, and he can actually be so fresh and refined by him.

"It sounds very attractive, Mr. Han. If possible, can you please send us a copy of the agreement by email? Bili and I can read it carefully and consider it carefully."

Phoenas' social ability may not be as good as Han Yi's, but his level of caution is definitely not much different. Otherwise, he and Bili should have signed a blood and sweat contract that is unfair.

"To be honest, Yuzhen, Mr. Han, we have some record companies currently in contact, so it may be necessary... I don't want to seem presumptuous, but we have to make some comparisons."

"Of course, comparison is a good thing. What I don't like the most is the kind of person who signs a contract with all his passion, and spends years making news, and finds ways to break free." Han Yi had long anticipated Fini's.

Yas's reaction, "We will then send you a cooperation agreement to review. In fact, I hope that the longer you think, the better. The more cautious you make, the longer the effect you make."

Speaking of this, Han Yi sipped a sip of Coke and deliberately left a gap for conversation. Only after the cold and sweet liquid wrapped in bubbles came into his stomach, Han Yi slowly spoke again.

"We can proceed with the all-round agreement slowly, but I think the promotion of music itself cannot be stopped for a moment."

The main goal of today's conversation is about to emerge.

"The establishment of cooperation requires mutual trust, and true trust can only be generated in cooperation."

"So, my suggestion is that we can sign a music distribution agreement and record agreement for the song "Ocean Eyes", which will be copyright management, channel distribution and music marketing, and do not waste the life of every excellent work

Expect."

"To express our sincerity..."

“In this single agreement, we are willing to pay a $100,000 advance.”

Sorry, as I said before, I don’t want to present a career line without any sense of reality or professionalism. I also hope that reading my book will not only show you the stories, but also have a deep understanding of this industry after reading it.

If you have a full understanding, just treat it as a free music industry course!

I would like to emphasize again that I did not copy the so-called Baidu or Google. It was all coded by word by word based on the knowledge I learned and industry experience. Entertainment novels can also have the output of technical knowledge.

(This chapter is finished)