69novels Chapter 041 Everyone Has a Bright Future
Chapter 041 Everyone Has a Bright Future
"Different? How do you expect it to be different?" Hong Jie retorted, keenly sensing that Yang Du might be about to make an exorbitant demand.
Yang Du calmly said, "We're shifting from profit sharing to revenue sharing."
Tao Cheng, who was originally nestled on the sofa, half-closing her eyes and listening to the two chatting, widened her eyes instantly upon hearing these four words, and even her drowsiness vanished.
"Revenue sharing?" Tao Cheng couldn't help but exclaim in surprise. "Junior, you really dare to ask that. If Director Fang hears this, he'll probably have security escort you out of the building."
She couldn't help but take a closer look at the tall boy in front of her.
Just two weeks ago, Yang Du was a college student who stayed up all night working on music arrangement for a producer position. Now, he can casually ask for a share of the profits.
This rate of growth is simply astonishing.
Of course, my appetite has also increased day by day.
"Director Fang is the director of both the artist and production departments, he shouldn't have lost his composure like that," Yang Du said innocently. "Besides, it's still a 10% share, he didn't ask for it to be increased to 15% or 20%, the numbers haven't changed, it's just a change in the calculation method."
"Stop trying to change the subject." Sister Hong laughed in exasperation, glaring at Yang Du. "On the financial statements, the two are completely different."
She quickly did the math: "Take the revenue of 'Flammable and Explosive' as an example. In the first hour, it had 55 downloads. At a price of 3 yuan per download, that generated 165 million yuan in sales."
"But this money can't go directly into the company's account. Digital streaming media platforms like Tencent and NetEase Cloud Music, as distribution channels, will directly take a 30% channel fee."
"The remaining 115.5 million is the base for Jinshi Music's settlement. Previously, you received 10% as a songwriter, which is called net profit sharing in the industry. This was distributed based on the 115.5 million."
"As a legitimate record company, Jinshi's approach is relatively respectable; they only deduct distribution fees. If it were one of those unscrupulous, powerful labels, they would have deducted mastering costs, promotional expenses, and so on on top of the 115.5 million..."
"After deducting all the accounts that comply with accounting rules, the net profit that can be used for distribution can even be made into a negative number."
Yang Du nodded slightly. He knew in his heart that this logic was exactly the same as the financial magic tricks in Hollywood in his previous life.
A blockbuster film that grossed $12 billion worldwide can be made to appear as a loss by the production company through internal calculations, thus perfectly and legally depriving the creators of their share of the net profit.
"But what you want now is a 10% cut of sales!" Sister Hong couldn't help but tap the table. "It's the same sales volume of 165 million, but you're taking 10% of that. What does that mean?"
Yang Du said, "This means that the platform's commission, all subsequent promotional costs and operational risks will be borne by Jinshi Music alone, and have nothing to do with me."
You know that too?
Tao Cheng stared wide-eyed at Yang Du.
Based on the original net profit sharing, Yang Du would receive 165 million * 70 * 10% = 11.55.
Based on the revenue sharing, Yang Du will receive 165 million * 10% = 16.5.
The difference in download revenue in the first hour alone was nearly 5.
If we extend the timeframe to the entire lifecycle of a single, and add streaming revenue sharing, the difference would be a staggering figure.
This kind of revenue-sharing treatment is something that only top producers can dream of.
Sister Hong sighed: "Yang Du, let me be frank with you, this isn't a matter of difficulty, it's a direct challenge to Fang Lei's bottom line. Even if Director Fang were to foolishly agree, the senior executives in the legal and finance departments would definitely reject this contract."
"If we set this precedent for you, how can the company use the same terms to regulate other frontline producers in the future?"
Yang Du laughed: "Sister Hong, if it were just a regular contract, I wouldn't need to trouble you for help. Besides, this is just a single. If it were an album, I would definitely follow the rules."
"You're smart enough to know your place. Have you ever seen a director in the world whose revenue is based on the total box office? The national special fund and surcharges take 8.3% first, then the theater chains and cinemas take 57% of the remaining 91.7%, leaving only 43% for the distribution and production companies!"
"Also, don't flatter me. I'm from the talent management department; matters concerning artists and production are none of my business."
"But you just said you're in the artist management department," Yang Du emphasized, enunciating each word clearly.
Upon hearing this, Sister Hong's eyes twitched slightly, and she pointed at Yang Du, saying, "You little rascal... you were waiting for me here, weren't you? You think our talent agency department doesn't care about the production department's profits?"
"Isn't that right?" Yang Du offered his understanding analysis. "As the head of the artist and production department, Director Fang is responsible for discovering singers and producing music. The department's KPIs are directly linked to the book profits of singles and albums. Of course, he'll stick to the cost and feel bad about the piece of cake I took away."
"But Sister Hong, you're in charge of managing people. How much the records sell for and how much profit we make won't have a big impact on your year-end bonus. That's the production department's business. You just need to focus on the artists."
"Whether Lin Xu can make it to the top of the charts with 'Red Rose,' whether he can debut smoothly, whether he can become famous, how many times his value can increase after he becomes famous, how many brand endorsements, variety show offers, and commercial performances he can bring—these are the core interests of the talent agency."
The mixing room fell into a brief silence.
Sister Hong leaned back on the sofa, her fingers unconsciously rubbing the armrest: "That makes sense. At this stage, Lin Xu really needs a representative work that can help him gain a foothold, and 'Red Rose' is currently the best stepping stone on the market."
"But—" Hongjie changed the subject, "Fang Lei is the director of artist and production department. He has the power of life and death over when a song is released, what song it is, and how much resources are invested."
"Tao Cheng and I are still counting on him to give us the green light in the future. We all work under the same roof at Jinshi, and we'll see each other all the time. If I openly collude with outsiders to cut into the production department's profits, and this gets to the board of directors, my job as his agent will be over."
Yang Du understood immediately; the implication was that it was acceptable to act blatantly.
He chuckled and said, "Why would we let Sister Hong take the lead? The villains will naturally be played by our Qiuniu Studio."
"In a couple of days, I will have my agent, Yuan Xiuqing, formally visit Director Fang. You know best about Sister Qing's business capabilities; it was Sister Hong who introduced her to me in the first place."
"At the negotiating table, Sister Qing will play the role of the meticulous and ruthless one, stubbornly sticking to the 10% revenue share and dragging the negotiations into a stalemate. Sister Hong, you just need to find out about this stalemate unintentionally."
Hongjie instantly understood Yang Du's meaning: "Then, I can legitimately go and chime in?"
The rhetoric was roughly that Lin Xu had finally found such a perfect song, and it was about to take off. How could the production department hold him back just because of a small profit share?
It's a small matter if Lin Xu is delayed, but if Yang Du takes "Red Rose" and turns around to cooperate with Century and Yun Ge, then the loss will be huge.
"That's right, it would be even better if Sister Hong were willing to complain to the higher-ups. At that time, Sister Qing would insist on the revenue sharing, Sister Hong would create anxiety, and the higher-ups would put pressure on her. With pressure from both inside and outside, Director Fang would most likely be willing to compromise."
"Thank you, and you also helped me establish a persona in front of the higher-ups that I'm wholeheartedly fighting for opportunities for artists."
Sister Hong took a deep breath and made a decision: "I'll give it a try, but I can't guarantee it will work."
"As long as Sister Hong is willing to give it a try, we have a 70-80% chance of success."
Yang Du summarized in a serious tone: "Director Fang got a chart-topping single, impressive results. Lin Xu made a successful debut, getting his ticket to the world of fame and fortune. Sister Hong, you cleared the initial obstacles for artists to monetize their careers. And me, I got my share of the revenue."
"Everyone has a bright future."
Win-win!