Chapter 1257 The drunkard’s intention
5%.
There is no doubt that this number is impactful.
Whether it's Edgar or Lucas, they all vaguely noticed something unusual——
Being too stingy and refusing to cede any benefits is obviously not a good thing; but at the same time, being too generous and giving up most of the benefits gracefully is also not a good thing.
Abnormality is bound to be a monster.
However, Edgar and Lucas had very limited understanding of the music industry, and they couldn't hold anything back even on paper.
At this time, they noticed something unusual, but they had no idea what kind of medicine was sold in Matt's gourd, so they had no way of getting it if they were ready to fight back.
Sure enough, a professional music agent is still needed——
Every other line is like a mountain, this statement is true.
However, Anson, who had been sitting obediently since Edgar had spoken, chuckled.
"No wonder my mother always said, never trust a stranger easily, maybe he is the big bad wolf."
Matt noticed the bones in his words and looked at Anson with a smile, "So, you are Little Red Riding Hood?"
Anson also raised the corner of his mouth, "Times have changed. In the past, Little Red Riding Hood might have surrendered, but now, Little Red Riding Hood will resist."
"Matt, how much does a song cost on iTunes?"
Edgar:?
Lucas:?
To be honest, they really don't know the answer to this question.
Matt's heart moved slightly, and an uneasiness was emerging from the depths, but Matt still remained calm, "One dollar, ninety-nine cents to be exact."
Anson, "What about the profit share the singer gets from each song?"
Matt didn't want to be fooled, "This is an industry secret. Sorry, I can't answer."
Anson pursed his lips slightly, "Well, why don't you let me guess? You don't need to answer, you just need to give me a look in response, how about that?"
Matt had an unknown premonition, and that uneasy feeling was gradually expanding——
Things are out of control.
Digital audio sources are still in the early stage of development and are on the rise. There is a lot of chaos and there are no standards in the industry. Therefore, different companies on different platforms are groping. Naturally, there is no unified standard.
Matt said it was confidential, and he was not lying. This high-level intelligence must not be leaked, otherwise competitors will immediately start malicious competition.
However, seeing the mischievous gleam in Anson's eyes, Matt felt uneasy.
Matt gave a wry smile and spread his hands.
"Anson, unless you agree to cooperate and we formally sit down at the negotiating table to negotiate, otherwise, you know, I cannot give any form of response."
Immediately, the conversation changed.
"Of course, if you are ready and we enter cooperation mode now, that will be a different matter."
Matt is trying to save the day.
Unfortunately, Anson didn't buy it.
"Five cents," Anson said.
Edgar and Lucas were both stunned.
Edgar blurted out, "How much?"
Lucas glanced at Matt quickly. Although Matt's expression was calm and impeccable, Lucas still caught a bit of surprise——
Anson guessed correctly.
Not only hit, but accurate.
Because it was so accurate that even a veteran of Matt’s level was briefly shaken:
How did Anson guess it right?
Five cents.
A song only costs five cents? In other words, it is only 5% of sales.
Therefore, if you add another 5%, which is ten cents, Anson will be able to get ten cents for every download of a song on iTunes.
A thousand times for one hundred dollars?
No wonder Matt is so generous, giving 5% as soon as he opens his mouth!
Edgar and Lucas both looked at Matt, with a look in their eyes, and the happy atmosphere suddenly became tense.
Matt is at a loss for words——
He couldn't admit it, but he couldn't deny it either.
In fact, the entire industry is currently in its early stages, including iTunes itself, which is still exploring and negotiating, and the industry has not yet been unified and standardized.
After all, iTunes' own paid music download feature was just launched in 2003, less than a year ago.
Currently, iTunes is trying to fully cooperate with music companies and musicians, and there are still many variables in the negotiations.
This needs to be divided into two parts.
Some are independent musicians.
That is to say, there are no record companies to participate in dividends. iTunes mainly adopts a 50-50 method. Each song is one dollar, Apple gets 50 cents, and independent musicians also get 50 cents.
This method is very gangster logic. Apple did nothing and just took half of it. However, independent musicians particularly liked it.
Because they cooperate with record companies, their royalties are often less than 20%, and now they have been raised to 50%. Without the layers of exploitation by record companies and distribution channels, they can directly see the benefits increase significantly, which allows them to not be subject to Concentrate on making music without external interference.
Part of it is the record company.
Currently, Warner Records is bearing the brunt, but the negotiations between Apple and Warner Records are very stalemate.
Apple's goal is to take 40% of the dividend; but Warner Records allows Apple to take 30% of the dividend, which is almost the same as the dividend ratio of traditional record stores and other distribution channels.
In other words, Warner Records does not resist the trend of the times. They are willing to incorporate digital music source platforms into their distribution channels, but they refuse to change their model and treat iTunes as just another record store.
At the same time, Warner Records turned around and told musicians that new distribution channels require a lot of investment, distribution and promotion costs continue to rise, and the royalty dividends given to singers in the digital music source part need to be reduced and controlled between 5% and 15%, with the top level Singers only account for 15%.
One plus and one minus, Warner Records firmly controls the interests as high as 55%, or even 65%——
This is the real robber.
Otherwise, how can we say that all these big companies are monsters that eat people without spitting out their bones?
Of course, everything is still in the stage of exploration and negotiation, variables always exist, and these figures cannot be said to be 100% certain.
But one thing is certain, in front of these big companies, independent individuals such as singers are always a vulnerable group, and this has never changed.
The 5% Anson mentioned is the minimum amount, equivalent to the bottom line, and Matt cannot deny its existence.
The problem is that Matt can't explain, otherwise he might leak the content of the negotiations between Apple and Warner Records and inadvertently leak trade secrets.
On the side, there are two men, Edgar and Lucas, who are eyeing him. Matt must be cautious.
Therefore, Anson posed a difficult problem, a dilemma.
Matt was stunned for a moment, then laughed dumbly, "Anson, you did it on purpose, right?"
Obviously, Anson deliberately put Matt in a dilemma.
Anson looked innocent, "If I am wrong, you are welcome to correct me at any time."
After saying that, Anson spread his hands and made an invitation gesture.
Matt shook his head slightly helplessly.
Unexpectedly, Anson changed the topic, "The point is, you just said that iTunes is willing to sign a special agreement, which is 5% higher than the standard agreement. Does the 5% here include the cooperation with Warner Records, or does it not include it?"
The drunkard's intention is not to drink.
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 really stand at the top of the pyramid are all smart people, no matter how stupid or vulgar they look on the outside.
(End of chapter)