Chapter 2632 Related Transactions

"No, no, to be honest, HBO's next plan is to develop a product based on Internet streaming media, and HBO needs to make appropriate transformations."

Richard Plepler also wanted to pave the way for a grand narrative for the American drama industry.

Unexpectedly, Boss Zhou came up and got straight to the point.

That's good, so you don't have to talk nonsense.

Zhou Buqi frowned slightly, "There is no copyright sharing for streaming media?"

Richard coughed and said: "It can be operated according to the platter investment model of Hollywood movies. It is mainly economic sharing and does not involve copyright."

"Isn't this appropriate?"

Zhou Buqi glanced at him.

Richard said solemnly: "The cooperation model of "Game of Thrones" is not advisable. When we cooperated in financing this project, we signed a series of agreements on streaming media rights. This is not the case with HBO and even Time Warner. There was an uproar in the board of directors."

Zhou Buqi laughed.

Richard quickly explained, "Of course, this has nothing to do with you, it is mainly a mistake in our work. At that time, we did not pay enough attention to streaming media rights, and we lacked the foresight like you. But now the streaming media market has developed, Following the lessons learned from Game of Thrones, similar terms will never be repeated."

Zhou Buqi shook his head and said calmly: "Dick, since it is cooperation, the most important thing is sincerity."

"Of course, of course."

Richard looked embarrassed.

Zhou Buqi said: "The biggest difference between investment in TV series and movies is that movies can enter theaters and have a huge box office market. The existence of the theater market can bring greater guarantees to investors. ."

Richard opened his mouth, but didn't say anything.

Looking at the serious face of the young boss Zhou, he really couldn't utter a single word of those fancy negotiation rhetoric. It's like a primary school student who doesn't even have the courage to lie when faced with a teacher's question.

After hesitating for several times, Richard forced out a sentence, "TV dramas also have many profit channels. In this regard, HBO has been operating for twenty years and has rich experience."

Zhou Buqi was unmoved, "According to the past promotion model of HBO TV series, they will not cooperate with public television networks to earn advertising, nor will they cooperate with local TV stations. There are even great restrictions on the sale of overseas copyrights."

Richard said quickly: "It doesn't matter, HBO can pay a higher purchase fee. If the TV series's ratings are high enough, there will be a share of subscription fees in the future. In the past few years, HBO has cooperated with many institutions, and in the industry A consensus has been formed that cooperation with HBO is more profitable than cooperation with public television networks such as ABC, CBS, and NBC. In the future, when HBO launches streaming media products, more profits will be shared with partners. "

Indeed, HBO makes a lot of money and is generous enough.

The first choice for cooperation with American dramas must be HBO.

It has even formed a brand effect.

The best projects and the best scripts are given to HBO first and let them choose first. The remaining choices are other TV stations and streaming media like Netflix and Hulu.

Zhou Buqi is not satisfied at all, "As far as I know, in the past, when HBO cooperated with other production organizations, there must be copyright sharing."

Sharing is allowed, but it needs to be led by HBO.

Richard was using such high-sounding arguments to deal with it again, and felt like he was breaking out in a cold sweat.

Zhou Buqi is not so easy to fool.

Just like a Hollywood movie.

By cooperating with Hollywood giants, you can indeed share copyrights in name.

For example, Legendary Pictures holds the copyrights to a large number of high-quality movies, including "Inception," "Planet Crossing," and "The Dark Knight," all world-class masterpieces that are very attractive, but in fact, these Copyrights only have "dividend rights" and no "control rights".

It's really in Warner's hands.

Warner does whatever it says, and the operation behind it is very reasonable. Behind Warner is Time Warner, a media giant with a huge business, with hundreds of subsidiaries and affiliated companies.

With Warner having control, it is easy for it to conduct various related-party transactions internally.

For example, the pay TV rights price of "Inception" can be as high as 50 million U.S. dollars, but it was sold to HBO for 10 million U.S. dollars...

Because Warner and HBO are brothers of the same family, they are all one family, and the relationship is left-handed and right-handed.

This kind of related party transaction is very deceptive.

"Inception" only earned US$10 million in revenue. When dividends are paid to Legendary Pictures, they will be shared in proportion to the base of US$10 million.

Although related-party transactions are strictly prohibited by law, the valuation of this intangible asset itself is decided by Hollywood giants, who serve as both referees and athletes.

It is simply impossible for independent film companies to compete with Hollywood giants.

What's more, Hollywood has the privilege of even having to give in to the White House, and often turns a blind eye.

"this……"

Richard was very worried, as if he was bitten by a snake once, he would be afraid of well ropes for ten years.

During the "Game of Thrones" project cooperation, he negotiated with Boss Zhou on behalf of HBO and was really deceived. Obviously this is HBO's flagship drama, but due to the loss of streaming media rights, this series has become a key magic weapon for Netflix to attract users.

If he is tricked by Boss Zhou again this time, he, the newly promoted CEO, is likely to step down in a flash.

Zhou Buqi is too lazy to waste words, and he is not a professional. It is difficult to sort out too many details. He mainly talks about general ideas, and specific matters must be left to a more professional team to discuss.

"Cooperation is possible, but how can we protect the interests of investors?" If Zhou Buqi wants to do something big in American TV drama financing, he must first solve this matter. "How to prevent related transactions?"

Richard said: "Party B can participate in cooperative projects as a supervision."

"This is not enough."

Zhou Buqi shook his head.

Supervision is useless. Hollywood has thoroughly mastered all kinds of related transactions. Although HBO is a New York company, it is a brother to Warner, and its relationship network also covers Hollywood.

Richard coughed and knew that he couldn't deceive Boss Zhou on this matter, so he simply told the truth, "The purpose of cooperation is to make money. As long as we can make money."

It’s just like Hollywood!

Are there related transactions?

It doesn't matter.

As long as the project makes money and investors share the profits, that's enough. Even if the points are much less, investors will be satisfied as long as the rate of return reaches the standard.

In fact, many things are like this.

For example, when buying a fund, you can do whatever you want with the shady rules. As long as the fund makes money and brings benefits to the people, it is a good fund. For example, when watching a movie, you can do whatever you want with the hidden rules, as long as the movie is filmed. , it is a good movie if the audience feels comfortable watching it; including many politicians, you can be as greedy as you like, as long as you can bring real benefits to the people, incompetent and honest officials are more hateful than capable corrupt officials.

Zhou Buqi nodded, "You can't guarantee that every project will be profitable. Profitable projects are easier to talk about, just share the profits according to the agreement. What if it is a loss-making project?"

"this……"

Richard felt there was something in his words.

Zhou Buqi said calmly: "I know that asking for copyright from the main controller will break the balance of the industry. But in the final analysis, we do business for profit. Many projects that lose money are not because the project itself is not good, but because of the control The absolute control power held by the other party, and the monopolistic nature of related-party transactions, caused project losses. As we just said, monopoly has too many hazards. This is true for the industry, and it is also true within the company."

Richard said "hmm", feeling bad.

Zhou Buqi said: "To solve this dilemma, the most important solution is to unbundle power, which is to introduce a competition mechanism. If Party A is unable to operate this project well, then it will be left to Party B."

"This is impossible!"

Richard was shocked, he didn't dare agree.