Entertainment 2000: Supporting female stars will bring you a hundredfold return

Chapter 291 Project Groundbreaking Ceremony: How Many Hundreds of Millions Were Lying in His Account?

No wonder Warner's CEO Xu was anxious.

The problem is piracy, and it's very serious.

According to statistics from 98, pirated products accounted for 96% of the total sales of Impression products that year.

Only 4% are genuine.

It's 2003 now, and the situation is slightly better, but the piracy rate for top singers like Tang Wen, Jay Chou, and Michelle Sun is still over 90%.

The difficulty in combating piracy lies in the interests involved.

Despite the country's strong crackdown efforts, which result in the seizure of hundreds of millions of pirated products and the arrest of numerous individuals each year.

Unfortunately, the cost of piracy is too low, while the profit is too high.

Mr. Xu explained the market rates: "...The production cost of a master tape is only a little over 1 yuan. Director Tang, do you know how low the cost of copying a cassette tape is?"

"How many?"

"Two cents."

Tang Wen couldn't help but sigh; the Chinese people are still too clever.

In the south, if pirate cassette tape factories operate at full capacity, the total output across several provinces could reach 30 billion tapes.

"The total cost of a pirated cassette tape is only two yuan, but they sell it for 5 to 10 yuan, making several times the profit!"

In contrast, legitimate copyrights have a low profit margin because they have to share profits with singers, producers, and songwriters.

Most importantly, public awareness is currently weak.

A Warner survey showed that over 70% of people believe there is no difference between pirated and genuine products.

"Forget about dinner, I'm on my way to another city right now. I have an idea, you can take a look."

"You said my assistant is right here. I'll put it on speakerphone and have him take a quick note." Mr. Xu didn't have high hopes, but he still gave Tang Wen enough respect.

"The anti-counterfeiting serial numbers for tapes and CDs must be changed to a randomly generated string of letters and numbers. The specific algorithm must be kept secret, so that we have the ability to distinguish between genuine and counterfeit products if they are pirated."

"This? Isn't this cost too high?" Mr. Xu's lips twitched, his hopes completely dashed.

Director Tang's ideas are out of touch with reality.

"The cost is not high, and Renren.com can collaborate with music companies in the industry. Renren.com will provide technical support."

It's just a website where you can easily verify authenticity by entering a code.

It's very simple to make.

As for the maintenance costs, of course, they are covered by the major music companies.

When the cost is spread out, it is also very low.

"...Then, based on the official code, a monthly lucky draw will be held. Prizes could include concert tickets, autographed photos, autographed albums..."

Listening to Tang Wen's well-organized explanation, the small flame of hope in President Xu's heart was rekindled.

But he didn't understand the internet and was still worried about the cost: "Mr. Tang, this is difficult to do. I'm not complaining, but our big companies can set up a special department to handle this. As long as it can increase the sales of genuine products, it will be profitable for Warner. But other companies in the industry probably can't do it."

"I understand, we can outsource it." Tang Wen's approach, of course, is not that simple.

"Uh? Outsource it to us?" Mr. Xu began to consider the feasibility.

Before he could think further, Tang Wen quickly interrupted, "It's not outsourcing to you, and you don't need to set up a special department. At first, you'll be responsible for providing the prizes and having the singers cooperate in the promotion. The first year is a trial cooperation phase, so you can charge less, or even no fee at all."

what? !

Is there such a good thing?

But where can you find such a sucker, uh, such a good person?
"If that's the case, then of course there's no problem. It's hard to say about the vast rural areas, but in first- and second-tier cities, the copyright protection rate will definitely increase. Even if it only increases by two or three percentage points, that's still a considerable income. The main question is, who will we outsource to?"

Tang Wen smiled faintly and uttered four words: "JD.com".

It's a perfect match for his major; Dong Ge started out selling CDs.

After thinking for a long time, Mr. Xu said, "You invested 300 million yuan in an online shopping mall."

Tang Wen initially announced an investment of "300 million," and now the results are evident.

Anyone who frequently follows financial and entertainment news will remember the name "JD.com" because of Tang Wen's "three hundred million".

This effect is something that even millions of dollars in advertising fees might not achieve.

After Tang Wen explained the combination tactics, General Manager Xu felt that everything made sense.

JD.com gained fame, record companies benefited, and fans supported legitimate music because they could win prizes.

"The prizes for the raffle should include some unique items, such as custom-made autographed posters, birthday greeting videos, and so on."

"A blessing video?"

"Hmm, this can be considered the grand prize. The singer can record a video for the fan, read out the fan's name, and post it online."

In later generations, these videos wishing people a happy birthday or a successful business opening even became an industry chain.

Upon hearing this, Mr. Xu realized that aside from the singers being a bit busy, it was practically a risk-free business for the company: "Mr. Tang is truly brilliant! The piracy problem that plagues the music industry is nothing to you."

"If it can increase sales even a little, that would be amazing. Renren.com will help promote the official version; you don't need to pay them, just sign a simple agreement." Tang Wen bared his fangs again.

Despite having a very pleasant conversation with him, Mr. Xu became extremely attentive when he heard the word "agreement".

"What kind of agreement?"

"Join the website. Unless Renren explicitly refuses the artist's entry to the website, they cannot join competing websites."

Mr. Xu was stunned for a moment before laughing and saying, "Mr. Tang, you're really joking. If artists have the opportunity to join Renren.com, who would go to some small website outside?"

He didn't say what he really thought: Renren.com does look lively with celebrities joining, but creating a separate page for each celebrity significantly increases website maintenance costs.

Furthermore, it's not clear at present that introducing celebrities into the business model offers many profit opportunities.

Other portal websites have no intention of following suit.

Within the internet industry, many people still believe that Tang Wen is messing around.

Losing money to gain publicity.

Celebrities joining Renren.com can bring in a certain number of fans and users.

But if the celebrity leaves, won't these fans leave with them?
It seems to benefit celebrities more than celebrities.

So, despite the lively atmosphere Renren.com is creating, there are quite a few people secretly enjoying the show.

Everyone wants to see what the final outcome will be for such a large, comprehensive website that has no profit-generating direction, unclear financial prospects, and frighteningly high maintenance costs.

Of course, Renren.com does generate revenue.

They are just very selective about their advertisers.

Since it started as a campus network, Renren.com did not accept the most profitable game advertisements.

Furthermore, they acted very "aloof".

The webpage is clean, without any messy ads flying around.

Even if their advertising unit price is higher, the quantity is smaller.

Other portal websites use various methods such as "button ads," "banner ads," "pop-up ads," and "text links."

There are so many different kinds that you might accidentally click on one if you're not careful with your mouse.

No one who spends a lot of time online is immune to annoyance.

This is one of the reasons why Renren.com is becoming increasingly popular.

The internet browsing experience is good.

With its constant stream of celebrity-related topics, it seems poised to become the number one social networking site and portal website in China.

Regarding Tencent's response, Renren.com allows login using a Tencent QQ account.

They had nothing to complain about.

Even if QQ Space is developed this year, it will only be a social space for acquaintances, and it will be very different from Renren.com.

Of course, Renren.com is not without profit.

In the first half of this year, the website will launch various lists such as "Entertainment Hot List" and "News Hot Search," which will significantly increase advertising revenue.

Secondly, Renren.com will launch a direct channel with JD.com, taking a cut from every transaction.

Third, the digital music section has been launched...

With this series of combined measures, revenue will see a significant increase. Tang Wen's game company is now on the right track, currently distributing two wildly popular games, "MU Online" and "Bubble Fighter," and is in talks with Japanese game developers about collaborations on "Fantasy Westward Journey" and "Stone Age."

Game revenue, advertising revenue, and business partnerships are enough to offset the costs of Renren's expansion.

Even if there's still a small hole left, Tang Wen can easily fill it with cashback from one or two TV dramas; that'll be enough.

Secretary Xu, please turn the laptop screen around.

He looked at the screen and repeated it to Tang Wen.

Finally, feeling that he and the singers were getting too good of a deal, he became a little uneasy: "Mr. Tang, these terms are too generous. You are truly a guiding light in the industry!"

"Go and talk to people in the industry first. Keep us informed if anything comes up."

After hanging up the phone, Xia Tian handed over a "meeting summary," which was exactly the topic of Tang Wen's conversation with Warner's CEO Xu.

Needless to say, she was also in charge of the specific coordination work.

It happened so suddenly that Xia Tian didn't have time to turn on her computer, so it was all handwritten.

Tang Wen glanced at it and nodded, saying, "Hire people if you need to, poach people if you need to, don't exhaust yourself."

Evening, Jiangnan Province.

Tang Wen and his delegation met with Secretary-General Zhang, who, under his guidance, went over tomorrow's schedule in advance.

After dinner, we checked into the West Lake State Guesthouse.

The bodyguard pushed open the door to the presidential suite, and a figure emerged from inside: "Surprise!"

It is the Yellow Saint Cloth.

The security team conducted a routine check and then quickly left.

Touching the twin ponytails of the yellow-clothed figure, Tang Wen thought to himself, "So sensible."

Huang Shengyi is from Shanghai, so it's very convenient for him to come to Yuhang.

Her arrival was arranged by Consort Jia.

"Will my presence interfere with my brother's important business?" This question is kind of adorably silly.

"No, you came just in time."

"Shenglong Plaza" is a multi-billion dollar project.

He's under a lot of psychological pressure and needs some guidance.

Those who are physically strong and enjoy reading will surely understand this.

Being physically strong is good, but it also makes you hungry easily.

The plain steamed buns from last night won't satisfy my hunger today.

Steering wheel in hand.

I stepped on the gas and drove into the bathroom.

A sudden rainstorm on West Lake whips up waves, and banana leaves flutter like the tide!
The seventh day of the new year.

Yuhang New District.

The media, who arrived early, had set up their cameras and microphones.

Since it's the foundation stone laying ceremony for a landmark building, it's destined to be anything but low-key.

Tang Wen, dressed in a sharp suit, looked incredibly handsome. As the host, he welcomed guests from all directions at the entrance.

"Mr. Ma, welcome, welcome!"

"Mr. Lin, please take a seat in the front."

Two rows of model-like hostesses followed and guided the guests to put on their corsages.

After the opening drum music, the leader gave a speech.

The cameras at the propaganda booth faithfully recorded every moment.

When they heard the total investment figure of "50 billion" RMB, everyone stirred and couldn't help but look at the excessively young and handsome face in the front row of the crowd!
Five billion in 2003!

Are there really that many?
The plan sounds quite plausible.

With a smile on his face, Tang Wen then joined his leader in breaking ground with shovels, making three shovel strikes in total, representing the "three elements of heaven, earth, and man".

The shovel in my hand had just been put down when the cannon salute went off, a total of 21 shots.

If we look at it 20 years from now, there will be plenty of aerial drone formation performances.

After the on-site ceremony, it was time for the core announcement segment.

Sign a contract with the person in charge and publish the project white paper...

Secretary-General Zhang and Tang Wen, together, were interviewed by reporters: "We noticed that Mr. Tang is the only investor in [Shenglong Plaza]. With such a large project, may we ask Mr. Tang if you feel any pressure in developing it?"

Are the questions so sharp right off the bat?

The crowd, including Ma Yun who had come to join in the fun, all perked up their ears.

He knew Tang Wen was working on projects, but the scale of these projects was somewhat unexpected. Like most people present, he was very concerned about the source of Tang Wen's funding.

Could it be that some foreign capital has entered the market?

Actually, the reporter's question had been discussed in advance.

The project is of great significance, and rather than waiting for others to question it, we should demonstrate our strength in advance.

Tang Wen remained calm, smiled at Secretary-General Zhang and the bank manager beside him, and said to the reporter, "It seems that my own self-praise cannot dispel everyone's doubts. Why don't we ask these two?"

The reporter immediately turned the microphone around, secretly surprised: What is Mr. Tang's background? Is this an attempt to forcefully endorse him?
But can forced endorsement be effective?

It would be better not to address this issue.

Unexpectedly, the bank manager pulled an enlarged document from his bag, faced the camera, and said with a smile:

"President Tang's capabilities are beyond doubt! This is the project's dedicated bank account. Miss reporter, you can count how many zeros are on it."

Ok?
Even seasoned journalists were moved.

They had mentally anticipated the possible responses and arguments that Tang Wen's side might make, and had overestimated their abilities as much as possible.

I never expected that I would underestimate them!
There was absolutely no rhetoric, no fancy tricks!
They simply and openly displayed their investment accounts!

this--

Ma Yun, who was behind her, was also craning her neck to listen. She was equally surprised and couldn't help but guess: such a big project would take at least four or five years to complete. Three to five hundred million yuan in initial funding would definitely be enough.

Did Tang Wen put 100 million in his account?

Or two hundred million?

It can't be 300 million, can it?

Like the businessmen present, he understood the strategic importance of cash flow and cash reserves.

Wisely speaking, for this kind of project, you should pay an upfront payment and then just let it drag on.

When it can't be delayed any longer, then pay another sum.

Everyone does it this way; it's practically the industry standard.

The female reporter took a deep breath and gestured for the photographer to zoom in.

“One, ten, hundred, thousand… billion,” she paused.

Ma Yun smiled, crossed her arms, and said to President Cai beside her with an air of confidence, "Just as I expected, at most three."

"A billion."

what?
The entrepreneurs, including Ma Yun, couldn't hold back any longer.

The female reporter was also a little dazed, wondering if she had miscounted, but the camera had already recorded it.

Moreover, after the Arabic numerals in the bank account number, there were five large characters in traditional Chinese: "壹拾亿圆整" (One Billion Yuan). She didn't hide her surprise: "One billion? Mr. Tang's investment has already reached one billion?!"

“That’s right,” Tang Wen continued, “Actually, the relevant departments offered many favorable policies, including loan policies, but I refused. Such a large project shouldn’t be offered loans right off the bat; I wanted to show my sincerity!”

Therefore, I promise that this one billion yuan is dedicated investment funds and will never be used for any other purpose. I welcome supervision from all sectors of society.

He glanced around, a glint of shrewdness flashing in his eyes!

Ma Yun, Cai Chongxin, and others subconsciously avoided direct confrontation, not daring to meet each other's gazes.

(End of this chapter)