After rebirth, I became a great master

Chapter 615 Unifying the Martial World

Tangren Records acquired Huaxing Records, Fitto Records, Red Star Production, Wheatfield Records, and Earth Records in succession, for a total price of over 1.9 million.

This can be considered a completion of the integration of the record industry.

The core assets are, of course, mainly held by the Hong Kong government.

"To break the deadlock, you must first break the established rules. Innovation is destruction—disrupting the old order and establishing new rules!"

Zhou Haoran's business philosophy is all derived from the Internet.

Whether it's real estate or film and entertainment, it's all the same old trick.

Tangren Records has established a base of support in Hong Kong.

Next, we'll rely on this base to take over the entire Hong Kong government.

"Hua Xing Records is an established company, but its misconduct over the past few years has offended many well-known singers. Fitto Records is a new company with relatively weak resources, and its signed artists are all very young. To break this deadlock, they have to be ruthless!"

Zhou Haoran wasn't here to cause trouble.

What strategy should be used?

Wang Changlian also participated in this small internal meeting, which was attended by all his own people.

Zhou Haoran said, "A partnership system!"

How do we go together as partners?

Wang Changlian also runs an entertainment company and has signed several artists. For example, he took a liking to Xiong Dailin, the tea master from the Red Mansion Teahouse, and wanted to sign her to Enlight Media to become a host.

Nowadays, entertainment companies generally operate on a contract system.

Zhou Haoran said, "Give singers more freedom and decision-making power, and change the contract system to a partnership system."

"Abandon the contract system?"

Wang Changlian's expression changed slightly.

Zhou Haoran laughed and said, "We won't give up. At least we'll do both models together, giving artists the right to choose, especially those big-name artists."

What are the differences in a partnership system?

Wang Changlian is very concerned about this, because Enlight Media may also have similar operational arrangements in the future.

Zhou Haoran said, "With a contract system, all business arrangements are decided by the company, and the artist has no decision-making power. They can only obediently cooperate according to the contract. This system may work for some newcomers in the industry, but it is a huge constraint for many well-known artists."

"The profit-sharing ratio is different, isn't it?" Wang Changlian frowned slightly. "Once you become famous, you can modify the contract and get a larger share of the profits."

What is the profit-sharing ratio?

Zhou Haoran looked at Tang Shiyi.

"It's between 20% and 60%. If you're a newcomer to the industry, the commission is only 20%. If the commission reaches 50%, then you're a well-known singer or a popular pop star. If you reach the top level like the Four Heavenly Kings, you can get 60% commission, earning more than the company."

Tang Shiyi knew about his grand plan.

He wants to use Hong Kong pop culture to counter Korean pop culture.

So, I was quite shocked to hear about the recent situation of entertainment company agents in South Korea.

Many entertainment companies in South Korea have unfair contract terms.

Those idol groups only get a pitiful 5% cut of the profits.

What's going on in South Korea?

Wang Changlian found it hard to believe.

Zhou Haoran said dismissively, "Regardless of others, let's focus on doing our own thing. Different profit-sharing ratios can effectively alleviate conflicts of interest between entertainment companies and artists. However, there are still many selective disagreements between entertainment companies and artists."

Wang Changlian nodded. "A rock singer wants to make pop music, but whether the market will accept it is unknown. This could lead to losses, and the company won't agree. This will create a difference in their philosophies."

Tang Shiyi said softly, "There are many other disagreements, such as planning, marketing, album pricing, and even the choice of poster images. In the past, the management company made the decisions, and the artists had no say."

"The partnership system needs to be changed?"

Wang Changlian frowned.

I don't think this is a good idea.

Every profession has its own specialization!
A singer's profession is singing; they just need to sing well. As for song selection, market analysis, commercial marketing, pre-sales and after-sales service... these are all business matters and should be handled by the company's professionals.

This is the true nature of the market. Only in this way can risks be reduced and returns increased.

However, some singers, after becoming famous, want more power and want to be involved in everything... If they are allowed to do this, it will most likely cause economic losses to the company.

Zhou Haoran laughed and said, "Yes, the partnership system is meant to change this difference in choices and give the initiative back to the artists."

"Isn't this inappropriate?"

Wang Changlian disagreed.

“There is a way.” Zhou Haoran’s philosophy is also very simple: “Input and income are positively correlated, and power and responsibility are positively correlated. That’s enough.”

Wang Changlian, also a top student from Fudan University, quickly grasped his meaning and his eyes lit up. "A partnership system, is it about partners jointly contributing money?"

Zhou Haoran said, "Yes, we should set up studios for some well-known artists and those with the ability to lead teams, so that they can make their own decisions and operate their own businesses. They can make the music they want to make and release the albums they want to release. However, the company cannot be the only one providing the funding."

"How can the company's interests be guaranteed?"

Wang Changlian pressed for further details.

Zhou Haoran laughed and said, "Let's split it 50/50. It's a partnership, always 50/50. For producing a new album, the artist contributes half and the company contributes half. The artist decides on the specifics. If we lose money, we each bear half; if we make money, we each take half."

“This…” Wang Changlian immediately saw the shortcomings of this model. “In this way, Tangren Records may pay the price for many ideals.”

"Good thing!"

This is exactly what Zhou Haoran wanted.

Many singers have a "dream," such as releasing a folk album or a light music album.

The market didn't really accept it, but he just couldn't resist coming up with it.

This will inevitably cause losses to the company.

Therefore, record companies are unwilling to release it.

"Huh?" Wang Changlian couldn't understand this time. "This will cause a lot of business losses for Tangren Records."

"People are all made of flesh and blood. Only when they suffer losses can artists be more moved."

A key aspect of Zhou Haoran's internet thinking is grasping and utilizing human nature.

Isn't this too frivolous?

Wang Changlian believes that running a company cannot be based on acting on impulse.

Zhou Haoran laughed and said, "Newcomers have no voice. Even if they have dreams, they'll realize them later. Those who want to realize their dreams are all established and talented singers. However, they would find it difficult to do so with other record companies."

"Ok?"

Wang Changlian's eyes lit up, realizing the implication in his words.

Zhou Haoran said calmly, "Tangren Records' partnership system can help many well-known singers pursue their dreams. It's like a magnet, attracting many famous singers! We don't even need to actively poach them; they will come to us on their own initiative."

Tang Shiyi had spoken with him before and calmly said, "Poaching talent requires costs. It's better to save those costs and support well-known singers in pursuing their dreams."

“Ideals can’t put food on the table; it’s a 50/50 split. If an investment fails and money is lost, the artist will be more heartbroken than the company.” Zhou Haoran grasped human nature. “It’s much harder for artists to make money than for companies. When ideals clash with reality and they suffer market setbacks, they should turn back and cooperate with the company to release music that the market likes.”

Tang Shiyi said, "If the ideal is recognized by the market and money is made, that is a huge success. Tangren Records has the insight to recognize talent, which can build a strong reputation in the industry."

"Are you guys trying to unify the music scene?!"

Wang Changlian finally understood his junior's ambition.

This partnership system has completely overturned the traditional music industry model of the past few decades.

"The essence of business must be user-centric." Zhou Haoran has always held this belief. "The users of a record label are fans. If the fans don't like it, no matter how ideal it is, it's useless. The users of a management company are the artists. Only by satisfying the artists' pursuits can we build a stronger partnership between the two parties."

After a pause, Zhou Haoran continued, "Actually, if an entertainment company can satisfy either its interests or its ideals, it can persuade artists to stay. If neither side can be satisfied, there will definitely be a large number of artists leaving. In the past, the Hong Kong government had too many patriarchal systems like Shaw Brothers'. If neither profits nor ideals can satisfy the artists, the outcome is inevitable. He sold Capital Artists, he closed Shaw Brothers, and TVB will definitely decline in the future."

Tang Shiyi said, "Tangren Records is going to take a completely different path from Mr. Shao. We will not act as a parent but as a service provider, serving our artists well and providing them with both financial and personal fulfillment."

Wang Changlian followed the line of thought and slowly said, "If one condition is met, the company can be stable. If both conditions are met, it can become an industry model!"

"Yes, to unify the martial world."

Zhou Haoran revealed his ultimate goal.

(End of this chapter)