American Entertainment: Starting with playing the role of Little Beaver

Chapter 77: A New Opponent Has Arrived

"Mrs. Heywood, the final version of the contract has been confirmed, and all the previously disputed clauses have been revised."

"Okay, thank you, let's start signing then."

April 2003, 4.

After 72 hours of wrangling, The Beaver Company finally reached a contractual agreement with Warner Bros. and Disney.

Negotiations on the details were indeed complicated. For example, Barry Mayer stated that if Isabella no longer wanted to run the company in the future, Warner would have the right of first refusal to acquire it, and Isabella agreed.

Then, three problems arise here:

The first question is, how should we define Isabella's unwillingness to run the company?

Secondly, no one can guarantee that they will always own a company. If the Ross family were to leave Warner in the future, why would Isabella still give Warner face at that time? Her willingness to give Warner the right of first refusal was simply to prove to the Ross family, who controlled the situation, that they were allies and stood together, right?

But what if the Ross family were to leave...

I have no emotional connection with the new shareholder, so I can only handle things officially.

Thirdly, Isabella currently owns two companies, and may own more in the future. Therefore, does Warner have a right of first refusal to acquire her companies? But which company's right of first refusal is it?

Since verbal discussions are often vague, once they sat down formally, the definition of Isabella's withdrawal and Warner's right of first refusal were established: Warner had the right of first refusal if Isabella wanted to sell the Marmot Company.

Because the partnership between Isabella and Warner is currently only focused on music.

In that case, none of the agreements would involve Isabella's other companies.

Meanwhile, Warner's preemptive right to purchase the product only lasts for five years.

In other words, once the contract is signed, all the above binding agreements will not take effect as long as Isabella does not sell the Marmot Company to any external party within the next five years. Furthermore, there are specific requirements for the act of 'selling to an external party'. As long as Isabella does not sell the Marmot Company to an external company that is unrelated to her, it will not be considered a sale to an external party. For example, if Beaver acquires Marmot, that would not be considered a sale to an external party.

For example, if Isabella holds a 34% stake in Disney, then Disney's acquisition of the marmot would not be considered a sale to an outsider.

This is what the contract looks like.

If you don't eliminate the risks, there will be many disagreements and conflicts in the future.

Although Barry Mayer and Robert Iger didn't need to personally oversee the negotiations, Warner Bros. and Disney's legal teams were there. They could have negotiated with the bald guy and then signed a contract by sending it to him. But these two 'old men' showed no intention of leaving and stayed on set, waiting for things to be over.

Isabella could actually understand their behavior.

"The Voice of China" is about their future, so it's only natural to be cautious.

With the contract signed, they could finally go home with peace of mind. When they said goodbye, Isabella, in high spirits, joked with them, "Hey—you're finally leaving—do you know how miserable I've been these past few days?"

"When you're on set, it feels like the big boss is sitting in the company watching you work every day."

"This kind of life is not fit for a human being!"

The little girl's complaints made everyone laugh.

Barry Mayer coaxed, “Okay, okay, we’ll be right there.”

"Next time I need to contact you, I'll definitely call you in advance to let you know, okay?"

"hahahaha~"

Perhaps it's because the collaboration was successful that I'm in a better mood?
The words used to tease the child brought smiles to everyone's faces.

As they shook hands, Isabella suddenly remembered something else.

“Bob—Barry—I have one last question—”

“Go ahead,” Robert Iger gestured for her to speak directly.

"I'd like to know who you plan to invite as your mentor?"

The mentors in "The Voice of China" are actually very important.

Or perhaps, the mentors in talent shows are one of the highlights of the show itself.

This must be carefully considered.

Isabella hadn't mentioned it before because she had forgotten.

I really forgot.

But now, after she asked that one extra question...

"Oh, you mean this? We already discussed it a long time ago."

Barry Mayer said, "We'll invite MJ, Madonna, Elton John, and Paul McCartney."

"What?"

Isabella was shocked!

"Who do you think you want to invite?"

She doubted her ears!
Michael Jackson and Madonna need no introduction, and Elton John and Paul McCartney...

Elton John, the Rocket Man, is the most successful male artist in pop music history, bar none. His total record sales have exceeded 300 million, and his tribute song for Princess Diana, "Candle in the Wind 1997," is the most successful single in pop music history.

Paul McCartney, a former member of the Beatles, still had his albums sell like hotcakes after going solo.

With this lineup, The Voice of China is 100% guaranteed to succeed!

Oh wait—

With this lineup, no one in the world will be able to draft players anymore!
Because no matter what kind of talent show it is, in front of these four, they are all no match for Chuangfei!

"We'd like to invite MJ, Madonna, Elton John, and Paul Walker."

"Isa, is there a problem?"

The little girl's bewilderment prompted Robert Iger to repeat Barry Mayer's words.

The reappearance of the beaver would surely prompt the little beaver to reach out its paw—

"Bob, when you get back, just transfer thirty million into my account."

"Why?"

"You want to invite these people to do a variety show? The appearance fee for these four people is probably 400 million!"

Isabella said, "Since the mentors' appearance fees are 400 million, how much advertising revenue do you need to make to 'The Voice' to make a profit? Although we signed a revenue-sharing agreement, Disney is losing money, so how are you going to pay me my share?"

"So, give me 30 million first."

"If you ultimately fail to give me my share of the profits, I can still use this 30 million to sue you!"

The little beaver's absurd logic made everyone burst into laughter.

Seeing that it was almost time, everyone stopped chatting.

As he got into the car, Aiger waved to Isabella and said, "Isabella, we were just kidding."

"Even if Disney and Warner Bros. both step in, it's impossible for MJ, Madonna, Elton John, and Paul Walker to all appear at the same time."

“MJ didn’t like doing variety shows, Madonna’s asking price was too high, Elton might be able to come because we at Disney have a long-term partnership with him, but Paul… he’s on tour right now…”

"He wanted to hold 3000 solo concerts by 2005."

"I don't have time to record variety shows."

Upon hearing this, the little girl immediately breathed a sigh of relief.

Ah, she took what the two of them said seriously.

Because their current goal isn't to boost sales, but to gain power.

It's perfectly normal to go to great lengths for power.

But at the same time, she also felt some regret.

Michael Jackson, Madonna, Elton John, Paul McCartney...

This lineup is incredibly strong!
If she could collaborate with these people, wouldn't she become the fifth person in the pop music scene?

As for where the logic lies...

In the world of basketball, the secondary GOAT theory is that if you can't beat the first, you're second.

If she can't compare to the four above, then isn't she fifth?

Hehe ~
Just as Isabella was letting her imagination run wild... well, that's an ominous way of saying it. While Isabella was lost in her thoughts, news that Disney might be collaborating with Warner Bros. to develop "The Voice" spread throughout North America along with the return of Robert Iger and Barry Mayer.

Uh……

Ok……

The public won't hear any news about the development of "The Voice of China" until the project is officially announced.
Or rather, even among those in the industry, only a small minority can hear about the capital's strategies.

but--

Even a small number of spying individuals can already gather dark clouds.

Because these people all hold power.

"What did you say? Robert Iger is going to develop 'The Voice'?"

In the chairman's office of News Corporation.

Rupert Murdoch was listening to a report from his daughter, Elizabeth Murdoch.

Under his gaze, Elizabeth nodded and said, "Yes, this news is completely reliable because it came from the Disney Group. Michael Eisner confronted Robert Iger because of the disappearance of 'Millions,' demanding that Iger immediately create a variety show to replace 'Millions,' and then Iger went to England."

“I went with Barry Mayer.”

"They spent several days on the set of 'Azkaban,' and everyone on the set saw them. After returning, Disney immediately contacted Coca-Cola and McDonald's, reportedly to solicit sponsorships."

"Although Disney has not officially announced the production of 'The Voice,' all their actions point to 'The Voice.'"

Murdoch was increasingly agitated by the detailed account.

Because the most popular talent show on the market right now, "American Idol," is a project of Fox, a subsidiary of News Corporation.

Although American Idol didn't create the same frenzy as Million Dollar Broadcast, its success brought Fox to second place in overall ratings last year, second only to CBS.

Yes--

The rankings in the television industry change that quickly—

If a TV station can produce just one hit show, it can turn its fortunes around and crush all its competitors.

Then, the success of American Idol boosted Fox's revenue by at least seven percent last year.

Currently, the second season of "American Idol" has caused their income to surge by 19 percentage points year-on-year.

Such impressive financial reports have caused their stock price to continue to rise!
This also fuels their desire for consecutive victories!
But now——

Is ABC planning to make "The Voice"?
"What do you think?"

Murdoch pondered for a moment, then looked at his daughter.

While most second-generation business leaders are less business-savvy than their parents, Murdoch's daughter Elizabeth is an exception.

She is now very famous in the business world, and she was the one who brought "American Idol" to China.

Since his daughter had good judgment, Murdoch allowed her to participate more in the company's operations, because the best way to pass on wealth is to pass it down to close relatives, and hiring professional managers is a last resort.

His question prompted Elizabeth to share her thoughts: "Dad, I think the emergence of 'The Voice' poses a serious threat to us because the name 'The Voice' represents fame and audiences."

"If a movie based on 'The Voice of China' can gross 3.73 million yuan, and its soundtrack and CDs sell like hotcakes, then if it were made into a variety show, our 'American Idol' ratings would definitely plummet..."

There's a common sense in the entertainment industry:
That means the backbone of the entertainment industry is young and middle-aged people aged 18-49.

This group accounts for 80% of the entertainment industry's spending.

People over 49 years old contribute less than 3% to the entertainment industry, while those under 18 years old contribute 17%.

Then, the people who watch talent shows are generally young adults aged 14-34.

At first glance, talent shows seem like a goldmine in the entertainment industry, since their audience is the main consumer group in the entertainment industry. However, for television stations, the value of talent shows is not calculated in that way.

When the age of a program's target audience is very clear, the number of viewers for that program has an upper limit.

Why did "American Idol" fail to outperform "Million Dollar Man"?
Because "Million" is a program for the general public.

It's that simple.

When a show's viewership has a limit, each additional similar show in the market is equivalent to adding another enemy.

However, this is just the first problem Fox is currently facing.

The second problem is that for many years, the 17% under the age of 18 has been essentially Disney's private domain.

Disney basically makes all the money from children.

until...

The emergence of HP.

Harry Potter, which caters to an audience of 6-34 years old, has cracked Disney's golden image of fairy tales.

So, when the HP IP became so strong that Warner Bros. was encroaching on Disney's market share, Isabella Heywood, the star of HP, wanted to collaborate with Disney on... a talent show?

That's the kind of thing that would give anyone a nightmare if they heard it!

It's already terrifying that a show can generate its own traffic, but what the hell is a show that can generate paid traffic?

How to fight this!
Yes.

Before the battle even began, Elizabeth already felt that Fox had lost.

The logic here is very simple: when everyone is vying for a pool of traffic that can be paid for by one side, the paying audience will definitely not pay attention to their idol's rival show. Don't ask why, that's just how fans are.

Then, those who can't get traffic will explode.

Then, the snowball effect of the herd mentality will cause all competitors to starve.

Ok.

In Elizabeth Murdoch's eyes, the name Isabella Heywood was even more terrifying than the ABCs imagined.

ABC believes that Isabella's fans alone are enough to keep The Voice afloat.

But FOX believes that Isabella's fans can sway all other peers.

This assessment also caused Murdoch to frown and fall silent.

After a moment, he said, "So you mean... we can't let 'The Voice' become a hit..."

“If possible…” Elizabeth nodded.

Murdoch took a deep breath, his mind racing, and after a moment, he shook his head.

"You should go back first, I don't have any ideas for the time being."

"Then, you can keep an eye on this matter, or organize company discussions, and report any ideas directly to me."

"Okay, Dad."

Elizabeth knew her father needed time alone, so she promptly left.

Meanwhile, at Universal headquarters in California.

Vivendi Global's Vice Chairman, Bronfman Jr., was also listening to the report from Global Chairman Doug Morris.

"So you're saying the Ross family is retaliating? Barry Mayer doesn't want to sell Warner Music and then team up with Robert Iger to create a music talent show like 'The Voice'?"

“Yes, sir.” Doug Morris nodded and said, “I heard the project is already seeking investors.”

"The title sponsors are probably Coca-Cola and McDonald's."

"Their negotiations should be very quick, because Coca-Cola is a partner of both Warner and Disney, while McDonald's is a joint partner of Coca-Cola, Pixar, and Disney." "As long as these two companies are willing to invest, the project can start immediately."

"If they can launch the project this summer, then... even if you can still buy Warner Music, the price..."

"It's likely to change."

The story of Coca-Cola acquiring the HP franchise has already been mentioned and will not be repeated here.

Their relationship with Disney is as follows:
After Warren Buffett pushed Disney to acquire ABC, this old fox who likes to consolidate his own assets used a little of his power to form a strategic alliance between Coca-Cola, which he controls, and Disney.

From then on, all Disney properties, including its theme parks, offered Coca-Cola drinks.

McDonald's relationship with Coca-Cola, Pixar, and Disney is simpler:
McDonald's serves Coca-Cola, which is something Warren Buffett did to make Coca-Cola the preferred choice for major fast-food brands, thus better capturing the market and cultivating consumers' taste habits.
The food at Disneyland was provided by McDonald's. McDonald's thought Coca-Cola's idea was good, so they copied it.
Then, McDonald's Happy Meal has toys in it, right? In this day and age, those toys are exclusively licensed by Pixar, and the Happy Meal with Pixar IP is McDonald's most profitable meal item.

Half of Pixar's IPs belong to Disney!
So……

The most difficult part of setting up a TV program is attracting sponsors.
That's correct.

But you have to see who's doing it!
When these industry giants are intertwined with each other, as long as the project review is successful, attracting investment is a simple matter!

Special cases require special handling!

Since that's the case...

Do you think "The Voice of China" will definitely be a success?

Bronfman pushed up his glasses and asked in a deep voice.

Doug Morris nodded seriously and said, "Boss, Isabella Haywood is terrifying."

"On the surface, she owes her current success to the popularity of Harry Potter, but in reality, she is probably the only person in the entire project who can turn the popularity of the character and the movie into her own popularity."

"Because Hermione Granger's image is so good, so good that there is no fault to be found."

“There is even a voice in the industry now that believes that Hermione Granger may be the most successful female character in film history, without exception. If Isabella finishes her role normally, she will be the first to choose all the projects in the industry in the future.”

"Of course, that's how it is now."

“When companies get roles for people around her age, they give her priority. And when they consider a role, they also consider whether the script is suitable for her, which was impossible before.”

"And once everyone has reached a consensus..."

"The Voice of China is bound to succeed."

"So what do you think is the worst impact 'The Voice's' success has had on us?" Bronfman Jr. continued.

"Uh...at worst...you probably won't be able to start over at Warner Music..."

Doug Morris sounded somewhat regretful.

Bronfman Jr.'s reason for acquiring Warner Music is simple.

That is, wanting to start over, to begin afresh.

He proved to the world that he was not a spendthrift.

He proved to the world that his vision was correct and that music and entertainment is a good industry.

But all of that happened before.

When what he chose might be gone...

"Okay, I understand."

Bronfman responded softly, then picked up the landline phone from his desk.

Half a minute later, the sound of clanging and banging filled the conference room at AOL Time Warner's headquarters.

That's Ted Turner's cell phone.

Pick up a can...

"Edgar?"

“Yeah.”

"Is something wrong?"

"Ah."

Warner Music?

"Yes."

"We're in a meeting right now, and it's because of this..."

"Okay, Uncle Turner, I'll wait for your news."

As the phone call ended, Ted Turner looked around at everyone in the conference room again.

There are his own people in there, people from AOL, people from Time Inc., people from Warner Bros. ...yeah right.

Ever since he ousted the Ross family from the board, there hasn't been a Warner employee here.

"So...everyone...how do you all view this matter now?" he asked.

“Barry Mayer made a good move,” said Steve Case, the group’s current chairman and founder of AOL. “With Warner and Disney joining forces, it’s really not going to be easy for us to sell Warner Music.”

"It's not selling well right now, at least not at the moment."

"That's right, because selling Warner Music at this time is not in our interest."

Richard Parsons, the group's current CEO, cleared his throat and said, "Our fundamental purpose in selling Warner Music was to resolve the group's debt problems, and at the time of making this decision, Warner Music's market value had been shrinking."

"But now, can Warner Music's valuation rise?"

"In my opinion, we should postpone the sale."

Upon hearing this, everyone in the room began to look around.

Everyone's thoughts were racing, trying to catch what the people around them were thinking.

Including Ted Turner.

Uh……

That's right...

Ted Turner, who most wanted to dismantle Warner Bros., did not get angry at the moment...

Because Richard Parsons is the most powerful guy in AOL Time Warner.

This man is Rockefeller's servant.

His maternal grandfather was a follower of John D. Rockefeller.

About a hundred years ago, their entire family had been serving the Rockefeller family.

When it was his turn, he was 23 years old and had just graduated. He went to work as an assistant to Nelson of the Rockefeller family.

After Nelson's death, he went on to work for Nelson's brother, Lawrence Rockefeller.

In 1991, it was directly handed over to Steve Ross, the former patriarch of the Ross family, by Lawrence Rockefeller.

Back then, Lawrence was very optimistic about Steve Ross's grand vision. He thought Time Warner would be the next Disney, but no one expected that Steve Ross would go bankrupt right after he invested in him.

The subsequent internal strife only added to his troubles.

Since Time Warner was nothing to the Rockefeller family—who wanted Disney, not a lousy Warner—Lawrence left Time Warner to its own devices.

However, just because Lawrence can ignore it doesn't mean that others can act recklessly.

Currently, before making any major decisions, the group always goes through Richard Parsons first.

This is a sign of respect for true financial giants.

These people are wealthy; they do indeed control a considerable amount of means of production.

But compared to Rockefeller?
That's still a long way off.

Richard Parsons had previously been in favor of selling Warner Music, believing that selling the declining music business would revitalize the group and keep its total debt below $200 billion. But now...?
In Richard Parsons' view, if Barry Mayer had made The Voice a success, Warner Music might have become a cash cow for the entire group again, because the success of American Idol made Fox's partner BMG a fortune.

Like Disney, Fox doesn't have its own music company.

So when they were making American Idol, they approached one of the Big Five in the pop music scene, Borgman.

Let them be the protectors of music copyrights.

Then, Bodorman acquired the copyrights to all the music from American Idol, as well as management contracts for all the contestants.

Among them, the most valuable is undoubtedly Kelly Clarkson, the champion of the first season.

She has already brought in over 100 million in cash revenue for BMG.

Meanwhile, AOL Time Warner is currently negotiating with Bronfman Jr. for a total sale price of only $30 billion for Warner Music.

This gap...

Anyone with a normal mind would wait.

Let's see how much change "The Voice" can bring to Warner Music.

"So now... shall we... suspend negotiations?"

Ted Turner stared at Richard Parsons with a glint in his eye.

Richard Parsons understood what he meant; this guy just wanted to weaken the Ross family's power so he could control Warner.
He had always been too lazy to care about this matter because it had nothing to do with him.

As long as the group's stock price rises, the Rockefeller family will see positive returns.

But right now...

Before the Rockefeller family officially sold off their shares in the group, the group's interests were his interests.

"Ted, do you have a problem with that?"

Richard Parsons asked with a smile.

"No."

Ted Turner shook his head decisively.

"Then let's postpone it for now."

Richard Parsons smiled.

"it is good."

Ted Turner smiled and nodded.

But everyone knew he was unhappy.

Meanwhile, there was another guy who, like Ted Turner, was also unhappy.

That person was Michael Disney's tyrant, Eisner.

Upon learning that Robert Iger had obtained the rights to "The Voice," Eisner immediately realized that Iger, that bastard, had stepped in dog shit again, because the excellence of "The Voice" IP is known to all.

So……

"Bob has already made his move?"

"Yes, it's said that Coca-Cola and McDonald's are already going through the sponsorship process, and there's a lot of support within the group."

The assistant who came to deliver the news said, "Coca-Cola and McDonald's both think that 'The Voice of China' is a good show. Since they already have a cooperative relationship, they decided to jointly sponsor it, with each of them contributing 50 million yuan, and then contracting out beverages and food from the preliminary rounds."

In this day and age, a sponsorship fee of 100 million yuan is already quite substantial.

The previous show, "Million Dollar Man," was only at this level; even "American Idol" didn't reach this standard.

Therefore, when Coca-Cola and McDonald's are willing to spend 100 million, it proves that they believe that each episode of "The Voice of China" can attract at least 30 million viewers, which is an extremely exaggerated level of confidence.

This result was so bad that Eisner had to call the police.

Because if he doesn't kill Aiger, he'll be killed.

And kill Egg?
"Ugh……"

Eisner let out a heavy sigh.

He doesn't have any good ideas for the time being.

and so……

When will "The Voice of China" officially begin?

"It's expected to be in June or July, because that's during summer vacation."

Who are the guests that Iger would like to invite?

"There's no news yet, but Isabella will be coming, and, supposedly... Isabella will write songs."

"..."

Although Isabella's appearance was something everyone could predict—

"The Voice" is Isabella's IP, so if she doesn't come, wouldn't the soul of the whole IP be lost?

But it is precisely because Isabella is the soul of "The Voice" that Eisner is even more agitated right now.

Everyone knows that her popularity is ridiculously high.

Furthermore, Isabella has never been to the United States.

So……

The market will explode if she shows up.

"Ugh……"

Thinking of this, Eisner sighed again.

With a furrowed brow, he tried his best to think of any possible good news.

"So in terms of time, we still have two months to adjust? Oh no! It's one and a half months?"

"Yes."

"Alright... we have plenty of time..."

Eisner, finding humor in the situation, said, "It's not too late to think about a strike plan..."

However, while Disney Chairman Michael Eisner, News Corporation Chairman Rupert Murdoch, Vivendi Universal Vice Chairman Edgar Bronfman Jr., and AOL Time Warner Chairman and Vice Chairman Steve Skye and Ted Turner were all watching the sudden appearance of "The Voice"...

With the arrival of May.

A guy who had nothing to do with "The Voice" but wasn't entirely unrelated got a huge slap in the face from Warner.

That person was Robert Shea, Ted Turner's loyal henchman.

"What did you say?"

"The box office forecast for 'The Matrix Reloaded' has been raised by various forecasting companies to six or seven hundred million?? Or even eight hundred million??"

"Are you fucking kidding me???"

New Line Cinema.

Robert Shea jumped up from the executive chair he had just gotten at the beginning of the year.

At this moment, he felt a sharp pain in his buttocks.

He was kicked.

(End of this chapter)