Chapter 577: 576 [Music Talent]
Before the acquisition of EMI by the British Gramophone Company, EMI mainly had two institutions in China, the "General Publishing Office" and the "China Record Company".
In the first half of last year alone, the gross profit of "China Record Company" reached 100,000 yuan, but the "general distribution office" lost a full 80,000 yuan. Aside from various expenses and costs, EMI has actually been losing money for four consecutive years.
The main reason is the turmoil in the current situation. From the Central Plains War to the January 28th Incident, the distribution business of EMI Records was very difficult.
You know, EMI's "headquarters distribution office" undertakes the distribution business of nearly half of the record companies in China. Due to the war, the record was recorded in Shanghai, let alone sold, it is almost impossible to transport it to other markets, can it not be a serious loss?
Just at the beginning of this year, British Gramophone Records acquired the parent company of EMI Records in China, and then carried out a series of company structure integration. The original "General Publishing Office" and "China Record Company" were merged into one, greatly improving administrative efficiency, and Li Kaisheng, the Chinese manager, was also hired at that time.
Under normal circumstances, managers of foreign-funded enterprises in the Republic of China are just decorations. Because the government stipulated that every foreign firm (foreign-funded company) must hire a Chinese manager, the foreign devils had no choice but to find some compradors as managers.
The main responsibility of these Chinese managers is actually responsible for communication channels, basically regardless of the company's operations.
But in history, Li Kaisheng was the key to EMI's turnaround.
After this gentleman took office as Manager Hua of EMI Records, he immediately selected talents and recruited music talents. At the same time, taking advantage of the anti-Japanese and national salvation psychology of the Chinese people, they actively released a large number of patriotic songs. For example, the national anthem "March of the Volunteers" of New China was originally launched by EMI.
Now Li Kaisheng is in a critical period, he has just taken office, and he must produce one or two new hit albums as soon as possible.
The 30% record royalty share is too outrageous, even including the songwriter and singing share, it is still an unacceptable price. Li Kaisheng frowned and said, "Mr. Zhou, with all due respect, your asking price is too high. I can give you 15% of the royalties at most."
Zhou Hexuan was not in a hurry, he just smiled calmly and said, "Do you know how much the publishing company pays for the royalties I am publishing novels now?"
"How much?" Li Kaisheng really didn't know.
Zhou Hexuan handed Li Kaisheng a cigarette, lit one himself and said, "50%."
"That's really... formidable." Li Kaisheng could no longer find an adjective.
Writers in the period of the Republic of China were very popular, and the royalties for their works were appallingly high. Some well-known writers get at least 15% of the royalties, and top literary figures like Lu Xun can get 35% to 40% of the royalties.
Hu Shi once set a record of 45% royalties, but that kind of situation is not common. His royalties have now dropped to 40%, which is about the same as Lu Xun's price.
And Zhou Hexuan belongs to the special column, and when "Titanic" was released, he had already received 45% of the royalties. The current "Black Soil" is about to release the first volume of the booklet, and more than 20 publishing houses are fighting for the first time, among which 9 publishing houses offer a sky-high 50% royalty.
Publishing companies also have costs, administrative expenses, machine wear and tear, editing, printing, paper, ink, transportation, distribution, tax payment, all links need money. What is the concept of Zhou Hexuan's 50% royalty? He took most of the profits by himself, while the publishing house could only make some hard money, and even if one failed, the publishing house might face losses.
But Zhou Hexuan's influence in the cultural and intellectual circles is too great, and many publishing companies would rather lose money than help him publish novels with tears in their eyes. First, it can increase the company's industry influence, and second, it can expand channels and markets. Publishers have their own plans.
"One price, 18% royalties." Li Kaisheng gave in again, Zhou Hexuan's novel royalties really scared him.
Zhou Hexuan smiled and said: "Since Manager Li is a straightforward person, then I am not ambiguous. Let's take a step back from each other, just 25%. If we can reach an agreement, we can talk, and if we can't agree, let it be. There is no benevolence and justice in the business, and I hope there will be more in the future." Opportunity to coorparate."
Li Kaisheng smiled wryly and said, "The 25% royalties are not up to me, manager Hua, to be approved by the general manager Li Qi (British, also translated as Rich). But, Mr. Zhou is not an ordinary person, so I exceed my authority." Agreed, I will convince the general manager."
This time it was Zhou Hexuan's turn to be surprised, he thought Li Kaisheng would have to think about it for a few days. Unexpectedly, this fake foreign devil was very courageous, and he agreed on the spot, and he still exceeded his authority.
"In this case, I wish us a happy cooperation." Zhou Hexuan said.
"Happy cooperation!" Li Kaisheng stood up and shook hands, "Mr. Zhou, why don't we go to the company now, and I'll introduce you to our director of the music department, and sign the contract by the way."
Zhou Hexuan said with a smile: "Manager Li does things vigorously and resolutely, I really admire him."
Li Kaisheng showed a smile on his face, but in fact he secretly groaned in his heart, he was having a headache, how could he face the British guy. After the 25% record royalty contract is signed, that stingy British general manager Li Qi will definitely be furious.
If Zhou Hexuan's record can't sell well, Li Kaisheng can't continue to play in EMI, and he will be fired 100%.
At 10:30 in the morning, Li Kaisheng took Zhou Hexuan to No. 1099 Xujiahui Road, which is located in Xujiahui Park in later generations.
This is a three-story red small western-style building, which is now the headquarters of EMI Records. After the founding of New China, it will be the address of China Records Corporation Shanghai Record Factory. For the Chinese, the most profound influence left by this place is the birth of "March of the Volunteers", which is also the national anthem of the People's Republic of China.
Li Kaisheng proudly introduced: "Mr. Zhou, although our company building has only three floors, the recording machines inside are worth millions of dollars. We have employees all over the country, and the total number of workers exceeds 1,500. Neither Victory Records nor Greater China Records can keep up."
"It's really powerful." Zhou Hexuan nodded in agreement.
For the recording industry, until the 1980s, it took a lot of money to get going.
With the development of technology, a few musicians in the future will be able to call themselves a record company and record their own records, but in the 1930s it was completely different.
Take EMI Records at this time as an example. It is only the recording studio and the record factory's machinery and equipment, which add up to a value of 4 million silver dollars. How can a small businessman play well?
Therefore, although there are dozens or even hundreds of record companies in China, they can only be called leather bag companies. Only the three record giants EMI, Victory and Greater China have the ability to record, master and distribute records.
Li Kaisheng brought Zhou Hexuan to an office, and introduced: "Mr. Zhou, this is an excellent talent I hired with a high salary in April. Mr. Nie Er, the director of the music department of EMI Records. You and Nie Er are the director of the music department of EMI Records. Let's discuss it in detail, sir."