Heads Up Hollywood

Chapter 465 American Idol

Tang En's plan did not succeed, which was a rare failure since his rebirth.

Of course, the main reason was that he didn't want to have a bad relationship with Jobs.

Otherwise, he will threaten him as a major shareholder of Apple. In order to avoid being forced to be kicked out of Apple again, Jobs will probably choose to compromise.

A genius like Jobs is too rare, and he was abandoned by his parents since he was a child. His life was full of ups and downs and hardships, and he even went to India to become an ascetic monk. Tang En didn't want to hurt him again.

It's just Michael Eisner, even if Pixar's path doesn't work, Twain still has other ways to win him!

American Idol, a variety show produced by Dick Clark Television Productions, airs on CBS.

In the first episode, the number of viewers exceeded 26 million, and in the second episode... the average number of viewers reached 33 million!

There is no doubt that "American Idol" will be an explosive variety show that surpasses "Millionaire" and "Survivor"!

In the previous life, FOX, the fourth largest TV network in the United States, relied on "American Idol" to become a sharp weapon in the spring ratings. Not only did it defeat the three-party snipers of NBC, ABC, and CBS, FOX also adjusted the broadcast time to make it the prime time in different evenings. It was aired during the time period and launched a counterattack, all of which were able to rank first in the ratings list of the day.

This is simply a provocation!

But nothing can be done.

"American Idol" is destined to be the variety show with the widest coverage, the highest influence and the most audience favorite in American history.

In such a time period, the landing of "American Idol" on CBS TV station is a death blow to ABC TV station!

Now, Disney and Viacom have launched a desperate duel.

The film market is only a small head, and the competition between CBS and ABC is the main battlefield!

This competition lasted until 2005 in the previous life.

The two major media companies have been hit hard, and the stock prices of Viacom and Disney have been depressed for many years.

In this year, Redstone split the Viacom Group and CBS Group in order to save the stock price, and the media empire directly collapsed; Disney also made important changes this year, expelling Michael Eisner from the Disney.

Tang En is happy to see the dog bite the dog.

Now that Michael Eisner pissed him off, of course he's going to fight back!

The three executives of Dunn Films, Bill McNick, West Cotton, and Tosca Musk, were all in Dunn's office.

According to the common practice of TV stations, when signing a new program, it is usually a trial broadcast agreement.

Try broadcasting one or two episodes first, and judge whether it is popular with the market through ratings feedback.

If the ratings are high, the contract will be renewed and the broadcast will continue; if the ratings are low, it will be cut off directly.

Especially "American Idol", which has never had many stage music talent shows before.

The trial broadcast contract is beneficial to both the producer and the TV party.

The TV side can test the market reaction at a lower cost and reduce risks; the producer can also propose a contract that is more in line with its own interests in terms of licensing fees based on market feedback.

"American Idol" broadcasts two episodes a week, and CBS has signed a two-episode pilot contract. The basic broadcast fee is 500,000 US dollars, and the advertising fee is 10%.

Now, the pilot contract of "American Idol" has expired, and Tang En Pictures needs to start negotiations with CBS on a formal contract.

The transfer agreement this time must not be as simple as a base fee of 500,000 US dollars and 10% of the advertising fee.

TV network... is an industry that is more profitable than movies!

"This matter, we have to teach Disney a profound lesson! The first season of "American Idol" must be aired on CBS!" Dunn first qualified today's discussion.

Summer Redstone was the enemy, and so was Michael Eisner.

But for now, Michael Eisner's rivalry is stronger, and Redstone is... best left alone.

The TV business is directly under the responsibility of Vice President Tosca Musk. She said: "3 days ago, CBS sent a negotiating team and wanted to start negotiations, but I refused because I didn't have time."

West Cotton smiled and said: "This reason... is very powerful! Hehe, the third episode will be broadcast next Tuesday. If the contract cannot be settled within 3 days, CBS will lose a large number of viewers. The more urgent they are, the higher the price they will charge."

Tang En took a deep look at him, always feeling that West Cotton had ideas for the beautiful woman Tosca Musk, and was trying to please him in every possible way, and said in a deep voice: "Let me say one more thing, company executives, you are forbidden to talk about it." Falling in love. If this happened, a resignation report must be issued."

West Cotton blushed, "Boss, I'm already married."

Tosca Musk aired: "If you keep talking nonsense, I will resign now!"

Tang En responded casually, "There is no best."

Bill McNick hurried out to smooth things over, and said with a smile: "The success of "American Idol" shows that the company's business has made new breakthroughs and new profit growth points! A popular show like this will definitely Cause a sensation!"

"It's natural." Tang En's mouth twitched, full of pride, "I can make blockbuster movies, invest in blockbuster TV series, and likewise, plan blockbuster variety shows!"

"I'm still making my animated movie "The Adventures of Bone Treasure", and I don't have time to listen to your bragging." Tosca Musk is obviously still angry.

Tang En smiled, "How about the CBS contract extension?"

"The sincerity is quite great, the broadcast fee of 3 million US dollars, plus 50% of the commercial advertising share." Tosca Musk rolled his eyes and thought for a while, "On this condition, we should be able to earn 50 million US dollars. "

Bill McNick used to work at 20th Century Fox and managed the FOX TV network. He has rich experience and immediately denied: "No, $50 million is too conservative. "American Idol" will be broadcast until June, you know that means What are you looking for? That’s the summer vacation! February is the off-season, but after May, advertising prices will skyrocket.”

Tang En didn't understand the business of the TV network. Of course, Bill McNick was the backbone. He asked, "Then, is this contract extension reasonable?"

"It's in line with the convention." Bill McNick nodded, fearing that Tang En didn't understand, he added, "Without competition, the 50% commercial advertising share has already reached its peak."

Tang En frowned, and said puzzledly: "But I heard... the commercial contract of "Friends", the producer can take more than 70% of the advertising costs? "American Idol" has more than 40 episodes in one season, more than "Friends" There are long-term effects."

Bill McNick said: ""American Idol" is only the first season after all. "Friends" has been around for too many years. The production cost is very high. The actors' salary alone exceeds 80 million US dollars. There is not enough advertising revenue. Can't make it at all."

Tang En narrowed his eyes, "Fortunately, we are a variety show, if the judges dare to extort prices, they will be replaced directly!"

Tosca Musk asked strangely: "Mr. President, in your opinion... With the contract provided by CBS, how much income can "American Idol" get?"

Bill McNick held up a finger: "At least $100 million!"

Even Twain took a deep breath, "Good guy, making variety shows is no less profitable than making movies!"

Bill McNick shook his head and said: "This is just the beginning. As the popularity of the program increases, the advertising fee will increase. The more advertising fees of CBS, the more our income will naturally increase. On the other hand, "American Idol" is a music variety show, with peripheral products, such as telecom revenue from telephone voting, as well as record releases, concerts, program sponsors, overseas edition authorization... peripheral revenue will not be less than 200 million US dollars! Of course , the premise is 30 million viewers, keep the popularity and don’t drop.”

Tang En's face flushed with excitement.

West Cotton's eyes widened in shock.

Tosca Musk murmured, "The CBS contract can earn so much... If it is authorized to other TV stations, wouldn't it earn more?"

This sentence did not arouse everyone's surprise.

"American Idol" was the hottest variety show in the United States in the past week. It not only had the highest ratings, but also had a high degree of topicality in the entertainment section. Especially now that it is the audition stage, all kinds of wonderful contestants emerge in endlessly, frequent farce, a lot of laughs, very attractive.

"What about the ABC contract?"

Dunn asked softly. Michael Eisner had a guilty conscience. In order to compete with CBS, he would definitely offer a huge contract.

Tosca Musk said: "Basic salary of $5 million, 58% commercial advertising share."

Tang En curled his lips in disdain, very contemptuously, "This Michael Eisner is really stingy!"

"Indeed, the contracts offered by NBC and FOX are better than ABC." Tosca Musk paused, two dimples appeared at the corners of his mouth, "NBC's contract, 3 million US dollars and 60% of advertising; FOX has even more, the basic broadcast fee alone is as high as 10 million US dollars, and the advertising share has reached an astonishing 65%!"

In comparison, CBS offered the worst contract.

However, CBS is the largest television network in the United States, assisted by Viacom, and has more promotion channels. More importantly, "American Idol" has already broadcast two episodes on CBS. Not only do they have the right of first refusal, but the audience has already locked in CBS.

Temporary channel switching is not good for both parties.

Bill McNick said: "NBC's sincerity is still very high. In recent years, NBC's performance has been poor. Especially after Jack Welch retired, General Electric has always had the idea of ​​​​selling NBC. As for FOX... the audience It’s still a little smaller. Under the same circumstances, the first choice of advertisers and users is still the three major TV networks. Therefore, in order to compete for programs, FOX often spends money, or does not sign a trial broadcast agreement, and buys out all at once. .”

Tang En nodded, "In principle, we are willing to renew the contract with CBS. However, Tosca, to keep the bottom line, the contract must be signed once a year. The copyright of the second season of "American Idol" must not be released this time." It has been reflected in the signing, at most giving CBS a right of first refusal under the same conditions.”

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