2650【Profit distribution】
After hearing his question, everyone nodded and looked at Xia Tian together.
Tuozaka Shang naturally doesn't care about the interests of these record companies, but how can Xiatian guarantee that he will protect the rights and interests of musicians?
If he, like the Tuozaka Shang, is also infringing on the rights and interests of musicians, wouldn't it be fifty steps to laugh a hundred steps?
"This is exactly the reason why I asked you to negotiate, just to agree on a business model that you and I agree with." Xia Tian immediately smiled when he heard his question.
He knew that these musicians protested against Yueyin online media not because they rejected the Internet, but because they were worried that their rights would be infringed.
As long as they can guarantee their rights and give them a reasonable share, I believe they will support Yueyin Online Media.
"Now, Yueyin Internet Media exists in the form of an online radio. The network backend can clearly record the number of playback times and the number of online listeners. In addition, we also have the income from each advertisement." Xia Tian operated the computer and demonstrated the data of the Yueyin Internet Media backend while analyzing the people present.
"We are planning to calculate money according to the actual radio sharing model. Each song is calculated based on the number of plays and the number of listeners. The more times it plays, the higher the number of listeners, the more money it makes. Otherwise, the less money it makes." Xia Tian analyzed, "The money that musicians can get is also closely related to our advertising costs and operating costs. Its specific formula is like this..."
Summer came up with a very complex formula for sharing, "based on our current advertising revenue and operating costs, if calculated based on this formula, the money that musicians can get will be this number..."
He calculated it on the spot, allowing musician representatives and union leaders to see the number with their own eyes.
After reading this number, everyone present was a little confused.
Not because of happiness, but because of shock. Because the number is too low.
According to the formula for summer, on average, only a musician can earn less than a cent if he listens to a song.
This also means that only a hundred people can listen to a song and musicians get a dollar, which is lower than the income of real-life radio broadcasts.
You know, radio broadcasts and plays a song, and you will have to pay the musician two or three thousand dollars.
"Mr. Xia, this number is too low!" Everyone said indignantly.
A song is played once, and the musicians can get less than a cent, which is simply a humiliation to them.
"Everyone, you have to think about it carefully. In reality, radio stations, even local stations, can have hundreds of thousands of users. So it pays two or three thousand dollars for a song, so there is no problem.
But what we calculate now is that the cost of listening to a single person. Although it seems to be less than one cent at a time, it does seem to be very small, but if the song is very popular and has a lot of listeners, reaching hundreds of thousands or millions, then you can make thousands or even tens of thousands of dollars by playing it once. This is much more money than the real radio stations." Xia Tian explained to them.
When everyone heard him say this, they looked at each other and didn't know how to refute him.
"Mr. Xia, why are your operating expenses and advertising expenses so high? You are just equivalent to a record retailer. Why are your share so high?" a union leader pointed out that it was inappropriate.
In summer share calculation, Yueyin Online Media accounts for about 40% of the website's revenue, which is a bit high.
Because in reality, record retailers also need to pay rent, water and electricity bills and bear the risk of record depreciation, they usually receive 30% dividends.
But Yueyin Online Media pays much less rent, water and electricity, and it holds digital music. In principle, it will never depreciate. Therefore, Yueyin Online Media's share of 40% is a bit high in their opinion.
"Everyone, let me explain the operation of Yueyin Internet Media, and you will be able to understand where the money is spent." Xia Tian smiled slightly, "First of all, if the website wants to store music, it must be equipped with large storage devices, and its capacity is basically in units of t.
Moreover, in order to ensure that all global users can enjoy smooth music services, I will set up servers in North America, South America, Europe, Asia, Australia and other places in the future, so this cost will be even higher.
To be honest, I plan to spend $500 million just to store these music. These are the investments of Yueyin Online Media in hardware facilities.
Moreover, these hardware have service life, and the annual depreciation rate is 15%. That is to say, more than 70 million US dollars are spent every year to maintain these equipment.
In addition, in order to ensure smooth listening among global users, I also have to purchase bandwidth from network service providers in various countries and regions, which is also a huge expenditure.
Furthermore, in order to provide users with better music services, our company has also equipped a R&D team, committed to providing every user with the most satisfying, comfortable and pleasant personalized services. The R&D investment is also very large. Record stores cannot guarantee that they can provide such services, so how much do we get a 40% dividend?"
Looking at the long series of numbers that Xia Tian exploded, everyone present looked at each other and felt a little shocked.
They didn't know much about the Internet before, and they didn't know how much it would cost to build a music website. Now, they know that it was even more expensive to build a music website than a record company.
It also relies on Xia Tian’s wealth, otherwise it would be impossible for anyone else to do it.
...
"Do you have any other opinions?" Xia Tian looked at everyone after explaining.
"Mr. Xia, although I think what you said makes sense, I am still worried about your website. What would you do if we don't cooperate with you?" asked a musician.
"If someone is not at ease with my website and is unwilling to cooperate with me, then I will not force anything. I will temporarily remove the works related to this musician and see if he can change his mind." Xia Tian smiled slightly, "I believe that Internet music is the general trend, and I believe that he will change his mind one day."
After hearing what he said, everyone here whispered and nodded.
"Mr. Xia, we basically understand your opinions, and we will also convey your opinions to everyone." The union leader stood up and said, "We all hope that both of us can resolve this incident peacefully and ensure the interests of all parties."
Chapter completed!