Chapter 232 (2/2)

Nancy has some helplessness: ”Simon seems to like Marvel very much, and he doesn't give me any room to discuss. I also talked to him about Lord of the rings, which was also rejected, and Lola Run, which he has sold. Just as it happens, the company recently approved the ”Ninja Turtle” live action movie. After my research, I found that its role setting is very suitable for adaptation into a horizontal version of the fighting game in the breakthrough mode. After contacting with mirage studio, they haven't sold the game development right of Ninja Turtle, so I bought it. ”

Egger is not familiar with the field of video games. Since Nancy has considered all the problems she can think of in a short time, she has not rashly put forward any opinions.

We chatted a few more, it was already noon, so we rushed to the nearby restaurant for dinner.

As soon as she finished her shareholding in blockbuster recently, Nancy quickly came up with another plan, which once again put a lot of pressure on Amy.

In fact, Amy has thought about getting involved in the development of video games, but she has no time to promote it.

Now, Nancy has come up with this plan, and the established game studio will also be attached to the consumer goods department, rather than the departments directly under such companies as Denise special effects and Pixar Animation. If it's successful, Nancy will certainly take the most credit. Even if it fails, the loss of $2 million doesn't matter to Denise entertainment today.

Therefore, at lunch time, although she tried not to show herself, Amy was inevitably closer to Edgar.

Edgar, with a gentle personality, is far less energetic and aggressive than Nancy.

Obviously, Amy couldn't know what Simon expected of egger.

Nancy's consumer goods division is far from comparable in revenue to television. Moreover, the consumer goods department is located in Los Angeles, which is destined to be under the control of the parent company all the time. However, egger, who is far away from the east coast and is in charge of the television department alone, is a ”feudal official”.I chatted and exchanged greetings for a while. Although I was having dinner, I soon talked about my work.

Danielis Entertainment's TV series are mainly produced on the west coast. With the advent of TV spring, egger is going to fly to Los Angeles every week. This time, in addition to the preparation of several TV dramas, there are more important things.

”Tom had a detailed talk about who will be a millionaire when he invited me to lunch yesterday. He said that if we were not willing to make concessions, ABC would have to cut the number of episodes in the second season and adjust the screening time,” said egger, noting Nancy's puzzled eyes and explaining, ”ABC chairman, Tom Murphy.”

Nancy nodded and did not answer.

Amy asked, ”what are the conditions?”

”The offer for each issue is halved, and ABC has to participate in the revenue sharing of in show advertising placement,” egger said

Amy frowned and said, ”Simon won't agree with that.”

Nancy looked around and couldn't help asking Edgar, ”Bob, what's our profit on who's going to be a millionaire?”

As the head of the consumer goods department, Nancy is very clear about the peripheral product revenue data of who will be a millionaire. However, the company's annual financial audit is not over, and she does not know the total revenue of the phenomenal reality show.

In the face of Nancy's inquiry, Edgar did not hide it, saying: ”according to last year's financial data, about 180 million dollars. If you calculate the whole first quarter, it's about 250 million dollars. ”

Nancy's eyes widened and her lips widened.

She thought she might have heard it wrong, or that egger had explained it wrong, so she asked, ”total revenue?”

Egger shook his head: ”net profit.”

Nancy always felt that she would not be surprised by anything, but she couldn't help taking a deep breath this time.

Slowly exhaled a big breath, she still did not believe, staring at egger, said: ”250 million dollars, how is this possible?”

It's satisfying for a man's vanity to surprise a beautiful woman. With a smile on her face, egger patiently explained: ”compared with the TV series with only 13 or 26 episodes per season,” who will be a millionaire ”has 69 episodes in one season, and the transaction price of each episode is $2 million. According to the settlement rules we negotiated with ABC, ABC has already paid US $83 million for the first quarter after the winter break, including $30 million for the additional 15 issues before the quarter, only this part of the revenue has reached $110 million. In addition, the total revenue from in-house advertising placement is $56 million, and the revenue from syndicate distribution and overseas licensing is about $27 million. ”

Nancy listened attentively and quickly gave out the final statistics: ”the total revenue is $196 million and the net profit is $180 million, which is really reasonable. God, no wonder our little boss is so extravagant, but Denise entertainment has always been in good financial condition. It's so profitable. ”

Moreover, with further thinking, Nancy immediately found the problem.

As far as she knows, NBC is in the best operating condition among the four major TV networks.

The fiscal year cycle of the four major TV networks is basically calculated from the last quarter of each year.

According to the public financial data of Ge, affected by last year's writers strike, NBC TV network's total revenue in the fiscal year 1987-1988 was US $3.3 billion, but its net profit scale was only US $310 million, down sharply from US $380 million in the previous year, with a profit margin of less than 10%.

After careful consideration, ”who's going to be a millionaire” can bring a net profit of $250 million to danielis entertainment, but there's no problem.

The network operates seven days a week, and the total number of prime time programs is about 20 to 30.

However, just like the films produced by Hollywood film company every year, a small part of these TV programs will definitely make profits or losses, and most of them will basically break even. Combined with the huge basic operating expenses of a national TV network, it is very rare for NBC to make $310 million a year.

Look at who's going to be a millionaire. It's an hour long show with the most golden three-day eight o'clock show of seven days a week. Because of the phenomenal ratings data, its advertising revenue is quite the same as the most profitable box office blockbuster of the studio every year.

Compared with ABC's comprehensive investment in running a national TV network, as the producer, danilisi entertainment only needs to bear the total production cost of only about 20 million US dollars and a small amount of marketing expenses in the early stage.

All in all, the revenue scale of ”who will be a millionaire” is only about 10% of the total revenue of the TV network, but like a big low-cost and high box office movie, the profit margin of this program is more than 90%.

As a result, danilisi entertainment naturally makes money and makes soft money by occupying the best resources and taking the richest profits without sharing the huge operating expenses and loss project costs of ABC TV network.Thinking of this, Nancy immediately asked egger, ”Bob, how much can ABC make on this project?”

Edgar thought about it and said, ”if you only count this show, it's about $80 million.”

When Nancy hears the words, she looks around Amy and egger and makes a strange face.

Amy and egger were speechless.

Denise entertainment made 250 million yuan. As the owner of the platform, ABC, which should be in a strong position, has only 80 million US dollars of profit margin, less than one third of Denise entertainment. Everyone has to change their face.

Tom Murphy was able to patiently negotiate with Denise entertainment mainly because ABC can't do without who will be a millionaire.

Although the average rating of a single show is firmly suppressed by survivor, who will be a millionaire has three issues a week compared with survivor, which has 13 issues a season.

With the super high rating data of who will be a millionaire, ABC, which was only better than the emerging fox in the four major TV networks, has been showing a slightly anti super attitude towards the first place NBC TV series since last autumn.

In such a good situation, ABC absolutely dare not rashly abandon ”who will become a millionaire”.

But at the same time, if daenerys entertainment is not willing to compromise and the distribution of interests is seriously unbalanced, as long as ABC management has a little foresight, the TV network will certainly get rid of the dependence on who will be a millionaire at all costs.

After a moment's silence, Amy finally said, ”it's up to Simon to decide for himself. Bob, talk to ABC again, and then write a report to Melbourne.”

Egger nodded. It's a big deal, and it's the only thing right now.