Chapter 611

The data mainly come from CAA's analysis department and Robert's consulting firm. The latter collects more gossip. The former attaches great importance to Netflix, a new Hollywood channel. In recent two years, it has also established a special database with very detailed data.

All this is good for Murphy to make his own judgment.

In any case, Murphy is bound to be cautious in this kind of project involving tens of millions of dollars. Although he is rich now, he is not stupid enough to throw tens of millions of dollars at random.

Hiding in the study at home, Murphy spent a whole day reading all kinds of materials about Nafi, and gradually understood why reed Hastings did it.

Combined with various data and analysis, it is not difficult for him to see that Naifei's demand for production content can only be described as very eager.

In Hollywood, brands with broad distribution channels occupy more upstream positions in the industry chain than content producers. However, channel supporters like Netflix want to join the industry of downstream content producers, which is both an active choice and a compelling reason.

If a company with the purpose of pursuing commercial profits suddenly wants to win cooperation by giving up large profits, everyone will have a natural wariness, especially the business tycoon like reed Hastings, who has been fighting all the way, can't be underestimated. If Murphy can't figure out the situation, he won't respond at will.

Nowadays, the operators of the entertainment industry, represented by the film industry, are exploring ways to become bigger and stronger. Whether it is to build a large entertainment ecosystem or to lay out the pan entertainment industry chain, the expansion of business scope and the pace of structural transformation and upgrading are becoming faster and stronger.

Under the current market competition environment of entertainment without borders and industry without borders, Nafi's strategic plan is to integrate and build its own whole industry chain, enrich profit points and profit models.

For commercial companies, the best industry is monopoly industry. Monopoly means pricing power and producer surplus. Although it is not necessarily good for social welfare, it is definitely good for profits.

But did Netflix ever have pricing power? Murphy read the data and came to a very clear conclusion: Nafi didn't!

For a long time, Naifei did not dare to raise the price, because to a large extent, she killed blockbuster by relying on the price advantage. Netflix even gave some users a lifetime promise to keep their heart unchanged at $7.99 per month. This grandfather clause, which is jokingly called by many people, refers to keeping the validity of old contracts for some users.

On the other hand, because it can't produce content like the six major Hollywood companies, Netflix has no advantage over the downstream content producers, and they don't have pricing power. On the contrary, the content copyright fees they need to pay rise year by year. If they don't go on the road of production, Netflix will fall into the fatal situation that users can't raise their prices, but need to spend increasing costs The cycle cannot be pulled out of itself.

The only way to break this dead cycle is to increase the price. To increase the price, you can't let users lose. You can only cultivate user viscosity in the content, so self-made content becomes almost the easiest export.

So it's not hard for Murphy to figure out that Netflix is on the road of no return to self-made content.

From the above, he also understood why Nafi and reed Hastings wanted to cooperate with him instead of other directors or production companies.

Murphy Stanton is a famous brand in Hollywood. Since entering the 21st century, it has been synonymous with producing high-quality works and high profits. Even today, every film invested and produced by Stanton studio can easily make profits. The films Murphy participates in can not only make profits, but also have a great reputation

On the other hand, Netflix's mode of streaming media + original content is not only what they want to do. According to the information obtained by Murphy, many companies are instigating plans in this area. In fact, the threshold of this industry is not high. The powerful companies basically say that they can do it.

From the information provided by CAA, Murphy can see that Netflix's competitors in the online film and television service business line up and can walk out of a huge team: Amazon launched Prime.Video.streaming , Walt Disney, 21st Century Fox and Comcast jointly launched Hulu and Hulu.Plus , HBO launched HBO.Now and HBO.Go , Disney launched Sling.TV Google has YouTube be.Red , and plans to go online next year YouTube.Unplugged Do it TV.streaming Facebook is also looking for media companies, stars and Internet Celebrities. Wal Mart, which has nothing to do with the media, has bought Vudu. Even apple, which is playing sand nearby, is eyeing it. It's not a day or two since it's been rumored that it's going to do streaming in person, and it has colluded directly with HBO before HBO.Now .

It's true that Netflix is still the industry leader in providing online film and television services. However, what's choking is that it has a bunch of leaders in other industries whose strength is extremely strong.

Although Nafi has slang in North America, it's called Netflix.and.chill It means "look at Netflix's appointment with Pao", but Naifei doesn't dare to take the wrong step. With such a group of big men on his ass, Naifei may be doomed if he takes the wrong step."That's why they chose you."

Bill rosis, who came to wave manor, said to Murphy, "because you are the guarantee of success. Even if Netflix has some loss in profit, it can further increase user stickiness and attract more new users through content word-of-mouth."

For film and television production, Nafi is just a recruit.

Murphy combined with the previous information, very sure to say, "although filming is not the only way out for Nafi, it is the easiest way."

In the face of such fierce business competition, no wonder reed Hastings offered such favorable conditions.

So in the final analysis, if you want to compete for users, you have to have excellent content. Those technologies and data are virtual shelves, and others can imitate if they want to.

If Nafi wants to continue to roll down the snowball of rapid development, it must have the best original content, the ability to increase the price, or even double the price. It can't count on the potential of the global market.

In today's international political environment, it is more difficult for the culture, film and television industry to fully penetrate the global market. For example, in the supermarket on the other side of the Pacific Ocean that can make any company covet, Netflix can only surrender. Therefore, Netflix's best way is to rely on high-quality content to attract customers who can enter the market.

After carefully reading Netflix's materials, it is not difficult for Murphy to find that subscription fee is the only revenue of Netflix's streaming media service, so keeping the number of users growing is the most direct goal.

How can we achieve this goal? The launch of special programs makes people feel that they have to watch them. On the other hand, it helps them to enjoy Netflix's services more easily.

But why do people have to watch it on Netflix?

Murphy and bill rosis exchanged views, and the common answer was "solo and original".

Originality is also for independent broadcasting. At least in the first few years, it was only broadcast on its own platform. These programs make people feel that they have to watch them. Of course, on the other hand, successful original dramas can also advertise Netflix and enhance the company's popularity and recognition. Finally, the number of new users will naturally increase.

"It's not just because of the advantages that Nafi has to make a big effort to develop the drama." Bill - rossis very sure to Murphy said, "more because it must have the right to broadcast alone!"

Bill rosis further analyzed for Murphy, "now the competition of streaming media websites is very fierce, and the cost of broadcasting rights is also rising. The content cost of "mad man" is close to 100 million US dollars, and the average cost of a single episode is as high as several million US dollars. The exclusive cost of other hot dramas such as "doctor house" and "gossip girl" is also very high. "

Murphy nodded his head gently. Nafi's cooperation is really sincere.

"And this kind of exclusive broadcasting right is only the second round broadcasting right." Bill rosis continued, "for a show that's on TV, Nafi usually doesn't go online until it's over."

"So," Murphy has figured out neffei's intentions, "is it more cost-effective to make his own series?"

Bill rosis nodded solemnly, "exactly! This is not only my analysis, but also the conclusion of CAA. "

When it comes to tens of millions of dollars of investment from super clients, not to mention Murphy, the brokerage company behind him is quite prudent. Everything has to be planned before it moves.

Business investment doesn't mean that if the other party says I won't pit you, it won't pit you. Murphy has done so much, which is just the most basic understanding work before investment and cooperation.

If you don't even know about a company, you rush to cooperate with others. It's not daring, it's head watering.

To make sure that Netflix is sincere in cooperation, rather than digging a trap, Murphy thinks the two sides can start formal negotiations.

"Well, bill." He said directly, "give reed Hastings a reply next week, and when Gail goes to Boston to sign an agreement with the Boston Globe, formal negotiations will begin."

Bill rosis cautioned, "what about the show?"

"I'll sort out a story outline as soon as possible." Murphy thought for a moment and said, "as long as Stanton studio and Nafi negotiate an agreement, they can hire a screenwriter to write the script immediately."

He added, "I'll be the producer and Paul will be the director. I've talked to Paul before."

"I know how to talk." Bill rosis, who has rich experience in this field, stood up and said, "let's call it a day. I'll go back to the Death Star Building and make some preparations."

Murphy waved his hand. When Bill rosis came to the door, he remembered another thing and said, "bill, don't forget to come to my engagement party with Gail on Saturday night."

Bill rosis turned back and said, "I'll be here on time."

There are few secret news in Hollywood, and Murphy doesn't intend to keep it secret at all. The engagement between him and Gail gado has been widely spread in the circle. (to be continued). )