Chapter 649： explore communication

Jeff Zucker is 38 years old this year, and he is in charge of the TV and media department of New Universal. He can definitely be regarded as young and promising.

Of course, Kevin Turner, the head of the Interactive Entertainment Department, is the same age as him and is also a key target for the second echelon of the New Universal Group.

Barry Diller will retire within 5 years!

When he retires, President Robert Iger, unsurprisingly, will take over as CEO.

So, who does the position of president and chief operating officer belong to?

Since the beginning of this year, Dunn has strongly supported the Interactive Entertainment Department, not only focusing on promoting Netflix's business, but also increasing the research and development funds of Blizzard, Dolby Laboratories and imax.

It can be said to be the focus.

Kevin Turner also soared and became a big red man around Dunn.

Much favored.

He is also the head of a large department, how can Jeff Zucker endure it?

His ambition is no lower than anyone else!

The group's focus is not on the TV business, so he came up with the best and amazing plan!

Whether it's Dunn Walker or Barry Diller, they can't even open their mouths to say no!

Indeed, he succeeded.

His analysis and understanding of Discovery Communications made Barry Diller impressed, and it also made Dunn change his original intention and want to pay more attention to the TV industry.

"Jeff, I've read your report on the acquisition of Discovery Communications, and it's wonderful." Dunn invited Jeff Zucker into the parlour and treated him as an equal, without the pretense of leadership.

Jeff Zucker said confidently: "I'm a TV guy, and in the TV field, I have my understanding."

Tang En nodded, "Let's talk about it specifically, what are the improved strategic policies of the exploration and communication company?"

Jeff Zucker sternly said: "The United States has the most developed TV network in the world, and it is bound to face the most fierce market competition. The TV channels in the United States are mainly divided into three categories: the first category is nbc, cbs, fox Comprehensive TV channels such as , abc; the second category is cnn, espn, mtv, Discovery Channel, which focuses on news, sports, entertainment, science and education, and other professional channels with obvious field distinctions; the third category is hbo, starz, home Narrow-cast personalized channels such as tv.”

"Here, we only mention professional channels."

"cnn and espn both have a huge user base, covering the United States, and their ratings are no worse than free TV stations. Advertising revenue is a very important part. Not to mention mtv, it has a huge influence on global music. However, Discovery Channel is different. , it's a documentary channel."

"Taking the United States as an example, generally speaking, the viewing rate of the highest single program of the Discovery Channel will not exceed 3%, the market share of the cable TV market will not exceed 4%, and the average daily viewing rate of the channel will not exceed 0.6%. It can be said that , such poor ratings will inevitably lose the confidence of advertisers, thereby affecting revenue."

Dunn nodded, "Although Discovery Communications has several channels, it is mainly the Discovery Channel. This is a low-priced subscription channel. If the advertising revenue is insufficient, I am afraid it will not be enough to shoot and produce more excellent documentaries. "The lack of good TV shows will drive down ratings further, and it's a vicious circle."

"Yes, a vicious circle!"

Jeff Zucker paused and said: "In order to increase revenue, Discovery Communications has taken two main measures: first, to increase the price of channel subscriptions; second, to produce more gimmicky documentaries to gain attention and increase viewership. ."

Dunn's face was calm.

Raising subscription prices is obviously not a good idea.

For channels like hbo and starz, the price increase will also increase the price, because this is a niche channel, and it is specially aimed at the elite who can afford it.

However, the Discovery Channel is different. It broadcasts documentaries of humanities, science and education, etc., which are not very entertaining.

If this is a price increase...people won't watch it!

As for the production of gimmicky documentaries, Tang En is not optimistic. This kind of quick success is suspected of drinking poison to quench thirst.

"This is what you mentioned in the report, exploring the tactics of communication companies to their own demise?"

"That's right!" Jeff Zucker looked very confident. "The manager of Discovery Media didn't recognize the advantages and disadvantages of documentaries at all!"

Tang En smiled, "Not to mention the shortcomings, boring, sloppy, and lack of interest, all of which are understandable. What are the advantages of documentaries?"

"pattern!"

"pattern?"

"Yes, documentaries have a broader global landscape than bestsellers like Hollywood movies, Harry Potter, Gone Girl!"

Dunn's eyes lit up and he already understood what he was going to say.

After all, he has already discussed this aspect in his report.

Jeff Zucker said: "Documentaries, like cartoons, are not limited by language. However, cartoons are of the times, but documentaries can transcend time. Documentaries also have broader production materials. Discovery Communications has operations around the world. However, because overseas revenue is too small, their main perspective is on the domestic market, which is putting the cart before the horse.”

"Discovery Channel should use the concept of high-quality products to position its products in the global audience market, so that its audience will inevitably expand several times, instead of having 1.5 billion users, but there are almost no actual ratings. Discovery Channel should adopt market-oriented, With a professional operation method, each work must be carefully planned and professionally produced, and the audience must be accurately positioned in order to achieve the purpose of global marketing.”

"To put it bluntly, TV channels such as cnn and mtv rely on advertising revenue to make money. However, Discovery Channel must not follow this development route. They sell advertisements, while Discovery Channel sells products and documentaries that are sold around the world!"

Tang En said indifferently: "The concept of high-quality products has always been admired by starz TV station. We have operational experience in this area. However, how to achieve precise positioning? How do you ensure the economic benefits after high investment and large production? Documentaries...not movies. , TV entertainment programs, there is no similar experience in the world."

"Market Research!"

Jeff Zucker was clearly prepared, and he blurted out, saying: "For every investment, we have to conduct scientific preliminary research - the subscriber demand of the program, product sales, copyright purchases, etc. Then with Discovery Channel as the source, Produce and broadcast products, and at the same time achieve the effect of cultivating the product market.”

"If the expected goal is achieved in the early stage, the same materials will be used to further produce derivative products, such as audio-visual products, books and periodicals, etc. Although we sold the Mifflin Publishing Company, we can carry out peripheral licensing, presumably the publishers will Very interested. The development and promotion of these derivative products are an important part of the documentary production industry chain.”

"In the development and integration of the whole set of industries, we should also pay attention to the development of intangible products. For example, the tourism, adventure, archaeology and other programs under the Discovery Channel can plan the theme activities of on-site experience. Through the channel promotion of the group company, to attract many people The participation of outdoor enthusiasts and ordinary consumers will undoubtedly greatly enhance the identity of the 'Explore' brand."

Well said.

But this set of theories... how similar is it to David Sarslav, who took over in 2007 and led Discovery Communications to its peak?

Huh?

wrong!

David Suslav is a TV producer from NBC, and Jeff Zucker...previously was the head of NBC TV Productions!

Is it?

Dunn's eyes lit up and asked, "Jeff, do you know someone? David Suslav."

"David?" Jeff Zucker was slightly startled, "You know him?"

Tang En's eyes brightened, "Do you know each other?"

Jeff Zucker said: "I know, he used to be my colleague, he was one of my assistants, he is very capable and has a lot of wonderful ideas. After I left nbc, I heard that... he seems to have been promoted to the TV production department. The vice president of , the No. 3 real power figure."

really!

Knew it!

No wonder Jeff Zucker can come up with such a theory.

It turned out to be the same destination!

It's all family.

Tang En nodded and said: "Jeff, I agree to the acquisition of Discovery Communication Company in principle. You can take full responsibility for this case and report to Barry. The transaction time...will be set for next year. In the first quarter, have you considered the price?"

Jeff Zucker was so excited that he lost his stability rubbed his hands, looked impatient, and said, "The price... should not exceed the MGM acquisition!"

In the latest development of MGM's acquisition, Barry Diller has approved a $4.2 billion cash transaction.

This time, Kirk Kerkorian did not reply to refuse.

He did not directly agree, and should still be waiting for other companies to bid.

Mainly Sony.

Discovery Communication Company, listed in 2005-2006, with a market value of between US$5 billion and US$6 billion.

Right now, in 2003, it's between $3 billion and $4 billion.

Tang En nodded and said: "Yes, at this price, as long as next year, we can eat it relatively smoothly. In addition, after the acquisition is completed, what do you think about the management of the exploration and communication company?"

"This……"

Jeff Zucker hesitated, "I haven't considered it yet. If it really doesn't work, I'll hold that position until Discovery Communications is on the right track."

Tang En smiled, "Didn't I mention someone to you just now?"

"David?"

Jeff Zucker's eyes widened.

"That's right!"

"His qualifications, I'm afraid..." Jeff Zucker didn't quite believe it.

Tang En said with a smile: "You can also serve as the chairman of Discovery Communications, and let him serve as the CEO. The position is low, and it is more difficult to poach people. You can consider it for a while."

Jeff Zucker was still not sure, and it was not good to directly reject the big boss's opinion, so he said perfunctorily: "Okay, I'll take a look at this case first, and then think about the management."

He has already made up his mind that he will meet with David Suslav a few times in private in the past few months to discuss it carefully.

If it is not suitable, he will definitely remonstrate with reason!

(Sanqi Chinese)