Chapter 669： Older gingers are more spicy

Before Facebook has been formally established, Netflix is ​​the most important asset under the New Universal Group at present, and it is an investment in the future Internet era.

Now, Netflix has been strongly attacked by the industry leader, Blockbuster, which immediately attracted the shock of the entire New Global executives.

That afternoon, Netflix's "board of directors" was held.

Including Don Walker, CEO of New Universal Group, CEO Barry Diller, President Robert Iger, CEO of Interactive Entertainment, Kevin Turner, CEO of Film and Television Entertainment, Bill McNick, and the head of Netflix. De Hastings, Chairman Assistant Tosca Musk and others.

But surprisingly, among such a group of group executives, a relatively unfamiliar face appeared.

In fact, everyone knows that this person is called George Paxton, who is Dunn's personal assistant, and will deal with some unsightly things in secret.

It's just that this is the highest-level meeting. He is an "outsider", what is he doing here?

Such a big thing, does he understand?

Fortunately, everyone respected Dunn very much, and it didn't happen.

At the beginning of the meeting, Barry Diller repeated his noon telephone communication with Redstone.

The result of the communication...was bad!

Redstone didn't seem to have the slightest interest in this matter, and he firmly grasped one point from beginning to end - Blockbuster has been separated from Viacom and has independent management rights.

John Antioco is the CEO of Blockbuster, and he has the greatest decision-making power!

Viacom has no right to intervene.

As soon as the voice fell, he was met with cynicism from Tosca Musk, saying: "Basida has the right to operate independently, but don't forget, Viacom still has 3 board seats on the board of directors of Bristol! Leishi! Dong still has a great influence on Blockbuster's decision-making. In my opinion, Redstone... wished Blockbuster would go to war with us."

"No matter what the process is, the battle between Blockbuster and Netflix is ​​probably unavoidable." Barry Diller said solemnly, shaking his head.

Robert Egger frowned and glanced at him, "Barry, Redstone's side...Is there really no discussion?"

Barry Diller snorted, "You can contact him in person!"

"I did not mean that!"

Robert Iger waved his hand, his face was relatively indifferent, and he didn't look apologetic at all.

These two people, one is the CEO and the other is the president.

It is inevitable that there will be many differences due to the company's power struggle.

"All right!"

At this time, Tang En made a sound at the right time, so that the undercurrent in the venue ended.

However, he did not have the idea of ​​easing the conflict between the two sides.

As the big boss of a company, balance is the most important thing. Having two factions at odds with each other is far better than being one word.

Tang En said: "Barry, in your opinion, is there any need for Redstone to operate?"

Barry Diller said categorically: "No! I've known the old man for thirty years, and he wouldn't back down on this kind of thing. Otherwise, he would have bowed his head to New Universal and wouldn't have been in Via There's a lot going on inside Cam."

In September, Viacom spun off Blockbuster.

A month and a half later, a new voice came from within Viacom, and the conflict between Redstone and Kamathin had heated up. Rumor has it that within this year, Redstone will fire Viacom president Mayer Kamathin.

It's definitely a big move.

Tang En waved his fist and said solemnly: "In this case, this matter is qualitative, Viacom and Redstone, we will not have any illusions. If Blockbuster dares to take the lead in provocation, we can't sit still and wait to die. Humph, a few years ago, when I was in charge of a small studio of Dunn Pictures, I competed with big companies like Disney and 20th Century Fox. Now, with the strong background of New Universal Group, we will still Afraid of a little Blockbuster? If they dare to attack, we will fight!"

Robert Iger followed his words and asked: "Reed, how is Netflix's situation? If we really start a price war, what is our biggest profit margin?"

Reed Hastings didn't even read the material, he opened his mouth and said: "Netflix now has 5.26 million users, and the number of member users has been 265% since the beginning of this year! Based on the current situation, it is estimated that Netflix's operating income this year will be in 830 million-850 million US dollars, of which the profit is likely to be around 50 million US dollars.”

When this data came out, everyone couldn't help frowning.

Profit margins...too low!

But think about it again, Internet companies, it's good to be profitable, but also depends on the profit rate?

Just listen to Reed Hastings continue: "If Netflix remains on the order of 5 million users, the profit margin to the monthly subscription fee per customer is only $2. In other words, if Netflix wants to For self-financing operations, the monthly subscription price cannot be less than $18.”

This data is exactly the same as what Dunn had before.

Robert Iger frowned and said, "The monthly subscription fee for Blockbuster is $16, but we can only charge $18? At this time, why do you care about taking your own profits and losses?"

What is the purpose of the price war?

Is to compete for the market!

Use the means of price reduction and dumping to **** the market and defeat and drag down the competitors.

After a monopoly is formed on the market, the price will be raised again.

Through this kind of betting on the future, you can get huge profits Since Netflix is ​​going to fight with Best, you don't need to care about the immediate interests, and you should focus on the future.

Kevin Turner shook his head and said: "The monthly subscription price of $16 by Blockbuster must be operating at a loss and it is a vicious competition. The difference is that Blockbuster owns tens of thousands of storefronts, and they have physical stores and online stores. There are two operating modes. The losses of online stores can be passed on to physical stores, so there is room for significant price reductions. This is completely different from Netflix. We only have one model of online stores. Price reduction competition is impossible.”

"No! There must be!" Barry Diller shook his head firmly, "There are so many companies under the New Universal Group, it is not easy to transfer some book losses? From tomorrow, let the film and television entertainment department cast on the Netflix website. Huge commercial advertisements make the film and television entertainment department bear the losses of Netflix!"

Older gingers are more spicy.

The key is immediately apparent.

Accounting is a common practice in Hollywood. Kevin Turner and Reed Hastings from the Silicon Valley department may not understand it. The bigwigs from Hollywood are all too familiar with it.

As long as the Ministry of Film and Television and Entertainment invests a lot of movie advertisements on Netflix's website and greatly increases Netflix's commercial advertising revenue, it becomes equivalent to "subsidizing" Netflix.

With this subsidy, Netflix naturally has the possibility of further price reductions.

Can really fight a price war with Blockbuster!

It's a good proposal, endorsed by Robert Iger, Bill McNick, and others.

However, Kate Turner, Reed Hastings, Tosca Musk and others from the Silicon Valley department all looked dull and were not interested in this proposal.

is it necessary?

Please remember this book's first domain name: . Nine Heavens God Emperor:

(Sanqi Chinese)