Chapter 670： price war

Silicon Valley-born executives know Netflix best.

In the past few years, the group has invested a lot in Netflix. Not only has it established 30 shunt storage warehouses across the country, but it has even spent huge sums of money to buy the imdb website, the world's largest film and television database.

Netflix's foundation is so good, a simple price war, it wants to make Bestard turn over and surpass Netflix, is it possible?

This is too small to underestimate the Internet technology!

The gap between traditional enterprises and Internet enterprises cannot be bridged by the price difference of $2!

"What? Do you have different opinions?" Dunn glanced at them.

Kevin Turner outlines: "There is a big difference between Internet companies and traditional companies. Although the number of Internet users is limited, the group convergence is very obvious. When a user discovers a new Internet service, Maybe the next day, netizens from all over the world will flock to watch the fun."

Bill McNick said in surprise: "Didn't Blockbuster also launch an online subscription service?"

Kevin Turner said with a smile: "User experience is an important indicator of whether the Internet is advanced or not, which makes the future eb2.0 era logical. The same is true for Facebook. The boss said that before 2010, the Facebook website is not allowed to pursue Profit, everything is based on user experience, cultivate users' habits, this is the thinking mode of Internet eb2.0."

Barry Diller pondered slightly, "There is a way for Netflix?"

Kevin Turner said: "At the end of the day, Netflix is ​​a technology company!"

Reed Hastings sat upright and explained this, saying: "Netflix has been online for 6 years, and our user experience is far from comparable to that of PepsiCo. And the user experience comes from Netflix's analysis of the industry's leading algorithms. and data integration.”

After a pause, he continued: "That's right, renting a movie between Best and Netflix doesn't seem to make any difference, even... If Best has launched a monthly subscription system, it will be cheaper to rent a movie at Best. Some. However, Blockbuster provides a service of known results, Netflix ... but can provide judgment on the unknown world!"

This sentence immediately aroused everyone's curiosity.

"Oh? Specifically? Known and unknown, what does it represent?" Robert Iger is mainly responsible for the business of film, TV and theme parks, and he does not have a deep understanding of the network business, so he is particularly interested.

Reed Hastings said: "When a user wants to rent a movie on Blockbuster, he must first have a concept in his mind. What movie does he want to watch? If he doesn't have a clear idea in his mind, then he chooses among thousands of movies that fit the bill. The movie of your heart is very difficult. This problem, Blockbuster can't solve it, but Netflix can!"

"Netflix spent 4 years carefully creating a set of video recommendation algorithms, which will calculate the user's personal taste and aesthetic taste based on the user's film viewing records, and then select the most suitable and most suitable from the huge film library. Movies that meet his personal taste are recommended to users. This greatly solves the troubles of users who are stuck in infinite choices because of movie panic.”

"In addition, we also have the largest film and television database imdb website as a backing, we can provide users with the most detailed video information, so that users can enjoy the recommendation algorithm service, and can also confirm further according to the imdb website, which will greatly Reduce the time wasted watching videos that don't fit your taste."

"Blockbuster has movies from all over the world, and the movie library is huge, but they can't push every movie to the users, which is a huge waste of resources. However, Netflix is ​​different. Netflix is Technology companies, we have precise algorithm analysis, we have huge user data, we can conduct in-depth research and make judgments on user tastes.”

Robert Iger, Bill McNick and others looked at each other.

Is this the power of the Internet?

Blockbuster wants to launch a monthly subscription policy to challenge Netflix.

As long as the price is low enough.

However, the technology and algorithms behind Netflix, the huge video recommendation system, and the imdb video database are the eukaryotes that Netflix relies on for survival!

This is the unsurpassable mountain that Baishida can't overcome at all!

For the Internet business, the executives of New Universal Group, except for Kevin Turner, have almost no voice.

One exception - Dunn Walker!

"Very good!" Dunn grinned, his eyes admired, and after listening to Reed Hastings' speech, he took the lead in applauding.

Soon, warm applause came to mind in the conference room.

After the applause, Dunn made a supplementary speech and praised: "Yes, I have already said that Netflix's business is video rental, but its foothold is Silicon Valley! In any case, this is a technology company! Reed , you didn't disappoint me."

"thanks."

"Remember, never stop pursuing technology! Now, Blockbuster is about to launch a monthly membership subscription system. It is conceivable that in the next two or three years, Netflix will face great competition pressure. But the investment in research and development funds will definitely It cannot be reduced! User-based technology companies, in the final analysis, are the integration of user information and the analysis of all data. The future Internet must belong to the era of big data!”

"Big Data?"

Hearing this trendy word, both Kevin Turner and Reed Hastings brightened up with a thoughtful look.

Tang En waved his hand and said, "The big data thing, we will discuss it in depth at the Internet conference in the future, and solve the problem of Netflix first. Barry, considering the current situation, what do you think?"

Barry Diller pondered for a while and asked: "Kevin, Reed... Netflix's situation, you know best. I just want to ask, if Netflix's monthly price is higher than that of Blockbuster, will we lose money? Market Competitiveness?"

"Won't!"

Kevin Turner blurted out without thinking.

Reed Hastings said: "Netflix's high-quality service is enough to attract users to pay higher prices."

Barry Diller, who has also managed Internet companies before, knows the stickiness and attractiveness of technology to users, and nodded, "If that's the case, we can do both."

"Tell me."

"The price reduction is certain, the monthly price of 20 US dollars ... and the price of 16 US dollars of Best, the gap is not small. We can initially reduce the price to 18 US dollars to make up for some of the disadvantages. Prepare for a price war that may break out next. In the event of an accident, the film and television entertainment department must subsidize Netflix in the form of commercial advertisements at the fastest speed.”

Barry Diller's point of view, has been recognized by everyone.

Only reducing the price by $2 can not only avoid the rapid loss of Netflix users due to the large price gap, but also prevent problems before they happen and reduce the “subsidy” loss of New Global.

The monthly price of $18 is enough to make Netflix self-financing as long as the number of Netflix users can be maintained at the level of 5 million.

Of course, everyone's eyes were focused on Dunn.

Tang En's face was indifferent, and he said solemnly: "Basida's launch of the monthly membership policy is equivalent to giving up a large part of the late fee income; because of the ban of New Universal and Disney, the normal leasing business of Besta is also declining; Being split by Viacom, Blockbuster is burdened with huge debts, and the annual interest repayment will cost 350 million US dollars. If Blockbuster's monthly subscription system cannot make rapid progress in a short period of time, their cash flow, There's bound to be a big problem!"

As soon as these words came out, everyone's expressions changed.

This big boss is planning to be tough to the end!

Barry Diller's moderation policy can reduce his own losses and at the same time use Netflix's own advantages to sanction Blockbuster.

Listening to Dunn's tone... he doesn't seem satisfied.

"Dan, what do you mean?"

Barry Diller opened his eyes wide, looking at the determined young man sitting in the main seat, with indescribable emotions in his heart.

In the end young, high-spirited ah!

Tang En said in a cold voice: "Basida was split by Viacom. I thought about talking to Disney once to cancel the ban on Besta. But I didn't expect that they started early, and the target was Netflix! In this case, Don't blame me for being ruthless! We must insist on Netflix's own advantages, and at the same time, we must fight the price war! Not only fight, but fight to the end!"

These Americans have never seen the subsidy war.

Dunn had met too many times in his previous life.

In the process of subsidy, there will indeed be a great loss of profit. UU reading www.uukanshu. com

However, as long as they defeat their competitors and achieve a monopoly on the market, they can reap several times the profits.

He wasn't even afraid of Redstone's Viacom, and he was afraid of John Antioco's Blockbuster?

What a joke!

"So you're saying... can't Netflix just drop the price by $2?"

When Dunn was furious, Barry Diller could still say a few words.

"That's right! Isn't Blockbuster going to launch a monthly subscription policy of $16? Well, they can afford it, and we can play it even more! As long as the legal department approves, we will also launch a monthly subscription policy of $16!"

Dunn has made up his mind.

Since Besta dared to take action, he would not be polite.

Blockbuster in the previous life went bankrupt in 2010, Tang En is bound to make this time a few years earlier!

Fight for the end of the fight in 2005 or 2006!

Kevin Turner frowned and said cautiously: "Boss, if we implement a monthly subscription of $16, Netflix will lose an estimated $100 million every year in the future..."

Tang En waved his hand, "Don't say 100 million US dollars, since it is a price war, even if we lose 1 billion US dollars every year, we have to persevere!"

Reed Hastings seems to appreciate Dunn's strengths, but when everyone else's faces are complicated, his expression is full of smiles, "If Netflix's users are on the order of 5 million, it will indeed lose 1 1 per year. $100 million. However, after the price cut, there will be a wave of user growth. If Netflix users reach the order of 15 million, even if the monthly subscription price of Netflix is ​​only $16, it will be self-financing.”

Tang En's heavy face also showed a smile, and spit out a word: "Okay!"

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

(Sanqi Chinese)