Chapter 712： emerging economic model

The market competition between Netflix and Blockbuster is far from over.

But people with a little brain can basically see the development trend.

The giant-like Blockbuster is dying step by step.

Netflix, an emerging company, is rising unstoppably!

Everything, just a matter of time!

Two years ago, who would have imagined such a situation?

At that time, Blockbuster was valued at US$36 billion! It is a big trump card of Viacom, and it is a great weapon for Redstone's attempt to monopolize Hollywood in disguise!

The results of it?

Two years later, Blockbuster was split by Viacom, and its market value has fallen below $10 billion.

Seeing him rise from a tall building, seeing him collapse.

Back then, the little-known website Netflix, which even faced bankruptcy and could not survive, rose rapidly after taking refuge in Tang En. It seems that there is a power of sunrise and morning light, changing the world and calling for the dawn.

Although the competition between Netflix and Blockbuster is only a small market for disc rental, the confrontation between emerging Internet companies and traditional companies is so fast and fierce that the entire United States is looking at it.

Now, Dunn has put forward a new point of view-if Netflix competes with the most popular and popular starz TV station, what will the result be?

One is an emerging Internet company, and the other is a traditional TV industry.

Could it be that……

Tang En watched the faces of everyone in the conference room change, and said calmly: "I'm not afraid to tell you, if there is a day, starz TV station will die without a burial! If you hurry up to transform and tilt towards the Internet business , maybe... there will be a trace of living space."

The hbo of the previous life is a living example.

After Netflix launched "House of Cards" and started the production of its own drama, the number of users, revenue and influence of hbo have plummeted.

It was not until the launch of streaming media platforms such as hbo_no and the maintenance of conscientious boutique dramas such as "Game of Thrones" and "Westworld" that the downward trend was barely maintained.

But there is no possibility of growth.

"No way?"

Barry Diller lost his voice in horror.

"No?" Tang En shook his head disapprovingly, "If there is such a day, let alone starz TV station, the entire United States, all cable TV stations, will be severely impacted! Whether espn, mtv, or even us The usa, must bear the risk of bankruptcy!"

Dunn's judgment has always been accurate.

Although many people do not agree with his remarks, he is Dunn Walker!

With his understanding of the Internet, television and film and television entertainment, maybe...it could really happen.

"Doesn't that mean... Netflix will hit the entire TV industry?" Jeff Zucker looked ugly.

Tang En said solemnly, "That's right."

Barry Diller questioned: "Then why are we buying Discovery Communications?"

Tang Endao: "First of all, the TV industry's ability to make money is very strong. Even if it encounters the impact of the Internet, it will take decades to really end. This period of time is enough for us to earn back our investment. Besides, wait. The network speed bottleneck is broken, and after the rise of the online streaming media business, there are still three types of TV stations, and there will be guarantees of survival.”

"First of all, there are free TV stations like nbc, abc, and cbs. Streaming media also charges, and free products are competitive at any time. Furthermore, it is the strategy I created for starz TV station to launch high-quality content! In the final analysis, no matter whether it is streaming media or TV, what you watch is content. As long as starz TV station can have an absolute content advantage, there will naturally be a pure land for one party to survive.”

Robert Iger, Bill McNick, Jeff Zucker, Chris Albrecht, and others, it dawned on me.

They thought that Tang En firmly established the high-quality line of starz TV station, which was a firm implementation of the "explosive strategy". It turned out to be a huge success.

But I didn't expect that there was such a deep intention behind Tang En's layout.

This is one step, three steps!

Bill McNick's view of himself in his heart suddenly loosened.

Tang En's business acumen is so clear and his strategic logic is so transparent, questioning his strategy... Could it be wrong?

In any case, the success of Netflix is ​​indeed impressive!

Not only that, but Blizzard seems to be following in the footsteps of Netflix and has risen strongly!

The large-scale online game "World of Warcraft" launched by Blizzard will start its closed beta in North America in two months. Will it really blow up the United States?

Tang En ignored everyone's admiring expressions and continued: "The third type of TV station that can withstand the impact of the streaming media business is the Discovery Communication Channel. Of course, it doesn't mean that it can be as stable as ever, at least it won't be damaged. So big. The average daily viewership of Discovery Media in the United States is less than 0.6%, which is a disadvantage and an advantage to withstand the impact of future streaming media.”

"The United States is the forefront of Internet development. Relatively speaking, Europe is far behind. Of course, it also includes South America, Africa, South Korea, Japan, Hong Kong and Taiwan. In these countries and regions, the vitality of TV stations is still strong, while the The main profit model of the Discovery Communication Channel is small profits but quick turnover, and it is fully rolled out.”

"Of course, what I'm talking about is the new operational strategy that we will implement after we acquired Discovery Channel. Under this kind of thinking, Discovery Channel can achieve...annual profit within six to seven years. $3 billion!"

Tang En's rhetoric almost shocked everyone present to drop their jaws.

This is too exaggerated, right?

New Universal's acquisition of Discovery Communications, the estimated cost...that's $3.5 billion.

Tang En said that the annual profit of Discovery Communication Channel can reach 3 billion US dollars after six years... Isn't this the same as picking up cabbage?

Jeff Zucker repeatedly echoed: "I agree! If the potential of Discovery Communication Channel is really realized, its profitability will be no less than that of large public television networks such as abc and nbc. Don't forget, abc is also good, cbs, Even nbc, the audience they are targeting is the American audience, and the user base of Discovery Channel is the whole world!"

Such a beautiful corporate blueprint dissolved the cold water of Bill McNick's initial questioning remarks, and the atmosphere in the conference room became warm again.

At this time, Dunn can really elaborate on his emerging Internet thinking.

"Okay, then, let's talk about the Interactive Entertainment Department."

Dunn looked at Bill McNick, and found that his face was very embarrassed, showing an expression of shame.

Tang En ignored it and continued: "The traditional economic model believes that companies must be profitable before they can be recognized. This is true, but this does not conform to Internet thinking. What is Internet thinking? It is an investment in imagination! Emerging economic models , is to take the imagination as the foundation, continue to explore, and constantly expand the boundaries.”

"During this process, it is normal to encounter obstacles frequently. During the bubble crisis in the past few years, thousands of Internet companies went bankrupt. However, this does not mean that the thinking of Internet innovation is wrong. New Universal Group is a A company based on film and television entertainment, however, we must not lag behind on the road of imagination. Otherwise, today’s Blockbuster may very well be the future of New Universal!”

This is not alarmist.

After the birth of emerging media companies such as Netflix, Google, Facebook, and Amazon, traditional media companies have been severely impacted.

Viacom is doomed, News Corp. is doomed, and Time Warner is sold out.

Both Disney and Comcast struggled to survive, embarking on a series of massive asset consolidations in an attempt to survive.

Disney acquired 20th Century Fox for more than $70 billion, and Comcast also offered a sky-high price to invite the European TV giant Sky TV Network to acquire...

To put it bluntly, it is a group to keep warm in the cold winter.

It was quiet in the conference room, just listening to Dunn expounding his ideas——

"For example, let's talk about Amazon. Amazon has been listed for so many years, and it has been losing money every year. Every year, it has to zi or issue bonds. According to traditional business logic, such a company should have closed down long ago. Now, right? Even if it doesn't go out of business, it will be hard to support, on the verge of death."

"But in reality? Amazon's market value exceeds $20 billion now! After the bubble crisis, Amazon's stock price has been rising. Why? How can Amazon be firmly recognized by investors and the market? There are many reasons. Simple, I've said it before, it's an investment in imagination!"

"Amazon spends a huge amount of R&D every year. I am a shareholder of Amazon, so I know some data. This year, Amazon's R&D expenditure is 4.7 billion US dollars, which is three times ours! They are exploring e-commerce technology, machine learning, Emerging businesses such as unmanned vending, drones, artificial intelligence, and rocket launches.”

"Of course, these businesses may not all be successful, but these are imaginative projects that can change the world! As long as one succeeds, it will support Amazon's future heavy business. It can be said that if one day Amazon gives up The pursuit of imagination and the choice of profit, then the growth of market value will be flattened.”

"What are investors really optimistic about? Is it the profitability of the company? No, no, no, Blockbuster's profitability is 100 times that of Netflix! But investors' confidence in Netflix has already crushed Blockbuster. Why? Investors are actually investing in the size of the company's imagination!"

Tang En paused and said slowly: "It is understandable that New Universal wants to make money. However, we must not lose our imagination. The Interactive Entertainment Department represents the brand value of New Universal, as well as hope for the future. Whether it’s $1 billion or $10 billion, I will definitely push forward the imagination of the interactive entertainment department unswervingly!”

Kevin Turner's eyes were wet, and tears almost fell.

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. Nine Heavens God Emperor 6

(Sanqi Chinese)