Chapter 433： Streaming plan

In the new office building of Netflix in San Jose.

Netflix’s CEO Mark Randolph is looking at a plan. This is a plan related to Netflix’s future development. In addition to the current Internet film and television rental business, there are two development plans for online video and Internet social networking. .

This did not surprise him, because since the second half of last year, in the communication with Ronan, he had frequently heard him mention this aspect, and he had been mentally prepared.

There was a knock on the door, and Ronan and Robert Iger walked in together.

Mark Randolph greeted the two quickly: "Morning, Ronan. Early, Bob."

Ronan and Robert Iger responded politely, and then sat on the sofa and began a work conversation.

"The development of Netflix last year was very good." Ronan said directly: "I hope that this year Netflix can continue to maintain such a momentum of development, and at the same time prepare to open up new business."

This aspect was planned before the acquisition of Netflix. After Christmas, I exchanged opinions with Robert Iger, and then specified this preliminary development plan, which was brought to Netflix for discussion.

Robert Iger said: "Netflix's business is relatively single. Once the DVD industry fluctuates, Netflix will inevitably face huge risks."

Mark Randolph naturally wants to expand Netflix's business, but as the company's CEO, he must remain rational and said: "Netflix has just gotten on the right track. Isn't it a bit aggressive to expand business rashly now?"

Ronan smiled and said, "Mark, I know what you are worried about. This is just a plan, and it is a preliminary plan. Next, market research, project inspection, internal discussions, and detailed plans must be carried out. And the time for creation is next year."

With a year as a preparation period and a buffer period, Mark Randolph is confident.

"I will discuss within the company." He no longer hesitated: "Then set up a project team to promote the preliminary preparations."

Ronan nodded and said: "Robert and I conducted a special discussion based on market research data and the development of the Internet. Internet video and download services are developing rapidly. Just like DVDs impacting the traditional video tape industry, it will affect the DVD industry for up to ten Bringing a huge impact, and even the decline of DVDs."

Robert Iger added: "How fast the Internet is developing, you know better than us. Ronan made an idea. If there is a website that can directly provide high-definition online on-demand services, can Netflix's leasing business continue? ?"

Although limited by hardware and bandwidth, Internet video-on-demand has not really become popular, but Mark Randolph has seen the lightning-fast development speed of this industry, let alone ten years, five years may see radical changes.

If you can sit in front of the computer and click on the video and watch the high-definition movie, who would like to wait a day for the DVD to watch it?

Mark Randolph felt a real threat, a danger that could completely end Netflix's business.

"Plans in this area are very necessary." Mark Randolph said seriously: "We can't wait for a new industry to flourish and then transform like Blockbuster, it will be too late."

Ronan pointed to the plan and said: "There is currently no company that specializes in online video business on the Internet. We will go ahead and may take the lead in the future."

Robert Iger took the conversation: "The path the Trail Blazers take is very dangerous. Once they succeed, they can have a huge advantage."

Mark Randolph no longer has any questions about the Internet video business, and instead asks: "Internet social..."

Ronan simply said: "You must be familiar with this aspect. Chat rooms, forums, and blogs are all mature online social media. In particular, blogs have almost changed the Internet. Our goal, It is a network social carrier that is more refined, faster and more capable of sharing and spreading speed than blogs."

Mark Randolph listened very carefully. Through his contacts last year, he knew that Ronan was definitely a layman in the Internet industry at the technical level, but his vision and ability to judge market changes are more than excellent and can be described.

Ronan said that the DVD industry in 2002, especially film and television DVDs, will have a huge development, which is indeed the case.

In 2002, the sales volume of DVDs in the Hollywood film and television industry alone increased by more than 50% over the previous year.

Correspondingly, the sales volume of DVD players in 2002 was 1.5 times that of 2001, and the price of a DVD player dropped from nearly US$500 to less than US$200!

This also allows DVD players to become more popular in the future.

Listening to Ronan’s words, Mark Randolph nodded frequently, because what Ronan said can all be realized through the Internet. Once realized...

The whole world will change for it!

Mark Randolph was very excited, but he remained calm enough. The future seems to be very good, but that is just the best idea. If you want to realize it, a lot of down-to-earth work is required.

The risks are also great.

Ronan said at this time: "My vision is to build Netflix into a streaming media company that integrates personal picture and video publishing, movie and TV video subscriptions, and online social networking and sharing!"

Mark Randolph and Robert Iger did not speak, but were thinking about Ronan's words.

The two thought of the same aspect. Once this is achieved, Netflix will become a giant in the Internet industry.

But the future is very beautiful, and it is not easy to achieve it. The difficulties and risks must also be considered.

Moreover, the plan is just a plan. If you want to become a field project, you must do sufficient preliminary inspection and market demonstration to verify that the plan is indeed worthy of input.

In the following days, Ronan and Robert Iger stayed in San Jose, meeting frequently with the top management of Netflix to discuss future plans.

Until the eve of the Golden Globes, the two took a flight back to Los Angeles together.

There are not many passengers in the business class, and Robert Iger is still discussing the previous development plan with Ronan.

"Have you ever thought about it, Ronan." Robert Iger said bluntly: "To achieve the plan, Netflix will need a huge amount of money."

Ronan nodded and said, "I know. Now Netflix has a library of more than 2,000 films and TV series copyrights. In terms of production of new dramas and new films, Shahai Entertainment is supported. Don't worry too much about the content. The obstacle is undoubtedly funding."

Robert Iger also reminded: "I have carefully studied blogs and other social media. The initial investment is very large, but it is difficult to see effective returns. Funding is a problem we must solve."

Ronan had already thought about it and said, "Bob, what if we choose a suitable opportunity to get Netflix to go public and raise money?"

It is impossible to make Netflix a veritable Internet giant based on the power of Relativity Entertainment alone.

As a modern company, Netflix is ​​also the best choice to go public and raise funds.

Robert Iger is an excellent corporate manager, of course he will not object, reminding: "Choose a good time."

Ronan said seriously: "It's still too early to say this. Even if it goes public, we have to wait for Netflix to build a framework that people can recognize."

Robert Iger first nodded, then turned to say: "Ronan, have you ever thought about it. If the online video subscription business really develops and achieves your planned goals, it may have a huge impact on the traditional film and television industry."

"It's possible." Ronan said with a smile: "But even if everything goes well, Netflix will not be able to subvert the traditional film and television industry in a short time. Relativity entertainment itself is a representative of the traditional film and television industry. We want Netflix's future The possible advantages are combined with the advantages of the film and television group, so that the two sides can effectively complement each other."

Advancing the traditional film and television industry is simple to say, but it is so easy to do.

The United States is a little better. Even if, like Netflix, it has been resisted by many Hollywood companies and directors like Spielberg, it can still develop relatively freely.

But in many areas overseas, it is very difficult for Netflix to develop its business.

For example, France France has strict legal restrictions on the exposure of a movie on various platforms: after the movie is released in theaters, it can log on to the video-on-demand platform after 4 months, and it will reach the cable after 10 months TV will arrive on TVB after 22 months, and will only appear on streaming media platforms after 6 months.

Netflix belongs to the end of this chain.

The turmoil triggered by Netflix, in a sense, is also a conflict between two cultural values, and a challenge to traditional media by the growing streaming media platform.

The more important reason is that there is a period of protection between a movie's release in theaters and its online release, and each country has different requirements for the length of the protection period.

In European countries such as France, there are film-related legislation that determines that all blockbuster films that are shown in theaters will receive a certain percentage of box office revenue in the form of film tax. For Hollywood blockbusters, the tax rate is even higher.

All of this income will be used again for the state's support for art films.

In the United States, this does not exist at all. There is no special film tax to support artistic innovation, and there is no government intervention. All movies and theater developments are operated in accordance with absolute commercial laws.

Therefore, Netflix has caused much worse resistance in theaters, industry, and politics in the United States.

In Ronan's last few years on the other side of the Pacific, the revenue capacity of many online movies and TV shows has surpassed that of traditional platforms such as theater movies and TV stations.

The knock-on effect of this can be imagined.

The road ahead is very difficult, but Ronan does not have the idea of ​​backing down. To break the rule of traditional giants, he must use methods other than traditional.

As long as Netflix has enough paying users, Ronan can bring a brand new situation.

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