Chapter 434： Irreversible trend

Even after returning to Los Angeles, Ronan has been maintaining enough communication with Netflix, and even the Shahai Entertainment Production Department has joined the ranks of frequent exchanges with Netflix.

In the future, Netflix's streaming media model will also have a huge impact on the production of Shahai Entertainment.

If all goes well, when Netflix squeezes the video store and overtakes the TV station, it will naturally enter the film production industry and cooperate more closely with Shahai Entertainment.

As for Netflix's member users, they always want to see more TV shows, movies, variety shows, etc. The more they choose, the more the better. After Netflix establishes its position in the industry, it will become easier to attract good creators.

Even as before, the filming of web dramas by big directors and popular stars is no longer preconceived as something uninfluenced.

Ronan summed up some of Netflix's models based on his memory. In fact, Netflix will not be rejected by Hollywood practitioners, because it would increase job opportunities for them.

As we all know, the treatment and union opportunities of popular Hollywood stars or directors and the second-tier are very different. The former can easily be paid in millions of dollars or even tens of millions of dollars, and sometimes there are too many projects to choose from.

The latter seems to be only one level behind, but the salary is often only more than one hundred and two hundred thousand dollars.

Even this kind of job opportunities are not many.

Moreover, under the current Hollywood production system, films with certain author attributes and a certain degree of commerciality are abandoned to a certain extent.

Nowadays, independent labels are declining. For practitioners in the industry, either large-scale production films from large studios or small-cost independent films are made. The former has money, the latter has freedom, and each has its own survival system.

The intermediate cost of the film is more difficult to handle, all aspects are limited, the key is that the cost may not be recovered.

The emergence of Netflix created opportunities.

In fact, Netflix’s convenience for film production and distribution is more than that. For example, it can easily connect domestic and foreign production and distribution resources to lengthen the life cycle of a film; before a film is released, a copy must be hired to send it. Cinemas everywhere, cinemas have to spend money to maintain operations, a series of costs are very high, digitalization only reduces the cost of a part of the link.

Distributing a movie through an online platform does not require copying, no need to spread too much hard work, no middlemen, and even movie theaters.

So are some movie theaters going to close down? Obviously.

Therefore, once Netflix participated in the Cannes Film Festival, the French seemed to panic when they saw the German invasion.

Because the most impacted by Netflix, it is precisely the art theater that likes to maintain the so-called tradition and not pay attention to keeping up with the times.

Art films don't need much good projection equipment, and even big screens and widescreen displays are not completely different.

On the contrary, the impact on commercial theaters will be smaller. For commercial special effects films of medium scale and above, the difference between watching them in theaters and on small screens is too great.

As a result, Hollywood and Netflix have an ambiguous attitude, and even cooperate closely. Looking back at the European art film circle, Netflix is ​​simply regarded as a tiger wolf.

If you have to list the advantages of art film theater screening, I am afraid that only the "sense of ceremony" is left.

Under Ronan's coordination, Netflix has been communicating smoothly with Shahai Entertainment and Embassy Pictures. The former can provide a series of market data for the latter.

As of the end of last year, Netflix users generated more than 20 million behaviors every day, including clicks, registrations, film selections, rentals, etc., as well as more than 500,000 search requests. The database can use these data to accurately analyze which topics users care about most. , Which actor he likes the most, which shot he has never forgotten, etc., it can be said that he knows every user's taste very well.

These data are transferred to Relativity Entertainment, which is likely to happen. For example, if a popular IP wants to be made into a movie, most fans hope that a certain male and female celebrity partner may come true.

In fact, in Ronan’s view, for a long time in the future, the Internet video business of Relativity Entertainment and the business of physical cinema projections will co-exist. This will allow different types of movies to find their own most suitable platforms, and it will also be effective for theaters. The audio-visual quality of movies puts forward higher requirements.

For the audience, there is no conflict between the whole family going to the cinema to watch popcorn blockbusters on weekends and watching streaming videos on a tablet alone in the dead of night.

And as the classification of movies produced by online video platforms becomes clearer, new industry rules and related management regulations will also be born in North America. For example, video websites can circle some of the movies of major directors and major productions to reach the level of 4k movie theaters. And it has formed a relatively balanced relationship with the physical theaters in the process of gradual running-in.

In this era, all walks of life are Internet-based. This is an irreversible trend. As a traditional industry, we can only learn to adapt actively and find the next outlet in integration.

With the current development situation, it won't take long for the "old guys" in Hollywood to smell the crisis, feel the opportunity, and realize that streaming media will become the future of entertainment in the Internet age unstoppable.

In the last few years of Ronan, major traditional film companies represented by Disney, Warner, and Universal rushed to release plans to build their own streaming media platforms. Even technology companies such as Amazon and Apple hope to use their resource advantages to open up the streaming media market and share the dividends of film and television content in the new era.

Now that Relativity Entertainment and Netflix can take one step faster, they may have a greater advantage in the industry in the future.

Ronan once carefully analyzed that at that time, it was Walt Disney who could really compete with Netflix in streaming media.

There is no other reason. Once Disney removed the advantages of Disney itself, and then held Pixar, acquired Marvel Comics, annexed Lucasfilm, and owned the most popular and high-quality content in Hollywood.

Content is the basis for streaming media business.

But now, apart from Pixar Studios, other companies and content are still far away from Disney.

Ronan has also been making plans to completely isolate these important content manufacturers from Disney.

Now that the Walt Disney corner has been dug once, and Robert Iger, the smiling Mickey Mouse, is invited, Ronan doesn't mind dug a few more times.

At the same time, Ronan also asked Shahai Entertainment to introduce to Netflix two programs tailored for Netflix's online video business.

According to the plan, these two programs can be launched at the same time as Netflix's online video service.

The crew of "Survival in the Wilderness" has been formed, and many professionals have been recruited. They are searching for suitable locations and designing scripts all over the world.

But the key figure Bell Grylls is still floating in the Atlantic Ocean and it will take some time to reach North America.

Another TV drama project is officially called "Prison Break". The script was finalized just a year ago. Shahai Entertainment has already started recruiting actors and directors.

It is expected that it will take three months at the earliest to enter the shooting stage.

Ronan didn't remember the fame of the actor in this play. After all, the one in the previous life was a little hot because of "Prison Break", and then everyone was confused.

He simply let Shahai Entertainment determine the actor candidates through a wide range of auditions.

Since 2002 has passed, a lot of statistics have been sent to Ronan, especially those related to movies.

Last year, the North American DVD sales of eight movies exceeded 100 million U.S. dollars. The top three were "Spider-Man" with 12.2 million and 21.5 million U.S. dollars, "The Lord of the Rings: Squad of the Ring" 12 million and US$25.7 million, 11.8 million copies of "Monster Electric Company" and US$22.51 million.

Because the DVDs were first released at the end of 2001, although they were not among the top few, they still sold 6.5 million copies and US$120.54 million in 2002, ranking No. 1 in the North American DVD sales list last year. Eight.

However, in the rental market, "The Bourne" overwhelmed all competitors, with more than 20 million leases and a rental income of 88.98 million US dollars, ranking first in the North American rental list!

This is also the best rental performance of Hollywood films in a single year after "Sixth Sense of Supernatural"'s rental income of 98.6 million US dollars.

Counting the year 2001, "The Bourne Shadow" achieved nearly $240 million in revenue in North America on DVD alone.

For many movies, it is no longer a rare occurrence that DVD revenue exceeds the box office.

Of course, just like the North American box office has to be divided into layers, UU reading dvd also has various costs.

The box office is divided by the theater party, and the channel fee is indispensable for DVDs.

But the cost of DVD is much lower.

Excluding cost, publicity and distribution, and various distribution channels, the DVD profit of "The Bourne" is 112.1 million US dollars.

As of the end of 2002, including the profits of various channels and surrounding areas in North America and overseas, Relativity Entertainment's profit on a single project of "The Bourne" was as high as US$25.67 million.

DVDs have accounted for more than 40%.

Throughout 2002, Relativity Entertainment did not produce many movies, but its performance was still outstanding. Even if the US$60 million invested in Netflix’s capital increase and share expansion, the tens of millions of US dollars in the establishment of an animation studio and various expenses were excluded, it still achieved 100 million. Net profit of US$86.8 million.

Old movies are still relying on offline markets other than theaters to create profits, and new movies such as "Resident Evil", "Underworld", "Reaper 2" and "Hurricane Rescue" have performed well.

Especially for the latter two, "Reaper Is Coming 2" has been downgrade in North America, with the North American box office reaching US$101.02 million and the global box office totaling US$12.01 million.

The North American box office of "Hurricane Rescue" is even higher, close to 175 million U.S. dollars, and it is extremely hopeful that it will exceed 180 million U.S. dollars in the end, and its overseas revenue is also close to 150 million U.S. dollars.

Relatively speaking, 2002 was only a film year for relativity entertainment, and 200 years was a real film year.

Although Relativity Entertainment is still taking the boutique route, both the number of films and the scale of investment in 200 years will create a new record since the company was founded.

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