Chapter 467 Online Rental Platform
In two months, seven movies, the only one that really brought great losses to Daenerys Entertainment was the movie "Scream".
Moreover, "Scream" is a movie taken over by Universal Pictures. The film was completed last year and has been delayed until the unpopular schedule in January this year. It was originally because Daenerys Entertainment was not optimistic about the quality of the film's film, and the loss ending was completely expected.
In addition, except for the "Shinqiao Lovers" which lost a little, the other five films, "Dance Heroes", "Drunks Falling in the Water", "Ghost Chasing Souls 4", "Double Dragons Club", and "Love-loving High Heels", have been confirmed to be able to make profits.
Such a start is enough to prove the feasibility of the parallel business strategy of the three brands of Daenerys Entertainment.
After browsing the box office report in his hand, the female assistant came over to knock on the door to remind him.
Simon brought the information to a small conference room next to his office. The heads of the three brands, including Amy Pascal, have arrived.
Not only Simon, but other executives were also quite satisfied with the release results of the seven movies in the first two months of 1992.
What everyone is discussing at this time is mainly a summary of the release results of these seven movies.
Seven videos, three brands, and further down, each project actually has a dedicated publicity and distribution team.
Such a distribution model can allow the team to complete the promotion and distribution of a movie more focused and precisely, but at the same time, it can easily lead to internal competition between each other.
Simply put, different film projects have different quality, box office size, internal reputation, etc.
Therefore, each issuing team will definitely be more inclined to take over high-quality projects and abandon inferior projects.
This is a very difficult question.
Movies are a very expensive business, and even a bad movie often means millions of costs. In Simon's opinion, what the distribution team should do is to find ways to make a movie better, rather than to "cheer" in pursuit of more potential films.
In traditional concept, if an employee releases a video, the better the box office, the higher the salary will often be.
This must not be changed.
However, if you want to change the distribution team's "picky food" phenomenon, you must also change the salary based on the movie's box office results.
Otherwise, the team that released "Drunk" will not be able to compare with the team that will be responsible for this summer "Wonder Woman" or the end of the year "Jurassic Park".
This requires a more reasonable performance evaluation system.
Simon is now more inclined to ask questions. As for the solution, the company has raised so many people, so naturally he doesn't need anything to let him do it himself.
However, this meeting also discussed a solution.
This is to keep the uncertainty of each distribution team.
In other words, after completing a project, a team is directly disbanded and then reorganized to be responsible for the next team.
This can greatly avoid various small hills within, and can also continue to ensure the overall unity of the company's issuance team and the internal collaboration that Simon has always emphasized.
Of course, this will also lead to some disadvantages.
For example, if some people who work together and understand each other cannot be assigned to one group, they will definitely reduce their work efficiency to a certain extent.
However, this disadvantage is not worth mentioning compared to the overall interests of Daenerys Entertainment.
The entire Daenerys Entertainment should be one, and this integration means that any group of people under the company should be able to achieve good cooperation with each other. It is impossible to change the overall personnel strategy of a company in order to accommodate a few people.
In addition to the issue team's problems, there is also a cost control issue.
Simon thought of this because of "The Dog in the Water".
Daenerys Entertainment has always paid great attention to cost control, but it is impossible for large film companies to be as petty as second- and third-tier small studios. For the same project, for various reasons, it often costs more money.
The budget cost of "Drunk" in memory is only $1.2 million.
However, this time, when there was no big change in the production specifications of actors, he spent $2.5 million. Simon actually understood the problem. For example, in the original "Dog in the Water", Harvey Kettle starred in his self-rewarding film. This time it was produced by Daenerys Entertainment, so Kettle naturally did not need to lower his own salary.
In addition, there are also trade unions issues.
If a low-cost project like "Drunk" is produced by other small production companies, it does not need to contact the union because the cost is very low and it can not be restricted by the proportion of union employment. However, it is difficult for large studios like Daenerys Entertainment to avoid hiring more union members due to separate agreements.
In the same position, the salary standards between unions and non-unions may sometimes double.
In short, although many costs cannot be saved, in Simon's view, this is still an issue that can be improved.
The meeting lasted for an hour, closed the documents in front of him, and Simon said to Amy Pascal and others: "I recently saw an article about Walmart. You said, why can Walmart do so well in the context of so fierce competition in the retail industry?"
When everyone heard Simon say this, they couldn't help but look at each other.
However, the boss’s problem must not be ignored. Mark Belford first said: “Cost control is a big aspect. Walmart bypassed the middlemen and purchased goods directly from the manufacturer. This not only saves costs, but also gives benefits to consumers as much as possible.”
"Yes, that's one point," Simon nodded, saying, "But, since even you know something, do you think other retailers will ignore it, but Walmart still surpasses them."
Mark Belford opened his mouth but couldn't refute it.
Seeing that Simon was still staring at everyone, obviously waiting for the next answer, Amy had to say: "It is the overall business strategy advantage. From commodity procurement to warehousing and logistics to terminal sales management, Blockbuster, which Nancy is responsible for, is learning from Wal-Mart in many aspects."
"As long as you know these, competitors will definitely be able to imitate them," Simon shook his head again, saying: "Just like you said, even the videotape chain can learn from Walmart, and there is no reason other similar retailers won't."
Simon chased after him, so everyone had to express their opinions one after another.
Until the end, everyone expressed their opinions, Simon said: "Actually, what you said is right, but not right. The article I saw was a very small detail about Walmart. During the sales process, Walmart found that there was a positive correlation between beer and diapers. After careful investigation, it was found that many consumers often hold beer casually when buying diapers. Inspired by this phenomenon, Walmart placed the shelves of beer and diapers at a closer distance, and the result was that the sales of both products increased."
There were smart people in the conference room. When Simon said this, Amy said, "Simon, you mean, details determine success or failure."
"Yes, details determine success or failure," Simon nodded, "Walmart's advantage over other retailers is that they have been spared no effort to adjust their business strategies through almost inconspicuous details, accumulating a lot, and eventually falling behind competitors in the same industry. I hope you can remember this. Daenerys Entertainment has now surpassed all other Hollywood competitors in the film business and is still developing rapidly. However, I don't want you to give up your enterprising spirit because of your strong market position and turn a blind eye to some problems that you think may not be serious in the company."
Everyone around nodded.
Simon glanced around and said, "I hope you will do this, not just nodding in front of me. I can tell you clearly that Daenerys Entertainment can give you more than other executives in the same industry, but at the same time, if I feel that you are slacking off by satisfying your current achievements, even if you have not made any mistakes, I will fire you without hesitation. Daenerys Entertainment does not need employees who are content with the status quo. And, not just you, but the whole Daenerys Entertainment is like this, you can pass my words to your respective departments."
Hearing Simon's serious tone, the few people in the conference room were shocked.
On the top ten box office list last year, videos related to Daenerys Entertainment accounted for most of the time. At the same time, all other projects of Daenerys Entertainment are thriving. It would be impossible to say that Daenerys Entertainment's executives did not feel complacent in their hearts.
Simon's words seemed to be warning himself to everyone.
Moreover, with Simon's usual strength in Hollywood, they knew very well that their boss would really do this.
Daenerys Entertainment is already huge enough. Unlike some second- and third-tier studios that will fall into chaos if the core executives are missing, Daenerys Entertainment will not have too many problems in operation if there is no one person. Because it is strong enough and has high enough salary, executives in any position will resign, and Hollywood also has enough candidates to hope to be substituted.
Therefore, Simon also had the confidence to say this.
After the meeting, he continued to complete the work of the day according to the schedule planned by the female assistant. At around 6 o'clock in the afternoon, after get off work, Simon took the female assistant to San Francisco quietly.
The next morning, after breakfast, Simon rushed from the villa in the Woodside Mountains to Egret headquarters.
After a regular meeting on Amazon's online mall and cloud computing development progress, Simon also met Nancy Brill in San Francisco.
Nancy arrived in San Francisco yesterday for the development of Blockbuster's online rental platform.
A few days ago, Amazon's online mall opened. Because of the hot book sales, Simon asked Nancy to come and provide some warehousing and logistics support for the online mall.
The small senior executive seemed very excited about the job, and was inspired by it and planned to develop a Blockbuster online rental platform.
Of course, at this stage, it is definitely impossible to achieve Netflix's model of renting entirely through the Internet, but an online rental solution that is combined with physical chain stores.
After the online rental platform is launched, users can rent or purchase the video tape they want directly through the online platform, and then go to the designated physical store to pick up the goods.
Doing this seems to be a bit suspicious of being extravagant, but in fact, it is not the case.
Users must have a selection process when renting or purchasing video tapes. Compared to choosing in physical stores, directly placing orders through the online rental platform can not only save a lot of time, but also more intuitively viewing the information of each video on the online rental platform, and even including recommendations of the same type of video.
Of course, this is just one of them.
The most important thing is that online rental platforms, like the comparison between Amazon's online mall and physical retail bookstores, can provide users with richer content resources.
The standard store of Blockbuster's chain stores generally only have 600 square meters of space, and can provide up to thousands of video tapes for users to choose from.
Online rental platforms can provide tens of thousands of film and television content.
Of course, except for a batch of popular movie and TV resources, most of the content will not appear in the store. Nancy plans to establish large storage centers in major cities in North America to store these video tapes, and plans to expand Blockbuster's logistics team.
When users place orders online, a special logistics team will deliver the video tape to the designated physical store, and the user will then go to the store to pick up the goods in person.
Compared with Netflix's direct-to-door mail order model, doing so can save a lot of budget.
For Blockbuster, developing an online leasing system can, on the one hand, enter the Internet field in advance, and will not be able to take the lead by other competitors, laying the foundation for future transformation. On the other hand, the leading online leasing model can also be used to promote Blockbuster's membership system.
Simon has discussed Blockbuster's membership system with Nancy more than once.
Although some value-added services have been launched, they cannot escape the simple discount model. Therefore, before this, Blockbuster members were not very attractive to users.
Now, the launch of online rental platforms can undoubtedly greatly increase the attractiveness of Blockbuster members.
Through the online rental platform, Blockbuster can also guide users to consume more content in the form of page recommendations, email advertisements, etc.
Of course, this platform will definitely cost a lot of money in the early stage of launching, but once it is formed with a sufficient scale, the average cost will naturally drop.
Moreover, by establishing an online rental platform and locking in the concept of the Internet, Blockbuster's stock price will also greatly increase in the Internet wave in the next few years.
Chapter completed!