Nancy Brill once ambitiously hoped that Blockbuster would achieve $5 billion in revenue within three years, accounting for half of the video tape market.

In 1991, Blockbuster's revenue scale was US$2.31 billion. In 1992, Blockbuster's revenue scale was initially estimated to be US$3.36 billion, with an annual growth rate of 45%.

With the complete completion of Blockbuster's global chain store layout this year and the continued rapid growth of the global video tape market, Blockbuster's growth rate is not much problem for Blockbuster to achieve the same growth rate as in 1992. The same 45% growth rate means that Blockbuster's annual revenue in 1993 is expected to be close to US$5 billion.

It lasts for three years and the triple jump plan is officially completed.

Although some deviations are inevitable, such as a large part of the estimated revenue of US$5 billion will come from the same rapid growth in the revenue of film peripheral products, it is only a matter of time before Blockbuster's continued expansion, scraping half of the video tape market share is just a matter of time.

Once any company has more than half of its market share in a certain industry, it must consider finding new growth points for performance.

On the original timeline, after becoming an oligarch in the industry, Blockbuster also tried to expand diversifiedly, enter the record field, operate cable TV, and even opened a theme park, which ended in failure.

Today, Blockbuster and Simon remember the bloated and inefficient videotape chain giants are completely two companies.

However, as Blockbuster's existing business expansion is about to touch the ceiling, it is still necessary to find a brand new growth point.

Entering the field of film and television production and distribution is the next expansion route that Simon personally determined for Blockbuster.

At the same time, Blockbuster provides a new distribution channel for small and medium-sized film manufacturers, which also helps Daenerys Entertainment further strengthen its control over Hollywood movie distribution channels.

"Only producing and distributing movies is only the most basic promotion for the increase in Blockbuster's revenue. Having exclusive content can not only further enhance Blockbuster's brand awareness, but also strengthen users' adhesion to Blockbuster and avoid loss. This is a win-win situation."

Inside the restaurant, Simon and Nancy Brill talk about the benefits of Blockbuster's direct entry into production and distribution.

After hearing Simon's words, Nancy Brill said: "But, Simon, the risk of making a single film is very high. The reason why many second- and third-tier film manufacturers in Hollywood go bankrupt is that they cannot see their own position and blindly get involved in the production field."

"So, why do they do this?" Simon smiled and looked at Nancy, saying: "The key is that the potential benefits of doing this are too great. Just like the new line, a homemade "Ghost Street" sold well, directly increasing the strength of this small workshop-style third-tier film company to a higher level."

"But as far as I know, the new line is on the verge of bankruptcy."

"That's because of the lack of accumulation and foundation of the new line itself, or there are also bad luck," Simon said patiently, "this is not a problem for Blockbuster. Blockbuster's current comprehensive strength is stronger than Columbia and MGM, among the top seven, and has sufficient funds."

Nancy pointed out another key issue: "The videotape channel is exclusive, and the lack of theater releases and TV broadcasts that can increase the popularity of the film has greatly limited the scale of film production by Blockbuster, and it is difficult for us to bear the production of bombshell movies."

Simon of course considered this matter and said: "So, in the early stage of the plan, Blockbuster will mainly focus on 'distribution', and by buying out the film company that has completed the copyright of the film, expanding exclusive content, and at the same time trying to invest in low-cost films. When Blockbuster's strength is further improved and has gained a foothold around the world, you can try large-scale productions. Moreover, Blockbuster personally participates in film production, but it does not necessarily have to be completely exclusive to the videotape channel. It can still be distributed in theaters and TV channels, but it is exclusive to the videotape channel."

"Actually, I'm thinking," Nancy looked at Simon and said, "Danerys Entertainment can give Blockbuster content exclusive rights when it releases its video tapes."

"I thought about doing this, too," Simon shook his head and said, "But first, Blockbuster's current strength is not enough to fully stimulate the commercial potential of a Daenerys Entertainment's big-selling video in the videotape channel. This is the most important point. Secondly, Daenerys Entertainment's current market share is already high enough. If it does, it will likely attract antitrust lawsuits from other videotape chains."

Content exclusiveness is common during the release of Hollywood movies.

During the release of cinemas, some powerful theater chains often require exclusive access to the theater distribution rights of a film manufacturer. There are countless similar cases in the video tape chain, TV network and other channels.

The problem is, the goal of Daenerys Entertainment is to be too obvious.

For example, if Daenerys Entertainment handed over the box office hit "Wonder Woman", which was sold at the box office last year, to Blockbuster for videotape distribution, not to mention whether this chain company focused on leasing business can fully release the commercial potential of "Wonder Woman", and other videotape manufacturers that cannot interfere in the fat piece of "Wonder Woman", they will definitely not be willing to do so.

It just so happened that Blockbuster is another subsidiary of Daenerys Entertainment, which gives competitors enough excuses to sue Daenerys Entertainment for suspected monopoly.

In comparison, if it is a second- and third-tier film producer, if it is a second- and third-tier film producer, it will not attract much attention at all.

There are about 500 films that Hollywood can enter theaters every year, but the actual number of films produced has more than doubled. These movies that cannot be distributed in theaters can only be distributed in videotapes or TV. There are even some film manufacturers who do not expect to release in theaters at all. They specialize in the videotapes and TV markets from the beginning. Relying on the strong demand for content in these two major fields, many small film manufacturers are also living very well.

As the conversation continued, Nancy Brill gradually realized another meaning from Simon's words, and even stopped eating, stared at the man opposite without blinking, and said, "Simon, if I guess correctly, are you trying to develop Blockbuster into the 'eighth largest' in Hollywood?"

Before the annexation of MCA, Daenerys Entertainment had basically jumped to the ranks of the eighth largest studios alongside the traditional seven studios in Hollywood.

With the completion of the MCA merger, Hollywood has returned to the coexistence of the seven majors again, but this time, it should be Daenerys, Warner, Disney, Paramount, Fox, MGM and Columbia.

In Hollywood, Daenerys Entertainment not only occupies nearly 40% of the market share in films, but also indirectly controls MGM. Although this company, under the support of Daenerys Entertainment, had a film market share of only 7% last year, it is still one of the old major Hollywood film companies.

Having controlled two major Hollywood studios and occupied such a high market share, it is simply unrealistic for Daenerys Entertainment to further expand by abolition of other studios.

Even if the Westeros system has a deep interest relationship with the incoming Bill Clinton, the threshold for antitrust cannot be crossed.

Therefore, if you want to expand further, you must find another way.

Eliminating second- and third-tier film manufacturers and weakening other studios is a strategy Simon has set before.

Further expanding Blockbuster is another Simon's layout.

First of all, even though Blockbuster's current strength is no less than some Hollywood studios, and there is no shortage of room for further expansion. Secondly, the superficial attributes of videotape chain companies can make competitors and federal regulatory authorities ignore the company's threat.

Finally, there is another point that Netflix in the original time and space completed its counterattack against Hollywood as a video rental company, becoming a super media group tied with Disney.

Netflix's rise can provide many references for the further development of Blockbuster.

If the Internet wants to enter the streaming era, even if the Internet industry in this time and space has exploded early, it will take at least ten years.

Therefore, it is definitely not possible to completely copy the Netflix model, and Blockbuster must also open up a development path that belongs to itself.

Several other major Hollywood film companies have already suffered from Daenerys Entertainment's edge. Simon tried to build Blockbuster into Hollywood's "eighth largest". The fewer people know this kind of thinking, the better. He did not expect that after just talking about his own ideas, Nancy could learn from it and directly see through his intentions.

Seeing that Simon didn't answer, Nancy knew that she had guessed it right.

The eighth largest.

Daenerys Entertainment has occupied 40% of Hollywood's market share. Due to its close cooperation with MGM, Nancy also knows that this originally ruined film company has stranded its signature 007 series, and its recovery in the past two years has begun to accelerate. At least in the past year, MGM's share in the local box office market has exceeded that of Colombia and Paramount, and further development is just around the corner.

Having controlled two major Hollywood film companies, the Westeros system's expansion in Hollywood has obviously reached an extreme.

Neither federal government departments nor competitors can allow the Westeros system to continue to abide by other large studios.

Under such circumstances, an ambitious guy actually thought of such a different way.

Develop a powerful videotape chain company into Hollywood's 'eighth largest' that can compete with other major studios.

However, this kind of speculation was generated and confirmed from Simon's silence. Nancy Brill did not have any emotion that any guy shouldn't have done so, but instead felt a little excited.

But, can a videotape chain really develop into the eighth largest in Hollywood?

He stopped asking a question tactfully. Nancy had completely forgotten to eat. She looked at the opposite side with her little face slightly raised and said, "In the early stage, she accumulated exclusive resources by purchasing independent film copyrights, and participated in small film productions. Later, she began to invest in blockbusters and counterattack the theaters and TV markets. This development route seems very attractive, but Simon, what about?"

Simon said with a smile on his lips, "If we can do this, it will be a pioneering move for Blockbuster. The future will be of course to talk about it in the future. You must know that the world has been changing all the time. TVs in the 1950s and video recorders in the 1970s have brought fundamental changes to Hollywood. Now it is the 1990s. I think there will definitely be something that changes personality in the future."

"internet?"

"Well, I have to say, you're so smart."

Some information about Blockbuster Online Platform emerged in Nancy's mind. In the past, Blockbuster Online achieved revenue of over 100 million yuan. Although it only accounts for about 3% of Blockbuster's annual revenue, this business cannot be ignored. The man opposite once described the future of the Internet to her. If he really entered an era of national Internet, the influence of the Internet platform will definitely be no less than that of the current TV network.

"I suddenly felt that I should buy some more American Online and Cisco stocks."

Simon smiled and said, "How many in your hands now?"

"Not less than $10 million," Nancy glanced at a guy opposite and said, "The salary you give me is far less generous than Amy."

“Amy is equivalent to one of the founders of this company, and she has received very little,” Simon shrugged, “But if you need money, I can lend it to you.”

Nancy leaned forward slightly, with a little joke in her tone: "Do you need to return it?"

Simon admired the delicate little face opposite the dining table, and his voice was teasing: "It's okay if you don't."

Nancy immediately sat upright, and looked at the female assistant who had been quiet beside Simon, and began to complain: "Jenny, he is flirting with me."

The female assistant gave Nancy a blank look, glared at the guy beside her, but didn't say anything, and quickly lowered her head and continued to eat quietly.

Seeing that Nancy's complaint was invalid, Simon raised her chin provocatively.

The small senior executive said without hesitation: "Treating me $20 million is calculated based on a 5% annual interest rate. I won't take your stuff in vain."

Simon nodded: "No problem. Since you want to tell the rules, this money should be mortgaged, right?"

"Well, I'll mortgage myself to you."

"Very good, I'll add another 5 million to you."

“…”

Nancy couldn't help but roll her eyes.

After lunch, Simon handled some trivial matters and set off again to the east coast.

Tomorrow is January 20, the inauguration of the new President Bill Clinton. Simon does not intend to appear at the inauguration ceremony, but plans to participate in some cocktail parties after the inauguration ceremony.

And, this is just a side.

The business is about AOL.

In the new year, AOL will promote another multi-billion dollar ASDL network construction plan. Simon is rushing to AOL's East Coast headquarters to participate in the final discussion of the plan.
Chapter completed!