Chapter 226 Do you Americans regard all foreigners as fools? (1/5)
Hollywood is often able to maximize profits through an operation mode, which is the window period.
The window period is the lifeline of Hollywood film companies. Since the development of the American film industry, they do not expect to make money at the box office. This is completely different from the current domestic film model. So why does a Hollywood movie often invest hundreds of millions of dollars, but when the box office comes out, they often lose money and are tirelessly filming?
Because there is a lot of long-term money to make in movies, it is the income from the window period.
This is called the locomotive theory. As a locomotive, movies can not make money by themselves, but they can drive the development of the film industry.
Box office revenue generally accounts for only one-third of the total revenue of a movie, and the income is the income of copyrights such as TV and post-movie products. This is the so-called "three-three system" of overseas movies.
In terms of operation, Hollywood companies divide each step of the movie into several authorization forms according to time, namely: on-demand rights, download rights, monthly viewing rights, and free viewing rights.
The time division is different for each company. It is roughly the theater window is retained for 4 months, and then each platform pays on-demand/downloads for 6-8 months, then cable TV for 1-2 years, and then enters the long-term monthly window.
The development of the American film industry has not yet fully expected to make money at the box office, because movies have a lot of long-term income, which is window period income.
From the Hollywood movie window period, it can be seen that the income of movies is mainly divided into three parts, box office revenue, DVD revenue, and TV revenue.
Many people know that Hollywood is monopoly and it is difficult for outsiders to reach in. Even if Wall Street capital enters the Hollywood circle, it is regarded as a fool's trick.
This is very similar to our country. In the later years, after capital entered the market, it was regarded as a fool at first, but later, people became smart and directly controlled the issuance, which was equivalent to cutting off the biggest advantage of these media companies from the source!
This mainly has a lot to do with the fact that our film marketization has just started for ten years and has not yet formed a monopoly media company...
The Matthew effect is not obvious enough!
Hollywood is different. Where are the five major monopolies?
It's on the release.
Major American TV stations are firmly in the hands of the five major media groups led by News Corporation, which are the owners of the five major Hollywood film companies.
Simply put, the promotional channels of movies and window period revenue are firmly in the hands of the five major media groups, which is what Hollywood is truly powerful.
Wanda acquired AMC theaters and European theaters, with a clear purpose, which is to become a theater operator worldwide.
When Wanda becomes the world's largest theater operator, it is equivalent to taking over the downstream theater market, plus Legend Pictures!
In this way, there is a possibility of an equal dialogue with Hollywood, and it may even rely on theaters to establish a global distribution network to lay the foundation for the future realization of Wanda Film and Television's global output.
However, despite the content and theaters, the two items after the window period still have to be handed over because Wanda has no TV network organization!
In this case, Wanda will still be subject to the five major factors.
US law prohibits foreign companies from owning American TV networks, and Sony can't do it either!
As an entertainment company controlled by Chinese, it is even more impossible!
But without media and television networks, it is impossible to break the five monopolies.
This problem seems unsolvable, but nothing is possible in the Internet age.
It is possible to own a media similar to a TV station!
He can make Netflix and Tingfeng a company through equity reset, which is not considered a violation of US law!
The premise is that Reed Hastings is willing to step back and give him control!
He has absolute control over Netflix. Even though Zhang Junsheng is the second shareholder, his voting rights are still not in his hands...
This is also the condition that Hastings agreed to Zhang Junsheng's investment in Netflix!
However, if it can be made, Dingfeng Pictures' three windows of movies, DVDs and TV will be in the hands of Zhang Junsheng, and coupled with the theaters acquired before, Dingfeng will open up the channels of distribution, production, screening, and later on-demand business.
In addition to the theme park, it is equivalent to directly opening up the entire industrial chain!
...
Hastings is a tough guy. During Netflix's development, several other founders of the company were gradually overshadowed by him and then kicked out of the company.
Who is a big boss not a tough character?
Which one did not step on countless corpses to the position?
So, Zhang Junsheng must make concessions!
At the shareholders' meeting, Reed Hastings solemnly introduced Zhang Junsheng, and the two made an appointment at a small bar in Los Gatos Town in the evening.
"It's hard to imagine a mogul like you would choose to have dinner in a place like this!"
“…This is the best place in Los Gatos!”
Zhang Junsheng finished the meal with a smile, and the two began to communicate.
Hastings is very confident: "After the rise of streaming platforms, the TV station business will be greatly reduced, and streaming will replace TV stations in the near future."
"Yes, I believe there will be such a day, and at most three years!"
“…three years?”
After taking the beer handed over by the waiter, Zhang Junsheng took a sip: "With the advent of the 4G era, the streaming media business will develop rapidly and TV stations will be eliminated. In the future, streaming media platforms will even replace the traditional Hollywood giants!"
"...you...you are so optimistic about Netflix?"
"Of course, I'm not optimistic about it, why invest in it?"
After a pause, Zhang Junsheng continued: "But Netflix has one of the biggest problems. He lacks content creation ability and can only fill the film library through purchases. This model is by no means a long-term business way!"
"…So, you want to acquire Netflix?"
"No, I want to merge Netflix and Tingfeng to make Netflix an online platform for Tingfeng. At that time, Netflix can make Tingfeng produce some TV series by commissioning..."
Before Zhang Junsheng finished speaking, Reed Hastings had already flatly refused: "Impossible!"
“…”
Don't be so excited, right?
The unsuccessful business of business is...
"Do you know why I wanted to create Netflix? It's because I'm tired of the company I've been acquired before. Netflix, it's impossible for me to hand over it!"
Netflix was something that Reed Hastings had started his second business and tinkered with. His first company was Pure Software. Shortly after it went public, it was acquired by Rational Software for US$600 million...
"...But if you don't have enough financial support, Netflix will be very difficult!"
Reed Hastings replied for granted: "So, I need your support!"
After taking my money, I can only enjoy a little share of the profit?
Don't even have the most basic voting rights?
After being stunned for several seconds, Zhang Junsheng asked what he had always wanted to say: "...Do you Americans treat all foreigners as fools?"
Chapter completed!