Heads Up Hollywood

Executives from Silicon Valley know Netflix's situation best.

In the past few years, the group has invested a lot in Netflix. Not only has it established 30 distribution storage warehouses across the country, it has even spent huge sums of money to buy the imdb website, the world's largest film and television database.

Netflix’s foundation is so good, is it possible to turn Blockbuster over Netflix through a simple price war?

This is too underestimated the Internet technology!

The gap between traditional enterprises and Internet enterprises cannot be bridged by the price difference of 2 dollars!

"What? Do you have different opinions?" Tang En glanced at them.

Kevin Turner outlined: "Internet companies are very different from traditional companies. Although the number of Internet users is limited, the group convergence is very obvious. When a user discovers a new Internet service, Perhaps the next day, netizens from all over the world will flock to watch the excitement.”

Bill McNick said in surprise: "Isn't Blockbuster also launching an online subscription service?"

Kevin Turner said with a smile: "User experience is an important indicator for distinguishing advanced or not within the Internet, which makes the future eb2.0 era a matter of course. The same is true for Facebook. The boss said that before 2010, the Facebook website is not allowed to pursue Profit, everything is based on user experience, cultivating user habits, this is the thinking mode of Internet eb2.0.”

Barry Diller pondered slightly, "Netflix has a solution?"

Kevin Turner: "At the end of the day, Netflix is ​​a technology company!"

Reed Hastings sat upright and explained this, saying: "Netflix has been online for 6 years, and our user experience is far from comparable to Blockbuster. The user experience comes from Netflix's industry-leading algorithm. and data analysis.”

After a pause, he continued: "That's right, there doesn't seem to be any difference between renting a movie on Blockbuster and Netflix, and even... if Blockbuster introduces the monthly subscription system, there will be more renting movies on Blockbuster. It’s cheaper. However, Blockbuster provides services for known results, while Netflix...can provide judgments for the unknown world!”

This sentence immediately aroused everyone's curiosity.

"Oh? Specifically? Known and unknown, what do they represent?" Robert Iger is mainly in charge of the business of film, television and theme parks, and he doesn't know much about the Internet business, so he is particularly interested.

Reed Hastings said: "When a user goes to Blockbuster to rent a movie, he must first have a concept in mind. What movie does he want to watch? If he doesn't have a clear idea in mind, then he can choose from thousands of movies that match the movie. It’s very difficult to make a movie of your heart. Blockbuster can’t solve this problem, but Netflix can!”

"Netflix has spent 4 years carefully building a set of video recommendation algorithms, which will calculate the user's personal taste and aesthetic taste based on the user's viewing records, and then select the most suitable and most suitable video from the huge movie library. Movies that meet his personal appreciation taste are recommended to users. This greatly solves the anguish of users falling into infinite choices because of movie panic.”

"In addition, we also rely on the imdb website, the largest film and television database. We can provide users with the most detailed video information, so that users can further confirm according to the imdb website while enjoying the recommendation algorithm service. This will greatly improve Reduce the time wasted by users watching videos that do not meet their taste."

"Blockbuster has a huge library of movies from all over the world, but they can't push every movie to users. This is a huge waste of resources. However, Netflix is ​​different. Netflix is For technology companies, we have precise algorithm analysis, we have huge user data, we can conduct in-depth research and make judgments on user tastes.”

Robert Iger, Bill McNick and others looked at each other.

Is this the power of the Internet?

Blockbuster wants to launch a monthly subscription policy to challenge Netflix.

As long as the price is low enough.

However, the technology and algorithms behind Netflix, the huge movie recommendation system, and the imdb video database are the true core of Netflix's survival!

This is the mountain that Blockbuster cannot overcome at all!

Regarding the Internet business, among the executives of the New Universal Group, except for Kevin Turner, almost no one has a say.

One exception—Dawn Walker!

"Very good!" Tang En smiled, appreciating his eyes, and applauded first after listening to Reed Hastings' speech.

Soon, there was a warm applause in the meeting room.

After the applause, Tang En made a supplementary speech and praised: "Yes, I have said long ago that Netflix's business is video rental, but its foothold is Silicon Valley! Anyway, this is a technology company! Reid , you did not disappoint me."

"Thanks."

"Remember, never stop pursuing technology! Now, Blockbuster is about to launch a monthly subscription system for members. It is conceivable that in the next two or three years, Netflix will be under great pressure from competition. But the investment in research and development funds, absolutely It cannot be reduced! User-based technology companies, in the final analysis, are the integration of user information and the analysis of all data. The future Internet must belong to the era of big data!"

"Big Data?"

Listening to this trendy word, Kevin Turner and Reed Hastings' eyes lit up, and they showed a thoughtful look.

Tang En waved his hand and said, "We will discuss the matter of big data in depth at the Internet conference in the future, and solve Netflix's problem first. Barry, what do you think in light of the current situation?"

Barry Diller pondered for a while, and asked: "Kevin, Reed...you know the situation of Netflix best. I just want to ask, if Netflix's monthly subscription price is higher than Blockbuster, will we Lose market competitiveness?"

"Won't!"

Kevin Turner blurted out without thinking.

Reed Hastings said: "Netflix's high-quality service is enough to attract users to pay a higher price."

Barry Diller had also managed Internet companies before. He knew the stickiness and attraction of technology to users, so he nodded, "If this is the case, we can prepare with both hands."

"Tell me."

"The price reduction is certain. The monthly subscription price of 20 dollars... is far from Blockbuster's price of 16 dollars. We can initially reduce the price to 18 dollars to make up for some of the disadvantages. In addition, we will launch in-depth cooperation between Netflix and the film and television entertainment department. Prepare for the price war that may break out in the future. In the event of an accident, the Film and Television Entertainment Department must subsidize Netflix in the form of commercial advertisements as quickly as possible."

Barry Diller's point of view has been recognized by everyone.

The price reduction of only US$2 can not only avoid the rapid loss of Netflix users due to the large price gap;

With a monthly subscription price of US$18, as long as the number of Netflix users can be maintained at the order of 5 million, it is enough for Netflix to be responsible for its own profits and losses.

Of course, all eyes were on Tang En.

Tang En's face was calm, and he said in a deep voice: "Bestida's launch of the monthly subscription policy is tantamount to giving up a large part of the late payment fee income; because of the blockade of New Universal and Disney, the normal rental business of Beststar is also declining in performance; plus Being split by Viacom, Blockbuster is burdened with huge debts, and the annual interest repayment is 350 million US dollars. If Blockbuster’s monthly subscription system cannot make rapid progress in a short period of time, their cash flow, There are bound to be big problems!"

As soon as these words came out, everyone's expressions changed.

This big boss is going to be tough to the end!

Barry Diller's policy of moderation can reduce its own losses, and at the same time use Netflix's own advantages to play a role in sanctioning Blockbuster.

Listening to Tang En's tone...it seems that he is not very satisfied.

"Twain, you mean?"

Barry Diller opened his eyes wide, looking at the determined young man sitting on the main seat, with indescribable emotion in his heart.

After all, young and high-spirited!

Tang En said coldly: "Blockbuster was split by Viacom. I even thought about talking to Disney to cancel the ban on Blockbuster. But I didn't expect that they would strike ahead of time, and the target would be Netflix! If that's the case, Don’t blame me for being ruthless! Netflix’s own advantages, we must persist, and at the same time, we must also fight the price war! Not only must we fight, but we must fight hard to the end!”

These Americans have never seen the subsidy war.

Tang En had seen it too many times in his previous life.

In the process of subsidies, there will indeed be a great loss of interests.

However, as long as you defeat your competitors and achieve a monopoly on the market, you can reap several times the profits.

He is not even afraid of Redstone's Viacom, but would he be afraid of John Antioco's Blockbuster?

What a joke!

"So you're saying...Netflix can't just drop $2?"

When Tang En lost his temper, it meant that Barry Diller could still say a few words.

"That's right! Isn't Blockbuster going to launch a $16 monthly subscription policy? Well, they can afford it, and we can afford it even more! As long as the legal department approves, we will also launch a $16 monthly subscription policy!"

Dunn had already made up his mind.

Since Blockbuster dared to make a move, he would not be polite.

Blockbuster in the previous life went bankrupt in 2010, Tang En will definitely advance this time by a few years!

Try to end the battle in 2005 or 2006!

Kevin Turner frowned, and said cautiously: "Boss, if we implement a $16 monthly subscription, Netflix will lose an estimated $100 million every year in the future..."

Tang En waved his hand, "Don't talk about 100 million US dollars, since it's a price war, even if we lose 1 billion US dollars every year, we have to persevere!"

Reed Hastings seemed to appreciate Tang En's strengths. When everyone else looked complicated, his expression was full of smiles, "If Netflix has 5 million users, it will indeed lose 1 million dollars a year. However, after the price cut, there will be a wave of user growth. If Netflix users reach the order of 15 million, even if the monthly subscription price of Netflix is ​​only 16 US dollars, it can be self-financing.”

Tang En's heavy face also showed a smile, and he uttered a word: "Okay!"

Please remember the first domain name of this book: . Nine Heavens Emperor: