Heads Up Hollywood

The market competition between Netflix and Blockbuster is far from over.

But people with a little brain can basically see the development trend.

The giant Blockbuster is heading towards death step by step.

Netflix, a new company, is rising unstoppably!

Everything is just a matter of time!

Two years ago, who would have dared to imagine such a situation?

At that time, Blockbuster was valued at 36 billion U.S. dollars! It is a major trump card of Viacom, and a powerful weapon for Redstone to monopolize Hollywood in disguise!

The results of it?

Two years later, Blockbuster was split by Viacom, and its market value had fallen below $10 billion.

Seeing him building a tall building, seeing his building collapse.

Back then, the little-known small website Netflix, which was even facing bankruptcy and couldn't survive, rose rapidly after taking refuge in Tang En. It seemed that there was a power of sunrise and morning light, changing the world and calling for the dawn.

Although the competition between Netflix and Blockbuster is only a small market in the disc rental market, the confrontation between emerging Internet companies and traditional companies is so fast and fierce that the entire United States is paying attention to it.

Now, Tang En put forward a new point of view - if Netflix competed with the most popular and popular Starz TV station at the moment, what would the result be?

One is an emerging Internet company, and the other is the traditional TV industry.

Could it be that……

Tang En watched the faces of everyone in the conference room change, and he said calmly: "I'm not afraid to tell you that if there is such a day, Starz TV station will die without a place to die! If you hurry up and transform, and focus on the Internet business , maybe... there will be a little bit of living space."

The hbo in the previous life is a living example.

After Netflix launched "House of Cards" and started the production of self-produced dramas, the number of users, revenue, and influence of hbo have all plummeted.

It was not until the launch of hbo_no and other streaming media platforms, and the maintenance of conscience dramas such as "Game of Thrones" and "Western World", that it barely maintained the downward trend.

But there is no longer the possibility of growth.

"No way?"

Barry Diller lost his voice in horror.

"No?" Tang En shook his head disapprovingly, "If there is such a day, let alone Starz TV station, the entire United States, all cable TV stations, will be severely impacted! Whether it's ESPN or MTV, even us All of the U.S.A. are at risk of going bankrupt!"

Tang En's judgment has always been accurate.

Although many people disagree with his remarks, he is Dunn Walker!

Based on his understanding of the Internet, TV, and film and television entertainment, maybe... this is really possible.

"Doesn't that mean...Netflix will impact the entire TV industry?" Jeff Zucker looked ugly.

Tang En said in a deep voice, "That's right."

Barry Diller questioned: "Then why did we buy Discovery?"

Tang En said: "First of all, the TV industry has a very strong ability to make money. Even if it encounters the impact of the Internet, it will take decades to truly end. This period of time is enough for us to earn back our investment. Besides, wait After the network speed bottleneck is broken and the Internet streaming business rises, there are still three types of TV stations that will be guaranteed to survive.”

"First of all, there are free TV stations like nbc, abc, and cbs. There are also fees for streaming media. Free products are competitive at any time. Furthermore, it is the strategy I created for Starz TV to launch high-quality content! In the final analysis, whether it is streaming media or TV, what you watch is content. As long as Starz TV can have an absolute advantage in content, it will naturally have a pure land for survival."

Robert Iger, Bill McNick, Jeff Zucker, Chris Albrecht and others suddenly realized.

They thought that Tang En firmly established the high-quality line of Starz TV station, which was a firm implementation of the "explosive style strategy". Facts have proved that it has indeed achieved great success.

But he didn't expect that behind Tang En's layout, there was such a deep intention.

This is one step, three steps!

Bill McNick's view of himself in his heart suddenly became a little loose.

Tang En's business mind is so clear, and his strategic logic is so clear, questioning his strategy... Could it be wrong?

In any case, Netflix's success is indeed impressive!

Not only that, but Blizzard seems to be following in the footsteps of Netflix and rising strongly!

The large-scale online game "World of Warcraft" launched by Blizzard is about to start its closed beta in North America in two months. Will it really explode in the United States?

Tang En ignored everyone's admiring expressions, and continued: "The third type of TV station that can withstand the impact of the streaming media business is the Discovery Communication Channel. Of course, it doesn't mean that it will be as stable as before, at least it will not be damaged. That’s so big. The average daily ratings of the Discovery Channel in the United States is less than 0.6%, which is a disadvantage and an advantage to withstand the impact of streaming media in the future.”

"The United States is the forefront of Internet development. Relatively speaking, Europe is far behind. Of course, it also includes South America, Africa, and South Korea, Japan, Hong Kong and Taiwan. In these countries and regions, the vitality of TV stations is still strong, and The main profit model of the Discovery Communication Channel is to make small profits but sell quickly, and spread it all over the place.”

"Of course, what I'm talking about is the new operation strategy that we will implement after acquiring the Discovery Communications Channel. With this kind of thinking, the Discovery Communications Channel can achieve...annual profit within six to seven years. $3 billion!"

Tang En's bold words almost made everyone's jaw drop in shock.

Is this too exaggerated?

The estimated cost of New Universal's acquisition of Discovery Communications... is $3.5 billion.

But Tang En said that the annual profit of the Discovery Communication Channel can reach 3 billion US dollars in six years... Isn't this the same as picking cabbages?

Jeff Zucker repeatedly echoed: "I agree! If the potential of the Discovery Communication Channel is really brought into play, its profitability will be no less than that of large public television networks such as abc and nbc. Don't forget, abc is also good, cbs, Regardless of NBC, the audience they are targeting is the American audience, while the user base of the Discovery Communication Channel is the whole world!"

Such a beautiful corporate blueprint melted away the cold water of Bill McNick's initial questioning remarks, and the atmosphere in the conference room became lively again.

At this time, Tang En can truly explain his emerging Internet thinking.

"Okay, next, let's talk about the Interactive Entertainment Department."

Tang En looked at Bill McNick, and found that his face was very embarrassed, showing a shameful expression.

Tang En ignored it and continued: "The traditional economic model believes that companies must make profits in order to be recognized. This is true, but it does not conform to Internet thinking. What is Internet thinking? It is an investment in imagination! Emerging economic models , is to use imagination as the foundation, constantly explore, and constantly expand the boundaries.”

"During this process, it is normal to encounter obstacles frequently. During the bubble crisis in the past few years, thousands of Internet companies went bankrupt. However, this does not mean that the thinking of Internet innovation is wrong. New Global Group is A company based on film and television entertainment, but we must not fall behind on the road of imagination. Otherwise, Blockbuster’s today may very well be New Universal’s tomorrow!”

This is not alarmist talk.

After the birth of emerging media companies such as Netflix, Google, Facebook, and Amazon, traditional media companies have been severely impacted.

Viacom is dead, News Corp is dead, Time Warner is sold off.

Disney and Comcast are struggling to survive, and both have launched a series of large-scale asset integrations in an attempt to survive.

Disney acquired Twentieth Century Fox for more than US$70 billion, and Comcast also offered a sky-high price to invite the European TV giant Sky TV Network for a merger...

To put it bluntly, it's just hugging to keep warm in the cold winter.

The meeting room was quiet, just listening to Tang En expounding his ideas——

"For example, let's talk about Amazon. Amazon has been on the market for so many years, and it loses money every year. Every year, it needs to raise funds or issue bonds. According to traditional business logic, such a company should have closed down a long time ago. Right? Even if it doesn’t go bankrupt, it’s still struggling, on the brink of death.”

"But actually? Now Amazon has a market value of more than 20 billion US dollars! After passing through the bubble crisis, Amazon's stock price is rising. Why? How can Amazon get the firm approval of investors and the market? The reasons are very Simple, I've said it, it's an investment in imagination!"

"Amazon spends a huge amount of R\u0026D expenses every year. I am a shareholder of Amazon, so I know some data. This year, Amazon's R\u0026D expenses are 4.7 billion US dollars, which is three times ours! They are exploring e-commerce technology, machine learning, Emerging businesses such as unmanned vending, drones, artificial intelligence, and rocket launches.”

"Of course, these businesses may not all be successful, but these are imaginative projects that can change the world! As long as one of them is successful, it will support Amazon's future heavy business. It can be said that if one day Amazon gives up If you choose profit in pursuit of imagination, then the growth of market value will slow down.”

"What are investors really optimistic about? Is it the profitability of the company? No, no, no, Blockbuster's profitability is 100 times that of Netflix! But investors' confidence in Netflix has already crushed Blockbuster. Why? Investors, the investment is actually the size of the enterprise's imagination!"

Tang En paused, and said slowly: "New Universal wants to be profitable and make money. There is nothing wrong with that. However, we must not lose our imagination. The Interactive Entertainment Department represents the brand value of New Universal, as well as the hope for the future Whether it’s $1 billion or $10 billion, I will definitely push the imagination of the interactive entertainment department forward!”

Kevin Turner's eyes were moist, and tears almost rolled down.

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