Chapter 306: Meat at the Mouth
When it comes to the future of the two companies, it is of course impossible to reach an agreement quickly, and the initial contact did not last long before it ended.
Reed Hastings and Mark Randolph took the initiative to leave.
"Mr. Anderson. Reed Hastings shook Ronan's hand goodbye: "I need time to think about it. β
Ronan smiled and said, "If you think about the result, please give me an answer as soon as possible." He said casually: "Time waits for no one, and if I can't cooperate, I will consider implementing the original plan as soon as possible." β
Reed Hastings said: "I'll let you know as soon as I think about the results. β
Ronan politely said, "Hope is good news." β
Reid Hastings and Mark Randolph left the business club, hailed a taxi, and returned to the hotel where they were staying.
Back in the hotel room, Mark Randolph hurriedly asked, "Reed, what do you think?"
Instead of answering, Reed Hastings asked, "What about you?"
Mark Randolph said directly: "Ronan Anderson doesn't value Netflix at all, he doesn't treat Netflix as an independent company, if you cooperate with him, Netflix will only become a department of his company!"
Reed Hastings was silent because Mark Randolph was right, and Ronan Anderson meant it both inside and out.
"Do you really want to work with Ronan Anderson?" Mark Randolph already sensed that.
Reed Hastings didn't hide it from his friend, saying, "Is there anything else we can do?"
Venture capital could not be pulled, and the resources in his personal hands had been used to the limit, and his contacts with several companies such as Pepsi were not only fruitless, but even ridiculed and ridiculed.
Mark Randolph pinched his waist and kept pacing, saying: "Turning Netflix into a supplement to the peripheral channels of the movie, we are not responsible for Netflix!"
"Reed, Ronan Anderson doesn't pay enough attention to Netflix, which means he can't invest enough resources in Netflix," he reminded. β
"I know that, and I know how you feel. Reed Hastings shook his head with a wry smile, "Mark, have you thought about my situation?"
Hearing this, Mark Randolph couldn't help but stop, he put all his energy and entrepreneurial enthusiasm on Netflix, and Reed Hastings paid no less than him.
Netflix has been able to hold on until now, and the financial pressure is all on the shoulders of Reed Hastings.
"I'm sorry, Reed. "Mark Randolph is a bit of a stagnant.
Reed Hastings shook his head and said, "It's okay. He sighed, "Mark, if you can't find funds or help from other companies, how long can Netflix last?"
Marc Randolph, who is in charge of the day-to-day operations, is naturally clear: "At the most in February next year, you have to be lucky. β
Reid Hastings looked heavy: "The collapse of Netflix is the most irresponsible for the company and us." β
Mark Randolph was speechless for a moment.
Reed Hastings whispered, "Let's talk about it a little more, there's still some time." β
On the other side, Ronan and GarcΓa Rodriguez returned to Embassy Pictures.
"Will they accept our terms?" asked Garcia.
Ronan said: "As things stand, there is no better option for Reed Hastings. β
Garcia nodded, and once again couldn't help but ask the doubt in his heart: "Internet video rental, is it really the future of DVD rental?"
"This market has a bright future. Ronan said simply: "Now that the pace of life is getting faster and faster, many convenient consumption patterns will inevitably replace traditional consumption methods." β
Garcia didn't ask again, and as an executor, the boss made decisions and did his best to execute them.
Ronan advised, "You go and contact the relevant institutions to conduct a market value assessment of Netflix." β
"Okay. Garcia replied.
Ronan returned to his office at Embassy Pictures and made a phone call, asking people to keep an eye on Netflix during this time, and if there was a competitor or abnormal situation, he must be notified as soon as possible.
Netflix is already meat in the mouth, and it must not be let go.
Now is the best chance to do so, and if Netflix survives the toughest of the moments, it will surely attract the attention of other investors.
Ronan remembers that Netflix turned a profit for the first time in 2002.
Of course, Netflix still had a long period of loss, but in 2002, it showed people the unlimited potential of Internet film and television rental.
As for Netflix's later famous self-made drama business, it was a more distant matter.
However, Ronan is already considering that when the hardware conditions permit, he may be able to develop this business in advance.
There is no need for Netflix to shoot it itself, so Netflix can entrust Shahai Entertainment to shoot and produce, and then play it on Netflix's platform.
In this way, Netflix can also get involved in the Internet video business in advance.
In his previous life, this piece of the cake was also huge, and it was the work that Ronan has been engaged in since then.
Ronan is also considering whether the turtle can be combined with Netflix? After all, there is no fundamental conflict between the two businesses.
Of course, this is just an idea that stays in Ronan's head, and whether it can be implemented depends on the actual situation.
In the future, Netflix will inevitably become a streaming company, offering exclusive and excellent series, movies, documentaries and short films on a global scale.
Later, Netflix's main revenue came from monthly subscription fees, which were mainly based on streaming media business, while the original main business DVD rental has been declining under the impact of the Internet wave, and its revenue has been shrinking.
This has led to Netflix's high investment in content production, which has brought serious financial pressure, and has even been called "blood loss".
At that time, Netflix's biggest burden was also its high investment in film and television production.
One of the characteristics of film and television production is that it initially invests a large amount of cash to produce content, then distributes the content through various channels, and gradually recovers costs and realizes profits.
Due to the way the financial statements are prepared, this expense is not charged to the income statement, but is included in the content assets after the production is completed and then amortized on an annual basis.
Financial "blood loss" has always been one of the main reasons for Netflix to be shorted, and the specific "crimes" include: revenue growth cannot keep up with cost growth, international departments are losing money and making money, operating profit margins are declining, cash outflows are expanding, and content investment is increasing faster than user growth.
According to Ronan's idea, if Netflix joins the Relativity Entertainment Group, this situation can be greatly improved in the future, compared with the status of a novice in the Netflix film and television industry in the previous life, if the production is handed over to Shahai Entertainment, it will be more conducive to the optimization of resources between group companies.
Netflix's biggest production problem will inevitably be solved to a certain extent after combining with an established production company.
As for the natural uncertainty in film and television production, at least for the past two decades, it will not be a problem for Ronan.
In the previous life, Netflix produced a lot of high-quality productions, but there were actually many failures.
For example, "Marco Polo", Netflix's self-made drama with the title of "the most expensive online drama in history", suffered an extremely painful failure, bringing huge losses to Netflix.
There were also some later Marvel episodes that had to cut their stops because they were too far from expectations.
The drag in this regard can be minimized in Ronan's hands.
In addition to Netflix, Ronan has other plans on the Internet, which is why he has not used his Relativity Entertainment funds.
One of the plans is the media industry, the traditional media industry has long been carved up, and it is too difficult for latecomers to enter and grab the cake, so Ronan's goal is Internet media.
And it is a media website based on Hollywood and star film and television.
Ronan is working on a plan for this, but if he wants to implement it, he will have to wait for the Netflix affair to come to an end.
In contrast, the Netflix channel is more important.
Even, after Netflix combined with the traditional film and television production companies in his hands, Relativity Entertainment was able to take a different path from the Big Six.
There are both traditional channels and new channels, and they are not like DreamWorks, which are rigidly pressed on the distribution channel.
After sorting out the situation about Netflix a little, Ronan then went to the theatrical distribution department of Embassy Pictures and asked Thomas about the film distribution in 2002.
Due to Ronan's covert interference, Embassy Pictures did not release a single film in the second half of 2001, and the distribution plan was concentrated until next year, starting from February next year, "Resident Evil", "Tales of the Night", "Death is Coming 2", "Hurricane Rescue" and other films will be released one after another.
In addition, the production of sequel films such as "Human Removal Project 3" and "Fatal Curve 2" will also be on the agenda.
In terms of production, the top priority is "Spy 2" and "Pirates of the Caribbean", the former will start filming early next year, and the latter is well under the auspices of George Clint.
Then there are the TV series, the crew of "Grey's Anatomy" has been established, Ronan is the first producer, and Shonda Rhames is the second producer, but the crew is basically in charge of Shonda Rhames, who is not only the screenwriter, but also directs the pilot series.
Ronan certainly won't leave the crew entirely in charge of one person, and Andrew joined the crew as a production manager.
Since CAA has already helped contact ABC TV, as long as the pilot broadcast can be passed, the broadcast of "Grey's Anatomy" on ABC TV is not a problem.
This is also the benefit of working with a big brokerage firm.
Unfortunately, the hardware conditions of the Internet are not very suitable, and Netflix currently has no business in this area, otherwise it would not have entered the broadcast channels of TV stations.
Ronan knew that he was thinking a little too much, and in the middle of the afternoon, he left work early and took a Bentley Elegance to Los Angeles International Airport to pick up Anne Hathaway in person.
Since the departure of 911, Anne Hathaway has finally returned to Los Angeles.
./book_
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