Jeffrey Katzenberg is still very capable, he has already negotiated with Discovery Channel and TBS Channel to broadcast cartoons and expand cartoon production...

It also signed a partnership agreement with Netflix to co-produce more than 300 hours of animated series.

These are all peripheral developments!

According to DreamWorks Animation's financial report, the proportion of revenue contributed by TV animation rose to 25% in 2009, up from 15% in 2008.

At the analysts' conference, Katzenberg also attributed the key to the turnaround to the TV business.

He's so motivated right now!

However, Hollywood's system dictates that there are not many opportunities for new entrants

An outside investor who knows about Hollywood will find that there aren't many places they can invest in.

Hollywood's major film companies Disney, Universal Pictures, Paramount, Warner Bros., and 21st Century Fox, are either too large or have long been bought and acquired by media groups such as Viacom and Time Warner.

In the past few years, most of those acquired are content manufacturers, Marvel, Lucasfilm, and Studio8, which was invested by Fosun International this year, and these small companies have basically found owners.

Hollywood is the system of big studios, and distribution companies are at the top of the food chain, always one step ahead of foreign investors.

There aren't many companies like DreamWorks Animation that are good at manufacturing IP, and their spin-off and distribution capabilities need external supplements, which also means that it is more likely to be eaten by Hollywood's own big studios.

DreamWorks Animation is doing well at the box office, but it's a headache for competitors to go strong!

Pixar and Disney are perfectly integrated, "Lightning Dog", "Guinea Pig Squad", and "Tangled" Although the box office is not a big hit, the reputation is very good, and everyone can see that Disney has gathered good energy!

Jeffrey Katzenberg was in a hurry, but it was useless to rush...

Hollywood would prefer to see DreamWorks Anime go bankrupt...

In order to ensure the capital chain, he thought of selling the development rights of the surrounding areas according to the state.

Zhang Junsheng is not a fool, there is no need to guess, he knows the price offered by Jeffrey Katzenberg, he definitely can't accept it!

He would prefer to take over DreamWorks Anime himself!

"Jeffrey, I have two ways to work together, would you like to hear about it?"

Jeffrey Katzenberg shook his head: "... No, I don't really want to sell DreamWorks right now!"

Although "Shrek 4" did not meet expectations, it sold 700 million US dollars worldwide, which still gave DreamWorks a lot of blood, and DreamWorks is not on the verge of bankruptcy...

Well, since you don't want to sell, forget it!

However, Zhang Junsheng still chose to take a stake in DreamWorks, 300 million US dollars, becoming the second largest individual shareholder of DreamWorks, and at the same time also signed a preferential merger and acquisition clause with Jeffrey Katzenberg - once Jeffrey Katzenberg wants to sell DreamWorks, Zhang Junsheng can buy it as soon as possible...

Of course, the signing ceremony had to be carried out later, saying goodbye to Wen Ziren and Harris, and Zhang Junsheng got into the car.

Netflix is going to hold a shareholder meeting, and he has to go to Netflix headquarters...

……

The time for Zhang Junsheng to enter the game is very appropriate, and Netflix's market value is currently only $4.5 billion!

Netflix's initial business model was not to open physical stores, but only to lay out online to achieve asset-light operations.

In the DVD era, DVDs are mailed directly to customers, eliminating the trouble of customers picking up their parcels.

No late fees, no expiration date, free postage, three free membership services, only $19.95 per month!

Why?

It is said that it was because Reed Hastings once rented a DVD, and because it was raining, he was ten minutes late for the return of the disc, and then he was forced to pay a late fee of 10 yuan!

He felt that BesTV was simply too domineering!

It is also true that at that time, Blockbuster was the No. 1 movie rental chain in North America, with more than 9,000 stores worldwide, and had cooperative relations with the Big Six Hollywood!

Then, in February of this year, Blockbuster declared bankruptcy...

In fact, before 08 years, Netflix's main means of profit was DVD rental...

However, after the outbreak of the financial crisis in '08, more and more users chose to watch videos at home.

Hastings is keenly aware that online programming will be a major trend in the future. So he made a decisive move, improved the measures, and made new media the target of Netflix's new round. This move was strongly resisted by the company's top management, and not only did the number of users lose a lot in the early days of implementation, but the company's stock price also plummeted.

Plummeted by 82 percent...

The reason why Zhang Junsheng invested in Netflix is very simple, he knows how terrifying Netflix will be in the future!

And the most important point is that Netflix is a big part of his layout to open up the North American industrial chain.

Several well-known TV stations are basically controlled by giants, and if Dingfeng wants to expand its TV business, it can only use the Internet, but it is difficult for Internet video platforms to make profits!

Then invest in Netflix!

It just so happens that now Netflix is in a predicament...

In addition to the loss of users, the most important thing is that Netflix has touched the cake of others by changing from DVD rental business to online streaming business.

In the past, various big film and television companies, content providers and Netflix were upstream and downstream, and Netflix could help them sell DVDs, and film and television companies were of course very welcome.

Once Netflix starts broadcasting content on its own, the interests of these big film and television companies will be affected - the big six Hollywood companies have their own TV platforms, and this thing is in direct competition with Netflix!

As a result, these content providers have increased their licensing fees to Netflix, with an average increase of 10%...

Unlike domestic video sites, Netflix has no advertising revenue, and all revenue sources are paid by users.

If you want to keep your revenue growing, you either need to raise the price or increase the number of subscribers.

If you want to increase the number of subscribers, you can only rely on content to make stickiness.

Netflix spends a lot of money on content procurement every year in order to attract new users and retain old users with good content.

Last year, Netflix spent about $1 billion on content — and it has a market capitalization of just $8 billion!

This one is already dangerous!

However, the purchase price is high, and it is often not possible to obtain exclusive broadcasts.

For example, the purchase cost of the American drama "Mad Men" is $1 million per episode, and this drama has a total of 92 episodes, and the cost of buying all of them is very high. According to the agreement at the time, it needed to be broadcast on AMC radio now and could not be launched on Netflix the next day.

This is obviously not cost-effective, and without the classic episodes, users can easily move on to other platforms.

This is also the confusion that many companies will face, why should users stay on your platform instead of going to other homogeneous platforms?

Reed Hastings is sensitive to the need for content on Netflix, and it's enough to attract new customers!

This is also the main reason why he agreed to Zhang Junsheng to buy shares, Zhang Junsheng represents Summit Entertainment!

Therefore, today's shareholders' meeting is actually held for Zhang Junsheng!

.。 m.