In the past year, the most important department for Tang En was the Interactive Entertainment Department.

Not only Netflix, but also Blizzard, Dolby Laboratories, IMAX, and Rotten Tomatoes are all concerned by Donn. And that's not even counting the new company he single-handedly helped create, Facebook.

However, at the end of the year, the performance of the interactive entertainment department ...... It's a bit miserable.

The other three departments have exceeded the expected goals to complete their tasks, and the benefits are quite high.

Film and Television Entertainment, with revenue of US$12.35 billion, exceeding the pre-set target by 30%, and pre-tax profit of US$3.08 billion;

TV & Media, with revenue of US$5.63 billion, exceeding the target by 12.6%, and pre-tax profit of US$1.43 billion;

Tourism, Resorts & Consumer Goods, revenue of US$2.92 billion, 16.8% above the pre-target target, pre-tax profit of US$630 million;

What about the Interactive Entertainment Department?

At the beginning of the year, the Interactive Entertainment Division had a revenue target of $4 billion......

As a result, at the end of the year, the aggregate was 12.2% lower than expected, to only $3.51 billion.

Mainly, Horton Mifflin was sold, missing that nearly $1 billion in revenue.

But the profit ...... Well, a net loss of $260 million.

Most of the companies under the interactive entertainment department are technology companies, including Blizzard, Netflix, Dolby Laboratories, and IMAX, all of which spend a lot of money on research and development.

This year, the Interactive Entertainment Division spent $1.8 billion on research and development.

After the creation of Facebook next year, R&D expenses will only increase further.

The road to profitability of the interactive entertainment department has a long way to go!

Don looked at the slightly stiff scene in the conference room and frowned, he didn't like this "mercenary" corporate atmosphere.

What happened to the interactive entertainment department in the loss?

It's paying for the future!

New Globe Group wants to become the world's top large company, ranking in the top 10 or even the top 5, and no matter how good the performance of the film and television entertainment division, the television media division and the tourism resort and consumer goods division is, there is no chance.

This kind of imaginative traditional enterprise will have steady performance growth, but it has lost the possibility of creating miracles.

Even the STA TV network with the best potential seems to have created an irreproducible legend in the television industry.

However, so what?

It's just a legend in the television industry.

Can it be compared to Netflix?

Netflix is creating a new world!

In the previous life, when HBO was in full swing, it was worth about $22 billion.

But what about Netflix? $100 billion, $200 billion is not a problem!

What kind of achievements will Netflix achieve in this life, backed by New Globe?

The three traditional business units have supported New Global's current leading position in the industry.

However, this sphere of influence is also within Hollywood and the entertainment industry.

If New Globe Group wants to break out of the blockade and become the world's top company on a par with Apple, Google, and Microsoft, the biggest reliance is the interactive entertainment department!

It's important to make money, it's important to make a profit.

However, the future is more important!

This is also the reason why Tang En has invested a lot of energy in the interactive entertainment department in the past year.

Don clapped his hands, he didn't allow everyone to look at Kevin Turner with that kind of contempt.

In the past year, New Globe Group's revenue was US$24.18 billion, and EBIT was US$4.89 billion. According to preliminary statistics, the net profit can reach $3.5 billion, which is a great achievement!"

As soon as Donn's closing remarks began, there was a round of applause from the executives in the conference room.

It's definitely a big deal!

During the year, New Globe acquired and sold some assets.

Excluding the ongoing sale of Silkwood Animation and the acquisition of Discovery Communications, New Globe Group has a deficit of US$4.28 billion in the process of asset sales and acquisitions this year.

The surplus cash flow for 2002 was $2.8 billion, and an additional $1 billion was indebted this year.

In other words, if the gross profit of $4.89 billion can really reach $3.5 billion after deducting debt interest and taxes, then it will be ...... next year The cash flow on the books of New Universal will be as much as 3 billion US dollars!

All of you here are shareholders of New Global.

$3 billion in cash flow, but it's everyone's money!

It's exciting to think about!

Tang En waved his hand, immediately poured cold water, and said: "Everyone has exceeded the task this year, but this does not mean that our cash flow pressure is gone." In the next two months, we will close two big deals, one as you know, the sale of Silklywood Animation to Disney, and the other acquisition of Discovery Communications. With these two asset transactions, we would have a deficit of $1 billion. In addition, this year, in order to acquire assets such as MGM, EMI Records, and Rotten Tomatoes, we are responsible for an additional $1 billion. $9 billion in debt may not be a big deal for New Universal, but we need to be careful!"

Bill McNick suddenly said: "The debt of 9 billion US dollars is only, and if there is no interactive entertainment department to hold back, it will not take three years to completely pay off." ”

The faces of everyone in the conference room changed slightly.

Who doesn't know that the Interactive Entertainment Department is the big treasure in Don's heart?

Sure enough, Don's face sank.

Bill McNick is the entrepreneurial old man of Down Pictures, and this year he led the film and television entertainment department to create a revenue miracle.

"Donn, as long as New Universal is based in the film and television entertainment industry, that's enough! We have movies, television, TV and music records, as well as theme parks and consumer goods businesses, which are becoming more and more important. In just a few years, we've established ourselves in Hollywood, and we've even done the biggest in the industry! We've found the right direction, and there's really no need to close our eyes anymore to draw a clear line of influence. ”

As soon as these words came out, the conference room became surprisingly quiet.

It's a little flustering.

I have to say that Bill McNick's words speak to the hearts of many people.

New Universal has found the right way forward, which is to focus on the content of film and television entertainment, and develop derivative industries with stable income, such as TV stations, consumer goods, and theme parks......

Is it necessary to continue to explore new directions at the risk of loss?

All of you here are smart people, and they all know that the reason why Tang En attaches great importance to the interactive entertainment department is to find more development paths, so that New Universal's position in the industry can stand firm and stable.

But is it necessary?

New Universal's movies have accounted for one-third of the North American box office market; New Universal's TV programs have dominated mainstream TV stations such as NBC, ABC, and FOX; New Universal's theme parks, which are becoming more and more famous and profitable, are catching up with Disney in a straight line; New Universal's TV stations, led by Starz, have created myths......

It's already very stable!

"Who agrees with Bill's statement?"

Don remained silent and looked around at everyone.

Everybody's honest.

Bill McNick is an entrepreneurial veteran who dares to question Donn to his face, but do they?

In front of Donne, even Barry Diller, he has to be careful.

Tang En smiled and waved his big hand, "Then let's put it another way, who supports vigorously supporting the Interactive Entertainment Department?" or ...... Who thinks that even if you keep losing money and keep losing money, you should promote the development of the interactive entertainment sector?"

Kevin Turner looked solemn and was the first to raise his hand.

Immediately afterwards, several directors of the interactive entertainment department also raised their hands.

Tosca Musk, assistant to the chairman, also raised her hand, as the most beautiful woman in the conference room, her hand raised and attracted the attention of many people.

Immediately, Pixar's CEO John Rust raised his hand, Bob Chapek, president of Tourism, Resorts and Consumer Goods, Roy Price, president of STA Network, Westster Cotton, CEO of Universal International Distribution, and Ted Sarandos, president of Universal Television......

Finally, Robert Iger, the third-in-command of New Globe and president, also slowly raised his hand.

Don gave his secretary, Ira Fisher, a look.

She understood, and immediately bowed her head and made a note of the people who raised their hands.

Executives who recognize the importance of the Interactive Entertainment Division are undoubtedly ambitious, ambitious, and ambitious people. Even if a few people will have speculative ideas to take advantage of loopholes, it doesn't matter.

These people will definitely be reused in the future.

Speculation is also an ability!

"Bill, what is the most important thing for you to be a business?" Don asked with a smile after making a downward gesture.

Bill McNick blurted out without thinking: "Profit!"

"Is it profit?"

"Only when an enterprise creates profits, can it create wealth for the society and be recognized. ”

Bill McNick's words were echoed by most of the people in the room.

Even Kevin Turner was nodding.

Don was a little speechless.

It's 2003, and traditional economic thinking still occupies the commanding heights, and Internet thinking ...... In the end, it is not widespread enough.

But then again, it is precisely the lack of Internet thinking that may have given companies such as Yahoo, Google, Amazon, and Facebook the opportunity to be born.

Tang En cleared his throat and said, "There is nothing wrong with the traditional economic model, which believes that a company must be profitable in order to be recognized. However, this is just the traditional economy. Haven't you seen the competition between Pepsicard and Netflix? The collision between the emerging Internet thinking and the traditional economic model is a one-sided slaughter!"

"That's because Netflix has the support of New Universal!"

"Wrong! Even if there is no New Universal, Pepsi will definitely not be Netflix's opponent! It's just that with the backing of New Universal, Netflix will solve Pepsi earlier!"

Bill McNick immediately shook his head: "Netflix is just an exception. ”

"Case?" Donn's expression was deep and complicated, the corners of his mouth curled, "Now, the outside world says that our Starz TV station is a monster and has created a miracle in the cable TV industry. So I have a question, if one day, the network speed really breaks through, the online video rises, and Netflix and Starz have a competition, who will win?"

All of you here are smart people, and they immediately thought of something, and they were dumbfounded! I want to talk about "Heads-up Hollywood" with more like-minded people, and pay attention to "excellent reading literature" on WeChat, talk about life, and find confidants~