Chapter 693: Subsidy War

As a public figure, it is impossible for Don to take them out for a walk.

On the weekend, I asked my assistant to accompany them around Los Angeles and bought a lot of things, and the girls were giggling and chattering happily.

The happiest is Yui Aragaki.

After a trip to the United States, everything she wanted came true.

Her salary, like her sisters, has risen to $20,000, which is great!

It's not a question of more money and less money, it's dignity!

At least they won't be laughed at anymore.

Throughout the weekend, Don was sticky with the girls whenever he was free, especially Yui Aragaki, who took special care of her as a "newcomer".

Aragaki Yui is also well-behaved and docile like a kitten, always leaning into Tang En's arms.

It's a pity that language communication is still a barrier.

Less fun.

After this weekend, the big drama begins!

Passcard has launched a monthly membership policy, which costs only $16 per month, which is really low enough to attract the attention of many fans.

It's just that the website often crashes and makes a lot of jokes.

Pepsi, which is riddled with trouble, is actively solving this problem.

The joke is a little more, but the good thing is that the price is cheap enough!

This is Pepsi's greatest reliance.

Unexpectedly, the rumors in the industry soon came out.

Biggest competitor Netflix ...... The price is also going to be reduced!

Also $16!

As soon as the news broke, it immediately attracted heated discussions among countless commentators.

Donn Walker, who has grown up all the way and has been tough all the way, is he finally going to make a move?

With Netflix's base and the attributes of a technology company, the price is reduced to $16 if Netflix rents online...... So what kind of living space will Pepsi have?

Don't think about online business anymore, it's better to concentrate on running a physical business.

However, if there is no growth in the number of users of the online business, how can the stock price of Peskind grow? If the stock price does not grow, the huge debt, and the introduction of the low-cost membership policy will drag down Pepsi!

It seems like a knot that can't be untied.

On November 20th, Netflix officially made a major announcement to the outside world - price reduction!

Netflix now has more than 5 million users, equivalent to 8% of American Internet users, all of whom are members of Netflix, which is a very high rate!

In the past, the monthly subscription price of $20 was high, but it was much cheaper than paying a late fee at Pepsi.

Unexpectedly, in order to cope with the increasingly fierce market competition, Netflix actually reduced the price!

In fact, for those who are accustomed to using Netflix rental discs, what if Pepsi introduced a $16 monthly subscription system?

Does Passid have a recommendation mechanism for similar films?

Is there an IMDB Movie Library?

Do you have warehouses all over the country?

Fast, efficient, intelligent and detailed data ...... These are Netflix's biggest strengths!

Now, Netflix has lowered the monthly subscription price to the same price as Pepsi, how can there be no reason not to hurry up and subscribe?

"Netflix is much less famous than Pepsi after all. Unexpectedly, this price war has invisibly made huge publicity for Netflix!" Kevin Turner looked excited.

Tang En smiled: "Don't sell it, talk about specific data!"

"The price reduction has increased by 1.03 million in 3 days!" Kevin Turner was red-faced, with a sense of victory.

"Where's Pepsi?"

Don asked again.

Passcard is a listed company, and a lot of data must be disclosed to the outside world for investors to analyze and judge the trend of stock prices.

"Passcard's monthly membership policy, three weeks after its launch, appeared more than 9 million users. ”

Kevin Turner came up with a statistic that directly made Donn a little big.

This Pepsi is really still a giant!

Even though their website has been repeatedly paralyzed and made a lot of jokes, their user base and popularity are really all over the United States.

Netflix cut the price for 3 days and added 1 million new users, and the total number of users is just more than 6 million.

Three weeks after the launch of the monthly subscription system, the number of users reached more than 9 million.

That's the gap in the background.

However, Kevin Turner snickered and said with a smile: "Boss, the $16 monthly subscription system, whether it is for Pepsi or Netflix, is operating at a loss, there is no doubt about it." The difference is that there is no possibility for Passcard's online business to be carried out, and our special skills department does not allow it. Their monthly subscription system can only operate under the physical store. ”

"Oh?"

Don's eyes lit up.

Kevin Turner excitedly said: "The main purpose of Pepsi's monthly membership subscription is to shift from the asset-heavy leasing industry to the asset-light Internet asset-light. But in fact, the field of the Internet has long been ruled by Netflix, and the tens of thousands of stores and more than 60,000 employees of Passcard have become a big asset burden. ”

There is a big difference between the operation of Internet enterprises and traditional enterprises.

For example, Netflix, the more users there are, the less the average cost Netflix consumes per user. If the number of Netflix users reaches the 15 million level, Netflix will no longer need subsidies and will be self-financing.

But Pepsi is different.

Passcard's users don't grow, they convert!

The more than 9 million monthly subscribers sound terrible, but in fact, it will only cause huge losses to Best. These users, who were also users of Passcard in the past, have just switched from the high cost of renting films in the past to the current cheap monthly rental films.

The less they spend, the less income Pepsicard will have.

In other words, the more monthly subscribers Pescard has, the more they will lose!

This is the exact opposite of Netflix's situation.

The reason why Passid launched such a monthly subscription policy is mainly because it wants to transfer the rental business from physical stores to the Internet, imitating the asset-light of Netflix.

The smaller the brick-and-mortar store, the less Pepsi will have in terms of rent, employee salaries, etc.

Step by step, the transformation is realized, and then the stock price is raised.

Unexpectedly, Netflix didn't give Peskind room for transformation at all!

Netflix has also reduced the price to $16, which is to completely dominate the Internet film rental business!

Don laughed and said, "John Antioco is lifting a stone and shooting himself in the foot!"

Kevin Turner also said with a look of enjoyment: "Passcard's monthly subscription users are close to 10 million, such a huge number...... Hehe, they want to regret it, it's too late! This group of monthly subscription users is like an ant on a wound for Pestella. The more ants, the more miserable Pepsi!"

Tang En chuckled for a while, but he didn't get carried away, and muttered, "Netflix, no problem, right? No matter how many users of the physical store are, they can't pose a threat to us." Internet User ...... We can't give any of them to Pepsi!"

Kevin Turner said confidently: "I don't dare to say it for a long time, within half a year, I dare to guarantee that the online rental website of Pepsi ...... Don't even think about normal operations. Users of physical stores, let's go back to physical stores. ”

Don nodded, satisfied.

This price war was provoked by Pepsi.

Netflix was only forced to fight.

However, Netflix in this life is not as weak as Netflix in the previous life. In the previous life, Netflix, when it was fighting a price war, couldn't let go at all, so it could only reduce the monthly price to $18.

The main reason is that there is a lack of subsidy sources and can only be self-sufficient.

This gave Pepsi a long respite.

After all, the monthly fee is a full $2 cheaper.

Netflix in this life, backed by the big tree of New Globe, has sufficient funds and full of confidence!

Playing subsidies, Don in this era, ask himself if he has no opponents!

"If Pescard wants to play, then play well, the subsidy war, let's accompany it to the end!"

Tang En waved his hand, full of domineering.

……

"What did you say?"

Don couldn't believe his ears, thinking he had misheard.

In the office, Barry Diller was standing in front of his desk with a helpless face, spreading his hands, "That's what Lei Shidong said, he said that the price war is not conducive to the market of the video rental industry. Everyone is a businessman, and the purpose is to make money, so there is no need to make money at a loss. ”

Tang En sneered, "This old guy, can't he be an old fool?"

When Passcard was about to imitate Netflix to launch a monthly membership policy, Tang En asked people to say hello to Lei Shidong.

Normal market competition is fine, but don't fight a price war.

After all, as soon as the price war starts, both sides will lose benefits.

Unexpectedly, Lei Shidong refused to come forward on the pretext that Passcard was split out and had been operated independently.

Who doesn't know that Pestech's board of directors, 3 of the directors are from Viacom?

This time, Netflix was resolute and made a tough counterattack, and also launched a $16 monthly membership policy in a timely manner, which smashed Pepsi's ambition to transform to the Internet.

Lei Shidong came forward to intercede with a shy old face?

This Nima is too fake, right?

Doesn't he value face the most?

Barry Diller shook his head and said: "The pressure on Pepsi's survival is too great now, and the overly depressed stock price is no longer in line with Pepsi's due value." Wall Street has formed an investment team to snipe at Pestella. ”

"What does this have to do with us?"

"Probably...... It's to take a step back from each other. ”

Don frowned and stared at him, "Barry, what do you think?"

Barry Diller said slowly: "The $16 monthly subscription system has been introduced, and it is impossible to change it, which will cause public resentment and is not conducive to the expansion of the Netflix brand." However, if Lei Shidong can provide some reasonable benefits, we will not get worse. ”

Don understood as soon as he heard it, and he couldn't help but laugh.

This old fox!

With such a tactful statement, isn't it just trying to take the opportunity to blackmail?

However, is it just a blackmail, and this method is inevitably too light?

In the past few years, Lei Shidong and Viacom have suppressed Donn!

This time, Don finally took the initiative.

How is it possible to let go so easily?

"Lei Shidong, hum!"

Don contemptuously raised the corners of his mouth.

It's time for a combination punch. (https:)

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