In the case that Facebook has not yet been formally established, Netflix is the most important asset of the New Globe Group, and it is an investment in the future Internet era.

Now, Netflix has been strongly sniped by industry boss Pepsi, which immediately caused a shock from the entire New Globe executives.

In the afternoon of the same day, the "board of directors" of Netflix was convened.

Including New Globe Group's big boss Donn Walker, CEO Barry Diller, President Robert Iger, CEO Kevin Turner of Interactive Entertainment, Bill McNick, CEO of Film and Television Entertainment, as well as Reed Hastings, head of Netflix, Tosca Musk, assistant to the chairman, and others.

However, it is surprising that in such a group of group executives, a relatively unfamiliar face has appeared.

In fact, everyone also knows that this person's name is George Paxton, who is Donn's personal assistant and will deal with some shady things in secret.

It's just that this is the highest level meeting, he is an "outsider", what are you doing here?

This kind of big thing, does he understand?

Fortunately, everyone respected Don very much and did not have a seizure.

At the beginning of the meeting, Barry Diller recounted his telephone communication with Lei Shidong at noon.

The results of the communication...... Oops!

Lei Shidong didn't seem to have the slightest interest in this matter, and he always clung to one point - Pepsi had been separated from Viacom and had independent management rights.

John Antioco is the CEO of PepsiCo, and he has the greatest decision-making power!

Viacom had no right to intervene.

As soon as the words fell, he was sneered at by Tosca Musk, saying: "Passcard has the right to operate independently, but don't forget, Viacom still has 3 seats on the board of directors of Passcard! Lei Shidong still has a great influence on Passcard's decision-making. In my opinion, Lei Shidong ...... I wish Pepsi would go to war with us. ”

"No matter what the process is, the dispute between PepsiD and Netflix is probably inevitable. Barry Diller shook his head and said.

Robert Egger frowned and glanced at him, "Barry, over there...... It's really not negotiable?"

Barry Diller snorted, "You can contact him personally!"

"I didn't mean that!"

Robert Iger waved his hand, his face was relatively indifferent, and he did not look apologetic at all.

These two people, one is the CEO and the other is the president.

It is inevitable that there will be a lot of disagreements because of the power struggle of the company.

"That's it!"

At this time, Don spoke out at the right time, so that the undercurrent in the venue came to an end.

However, he had no intention of easing the contradictions between the two sides.

As the big boss of the company, balance is the most important. It is far better to have two factions that are at odds with each other than to be a word hall.

Tang En said: "Barry, in your opinion, is there still a need for Lei Shidong's side?"

Barry Diller said categorically, "No! I have known the old man for thirty years, and he will not hold back in this kind of thing." Otherwise, he would have bowed to New Globe a long time ago, and he would not have caused trouble inside Viacom. ”

In September, Viacom spun off Passcard.

A month and a half later, a new voice came from within Viacom, and the contradiction between Lei Shidong and Kamasin had become white-hot. Rumor has it that within this year, Lei Shidong will fire Mayer Kamashin, the president of Viacom.

It's definitely a big move.

Tang En waved his fist and said in a deep voice: "Since this is the case, this matter is decided, Viacom and Lei Shidong's side, we will not have illusions." If Pepsi dares to take the lead in provoking, we can't sit idly by! Hmph, a few years ago, when I was in charge of a small studio at Down Pictures, I was at odds with big companies like Disney and Twentieth Century Fox. Now, with such a powerful background as the New Global Group, we will still be afraid of a small Pepsicard? If they dare to attack, we will fight!"

Robert Iger followed his words and asked, "Reed, what's the situation with Netflix, and if we really start a price war, what is our biggest margin of concession?"

Reed Hastings didn't even look at the materials, and opened his mouth to come: "Netflix now has 5.26 million users, and since the beginning of this year, the number of member users has been 265%! Based on the current situation, it is estimated that Netflix's operating income this year will be 830 million to 850 million US dollars, of which the profit is likely to be around 50 million US dollars." ”

As soon as this data came out, everyone couldn't help frowning.

Profit margin...... Too low!

But think about it again, Internet companies, it's good to be profitable, but also look at the profit margin?

Just listen to Reid Hastings continue: "If Netflix stays at the level of 5 million users, the profit margin on average is only $2 per customer's monthly fee. In other words, if Netflix wants to operate at its own expense, the monthly subscription price cannot be less than $18. ”

This data is exactly the same as what Don had before.

Robert Iger frowned and said, "The monthly subscription fee of Bestcard is $16, but we can only open it at the price of $18?

What is the purpose of the price war?

It's the competition for the market!

Use the means of price reduction and dumping to seize the market and defeat and drag down competitors.

After forming a monopoly on the market, the price will be raised.

With this bet on the future, you can make huge profits.

Since Netflix is going to war with Pepsi, it doesn't need to care about the immediate gains and losses, and it has to focus on the future.

Kevin Turner shook his head and said: "Pepsi's $16 monthly subscription price must be operating at a loss, and it is vicious competition." The difference is that Bescard has tens of thousands of storefronts, and they have two operating models: physical stores and online stores. The losses of online stores can be passed on to physical stores, so that there is room for significant price reductions. This is completely different from Netflix, we only have an online store model, and it is impossible to pass on losses and compete with a large price reduction. ”

"No! there must be!" Barry Diller shook his head firmly, "There are so many companies under the New Globe Group, isn't it easy to transfer some losses on the books? Starting tomorrow, let the film and television entertainment department cast a huge amount of commercial advertisements on the Netflix website, so that the film and television entertainment department will bear the losses of Netflix!"

Ginger is still old and spicy.

The key to this is evident at a glance.

Accounting is a common method in Hollywood, Kevin Turner and Reed Hastings of the Silicon Valley department may not know it, but the bigwigs from Hollywood are too familiar with it.

As long as the Ministry of Film and Television Entertainment invests a large number of movie advertisements on the Netflix website and greatly increases Netflix's commercial advertising revenue, it will be equivalent to "subsidy" for Netflix.

With this subsidy, Netflix naturally has the possibility of further price reductions.

Can really fight a price war with Pepsi!

It was a good proposal that was endorsed by Robert Iger, Bill McNick, and others.

However, Kate Turner, Reed Hastings, Tosca Musk and others, who were born in Silicon Valley, were all flat and did not feel interested in this proposal.

Is it necessary?

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