Executives from Silicon Valley know Netflix best.

In the past few years, the group has invested a lot in Netflix, not only establishing 30 diversion storage warehouses across the country, but even spending a huge amount of money to buy the IMDB website, the world's largest film and television database.

Netflix's foundation is so good, a simple price war, just want Pepsi to turn over and surpass Netflix, is it possible?

This is too much to underestimate Internet technology!

The gap between traditional enterprises and Internet companies is not at all bridged by the price difference of $2!

"What? you disagree?" Don glanced at them.

Kevin Turner put it simply: "There is a big difference between Internet companies and traditional companies. Although the number of Internet users is limited today, the group convergence is very obvious. When a user discovers a new Internet service, maybe the next day Internet users from all over the world will flock to see the excitement. ”

Bill McNick was surprised and said, "Didn't Besta also launch an online subscription service?"

Kevin Turner laughs: "User experience is an important indicator of what is advanced and what is not advanced within the Internet, which makes the future EB2.0 era logical. The same is true of facebook, the boss said that before 2010, the facebook website was not allowed to pursue profits, everything was based on user experience, and the habits of users were cultivated, which was the thinking mode of Internet EB2.0. ”

Barry Diller groaned slightly, "Does Netflix have a way?"

Kevin Turner said: "At the end of the day, Netflix is a technology company!"

Reed Hastings sat down and explained: "Netflix has been online for 6 years, and our user experience is far from comparable to Pepsi. The user experience comes from Netflix's integrated analysis of industry-leading algorithms and data. ”

After a pause, he continued: "That's right, renting a film from Pepsi and Netflix doesn't seem to make any difference, even ...... If Passcard launches a monthly subscription system, it will be cheaper to rent films at Passcard. However, what Besta offers is a service with known results, Netflix...... But it can provide judgment on the unknown world!"

This sentence immediately aroused everyone's curiosity.

"Oh, exactly, what does the known and the unknown represent?" Robert Iger is mainly in charge of film, television and theme parks, and has little knowledge of the online business, so he is particularly interested.

Reed Hastings said: "When a user goes to Pepsi to rent a movie, he must first have a concept in mind, what movie he wants to watch? If he doesn't have a clear idea in his mind, then it is very difficult for him to choose a movie that fits his heart among thousands of films." This problem can't be solved by Pepsi, but Netflix can!"

"Netflix has spent 4 years carefully building a set of video recommendation algorithms, which will deduce the user's personal tastes and aesthetic tastes based on his viewing records, and then select the most suitable and most suitable films that meet his personal taste in the huge film library and recommend them to users. This greatly solves the problem of users falling into unlimited choices because of panic. ”

"In addition, we also have the largest film and television database IMDB website as a basis, we can provide users with the most detailed film information, so that users can enjoy the recommendation algorithm service at the same time, but also according to the IMDB website, further confirmation, which will greatly reduce the user's time waste of watching films that do not meet the taste. ”

"Besta has movies from all over the world and has a huge film library, but they can't push every movie in front of users, which is a huge waste of resources. However, Netflix is different. Netflix is a technology company, we have precise algorithm analysis, we have a huge amount of user data, we can conduct in-depth research and make judgments about user tastes. ”

Robert Iger, Bill McNick and others looked at each other.

Is this the power of the internet?

Pepsi wants to launch a monthly policy and argue with Netflix.

As long as the price is low enough.

However, the technology and algorithms behind Netflix, the huge video recommendation system and the IMDB film and television database are the real core of Netflix's survival!

This is a mountain that Pepsi simply cannot overcome!

When it comes to the Internet business, almost none of the executives of the New Globe Group have a say except for Kevin Turner.

One exception – Done Walker!

"Good!" said Donn with a smile in his eyes, applauding as he listened to Reed Hastings' speech.

Soon, the room remembered the warm applause.

After the applause, Donn made a supplementary speech, praising it: "That's right, I said a long time ago, Netflix is in the business of video rental, but the foothold is Silicon Valley! Anyway, this is a technology company! Reed, you didn't disappoint me." ”

"Thank you. ”

Now, with the upcoming launch of a monthly membership system, it is conceivable that in the next two or three years, Netflix will be under great competitive pressure. However, the investment in R&D funds must not be reduced! User-based technology companies, in the final analysis, are the integration of user information and the analysis of all data. The future of the Internet must belong to the era of big data!"

"Big data?"

Listening to this trendy word, Kevin Turner and Reed Hastings both lit up with thoughtful looks.

Tang En waved his hand and said: "The matter of big data, when we meet the Internet special conference in the future, we will have an in-depth discussion and solve the problem of Netflix first." Barry, what do you think of the current situation?"

Barry Diller groaned for a moment and asked, "Kevin, Reed...... You know the situation of Netflix best. I just want to ask, if Netflix's monthly subscription price is higher than Pepsi's, will we lose our market competitiveness?"

"No!"

Kevin Turner blurted out without thinking.

Reed Hastings said: "Netflix's high-quality service is enough to entice users to pay more. ”

Barry Diller, who has also managed Internet companies before, knows how sticky and attractive technology can be to users, and nodded, "If that's the case, we can do both." ”

"Tell me about it. ”

"The price reduction is for sure, $20 per month...... It's not a small difference with Pepsi's $16 pricing. We can initially reduce the price to $18 to make up for some of the disadvantage. In addition, the in-depth cooperation between Netflix and the film and television entertainment department will be launched to prepare for the price war that may break out next. In the event of an accident, the Ministry of Film and Television Entertainment must subsidize Netflix as quickly as possible in the form of commercial advertising. ”

Barry Diller's view was shared by everyone.

The price reduction of only 2 US dollars can not only avoid the rapid loss of Netflix users due to the large price gap, but also prevent problems before they occur and reduce the "subsidy" loss of New Universal.

The monthly subscription price of $18, as long as the number of Netflix users can be maintained at the order of 5 million, is enough for Netflix to pay for its own profits and losses.

Of course, everyone's eyes were on Don.

Tang En's face was indifferent, and he said in a deep voice: "Passcard's launch of the monthly membership policy is equivalent to giving up a large part of the late fee income; because of the blockade of New Universal and Disney, Passile's normal leasing business is also declining; coupled with being split by Viacom, Passcard is burdened with huge debts, and the interest to be repaid every year will be 350 million US dollars." If Passcard's monthly subscription system can't make rapid progress in a short period of time, their cash flow will definitely have big problems!"

As soon as these words came out, everyone's faces changed.

This big boss is planning to be tough to the end!

Barry Diller's policy of moderation can reduce its own losses, and at the same time use Netflix's own advantages to sanction Pepsi.

Listen to Donne's tone...... Doesn't seem to be very satisfied.

"Donn, you mean?"

Barry Diller's eyes widened as he looked at the young man sitting on the throne with a determined expression, and there was an indescribable emotion in his heart.

In the end, he is young and high-spirited!

Don said coldly: "Peskind was split up by Viacom, and I thought about talking to Disney once and canceling the ban on Pestech." But I didn't expect that they would start ahead of time, and the target would actually be Netflix! In that case, don't blame me for being ruthless! We must persist in Netflix's own advantages, and at the same time, we must also fight the price war! Not only will we fight, but we must fight in a big way, and we will fight to the end!"

These Americans have never seen the subsidy war.

Tang En had seen too many times in his previous life.

In the process of subsidy, there will indeed be a great loss of benefits.

However, as long as you defeat your competitors and achieve a monopoly on the market, you can reap several times the profit.

He wasn't even afraid of Lei Shidong's Viacom, and would he be afraid of John Antioco's Pepsi?

What a joke!

"So you mean...... Can't Netflix cut prices by just $2?"

While Don was going crazy, Barry Diller could still say a few words.

"That's right! Isn't Pepsi going to launch a $16 monthly policy? Okay, they can afford it, we can play even more! As long as the legal department approves it, we will also launch a $16 monthly policy!"

Don had already made up his mind.

Since Pepsi dares to make a move, then he will not be polite.

In the previous life, Passcard went bankrupt in 2010, and Tang En is bound to make this time, a few years earlier!

Fight for the end of the battle in 2005 or 2006!

Kevin Turner frowned and said cautiously: "Boss, if we implement a $16 monthly subscription, Netflix will ...... every year in the future It is estimated to be a loss of $100 million. ”

Tang En waved his hand, "Don't talk about 100 million US dollars, since it is a price war, even if it is a loss of 1 billion US dollars a year, we have to insist!"

Reid Hastings seemed to appreciate Donn's strengths, and when everyone else had mixed faces, his expression was full of smiles, "If Netflix has 5 million users, it will indeed lose $100 million a year." However, after the price reduction, there will be a wave of user growth. If Netflix reaches the level of 15 million users, even if Netflix's monthly subscription price is only $16, it will be able to pay its own profits and losses. ”

Tang En's heavy face also showed a smile, and he spit out a word: "Good!"

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