Chapter 404: Sunset Industry

Don's strong statement made the atmosphere in the car suddenly cold.

Chris Albrecht asked, confused, "What are we going to do?"

Tang En snorted coldly: "At the beginning, I handed over the operation of STA to Comcast, and the contract was for 3 years. ”

"Three years?" Chris Albrect frowned, understanding what he meant, "but if we don't renew the contract, who can we hand over the operation of the STA TV network?"

Tang En said lightly: "Why do you have to hand it over to someone else to operate? Since you have said it, the strong STA will become the handle of being threatened, of course, it is more stable if it is grasped in your own hands!"

Chris Albrect was shocked.

The operation industry of cable TV needs to go deep into every family, which requires enough installers, business personnel and service personnel, as well as offline fund management, signal commissioning, signal transmission and other services, which are very complex.

This is an industry with low threshold, high investment and high returns!

It's not hundreds of millions at all, billions of dollars can be played.

For example, this year, Comcast acquired AT&T's cable business assets, spending as much as $47.5 billion!

Don wants to run the STA TV network autonomously, and it is impossible to start from scratch, which will paralyze STA.

It was necessary to acquire a cable operating company with sufficient strength and channel coverage throughout the United States.

But will the price of such a company be low?

What's more, TV is a sunset industry!

Maybe in another 30 or 40 years, the TV industry will fall collectively.

At this stage, Don spent tens of billions of dollars to acquire a cable TV operator, is it appropriate?

Or rather......

Does Don have what it takes to prolong the life of the TV market?

After streaming came along, it was really difficult!

Perhaps in China, TV can still crush streaming media, with radio and television policy tendencies, monopoly channel supply and rampant piracy, streaming media companies have been losing money year after year.

But the United States is different, once streaming media appears, it is almost a disaster for the entire TV industry!

In addition to the strict protection of intellectual property rights, it is because the TV charges in the United States are too high!

Take 2001, for exampleβ€”

The basic package includes four free public television stations, CBS, NBC, ABC, and FOX, and a small number of cheap cable channels such as MTV, Disney Kids, etc., for $20.

The premium package, which includes four public free-to-air TV stations, hundreds of cable channels, including the beloved ESPN, CNN, USA, and many more, costs $70.

In addition, professional cable TV stations such as HBO, STA, AND SHO also need to pay an additional subscription fee.

Also, for individual event content, you can subscribe to the broadcast.

On average, each household spends $80 per month!

The price is too high!

If you can choose, home users will definitely only choose CBS, NBC, ABC, FOX these free TV stations, plus ESPN, CNN, National Geographic, Discovery and other popular channels.

Hundreds of other cable TV stations are completely chicken!

The bundling of packages is to harm consumers.

Streaming is different, Netflix is $10 a month, you can watch most kinds of programs, and meet the basic entertainment life, which is completely sufficient.

The American people have high incomes and money, but no one will be stupid enough to throw money out for nothing.

The high TV charges have made the TV industry in the United States develop very rapidly, and the TV giants are all giants, and many media empires started with TV.

However, because of the high fees, after the rise of streaming media, the TV industry in the United States has been hit like never before.

Many media giants have collapsed as a result.

Tang En knew the future situation, and the current predicament made him worried and uncertain.

However, in front of his subordinates, Don must maintain his strong, tough, and unambiguous image, waved his hand, and said in a deep voice: "Disney is a big enemy, Viacom and Time Warner have also had friction, and one more Comcast is not a big deal!

Chris Albrecter's lips moved, and he swallowed the words he wanted to blurt out, and said in a low voice: "I hope this is just speculation, Roberts Jr. shouldn't be so reckless." ”

It's just a perfunctory sentence.

As a professional, he certainly knows how difficult it is to run cable television.

If the relationship between Towne Pictures and Comcast does stalemate, the best scenario is that small cable operators can quickly merge and consolidate in the next few years to form a new big company.

Even if it can't reach the strength of Comcast and Time Warner, it must at least have the ability to cover the entire North America.

At that time, the STA TV network will have more choices and room for operation.

……

On the way back, Don closed his eyes and pondered, thinking a lot.

Penelope Cruz sat beside him, blinked his big beautiful eyes, and asked cautiously, "Donne, I'...... Can I ask a question?"

"Huh?" Don opened his eyes, smiled, and pinched her cheek, "Okay, why are you so restrained?

"Not really. Penelope Cruz pursed his lips and asked softly, "Didn't you say that the Internet is a new medium that will gradually replace television in the future?"

"Ahh

"So will you go further into television?"

Don looked at her deeply.

This is really a problem, even John Malone, the father of American cable television, has withdrawn, and Don is still deep in this field, which is very biased towards Tiger Mountain.

"AT&T's sale of the cable business was mainly to raise funds to develop mobile operations, which is also aimed at the wireless communication business in mobile phones. In fact, there is not much difference between TV operation and network operation, it is completely possible to do two jobs with one set of people, and TV will gradually be lonely, but the Internet will continue to grow. As long as this business is grasped with both hands, there is no need for a collapse. ”

Tang En casually responded with a few half-truths, and then looked at her with a smile, "What are you doing?"

"How could I do that!" Penelope Cruz shook his head, "I have a deposit of more than $700,000 in my hand, and it's a pity to put it in the bank, and I still want to buy Internet stocks." ”

Don En listened and waved his hand, "Don't worry, your little money...... You can't make much money buying stocks. Before my company's IPO, when the internal IPO is held, you can buy some original shares, which is enough. ”

"Really?"

Penelope Cruz's eyes lit up with brilliance.

Tang En pulled her into his arms and said with a smile: "Anyway, it is beneficial to expand the shareholder team before listing, and it will definitely give priority to your own people." ”

Penelope Cruz tilted his head and asked, "Aren't you an employee of the company?"

Don didn't expect her to know a lot, "Employees will have, and you will too!"

Penelope Cruz said, "Okay, then...... When will Down Pictures go public?"

"Uh...... If it goes well, before 2006!"

Don pondered for a moment and came up with an answer.

In the second half of 2006, real estate prices began to plummet, the subprime mortgage crisis began to be revealed, and the following two years were followed by an economic depression.

Listing during this time period will greatly discount the issue price, which is not cost-effective.

Penelope Cruz smiled and said, "Your company must have special investment prospects!"

"So confident in me?"

"Of course, HBO is so good, and you can defeat it casually, and Don Pictures will definitely develop very well. ”

"Everything depends on the ratings of Band of Brothers. ”

"Needless to say, it must be a hit!

Penelope Cruz was clearly in a superb mood, with a ruddy and excited face that looked ...... More confident than Donn. ()

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