Don En disclosed his "exclusive secret recipe", which has no harm to his film career, and will only bring him great prestige.

Anyway, this "exclusive secret recipe", that is, the "explosive strategy", will be summarized by many theoretical masters in another ten years, published in a book, and known by the world.

He doesn't mind adding another title of "master of theory" to himself.

Besides, in the next few decades, Hollywood's popular IPs will basically be in his hands, even if others understand this truth, it will be too late.

"What's the effect of the explosion? Don't worry, let's take our time. Let me ask you a question first, do you know who the richest man in the world is?"

Such an idiotic question, almost no one is unaware.

The audience shouted a name at the same time: "Bill Gates!"

Donn smiled: "That's right, it's Bill Gates." According to Forbes magazine's rankings, his net worth is ...... More than $60 billion. But let me tell you a story, in 1994, Bill Gates was worth $5 billion, and he owned 45% of Microsoft. ”

"According to the generally accepted investment law, you can't put all your eggs in the same basket. Bill Gates hired a very good investment manager, Michael Larson, to form Cascade Investments. After a detailed analysis and research, Mr. Larson allowed Bill Gates to reduce his stake in Microsoft on a large scale, leaving only 3%. The rest of the money was invested in other areas. ”

As a result, everyone has seen that Michael Larson's investment was successful, and he helped Bill Gates become the richest man in the world! But what would have happened if Mr. Gates had not reduced his holdings of Microsoft stock back then......? It's going to be more than $250 billion!"

Suddenly, the audience was in an uproar!

$250 billion...... What a terrifying number that is!

Donn continued: "Since the '70s, companies in the United States, as soon as they have money, have been investing like crazy. Because everyone generally understands that after the company diversifies, it can reduce the risk. It turns out that with the exception of General Electric, led by Jack Welch, and Berkshire Hathaway, led by Warren Buffett, all diversified companies have experienced a decline in performance and depressed stock prices. ”

"Of course, we are not here to talk about the rules of business, I just want to tell you a truth: put eggs in different baskets, each basket has a high risk of breaking, and the eggs fall 80%; ”

"This, this is what I mean by the explosive effect!"

Most of the people at the scene were film school students, who knew very little about business philosophy and were a little at a loss.

But the audience in the first row, especially Michael Eisner, Amy Pascal, Jim Ganopouros, Alan Horn and other company executives, all looked thoughtful.

Ron Meyer's face was stunned, and he looked at Don with a look in his eyes, full of shock: "This kid, is he really going to tell the secret?"

In his opinion, Done's words are no worse than the business management class of MBA!

These views, of course, are not original to Donne, and in ten years, they will be rotten on the street.

However, at the beginning of 2002, this was still a shocking and different view from the mainstream business view - otherwise AOL and Time Warner, two unrelated companies, would not have merged in an attempt to find diversified development space and reduce corporate risks.

I have to say that Donn's words seem to make some sense.

"I'll tell you another story, I'm a football fan...... Uh, soccer. There is a club in Spain called Real Madrid. In previous years, the club had champions, but the performance was so poor that the brand value was almost nonexistent, so much so that the membership-based club was on the verge of bankruptcy. It wasn't until real estate tycoon Fernolentino came to power that it took only a year for Real Madrid to turn a profit. Do you know how he does it?"

"He poached Luis Figo of the World Footballer of the Year from his sworn rival Barcelona for a record-breaking $50 million! Is it very confusing? The club is obviously going bankrupt, what will it do to buy people at a sky-high price? This is the great thing about Honorentino, he sees the value of the explosion effect increase. ”

"Through Luis Figo, Real Madrid's popularity has skyrocketed, sponsorship contracts have skyrocketed, fan enthusiasm has skyrocketed, and sales of team merchandise have skyrocketed...... A year later, he spent another $65 million to buy football superstar Zinedine Zidane, the brand value of Real Madrid, and in just two years, reached the level of Manchester United and AC Milan, becoming the world's top football club. ”

Don wanted to talk more about this topic, he is a fan and has this preference.

But the audience was obviously not interested in the story, soccer didn't know!

Don had no choice but to skip this paragraph, "Okay, back to the movie." Everyone loves to watch movies, and you must know that even the most loyal movie fans only watch one movie a week. If you want a movie to be a big hit, you have to make sure that the movie that fans watch is the one you made. ”

This requires studios to concentrate their limited resources and make the film a hit at all costs, so as to set off a sensation and attract fans, rather than rashly involving the long-tail market of low soup and fresh water. The essence of the explosive effect is the Matthew effect, the stronger the stronger, the weaker the weaker, and the winner takes all!"

There were also many entertainment reporters at the scene, and the school was also recording images for preservation, and the flash was always on.

As the topic unfolded, Donn's lecture became more and more in-depth.

The applause was gone, and everyone was listening, thinking to Donn's rhythm.

It's just that those Hollywood executives in the first row don't think it's too enjoyable, Donn's lecture ...... It's too basic, and after talking for a long time, I didn't get to the core part.

The explosive effect is very powerful, everyone understands, but how can we make a blockbuster?

Tang En must not be in a hurry, the manuscript he has worked so hard to prepare must be perfect, and he still wants to finish this speech, find a few professionals to consult, Yazheng, and then publish a book!

From the popular strategy of the film market, to the popular theory for the entire commercial market, and then promoted to the usual "28 rule".

This kind of theoretical textbook, Tang En did not publish a book, and sooner or later it was discussed by others.

Ten years later, the two theories in the business world are the hottest – the long-tail effect and the blockbuster effect.

Two typical companies: Google with a long-tail strategy and Apple with a blockbuster strategy.

Don is not interested in the long-tail effect, he is taking the route of commercial blockbusters, which is a real hit strategy. He didn't mind using this as a base plate to become a master of business theory in one fell swoop.

His education is very low, and in high society, many people look down on him.

Hollywood is fine, but the business scene in New York is completely different.

After the "911 incident" last year, he went to New York to attend various charity dinners, and the business tycoons were very contemptuous of Donn.

I think this kid is a nouveau riche, at most he will make a few movies, he has no background and lacks literacy!

If Don can publish a professional book on business theory, it will definitely blow up the global business community like a bombshell!

So Donn's speech, it had to be done step by step, he changed the slides, and a set of data appeared on them.

"Here's the overall revenue of Universal Pictures over the last five years, and we can see that the top 5 percent of the budget is about 20 percent of the total budget and 25 percent of the global revenue, the top 10 percent of the films cost nearly 34 percent of the investment but also contribute 40 percent of the overall revenue, and the bottom 25 percent of the budget accounts for only 6 percent of the total cost, but they also contribute only 5 percent of the box office. As for the bottom 10% of the budget films, their contribution to box office revenue is negligible. ”

Donn stretched out his arms and looked excited, "See? The data tells us that the bigger the investment, the higher the rate of return! Let's go on, here is a comparison chart between Pixar Animation and DreamWorks Animation in the past 8 years. Pixar averages $85 million per cartoon and makes an average annual profit of $65 million, while DreamWorks cartoons cost an average of $32 million and makes an average annual profit of ...... Negative $23 million. ”

"Is Jeffrey Katzenberg less capable than John Rust, the head of Pixar? Apparently not, as we all know, Mr. Katzenberg is Mr. Rust's animation mentor. Last year's "Shrek" was Katzenberg's biggest investment in cartoons, and everyone saw it, and it was a big hit and a big hit!"

"I told two stories and listed two sets of data, just to tell you that the theory of explosive products is correct! Big investment is not to ignore the huge risks hidden in the blockbuster strategy, nor to deny that small costs cannot succeed. Probabilities prove that the explosive strategy is the safest strategy while being extremely risky. ”

Michael Eisner has a busy job, he works more than 15 hours a day, and even during lunch, he has to eat and talk with executives.

Don En had been talking for more than half an hour, and he had not been focused, which made him very anxious, and he couldn't wait to stand up and ask questions.

The blockbuster strategy does have its advantages, but what is the difference between this and the theories of "blockbuster" movies and "grand event" movies a few years ago?

Don was paying close attention to the expressions of the executives in the first row, and this speech was actually prepared for them.

Let them get the benefits, so as to ignore the loss of benefits that Don brought to them in the process of exposing the favoritism and fraud of the Golden Globes.

At this time, halfway through Donn's speech, he finally reached the core topic - "So, how can we create a real hit movie?"

As soon as these words came out, it was clear that the spirit of these listeners in the first row was different, everyone straightened their backs, their eyes were wide open, and they were full of curiosity.

Like a child. ()

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