Thirty years ago, Sony was the first to develop the videotape format.

Since then, in addition to watching film and television works through TV sets and movie theaters, there have also been more videotapes.

Sony's "Beta" video recorder sold 100,000 units in just two years.

As a result, Sony has become a world-leading technology company!

Unexpectedly, two years later, Panasonic started a new business and launched a VHS format videotape and video recorder.

Although the "Beta" video recorder was of better quality, due to the monopoly of the format and the high price, it was completely defeated by Panasonic in the market in just a few years.

The videotape was obviously an image format developed by Sony, but it was picked by a rising star.

A few years ago, Sony also developed the "PVR" based on the TV set-top box, which is the hard drive that stores TV programs.

Through this kind of hard disk, the audience can copy the TV program to the hard disk for other time to watch without being limited by the time when the TV program is broadcast.

With the video recorder business stagnating, the DVD projector business saturated, and the death of the alkman walkman business, Sony urgently needed a product that could lead the global technological trend.

"PVR" hard drives, high hopes are pinned.

However, the sales of this product in the past 3 years have not been ideal. Although sales are growing faster than DVD projectors, there are only 1 million users worldwide.

I'm sorry for the huge R&D money Sony has paid.

All kinds of business difficulties have implicated Sony's stock price falling year after year.

Sony, which had a market value of $200 billion that year, now has a market value of only $35 billion.

If we want to save the crisis, we must have new key businesses!

Sony's eyes are on Blu-ray, the next image format after videotape and DVD.

Only by winning this format battle can Sony return to the ranks of the world's top technology companies.

The film copyright library is the key to winning the format battle.

In fact, as early as 3 years ago, when the concept of the next generation of high-definition formats was first proposed, Sony USA CEO Howard Stringer proposed to acquire MGM.

Not only can Columbia Pictures and MGM Pictures join forces to improve the territory of film and television entertainment.

It can also pave the way for the future.

However, Sony USA is only a subsidiary of the Sony Group.

Sony's power is in the hands of the Japanese Nobuyuki Idei.

At that time, Sony's market value was more than $200 billion, and wanting to eat MGM was as easy as spitting.

However, Nobuyuki Idei, the CEO, has a narrow pattern, and he doesn't want to see Sony America become too big, and then suppress Sony's headquarters.

Sony is a Japanese company, not an American one!

The Japanese have a strong national sentiment, and even Japanese companies are extremely reluctant to foreign investment.

Under these circumstances, Sony Pictures' plan to acquire MGM failed to materialize.

Now, here's your chance.

If you want to promote the development of Blu-ray discs, MGM is almost a must-choose.

Howard Stringer brings up the old story and wants to buy MGM.

This time, Nobuyuki Idei agreed.

However, Sony has run out of money, and is eager to sell the headquarters building to ease the pressure on cash flow.

Howard Stringer had no choice but to contact Comcast, intending to pull an international consortium to buy MGM on a leveraged basis in the name of the holding company.

It seems that the ambition is bound to win!

Unexpectedly, because of Donn's troubles, Comcast did not accept Sony's plan, but chose to show favor to New Universal.

Nobuyuki Idei's vision is really not good, and he will soon lose ground completely and be ousted by the board of directors.

Howard Stringer, an American, was elected as the first foreign CEO in Sony's history.

The first thing he did when he took office was to buy MGM at all costs!

This is an opportunity!

Don can take advantage of this gap to make a move as soon as possible and take MGM in one fell swoop before Nobuyuki Idei steps down and Howard Stringer takes power!

Hit one off guard!

"What happened to the sale plan of Houghton Mifflin Press?" Donn is not interested in the box office reports of "Daredevil" and "Finding Nemo", and he is about to go to Israel for a "vacation" before taking over the filming of "The Departed".

It is necessary to give some major events as soon as possible.

"There are three companies ready to bid, and the deal price is around $2.25 billion," said Barry Diller. ”

Tang En waved his hand, "Make a decisive decision and sell it quickly." I just got word from Toshiba that Sony recently held an enlarged board meeting in Japan, and everyone from Sony in the United States went. Let's hurry up and take MGM!"

Barry Diller frowned and said, "That person from Cork Cockrian is very difficult!"

"How much does he offer?"

"I didn't say it. However, Time Warner's $3.8 billion bid was rejected. ”

"The stinky and shameless old thing is really insatiable! It has plagued Hollywood for decades, thinking about sucking blood, I will teach him a lesson sooner or later!" Don sneered, closed his eyes and groaned slightly, and said categorically, "No matter what, get him! If $4 billion doesn't work, it's $4.5 billion!"

"So tall?" said Barry Diller's complexion changed slightly.

MGM Pictures now has a market value of $3.2 billion, which is about $3.8 billion at a 20% premium according to normal cash acquisition practice.

MGM's performance is so poor, no matter how high the price is, it is a lion's mouth.

If the offer price reaches $4.5 billion, it is a 50% premium, which is a very promising company to get the acquisition offer.

Tang En said: "There is no way, without further ado." If they really wait for Sony's Blu-ray technology to take shape, they are determined to smash MGM, and the price may be even higher. Now, Comcast has turned down Sony's offer to cooperate, and this is an opportunity for us to take advantage of it. ”

"MGM isn't worth that much money. Barry Diller shook his head frequently.

Don En smiled: "Don't worry, the "007" series is in the hands of MGM, and it is a jewel and dust. The money you spend now will be earned back in the future. ”

Half an hour later, Donn called Kevin Turner over again, "How's the streaming rights thing?"

That's what Kevin Turner is most important about right now.

"We've got deals with Warner Bros., Twentieth Century Fox, DreamWorks, Lionsgate and 16 other independent studios, and we've now got streaming rights to 8,000 films. The agreed lease period is set at 25 years. ”

"Good!"

Don is very happy with the result.

Hollywood's film library has a total of about 16,000 films.

Warner Bros. had the most with 6,500, followed by MGM with 4,200, followed by Universal Pictures with 3,600, Sony Pictures with 3,500, Twentieth Century Fox with 2,000, Paramount with 1,000, Disney with 500, and several other independent studios with 3,800. (Some film copyrights are divided into several parts, so there are duplicates.) ）

Now, Kevin Turner has secured the rights to 8,000 films, which is equivalent to half of the entire Hollywood!

If New Universal can successfully acquire MGM, plus MGM Library, after removing duplicate redundancies, Netflix will be able to get about 80% of Hollywood's movie streaming rights!

Such a rich library of resources, enough!

This will greatly help Netflix's streaming business in the future.

Kevin Turner was not satisfied, "We're asking for too long, a 25-year contract...... Unless it's a money-hungry company like DreamWorks or Warner Bros., it's going to work with us. Many film companies and content providers are reluctant to sign such a long lease agreement. ”

Don smiled: "8,000 films is enough, and if we count our own, it will be enough to support Netflix's streaming business in the future." ”

Kevin Turner frowned, "But...... At present, Netflix has as many as 30,000 DVD film and television rights! and Peskind has even more, as many as 75,000 films!"

Copyright law in the United States is strange.

Party B must sign a contract with Party A and obtain permission before using the copyrights related to movies such as network copyrights and adaptation copyrights.

But DVD copyright is different.

As long as Party B purchases a genuine DVD distributed by Party A, it can carry out various business activities on its own, as long as it provides sufficient profit dividends.

Unless New Universal and Disney name and block Pepsi, Beskind is not allowed to use New Universal's and Disney's DVDs for commercial purposes.

Netflix owns the rights to 30,000 DVD films, all but almost all of which are Hollywood films, the rest are foreign films and extremely low-budget domestic American films.

That's why it's easy to start a disc rental business, whereas a streaming business requires a lot of financing to get started.

Don heard a little meaning from Kevin Turner's words, smiled dumbly, and waved his hand, "If you have something to say, just say it!"

Kevin Turner laughs: "I think the acquisition of streaming rights is going to stick with it, and it's going to get bigger and bigger! Netflix users' rental records tell us that they love good foreign movies as much as our Hollywood movies." ”

Tang En muttered: "Well, excellent overseas movies do have high value. For Hollywood, this is a blind spot, and it is an opportunity for us to take advantage of the void and lay out as soon as possible. However, we don't have to be as polite as we are to Hollywood studios with overseas studios, and we need to change our strategy. ”

"Change of strategy?"

"That's right. Hollywood movies are regarded as treasures by major companies, and they are usually only rented and not sold. Overseas movies...... They don't have a voice, and they don't have any future expectations. We can be tougher and just buy out, not loan!"

Kevin Turner's eyes widened, "Buying out streaming rights?"

"No!"

Tang En waved his hand and said lightly: "It's okay, let's ask to buy out all the copyrights of the movie first." If they don't agree, we'll settle for the next best thing and just buy out the streaming rights. ”

"I'm afraid it's going to cost a lot of money. ”

Kevin Turner hesitated.