Chapter 205: Monopoly by ability

At the end of March 1983, Xinfei Electronics Co., Ltd. announced a high-profile news in Hong Kong - VCD release!

As the chairman of Xinfei Electronics Company, although Lin Qi is usually not in charge of things, at this time, he still needs to come out and use his appeal to promote the brand. Pen & Fun & Pavilion www.biquge.info

In fact, Lin Qi found that the effect of promoting the brand platform was better than that of most celebrities! Moreover, because of the continuous introduction of new products, in addition, he often shouted "subvert the world", "revolutionary products", and "change the world...... This kind of shameless slogan, before this kind of slogan was shouted, his propaganda so hard still made many young people respect him very much......

"If you don't buy a video recorder, ignore the bulky tape recorder!" Lin Qi declared in a high-profile manner at the VCD press conference, "Expensive and bulky tape recorders are not the best choice for families to watch designated movies and television! Unless you really want to record something yourself, there is no need to choose a video recorder at all! Whether it is Panasonic's VHS format or Sony's Betamax format recorder...... The price is as high as about $2,000, and even some low-cost video recorders are rarely less than $1,000!"

"And our VCD player is even as low as $498 a piece! With the average price of a VCR of $1,500, our VCD player only needs one-third of the price of a video recorder. As for the comparison between a videotape and a VCD, the same is true! A genuine movie videotape is sold for about $30 in the market, and the ticket price for a movie in Europe, the United States, and Hong Kong is about $2, that is to say, watching a videotape at home is equivalent to 15 times the price of a movie ticket...... And our box of VCD discs has a reference price of $10! And its contents are the same as a box of videotapes!"

In fact, the vast majority of video tape distributors only give the copyright owner about 10 percent of the share, that is, a box of genuine film and television videotapes, and even if consumers spend $30 to buy it, the company that actually produces the film can only get $3! From the point of view of the significance of buying genuine film and television content and supporting creation, the videotape market is already a cancer monopolized by giants and exploiting those real creators!

It is reported that the total box office size of the world film has reached about 8 billion US dollars, and the production company can get a total of 3 billion US dollars from the traditional cinema market. In other words, the production company gets an average of 37.5% of the traditional distribution channels, which is a reasonable return. However, according to our statistics, the total size of the film and television video distribution market exceeds 5 billion yuan, and however, the proportion of film and television production companies all over the world from this market does not exceed 5......00 million US dollars!

"VCD discs will reshape the video distribution market! We suggest that the distributors in this market give the copyright owners a 50% share. That is, for a disc of 10 US dollars, we recommend that the copyright owner of the content get 5 US dollars, and the rest is the share of the distribution agency, circulation agency and VCD disc burning and other industrial chains... We sincerely hope that film, television, animation and other content production companies can support us and work with us to reshape the distribution market of home film and television!"

The purpose of stepping on the traditional tape recorder and video tape under the soles of your feet 10,000 times is naturally to promote VCD!

When the market is robbed, then Lin Qi will also do whatever he wants like Japanese video recorder manufacturers......

This press conference was broadcast live through Star TV. In addition, hundreds of media around the world have reported, of course, the focus is on the introduction of CD discs can play film and television, which is a major innovation in the technology industry, as for the new flying brand VCD, it is only a passing pass, most of the media, there is no mention of the price advantage of VCD!

Because, after the release of the VCD, the Japanese video recorder manufacturers alliance was very fast, and immediately put pressure on the media to dilute the propaganda of cheap VCD. In addition, the interest groups formed in the global VCR and videotape market are very large, and these manufacturers are quickly pressuring videotape sales and rental companies not to sell VCDs with agents......

In Japan, the United States, Europe, and other markets, almost all of them are guarded by VCR interest groups! After all, in these developed markets, through long-term business cultivation, Panasonic has created an alliance, and the number of retail outlets exceeds 100,000! If these retail channel teams are forced, most of the retail channels will definitely not sell VCD new products at the beginning in order to seek stability!

In this regard, Lin Qi has long been psychologically prepared, can the VCD interest group suppress VCD for a while, can it suppress VCD for a lifetime? The cost disadvantage of VCR and video tape itself will lead to a price war with VCD, and it will definitely lose!

With the price of the video recorder is not close to the people, many consumers are destined to be blocked by its high price, even if there is no VCD, these consumers cannot afford to buy a video recorder! This part of the consumer is far more than the consumer who has already bought a video recorder...... They will become potential consumers of VCDs!

……

The main advantage of VCD over tape recorders is that it is cheap. The price of the video recorder is as high as more than 10,000 yuan, and it is basically the era of monopoly by foreign manufacturers.

Historically, VCDs have only been popular in Hong Kong, China and Southeast Asia, and the markets in Europe, the United States and Japan are negligible.

Mainly because audiences in European and American countries like to watch sports events, football, basketball and other events are broadcast, some sports fans will take a video recorder to record the content of the live broadcast on TV.

Historically, VCD has not been able to win the European, American and Japanese markets, mainly because it does not have the video recording function despite its cheap advantage. For most markets in Asia, the price factor is paramount. However, developed markets such as Europe and the United States give priority to functions such as video recording......

In the mid-70s, Panasonic and Sony had a fierce battle over the technical standards of video recorders, and in the end it was Panasonic that won, mainly because Panasonic's videotape standard can record 4 hours of programming. The video recorder launched by Sony, although the clarity and other indicators are better than Panasonic, can only record 2 hours of programs. And some viewers in Europe and the United States like to be away from home, but they use the video tape bar to save the live broadcast of the program on TV. Sometimes, 2 hours is not enough. And 4 hours, sometimes you can record a complete game or TV series when no one is at home, and then go home to watch the live video, so you won't miss the show.

It is precisely for this reason that although the video recorder is not cheap, it has not yet reached the stage of retirement.

However, Lin Qi's goal is not to market in Europe, the United States and Japan at all, but to occupy the market of underdeveloped countries by relying on the cheapness of VCDs. When the user scale of VCD exceeds that of video recorders, then it can attack the developed country market in turn.

Even in the video recorder market in developed countries, the vast majority of users do not use the video recording function, but use video tapes to watch videos. In that case, wouldn't it be possible to watch more movies with a cheaper VCD?

By gradually eroding the VCR market, VCD has gradually developed into the world's mainstream home film and television playback terminal.

Even if there are competitors who imitate, but ...... The current MPEG decompression technology is not publicly available. Therefore, it is much more difficult for imitators to understand the technology than it was in the 90s, when MPEG became an open standard.

As for the so-called first-class enterprises, they set standards, and then make the standards public? Get out!

This is in a bunch of patent trolls, all with similar technology patents, no one can unify the standard, helpless to compromise, develop a unified standard, after that, everyone eats meat together!

And the more realm is, eat alone!

It is absolutely leading in technology, with thousands of international patents registered. Monopolize the market with ability, why make the technical standards public?

Lin Qi is ready to play hooligan like this!

A bunch of patents were registered, a strong moat was set up, not to mention. And even a bunch of patents can't stop opponents from copying, right?

All right...... When VCDs are already flooded, let's launch DVDs again, dumbfounded, right? The technological upgrade route of the next few decades will be enough for it to kill any rival who tries to compete with him in this market.