After Xinfei Electronic Technology Co., Ltd. completed the delisting procedures, the strategy also began to develop from the previous conservative to more aggressive and high-spirited development.

The product line has rapidly changed from CD-ROM and VCD as the core, to the DVD-ROM and DVD player industry.

In order to transform the needs, it is natural to constantly clean up the inventory of VCD and CD-ROM products. In particular, the inventory of VCD players is basically in the fire sale stage.

The price of VCD players was cleared by Xinfei, and once hit the price of about $100 per unit. Originally, Xinfei had at least 5 million units in stock, but more than 3 million VCD players were sold that month, making sales hit a record high. As a result, many people in the industry misjudged the situation and thought that Xinfei was dumping at a low price to expand the market.

But in fact, at present, Xinfei Electronic Technology Co., Ltd. has reduced the production capacity of VCD, which can produce 2 million VCDs per month at its peak, and has now been reduced to 1 million units per month. In addition, at present, the production line of VCD players has been gradually slowing down, and in the next five years, all VCD production lines will be voluntarily shut down according to the situation.

Because, the VCD market has rarely made new investment, and the latest production line was put into operation in 90. In addition to the production line that has been put into operation in 90 years has not been depreciated, the other production lines have basically been depreciated, and the urban roots of machinery and equipment have been reduced to 0.

The maximum cost depreciation expense of the completed machinery and equipment no longer exists, so each VCD product is at least $50 lower than the production line of the peer that has not completed the depreciation of the equipment!

The rest of the industry is going to lose money if it sells for $100. However, Xinfei Electronic Technology Co., Ltd., even if it sells VCD players for $100 a piece, still has a huge profit of $30.

Because, the VCD production line has no longer increased new technology investment, nor does it add new equipment. If there is a problem with the old equipment, the maintenance cost is not cost-effective, and it is basically shut down directly.

What's more, most of the equipment completed with these depreciations is currently in good condition, and the spare parts are complete, and they can still be used to produce products. Among them, the most important expenses are energy, materials, labor costs and tax costs. In general, these technically not advanced production lines, in the final period of time to be eliminated, but because of the early production, depreciation completed, and high yield of the production line, the profitability is at its peak.

At present, the VCD production line has not been completely shut down, mainly because each factory can continue to bring $30 in gross profit, why not?

Of course, at present, the profits obtained by the VCD production line are basically used in the DVD player production line. However, if the DVD market wants to replace VCD, it still requires a lot of time and marketing costs.

Because, the new entrepreneurship department developed the VCD video market earlier. As a result, the current global annual VCD distribution market has reached more than 30 billion US dollars, which is second only to the global film box office market and TV series copyright market. Basically, all mainstream film and television copyright companies will make film and television content into VCD discs, and continue to make a profit through this market.

At present, Xinfei Electronic Technology Co., Ltd. is the owner of patents, even including VCD discs. Regardless of whether the VCD is produced and distributed through the channel of Xinfei Electronic Technology Co., Ltd., basically, each genuine VCD disc, as long as it is for profit purposes, needs to pay 1% of the patent fee. Therefore, Xinfei Electronic Technology Co., Ltd., which is the VCD video disc market every year, can receive more than 260 million US dollars in patent fees.

DVD discs have a larger capacity than VCD discs. However, because there are too few users of the DVD player, more of them are newly started with their own copyrights, and they are gradually transcoded into high-definition DVD discs.

Film and television companies that are not new entrepreneurs are basically in the stage of waiting and watching the excitement. When DVD forms a general trend and has millions or even more users, more film and television companies will compete for the copyright and make it into DVD for sale.

After the major film and television companies compete to produce DVDs for sale, they need to pay 2% of the royalties. That's right, the royalties for DVD discs have increased by more than twice as much as those for VCD discs.

In a sense, this practice of charging royalties based on the retail market price is almost akin to collecting taxes. It's similar to the Qualcomm tax in later generations.

Therefore, if you have a core technology, you can really do whatever you want, if the opponent can't develop a better technology. Then, sooner or later, you will have to pay royalties and use Xinfei's technology.

It is precisely because of this that the market has a strong wait-and-see mood for DVDs.

……

The statistics of DVD products in June are released. Sales in the Japanese market have become a bright spot.

DVD-ROM products sold 200,000 units, of which 170,000 units were completed in the Japanese market. In addition, DVD players sold 70,000 units in the first month, and more than 30,000 units in the Japanese market.

Comparatively speaking, DVD-ROM sells better because DVD-ROM reads universal data discs. 3.6GB capacity, can be directly decompressed to the computer hard disk, not limited to film and television, games or other content, as long as it is data, can be stored, the application field is relatively wide.

DVD players, on the other hand, can only play DVD HD content. The sales volume is relatively small, mainly because the content of the supporting DVD is really small.

"The DVD market, the key to the explosion, I think it is still in the content. Jiang Wanmeng said to Lin Qi, "The Japanese market is actually a very critical market. What is special about this market is that Asians are more conservative in their consumption than Europeans and Americans. Young people in Europe and the United States may have entertainment activities such as parties, promiscuity, alcoholism, marijuana, etc., which are not common in Asia. Comparatively speaking, the so-called electronic heroin is a relatively civilized approach. ”

The sales of electronic heroin in Europe and the United States are relatively low, because ...... People go straight to physical heroin. Several cannabis companies in Canada, go directly to the United States to go public, find out!

Relatively speaking, Europeans and Americans can use things like **** and marijuana to vent, while Asians will only use low-harm cultural products for pastime.

And because of the recession that began in the 90s, the chicken soup of the Cult of Struggle for God did not work. But due to the lipstick effect, the worse the society, the more narcotics are needed. Therefore, anime, games, and other products are growing against the trend in an environment of declining population and economic recession in Japan.

"The explosion of the DVD market, I think it depends more on animation!" Jiang Wanmeng said, "The DVD discs on the Tesco online shelves, live-action film and television sales are mediocre. However, the two works of the FATE series, "Avalon Garden" and "fate stay night", have sold more than 10,000 people. This sales volume is based on the fact that there are only 30,000 DVD player users. Basically, one out of three users bought the FATE series, which shows that this series is currently very influential in the Japanese youth market!"

Lin Qi nodded and said, "This IP must be evergreen in the future!"

This is not Lin Qi's own judgment, but the FATE series was originally the main source of popularity of the later Moon Society. Originally, the main line of the world view of the Moon Society was "Tsukihime", "Empty Realm", and "Magic Night", but what really caught fire was "FATE", which was originally only a side story. This branch has risen in popularity even more than the main line, so much so that the copyright development of "Moon Hime", "Magic Night" and so on has been postponed and shelved. However, there are new works in the FATE series almost every year, and whether they are good or bad, they are all about maintaining the popularity of FATE.

Of course, the FATE series produced by the later generations of the Moon Society, the main fans are "fate stay night", "fatezero", and "Magical Girl Illya". Most of the others are not very high, but even if they are mostly bad, they are still very hot. In essence, this shows that the popularity of the FATE series is no longer maintained by the quality of a single work, but more by the popularity of the entire world view and characters.