Chapter Seventy-Seven: The Eve of the VCD Market Boom

The sweet voice of the flight attendant echoed in the in-flight radio: "...... Flight KA1111 from Beijing to Hong Kong is about to land at Kai Tak Airport, please return to your seats and fasten your seat belts......"

Zhang Lexing took his eyes back from the magazine in his hand, closed the magazine and put it back in place, checked his seat belt, and then looked out of the porthole, there was still a large white cloud outside.

It's been six days since Cheung saw the Condor Commando game disc in his office, and he took a flight to Hong Kong to attend an internal VCD seminar. Also with Ma Guanghai and Yan Shuang Fei, but now she has changed her name to Yan Ruofei.

When Zhang Lexing heard about this for the first time, he was surprised and asked: "Okay, why do you want to change your name?"

As a result, Yan Ruofei said: "Boss, the last time I went back to Hong Kong, I asked someone to help me see it, and he said that my original name was not good, and if I didn't change it, there would be disaster, so I changed it to my current name." ”

"I can't imagine that I am so superstitious at a young age. Zhang Lexing muttered in her heart, but it was her own business to change her name anyway, so she didn't dig any further, and naturally she didn't notice Yan Ruofei's slightly drifting eyes when she spoke.

After the plane landed smoothly at Kai Tak Airport, Zhang Lexing and his party took their luggage and walked out of the terminal. This time it was Du Anqi, the administrative secretary of Oriental Holdings, and the sixteen-member elite team of Anteda Security Company who came to pick up the airport, and the car arranged for Zhang Lexing was still the Mercedes-Benz S600.

After everyone got on the bus, the convoy drove directly to the Hui Hon Building, No. 33 Lockhart Road, Wan Chai, where Oriental Holdings is located. The VCD seminar was held in the conference room of Oriental Holdings, and was attended by Duan Yongping, the person in charge of Baofeng Electronics Factory (which produces VCD movements), and Ding Yaping, the technical director, as well as Don Stark, the chief technology officer of Scopa, Wang Xiqiang, the chief technical consultant of the Hong Kong Institute of Audiovisual Technology, and several senior experts in the electronics industry invited by Oriental Holdings. At three o'clock in the afternoon, all the participants had arrived, and the meeting officially began.

The presiding officer was Liu Minghui, the technical director of Oriental Holdings, who didn't need him to appear in person, only needed his subordinates in charge of consumer electronics, but as soon as Zhang Lexing came, the specifications of the meeting were much higher, and he had to go out in person.

Liu Minghui gently tapped on the microphone to try the tone, then dragged the microphone a little closer, and said: "First of all, I would like to thank Mr. Zhang Lexing, the chairman of the company, for taking time to attend this meeting in his busy schedule. The main topic of this conference is the sustainable development of VCD technology, and I will first report on the current development of the VCD market.

At present, the VCD market is mainly in the mainland, last year's annual sales of VCD players were 2,000 units, all from Anhui Wanyan Company, this year's market capacity we predict about 20,000 units. At present, the main competitor of VCD players is video recorders, according to the investigation from 92 years, led by the mainland government to carry out a 'video recorder one-stop' project, the production of video recorders in the mainland has brought a great promotion, and the output has doubled for two consecutive years. The price of Wanyan VCD player is 4995 yuan, compared with the video recorder, the price advantage is not obvious, plus the main program source is Wanyan company itself from the audio-visual company to buy, their own compression production, the number is very rare, these two points seriously affect the popularity of VCD player. ”

Zhang Lexing knew how these two problems were solved, but in order to find out if his subordinates had a solution to the problem, he still pretended not to know and asked: "What solutions do you have for these two points?"

Don Stark from Scopa was the first to speak: "The decoder provided by Scopa for Anhui Wanyan is CL450, which is not specially designed for VCD players, and the integration is not high. We are currently developing a new generation of VCD decoder board, codenamed 'CL480', if the development is successful, the integration will be greatly improved, and the corresponding cost will be reduced a lot. ”

As soon as Don Stark's words fell, Ding Yaping, technical director of Baofeng Electronics Factory, continued: "To reduce the cost of the whole machine, in addition to improving the degree of integration, we can also expand the scale of production, as long as the scale reaches a certain level, the cost will be greatly reduced." ”

At this time, one of the electronic experts invited by Oriental Holdings said: "I did some homework before coming, Anhui Wanyan company was established for a short time, its main technical strength comes from a private enterprise in Anhui, large-scale production capacity is not strong, I am afraid it is difficult to quickly expand the scale of production in the short term." ”

"In addition to Anhui Wanyan, are there any other companies that want to enter the VCD market?" asked Zhang Lexing.

Liu Minghui explained: "Chairman, in addition to Wanyan Company, there are actually many companies with this intention, mainly South Korea's Samsung, Hyundai, Japan's Toshiba, Sony, Panasonic, JVC, Europe's Philips and other well-known enterprises. However, since the complete patent of VCD is in our hands, they can't completely bypass it if they want to produce it, at least the two parts of VCD decoder board and servo board are difficult to bypass, so we have received a lot of intentions to buy licensing, and I believe that the same is true for Scopa company. ”

"That's true," Don Stark said with a fluttering eyebrow: "It turns out that our Scopa is a small company, and it is not easy to go public to raise funds, but now almost every day there are companies calling or coming to negotiate the purchase of decoding boards, and the people on Wall Street, we originally went to them, but no one paid attention, and now they are looking for us, and we are not willing to do it." ”

"Chairman, in the past, there were companies that wanted to buy licenses, and we directly vetoed them, but now Wanyan Company's production capacity will not go up for a while and a half, and there are so many companies that want to buy licenses, do you see if we are ......?"

"With the patents we currently have, how long can we stop these companies?" Zhang Lexing asked a question that he was most concerned about.

Wang Xiqiang of the Hong Kong Institute of Audiovisual Technology replied: "Chairman, according to our estimates, it will last about one and a half to two years. ”

"In other words, if our patents are not upgraded, they can find a way to bypass them in two years at most. ”

Wang Xiqiang nodded and said, "That's right, it's true." But we can maintain our patent advantage by strengthening R&D. ”

Zhang Lexing knows that VCD technology has a lot of room for development, from 1.0 to 3.0, from single disc to multi-disc, and even SVCD products that can improve definition, but they can't be compared with DVD, and they will eventually end up with the fate of elimination. Zhang Lexing doesn't want to keep VCD technology in his hands all the time, rather than this, it is better to exchange some good things when it is more valuable now.

"VCD technology has its own flaws, there is not much room for further development, we have to take a longer view. As far as I know, under the advocacy of the seven major Hollywood studios, many companies are studying the application of MPEG-2 compression technology to film storage, and plan to launch corresponding large-capacity storage media, I think we need to plug in this. Saying that, Zhang Lexing beckoned, and Yan Ruofei immediately took a stack of materials and distributed them one by one.

After Yan Ruofei finished distributing the information, Zhang Lexing continued: "Everyone, this is the information I found someone to investigate, let's take a look." ”

Liu Minghui picked up the materials in front of him, opened them and looked at them, which read: "In the early nineties, the American Film Industry Advisory Council drafted a letter of desire on behalf of the seven major Hollywood film studios, one of which was to be able to record a standard-length (135 minutes) video program on a CD, and required image and sound quality higher than LD...... According to the survey, there are two high-capacity optical disc standards under research, one is the multimedia disc (MMCD) and the other is the ultra-high-density optical disc (SHDD), and the two formats are currently incompatible with each other, just like the original videotape VHS and BETAMAX format competition, it remains to be seen which one will win......

After reading the information, Wang Xiqiang said: "Chairman, do you mean that you want us to support one of the formats?"

"It's not support," Zhang Lexing stretched out his index finger and shook it and said: "It's that we want to join, we want to become one of the standard setters, so that we can enjoy enough benefits in the future, instead of becoming someone else's benefit." ”

Duan Yongping couldn't help but say: "However, there are two formats, which side should we join......?"

Zhang Lexing smiled, how could he choose the wrong one, he knew that the two formats would eventually be unified into the DVD format, although there was another split in the subsequent DVD burning, but Zhang Lexing as long as he could keep up with the progress of research and development, the real focus was on the Blu-ray DVD later, so it doesn't matter which side he chooses now.

"The main supporters of MMCD are Philips and Sony, and the main supporters of the other SHDD are Toshiba, Time Warner, Panasonic, Hitachi, Mitsubishi Electric, Pioneer, Thomson and JVC. The key is to see which side we are easier to start from, Mr. Liu just said that Toshiba, Sony, Panasonic, JVC and Philips These companies want our VCD authorization, we can give him, but we want their next-generation storage device technology to exchange, whether it is MMCD or SHDD. We can continue to work on the technologies we can regenerate, for example, Scopal can work on a new generation of decoder boards, and the Institute of Audiovisual Technology can work on new movements, so that we can make new players and be one step ahead. Of course, further research on VCD technology should continue, for example, we can add the playback menu function, and we can also package the VCD-related technology we have at hand into a complete solution, which I believe can attract the interest of more enterprises. ”

Everyone nodded yes, especially Don Stark of Scopa.

Zhang Lexing took a sip of water from the cup in front of him, and continued: "I don't know what you think about the source of the program mentioned before?"

Liu Minghui pondered for a while and said: "Chairman, this problem is actually not something we can solve, it is best for the company that has mastered the source of the program to do it by itself, if you learn from Wan Yan to pay for it yourself, the cost is too high." ”

Zhang Lexing also knows this, in fact, VCD players can be quickly popularized, and rampant piracy can be said to be indispensable, but this kind of thing must not be brought to the table, and the topic of program sources can only be ignored like this.

"Well, Mr. Liu, see if you send someone to Anhui Wanyan to see if they are willing to build a new joint venture, we can help them expand their production capacity in terms of capital and technology. In addition, if you find someone to contact those audio and video companies, who are interested in producing and distributing VCD discs, we can provide free technical support, it doesn't matter the size, as long as you are willing to do it. ”

"Okay, chairman, I'll get in touch. Liu Minghui nodded and replied.

"Mr. Duan, your Baofeng Electronics Factory should pay attention to contacting some factories that are willing to switch to VCD players, and when our overall solution comes out, they are very good customers. ”

"Chairman, we'll take notice. Duan Yongping also nodded and said.

"Tang, you Scopa must pay close attention to the research of VCD decoding board, and strive to complete the research and development of CL480 as soon as possible. The Audiovisual Technology Research Institute should also increase its research and development efforts on VCD movements and complete machine solutions, and when necessary, some researchers can be sent to the production plant to collect the places that need to be improved in the production process and user use. Well, as long as everyone works hard, I believe that the biggest piece of the VCD market cake in the future will definitely belong to us. ”

……

After the meeting ended, Zhang Lexing left Duan Yongping and Ding Yaping behind, and explained to them: "You can also contact the audio-visual company after you go back, it doesn't matter the size, as long as you are willing to make VCD discs, we can provide them with relevant technology for free." As long as there are more VCD discs, VCD players will no longer have to worry about sales, and the VCD movements we produce will naturally need more people, do you understand?"

"That kind of small audio-visual company doesn't have any programs in hand, do you want to contact it?" Ding Yaping asked puzzled.

"You understand what I mean, what we need is to enrich the content and quantity of VCD discs, and as for who will make and produce these VCD discs, we don't know what we need to care about, do you understand?"

Duan Yongping and Ding Yaping nodded in unison, and replied in unison, "Oh, I see." ”

"It's good to understand, remember, we are a legitimate company, we must not be involved with people who are engaged in illegal activities, be careful. Zhang Lexing was not at ease, and explained again.

"Chairman, don't worry, we will definitely handle this matter. Duan Yongping patted his chest and reassured.

……

After a day of rest, Zhang Lexing left for the United States again, on the one hand, because the development of the operating system codenamed "White Tip Dolphin" has entered the final stage and needs to be checked at the end, and on the other hand, because he can only keep in touch with Chen Zishan by phone across the ocean for more than a month.

Not long after coming to the United States, Liu Minghui reported that he had contacted Wanyan in Anhui. Oriental Holdings is willing to inject capital to help expand production capacity, Wanyan company is very welcome, the two sides have even begun to negotiate more in-depth investment details, but at this time the local government inserted a bar, actually to "fertilizer water does not flow into the field of outsiders" as an excuse, proposed that "capital injection can, but the relevant supporting enterprises must choose Anhui Province" However, according to the list of supporting enterprises they provided, most of them turned out to be some third-rate unqualified small factories, either unable to produce qualified products, or the cost of the products produced was too high. Later, I heard that the local government asked Wanyan to expand the production line from 20,000 to 60,000 units per year, and promised to help it solve the financial problem, but then there was no follow-up.

Fortunately, Duan Yongping fed back the good news, they have found two factories that intend to switch to the production of VCD players, these two were the production of learning machines, due to the gradual saturation of the learning machine market, they plan to find a new way to make money, just met Duan Yongping who recommended VCD players everywhere, when Duan Yongping learned from Duan Yongping's mouth that the VCD market prospects are very broad, the two sides hit it off and reached a preliminary agreement. Another thing is that Ding Yaping, through two friends, "accidentally" omitted the information about the production of VCD discs into the hands of people who are interested, and the information is also very coincidentally attached to the analysis report on the VCD disc market, so some people with a heart began to prepare relevant equipment according to the information, intending to make a big profit like the market analysis report. Of course, there are also many formal audio-visual publishing units that have also received relevant materials and have secretly prepared for them.

All of a sudden, many people's eyes were focused on the VCD market, which was on the eve of the outbreak, looking forward to ......

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PS: The so-called calamity means that the name will be harmonized ^_^

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