Chapter 611: Plan before you act

The data comes mainly from the CAA's analytics department and the consulting firm hired by Robert's firm, the latter collecting more gossip, while the former is very serious about Netflix, a new Hollywood distributor, and has built a special database in the last two years with very detailed data. Pen | fun | pavilion www. biquge。 info

All of this helps Murphy make his own judgment.

In any case, on this kind of project involving tens of millions of dollars, Murphy must be cautious, although he is rich now, but he will not be stupid enough to throw tens of millions of dollars casually.

Hiding in his study at home, Murphy spent an entire day looking through various materials about Netflix, and gradually understood why Reed Hastings did this.

Combined with the data and analysis of many parties, it is not difficult for him to see that Netflix's demand for producing content can only be described as very eager.

In Hollywood, labels with broad distribution channels occupy more of the upstream position of the industry chain than content producers, but channel supporters like Netflix want to join the downstream content producer industry, which is both an active choice and a last resort.

A company that pursues commercial profits and suddenly wants to win cooperation by giving up large profits, anyone will be naturally wary, especially a business giant like Reed Hastings, who has fought all the way, and Murphy will definitely not respond at will if he doesn't understand the situation.

Nowadays, the operators of the entertainment industry represented by the film industry are exploring ways to become bigger and stronger, whether it is to build a large entertainment ecosystem or to lay out the pan-entertainment industry chain, the pace of expanding the business scope of enterprises and structural transformation and upgrading is becoming faster and firmer.

In the current market competition environment where entertainment has no borders and industries have no borders, it is Netflix's strategic plan to integrate and build its own industry chain and enrich profit points and profit models.

For commercial companies, the best industry is the monopoly industry, monopoly means pricing power, means producer surplus, although not necessarily good for social welfare, but certainly for profit.

But did Netflix now have pricing power? Murphy looked at the information and came to a very clear conclusion: Netflix didn't!

For a long time, Netflix didn't dare to raise prices, because to a large extent, she relied on the price advantage to kill the blockbuster. Netflix has even given some users a lifetime commitment to $7.99/month, which is what many people jokingly call the grandfather clause, which refers to keeping the old contract valid for some users.

On the other hand, because it is not like the six major Hollywood companies that can produce content, Netflix has no advantage over downstream content producers, and they have no pricing power, but need to pay content copyright fees every year.

To break this dead cycle, we can only rely on price increases, and we can only cultivate user stickiness in the content if we want to increase the price, and we can only cultivate user stickiness in the content, so self-made content has become almost the easiest exit.

Therefore, it is not difficult for Murphy to figure out that Netflix is going to embark on the road of no return to self-made content.

Judging from all this, he also understands why Netflix and Reed Hastings came to work with him instead of other directors or production companies.

Murphy Stanton is a well-known brand in Hollywood, and since entering the 21st century, it has been synonymous with producing high-quality works and high profits......

On the other hand, Netflix, the model of streaming media + original content is not only what they want to do, judging from the information obtained by Murphy, many companies are planning plans in this regard, and the threshold of this industry is actually not high, and powerful companies can basically do it.

From the information provided by CAA, Murphy saw that Netflix's opponents in the online film and television service business lined up to get out of a vast line: Amazon launched, Walt Disney, 21st Century Fox and Comcast, several media giants jointly launched Hulu and, HBO launched HBO.NOW and HBO.GO, Disney launched, Google has, and plans to launch it next year to do TV.streaming, Facebook is also recruiting to find media companies, find celebrities and find Internet celebrities, Wal-Mart, which has nothing to do with the media, has acquired Vudu, and even Apple, which is playing with sand next to it, is also eyeing it, and the rumors of streaming are not a day or two away, and they have colluded directly with HBO to engage in HBO.NOW before.

Yes, Netflix is still a well-deserved industry leader in the online film and television service provision business; But what is choking is that there is a nest of bosses in other industries who are all cocks in their ass.

Although Netflix has a slang term in North America, called, which means "watch Flix about pao", Netflix does not dare to take a wrong step, such a group of big guys in the ass, Netflix takes a wrong step, and it may be doomed.

"That's why they chose you."

Bill Rothes, who came to Wave Manor, said to Murphy, "Because you are the guarantee of success, even if Netflix loses profits, it can further increase user stickiness and attract more new users through the word-of-mouth of content!" ”

For film and television production, Netflix is just a rookie egg.

Murphy closed the previous information and said with certainty, "Although filming is not the only way out for Netflix, it is the easiest way. ”

In the face of such fierce business competition, it is no wonder that Reed Hastings offers such favorable terms.

So in the final analysis, if you want to compete for users, you must have excellent content, and those technologies and data are all virtual shelves, and others can imitate them if they want to.

And if Netflix wants to continue to roll the snowball of rapid development, it must have the best original content, and it must have the ability to increase prices, or even double the rise, and cannot expect the global market to have much potential.

In today's international political environment, it is more difficult for the cultural film and television industry to fully penetrate the global market, such as the supermarket on the other side of the Pacific that can make any company salivate, Netflix can only surrender, so the best way for Netflix to go is to rely on high-quality content to attract customer resources in the market that can be entered.

After carefully reading Netflix's materials, it is not difficult for Murphy to see that subscription fees are the only income for the Flix streaming service, so maintaining the growth of the number of users is the most immediate goal.

How can this be achieved? Putting out a particularly good show makes people feel like they have to watch it, and at the same time, on the other hand, it helps them enjoy Netflix services more easily.

But why do people have to choose to watch it on flix?

Murphy and Bill Rothes exchanged opinions, and together they came up with the answer of "solo and original".

Originality is also for exclusive broadcasting, at least for the first few years, it is only broadcast on its own platform, these programs make people feel like they have to watch it, and of course, on the other hand, successful original series can also advertise for Flix, increase the company's popularity and recognition, and eventually the increase in the number of new users will come naturally.

"Netflix wants to develop the series vigorously, not only because the series can have those advantages." Bill Rothes said to Murphy with great certainty, "It's all the more because you have to have exclusive rights to do so!" ”

Bill Rothes further analyzed for Murphy, "The competition for streaming sites is fierce right now, and the cost of broadcasting rights is also rising. Netflix paid close to $100 million for Mad Men's content, with an average cost of millions of dollars per episode, as well as other popular series such as "Dr. House" and "Gossip Girl." ”

Murphy nodded slightly, Netflix's cooperation is indeed very sincere.

"And such an exclusive broadcast right is only a second-round broadcast right." Bill Rothes continued, "For episodes that are being broadcast on TV, Netflix usually can't be released until after the TV broadcast has ended. ”

"So," Murphy has figured out Netflix's intentions, "is it actually more cost-effective to make your own series?" ”

Bill Rothes nodded solemnly, "That's right! This is not just my analysis, but the conclusion of the CAA. ”

When it comes to the investment of tens of millions of dollars from super customers, not to mention Murphy, even the brokerage company behind him is quite cautious, and everything must be planned before acting.

Business investment is not that the other party says I won't cheat you, then I won't cheat you, Murphy has done so much, and it is only the most basic understanding work before investment and cooperation.

If you don't even know a company, and rush to cooperate with others, it is not called daring, but your head is in water.

Determined that Netflix was sincere in cooperating and not digging a trap, Murphy thought the two sides could start formal negotiations.

"That's it, Bill." He directly instructed, "You give Reid Hastings a reply next week, and when Gail goes to Boston to sign an agreement with the Boston Globe, formal negotiations will begin." ”

Bill Rothes reminded, "What about episodes? ”

"I'll come up with a story outline as soon as I can." Murphy thought for a moment and said, "As long as Stanton Studios negotiates an agreement with Netflix, it can immediately hire a screenwriter to write the script." ”

He added, "I'll be the producer, with Paul as the director, and I've spoken to Paul before. ”

"I know what to talk about." Bill Rothes has a lot of experience in this area, and stood up and took his leave, "Then let's stop here today, I'll go back to the Death Star Mansion first and do some preparations." ”

Murphy waved his hand, and when Bill Rothes walked to the door, he remembered one more thing and said, "Bill, don't forget to come to my engagement party with Gail on Saturday night." ”

Bill Rothes turned around and said, "I'll be on time." ”

There are very few airtight news in Hollywood, not to mention that Murphy has no intention of keeping it secret at all, and the matter of his engagement to Gal Gadot has been widely circulated in the circle.