Chapter 580: Netflix IV
The first season of "Romance of the Dragon and Snake" showed its edge on the website, and the American audience began to have a strong interest in Chinese online dramas. Pen | fun | pavilion www. biquge。 info【Fengyun Novel Reading】
After this online drama has been broadcast, it can still generate tens of thousands of dollars in revenue every day, and it will continue to make profits, and it also makes me feel that shareholders from China can really help it get more income and profit space.
Current competitors include Disney, Time Warner, CBS, Viacom, and many others.
Each of these media giants has tens of millions or even hundreds of millions of TV viewers. Their programming includes both free and paid programming.
In fact, free programs are not free, because when users access the TV network, they have to pay monthly rent on an annual or monthly basis.
In addition, the major TV giants still have a large number of paid programs, and the paid programs need to pay an additional amount of money on top of the basic package.
The traditional TV giants, after decades of development after World War II, TV has become popular all over the United States. There are even giants that have global television networks.
Every giant, every year, the piece of television alone can take at least tens of billions of dollars in revenue from the audience. In addition, those free TV media stations can also be included in advertisements and collect a large amount of advertising revenue from advertising merchants.
So much so that these super media giants, who make tens of billions of dollars in their accounts every year, have money to create high-quality programs. Those popular American dramas that have been watched by tens of millions of people are currently mainly owned by those media giants.
Because it has just begun to attack the market of living room TVs, more and more media giants are beginning to be afraid of it. Therefore, either there are high-quality copyrights that are no longer licensed, and even the licensing price is rising again and again.
And even with more than 20 million users, the current monthly revenue is only $200 million. Even if half of the money can be used to invest in popular film and television dramas, the investment cost of popular dramas in the United States is actually as high as tens of millions of dollars or even hundreds of millions of dollars. If you want to have a popular program like those first-line TV media that tens of millions of people follow, then. It takes hundreds of millions of dollars to build it.
For example, the investment in the first season of "House of Cards", which is being produced, is hundreds of millions of dollars. But this kind of big production can't be invested often. After all, with the financial resources. You can make up to 10 seasons of this big production in a year. With just 10 popular works, it is impossible to support the great cause of paid video.
The counterattack of the video industry is mainly due to the fact that the content selectivity far exceeds that of TV stations. Not only can a huge content inventory be searched and selected, but also the fastest update speed of the works. It must also go beyond traditional television media.
That's going to have to be a lot of new content!
Big productions can attract the most attention and popularity, but in order to continue to retain users, the quantity and quality of content need to reach a great level of richness.
The first season of "Romance of Dragons and Snakes" did not pay any cost. Just put the film and television dramas on their own platform to sell, and then, they will continue to generate sales performance.
This model is beginning to be valued by many shareholders.
"We should increase cooperation with small partner companies!" At the board meeting, a minority shareholder representative said, "It is very stupid to pay millions of dollars, or even tens of millions of dollars, in advance for the online copyright of film and television works." Because. We all know that most of the works are loss-making, and only a few make money! With this cooperation model of the small partner company, we don't need to pay a penny in advance to get a large number of copyrights! The risk of how much these copyrights are worth is not borne by us, but by the audience and the market to evaluate how much a work can sell! ”
"This ...... We also want to promote this model, but unfortunately, most of the producers of film and television content are unlikely to agree! They do not accept the sharing system. That kind of uncertain risk. CEO Reid Hastings explains, "Instead, we have adopted a share-sharing model and no upfront payment for copyrights. However, since the risks are borne by the copyright producer. As a result, some high-cost and high-quality copyrights are no longer willing to cooperate! We lose money, and many of them are also unprofitable, so we have a chance to rise! We do not prepay royalties in advance. Well, the vast majority of collaborators will worry about how much money they can make on our platform. In this way, we will lose more and more high-quality producers, and we will only get cheap but very inferior copyrights! ”
In fact, the model lacks stamina, because it can attract users by relying on some low-quality video sharing at the beginning. But Internet users will grow, and they will try to be new at first, but they can't spend their time on spam content all the time.
And if you want to get high-quality content, you naturally need a professional team and very expensive funds. In the United States, low-cost commercial movies and TV series are at least tens of millions of dollars. The more expensive big productions are hundreds of millions of dollars a work.
Internet video sites are not something that can be supported by one or two such large productions and ordinary level productions. It's that 10,000 works is not too much, and 100,000 works is not too little. How much does it cost to buy them all? Tens of billions of dollars?!
Under the model, many videos with hundreds of millions of clicks have less than one million dollars in advertising revenue. In this case, not only do you feel that you are losing money, but the advertising fee is not enough for traffic expenses. Advertisers and copyright providers all feel that they are losing money and making ends meet.
This quality is because the traffic to the website is not worth much, and if you have 100 million clicks, you can make tens of millions of dollars, well, maybe a little less than a few million dollars. Then, not only can you make money, but there will no longer be complaints in all aspects, but you feel that this is a very reliable channel that has a very important impact on your company's performance.
"Why does the partner company advocate this sharing model?"
"Because, they have earned back their costs in the Chinese market, and there is no cost pressure, so they can naturally bet on the benefits of overseas markets and the growth of the market. What's more, our partner companies invested in our stock, even if they didn't make much profit on their content share. But it can boost our company's performance and stock price. In this way, they can reap the benefits of market capitalization growth! ”
"How much copyright will the partner company provide to us?" Another question from a shareholder representative of a fund company.
"I can only say, a lot! If it is suitable for playing on the US network, we will review and translate it will be played on the US network. Other than that. The company has released more than 20 films in the United States. The network copyright of these movies has been packaged and licensed! Soon these movies will be available online! "Also, there was the past when it wasn't released in the U.S. There are no English subtitles for Chinese films, and we have a translation plan, and after the translation is completed, it will be broadcast on the Internet. Each movie costs $2, and I call it the Online Cinema Program! Yes, in the future, we will create a cinema chain on the Internet, where users can watch movies on the Internet for less money than offline cinemas. The cinema chain coverage is not very extensive, and the network is ubiquitous. Therefore. We are confident that online cinemas may reach a market size of billions of dollars or even tens of billions of dollars in the future, and it is not impossible to surpass offline cinemas! ”
At the board of directors, shareholders large and small have reached a consensus - the benefits of forming an alliance with small partners are very many.
Because it is unlikely that small partner companies will come to the United States to seize the market, and it is not realistic to enter China in the short term.
Therefore, the cooperation between the two companies in terms of content, the content of the small partner is distributed on the Internet in the United States. And the content can also be exported to China through the channels of small partners.
There is no contradiction of interests between the two sides, and only a complementary relationship will be formed.
In particular, for the main expenses at the moment. It is to spend money to buy copyrights and enrich its online film and television library.
However, spending money to buy out copyrights and invest in their own production is not only costly, but also may not be because the amount of copyrighted content is not enough. And missed the development cycle of gold.
It is true that it has a good business model, but it still needs to spend money if this model wants to be successful.
At this time, there are a large number of copyrights that do not require procurement costs, which is not only a matter of money, but also a matter of saving time.
Time is very urgent, and we need to get the moat wide before we and the traditional TV media.
Otherwise, the future opponents imitate the model, and spend a lot of money to promote, the advantage may be lost.
……
"It's the bridgehead of our c-hand American entertainment market!" Wang Qinian smiled and said, "More than any channel, it is the most promising and promising!" Moreover, it does not have a market capitalization of tens of billions of dollars like the top media giants in the United States. That kind of behemoth, even if it costs $1 billion, can't even buy 5% of the equity, and doesn't have the slightest right to speak. What's more, they have already ended their growth, and they are already optimistic that the scale of users will not decline in the future! ”
"Why don't you try to buy it outright?" Yu Dong asked.
"Buy? This is not a matter of money for the time being, because this is a critical period of development, and if there is a chaos in the fight for control at this time, then it will be a loser for all shareholders, and the winner will be other competitors! Don't operate with C-hands, don't compete for a controlling stake, but get the opportunity to cooperate with a win-win situation, this is a better solution! Wang Qinian said.
After becoming the second shareholder, and letting it go to the company's operation team, the small partner company does not operate and manage.
This is a chess piece, but for small partner companies, investment benefits are secondary. The key is that there is a stable channel for exporting copyrights!
The largest market for American film and television productions, China wants to surpass the United States in this aspect, and it is estimated that it is unlikely that it will be within ten years.
Therefore, if the small partner company wants to become the world's most important film and television culture giant in ten years, it must occupy the commanding heights of this market.
Regardless of the policy risks of direct investment in the US market, Wang Qinian is not sure that he will be able to win just because of the risk of market competition.
Therefore, it is obviously a better strategy to take a stake in the dominant companies in the United States and share the cake of the American market from the future American paid video hegemon.
How strong is the future? To put it simply, the future revenue will be directly larger than the total box office market in the United States. A company that has taken on multiple markets, such as television and movies, has gained the upper hand and has grown steadily in market share.
Perhaps, against the entire television media industry in the United States alone, the market share is not yet the upper hand. After all, it will take time for the video industry to replace the TV industry. However, compared to a single TV network giant, the future can already compete with it.
Every night, the cause of Internet congestion in the United States is not Facebook, not Google, not Yahoo and other websites. Rather, it's >
In a few years, tens of millions of families in the United States will use movies and television dramas at night, and the peak traffic can account for seventy or eighty percent of the Internet traffic in the United States.
The vast majority of the flood of traffic that floods the U.S. Internet is due to tens of millions of users turning on their televisions, computers, and other devices at the same time, watching programs at night!
The active users are all paying users. The most basic package also costs at least $10 per month. Well, in the future, the price will still rise to $20, and the price will continue to rise, although it has been protested by some users, but in fact, its advantage has been formed, so, a huge advantage has been formed. Imagine how great the future of this company is*!
Even the current video overlord ix looks inferior in comparison. Because, most of the content is very valuable content such as movies and TV series.
And on other websites, many of them are worthless users taking selfies and sharing videos. At first, people thought it was funny, but as more and more of this worthless and uninteresting content was piled up on the platform, it became more and more like a big garbage dump where all kinds of garbage were being passed on. Users need to spend more and more time trying to pick out what they are interested in. After that, many users no longer waste their time and energy on this big garbage dump.
The content is basically professional-level film and television dramas and animation works, and the overall production level is excellent. Users don't have to waste much time to find some high-quality content that they are interested in. (To be continued.) )