Chapter 688: Expanding the Industrial Layout
Nicole can throw away the work break for a while, but Ryan can't, Disney is entering a stage of rapid development, and as a brilliant professional manager, Robert? Iger has never forgotten to expand Disney's territory, not to mention that he is also one of Disney's relatively large individual shareholders, which is also closely related to his interests.
In recent years, major Hollywood studios have replaced CEOs. Managers with experience in content production such as Meyer are no longer in demand, and have been replaced by managers such as Robert? Egger is a group of people who have no experience in filmmaking, but are extremely good at dealing with interpersonal relationships and marketing promotion.
In Hollywood, content manufacturers are always at the bottom of the distributor, and the labels with distribution capabilities in North America and even around the world are at the top of the Hollywood food chain, especially after entering the new century, the so-called six major manufacturers, except for Disney itself, which has become a media group, are all acquired by media companies, which makes them have advantages in distribution and further expand.
Since decades ago, Hollywood has been a game of giants, and today it is no exception.
Among the traditional six major companies, only Disney maintains high production and high investment in films, and even rarely accepts external investment such as private film funds, and the division of labor at the top is quite clear. Cook and Robert? Egger is responsible for the day-to-day work of marketing and promotion.
Ryan was one of the most junior members of the film industry, knowing that the future of entertainment distribution would become increasingly fragmented, and it was critical that an executive with a keen nose for the ever-changing market would be in charge of the company's promotion and expansion, so that Disney could react quickly and reposition its content investment strategy.
This may not mean that there will be better movies, but it certainly means that there will be savvy business.
"Robert knew how to expand Disney's horizons, looking around externally and within the company for potential resources for new entertainment businesses"
This is what Ryan once said to Nicole, maybe he used the other party more because of the factors he knew in his previous life, and it was also a helpless move at that time. But Robert? Egger's abilities are truly unquestionable.
He has made excellent achievements in promoting Disney's copyrighted works to offline platforms, and even shortened the window period from the release of Disney films to the family to the shortest four months that is currently recognized!
Since 2002, Disney's films have accounted for more than 70 percent of the film's total revenue. On the basis of Disney's original foundation, Iger has further strengthened the vertically integrated industrial chain of content production, online and offline distribution, and peripheral channels, which has also played an important role.
Those movies that Ryan created during his time at Jenkins Films. In the later stage, it can only rely on a simple model of copyright transfer fees and sales commissions to achieve extensive profits, but Disney itself has the ability to amplify these revenues to the limit.
The film industry is undergoing a transformation, and the traditional model is sure to be phased out.
Most typically, after major film companies become part of media groups, there are few creative geniuses in the top management, and the attitude towards agency companies is more tough, such as CAA.
Since the late nineties of the last century. It is difficult for CAA's agents to rush directly into the offices of the studio's top executives, and the people they deal with are gradually replaced by some of the studio's junior employees, and their bundled sales strategy is even more difficult.
Even if CAA's agents occupy more than half of Hollywood's market. In fact, it is not enough to see in front of the media group.
Times have changed, and business thinking and business methods must change with them.
Just like Disney, in addition to consolidating its inherent advantage, it has been trying to expand into the network side. And the pace of expansion has never stopped.
YOUTUBE IS NOW THE LARGEST ONLINE VIDEO SITE IN THE UNITED STATES AND THE ENTIRE WORLD, AND THE IMPACT OF THIS INDUSTRY ON THE MEDIA INDUSTRY HAS BEEN EVIDENT IN THE PAST YEAR. Although it barely broke even in the first half of this year, the future and potential of YOTUBEI are optimistic about by countless people.
The online videoization of movies is a future that most Hollywood executives can see, and Disney is certainly no exception.
JUST THIS MONTH, DISNEY INVESTED $35 MILLION TO FORM HULU, ANOTHER ONLINE VIDEO SITE WITH 20TH CENTURY FOX, WHICH IS DIFFERENT FROM YOUTUBE'S BUSINESS POLICY, WHICH IS MAINLY AIMED AT DEVELOPING POTENTIAL PAYING USERS.
This is just another beginning of Disney's PC layout after Facebook and Twitter, and it was also this month that Disney expanded Ryan's personal website into the Disney-Ryan Family Online Channel, which is aimed at the main group of people on the Internet - teenagers!
With the complete digestion of Marvel Comics, Jenkins Films, and Pixar Studios, Disney is once again on the path of expansion.
Subsequently, Disney, driven by Ryan, sent a bona fide takeover application to Netflix.
The latter is an online video rental provider that offers DVDs of a wide range of films, and allows customers to quickly and easily select and deliver them for free.
As early as a few years ago, Netflix was Scott? Mr. Ryan's foundation, the object of Swift's investment, has always held a five-percent stake.
The site currently has millions of subscribers, and it hasn't grown very fast in recent years, with an annual profit of only $11.9 million last year, but it's not a problem with the site, it's mostly a copyright problem, there's not enough good content, and the channels it has opened up are nothing more than empty buildings.
Disney has no shortage of content, and as a loose alliance of interests, it's not too difficult to license those great films from the libraries of companies like Warner Bros. and Twentieth Century Fox.
To complete the acquisition, Disney offered $1.45 billion, a premium of more than 5 percent of Netflix's market value.
Netflix's management has not responded publicly, but from the inside, many shareholders of the other company are interested in selling their shares to cash out, and the last obstacle must be the price issue.
Ryan's biggest concern is not Netflix's shareholders, but other companies, and if a new company joins the acquisition, the bona fide takeover is bound to turn into a hostile bid.
Fortunately, after not waiting too long, there was news from Netflix that it could be negotiated, and all that remained was to wait for the results of the long negotiations.
For an acquisition of this scale, Disney does not need to use liquidity at all, nor does it need financing, just reserves are sufficient.
Netflix is just one of Disney's goals, and for Disney, the most basic and fundamental business is their biggest goal.
Both Disney's management and Disney's employees have always put themselves in the position of the world's animation hegemon.
So, when Robert? When Iger approached Ryan to discuss his next acquisition target, he was slightly taken aback and returned to normal.
"Robert, what do you mean......" Ryan looked seriously at Robert, who was sitting opposite? Iger, "We take down DreamWorks Animation Studios?" ”
"Yes." Robert? Iger said with the same seriousness, "I've talked to Cook about it, and it's completely feasible. ”
In terms of strength alone, Disney's swallowing of DreamWorks Animation Studios is just a trivial matter, the latter's market value is less than $1.5 billion, even if it was the highest market value in the previous life, it was only about $2 billion, this money is nothing to Disney now, if it is financed, even Ryan can solve it alone.
"Ryan, even though we own Pixar Studios and Disney Animation Headquarters." Robert? Iger continued, "But these two subsidiaries are very low-yielding and have a boutique strategy, whereas DreamWorks Animation has the opposite philosophy, they can produce three or five cartoons at a time, and although there are failed products like 'Shark's Tale,' for Disney, a one-in-four chance of success is enough for us to run guò channels to make a profit." ”
As the largest shareholder of DreamWorks Animation Studios, Ryan naturally knows that Robert? What Iger said is the truth, in Jerry Liver? Under Katzenberg's leadership, DreamWorks Animation embarked on the same development path as in its previous life, winning with film sea tactics, and in addition to the successful "Shrek" and "Madagascar" in recent years, they have also produced projects that have been miserable at the box office, but they have still been able to make a profit every year, although the profits are not too high.
"Robert, have you considered Jerryvor? Katzenberg. Ryan reminded him not to forget that he was the president and creative director of Disney's animation division.
"That was '94." Robert? Iger knew the original grievance very well, "It was Michael who drove Jerevor?" Eisner, not to mention ......"
He didn't say what he said later, but Ryan understood that as long as there were enough benefits, this little grudge was nothing at all.
"We need a competitive opponent."
Blue Sky Studios has only one signature of "Ice Age" and simply does not have the strength to compete with Pixar and Disney Animation, "Competition is what keeps Pixar and Disney Animation alive enough, and we also need a rival to deal with the federal government's monopoly bill." ”
This is not the time for Universal and Warner Animation to develop in the future, the two are still in the exploration stage, not to mention whether the monopoly will be established, the related investigation alone will be a headache, and countless past experiences have proved that once you lose a competitor, the consequences are very terrible.
"I agree in principle with this acquisition, but not now." Ryan concluded, "Robert, you can take a stake in DreamWorks Animation Studios for future acquisitions. (To be continued......)