Chapter 1127： Netflix expressed frustration

Netflix headquarters campus in Los Gato, California.

In fact, Netflix's building is not surprising in terms of appearance, a typical tall and large office building.

As a company started on the Internet, they are not familiar with the traditional production field. Otherwise, Reed Hastings must make a phone call to greet the founder and international director of Firefly, and adjust his emotions. Xian asked restrainedly, "What are you thinking? How did you think of launching a streaming service?"

Unfortunately, he doesn't know him well, and he doesn't have a private phone number, so he can't spy on other people's thoughts.

In this regard, this man has been touted by the business and Internet circles in recent years, and is also known as a "TV network subversive". In 2010, he was named the "Business Person of the Year" by the American "Fortune" magazine. He is also the owner of Netflix. Reed Hastings, the individual shareholder with the most shares and chairman of Netflix, is a little unhappy.

You must know that in the past two years, with the booming 4G and 4G-equipped smartphone market, the substantial growth of the mobile terminal has brought Netflix a lot of good stock market and a broad loading environment, but in recent months, it has been frequently harvested bad. information.

First of all, the DVD rental environment is getting worse and worse. While they were transforming, Apple joined the battlefield. Their iTunes store launched a service for renting DVDs and buying content not long ago. Although Apple's financial situation so far, the main focus is definitely In terms of hardware sales, the distribution and competition of electronic products are still most of the company's revenue and profit sources, but the trend of carrying platform services is also obvious.

Statistics from the market research firm NPD show that in the past two years, the Apple Store accounted for 35% of all online music sales of 69% of online music sales in the United States, and made more profit than Walmart's former hypermarket model. , and Apple is mainly targeting its own regional closed-loop consumers, which is even more terrifying.

[Reading Welfare] Follow the public.. No. [Book Friends Base Camp], and draw cash/point coins every day when reading books!

It is against this background that the Apple Store has further accelerated its action, which is almost visible to the naked eye. In June, in the revenue report for the second quarter of 2011, the iTunes store created a record $1.4 billion in revenue for Apple. .

This part of the increase, there is a rental DVD.

The revenue report shows that Apple offers more than 13,000 home DVDs on iTunes for consumers to choose from, and the new sales platform is established in an instant.

Although analysts have said that Apple's main competitor in this field is Amazon, when Apple added this service function, Netflix had to reduce the fee for copyright owners in the online DVD segment. At the same time, it has to endure the loss of substantial user purchases caused by competitive pressure.

Now it's good, not only the main business environment has begun to change, but content providers like Firefly are also Netflix's partners and one of the financial resources, and they have also begun to have their own ideas. In addition to the attention of giants such as Disney and Universal, for a while, The environment of the content library is also starting to look wrong.

And after further learning that the news is true, Reed Hastings dropped an exquisite ashtray that was more decorative than practical.

Hearing this, the chief assistant outside the door said that he was used to it and waited for a while.

Big people also have emotions, and they will be upset.

Not to mention, for someone like Reed, who had two entrepreneurial experiences and was inconspicuous before the age of 30, if it wasn't for his passion for work and his strong ambition and professionalism, he would not be able to stand here.

No idea, when Netflix went public, if he really wanted to be at ease, he would have retired early, why would he have to dig through those professional and boring business reports every day, make one decision after another, and participate in one after another forever? Endless discussion.

Hold the power and enjoy the power.

He enjoys the company's forge ahead under his leadership, enjoys various mergers and acquisitions, subversive expansion, and enjoys conquering cities and towns in the already intertwined film and television fields.

With such a mentality, he is of course a person who easily breeds various emotions.

Especially in the context of fighting with Apple's sub-sectors and losing ground, the mood is even worse.

After a long time, when there was no sound in the office, the cautious assistant opened the door, looked at the bad-faced chairman, and informed, "The purchasing department has notified the chief operating officer of the meeting, Mr. Chairman."

......

"We have made new changes in the purchase of film sources and the business environment of streaming media." Theodore Salado, the former Vice President of Product and Procurement at VideoCity, is now the Chief Content Officer and Vice President of Netflix Si's first sentence is, "According to the investigation, Mann Media has taken over all the shares of the former FOtv, and it has officially changed its name to Amber Video. In addition, Mann's content production will be settled in Amber if there is no accident, which means that we are now For the few Marvel movies they have, they will definitely not renew their contracts by the end of the year."

Knowing this news, the executives in the conference room were not calm.

Although Netflix has many competitors in the streaming media field, such as Hulu founded by Disney, Universal and News Corporation, and the supplementary business exploration of various Internet giants, etc., in terms of market share, Amber has not entered the top five in this field. But this does not mean that the emerging amber video is not taken seriously.

The main reason is very simple. Netflix is ​​the one who understands the iron law that streaming media gameplay and content are king.

For every growth point of Netflix, in addition to changes in the external environment, the biggest increment all comes from the accumulation of newly added content, and the biggest loss problem is the dissatisfaction of the content library for specific audiences.

The word "streaming" of streaming media not only refers to the fast and fluid properties of playback, but also represents the flow of demand for users to frequently change platforms to pay for them. Compared with traditional TV channels, the degree of dependence is lower.

In other words, Netflix has to keep content first, otherwise it’s not uncommon for the user base they’ve cultivated to bleed to other platforms.

Again, this industry has a very low entry barrier for companies that started out in the traditional production industry and accumulated a certain amount of capital. Even if they belong to the latecomers, they have lost their first-mover advantage, but it does not mean that they are useless and difficult to catch up.

Compared with Netflix, traditional producers have many innate advantages, especially in terms of brand and content resources.

In video websites, for latecomers, there are two difficult thresholds: one is how to gain popularity and increase the stickiness of each visitor’s payment; the other is how to solve the problem of lack of program resources.

These two questions, Netflix spent several years climbing step by step, but there is no limit at all including Hulu and Amber, only how to expand the upper limit.

For Hulu, they have a supply chain of episodes with Disney, Fox, Universal, NBC, FOX (News Corporation's TV network), and ABC. As long as the audience recognizes these film and television programs produced and wants to watch them, they will naturally There is no shortage of basic disks. The same is true for Amber videos. As long as the audience wants to watch the content produced by Firefly, in the context of exclusive control, they can only choose Amber. The brand effect of their own cultivation will naturally greatly reduce the traditional producers. Marketing costs.

Slightly jealous, Netflix hates this kind of content darling that has a market while lying down, because these people don’t need to run around and buy movies to enrich themselves, as long as they devote themselves to their own copyright library, they can easily accumulate some users.

Furthermore, such signs are very bad. If all the producers rushed into the streaming media, Netflix would be gone. It is still leading now because of hundreds of labels, including Warner. , Lionsgate, Gemstone, Mubao, Constantine and other producers are also more willing to put content on their websites to increase revenue within copyright operations. Their content costs the most, plus they insist on a paid membership model. , instead of e-commerce + payment, the practice of zero advertising will increase the user's experience, especially in the environment where others are supplementing with advertising revenue, the uniqueness of UU reading Netflix is ​​a shining point. .

"They are really so courageous, not stocking, but giving full support?" asked the chief operating officer, who felt that the external pressure had increased.

"Yes, the "Thor 2" that has been drawn around the world recently, they have already indicated that they will be launched in Amber. Do you think they have done so, and the remaining films can still be left?"

"Disney and Universal don't support Hulu so much. If you leave Netflix, they won't necessarily be able to earn so much from the broadcast, right?"

Yes, Hulu has the most old dramas, such as "The Simpsons", the newly released film source, the industry generally likes to leave it to Netflix to operate first, because Netflix has the most paying groups, and the profit of sharing accounts must also be the most - at this time Netflix, just treat it as a platform. The expenditure on content is far greater than the profit of content. Again, the things are sent to you by others to sell, you will charge a booth fee, how much can you earn? money. If you really want to make money, you have to do it yourself.

"Keep staring, I want to see how far Amber can develop, is it the next Hulu, or even the streaming services launched by Amazon can't compare (the long videos of Amazon and YouTube are supplements, and membership is free) Look, there is no fee ratio, at best it is a benefit of added value, it is just an addition, just like buying vegetables and onions, people don’t expect this to make a fortune, and the main business structure remains unchanged).”

​​

Please remember this book's first domain name: . Mobile version reading website: