Chapter 1130： added value

Just after the first day, "Thor 2" brought more than 500,000 new visits to Amber Video, and the daily activity exceeded 2 million for the first time since the reorganization.

Of course, the paid conversion rate of new visitors is less than 1 in 7, and it’s not necessarily the effect of a movie, but it’s still impressive.

"Counting the traffic created after midnight, it's almost 26 hours."

At 10 a.m., at Netflix headquarters, the technician who came in to report calculated.

After listening to the content officer Theodore, he took a sip of his coffee and said, "As expected, the main crowd of Marvel movies and TV dramas are young people who are used to the Internet." After all, it was a pity, "It's just these Resources are taken away by a small platform, and it is difficult to leave something for a long time.”

New content brings new growth, which is a common occurrence in the streaming media field, but without more and longer-term magnitude support, it is useless at all, and users will soon abandon the platform.

This is the age-old problem faced by all practitioners: how to improve retention.

It’s a pity that thousands of people have a variety of flavors. No matter how rich the content library is, it can’t cover all the people. People in the industry can only hope to reduce the churn rate and control the churn rate. For example, Netflix has a steady decline of 5% every month. Around, and then cover the loss with new users, so it seems that it has been rising.

"However," Theodore thought of a point that the Amber team could learn from the practice of this matter. "The direct stimulation caused by the launch of popular movies and not joining the ranks of free viewing is obvious. Can Netflix implement this?"

What others pay attention to is the drainage, but he has seen a lot of consumption of newly registered users who follow Marvel movies - the conversion of 1 in 7 members is already excellent, and he found that the masses seem to be more willing to pay for movies than for free. After enjoying the benefits for a period of time, it is even worse to join spontaneously.

It is undeniable that Netflix also cares about the prostitution party. Of course, any method that is conducive to paid conversion will be valued. If nothing else, if this is really effective, the actual conversion will increase a little bit, and the content alone will not be DVD rental. A positive financial feedback can be achieved, which is also a positive stimulus to the company's stock price.

But Theodore also noticed that the reason why users pay more for movies after entering Amber Video is because Amber provides data records saved in the cloud. When users pay for the movie, they can download it locally, even if they change devices and account If it is consistent, spend a little more traffic to download again, and you can review it whenever you want. As long as you have a device around you, there is no problem.

In other words, it's all consumption of the content at once.

From the user's point of view, it is only 5.7 dollars to pay the bill once, but enjoy the effect of buying a DVD (long-term preservation), and it is more convenient and can be viewed on mobile phones, so why not pay for a membership?

The video format that comes with first-level members is also enough to meet the needs, and the definition is only a little worse than DVD (Apple 4 supports a resolution of 1280X720).

In contrast, although Netflix is ​​pure and has no advertisements, in order to avoid DVD rental, its main business, the download aspect seems to have always only guided users to buy discs. This advantage has never been used. It’s still a matter of content payment, but if you let go of downloads, users’ willingness to pay will be stronger, but it’s proven by Thor 2.

As for the issue of not spreading after downloading, will the trend of paying less be reduced after spreading?

Ah. In order to grab users from TV networks and to guide users, Netflix has let go of the free viewing experience for a whole month. As for Amber, Amber is only 7 days old, and even the window period for prostitution is shorter than theirs.

Moreover, every user who accepts the content becomes a potential user attracted by the platform.

In such a comparison, Amber is obviously more cunning...

Theodore's mind was no longer on the Marvel content. He thought about it so much, so deeply, and even saw Amber's favorable strategy for payment guidance, but he was a little depressed because he remembered that after Apple entered the online rental market, the director The first reaction of most of Changhe’s top executives was to fight a price war with Apple and continue to compete, without giving up the idea of ​​​​this business at all - let go of downloads, as any fool knows, the most passive one is Netflix’s original online rental service. Although it is not ruled out that some people just like the carrier of video discs, but it is right to have an impact.

What's more, the level of online rental is very high. The most important structure of Netflix is ​​to rely on this person to eat and hold power. He really can't control it as a content officer.

Theodore could only comfort himself: "It's all a way to make money. As the number of users increases, profits will increase significantly..." But he knew in his bones that these were two different things.

The added value of the service is a big choice for users, which is also a factor that cannot be ignored in the high paid conversion rate of Amber Video after the launch of "Thor 2".

IP fans are the first, service additions are the second, and payment must be the third. These three points are Amber's implementation policy for the traffic content business.

......

Los Angeles, Hulu headquarters.

Rooted in the media field for nearly 20 years, a former Amazon senior manager, who officially took over the office of Jason Culler at the helm of Hulu in August 2010, his subordinates sent him a similar report on streaming media activity, and after opening it, The word "amber" appears quite frequently.

He glanced at it a few times and suddenly asked, "Have you seen it?"

"I've seen it, and the people in the data monitoring department also know it." The subordinate said seriously: "We all think that releasing downloads will help guide users to pay."

This is a relatively bold judgment made by a subordinate. You must know that the guy in front of him is not easy to serve. He is known for his tough management, and he also believes that non-technical administrative positions need a kind of "refinement of administrative management, which is more conducive to policy." Execution and promotion." The fact that I hate the mix of power and position, to keep managers who are not necessary.

This made Hulu's executives somewhat frightened, afraid to not focus on their work.

"I think so too, big data doesn't lie." After spending more time in companies like Amazon and Google, I have more confidence in big data simulation.

Jason Culler became interested and continued to read the document in his hand.

The entry of new content is very common in the streaming media industry, and there is always something to do to promote and increase traffic, but it is rare for a movie to bring a considerable conversion rate, and he does not feel that he is simply a Marvel fan. Most of them are young people and are Internet audiences, so the conversion rate is high. This is only one of the factors, but not all of the decisive conditions.

At the same time, one of the directions that Jason Carter has emerged is to release the impact of downloading on the DVD business - Hulu has no financial resources for online rental business, but the ones that provide content are big players in offline channels. To take care of the idea of ​​the base plate.

"Do you think you can pass?" the executive asked, "Let go of the download?"

"It should be possible." The subordinate replied: "The market for long video is not large, and the impact on TV networks is not severe. Furthermore, even if it is an impact on offline business, this is normal business competition. We all We are cultivating a new channel for watching movies for the masses, are you still afraid of this? Everyone will understand.”

Jason Carter is more interested now. He has contacted the top management of the media group behind him many times, and he knows that this group of people is hesitant-on the one hand, based on the convenient nature of the Internet The existing content market is somewhat optimistic, so the layout is ahead of schedule, so as not to rest on its laurels and be abandoned by the times, but I also feel that a new way of life wants to win the full adaptation of the people, even if the technology develops rapidly, the supporting environment is also actively improving. It can become mainstream in a year or two, and it is a fact that the exploration of the existing structure is not bold enough - otherwise, in terms of content library, Hulu has already defeated Netflix. In this regard, money is really not the first.

Disney, News Corp, and Universal don't take care of Hulu's resources. They don't even get one-tenth of their movie library, and they're not the most valuable ones.

But offline DVD, the channel provider's commission has always existed. Sony is the leader in this field. It occupies the largest market share and is also the guy with the deepest business in the burning promotion model. If it is open to download, Hulu's own user group is even worse than the TV network. Several orders of magnitude, let alone worry that this good way to promote paid conversions will be refuted.

To put it bluntly, only if you have copyright in your film library can you create value, and streaming media is also true to the promotion of the media end. Open download is also a gain for content that has no development value in itself, compared to the loss of business. , this aspect can be considered as compensation, and it also caters to the needs of the audience - I have spent money, why is the content not mine, and I need to have traffic to watch it again, and if I don't renew the original subscription, the content is gone?

They are all content carriers, so why should streaming media treat users differently?

Yes, just do it.