Hollywood Hunter

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Nancy Brill had ambitiously hoped that Blockbuster would achieve $5 billion in revenue within three years, occupying half of the video tape market.

In 1991, Blockbuster's revenue was $2.31 billion. In 1992, Blockbuster's revenue was initially estimated at US$3.36 billion, with an annual growth rate of 45%.

With the complete completion of Blockbuster's global chain store layout this year, and the continuous rapid growth of the global video tape market, it is not a problem for Blockbuster to achieve the same growth rate as in 1992. The same 45% growth rate means that Blockbuster's full-year revenue in 1993 is expected to be close to $5 billion.

Lasting three years, the triple jump program was officially completed.

Although some deviations are inevitable, for example, a large part of the estimated revenue of 5 billion US dollars will come from the same fast-growing movie peripheral product revenue, but Blockbuster continues to expand, scraping half of the video tape market share, just one time issue.

Any company, once its market share in a certain industry exceeds half, must consider finding new performance growth points.

In the original timeline, after Blockbuster became an oligarch in the industry, it also tried to diversify and expand, set foot in the record field, operate cable TV, and even opened a theme park, but all ended in failure.

Now Blockbuster and Simon's memory of the bloated and inefficient videotape chain giant are completely two companies.

However, as the expansion of Blockbuster's existing business is about to hit the ceiling, it is still necessary to find new growth points.

Entering the field of film and television production and distribution is the next expansion route that Simon personally determined for Blockbuster.

At the same time, Blockbuster provides a new set of distribution channels for small and medium-sized filmmakers, which will also help Daenerys Entertainment to further strengthen its control over Hollywood movie distribution channels.

"Producing and distributing movies alone is only the most basic promotion for Blockbuster's revenue. Having exclusive content can not only further enhance Blockbuster's brand awareness, but also strengthen users' stickiness to Blockbuster. Avoiding churn from happening is a multi-pronged effort.”

Inside the restaurant, Simon and Nancy Brill talk about the benefits of Blockbuster's direct foray into production and distribution.

Nancy Brill listened to Simon, but said: "However, Simon, the risk of independent production is very high. The reason why many second- and third-tier film companies in Hollywood go bankrupt is that they can't see their position and blindly get involved. Filmmaking."

"Then, why did they do this?" Simon smiled and looked at Nancy, and said, "The key is that the potential benefits of doing this are too great. Just like the original New Line, a self-made "Elderly Street" big Selling it directly raised the strength of this small workshop-style third-tier film company to a higher level."

"But as far as I know, New Line is on the brink of bankruptcy right now."

"That's because the new line itself has insufficient accumulation and background, or there is an element of bad luck," Simon said patiently, "These are not problems for Blockbuster. Blockbuster's current comprehensive strength is better than seven. Columbia and MGM in the big and middle are stronger and have plenty of money.”

Nancy also pointed out a very critical problem: "The exclusive use of videotape channels and the lack of theatrical release and TV broadcast that can enhance the popularity of the film have also greatly limited the scale of Blockbuster's film production, and it is very difficult for us to undertake. The making of a blockbuster film."

Simon, of course, also considered this matter, saying: "So, in the early stage of the plan, Blockbuster mainly focused on 'distribution', and expanded its exclusive content by buying out the film copyrights that had been completed by the film company, and at the same time testing the waters and investing independently. Low-cost movies. When Blockbuster's strength is further improved and it has a firm foothold in the world, it can try to make big-scale productions. Moreover, Blockbuster personally participates in film production, but in fact, it does not necessarily need a complete video tape channel Exclusive, it can still be distributed in theaters and TV, but only in the videotape channel, it is exclusively owned by Blockbuster.”

"Actually, I was thinking," Nancy looked at Simon and said, "Daenerys Entertainment can give Blockbuster exclusive rights to the content when it releases its videotapes."

"I also thought about doing this," Simon shook his head and said, "However, first of all, Blockbuster's current strength is not enough to fully stimulate the commercial potential of a Daenerys Entertainment blockbuster film in the videotape channel. The most important point. Second, Daenerys Entertainment's market share is now high enough that if it does, it will likely attract antitrust lawsuits from other video tape chains."

Content exclusivity is not uncommon in the distribution process of Hollywood movies.

In the process of theater distribution, some powerful theater chains often ask for the exclusive theater distribution rights of a film company. There are many similar cases in the video tape chain, TV network and other channels.

The problem is, with Daenerys Entertainment now, the goal is too obvious.

For example, if Daenerys Entertainment handed over last year's box-office "Wonder Woman" to Blockbuster for video distribution, not to mention whether this rental-focused chain company could fully release "Wonder Woman" The commercial potential of "Wonder Woman", other videotape manufacturers who cannot intervene in the "Wonder Woman" fat meat, will definitely not be reconciled.

As it happens, Blockbuster is a subsidiary of Daenerys Entertainment, which gives competitors enough excuses to sue Daenerys Entertainment for alleged monopoly.

In contrast, if it is a second- and third-tier film company, it will not attract much attention at all if it sells the copyright of some works to a certain video tape manufacturer alone.

meaning.

Hollywood can enter about 500 films each year, but the actual number of films produced has more than doubled. These films that cannot be distributed in theaters can only be distributed on video tape or TV. There are even some filmmakers who don’t expect theatrical release at all, specializing in the videotape and TV markets from the beginning. Relying on the strong demand for content in these two fields, many small filmmakers are also living very well.

As the conversation continued, Nancy Brill gradually realized another meaning from Simon's words, and even stopped eating, staring at the man opposite him without blinking, and said, "Simon, if I guess That's right, you want to develop Blockbuster into the 'eighth largest' in Hollywood?"

Before the annexation of mca, Daenerys Entertainment had basically jumped to the eighth largest studio tied with Hollywood's traditional seven studios.

With the completion of the MCA merger, Hollywood is back to the coexistence of the Big Seven again, only this time the Big Seven, to be precise, should be Daenerys, Warner, Disney, Paramount, Fox, MGM and Columbia .

In Hollywood now, Daenerys Entertainment not only occupies nearly 40% of the film market share, but also indirectly controls MGM, although this company, under the support of Daenerys Entertainment, has a share of the film market last year. It is still only 7%, but it is still one of the big old Hollywood studios.

Controlling two major Hollywood studios and having such a high market share, it is simply unrealistic for Daenerys Entertainment to expand further by annexing other studios.

Even if the Westeros system has deep stakes with incoming Bill Clinton, the antitrust threshold is unlikely to be crossed.

Therefore, if you want to expand further, you must find another way.

Eliminating second- and third-tier filmmakers and weakening other studios is Simon's strategy.

Further expansion of Blockbuster is another move by Simon.

First of all, even Blockbuster's current strength is no less than that of some Hollywood studios, and there is no shortage of room for further expansion. Second, the ostensible nature of the video-tape chain allows competitors and federal regulators to ignore the company's threat.

Finally, there is another point. Netflix in the original time and space has completed its counterattack against Hollywood with the positioning of a video rental company, becoming a super media group alongside Disney.

The rise of Netflix can provide many references for the further development of Blockbuster.

If the Internet wants to enter the era of streaming media, even if the Internet industry in this space and time has exploded in advance, it will take at least ten years.

Therefore, it is absolutely impossible to completely copy the Netflix model, and Blockbuster must also develop a development path that is unique to itself.

Several other major Hollywood film companies are already suffering under the edge of Daenerys Entertainment. Simon is trying to make Blockbuster the 'eighth largest' in Hollywood. This kind of thinking must be that the less people know, the better. He didn't expect that, just by talking about his own thoughts initially, Nancy would be able to draw inferences from other facts and directly see through his intentions.

Seeing that Simon didn't answer, Nancy also knew that she guessed right.

Eighth.

Daenerys Entertainment has occupied 40% of the market share in Hollywood. Because of the close cooperation with MGM, Nancy also knows that this dilapidated film company, although it has stranded the signature 007 series, has recovered in the past two years. On the contrary, it began to accelerate. At least in the past year, MGM's share of the domestic box office market has surpassed that of Columbia and Paramount, and further development is just around the corner.

Controlling two major Hollywood film companies, the expansion of the Westeros system in Hollywood has obviously reached an extreme.

Neither the federal government nor its peer rivals will allow the Westeros system to continue to swallow up other major studios.

Under such circumstances, a certain ambitious guy had thought of such a new move.

Develop a powerful video tape chain company into Hollywood's "eighth largest" enough to compete with other major studios.

However, having produced this kind of speculation and confirmed it from Simon's silence, Nancy Brill didn't have any emotion that a guy shouldn't do this, but was a little excited.

It's just, is it really possible for a video tape chain company to develop into the eighth largest in Hollywood?

Interestingly, she stopped asking a certain question. Nancy had completely forgotten to eat. She raised her face slightly and looked at the opposite, saying: "In the early stage, I accumulated exclusive resources by purchasing the copyright of independent film companies, and at the same time participated in small production films, and later began to invest. Blockbuster, and counter-attacking the theater and TV market, this development line seems very attractive, but Simon, and then what?"

With a smile on the corner of Simon's mouth, he said, "If you can do this, it will be a pioneering achievement for Blockbuster. Of course, the future will be discussed in the future. You must know that the world is always changing. Televisions in the 1950s, VCRs in the 1970s, these all brought fundamental changes to Hollywood, and now it is the 1990s, and I think there will definitely be things that change personality next.”

"the Internet?"

"Well, I have to say, you are too smart."

Some information about Blockbuster's online platform appeared in Nancy's mind. In the past, Blockbuster Online achieved a revenue of over 100 million yuan, although it only accounted for about 3% of Blockbuster's annual revenue. It can no longer be ignored. The man opposite once described the future of the Internet to her. If it really enters an era of universal Internet, the influence of Internet platforms will definitely be

No less than today's TV networks.

"I suddenly feel like I should buy some more AOL and Cisco shares."

Simon smiled and said, "How much do you have in your hands now?"

"It's less than $10 million," Nancy said, looking at the guy across from her, "The salary you gave me is far less generous than Amy's."

"Amy is equivalent to one of the founders of this company. She has gotten very little," Simon shrugged and said, "However, if you need money, I can lend it to you."

Nancy leaned forward slightly, with a bit of a joke in her tone: "Do you need to pay it back?"

Simon admired the delicate little face across the dining table, and his voice was a little provocative: "It's okay not to pay."

Nancy immediately sat upright, and at the same time looked at the female assistant who had been quiet beside Simon, and began to complain: "Jenny, he is flirting with me."

The female assistant rolled her eyes at Nancy, then glared at the guy beside her, but didn't speak, she quickly lowered her head and continued to eat quietly.

Seeing that Nancy's complaint was invalid, Simon raised his chin defiantly at her.

The small executive was rude and said, "Lend me $20 million, calculated at 5% annual interest. I won't take your things for nothing."

Simon nodded: "No problem, since you want to talk about the rules, this money should be mortgaged, right?"

"Well, I mortgaged myself to you."

"Very good, I'll give you another 5 million."

"..."

Nancy couldn't help but rolled her eyes.

After lunch, Simon took care of some chores and set off again for the east coast.

Tomorrow is January 20, the inauguration of new President Bill Clinton. Simon did not plan to appear at the inauguration, but planned to attend some of the receptions after the inauguration.

And, it's just incidental.

Business is about AOL.

In the new year, AOL will push for yet another asdl network construction project involving billions of dollars in investment. Simon is rushing to AOL's East Coast headquarters to discuss the final plan.

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