Jeffrey Carsonberg is still very capable. He has negotiated with Discovery Channel and TBS Channel to play cartoons and expand cartoon production...

He also signed a cooperation agreement with Netflix to jointly produce animated series with a duration of more than 300 hours.

These are all related to peripheral development!

According to the financial report of DreamWorks Animation, the proportion of revenue contributed by TV animation in 2009 increased from 15% in 2008 to 25%.

Katzenberg also attributed the key to turning losses into profits at analyst meetings to the TV business.

He is very energetic now!

But, the Hollywood system determines that new entrants have not many opportunities

If an outside investor knows Hollywood, he will find that there are not many places to invest in.

Several major Hollywood film companies, Disney, Universal Pictures, Paramount, Warner Bros., and 21st Century Fox, are either too large or have been bought almost the same amount and have been acquired by media groups such as Viacom and Time Warner.

In recent years, most of the acquired companies are content manufacturers, Marvel, Lucasfilm, and Studio8, which was invested by Fosun International this year. These small companies have basically found their owners.

Hollywood is the system of large production companies, and distribution companies are at the top of the food chain and will always be one step ahead of foreign investors.

There are not many companies like DreamWorks Animation that are good at making IPs, derivatives and distribution capabilities need external supplementation, which also means that it is more likely to be eaten by the big production companies in Hollywood itself.

DreamWorks animation performed well in box office, but it was a headache to see its competitors grow stronger!

Pixar and Disney are perfectly integrated together. Although "The Lightning Dog", "Guizumax Agents" and "Tangrayola" are not a big explosion at the box office, they have a good reputation. Everyone can see that Disney has gathered a lot of energy!

Jeffrey Carsonberg was very anxious, but it was useless to be anxious...

Hollywood prefers to see DreamWorks anime go bankrupt…

In order to ensure the capital chain, he thought of selling the surrounding development rights according to the state.

Zhang Junsheng is not a fool, no need to guess, everyone knows the price of Jeffrey Carsonberg, and he definitely can't accept it!

He would rather take over DreamWorks anime by himself!

"Jeffrey, I have two ways of cooperating. Do you want to listen?"

Jeffrey Carsonberg shook his head: "...No need, I don't really want to take action on DreamWorks for the time being!"

Although "Monster Shrek 4" did not meet expectations, it sold 700 million US dollars worldwide, but it still lost a lot of blood to DreamWorks. DreamWorks is not on the verge of bankruptcy...

OK, since you don’t want to sell it, then forget it!

However, Zhang Junsheng still chose to invest in DreamWorks, with a total of 300 million US dollars, becoming the second largest individual shareholder of DreamWorks. At the same time, he also signed a priority merger and acquisition clause with Jeffrey Carsonberg - once Jeffrey Carsonberg wants to take action on DreamWorks, Zhang Junsheng can buy it as soon as possible...

Of course, the signing ceremony must be held later. Say goodbye to Wan Ziren and Harris and Zhang Junsheng get in the car.

Netflix is ​​going to hold a shareholders' meeting, so he has to go to Netflix headquarters...

...

Zhang Junsheng has entered the market very appropriately, and Netflix's market value is currently only 4.5 billion US dollars!

Netflix's initial business model was to not open physical stores, but only make online layouts to achieve light asset operations.

In the DVD era, mailing DVDs directly to customers avoid the hassle of picking up items from the door.

There is no late payment fee, no due date, three-free membership service with free postage, only $19.95 per month!

Why do this?

It is said that it was because the founder Reed Hastings once rented a DVD. Because it was raining, it was ten minutes late to return the discs, and then he was forced to pay a late payment fee of 10 yuan!

He thought Blockbuster was simply too domineering!

That's true. At that time, Blockbuster was the number one movie rental chain in North America, with more than 9,000 stores around the world and has cooperative relationships with the six major Hollywood players!

Then, in February this year, Blockbuster declared bankruptcy…

In fact, before 2008, Netflix's main profit method was DVD rental...

However, after the outbreak of the financial crisis in 2008, more and more users chose to watch videos at home.

Hastings keenly realized that watching programs online would become the main trend in the future. So he took decisive action to improve measures to make new media a new round of Netflix target. This move was strongly resisted by the company's senior management. In the early stage of implementation, not only did the number of users be lost, but the company's stock price also plummeted.

Plunge by 82%...

The reason why Zhang Junsheng invested in Netflix is ​​very simple. He knows how terrifying Netflix is ​​in later generations!

Another important point is that Netflix is ​​a major link in its opening up of the North American industrial chain.

Several famous TV stations are basically controlled by giants. If Tingfeng wants to expand his TV business, he can only go through the Internet. However, it is difficult for Internet video platforms to make profits!

Then invest in Netflix!

Netflix is ​​in a dilemma now...

In addition to the loss of users, the most important thing is to transform from DVD rental business to online streaming business, Netflix has touched others' cakes.

In the past, major film and television companies, content providers and Netflix had an upstream and downstream relationship. Netflix could help them sell DVDs, and film and television companies were of course very welcome.

Once Netflix starts playing content by itself, the interests of these major film and television companies will be affected - the six major Hollywood majors have their own TV platforms, and this thing is directly competitive with Netflix!

As a result, these content providers have increased their licensing fees to Netflix, with an average increase of 10%...

Unlike domestic video websites, Netflix has no advertising revenue, and all revenue sources are paid by users.

If you want to maintain revenue growth, you either raise prices or increase user subscriptions.

If you want to increase the number of users' subscriptions, you can only rely on content to make sticky.

Netflix spends huge costs on purchasing content every year in order to attract new users with good content and retain old users.

Last year, Netflix spent about purchasing content about $1 billion - its market value was only $8 billion!

This is already very dangerous!

However, the purchase price is high and it is often not possible to get exclusive playback.

For example, the American drama "Mad Men" has a purchase cost of 1 million US dollars per episode. There are 92 episodes in total, and the cost of buying them all is very high. According to the agreement at that time, it is necessary to play on AMC radio now and it will be launched on Netflix the next day.

This is obviously not cost-effective, but without classic dramas, users can easily turn to other platforms.

This is also a confusion that many companies will face. Why should users stay on your platform instead of other homogeneous platforms?

Reed Hastings was sensitive to the fact that Netflix needed to do content, and it was enough to absorb new customers!

This is also the main reason why he agreed to Zhang Junsheng for investment. Zhang Junsheng represented Tingfeng Entertainment!
Chapter completed!