Hollywood Hunter

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

In 1991, Blockbuster’s revenue was US$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 continued rapid growth of the global video tape market, Blockbuster’s realization of the same growth rate as in 1992 has little problem. The same 45% growth rate means that Blockbuster’s annual revenue in 1993 is expected to be close to US$5 billion.

Lasted for three years, the triple jump plan was officially completed.

Although some deviations are unavoidable, for example, a large part of the estimated revenue of 5 billion US dollars will come from the same high-growth movie peripheral product revenue. However, under the continuous expansion of Blockbuster, it has scraped half of the video tape market. Time issue.

Any company, once the market share in a certain industry is more than half, it must consider looking for new performance growth points.

In the original timeline, after becoming an industry oligarch, BesTV also tried to diversify and expand, stepping into the record field, operating cable TV, and even opening a theme park, but it ended in failure.

The bloated and inefficient video tape chain giant in the memory of Blockbuster and Simon is now completely two companies.

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

Involving in the field of film and television production and distribution is the next expansion route that Simon himself has determined for Blockbuster.

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

“Producing and distributing movies alone is only the most basic promotion to the revenue of Blockbuster. Having exclusive content can not only further enhance Blockbuster’s brand awareness, but also enhance users’ adhesion to Blockbuster. Avoiding the phenomenon of churn is multiplying."

In the restaurant, Simon and Nancy Brill talked about the benefits of Blockbuster's direct involvement in production and distribution.

Nancy Brill heard Simon's words, but said: "However, Simon, the risk of independent production is very high. The reason why many second- and third-tier Hollywood studios go bankrupt is that they can’t see their position and get involved blindly. Production area."

"So, why did they do this?" Simon smiled and looked at Nancy, and said: "The point is that the potential benefits of doing so are really too great. Just like the original new line, a self-made "Meng Ghost Street" Selling directly increased the strength of this small workshop-style third-line film company to a higher level."

"But as far as I know, Xinxian is now on the verge of bankruptcy."

"That's because the new line itself has insufficient accumulation and background, or there are elements of bad luck," Simon still patiently said: "These are not problems for Blockbuster. Blockbuster's current comprehensive strength is better than seven. Columbia and MGM, both large and medium, are stronger and have sufficient funds."

Nancy also pointed out a very critical problem: "The exclusive video channel channel and the lack of theater and TV broadcasts that can increase the popularity of the film has also largely limited the scale of Blockbuster's film production. It is difficult for us to afford it. The production of blockbuster movies."

Simon of course also considered this matter and said: "So, in the early stages of the plan, Blockbuster mainly focused on'distribution', expanding exclusive content by buying out the film company's completed film copyright, and testing the water for independent investment. Low-cost films. When Blockbuster’s strength is further enhanced and it gains a foothold globally, you can try large-scale production. Moreover, Blockbuster’s personal involvement in film production does not necessarily require a complete video channel. Monopoly, theater and TV distribution can still be carried out, but in the video channel, Blockbuster is exclusively monopolizing it."

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

"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 big-selling film in the video channel. This is The most important point. Secondly, Daenerys Entertainment’s current market share is already high enough. If it does so, it is likely to invite antitrust lawsuits from other video tape chain companies."

Exclusive content is not uncommon in Hollywood film distribution.

During the cinema distribution process, some powerful cinema chains often require exclusive cinema distribution rights for a film producer. Channels such as video tape chains and television networks have many similar cases.

The problem is that now Daenerys Entertainment's goal is too obvious.

For example, if Daenerys Entertainment separately handed the "Wonder Woman", which was sold at the box office last year, to Blockbuster for video tape distribution, not to mention whether this chain company that focuses on the rental business can completely release " The commercial potential of "Wonder Woman" will not be reconciled to other videotape manufacturers who are unable to intervene in the fat of "Wonder Woman".

It just so happens that Blockbuster is an affiliate of Daenerys Entertainment, which gives competitors enough excuses to sue Daenerys Entertainment for alleged monopoly.

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

There are about 500 films that can enter the theaters in Hollywood each year, but the actual number of movies produced has more than doubled. These films that cannot be distributed in theaters can only be distributed on video tapes or television. There are even some filmmakers who don't expect cinema releases at all. They specialize in the video tape and TV market from the beginning. Relying on the strong demand for content in these two major fields, many small filmmakers have lived very well.

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

Before the annexation of MCA, Daenerys Entertainment had basically jumped to the ranks of the eighth largest studio alongside the seven traditional Hollywood studios.

With the completion of the MCA merger, Hollywood once again returned to the coexistence of the seven, but this time the seven, to be precise, should be Daenerys, Warner, Disney, Paramount, Fox, MGM and Columbia .

Now in Hollywood, Daenerys Entertainment not only occupies nearly 40% of the film market share, but also indirectly controls MGM. Although this company is supported by Daenerys Entertainment, last year’s movie market share It's still only 7%, but it's still one of the old Hollywood studios.

Controlling the two major studios in Hollywood and occupying such a high market share, Daenerys Entertainment wants to further expand by annexing other studios, which is simply unrealistic.

Even if the Westeros system has a deep interest connection with the incoming Bill Clinton, the antitrust threshold cannot be crossed.

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

Eliminating the second and third tier filmmakers and weakening other studios is a strategy that Simon has set before.

Further expansion of Blockbuster is another strategy of Simon's layout.

First of all, even if it is its current strength, Blockbuster is no weaker than some Hollywood studios, and there is no shortage of room for further expansion. Second, the apparent nature of the video tape chain company can make competitors and federal regulators ignore the company's threat.

Finally, there is one more point. Netflix in the original time and space has completed its counterattack against Hollywood as 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 copy the Netflix model completely, and Blockbuster must also develop a development path that belongs to its own.

Several other major Hollywood studios 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 the less people know the better. He didn't expect it, and just talked about his own thoughts initially, and Nancy could draw inferences from one another and directly see his intentions.

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

The eighth largest.

Daenerys Entertainment has already accounted for 40% of Hollywood’s market share. Because of the close cooperation with MGM, Nancy also knows that this originally run-down film company has stranded its signature 007 series and has recovered in the past two years Instead, it started to accelerate. At least in the past year, MGM's share of the local box office market has surpassed that of Colombia and Paramount, and further development is just around the corner.

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

Neither federal government departments nor peer competitors can allow the Westeros system to continue to annex other major studios.

Under this circumstance, an ambitious guy actually thought of such a different way.

Develop a powerful video tape chain company into Hollywood's "eighth largest" capable of competing with other major studios.

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

But, is it possible for a video tape chain company to become the eighth largest in Hollywood?

Interestingly no longer asking a certain question, Nancy has completely forgotten about the meal, and slightly raised her face to look at the opposite side, saying: "In the early stage, the exclusive resources were accumulated through the purchase of independent film copyrights. At the same time, he participated in the small production of films. Later, he began to invest. Blockbuster, and counterattack the theater and TV market, this development route seems very attractive, but Simon, then?"

With a smile at the corner of Simon's mouth, he said, "If this step can be achieved, it will be a pioneering work for Blockbuster. Of course, the future will be discussed in the future. You must know that the world is always changing. The televisions in the 1950s and the video recorders in the 1970s brought fundamental changes to Hollywood. It is now in the 90s, and I think there will definitely be changes in personality in the future."

"the Internet?"

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

Some information on the Blockbuster online platform emerged in Nancy's mind. In the past, Blockbuster Online achieved revenue of over 100 million yuan. Although it only occupied about 3% of Blockbuster's annual revenue, this business was It cannot be ignored. The opposite man once described the future of the Internet to her. If it really enters a universal Internet era, the influence of the Internet platform will certainly be no less than that of the current TV network.

"I suddenly felt that I should buy some AOL and Cisco stocks."

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

"It's less than 10 million dollars," Nancy glanced at someone across from him, and said, "The salary you gave me is far less generous than Amy."

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

Nancy leaned forward slightly, joking in her tone: "Do you need to pay it back?"

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

Nancy sat down immediately, looking at the female assistant who had been quiet beside Simon, and started to complain: "Jenny, he is flirting with me."

The female assistant gave Nancy a white look, then glared at the guy beside her, but did not speak, and soon lowered her head to continue eating quietly.

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

The little child executive was not polite, and said: "Lend me 20 million U.S. dollars at a 5% annual interest rate. I will not take your things for nothing.

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

"Well, I pledged myself to you."

"Very well, I will add another 5 million to you."

"..."

Nancy couldn't help but roll her eyes.

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

Tomorrow is January 20, the inauguration of the new President Bill Clinton. Simon does not intend to appear at the inauguration, but plans to participate in some receptions after the inauguration.

Moreover, this is only incidental.

The business is about America Online.

In the new year, AOL will promote another ASDL network construction plan involving billions of dollars in investment. Simon will rush to AOL's East Coast headquarters to participate in the discussion of the final plan.