Hollywood Hunter

Nancy Brill had ambitiously hoped that Blockbuster would achieve US$5 billion in revenue in three years and occupy half of the video market.

In 1991, Blockbuster's revenue was USD 2.31 billion.In 1992, Blockbuster's revenue scale 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 high-speed growth of the global video tape market, Blockbuster has no problem in achieving the same growth rate as in 1992.The same growth rate of 45% means that BesTV's full-year revenue in 1993 is expected to be close to US$5 billion.

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

Although some deviations are unavoidable, for example, a large part of the estimated $5 billion in revenue will come from the same high-speed growth in movie peripheral product revenue, but Blockbuster continues to expand, scraping half of the video market share, but only one Time issue.

Any company that has more than half of its market share in an industry must consider finding new points of performance growth.

In the original timeline, after becoming a oligarch in the industry, BesTV also tried diversified expansion, set foot in the recording field, operated cable TV, and even opened a theme park, all of which ended in failure.

The bloated and inefficient video chain giants in the memory of Blockbuster and Simon are now completely two companies.

However, with the expansion of BesTV'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 Simon's next expansion route for Blockbuster.

At the same time, Blockbuster provides a new set of distribution channels for small and medium-sized film producers, which is also conducive to Daenerys Entertainment to further strengthen the control of Hollywood film distribution channels.

"Individually producing and distributing movies, the improvement of Blockbuster's revenue is only the most basic kind of promotion. Having exclusive content can not only further increase Blockbuster's brand awareness, but also enhance the user's adhesion to Blockbuster. It’s more than one thing to avoid the loss.”

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

After listening to Simon, Nancy Brill said, "However, Simon, the risk of independent production is very high. The reason why many second- and third-line filmmakers in Hollywood go bankrupt is that they cannot see their position clearly and dabble in blindly. Production area."

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

"But as far as I know, the new line 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 BesTV. The current comprehensive strength of BesStar is better than 7 Columbia and MGM are even stronger and have sufficient funds."

Nancy also pointed out a very critical issue: "The exclusive use of video channels, the lack of theater screenings and TV broadcasts that can enhance the popularity of the film, have greatly limited the scale of the film produced by Blockbuster, and it is difficult for us to bear. Blockbuster movie production."

Of course, Simon also considered this matter, saying: "So, in the early stage of the plan, Blockbuster mainly focused on'distribution'. By buying out the film company, it has completed the form of film copyright, expanding its exclusive content, and trying to invest in water alone. Low-cost movies. Once Blockbuster's strength is further improved, and it has established a global foothold, you can try large-scale production. Moreover, Blockbuster personally participates in film production, in fact, it does not necessarily require a complete video channel Monopoly can still be distributed in theaters and television, but it is exclusively owned by the BesTV family in the video channel.

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

"I also thought about doing this," Simon shook his head and said, "However, first of all, the current strength of Blockbuster is not enough to fully stimulate the commercial potential of a Daenerys entertainment big-sell film in the video channel. This is The most important point. Secondly, Daenerys Entertainment’s market share is now high enough. If you do so, it is likely to attract antitrust lawsuits from other video chain companies."

Exclusive content is common in Hollywood movie distribution.

During the theater distribution process, some powerful theaters often demand the exclusive distribution rights of a film manufacturer.There are many similar cases in video chains, television networks and other channels.

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

For example, if Daenerys Entertainment handed out "Wonder Woman" at the box office last year to Blockbuster for video channel distribution, let's not say whether this chain company focusing on rental business can completely release " The commercial potential of Wonder Woman cannot be intervened by other video tape manufacturers such as Wonder Woman.

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

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

Hollywood has about 500 movies that can enter the cinema every year, but the actual number of movies produced has more than doubled. These movies that cannot be distributed in the cinema can only be distributed on video or television.There are even some film producers who don't even want to publish in the cinema. They specialize in the video tape and TV markets from the beginning. Relying on the strong demand for content in these two fields, many small film producers also live very moist.

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

Prior to the annexation of MCA, Daenerys Entertainment had basically jumped to the ranks of the eighth largest studio in line with the seven traditional Hollywood studios.

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

In Hollywood today, Daenerys Entertainment not only occupies nearly 40% of the market share in movies, but also indirectly controls MGM, although this company is supported by Daenerys Entertainment, last year’s movie market share It is still only 7%, but it is still one of Hollywood's old major movie companies.

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

Even if the Westeros system has a deep interest relationship with the incoming Bill Clinton, the threshold of antitrust cannot 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 a strategy that Simon has previously set.

Further expansion of Blockbuster is another strategy for Simon.

First of all, even the current strength of BesTV is not weaker than some Hollywood studios, and there is no lack of room for further expansion.Second, the apparent nature of the video chain company can allow competitors and federal regulators to ignore the company's threats.

Finally, there is another point. Netflix, which was originally a time-space company, completed the counterattack on Hollywood with the positioning of a video rental company and became a super media group alongside Disney.

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

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

Therefore, it is definitely not possible to copy the Netflix model completely, and Blockbuster must also develop a development path that is unique to itself.

Several other major Hollywood film companies have been miserable under the cutting edge of Daenerys Entertainment. Simon tried to make Blockbuster into Hollywood's "eighth largest". This kind of thinking must be the less people know the better.He didn't expect it, but just talked about his own ideas, and Nancy would make an inference and see through his intentions directly.

Seeing Simon not answering, Nancy knew she was right.

Eighth largest.

Daenerys Entertainment has already occupied 40% of Hollywood’s market share. Because of the close cooperation with MGM, Nancy also knew that this originally broken film company, although stranded on the signature 007 series, 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 exceeded that of Colombia and Paramount, and further development is just around the corner.

Controlling the two major Hollywood movie companies, the expansion of Westeros in Hollywood has clearly reached an extreme.

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

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

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

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

But is it really possible for a video chain company to grow into the eighth largest in Hollywood?

No longer asking a certain question, Nancy has completely forgotten to eat, and slightly looked up at the opposite face, saying: "In the early stage, I acquired exclusive resources by purchasing the copyright of independent film producers. At the same time, I participated in the production of small films, and began to invest in the later stage. Blockbuster, and counterattack on the cinema and TV market, this development route seems very attractive, but, Simon, then?"

Simon smiled at the corner of his mouth and said, "If this can be done, it will already be a pioneering activity for BesTV. The future will, of course, be said in the future. You must know that the world is always changing. TVs in the 1950s and video recorders in the 1970s have brought fundamental changes to Hollywood. Now, in the 1990s, I think there will definitely be things that change in personality next."

"the Internet?"

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

Nancy’s mind comes with some information on the BesTV Online platform. In the past, BesStar Online achieved revenues of more than 100 million. Although it only occupies about 3% of BesStar’s annual revenue, this business It cannot be ignored.The man on the opposite side once described the future of the Internet to her. If you really enter the era of a nationwide Internet, the influence of the Internet platform will definitely be no less than that of the current TV network.

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

Simon smiled: "How much do you have in your hands now?"

"It's less than 10 million US dollars," Nancy said with a glance at one of the guys across from him, "You're not as generous as Amy's salary."

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

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

Simon admired the delicate little face across from the dining table, with a hint of teasing in his voice: "It's okay not to be yet."

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

The female assistant gave Nancy a blank look, then stared at the guy next to him, but didn't speak. She quickly bowed her head and continued to eat quietly.

Seeing Nancy's complaint invalid, Simon raised her chin provocatively towards her.

The younger child executive was polite, saying: "Lend me $20 million, calculated at a 5% annual interest rate. I won't take your things for nothing."

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

"Well, I mortgaged you."

"Very good, I will add 5 million to you."

"..."

Nancy couldn't help but lose her eyes.

After having lunch, Simon handled some trivial matters and set off for the east coast again.

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

And, this is just incidental.

The business is about AOL.

In the new year, AOL will promote another ASDL network construction plan involving billions of dollars of investment.Simon is about to rush to AOL’s east coast headquarters to participate in the final plan discussion.