Hollywood legendary director

Los Gato, California.

Netflix headquarters.

Patty McCord, who was the chief talent officer of Netflix at the time, stood upright and looked calm, as if she was not talking about the company's direction recommendations and the more disruptive promotion of the personnel system.

In fact, Netflix's success is closely related to its unique corporate culture.

For example, the cancellation of the vacation system, reimbursement system, and travel system mentioned at this moment, and even the establishment of a headhunting agency within the company, to manage employees like products.

It is even more clear why it is necessary to attack the traditional corporate culture.

Co-founder and CEO Reed Hastings thought slowly, nodding affirmatively from time to time.

The implementation of this theory is what he has always wanted to do, and he will indeed gather the core of Netflix's execution.

However, regarding the online broadcasting platform...

"Will it be a bit early?"

Reed Hastings pondered for a long time, but still didn't make up his mind.

Netflix is ​​not even mature in its DVD rental business. It hastily entered into other fields. It has a shallow foundation and is too risky. For Hastings, the overall plan is correct, but the timing is wrong, and it affects each other. Next, I can’t see my own advantages.

Patty doesn’t have any words that don’t make the transition, nor does he talk about the wealth and insurance. He just makes an expression based on the market. "After Google acquired YouTube for 1.65 billion US dollars the year before, it has successively cooperated with Universal Music, SonyBMG, Warner Music and CBS have reached a content authorization and protection agreement to relieve the market's doubts that content providers may pursue infringing content and raise legal actions.

Until today, the main YouTube video content has included movie clips, TV shorts, music videos, etc., as well as amateur videos made by other uploaders. The daily active number has exceeded 6 million people... We are one step slower than our opponents. What are the advantages of Netflix?"

Reed Hastings frowned. After all, this matter really concerns Netflix's future.

You know, YouTube, which is still developing at this moment, and Netflix’s main business do not overlap, but YouTube has begun to invade Netflix’s field-online DVD rental.

After all, Netflix has always been playing the filming highlights and the distribution of film and television content.

Moreover, the offline share in this field is still the largest share held by Blockbuster, and Netflix's food is high-quality service.

I think that when Netflix was founded, it was just because they went to Blockbuster stores to select DVDs. The clerk's service attitude was arrogant, and their delivery method was problematic. They always put the hot movies in the most prominent position, some old movies. Not paying attention at all.

Therefore, they founded a company that can freely search for movies, then place orders for DVDs through the membership system, and deliver them in the form of courier points.

The main users of Netflix's online rental are netizens who have grown up with the Internet era.

Now, what YouTube wants to win is also this part of users, even if YouTube does not involve online rental, let alone the development of distribution outlets, but who knows when they have this idea?

If you really fight, you will be passive.

That's what Patty McCord wanted to say.

"Hey, let's have a meeting, and decide how to go first."

Don’t think it’s easy to upload the content of offline video disc resources you have mastered to online platforms.

Want to transform, there are many problems.

Hastings just thought, but took several points into consideration without implementation.

1. Netflix and content providers (such as the Big Five, Firefly, Lionsgate, and Blockbuster) only signed the sales agency for the copyright of the video. The copyright of the film is not Netflix. After all, Netflix does not make film and television dramas. It's just one of the platform parties of offline channels. If you want to play online broadcasts, members pay to make money. How should the profits in this area be distributed?Are content providers willing to support it?

Second, if you want to move to the front line, you must drastically optimize the user experience, develop personalized recommendation algorithms for online platforms, and achieve the same convenience as DVD rental business push. The reason why Netflix can go to the present is more than Pepsi If it weren't for the better service of DaDa, it would have closed down early. In terms of agency film sources, there was no room for comparison with DaShiDa at first.

It's just that Blockbuster's own management is rigid and the structure is bloated, otherwise there will be no other people.

Third, the company's business transformation will inevitably affect the existing company management and departmental business.Also come up with a plan.

......

Of course, the most important thing is to reach an agreement with the various content providers. If there is no content support, they will play online.

Seeing that her idea was approved, Patty turned around and went to inform.

Netflix, it is indeed time to have to change.

......

Lehman quickly learned about Netflix's plans, mainly Viacom Group, News Corporation and the top five notified content providers one by one and listened to their opinions. Fortunately, Firefly has already been listed. The power of the table to speak.

Of course, Lehman is not unfamiliar with Netflix, but he never thought about contacting this company in advance, mainly because it was of little use.

Netflix went public in 2002. There is no shortage of funds. Perhaps Lehman at that time still needed to hug Netflix's thigh.

In addition, why Netflix pays much attention to a second-rate studio. People eat large quantities of DVD rentals, and they don’t.

DVD rental business has always been a gold mine, and those eligible to operate gold mines are mainly Viacom’s Blockbuster, AOL and Netflix. Netflix has not been allowed to do so until it is approved by the Wall Street Investment Bank. Face.

Until the IPO and financing, there are many capitals behind it-like the shareholders behind Softbank there is Murdoch Group (Paramount), Redstone behind Sequoia also has equity participation (Universal), and the parent companies of many studios In business, Netflix is ​​certainly qualified to be a second-hand dealer and profit through channels.

Throughout the Hollywood offline market, studios are circulating capital and redistributing benefits with these channel dealers every day. A set of rules has been formed, and everyone’s interests are guaranteed. After all, the studios produce content and channel shops. Set content, this is a cooperative relationship.

Now, Netflix wants to launch a streaming media service, and wants to talk to everyone, become an Internet pay TV, movie distributor, and mainstream movies and TV series can continue to maintain a highly synchronized frequency, and concurrently operate DVD online rental.

Content procurement is the most common solution for content richness since Netflix was founded. It is no exception to the cooperation of streaming media platforms. This is also their inherent advantage in their transformation, because Google behind YouTube can talk to studios. The big guys are not so friendly.

As a content provider, because it is an upstream industry chain and dealing with channel providers like Netflix, you can earn a steady share of sales. Of course, content providers like to see this-anyway, DVD and home entertainment, they have always been To be a member of the industry, you can earn money.

As for Netflix's competition with YouTube for the market for film and television content, the studios certainly don't care. Whoever can pay for the copyright can work with anyone.

The relationship here is also complicated.

Offline has long been monopolized by several companies, and these companies are involved with each other. For example, Sony has reached a cooperation with YouTube, but it does not shy away from cooperation with Netflix.

The market overlaps, who can insist until the end, anyway, there is no one dominant.

After all, at the beginning, Blockbuster even endured and adjusted Netflix. What was it afraid of? Redstone acquired Paramount in 1993. In 1994, it spent 8.4 billion US dollars to acquire 81.5% of Blockbuster’s shares. Almost have a certain content monopoly in Hollywood.

By 1997, the combination of Blockbuster + Paramount and Viacom was backed by Viacom. Redstone occupied more than 90% of the offline market. Among them, Blockbuster had more than 60,000 employees. Established more than 6,000 DVD distribution points at home and abroad.

However, in the new millennium, as News Corporation and other capitals have successively entered the Hollywood market, and Internet giants such as Google and Amazon have also seen the huge potential of the content market, it has long become a pattern of multiple strengths, and Blockbu can not keep up with the trend. , Personnel affairs are bloated, difficult to manage, and rapidly decline.

In other words, there are many channels in the content market, and they all have strengths, but the status of studios has risen, and high-quality content is even more sought after.