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Chapter 1433 Compensating for Weaknesses
In Zhou Buqi’s advance plan, Ziweixing Global was just an auxiliary tool for the streaming media platform.
The general process is to spend 20 billion US dollars to build "Purple Star Global", and then use 3-5 years to complete the reorganization and manage it well.
Next, Ziweixing Global will transform towards the Internet, actively cooperate with streaming media platforms, and be mutually beneficial with Netflix, so that these Hollywood managers will realize the benefits of cooperation with the Internet.
At this time, Netflix's market value is already about 100 billion US dollars, and Zhou Buqi can provide support and promote Netflix's acquisition of Ziweixing Global!
At this time, the value of MSI Global is approximately US$35 billion to US$40 billion, and Netflix can steadily take advantage of it. After the two are combined, Netflix can completely get rid of its worries.
Why do Netflix in later generations always encounter various setbacks?
The reason is content.
In order to obtain content, Netflix has really invested all its wealth.
When there are 50 million users, the annual investment in content is US$5 billion; when there are 100 million users, the annual investment in content is US$10 billion; when there are 200 million users, the annual investment in content is US$20 billion .
Content producers all know that Netflix has money and demand, so they collectively raise prices to trick Netflix. And Netflix’s self-produced dramas cannot meet all the viewing needs of users, so they can only be purchased at high prices.
It's simply a vicious cycle.
Zhou Buqi's industrial design is to solve the crises that streaming media platforms may encounter in the future in advance, first create the largest content provider, and then join forces with streaming media.
When Netflix and Ziweixing Global merge, the new company will become flesh and blood, no longer afraid of foreign invasion, and the biggest shortcomings of the business model will be made up.
As the boss behind the scenes, Zhou Buqi is the biggest winner!
Another very important point is that it is relatively simple to operate this way.
Netflix has a very mature management team that is trustworthy. For Ziweixing Global, the main job is to produce content, gradually canceling TV stations, DVDs and other channels, and focus on content production.
Zhou Buqi only needs to put the company structure into operation in the early stages of Ziweixing Global's establishment, and then he can sit back and relax, waiting for the birth of a new Internet giant.
Relaxed and happy!
By that time, the new Netflix after the merger may have a market value of US$300 billion or even US$400 billion.
Zhou Buqi can hold at least 25% of the shares.
Properly!
The plan was perfect!
From the first day when Zhou Buqi planned to invest in the entertainment industry, this was his plan, to deeply integrate content and streaming media.
However, Son quit.
Why?
SoftBank spent so much money to build MSI Global, and then used it to make a wedding dress for Netflix in vain? That's not how this business works, so how can you turn your elbows outward?
What he means is simple, Ziweixing Global should not be an entertainment company, but an Internet company! Ziweixing Global can make its own streaming media platform!
The general logic is——
Naifei's son was always bullied outside. Zhou Buqi didn't want him to be bullied, so he wanted to find a father for Naifei. This father was Ziweixing Global.
But in Son Zhengyi’s view, this is too outrageous. Ziweixing Global and Netflix are not related by blood. They are at most an adopted son. Why should the adopted son inherit all the family wealth?
no!
The best way is for this father to have another biological son!
In other words, Ziweixing Global can build its own streaming media platform and let its own son inherit the family property. As for the adopted son...just give him a little favor!
But how hard is it to give birth to a son?
Zhou Buqi didn't want to take on such a responsibility.
He has passed the passionate years of Ziweixing's entrepreneurial period in the past few years. He no longer wants to do the hard and complicated work of starting from scratch, and maybe he has to work on the product at the bottom line.
Under the same workload, capital operation is more efficient.
Son Zhengyi is actively encouraging him to personally start a new streaming media platform... Damn it! These 10% management shares are really not free! This is really a tall order!
Zhou Buqi saw how sinister this old boy was, and frowned: "The headquarters of Ziweixing Global is in Los Angeles, in Hollywood, which is not suitable for the development of the Internet. The best option is to cooperate with Internet companies."
Son Zhengyi smiled and said: "I didn't say that we can't cooperate with Netflix. I think we can go both ways. The development of the Internet industry is ever-changing, especially in the content field. It is difficult to achieve a high degree of concentration like Amazon and Google. . Don’t put your eggs in one basket. You can support Netflix and develop your own streaming platform.”
Definitely!
If Ziweixing Global was just a content company and a traditional enterprise, it would be difficult to inflate the bubble and its valuation would be very low. But if Ziweixing Global is an Internet company that produces content, and it is so powerful, the bubble can easily inflate, and the valuation may double or triple.
From a capital perspective, no matter what you do, you must move closer to the Internet.
Zhou Buqi was reluctant and said in a deep voice: "Hollywood is very repulsive to the Internet. Hulu still relies on Hollywood, which restricts every aspect of strategy formulation."
"Isn't this a good thing?"
"ah?"
"To do industrial Internet, the most important thing is to have a mature team that understands both the Internet and the industry. Such a team is hard to find, which is where Netflix's potential value lies. Another similar team is Hulu."
Son really had everything planned.
Zhou Buqi remained calm, "You want to recruit Hulu's team?"
Son Zhengyi smiled and said: "This is an opportunity. NBCUniversal is the major shareholder of Hulu. Hulu is also the key asset that Comcast wants to acquire when it acquires NBCUniversal. I have already investigated it. Hulu's current management team is very satisfied with the existing board of directors." They were dissatisfied and failed to pass many proposals. They were already frustrated and wanted to resign. Now, Comcast wants to acquire NBCUniversal, and they are putting their hope in Comcast."
"Comcast?" Zhou Buqi shook his head, "As an operator, what do they know about the Internet? They are not much better than Hollywood!"
Son Zhengyi said: "That's right. If Comcast doesn't support them, then the entire Hulu management team may have to leave collectively. If Ziweixing Global takes over, there will be a mature streaming media team. Yes. Yes, Hulu’s management team is mainly Chinese, and I think they can work well with you.”
Zhou Buqi smiled angrily, "You are really pushing me down the abyss step by step. No wonder you agreed to give me 10% of the management shares so easily last time. This has been planned for a long time!"
Son Zhengyi coughed lightly and said slowly: "If I guess correctly, your plan is to support Netflix, and then use the high price-earning ratio of the Internet to build Netflix into an Internet streaming media giant, and then annex it through Netflix Ziweixing Global.”
"So what?"
"It's not a contradiction."
"Um?"
"As I said just now, Netflix's one-year subscription fee is only US$100, which is far from meeting the market demand." Sun Zhengyi looked calm, with a cunning capitalist look on his face, "Ziweixing Global has so much high-quality content, if only Wouldn’t it be too wasteful to license it to Netflix?”
"I go!"
Zhou Buqi immediately understood what the other party meant.
This is really a capitalist!
If all the content of Ziweixing Global is supplied to Netflix, then users only need to spend US$100 per year to enjoy unobstructed access to many high-quality contents.
In addition to Netflix’s own dramas, there are also more than 8,000 movies and more than 70,000 TV episodes from Universal Pictures, MGM, Marvel, and DreamWorks.
Is it a bit wasteful?
This is not conducive to capital making money!
If these contents are properly cut up, some of them will be available for exclusive viewing on Netflix, and some will be available for exclusive viewing on Ziweixing Global’s platform...
For example, put the "Jurassic Park" series, "Fast and Furious" series, and "007" series on Netflix, and put the "Avengers" series and "Transformers" series on the platform of Ziweixing Global. For these good-looking content, users have to spend $200 to subscribe to both platforms.
This creates more room for profit operation!
Through high-quality content, guiding users to spend more money, and subscribing to two platforms at the same time, wouldn’t this be equivalent to doubling the income? Such an operation is better than raising prices.
If the subscription fee increases, some price-sensitive users will complain, which may lead to the loss of users. However, if the subscription fee does not increase and the content is divided and placed on two platforms, this disguised price increase mechanism can easily bypass users' price perception.
Zhou Buqi thought about it for a while and gradually realized that this idea was feasible.
For families in developed countries, spending hundreds of dollars a year to subscribe to film and television programs is nothing. But this is not possible for underdeveloped countries, where copyright protection is often insufficient.
In other words, Netflix’s genuine subscription model can only be promoted in developed countries and regions, such as North America, Europe, South Korea, Japan, Hong Kong, Taiwan, Singapore, etc.
The user scale is very limited.
Zhou Buqi needs to design its future development plan at the early stage of the strategy. While actively working to expand its business to developing countries, it must also find ways to extract as much benefit as possible from wealthy families in developed countries.
Netflix prices are too high.
And Netflix is a pure Internet company, that is, you can log in to your account to watch in any country and region in the world, without geographical restrictions. In other words, prices are global, and there is no difference between subscribing in the United States and subscribing in India. If there is a price difference, there will be criminals who can play tricks, subscribe in India, and then watch in the United States, which will infringe Netflix's interests.
This makes it difficult for Netflix to acquire users in underdeveloped areas and at the bottom of developed countries. This is a flaw in product positioning.
It is necessary for Ziweixing Global to build a new platform to strategically make up for this shortcoming!
Son Zhengyi said: "ZMSI Global's streaming media business has a deeper meaning."
"how?"
"You can make a model for Ziweixing Digital Media!"
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