Top of the big era

Zhou Buqi and Lao Zhang will stay in New York for an extra week to completely resolve all temporary issues in the aftermath of Changyou's IPO.

Lao Zhang seemed to be on vacation, very leisurely and relaxed.

It doesn’t work if you don’t have a thorough understanding of things. Work and life are often inseparable.

Simply drag Lao Zhang along.

Today I'm going to Universal Distribution's headquarters.

Lao Zhang was very reluctant, "Distribution company? Why should I go there? I won't go!"

Zhou Buqi said: "Please, you are the chairman of Changyou!"

Zhang Chaoyang asked: "What does this have to do with Changyou?"

Zhou Buqi said: "Of course it does matter. Changyou's games want to be distributed all over the world. Do you have such industry resources? You don't, I do! I have integrated them all!"

Zhang Chaoyang didn’t believe this, “Stop talking nonsense, what Universal Pictures releases is a movie, it’s not the same concept as publishing a game.”

"The similarity is very high, okay?" Zhou Buqi knew that he had recently been involved with the big star International Chapter, and wanted to take time out to go out with the beauty, so he wanted to mix it up and let him change his taste. "The release of the movie It also includes the release of DVDs, which must be sold around the world. The release of games is also an important part, and it must be sold around the world."

The model of distributing games through DVD is very backward, with high costs, inconvenient transportation, many middlemen, and high channel fees. This is a very traditional business model.

It has long ceased to be popular in China and is all downloaded from the Internet.

However, it is different abroad. Developed countries such as Europe, the United States, South Korea and Japan have all become accustomed to the DVD trading model. For example, computer games such as "Warcraft" are downloaded from the Internet in China, but many American users still spend more than ten dollars to buy genuine DVD discs offline.

In fact, it’s not just the gaming industry, but also the streaming media industry.

Domestic streaming media platforms such as Youku, Tudou, iQiyi, and Sohu Video are developing much faster than Netflix in Europe and the United States.

Poor restrictions on piracy are part of the reason.

The main reason is user habits.

Just as domestic payment can be easily transferred from cash payment to the era of mobile payment, foreign countries have to stay at the credit card level. Only when the generation born in the 90s and 00s slowly grow up, will overseas gradually transform to mobile payment.

Mobile payment is more convenient than credit cards. This is an undoubted fact. As long as the timeline is extended, when the habits of the older generation have less and less influence on society, a new era will arrive.

In this regard, China has huge advantages.

However, if Changyou wants to develop in overseas markets, it cannot look at the world from a domestic perspective and must adapt to local customs.

Zhang Chaoyang was actually very interested in movies. After chatting for a while, he got in the car with Zhou Buqi and headed to the headquarters of Ziweixing Global's distribution division.

On the way, he asked: "Isn't Universal Pictures in Los Angeles? Why is the distribution department arranged in New York?"

Zhou Buqi said: "This is the east coast, closer to Europe. This is an international metropolis and more suitable for global business. I came here mainly to discuss business integration."

“Integrate what?”

"EMI Records, you know that, right?"

"Well, I saw the news and you bought it." Zhang Chaoyang nodded, "It seems that the lawsuit has been going on for a year?"

Zhou Buqi smiled and said: "It's not me who is suing, but Citigroup, who is fighting for control. If Citigroup wins the lawsuit, it will be sold to Ziweixing Global."

Zhang Chaoyang said "hmm" with a calm expression and sighed in his heart. His admiration for this boy instantly spread throughout his body.

Zhou Buqi said: "This distribution department used to be the distribution department of Universal Pictures. After I reorganized the company structure, it expanded and developed. It is a mid-level development. It will take over the work of Universal Pictures and Marvel. Pictures, Lucasfilm, MGM, all the film distribution business.”

Zhang Chaoyang understood this, "Well, maximize the use of resources, reduce costs and improve efficiency."

"Yes, I am considering whether to integrate EMI products as well."

"Music release?"

"right."

Zhou Buqi didn't hide anything.

Global distribution in different industries may look different at first glance, but they all have highly similar characteristics. To distribute movies globally, or distribute music, games, books, including Ziweixing's "instructions", you actually need to use local connections and social resources to help, acting as an agent and letting local grassroots organizations complete the work. Final sales work, such as movie theaters, video stores, department stores, bookstores, operators, etc.

This makes for a nice integration.

All forces can be concentrated to form a combined force.

At the same time, many repetitive departments and positions can be optimized and integrated, saving a lot of salary expenses.

Zhang Chaoyang understood immediately, "Through this business unit, all distribution business will be coordinated. Those film studios and music studios at the front desk are only responsible for producing good products?"

Zhou Buqi smiled and said, "Yes, that's what I mean."

Zhang Chaoyang glanced at him, "Don't you think this arrangement is risky?"

"adventure?"

"The cost of integration and separation is not cheap!"

"Why are there so many worries?!"

Zhou Buqi waved his hand, deeply disapproving.

Zhang Chaoyang said: "Didn't EMI encounter financial difficulties because of too much debt and unable to make ends meet? What if you don't manage well? Integrate EMI's distribution department into this large business unit. It will not be difficult to operate. When it is separated in the future, That would be troublesome."

If EMI Records fails to develop well in the future, Ziweixing Global will sell EMI...but EMI's distribution department is gone and has been integrated into the group's distribution department.

At that time, either EMI's assets will shrink significantly and the sale price will be very low; or it will cost a lot of money to spin off the EMI distribution business that was integrated into the distribution division.

That's complicated.

The cost will be even greater if you go back and forth.

Zhou Buqi was very relaxed, "Don't worry, times have changed, and the good days of EMI Records are coming."

"Rely on what? Digital music?"

“Yes, streaming digital music.”

"This department also publishes games?" Zhang Chaoyang glanced at him, "Can Changyou's games be handed over to this department for distribution in the future?"

Zhou Buqi said: "Digital distribution is all based on the Internet. This is very easy. It mainly involves cooperation with Ziweiyun and some online game platforms. It is impossible for Changyou to get involved in the offline distribution business. It can only be authorized to How can other agents operating at different levels compare to a business unit cluster with such powerful distribution resources?”

Zhang Chaoyang sighed, "Anyway, I plan to hand over the power. From now on, Changyou has the final say."

Zhou Buqi smiled and said, "What do you think of the city of New York?"

"ah?"

Zhang Chaoyang was slightly stunned, not understanding what he said.

Zhou Buqi said: "After the subprime mortgage crisis, the U.S. economy was in depression. The high-tech industry was the industry that recovered the fastest. Nasdaq has shown signs of a bull market and has been soaring."

Zhang Chaoyang said: "Of course, otherwise Changyou would not have chosen to go public at this time."

Zhou Buqi continued: "The future is an era dominated by technology, and the signs are becoming more and more obvious. But New York is a diversified city, with finance, fashion, music, real estate, advertising, and publishing at the top. , the technology industry is only the seventh or eighth position. This is inconsistent with the positioning of New York, the world’s largest city.”

Zhang Chaoyang reacted immediately and opened his eyes wide, "You mean New York is going to tilt towards the technology industry?"

Zhou Buqi said: “After the subprime mortgage crisis, the California government offered many preferential conditions to technology companies in Silicon Valley, including large subsidies and tax exemptions, and Ziweixing also enjoyed more than 600 million US dollars in benefits. Facts have proved that the California government’s strategy is right. The recovery of Silicon Valley has driven the entire California economy. Even the rents in Silicon Valley have been increasing, and there is a certain housing crisis.”

Don't take advantage of the bastards, especially those of Americans, then take advantage even more. And the more of these convenient conditions of subsidies and tax rebates you have, the more employees you hire and the greater the investment, the happier people will be.

Zhang Chaoyang's eyes were burning, "Is the news reliable? Are they trying to attract technology companies to New York?"

"Of course it's reliable. Ziweixing has received an invitation."

"Have you decided?"

"Of course! Ziweixing International's headquarters is in Silicon Valley, and New York will develop towards its second headquarters and reach the global market through New York. New York is the center of global distribution business of major companies."

Zhang Chaoyang said: "The cost of living in New York is too high and the traffic pressure is too great. This is a disadvantage."

"Looking at it now, the cost of living in New York is indeed higher than that of Silicon Valley. But Silicon Valley is developing too fast. In a few years, the cost of living may catch up with New York."

Zhou Buqi's tone was firm.

Zhang Chaoyang understood it as soon as he heard it, and said angrily: "You are not talking about Ziweixing International, you are talking about Changyou, right?"

Zhou Buqi laughed haha.

Zhang Chaoyang said: "You are not discussing with me at all, you are informing me."

Zhou Buqi coughed and said: "Game development does not require sophisticated technology, and there is no need to go to Silicon Valley to join in the fun. Games are different from other Internet products, and innovation is more important. The development trend of Silicon Valley, I Actually, I’m not very optimistic about it.”

"Ah?" Zhang Chaoyang was surprised by this view, "Are you telling the truth?"

Zhou Buqi nodded seriously, "It's true. In my opinion, Silicon Valley's single development model is far inferior to domestic cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou where technology companies are concentrated. The technology industry is everything in Silicon Valley, which will lead to The strange phenomenon of 'group think' is that everyone is doing similar work and reading the same things. Even if they are the best of the best, they will inevitably fall into the trap of a rabble."

"I go!"

Zhang Chaoyang was speechless. This statement was too clear.

In the current era when Silicon Valley leads the global technology industry, only "madmen" like Zhou Buqi can have such sharp and incisive opinions.