The Best Entertainment Era

Inside Netflix's new office building in San Jose.

Netflix CEO Mark Randolph is looking at a plan, which is a plan related to the future development of Netflix. In addition to the current Internet video rental business, there are two development plans for online video and Internet social networking .

This does not surprise him, because since the second half of last year, he has frequently heard him mention this aspect in the communication with Ronan, and he has already been mentally prepared.

There was a knock on the door, and Ronan and Robert Iger walked in together.

Mark Randolph hurriedly greeted the two: Morning, Ronan. Morning, Bob.

Ronan and Robert Iger responded politely, then sat on the sofa and started a work conversation.

Netflix developed very well last year. Ronan said directly: I hope Netflix can continue to maintain this momentum of development this year, and at the same time prepare to open up new businesses.

In this regard, plans were made before the acquisition of Netflix. Since Christmas, I have been exchanging opinions with Robert Iger, and then specified this preliminary development plan, which was discussed with Netflix.

Robert Iger said: Netflix's business is relatively simple. Once the DVD industry fluctuates, Netflix will inevitably face huge risks.

Mark Randolph naturally wants to expand Netflix's business, but as the company's CEO, he must remain rational, saying: Netflix is ​​just on the right track, and now it is a bit radical to expand the business rashly?

Ronan smiled and said: Mark, I know what you are worried about. This is just a plan, and it is a preliminary plan. Next, we must conduct market research, project inspections, internal discussions, and formulate detailed plans. And the time to start is next year.

With a year as a preparation period and a buffer period, Mark Randolph will have confidence.

I will discuss it within the company. He no longer hesitated: Then set up a project team to promote the preparatory work.

Ronan nodded, and then said: Robert and I conducted a special discussion based on market research data and the development of the Internet. Internet video and download services are developing rapidly, just like the impact of DVD on the traditional video tape industry. It will affect the DVD industry within ten years at most. Bring a huge impact, and even bring about the decline of dvd.

Robert Iger added: You know better than us how fast the Internet is developing. Ronan made an idea. If there is a website that can directly provide high-definition online on-demand services, can Netflix's rental business continue to develop? ?”

Although limited by hardware and bandwidth, Internet video-on-demand has not really become popular, but Mark Randolph has seen the lightning-fast development of this industry. Let alone ten years, five years may see earth-shaking changes.

If you can sit in front of the computer and click on the video to watch high-definition movies, who would like to wait for a day to receive the DVD before watching it?

Mark Randolph felt a real threat, a danger that would kill Netflix for good.

The plan in this area is very necessary. Mark Randolph said very seriously: We can't wait until a new industry has flourished to transform, like Blockbuster, it will be too late.

Luo Nan pointed to the plan and said, Currently, there is no company that specializes in online video business on the Internet. Let's take the first step, and we may lead step by step in the future.

Robert Iger answered: The Trailblazers are taking a dangerous path, and if they succeed, they will have a huge advantage.

Mark Randolph no longer has questions about the Internet video business, but asks instead: Internet social...

Ronan simply said: You must be familiar with this aspect. Chat rooms, forums, and blogs are relatively mature online social carriers. Especially blogs, their appearance has almost changed the Internet. Our goal, It is a network social carrier that is more refined, faster, and faster to share and disseminate than blogs.

Mark Randolph listened very carefully,

Through the contact in the past year, he knew that Ronan was definitely a layman in the Internet industry at the technical level, but his vision and ability to judge market changes were more than excellent.

Ronan said that in 2002, the dvd industry, especially film and television dvd, will have a huge development, which is indeed the case.

In 2002, the sales of DVDs in the Hollywood film and television industry alone increased by more than 50% compared with the previous year.

Correspondingly, the sales volume of DVD players in 2002 has increased by one and a half times compared with 2001, and the price has dropped from nearly 500 US dollars to less than 200 US dollars!

This also allows dvd players to be popularized at a faster rate in the future.

Listening to Ronan's words, Mark Randolph nodded frequently, because what Ronan said can all be realized through the Internet, once it is realized...

The whole world will change for it!

Mark Randolph was very excited, but he also remained calm enough. The future seems to be bright, but that is just the best idea. If you want to realize it, you need a lot of down-to-earth and complicated work.

The risks involved are also great.

At this time, Ronan said again: My vision is to build Netflix into a streaming media enterprise that integrates personal photo and video publishing, movie and TV video subscription, and online social networking and sharing!

Mark Randolph and Robert Iger didn't speak, but were thinking carefully about Ronan's words.

The two thought of the same aspect. Once these are realized, Netflix will become a giant in the Internet industry.

But the future is bright, and it is not easy to realize it, and the difficulties and risks involved must also be considered.

And the plan is just a plan. If you want to turn it into a real project, you must do a lot of preliminary research and market demonstrations to verify that the plan really has the value of the input.

In the next few days, Ronan and Robert Iger stayed in San Jose and held frequent meetings with Netflix's top managers to discuss future plans.

It was not until the eve of the Golden Globes that the two boarded a flight back to Los Angeles together.

There are not many passengers in the business class, and Robert Iger is still discussing the previous development plan with Ronan.

Have you thought about it, Ronan. Robert Iger said bluntly: To achieve the plan, Netflix will need a lot of money.

Ronan nodded and said: I know. Now Netflix has a library of more than 2,000 movies and TV series copyrights. In terms of new dramas and new movie production, Shahai Entertainment is the support. Don't worry too much about the content. Really The biggest obstacle is undoubtedly funding.”

Robert Iger also reminded: I have carefully studied social media such as blogs. The initial investment is huge, but it is difficult to see effective returns. Funding is a problem we must solve.

Ronan had thought about it a long time ago, and said, Bob, if we choose a suitable opportunity to let Netflix go public for financing?

If you want Netflix to become a veritable Internet giant, it is impossible to do it with the power of Relativity Entertainment alone.

As a modern enterprise, it is actually the best choice for Netflix to go public for financing.

Robert Iger is an excellent business manager, of course he will not object, reminding: Choose a good time.

Ronan said very seriously: It's too early to say these things. Even if it goes public, we have to wait for Netflix to build a framework that is recognized by people.

Robert Iger nodded first, and then turned to say: Ronan, have you ever thought about it, if the online video subscription business really develops and achieves your planned goals, it may have a huge impact on the traditional film and television industry.

It is possible. Ronan said with a smile, But even if everything goes well, Netflix will not be able to subvert the traditional film and television industry in a short period of time. Relativity Entertainment itself is a representative of the traditional film and television industry. The possible advantages are combined with the advantages of the film and television group, so that the two sides can effectively complement each other.

Advance payment to the traditional film and television industry is easy to say, but it is not so easy to do.

The United States is better. Even if it is resisted by many Hollywood companies and directors like Spielberg like Netflix, it can still develop relatively freely.

However, in many overseas regions, it is very difficult for Netflix to develop its business.

For example, France.

France has strict legal restrictions on the exposure of a movie on various platforms: from the time the movie is released in theaters, it can only log on to the video-on-demand platform after 4 months, reach cable TV after 10 months, and reach wireless TV after 22 months. It will take 6 months to appear on the streaming platform.

Netflix is ​​at the end of the chain.

The turmoil caused by Netflix, in various senses, is also a conflict between two cultural values, and a challenge to traditional media by the growing streaming media platform.

The more important reason is that a film has a protection period between its release in theaters and its release on the Internet, and each country has different requirements for the length of the protection period.

European countries like France have legislation on movies, which determines that for all blockbuster movies shown in theaters, a certain percentage of box office revenue will be paid in the form of film tax. For Hollywood blockbusters, this tax rate is even higher.

All these incomes will be used in the state's support for art films.

In the United States, this does not exist at all. There is no special film tax to support artistic innovation, and there is no government intervention. The development of all films and theaters is based on absolute commercial laws.

Therefore, Netflix once caused much less resistance from theaters, industry and politics in the United States.

In Ronan's last few years on the other side of the Pacific Ocean, the revenue capacity of many online movies and TV series has completely surpassed traditional platforms such as theater movies and TV stations.

The knock-on effect of this can be imagined.

The road ahead is very difficult, but Ronan has no intention of backing down. If he wants to break the rule of traditional giants, he must use methods other than traditional ones.

As long as Netflix has enough paying subscribers, it can bring a whole new dimension to Ronan.

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