Chapter 306 The meat on the lips
When it comes to the future of the two companies, it is certainly impossible to reach an agreement quickly, and the initial contact will end without long.
Reed Hastings and Mark Randolph took the initiative to leave.
"Mr. Anderson." Reed Hastings shook hands with Ronan and said goodbye: "I need time to think about it."
Ronan smiled and said, "If you consider the result, please reply to me as soon as possible." He said casually: "Time doesn't wait for anyone, and if you can't cooperate, I will consider implementing the original plan as soon as possible."
Reed Hastings said: "I will notify you as soon as possible if I think about the results."
Ronan politely said: "Hope is good news."
Reed Hastings and Mark Randolph left the business club one after another, called a taxi, and returned to the hotel where they checked in.
Back in the hotel room, Mark Randolph asked quickly, "Reed, what did you think?"
Reed Hastings asked instead, instead, “Where are you?”
Mark Randolph said directly: "Ronan Anderson does not value Netflix at all. He does not regard Netflix as an independent company. If he cooperates with him, Netflix will only become a department of his company!"
Reed Hastings was silent because Mark Randolph was right, and Ronan Anderson meant this in and out of the words.
"You really want to work with Ronan Anderson?" Mark Randolph already felt this.
Reed Hastings did not hide from his friends and said, "Are we any other way?"
Venture capital cannot be used, and his personal resources have reached their limits. His contact with several companies such as PepsiCo not only failed, but even suffered ridicule and ridicule.
Mark Randolph kept paced with his waist and said, "We are not responsible for Netflix by turning Netflix into a supplement to the channels around the movie!"
He reminded: "Reed, Ronan Anderson does not pay enough attention to Netflix, which also means that he cannot invest enough resources in Netflix."
"I know this, and I understand how you feel." Reed Hastings smiled bitterly and shook his head: "Mark, have you ever thought about my situation?"
Hearing this, Mark Randolph couldn't help but stop and put all his energy and entrepreneurial enthusiasm on Netflix. Reed Hastings's efforts were no less than him.
Netflix can hold on until now, and the financial pressure is all Reed Hastings.
"Sorry, Reid." Mark Randolph was a little speechless.
Reed Hastings shook his head and said, "It's okay." He sighed, "Mark, if you can't find funds or help from other companies, how long can Netflix last?"
Mark Randolph is responsible for daily operations, so he is naturally very clear: "At most, by February next year, you must be lucky enough."
Reed Hastings looked heavy: "Netflix went bankrupt and was the biggest irresponsible for the company and the most important thing to do to us."
Mark Randolph had nothing to say for a moment.
Reed Hastings whispered: "Let's discuss it again, there's still some time."
On the other hand, Ronan and Garcia Rodriguez returned to Embassy Films.
"Will they accept our conditions?" Garcia asked.
"As for the current situation, Reed Hastings has no better choice," Ronan said.
Garcia nodded and once again couldn't help asking the doubt in her heart: "Is Internet DVD rental really the future of DVD rental?"
"This market prospect is broad." Ronan said simply: "Now the pace of life is getting faster and faster, and many convenient consumption models will inevitably replace the traditional consumption methods."
Garcia didn't ask again. As an executor, the boss made decisions and tried his best to execute them.
Ronan reminded: "You go and contact relevant institutions and conduct a market value assessment of Netflix."
"Okay." Garcia responded.
Ronan returned to his office at the Embassy Film Industry and made a call to let Netflix watch over the past period of time. If there are competitors or abnormal situations, he must notify him as soon as possible.
Netflix is already at the mouth of his mouth, so he must not let it go.
Now is the best opportunity. If Netflix survives the most difficult stage at present, it will inevitably attract the attention of other investors.
Ronan remembers that Netflix turned losses into profits for the first time in 2002.
Of course, Netflix had a long period of losses, but in 2002 people saw the unlimited potential of Internet film and television rentals.
As for Netflix's later famous homemade drama business, that was even more distant.
However, Ronan is already considering that he may be able to develop this business in advance after the hardware conditions permits.
It doesn’t require Netflix to shoot by itself. Netflix can be commissioned by Shahai Entertainment to shoot and produce, and then play it on Netflix’s platform.
In this way, Netflix can also get involved in the Internet video business in advance.
In his previous life, this piece was also a huge cake, and it was a job that Ronan had been working on later.
Ronan is also considering whether the oil-bull can be combined with Netflix? After all, there is no fundamental conflict between the two businesses.
Of course, this is just the idea that stays in Ronan's mind. Whether it can be implemented depends on the actual situation.
In the future, Netflix will inevitably become a streaming media company, providing exclusive excellent series, movies, documentaries and short films worldwide.
Later, Netflix's main revenue came from monthly subscription fees, with streaming services as the main source. The original main business DVD rental has been declining under the impact of the Internet wave, and its revenue has continued to shrink.
This has led to Netflix's high investment in content production, which has brought serious financial pressure and has even been called "blood loss".
At that time, Netflix's biggest burden was also a high investment in film and television production.
One of the characteristics of film and television production is that at first, a large amount of cash is invested at one time to produce content, then the content is distributed through various channels, and the cost is gradually recovered to achieve profits.
Due to the way financial statements are prepared, this expense is not included in the expenses in the income statement, but is included in the content assets after production is completed and then amortized year by year.
Financial "blood loss" has always been one of the main reasons why Netflix was shorted. Specific "crimes" include: revenue growth cannot keep up with cost growth, international departments lose money and make a name for themselves, operating profit margins continue to decline, cash outflow scale continues to expand, content investment increases faster than user growth, etc.
According to Ronan's idea, if Netflix joins the Relativity Entertainment Group, this situation will be greatly improved in the future. Compared with the identity of a novice in the film and television industry in previous lives, Shahai Entertainment will be in charge of the production, which will be more conducive to achieving resource optimization among the group companies.
Netflix's biggest production problem will inevitably be solved to a certain extent after combining it with a mature production company.
As for the uncertainty of film and television production, it is not a problem for Ronan in at least the last twenty years.
In his previous life, Netflix produced many fine products, but actually many failed.
For example, "Marco Polo", Netflix's self-made drama with the title of "the most expensive online drama in history" suffered an extremely painful failure, which brought huge losses to Netflix.
There are also some later Marvel series, which had to cut off the stop loss because they were too far away from expectations.
This drag can be minimized in Ronan's hands.
In addition to Netflix, Ronan has other plans on the Internet, which is why he has not used funds for relativity entertainment.
One of the plans is the media industry. The traditional media industry has been divided up long ago. It is too difficult for latecomers to enter and grab cakes, so Ronan's goal is Internet media.
And it is a media website mainly based on Hollywood and celebrity films.
Ronan is formulating a plan in this regard, but if he wants to implement it, he has to wait for Netflix to achieve a result.
In contrast, Netflix's channel is more important.
Even after Netflix combined with the traditional film and television production companies in his hands, Relativity Entertainment can take a different path from the six major companies.
There are both traditional channels and new channels, and unlike DreamWorks, which are pressed tightly on the distribution channel.
After sorting out the situation about Netflix, Ronan then went to the theater distribution department of Embassy Film and learned about the release of the film in 2002 from Thomas.
Due to Ronan's secret interference, Embassy Pictures did not release a single film in the second half of 2001, and the distribution plans were concentrated next year. Starting from February next year, films such as "Resident Evil", "Legend of the Night", "Death Comes 2", "Hurricane Rescue" will be released one after another.
In addition, the production of sequels such as "Human Clearance Project 3" and "Deadly Bevel 2" will also be put on the agenda.
In terms of production, the top priority is "Spy Shadows 2" and "Pirates of the Caribbean". The former will start filming early next year, and the latter will be successfully prepared under the auspices of George Clint.
Next is the TV series. The crew of "Grey's Anatomy" has been established, Ronan serves as the first producer and Shanda Remus serves as the second producer. However, the crew is basically led by Shanda Remus. She is not only a screenwriter, but also directs pilot series.
Of course, Ronan would not give the crew entirely to one person, and Andrew, as the producer, also joined the crew.
Since Caa has helped contact ABC TV, as long as the pilot can be passed, the broadcast of "Grey's Anatomy" on ABC TV is not a problem.
This is also the benefit of working with large brokerage companies.
Unfortunately, the hardware conditions of the Internet are not very suitable, and Netflix currently does not have this business, otherwise it would not have to enter the TV station's playback channel.
Ronan knew that he was thinking a little too much. In the middle of the afternoon, he emptyed his head and got off work early, took Bentley Eslite to Los Angeles International Airport, and went to pick up Anne Hathaway in person.
Chapter completed!