At 12:25 noon, Netflix successfully placed its 100th order, and the whole company was full of joy. During lunch, Tao Yushu specially prepared several bottles of Cabernet Sauvignon from 1986 for everyone.

Because the website has been ordering continuously, meals must be carried out in batches.

Mark Randolph and Tao Yushu sat together, "Your and Mr. Lin's decision were extremely correct. I really didn't expect that Netflix would be so popular on the first day of the online launch."

In the past month, Lin Chaoyang and his wife have come to Netflix twice a week and have given them a lot of opinions, including server expansion.

Everyone has discussed how long it will take for Netflix to complete 100 orders. Mark Randolph’s expectation is 1 month.

He greatly underestimated Netflix's appeal to movie lovers.

If he had followed his ideas, the website would likely crash today.

"Today's hot orders don't mean anything. We will have to see the performance in a few days. In terms of business model, we are no different from Blockbuster. We are nothing more than moving offline things online.

Many customers just look at it new. We must want to break through the existing business model. There must be no mistakes in the subscription model."

Listening to Tao Yushu's words, Mark Randolph's face suddenly became serious and his body was filled with pressure.

The boss is right. Moving offline audio and video stores online is of course an innovation, but it is far from being subversive.

Walking along the old path, they are at most imitators of Blockbuster.

Not to mention surpassing, when Blockbuster reacts, it is a question whether Netflix can survive.

Over the past period of time, he and the company's managers have also been considering Netflix's future path, and everyone has brainstormed many ideas.

The most important thing that everyone values ​​is the "subscription" model. The so-called subscription model refers to allowing users to 15.99 per month.

Rent 4 DVDs at a time at USD, and borrow as long as you want.

The benefits of doing this are obvious. From the website perspective, monthly rental not only drives users' long-term consumption habits,

It also reduces the workload of DVD out and inlet.

From the user's perspective, they can do not need to calculate the rental time or pay for possible overdue fees.

But this idea was immediately questioned by everyone.

People are very busy nowadays. What should I do if Guans throws the DVDs they have seen into their email and forgets to renew their leases?

This model is equivalent to Guanmen Netflix paying $80 for each user first, which is too expensive.

The continuous problems of breaking the problem make the idea of ​​"subscription" completely unrealistic, and in the end, Mr. Lin's words made everyone clear away the clouds.

"Subscription this model sounds like a mistake, which is equivalent to the user's home becoming our warehouse, which sounds very beautiful."

Mr. Lin’s idea was not very special, but this reverse way of thinking made people feel brighter.

That's right, when the user's home becomes Netflix's rental library, the two parties have generated new links.

As for other problems, they have become secondary, and Guan can find ways to solve them.

The subscription model is the focus of Netflix's website to promote next, and Guanmen's wrinkle was launched as soon as it was launched. It wanted to use this period to check defects, streamline the process, and summarize experience.

The subscription launch time node set by Tao Yushu for Netflix is ​​September 19, which is the time to truly determine whether Netflix can subvert the industry.

In order to promote the subscription model, the boss has formulated a crazy marketing plan for Guans.

"We will do our best!" Mark Renjiff said a few seriously.

That night, Tao Yushu stayed at Netflix until 10 o'clock.

When it launched 12 companies, Netflix received a total of 206 orders, including 169 sold and 37 leased.

At 3 pm, Netflix staff delivered all the goods that were ordered before 2:30 to the post office.

1 After this day's data, everyone can judge that most users still have a good attitude towards online rental video tapes, and more of them, Netflix has regarded it as the online shopping model that has just become popular now.

But today we finally got a good start, and everyone was full of joy. When Tao Yushu promised that everyone's bonus would double next month, the office was filled with laughter.

Tao Yushu returned to the hotel room with a little fatigue. Seeing Lin Chaoyang actually here, she asked in surprise: "Why are you here?"

"In the morning, you Gang Kang said you left. I called Qi Xu and he said you are back today. I want to come here to accompany you."

"Netflix is ​​too busy going online."

Speaking of Netflix's launch today, Tao Yushu's face became excited and pulled Lin Chaoyang to talk about it for more than half a day.

In Tao Yushu's concept, Netflix's founding is definitely a recreation of "Lin Family". No matter how much it is, it cannot be overestimated. According to today's situation, most users still use it as a DVD online sales website.

You are right, the promotion of the subscription model is indeed necessary."

Lin Chaoyang listened quietly to her thoughts. After she finished speaking, she said, "It's 12 o'clock, go to bed early,

You will continue to fight tomorrow."

Tao Yushu smiled brightly and nodded.

Time passed day by day, and Netflix was launched for 2 months in a blink of an eye.

Tao Yushu sat in Netflix's conference room, looking at the website's summary data, his face was unpredictable.

In the first month of its launch, Netflix earned $167,000 in sales, which is perfect for a startup.

By the second month, sales climbed nearly 50%, reaching $251,000.

But what made Tao Yushu feel optimistic was the rental income.

In the column that says "rent income", the numbers "1,429" and "2,273" are particularly dazzling.

The nearly 1% rental-to-sale ratio made Tao Yushu feel a little dazed for a moment, as if online sales were the fate that DVDs should have been tried.

Mark Renjiff and Reed Hastings, who were beside him, looked at the boss's ugly face and felt guilty.

For this website, the boss has invested a lot of effort and money.

And the people are getting high salaries, and now the company's first month's performance is released, of course, it's a remarkable place.

But there was a problem in the boss's most important point, which made Guan and both felt that it was easy to explain.

The two lowered their heads and waited for the boss's criticism, but Tao Yushu had not tried to speak for a long time, which made the two more worried.

"It only costs $4 for users to rent DVDs, but it costs $25 for users to buy a DVD.

The good news is that in terms of order quantity, the ratio of sales and rentals is not as exaggerated as it seems.

However, the unit price ratio of rental and sales is more than 6 times, and users still choose to spend more money to buy video tapes. It seems that our service has not gained the trust of users."

Mark Renjiff nodded with difficulty.

"It's like this. In the eyes of those users who are brave enough to try π, we have no difference from traditional audio and video stores.

But because of the certainty of online shopping and mailing, Guans are more inclined to buy out services at one time.”

Reed Hastings followed Mark Rengiff's words, "At present, in addition to optimizing the process and service quality, we should implement the subscription model as soon as possible."

Tao Yushu tapped on the armrest of his fingers gently, and the conference room was quiet, with Mark Renjiff and Reed Hastings waiting for Tao Yushu's decision.

"These data have proved that the current path is going well.

It is true that the price of videotapes is more than 6 times the rent, but the most important thing for users is still the movie viewing needs, and Kang is the purchase needs of videotapes.

The video tape can only be sold once, but it can be rented out ten times or hundreds of times. How many times can we deviate from Ya?

Kangyong will wait any longer. Let’s start testing the π subscription model tomorrow and strive to officially launch it next month.’

Listening to Tao Yushu's orders, Mark Renjiff's heart was calm. In fact, seeing Netflix's data over the past two months, Guan was very hesitant. In the end, he still had to insist on leasing-based business.

But since the boss Tao Yushu insisted, Guan didn't try the psychological burden.

Tao Yushu looked at FutureFantasy's monthly report, an online bookstore she bought to practice for Mark Renjiff and others in the past year.

Sales reached US$135,000 last month, and sales exceeded US$100,000 for three consecutive months.

This month, I even went to the list of the top ten popular websites selected by Point Communications.

Point Communications is an independent organization that ratings Internet sites. FutureFantasy is ranked second among book-related websites, second only to Amazon, the most popular this year.

"Teach Lin, Amazon received $8 million in financing from KPCB two months ago, and now it is in full swing. The media expects that the sales of the People this year will exceed $5 million. FutureFantasy's financing will be delayed."
Chapter completed!