Chapter 347 Apple’s tragedy, iQiyi is out!(1/3)
"Is this possible?" Cook was somewhat doubtful about life.
Isn’t Xingyi Technology’s operation too cool?
The head of the customer service department nodded: "Yes, and many users also need the two annual memberships. The original price is 360,300 and it will usually not cause trouble."
Cook frowned slightly: "There are always some people who don't need two annual memberships, right? Or do they just need one?"
The customer service supervisor sighed: "If you don't need it, you can sell it to others for 250 yuan, with a price increase of 300 yuan for the package. If you sell it for 250 yuan, you will lose 50 yuan, and there will be no trouble."
Cook was silent: "..."
Then he laughed: "Wang Yi, Wang Yi, you are really good at cutting prices in disguise. Not only did your sales increase, but our sales also stopped rising, and the users didn't make a fuss. It's amazing, it's amazing! I'm amazed.
I admire you!"
The vice president also had a complicated look on his face: "Wang Yi is still so flawless in his work. It's unbelievable. It's unbelievable. But by cutting prices in disguise, they will make 300 yuan less."
Cook waved his hand: "That's not necessarily true. Even if the price is reduced by 300, the Xphone 1 is more profitable now than when it was first launched."
Nothing else. As of now, the BOM cost of xphone 1 has been reduced by about 40% compared to the first batch.
The total cost of xphone 1 plus R&D, marketing, channel and other expenses has also dropped from the previous 1,500 to 1,000.
Even if there is a direct drop of 300, the profit will be 200 more than the original.
This is the price advantage in the later stage of the industrial chain.
In his previous life, Rebus relied on this rule to make a lot of money.
When costs are high and profits are low at first, less shipments are made and marketing is hungry.
Later, the cost of components decreased, the total cost dropped significantly, and profits increased. If we continue to ship goods like crazy, we will make a lot of money!
What's more, for Wang Yi, as long as the iPhone 4s can be beaten to death and the xphone 1 makes a little less, it doesn't matter.
And those users who need Xingyi Video annual membership and Xingyi Music annual membership will continue to spend money to sign up, or directly purchase membership packages.
It can be said that this wave of price cuts will not cause much damage to Xingyi Technology, but it will be hard to say for Apple.
After all, they are cutting prices for real money!
More importantly, there was a sharp decline in sales and revenue, which caused Apple's stock price and market value to plummet.
This impact is naturally more serious.
The customer service supervisor changed the topic: "Chairman, how do we respond to our Xiaguo customers? For the 4,988 users who purchased iPhone 4s in the past week or half a month, do you want to refund them the 500 price difference?"
"Refund the price difference?" Cook smiled coldly: "If you don't refund, this precedent cannot be opened. Once it is opened, all subsequent purchases will have to be refunded, which will be troublesome."
"But they are making trouble to defend their rights..."
"Let them do whatever they want. It's not the first day you joined Apple. Apple only makes products we want to make and cannot compromise with users!"
"Yes!" the subordinate responded, with a somewhat complicated expression.
There is no doubt that Apple has made things worse, but Xingyi Technology has experienced double happiness.
On the 22nd, Wang Yi received a call from CCTV Director Meng:
"Director Wang, after our consultation, we are willing to reach strategic cooperation with Xingyi Technology in principle, but the specific details require you to come over and let's discuss them in detail."
"That's no problem, we're close."
"How about tomorrow morning?"
"Okay." Wang Yi agreed.
Xingyi TV is poised for growth in the second half of the year, and the OTT license issue has been resolved in advance, so it can be prepared for any problems.
The next day, Wang Yi came to the Central Radio and Television Station and met several senior executives:
"Welcome to visit Mr. Wang and hope that we can have a win-win cooperation in the future."
Wang Yi smiled and shook hands with several people: "That's natural. Our cooperation can not only be a win-win situation, but also set a precedent for the OTT cooperation model!"
"Yes, Director Wang is still far-sighted and is so concerned about the OTT license, while others are dismissive of it!"
Wang Yi heard the meaning inside.
The OTT license restricts the TV side of the video platform. Many platforms are very disgusted and not active.
Instead, they all launched their own unlicensed TV apps.
This also led to the slow progress of this matter.
In the previous life, it was not until September 2014 that all TV apps were removed from the shelves.
After all, major platforms don’t want to give part of their hard-earned membership fees to others.
Wang Yi sighed: "I don't know how it will be implemented in the end. I can't say whether other platforms will cooperate. But Xingyi Video will be a platform that abides by the rules."
Instead of fighting to the bitter end, it is better to plan ahead and grasp the greatest benefits.
"Haha, with Wang Dong's words, we can rest assured."
Several senior executives looked at each other and breathed a sigh of relief.
I am also worried that Wang Yi, like other platforms, will fight to the death.
"You and Mr. Meng have discussed all matters related to previous cooperation, so let's get straight to the point."
Director Yang said with a smile: "CCTV and Xingyi Video each invested 50 million to establish a joint venture to operate Internet TV, each holding 50% of the shares."
"Subsequently, Xingyi Video will create a TV-side Xingyi Video APP, which will be operated by the joint venture. Among them, China Central Broadcasting Station provides OTT licenses and broadcast control, and Xingyi Video provides Internet video content and technical support."
"Half of the TV membership income goes to Xingyi Video and half goes to the joint venture company. Of course, the joint venture company owns half of Xingyi Technology, so you actually get 50%!"
"In addition, Xingyi Technology contributes more, so the name of the joint venture and the video name are determined by Xingyi Technology!"
Video content and technical support are all provided by Xingyi Technology. CCTV only issues a license and gets 50% of the TV membership income for free. This kind of cooperation does not seem fair.
But there is no way.
There are a total of 7 OTT licenses, all of which are priceless treasures.
Without a license, it will be removed from the shelves after September 2014, and Xingyi Video will not be able to log into the TV terminal.
In fact, cooperation in previous lives was also done in this way.
The OTT licensee can take half of the TV membership income with its license!
Fortunately, Wang Yi and Yangguang established a joint venture company and held half of the shares, so they could be divided into 50%. Otherwise, it would only be 50%.
Of course, the membership income from the mobile and PC terminals still belongs to Xingyi Technology and has nothing to do with the China Central Radio and Television Station.
Wang Yi nodded: "I have no objection. As for the joint venture, let's call it Galaxy Internet TV Co., Ltd.. The Xingyi Video TV terminal will be called Galaxy Video. The slogan is, the galaxy is bright, let's have a good time together."
"The stars are shining, let's have a wonderful time together!" Director Yang nodded: "Okay, that's it!"
Wang Yi thought of a question: "We will develop the Galaxy Video APP as soon as possible and it is expected to be launched in the second half of the year. The price of the TV video membership must be higher than that of the mobile phone, but it cannot be too high."
Director Meng nodded: "Yes, after all, our license holder also gets a part of the membership fee. If the price is the same as that of the mobile phone, you will lose money. Then it will be 10 yuan more expensive per month and 120 yuan more per year."
"This price is reasonable." Wang Yixiao said:
"In addition, a terminal sharing system can be launched in the future. Now there are many TV video software from rival companies, which will also take away a lot of market. But if other brands of TVs, such as Hisense TV, can also have the UI interface directly built-in like Xingyi TV.
Galaxy Video, then we will have more users and higher income. Such memberships opened through Hisense TV channels can share 10% of the profits with Hisense! Of course, Galaxy Video members opened from other channels may not have built-in Galaxy
There is no need to distinguish the brand of the video."
Director Yang nodded: "That's no problem. If one more brand has built-in Galaxy video, there will be millions more potential users. It's absolutely fine to give 10% of the profit to the TV brand!"
No one else had any objections either.
If you want Hisense, Skyworth and other brands to have built-in Galaxy Video, you will get 10% of their membership income.
Otherwise, why would anyone build it for you?
The two parties discussed some more details, and then both parties signed a contract together and reached a cooperation agreement.
Xingyi Video on mobile phones costs 180 yuan per year, and Galaxy Video on TV costs 300 yuan per year.
If a certain brand of TV brings members with built-in Galaxy video service, the TV brand will share 10%, 30 yuan.
Xingyi Video and Galaxy Company split the remaining 90%, which is 135 yuan.
Of course, Xingyi Video also owns 50% of the shares of Galaxy Company, which can also be divided into 5 yuan, which is equivalent to 5 yuan that Xingyi Video can get.
With the license, Yangguang directly took away 5 yuan.
If you are a Galaxy Video member opened by Xingyi TV, Xingyi TV also has a terminal fee of 30 yuan, which is 5 yuan.
Of course, these are membership incomes under ideal conditions.
In fact, you have to do discount promotions.
For example, the original price of Xingyi Video annual membership is 180 yuan, the normal promotion is 168 yuan, the continuous annual membership is 160 yuan, and the big promotion is 150 yuan.
Similarly, Galaxy Video also has a regular promotion of 288 yuan, a continuous annual subscription of 268 yuan, and a major promotion of 258 yuan.
Calculated in this way, the money that Xingyi Video can share is only about 170 yuan.
After deducting film and television production costs, copyright purchase costs, and technical service costs, there is not much profit.
To be continued...