Chapter 1984 Product Is King

Plepler also hesitated slightly before nodding in agreement. He could only agree because Yang Cheng, the new boss, asked him to ask for his help, so he had to give him face.

Furthermore, his impression of Dragon Mother was not bad. Although this girl had a deep desire to be famous, after all, most people may not be able to accept such a large-scale show as Game of Thrones, but this girl had never done anything to him. Activities that one finds disgusting or objectionable.

As for her relationship with Yang Cheng, Plepler thought it was better not to understand.

Yang Cheng was silent for a moment and said solemnly, "There are two things I have to remind you. One is the issue of scale. The CW TV station is different from HBO. The scale of CW TV station is not the same as Game of Thrones. It is allowed to be broadcast, of course, if you are confident, you can put it on our cable premium channels."

At present, TV stations in the United States can be divided into three categories: one is public TV stations, including ABC, CBS, NBC, FOX, CW, and PBS, which are free of charge and can be watched by turning on the TV;

One type is cable channels that require a fee, which are divided into basic channels represented by AMC, FX, syfy, and CNN that you can watch after paying a fee, and premium channels that require age restrictions in addition to paying money, such as HBO, Showtime, and Starz. All fall into this category;

The last category is online video platforms, including Netflix, Amazon and Hulu.

Because the public channel is free and can be watched by both adults and children, it is determined that it is for all ages. It should be family-friendly, but it should not be too revealing or even contain swear words.

Although cable channels charge for basic channels, in order to attract more viewers, including parents, they will also take the initiative to control the scale so that parents can use it comfortably and children can watch it with confidence.

But HBO is a premium cable channel. They can’t be watched by paying money. They have also gone through age restrictions and encryption, which means they can abandon the children’s market and let themselves go in the adult world.

So this is why the scale of HBO's dramas seems to be quite large. Although there is no children's market, this decision makes adult viewers more willing to pay for HBO. After all, who wants to watch a program that has to be silenced for swearing? It doesn't matter if the consumer abandons children, adults are the main consumers.

However, Plepler had already prepared for this, "Don't worry, I have considered this, and since I agreed to let Eddie come to the CW TV station, it proves that I am ready to challenge the wireless station, and the review standards are not an issue."

Yang Cheng was satisfied with his confidence, "Very good, then I won't talk nonsense. The second thing is to deal with the impact of Netflix.

Your ex did a very bad job in this area;

Even if he still has some experience in management, I have to reluctantly give up. What I need is a leader who can face the impact of new media head-on. "

When this topic came up, Plepler's face suddenly grew long.

“Before this, I attended an Internet conference and had a quarrel with Netflix founder Reed Hastings. He was unabashedly provoking traditional TV stations including HBO.

He said their subscription revenue exceeds that of HBO, even though HBO is much better than them in terms of profits and Emmy awards. "

After a pause, Plepler sneered, "It seems like this is a scene where new media companies are growing rapidly while traditional media are shrinking rapidly, but in fact this is not the case. HBO's quarterly revenue grew by more than 15%.

This means that subscribers have been growing, and the total number of global subscribers now reaches 127 million.

Moreover, HBO has basically doubled its growth in the past five years, with the growth reaching new highs every year.

So it is definitely a wrong judgment to say that HBO has been affected. Of course, compared to the New York Times, they have indeed surpassed it a lot. "

Plepler took a deep breath and said, "In the end, this is a world where products are king. As long as your products and content are good, it doesn't matter what new media or old media they are!"

This is true. In the TV drama market, truly good content means everything.

The essence of the market is to solve scarcity, but if your content is really good and the market cannot find a substitute, users will still have to come to you.

HBO has won a total of 463 Emmy Awards, while Netflix only has 3. Think about the American dramas that have been wildly planted by foreign netizens in recent years, such as "Game of Thrones", "The Sopranos" and "Band of Brothers". This is what HBO can do The most important reason for living well.

Channel Compared with the Internet, cable TV is an old channel, but cable TV is still an effective and cost-controllable channel.

Although middlemen will reduce HBO's profit margins, from a technical perspective, cable TV can effectively reach almost all target users and provide a high-quality viewing experience with little need for buffering. If it is such a channel, who cares? Cable TV or Internet?

Technology For traditional companies, technology companies have two aspects that are most terrifying: first, they change channels through technology, and second, they change products through technology.

However, for truly good TV series, technology is not the decisive factor, good directors, scripts and actors are. Although Netflix has also produced popular series like "House of Cards", there is no Things with too much technology, to put it bluntly, have no technical content and rely on the script and the superb acting skills of the actors. The so-called big data cannot allow a mediocre director to make a good TV series.

Just like a doctor from Jiaotong University, he created a formula cross talk in an attempt to challenge Lao Guo. This is the most ridiculous thing!

How did Lao Guo put physical cross talk under his feet in the first place? Isn’t it relying on cross talk itself?

It’s all the same. In the past few years, Netflix has indeed achieved amazing growth through online platforms. Its revenue and number of subscribers have exceeded HBO, but this does not mean that Netflix has defeated HBO. This is the positioning of the two companies. A company with a completely different business model.

The fact is that Netflix can only produce two popular homemade dramas, and it has only won three Emmy Awards recognized by the industry. Netflix’s real business model is like opening a high-quality and low-priced supermarket at your doorstep, selling massive amounts of Video content is collected and users can choose according to their own energy and preferences.

HBO's business model is a boutique store, which only provides high-quality products in core locations and has higher sales prices. Of course, users do not need to spend too much energy selecting products.

It’s useless compared to others. Just look at the net profit. HBO’s net profit has exceeded 500 million US dollars, while Netflix has not exceeded 100 million US dollars.

From a competitive perspective, Netflix’s advantage is that it has a relatively solid foundation. Lower subscription prices and more subscribers can make Netflix’s finances more stable and have a higher ability to resist risks. Even if it cannot produce With high-quality content, the gap period will not harm the company's operations too much.

If HBO cannot continue to provide high-quality self-made content, its own operations will encounter great troubles. Therefore, in terms of valuation, Netflix will be much higher than HBO. Lao Mo intends to acquire HBO. At that time, he was not optimistic about the Times Warner's offer is $20 billion.

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