Chapter 423: Netflix's dynamic
On Tuesday, Ryan took a flight to San Francisco to head to Netflix headquarters.
This is the first time he has come to the headquarters of Netflix, a place that is not very large, and even a bit dilapidated.
Entering the office area, Ryan frowned slightly. Not only was the decoration outdated, but it also didn't look like a formal office space at all, more like it was remodeled later.
Seeing the changes in Ryan, Mark Randolph quickly explained: "The new office space and warehouse still need some time to be remodeled."
"Go to the warehouse first." Ryan's eyes fell on the narrow office area and the rows of cheap desks and chairs, which looked very shabby.
However, what surprised him was that when Netflix received the first funding from Orion Films, it did not rush to replace these office chairs, but instead ordered a batch of high-performance computers and software.
"A comfortable office environment is also conducive to the long-term development of an enterprise."
"Netflix doesn't need to save money on this."
Ryan paused and continued: "Improving the office environment and employee remuneration will be Netflix's next priority."
The sound was not very loud, but it fell into the ears of all the Netflix employees, but they couldn't help showing joy.
This is the first time they have felt the changes brought about by Netflix's acquisition by Orion Films, not just the licensing of film copyrights and the increasingly busy work.
Ryan didn't stay longer, but came to the warehouse area.
Compared with the narrow office area, the warehouse in front of me can be described as huge. There are rows of shelves everywhere, which look dense and full of DVDs.
Seeing this, Sophia Coppola, who came with her, couldn't help showing a look of surprise.
Such a company definitely has acquisition value.
Now Mark Randolph introduced himself.
These are all established by him, and no one can be more familiar with them than him.
After a brief look around, Ryan returned to the office area and held a management meeting.
In a short period of time, Netflix's management will not change much, and everything will focus on stability.
Of course, Netflix's finances must be taken over by Orion Pictures.
In fact, the development of Netflix is very healthy, except for the lack of funds and film copyright authorization, there is almost nothing that needs to be changed.
Before being authorized by Orion Films' film library, Netflix only authorized more than 1,200 films.
It can be imagined that a company that leases and sells DVDs has only licensed more than 1,200 films!
This is not as good as some Hollywood studios.
Orion Films owns about 4,100 film copyrights, not counting American dramas, TV shows, discipline films, and Golden Harvest's film copyrights.
Ryan discussed with Mark Randolph and others. Next, Orion Films will use its own promotional channels to promote Netflix's online rental model on a large scale in the media and the Internet starting from the summer vacation.
In addition, Orion Pictures intends to contact mainstream North American DVD player manufacturers to carry out online free rental and use activities, at least a free trial of a movie library of more than 4,000 movies.
"Is there anything that needs to be added."
"You can bring it up directly." Ryan glanced at everyone and asked.
"I think in addition to promotion, solving the problem of breakage rate is the top priority." A middle-level manager of Netflix said.
"Unless FedEx or Postal Express changes the sorting method, we will not be able to effectively solve this problem." Another manager said bitterly.
With funding and film library license from Orion Films.
It stands to reason that Netflix has solved all the difficulties.
However, the problem of breakage rate came one after another.
"Is there a way to fix it!" Ryan asked.
"There is no effective solution yet." Mark Randolph sighed, "The main problem is not us, but the courier company."
"Whether it is FedEx or Postal Express, recently when sorting small goods, it is easy to cause damage to DVD discs."
"Is it human? Or a machine!" Ryan continued to ask.
When I was on the other side of the Pacific Ocean in my previous life, the courier company would also cause damage to the items, most of which were caused during transportation.
Tony Shalhoub, the supervisor in charge of the warehouse, said with a heavy expression, "It's mainly because the courier company replaced the new sorting machine."
"For this reason, we have negotiated with the express company, hoping that they can modify the sorting process."
"However, FedEx and Postal Express rejected our request. Unless our daily shipments can reach a certain amount, they will not modify the sorting process for Netflix."
Not to mention the high damage rate, which affects the cost and customer experience, they also require Netflix to reach a certain number of daily shipments before they agree to modify the sorting process.
It can be seen from this that the express delivery company is in a strong position.
However, in this way, Netflix is almost in a dead end.
The high breakage rate will inevitably affect the increase in the number of users.
For the next one, Orion Films is preparing a large-scale commercial promotion, which is no less than pouring a basin of cold water.
"Then can you make a modification from us!"
"For example, increase the material strength of the packaging box!" Ryan made a suggestion.
"Yes, it is possible." Tony Shalhoub said helplessly: "However, this will increase the cost."
"In addition, if we reduce the packaging materials in the future, it will easily cause dissatisfaction among users."
Once again in a dead end.
Ryan stroked his chin, pondered for a while, then turned to Sofia Coppola and asked, "Do we have any cooperation with FedEx?"
"There are some." Sofia Coppola thought for a moment and said, "The cooperation between Orion Films and FedEx mainly focuses on the delivery of film copies."
In addition to regular delivery, most theater companies temporarily request to increase the number of copies, and need FedEx to deliver copies to theater companies and movie theaters in the fastest way. .
Orion Pictures pays a small fee every time.
"Ask FedEx to design a special sorting process for Netflix in the name of Orion Pictures." Ryan quickly made a decision.
"I'm afraid FedEx will not agree."
Mark Randolph didn't have too much expectations for this, "Netflix's shipments are too far behind FedEx's requirements."
The DVD disc mailing business is not an important business.
Even in North America, Netflix is currently the only company that mails DVDs in large quantities.
Before Mark Randolph could finish speaking, Ryan interrupted him, and said again: "The losses caused by FedEx during this period will all be borne by Orion Pictures, until the number of Netflix's daily shipments reaches more than 20,000. .”
what!
Mark Randolph couldn't believe his ears, "This is not a small amount, and no one knows when Netflix's daily shipments will reach 20,000."
"If we really don't want to, we can change the packaging material."
"Mark, you have overlooked one point. Netflix's daily shipments continue to increase, reaching 20,000 daily shipments. It is only a matter of time." Ryan said confidently: "And, compared to money Loss, customer experience is the most important."
"Customer is god."
As long as Netflix burns money reasonably, instead of rejecting it, he will choose to support it.
Which Internet company in the previous life was not created by burning money continuously.
"In addition, films authorized by Orion Films can be produced on the other side of the Pacific Ocean." He mentioned the other side of the Pacific Ocean.
The DVD discs that Netflix rents and sells are not cheap pirated discs, and you can buy a stack of them for $5.
The price of DVD discs obtained by Netflix is as high as more than 10 US dollars each.
It’s not that Netflix didn’t think of ways to reduce the cost of getting goods.
However, the manufacturers of DVD discs are almost all European and American companies, and they cannot be reduced at all.
As for getting the other side of the Pacific Ocean!
Produced in a developing country full of piracy, Hollywood film companies were the first to jump out and quit.
The reason for this is mainly that Hollywood film companies are afraid of leaking the content of the film.
In this regard, Ryan is not worried.
Even in another two decades, there will be no room for legitimate DVDs on the other side of the Pacific.
People who buy pirated copies will continue to buy pirated copies.
Those who buy the genuine version~www.wuxiaspot.com~ will still choose to buy the genuine version.
Might as well reduce the cost of DVD discs first.
Of course, the only films that can do this for the time being are the films in Orion Films' film library.
In addition to the price of DVD discs, Netflix is also at a disadvantage in terms of film commercial operating expenses.
Netflix is not Blockbuster, and it does not have enough qualifications to bargain with copyright companies or Hollywood film companies.
Ryan looked at the time and asked Sofia Coppola to invite everyone to the reception for dinner, leaving only Mark Randolph alone.
Before coming to San Francisco, Ryan had booked a first-floor banquet hall in the Hilton Hotel in his own name. It was the first time he held a high-end reception since he bought Netflix.
"How is the licensing of video copyright and the purchase of online copyright going?"
Watching everyone leave the conference room, Ryan asked a key question.
