Chapter 436: art video

Since late April, Netflix has gradually appeared in famous magazines such as "Vanity Fair", "Entertainment Weekly", and "Variety Show".

In addition, there are Yahoo, Google and other websites and TV stations.

And this is just the beginning.

As a Hollywood film company, Orion Films has a good cooperative relationship with a large number of entertainment media, and invests hundreds of millions of dollars in promotional expenses every year.

Netflix's new website will be launched in May, and Orion Pictures will invest in larger-scale publicity resources.

It wasn't all smooth sailing for Netflix, though.

It has been less than a week since the promotional advertisement was launched. As the number of viewers and registered users on the website increases, some problems inevitably arise.

Even, it received protests from multiple organizations.

Among them is the troublesome protest of the American Parent-Teacher Association, demanding that Netflix prohibit the provision of large-scale videos to users of underage children.

These large-scale films include not only restricted films such as R-rated films and NC-17-rated films, but also films that are not allowed to be shown in theaters.

Such as the San Fernando Valley and Japanese art films.

The licensing fees for these films are low and they are doing well.

Still, Ryan decided to take the art films down.

"Cancel rated movies."

"Netflix has no shortage of film copyright authorization." Ryan did not want to attract moral and legal criticism.

Of course, there are also many large-scale movies on Netflix in the previous life.

But one thing to keep in mind is that large-scale films are not equal to art films in the San Fernando Valley and Japan. There is an essential difference between the two.

The former can be released in theaters, and can also be broadcast on TV stations, such as adult premium channels.

These are all in compliance with US law and will not cause any trouble.

But San Fernando Valley is different from Japanese art films.

"Okay." Mark Randolph nodded.

He knew Ryan was right to be worried.

Netflix is ​​a formal website company, and must abide by the bottom line of ethics and law.

Playing around the edges is not suitable for a regular company.

"In the next stage, Netflix needs to reduce costs as much as possible." Ryan has seen Netflix's operating data.

Overall, it's okay.

The only headache I feel is that the cost of each transaction is too high, and it is almost a loss-making operation.

Netflix charges just $6 per DVD, including rental and shipping.

However, Netflix’s operating costs per order are around $7.

It can be said that every time Netflix receives an order, not only does it fail to make money, but it also loses about $1.

This is one of the reasons why Netflix was sold and acquired in the first place.

There are also monthly fee members who also lose money.

"In terms of postage, we can't reduce expenses for the time being."

Mark Randolph said helplessly: "Some time ago, our cooperation with Amazon has reduced the postage to the lowest point."

"It's unlikely that FedEx will lower postage rates again anytime soon."

"Mark is right." Tony Shalhoub pushed the glasses on the bridge of his nose, "Right now we can only find a way to get DVD discs and film licensing fees."

"Among them, the price of DVD discs of movies authorized by Orion Films..."

Having said that, he glanced at Ryan and continued: "The cost can be reduced to a very low level, even cheap."

cheap!

Many people in the meeting room showed incredible expressions.

"However, the DVD prices of the rest of the films will not be lowered much." Tony Shalhoub felt a little pity.

Mark Randolph took the conversation and said, "There is no other way."

"However, the good news is that we have reached a licensing agreement with the six major Hollywood film companies, and they have given a good discount."

This is a credit to Orion Pictures.

With MGM's huge film library, Orion Pictures can fully authorize each other with Paramount, Warner Bros., Sony Pictures, 20th Century Fox, Universal Pictures, and Disney. It didn't take much effort to obtain related films. Licensing of the library.

Mutually licensed film repositories between Hollywood giants are common.

"Now our monthly membership fee is $19.95, and you can rent up to four DVDs at a time."

After listening for a while, Ryan said: "I think we can try to increase the number of rentals of a DVD disc, and limit the license of Orion Films or overseas films."

Mark Randolph couldn't help but be impressed. The movies authorized by Orion Films not only have low DVD prices, but also only a small part of the licensing fee.

This is especially true for overseas films.

Many overseas films are copyrights directly purchased by Netflix.

It seems that a DVD disc has been added, but Netflix has not increased the cost much.

"On the premise of maintaining the monthly membership fee of 19.95 US dollars, the annual membership fee option is added. Users can pay 12 months of membership fees at one time. Only users of Netflix's annual membership fee can enjoy the above rights."

"Even, a certain discount can be given to users of the annual membership fee." Ryan referred to the membership templates of various websites in his previous life, and directly moved out the annual membership fee.

Annual membership fee users can gradually become the most loyal users of the website while enjoying various preferential activities.

Just imagine, you have just spent hundreds of dollars to become a Netflix annual membership fee user, and you will definitely use Netflix to rent DVD discs frequently, gradually becoming a habit.

"Annual membership fee users!"

Mark Randolph pondered ~www.wuxiaspot.com~ and said: "Cultivate users' habit of the website!"

"That's right." Ryan glanced at Mark Randolph approvingly, "Netflix not only needs subscribers with membership fees, but also subscribers with annual membership fees."

"In the future, Netflix can launch special promotions for annual membership fee users and monthly membership fee users."

In fact, whether it is reducing costs, increasing annual membership fee options, or launching various preferential activities.

It's all for the next bigger publicity.

For this reason, Orion Pictures has become very busy. Except for the overseas distribution of "Special Forces: The Rise of Cobra" and the release of "The Lord of the Rings: The Two Towers", most of the rest of the energy is put on Netflix.

After discussing in detail for a while, Ryan talked about other things, "The Lord of the Rings: The Knight of the Two Towers will be released soon, this is the most important film of Orion Films' summer vacation, don't forget to attend the premiere Mode."

"Of course." Mark Randolph said with a smile: "This is the premiere of "The Lord of the Rings: The Trooper of the Two Towers". No one will miss it."

The release time of "The Lord of the Rings: The Knight of the Two Towers", Orion Pictures is scheduled for the first weekend in May.

At this time, the distribution department of Orion Films, as well as the peripheral product operation and publicity departments, have entered a state of tension, making final preparations for the release of "The Lord of the Rings: The Two Towers".

Ryan is also preparing to return to Los Angeles.

He can't stay in San Francisco forever.

There is also the filming of "Spider-Man 2", which needs to go to New York for filming in May, and then to New Zealand, and will not return to the United States until October.

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