Chapter 1212: Hot selling DVD player
As early as 1996, the General Administration issued some regulations and regulations on co-production films.
However, at that time, the mainland film market was still very weak, and no foreign businessmen were willing to enter the mainland market to make films.
The change started in 2002.
From "Heroes".
The emergence of "Heroes" opened up the blockbuster era of the mainland film market, and countless film clubs that have been transformed into KTVs and nightclubs have opened again.
Co-productions have suddenly increased.
However, the General Administration during this period did not make some explicit requirements, and co-productions became a way for many Hong Kong businessmen to make money by circumventing policy restrictions.
The share of foreign films in the mainland is 15%, but the share of co-production films can be as high as 43%.
The first batch of Hong Kong government filmmakers who went north were actually exploiting the policy loopholes. They randomly found a few mainland actors and staff members and used them as cattle and horses. Just scold, play if you want, and dump if you want. Make a so-called co-production, and then enjoy a 43% split.
Leaders also know this movie chaos, but they deliberately indulge, giving those foreign filmmakers and investors a chance to make money.
With the benefit of the loopholes, more filmmakers will be attracted to the mainland.
With the success of "Mulan", everything changed.
China and the United States co-produced Hollywood blockbusters with an investment of 100 million US dollars. This is a demonstration of strength! This is the embodiment of the potential of the mainland film market!
The General Administration's confidence is sufficient, and the means are also tough.
Even the world's best-selling Hollywood blockbusters have been filmed, and they are co-productions completed under formal procedures. Those informal co-productions should be abolished. The order of the mainland film market should be taken care of!
The leaders also stopped procrastinating, and soon came up with the latest relevant regulations on co-productions, the most important of which is that the Chinese actors in co-productions must not be less than 50%! If there are special circumstances, it is necessary to apply for the approval of the General Administration.
For the Chinese side, "Mulan" is more than just a movie, and the impact in all aspects is really too great.
Of course, the most grateful is New Universal.
This time, I put forward a proposal for a co-production film. I want to stick to this road of Sino-US co-production, and use the Hollywood model to drive the rise of the mainland film market. Including various local governments, they are also actively promoting the development of film-related industries such as special effects industrial parks, animation industrial parks, and film and television shooting bases.
For a time, the momentum of the movie was in full swing.
This project is about the Chinese navy's evacuation of overseas Chinese. This is a movie that can strengthen the country's prestige. If it is made well... it will definitely sell well in the Chinese-speaking region!
Not to mention other things, organs and units at all levels must organize collective viewing, which is the guarantee of the box office.
However, Dunn is in a bit of trouble here.
Cooperate to make a film that highlights the power of China's navy? A bit of a taboo!
The current situation of New Global is already very sensitive, and this thunder can't be stepped on randomly.
Would you recommend it to Warner?
Warner has also invested a lot in China.
Unexpectedly, a few days later, a letter came from the Chinese side, saying that the co-production proposal was cancelled and the project was killed.
The General Administration reviewed it, the military approved it, and the civil affairs approved it, but the Ministry of Foreign Affairs rejected it, believing that the film did not conform to the country’s foreign policy.
This movie is about the evacuation of the Chinese navy during the Iraqi invasion of Kuwait to protect the citizens from Iraqi artillery fire. It also shows that Iraq is the invading party and Saddam is the villain.
But the current international situation is that the United States is fighting in Iraq and arresting Saddam. Many countries, including China, are opposed to the war.
If this movie is made, doesn't this secretly mean that the US is fighting the big villain? This will not work.
Dunn was secretly glad that the second cooperation could not be reached.
Censorship is something that every country has.
Even if that side passes, Hollywood has to be killed.
Although the film cooperation has not been reached, the cooperation between New Universal and China has begun to become more and more abundant, such as... the order from Dolby Laboratories!
With the official launch of Blu-ray discs, the first batch of Blu-ray discs appeared, and all Columbia Pictures movies will be exclusively available on Blu-ray format HD discs.
This marks the official start of the high-definition format competition between Blu-ray and HD-DVD!
New Universal is currently in the HD-DVD camp, but the contract is about to expire.
Blu-ray is cheaper and Sony is stronger.
If nothing else, Xin Universal will also switch to the Blu-ray camp after the contract expires.
The emergence of new high-definition formats will inevitably cause changes in the industry.
The first is the DVD player.
In the past month, New Universal has made a big deal!
Bought the advertising rights of almost all TV stations in the United States with more than 3% ratings, including the Golden Globes, Grammys, Oscars, and Super Bowl advertising spots, and New Universal won them all!
There are also websites such as Yahoo, ube, America Online, Netflix, and Rotten Tomatoes, as well as hot-selling newspapers such as the New York Times, Los Angeles Times, and Wall Street Journal.
The advertising cost is as high as 250 million US dollars!
The promotion is a super powerful Dolby DVD player!
It can play regular DVDs, HD-DVDs, Blu-ray discs, and even some DVD games.
It can be said responsibly that the Dolby DVD player is the most powerful and compatible DVD player in the world today!
This DVD player was launched in North America two weeks ago, and within a month, it was fully rolled out to the global market.
Now, Dunn got the report.
In the past two weeks, the North American sales of Dolby DVD players have reached 950,000 units!
Colin Green, the vice president in charge of sales, was very excited and made an impassioned report to Dunn: "Boss, DVD players have been sold like crazy, and we have received a large number of orders. In addition to the 650,000 units in warehouses and dealers, we There are at least 500,000 units out of stock in North America!"
Dunn has been preparing for the plan of the DVD player for several years.
Now the product is finally available.
After a series of brainwashing marketing and overwhelming publicity, the Dolby DVD player has finally become a generation of explosive products, and the sales level is no worse than when the iPod was launched a few years ago!
However, the price is completely incomparable!
The official price of the Dolby DVD player is $1,299!
The price of the iPod is only one tenth of the price.
Since the release of HD-DVD, the high-definition format, Dunn has been paying attention to the DVD player market, and he knows this market very well.
HD-DVD has been in the market for more than two years and has sold more than 3.8 million units worldwide, including 1.8 million units in North America.
Exactly!
In two years, the total sales volume of HD-DVD players of all major brands in North America was only 1.8 million units!
The average price is $1,000, and the total sales are $1.8 billion!
Now, as soon as the Dolby DVD player appeared, it immediately swept the DVD player market like the autumn wind swept the leaves.
The half-year order in North America alone exceeds 2 million units!
Sales are expected to exceed $2.5 billion!
This shows what?
This shows that more consumers of ordinary and cheap DVD players have entered the high-end market and purchased Dolby DVD players that can watch high-definition DVDs!
No way, this is the only DVD player in the world that can play both DVD, HD-DVD, and Blu-ray!
With one machine in hand, you can get all formats!
The American people are lazy and ignorant, and the messy DVD format can make them collapse.
The Dolby DVD player solved the problem for them.
No matter what format, the Dolby DVD player can recognize it and play it!
This is a must-have product for movie fans!
Indispensable!
Even the sales department and the consumer goods department made a bold estimate that the sales of Dolby DVD players in North America this year will exceed 3 million units! The total output value reaches 4 billion US dollars!
Except for those ultra-low-cost Chinese-made DVD players priced at $50, Dolby DVD players will rule the high-end consumer market for DVD players!
"The price of $1,299 is no problem, right?"
This is the price selected by Tang En, and he is very concerned about it.
Colin Green said: "No problem! In the short term, there are indeed a large number of consumers who are discouraged, but it doesn't matter, Dolby DVD players are still in the stage of out-of-stock purchase. No spending power or fanatical fans will care about this. The price difference. Compared to the high-definition players of the past, we are significantly more powerful.”
Tang En said: "Within half a year, a DVD player with the same function will definitely appear!"
The DVD player has no technology and no patents.
As soon as the Dolby DVD player appeared, its peers would definitely buy it back and disassemble it for research, and then they would soon be able to produce similar products.
Colin Green said with deep conviction: "That's true. In fact, it doesn't take half a year, three months is enough. We only have a three-month monopoly period."
Dunn nodded.
He is a movie expert, and in terms of hardware sales... he will not give any advice. He proposed the strategic direction of high-definition video disc players, and other work will be handled by more professional people.
Tang En looked down at the report in his hand and was very satisfied!
Dolby DVD players have been on the market for 13 days in the United States, and a total of 950,000 units have been sold!
Priced at $1299!
The total output value is 1.23 billion US dollars!
Of course, this money cannot all belong to New Universal, including the cost.
What Dunn got in his hands was the cost report.
The material cost of each Dolby DVD player is 185 US dollars, the assembly fee is 8.5 US dollars, the patent fee is 45 US dollars, the dividend fee for the researcher is 4.8 US dollars, the profit in the hands of the dealer is 20-30 US dollars, and the negligible amount is evenly distributed to each machine. Shipping and Insurance...
All in all, a Dolby DVD player sold in the US will not cost more than $300.
Compared to the retail price of $1,299...that means, New Universal can make $1,000 for every Dolby DVD player sold!
Sales of 950,000 units are equivalent to $950 million!
You must know that in the early stage, Dolby Laboratories spent only 80 million US dollars in research and development in order to develop the DVD player, and only 120 million US dollars in negotiation, technical support and various property rights acquisitions, plus 250 million US dollars in advertising fees...
Okay!
In just half a month, Xin Universal has already made a net profit of 500 million US dollars in the DVD player project!
According to the current half-year order of 2 million in North America, New Universal can earn 1.5 billion US dollars from North America alone!
Who said the real economy can't make money?
The key is to find the right direction!
The profit rate of this product is higher than that of Wall Street's financial games!
There is no doubt that the success of this big business will make every shareholder of New Universal bow their heads to Dunn and be convinced.
This big boss can not only play Hollywood.
In the hardware market, he also has a unique understanding and vision!
The Dolby family, the third largest shareholder of New Universal, can also stand up and straighten their chests.
Dunn looked at the report and was very satisfied.
However, I am quite emotional about the assembly fee of only $8.50.
Sure enough, it is Foxconn, and it is indeed cheap labor.
If this is produced in the United States, the foundry fee for each machine will be at least $50.
This is the advantage of Made in China.
A Chinese-made DVD player retails for $50. American-made DVD players cost $50 for labor alone. It is also said that the unemployment rate of American workers is high, can it not be high? Factories have moved to Asia.
"By the way, what about overseas orders?" Dunn shook his head and asked.
Colin Green didn't even need to look at the documents, he said: "650,000 in Japan, 150,000 in South Korea, 3,000 in Hong Kong, 350,000 in the UK, 130,000 in Germany, 180,000 in France... The total overseas orders received exceeded 1.5 million units!"
Dunn's eyes lit up, "Japan's orders are equal to the sum of Britain, France and Germany?"
Colin Green said: "It is true that the Japanese market places great importance on traditional industries. Just like the record industry, under the impact of the Internet, the global record industry is sluggish, and only the Japanese record industry is still growing. By the way, still Thanks to Netflix Japan."
Tang En smiled, "That's a good thing!"
Netflix and Netflix Japan, as a DVD rental platform~www.wuxiaspot.com~, naturally have to advertise Dolby DVD players. It's funny, Japan should be Sony's world. The fact that Dolby DVD players can receive such a large order is also related to Sony's strategic mistakes.
Sony also has a DVD player business and has been selling a variety of DVD players in the past two years. It's just that Sony's bureaucracy is very strong. Blu-ray discs are developed by the Blueguan research group, and the DVD player business belongs to the DVD player production department.
The production department is not optimistic about Blu-ray, so it will not produce it. Instead, it will produce the high-definition disc player of Blu-ray's competitor HD-DVD.
Very absurd.
Just like a Sony phone.
It is well known that Sony’s camera technology is the first in the world, but the camera department does not authorize the mobile phone department. They are afraid that the camera function of Sony mobile phones is too powerful, and no one buys Sony cameras. So that the mobile phone department has to develop camera technology from scratch and buy patents from outside, wasting a lot of money and has yet to make a name for it.
It is only natural for such an old company to be surpassed by a new company.
Anyway, New Universal took a big advantage.
"How much order do you want to place with Foxconn this time?" Dunn asked.
The first batch of orders was placed half a year ago. Unexpectedly, the sales were extremely hot. The world is facing a shortage of stock. We must hurry up and let Foxconn work overtime.
Colin Green said aggressively: "At least 2.5 million units!"
"Yes!" Dunn waved his hand, "Go for it!"
