Chapter 693: Subsidy War
As a public figure, Dunn could not take them out for a walk.
For two days on weekends, they had their assistants accompany them around Los Angeles and bought a lot of things. The girls were giggling and chattering happily.
The happiest is Yui Aragaki.
After a trip to America, everything she wanted came true.
Her salary, like the sisters, has risen to $20,000, which is great!
It is not a question of more money and less, but dignity!
At least they won't be laughed at anymore.
Throughout the weekend, whenever Tang En was free, he would stick with the girls, especially Yui Aragaki. As a "newcomer", Tang En took special care of her.
Aragaki Yui is also well-behaved and docile like a kitten, always leaning into Tang En's arms.
Unfortunately, language communication is still a barrier.
Some less fun.
After this weekend, the drama begins!
Blockbuster has launched a monthly membership policy, with a monthly fee of only $16. The price is indeed low enough to attract the attention of many movie fans.
It's just that the website often crashes and there are many jokes.
The troubled Blockbuster is actively solving this problem.
The joke is a bit more, but fortunately the price is cheap enough!
This is the biggest reliance of Bestard.
Unexpectedly, the wind in the industry soon spread.
The biggest competitor, Netflix... is also cutting prices!
Also $16!
As soon as the wind came out, it immediately attracted heated discussions from countless commentators.
Has Dunn Walker, who has grown up and been tough all the way, is finally going to make a move?
With Netflix's foundation and the attributes of a technology company, if the price of Netflix's online rental is reduced to $16... Then what space will there be for Blockbuster?
Don't think about launching online business anymore, just concentrate on running the physical business.
However, if there is no user growth in the online business, how can the stock price of Blockbuster increase? If the stock price does not grow, the huge debt, and the introduction of the low-cost membership policy, will drag down the Blockbuster!
This seems to be an inextricable knot.
On November 20, Netflix officially made the much-anticipated major announcement to the outside world-price reduction!
Netflix now has more than 5 million users, equivalent to 8% of US netizens, who are members of Netflix. This ratio is very high!
The monthly price of $20 in the past, although high, is also much cheaper than paying late fees at Blockbuster.
Unexpectedly, in order to cope with the increasingly fierce market competition, Netflix actually reduced the price!
In fact, for those users who are accustomed to using Netflix to rent discs, even if Blockbuster offers a monthly subscription system of $16 per month, how can it be?
Does Bestard have a recommendation mechanism for similar types of videos?
Is there an imdb video database?
Do you have warehouses all over the country?
Fast, efficient, intelligent, and detailed information... these are the biggest advantages of Netflix!
Now, Netflix has lowered the monthly price to the same price as Best, so why not subscribe?
"After all, Netflix's reputation is much smaller than that of Blockbuster. Unexpectedly, this price war has invisibly made huge publicity for Netflix!" Kevin Turner looked excited.
Tang En said with a smile: "Don't sell anything, tell me the specific data!"
"Three days of price reduction, Netflix's membership has increased by 1.03 million!" Kevin Turner was flushed, with a feeling of victory.
"Where's Bestard?"
Dunn asked again.
Blockbuster is a listed company, and many data must be disclosed to the outside world for investors to analyze and determine the trend of the stock price.
"Basida's monthly membership policy has been launched for three weeks, and more than 9 million users have appeared."
Kevin Turner said a statistic that directly made Dunn a little head-scratching.
This Blockbuster is really still a giant!
Even if their website is repeatedly paralyzed and a lot of jokes are made, their user base and popularity are really all over the United States.
Netflix lowered the price for 3 days, adding 1 million users, and the total number of users is only more than 6 million.
Blockbuster launched the monthly subscription system for three weeks, and the number of users reached more than 9 million.
This is the difference in foundation.
However, Kevin Turner smiled and smiled: "Boss, the $16 monthly subscription system is operating at a loss for both Blockbuster and Netflix, there is no doubt about that. Different. Yes, there is no possibility for Blockbuster’s online business to develop, and our stunt department does not allow it. Their monthly subscription system can only be operated under physical stores.”
"Oh?"
Dunn's eyes lit up.
Kevin Turner said excitedly: "Basida has launched a monthly membership subscription, the main purpose is to shift from the asset-heavy leasing industry to the Internet's asset-light industry. But in fact, the field of the Internet has long been ruled by Netflix. Blockbuster's tens of thousands of stores and more than 60,000 employees have become a huge asset burden."
There is a big difference in operation between Internet companies and traditional companies.
For example, Netflix, the more users there are, the lower the average cost Netflix consumes per user. If the number of Netflix users reaches 15 million, Netflix will no longer need subsidies and can be responsible for its own profits and losses.
But Blockbuster is different.
Blockbuster's users do not come from growth, but from conversion!
The more than 9 million monthly subscription users sound very scary, but in fact, it will only cause huge losses to Blockbuster. These users, who were also users of Blockbuster in the past, just switched from the high cost of renting movies in the past to the cheap monthly renting movies now.
Their spending is less, and Blockbuster's income is naturally less.
That is to say, the more monthly users of Blockbuster, the more losses they will lose!
This is the exact opposite of Netflix's situation.
The reason why Blockbuster launched such a monthly subscription policy is mainly because it wants to transfer the rental business from brick-and-mortar stores to the Internet, imitating the light asset of Netflix.
The smaller the brick-and-mortar store, the less Blockbuster will have in terms of rent, employee salaries, etc.
Step by step to realize the transformation, and then pull up the stock price.
Unexpectedly, Netflix did not give Blockbuster any space for transformation!
Netflix has also reduced the price to $16, which is to completely dominate the Internet rental business!
Dunn laughed and said: "John Antioco is lifting a rock and hitting himself in the foot!"
Kevin Turner also said with a look of enjoyment: "The monthly subscription users of Blockbuster are close to 10 million, such a huge number... Hey, they want to regret it, but it's too late! This group of monthly subscribers, come to Blockbuster. Say, like ants on a wound. The more ants, the more pain the Blockbuster has!"
Tang En chuckled lightly for a while, but he didn't get carried away. He pondered: "There is no problem with Netflix, right? No amount of users in the physical store can pose a threat to us. Internet users... we can't let Pepsi get one of them. Da!"
Kevin Turner said confidently: "I don't dare to say it for a long time, but within half a year, I can guarantee that the online rental website of Bestard... don't even think about normal operation. The users of the brick-and-mortar store will still return. Go to the store."
Dunn nodded, very satisfied.
This time, the price war was initiated by Blockbuster.
Netflix was just forced to fight.
However, the Netflix of this life is not as weak as the Netflix of the previous life. In the previous life, Netflix couldn't let go of its hands and feet when it was fighting a price war, and could only reduce the monthly price to $18.
The main reason is the lack of subsidy sources, and it can only be self-sufficient.
This gave Blockbuster a long respite.
After all, the monthly rent is a full $2 cheaper.
Netflix in this life, backed by the big tree of New Universal, has sufficient funds and full of confidence!
Playing subsidies, in this era, Dunn asks himself that he has no opponents!
"Basida wants to play, then play it well, the subsidy war, let's accompany it to the end!"
Tang En waved his hand, full of domineering.
...
"What did you say?"
Dunn couldn't believe his ears, thinking he heard it wrong.
In the office, Barry Diller was standing helplessly in front of his desk, spreading his hands, "That's what Lei Shidong said. He said that the price war is not good for the market of the DVD rental industry. Everyone is a businessman. , the purpose is to make money, there is no need to make money at a loss."
Tang En sneered, "This old guy, won't he be confused?"
When Blockbuster wanted to imitate Netflix to launch a monthly membership policy, Tang En asked Redstone to greet him.
Normal market competition is okay, but don't fight price wars.
After all, as soon as the price war starts ~www.wuxiaspot.com~ both parties will lose their interests.
Unexpectedly, Lei Shidong refused to appear on the pretext of breaking out of Bestda and operating independently.
Who doesn't know the board of directors of Blockbuster, there are 3 directors from Viacom?
Well this time, Netflix has acted resolutely and made a tough counterattack. It also launched a monthly membership subscription policy of $16 in a timely manner, which shattered the ambition of Bestda to transform into the Internet.
Lei Shidong just interceded with an old face?
Is this Nima too fake?
Doesn't he value his face the most?
Barry Diller shook his head and said: "The current pressure of survival for Blockbuster is too great, and the stock price is too low, which is no longer in line with the due value of Blockbuster. Wall Street has formed an investment team to attack Blockbuster."
"It's about us?"
"Probably... just want to give each other a step back."
Dunn frowned and stared at him, "Barry, what do you think?"
Barry Diller said slowly: "The monthly subscription system of $16 has been launched, and it is impossible to change it. This will attract public resentment and is not conducive to the expansion of the Netflix brand. However, if Redstone can provide Some reasonable benefits, and we're not going to make it worse."
Tang En understood as soon as he heard it, he couldn't help laughing.
The old fox!
He said so gracefully, didn't he just want to take the opportunity to extort?
However, just extorting a sum, this method is too light?
In the past few years, Redstone and Viacom have suppressed Dunn a lot!
This time, Dunn finally took the initiative.
How could it be so easy to let go?
"Redstone? Humph!"
Dunn raised the corners of his mouth contemptuously.
Time for a combo punch. (https:)
Please remember this book's first domain name: . :
(Sanqi Chinese)
