Chapter 2634: Grabbing time

Zhou Buqi is the big boss of Ziweixing Global, he is not an outsider!

They know many things well!

In particular, HBO's business model is very similar to Netflix. The difference is that one is a traditional TV station and the other is an emerging Internet.

By analogy, does Zhou Buqi know what HBO wants to do?

Many of HBO's American dramas will be at a loss. This is not a business loss at all, but a strategic loss!

This is too insidious. If it is Wall Street capital, or laymen such as capital from China, Japan, Korea, and the Middle East, they might really be fooled.

Just like the American TV series "Roma".

This is a big production.

The production cost of a single season is as high as $100 million.

Because the cost was too high and the income was too low, even though this series had an excellent reputation and became a world-class TV series with a global reputation, it was cut in half by HBO and only lasted two seasons.

This is very confusing.

How could a masterpiece of this level lose money?

The so-called losses are actually strategic.

HBO’s self-produced dramas are particularly concerned about the exclusive broadcast mode. In other words, if the audience wants to watch the TV series "Roma" on TV, they can only subscribe to HBO and become an HBO member.

From this point of view, HBO and Netflix are almost identical.

This has two sides.

Such a strategy can indeed attract many viewers to subscribe to HBO and become loyal viewers of HBO. But there are many more viewers who have been lost because of this self-isolation.

In other words, in the European and American markets where copyright protection is extremely strict, many people want to watch "Roma" but have never watched it. After all, HBO's subscription fee is too expensive.

In other words, "Rome" still has a large market space that has not been developed, which is why it suffered losses.

If HBO could make some compromises in its strategy, allow the American drama "Roma" to be promoted through more channels, sell the TV rights to Showtime and AMC for broadcast, sell it to some TV stations in the UK, France, and Germany, and sell it to Chennai. Streaming media platforms such as Fei and Hulu...

How could there be a loss?

If nothing else, if the streaming rights for the two seasons of "Roma" are licensed to Netflix, HBO can earn US$100 million in licensing fees from Netflix every year!

Don’t you have everything?

As long as it is promoted according to the traditional TV drama operating model, "Roma" will not only not fall into losses, but will become a big project that can bring amazing wealth to HBO!

At the business level, there is no possibility of losing money for a top quality American drama like "Roma".

However, "Roma" did suffer losses.

And the losses were serious.

As a result, HBO only filmed two seasons and hastily ended the project.

This is actually a strategic choice for HBO.

It was a deliberate loss.

Strategy always comes first, strategy is the direction, and business is the details. Strategy is always more important than business!

HBO would rather endure the losses of "Roma" than release the copyright of "Roma". This is HBO's positioning and strategic significance.

HBO is a company that makes money by collecting membership fees, not by selling movies.

Be sure to maintain the solo broadcast mode!

Who wants to see "Roma"?

Then you can only subscribe to HBO!

If many viewers who want to watch "Roma" are given the opportunity to watch it on other TV stations or Internet streaming media... that will be troublesome.

Once this hole is opened, who will spend the expensive price to subscribe to HBO in the future? Wouldn't it be better to wait a few months for the rights to HBO's TV series to be released and watch them on other cheaper TV stations or streaming media platforms?

Therefore, HBO must not drink poison to quench thirst.

I would rather endure the pain and cut "Roma" in half than release the copyright of "Roma" to allow more partners to participate to fully explore the value of this series of American dramas.

This kind of strategic loss must be accepted with gritted teeth!

Zhou Buqi actually has this kind of strategic thinking. He has expressed similar views many times at Netflix’s strategy meetings, that is, Netflix must boldly and actively accept strategic losses and must take a long-term view. Don't be like many traditional TV stations or entertainment companies who rush in with red eyes when they see there is money to be made.

After Netflix launched its self-produced series, it also suffered serious losses.

The very important reason is also because of the solo broadcast mode.

If American dramas like "House of Cards" are released to more channels, greater value can be tapped and more revenue can be created.

But now that viewers can watch "House of Cards" elsewhere, the incentive to subscribe to Netflix has waned.

This lack of strategy must not be allowed to exist!

Rather than fall into huge losses, we must grit our teeth and persevere and withstand it!

This is why Zhou Buqi is full of respect for HBO and treats them differently. The reason why this TV station can quickly stand out and become the top TV station in the world is because they have a forward-looking strategic vision.

While others are still selling ads and movies, and relying on the "limited budget" model to make money, HBO has already adopted a subscription membership system and embarked on a new buffet-style "limited time" model in the film and television industry.

In the era of PC Internet, it is still constrained by "limited budget". On the mobile Internet, it is really “limited time”.

All major apps, no matter what kind of business model or type of product, boil down to one thing - seizing users' time.

A person, whether poor or rich, only has 24 hours in a day.

Whoever can steal more time can make more money!

TikTok can quickly become a world-class app and crush many Silicon Valley giants because it has gone to the extreme in "grabbing time" and is even considered an electronic product that is highly addictive. Once you start scrolling, a few hours will pass before you know it. Whether you are a social elite or a member of the lower class, you have to bow your head humbly in front of TikTok.

Just like almost no one can resist drug addiction, once you get into it, you can't quit.

But HBO was already doing this twenty years ago.

Perhaps the concept of "limited time" and the awareness of "grabbing time" had not yet been formed at that time, but HBO has grown up along the way. It really relied on a business model that is highly similar to that in the mobile Internet era, and launched a downgrade for all TV stations. Dimensional strike!

It is not surprising that it has achieved great success.

Zhou Buqi recognizes HBO's business philosophy and admires it from the bottom of his heart. He has repeatedly asked Netflix's management to learn from them on the board of directors.

However, when negotiating with Richard now, one must not be merciful.

It is necessary to peel off a layer of skin from their bodies.

When it's time to be cold, you must be cold.

Zhou Buqi wants to invest in TV series. He is not a shareholder of HBO. He will not be responsible for HBO's strategy. All he pursues is that TV series can make money! What he pursues is business depth, and he must fully tap the value of every American TV series to gain profits!

How to dig?

Of course, we want to break HBO’s “exclusive broadcast” attribute!

This is somewhat of a sinister calculation.

Netflix's biggest competitor is HBO. When Time Warner encounters a business crisis, it can cause some "damage" to HBO's strategy, and then they can offset each other.

At this time, Zhou Buqi was a bit bully, and his attitude towards Richard was a bit harsh, and he would do whatever he didn't want to do to him.

Zhou Buqi said coldly: "Since we are making money, the first priority is to make money! Investors have no obligation to be responsible for HBO's strategy. I don't care what HBO's financing methods were in the past. However, you can deceive outsiders. , but you can’t fool me! In order to avoid losses in platter investment projects, we must relax restrictions and fully tap the market value!”

Richard sighed, "Zhou, this is impossible..."

"Nothing is impossible!" Zhou Buqi waved his hand and interrupted him rudely. It was a bit rude, but he is the richest man in the world, and his status is here. He has the qualifications, "It's a small matter. Business, I'm not interested. If I want to start a TV series investment project, it must be a big move. I will introduce capital from multiple parties, including Wall Street, Hollywood, and Silicon Valley. Considering the global market, I will also introduce capital from Europe and Asia. Get involved.”

"ah?"

Richard was stunned.

It turns out that Boss Zhou has an amazing big plan.

Zhou Buqi said calmly: "You have also seen the example of Legendary Pictures. The market valuation has reached an astonishing US$5 billion. In the past few years, Legendary Pictures has mainly cooperated with Warner. The market for TV series is not as big as that of movies. Small, if we can take advantage of the first-mover advantage and occupy more than half of the TV drama market, I don’t think it will be difficult to start a project with a valuation of more than 10 billion US dollars.”

Richard felt like he had been cheated.

Depend on!

What does this mean?

What a threat!

This is blocking HBO’s retreat!

Boss Zhou wants to unite various forces, take the lead in establishing a consortium, and then unify the financing of the TV drama market. You want to play monopoly! If we don't cooperate with him in the short term, I'm afraid it will be difficult for HBO to find better financing channels, and it will encounter huge difficulties in content production.

Zhou Buqi said: "My request is very simple and fair. If HBO does not operate well in the cooperation project invested by Platter, and the income does not meet expectations or falls into losses, then hand over the distribution rights and let the partners operate it. ."

"This request really touches HBO's red line," Richard shook his head repeatedly, "Zhou, this is impossible, it's really impossible..."

"Is it possible that you go back and hold a board discussion, or ask the higher-level Time Warner to make a decision?" Zhou Buqi did not give in at all, "This is my attitude. The TV series launched by HBO are all selected from the best. Selected from countless good projects. The capital preservation attribute of TV series is far better than that of movies. In this case, it can still suffer losses. I believe this must be HBO's irresponsibility to investors. I also believe that HBO should have better professional ethics."

After a pause, Zhou Buqi continued: "I am an entrepreneur, and I believe the principles are the same. If I start a business and start a company, and if I do well, I will definitely take control of the company. In my hands, I will not let the employer have any influence on the company's decision-making. However, if I do not do well and mess up an excellent project...then, please don't be stubborn, admit your shortcomings, and have higher standards. We should use our professional ethics to consider the majority of shareholders, abdicate when we should, let go when we should, and accept the arrangements of the management. Let's work together to make this happen. Google is so successful, and so are Yahoo and eBay. An open mind is what makes us what we are today. What about HBO? Can’t we do it?”