Chapter 3021: High-quality service is more expensive

There are many TV boxes now, and even with the domestic policy blockade, many TV boxes have appeared.

There are dozens of TV boxes in the market in the United States.

AppleTV is really not very competitive.

It’s not that the product doesn’t work.

But it's too expensive.

Not only is it expensive to buy the box, but the products in the box are also expensive.

For other TV boxes, there is no commission for the apps in the boxes. They are equivalent to a free platform that connects users and apps. AppleTV is different. It adopts Apple’s past principles of taking a 30% commission on paid apps.

In order to protect their own interests, the application side can only raise prices.

For example, Netflix’s monthly subscription fee for other TV boxes is US$9.99, and all US$9.99 belongs to Netflix. The subscription fee for Apple TV is US$11.99. Of the US$11.99, US$3.6 goes to Apple, while Netflix can only get US$8.4.

Two or three years ago, Netflix just launched the strategy of making its own dramas. The business was not stable enough, and the TV box was not mature enough at that time. Apple TV was very popular in the market with its excellent quality and reputation, and its sales volume increased sharply. .

Due to dual factors, Netflix reached a cooperation with Apple.

Netflix entered AppleTV and agreed to Apple’s request for a 30% commission.

Times have changed and things are different.

Now Netflix has established a firm foothold in the film and television streaming industry, and has become the first choice for most streaming media users to watch films and television dramas through the Internet. And Zhou Buqi is not idle either. The streaming media platform Peacock under Ziweixing Global, which has been brewing for many years, is about to be launched!

With Boss Zhou’s Internet experience and the world’s largest content library behind Ziweixing Global, it is conceivable that Peacock will definitely occupy a very important position in the streaming media industry!

If Netflix and Peacock both reject Apple's Apple TV, then Cook will be very passive, and Apple TV, which has already been selling poorly, may really not be able to survive.

It can be said that this time we are fully confident!

However, Zhou Buqi didn't expect to take action so soon.

Now he is busy with the listing of Ziweixing International.

I originally thought that after the launch of MSI's Peacock, I would officially join forces with Netflix and publicly announce their withdrawal from Apple's Apple TV, forcing them to submit.

Unexpectedly, Cook has a keen sense of smell.

After hearing that Ziweixing Global was going to launch its own streaming media platform, we quickly reacted. Without Zhou Buqi's explicit or implicit suggestion, he had already thought of this possibility and took the initiative to contact Boss Zhou.

Want to turn the crisis into invisible.

Don't give Zhou Buqi a chance to slap him in the face at all.

Cook sighed, "We have had many happy collaborations over the years."

Zhou Buqi smiled and said: "Of course, every cooperation is still fresh in my memory. Now we are still cooperating to fight against Qualcomm! However, cooperation is cooperation, and competition is indispensable. Competition and cooperation are the mainstream of modern society."

Cook frowned and said, "Is it really not possible?"

Zhou Buqi looked indifferent and said firmly: "There must be changes. Netflix has suffered a loss of 1k in the past year. After launching, the plan is to cause us a loss of at least 1.5 billion to 2 billion US dollars a year. We have paid It costs so much to build up the streaming media industry. What’s the result? Apple doesn’t offer any benefits and is still sucking blood from us.”

Cook waved his hand quickly, "That's not what you said. We provide a platform and services and charge a certain fee. It is normal."

"Is that your answer?"

Zhou Buqi glanced at him.

Calm and calm.

If Cook could make up his mind to talk to himself about this matter, he must have been fully prepared.

It is estimated that he has already made a decision, just wait.

Cook mused and said: "There are indeed many TV box products on the market, but none of them can compare with AppleTV. Other competitors are really poor. AppleTV's advantages in TV boxes are Far greater than the iPhone’s advantage in the mobile phone industry.”

"The biggest advantage in the mass market is price." Zhou Buqi didn't give him much opportunity to argue. "Redmi, Honor, Motorola, and Vivo have all launched smartphones priced at just over 100 US dollars. The next mobile phones will The market will definitely be turned upside down, at least in terms of total sales, the iPhone will no longer have any advantage.”

Cook said: "You are right, in terms of total sales, expensive products often lack advantages. However, expensive products also have inherent advantages. When expensive products provide expensive services, they are more likely to be criticized by users. Recognized.”

Zhou Buqi was noncommittal.

Cook continued: "The quality of Apple TV is far better than those of its competitors on the market, so Apple TV can not only be more expensive, but also can be more expensive than competitors when providing services for some platforms. This is not only The principles of Apple’s software and hardware ecosystem are also the most basic business logic.”

Zhou Buqi shook his head and laughed, "Let's solve the mystery!"

Cook said: "AppleTV can share revenue with streaming media manufacturers! This is the greatest sincerity I can express!"

"Shared revenue?"

Zhou Buqi raised his eyebrows.

Cook said: "For example, Netflix, in other TV boxes, the subscription fee is 10 US dollars per month, and the Apple TV subscription fee is 12 US dollars per month. I think this pricing strategy is reasonable. Apple TV It can provide better quality and better services, and it should be more expensive than its competitors. According to our calculations, Apple TV’s service fee is 20% higher than that of competitors. "

Zhou Buqi said: "The problem now is that even if Netflix increases its price by 20%, its revenue from Apple TV is far less than that from other places!"

Cook smiled: "Yes, so we just need to resolve this part of the disagreement. The point of disagreement is not whether the commission exists, but whether Netflix can get more by providing better services for Apple TV return."

Zhou Buqi was already sure that the other party came to him. He had already made plans before, and... he really wanted to make a concession!

If concessions are made, then the matter can really be resolved through friendly negotiation.

Cook said: "I have decided to reduce the commission of AppleTV from 30% to 15%. In this way, the services provided by Netflix in AppleTV, after deducting the commission, can be better than other TV services." This is Apple’s attitude towards its partners. This is the case with Netflix, and the same is true with MSI’s Peacock. You only need to increase the price of related products in AppleTV, and then AppleTV will only take a commission of 15%. "

Zhou Buqi laughed and said, "You really didn't suffer at all!"

Cook wondered: "The commission has been reduced from 30% to 15%. Isn't this a huge concession? Apple has shown the greatest sincerity in cooperation! Under the new commission model, streaming media manufacturers can provide services for AppleTV Get more money with AppleTV than with other TV boxes!”

In terms of quality, AppleTV is indeed much stronger than other competing products.

This is Apple's confidence.

Even if Apple TV is more expensive than other TV boxes and the content services it provides will be more expensive, Apple is confident that users can accept this price difference. Because of better service, there should have been higher prices.

Although AppleTV still has a 15% commission, as long as the streaming media manufacturer charges a slightly higher price on AppleTV, which is about 20% higher than other TV boxes, then Apple will take a 15% commission... In the end, the settlement will be Media manufacturers still make money. Although there are commissions for the services provided to Apple, they can make more profits.

This is really a solution.

Zhou Buqi doesn't care about the pricing method adopted by Apple products, as long as Netflix and Peacock make money, he said with a smile: "What about iPhone and iPad?"

"This is impossible!"

Tim Cook's expression changed and he categorically rejected it.