Chapter 688: Expanding the Industrial Layout
Nicole can temporarily throw away his work and rest, but Ryan cannot. Disney is entering a stage of rapid development. As an excellent professional manager, Robert Eiger has never forgotten to expand Disney's territory. Moreover, he is also one of Disney's larger individual shareholders, which is closely related to his interests. ```23wx`
In recent years, major Hollywood film companies have replaced CEOs. Managers like Ron Mayer who have experience in content production are no longer popular, and are replaced by Robert Iger, a group of people who have no actual film production experience but are extremely good at dealing with interpersonal relationships and marketing promotions.
In Hollywood, content manufacturers are always at the bottom of the publisher, and labels with North American and even global distribution capabilities are at the top of the Hollywood food chain. Especially after entering the new century, the so-called six major manufacturers, except for Disney itself, have all been acquired by media companies, which further expanded their advantages in distribution.
Since decades ago, Hollywood has been a giant game, and now it is no exception.
Among the six traditional companies, only Disney has maintained high production and high investment in films, and rarely accepts foreign investments such as private film funds. Moreover, the division of labor at the top is quite clear. Ryan is in charge of content production, and Dick Cook and Robert Eiger are responsible for daily work such as marketing and promotion.
In his previous life, Ryan was one of the grassroots members of the film industry. He knew that the future entertainment distribution would become increasingly fragmented. It is very important for an executive with a keen sense of changing markets to be responsible for the company's promotion and expansion, so that Disney can quickly respond and reposition the content investment strategy.
This may not mean there will be better movies, but it will definitely mean there will be smarter business.
“Robert knows how to expand Disney’s horizons and search for potential resources for new entertainment businesses both outside and within the company”
This is what Ryan once said to Nicole. Perhaps he first activated the other party more because of the factors he knew about his previous life, and it was also a helpless move at that time. But Robert Eiger's ability is indeed unquestionable.
He has made extremely outstanding achievements in promoting Disney's copyrighted works to offline platforms, and even shortened the window period from theaters to home-entering to four months at present!
Since 2002, among the films produced by Disney, non-themed films accounted for more than 70% of the total film revenue. Among them, high-quality films brought by Ryan are the key. On the basis of Disney's original basis, Robert Eiger further strengthened the vertical integrated industrial chain of content production, online and offline distribution, and peripheral channels, which also played an important role.
During the Jenkins Films era, Ryan created the movies. Later, they could only rely on simple copyright transfer fees and sales commissions to achieve extensive profits, but Disney itself has the ability to magnify these revenues to the limit.
The film industry is undergoing a transformation, and traditional models will definitely be gradually eliminated.
Most typical, after major film companies became part of media groups, creative geniuses rarely appeared among senior executives, and their attitude towards brokerage companies was stronger, such as caa.
Since the late 1990s, it has been difficult for caa's agents to rush directly into the offices of the senior film company as they did in the past. The people who deal with them have gradually changed to some of the lower-level employees of the film company, and their bundled sales strategies are even more difficult.
Even if caa's agents occupy more than half of Hollywood's market, they are actually not enough to watch in front of media groups.
Times have changed, and business thinking and business methods will definitely change accordingly.
Just like Disney, in addition to its stable and inherent advantage, it has been working hard to expand into the Internet. And the pace of expansion has never stopped.
Tube is the largest online video website in the United States and even the world. The impact of this industry on the media industry has been fully demonstrated in the past year. Although it has only barely achieved balance between income and expenditure in the first half of this year, the future and potential of yotube are favored by countless people.
The online videoization of movies is a future that most Hollywood management can see, and Disney is of course no exception.
Just this month, Disney invested $35 million to jointly establish another online video website with Twentieth Century Fox. This website is not the same as Tube's business strategy, and it aims to develop potential paid users as its main goal.
This is just another beginning for Disney to make its PC layout after Facebook and Twitter. Also this month, Disney expanded Ryan's personal website to become Disney-Ryan Family Online Channel. The target of this website is directly aimed at the main group of the current network - teenagers!
With Marvel Comics completely digested, Jenkins Pictures and Pixar Studios, Disney has once again embarked on the path of expansion.
Subsequently, Disney, under the promotion of Ryan, issued a good-faith acquisition application to Netflix.
The latter is an online video rental provider that can provide DVDs for many videos, and allows customers to quickly and easily select videos, and deliver them for free.
As early as a few years ago, Netflix was the target of Scott Swift's investment, and Ryan's foundation has always held 5% of its shares.
This website currently has millions of subscribers, and its development speed in recent years has not been particularly fast. Last year's annual profit was only US$11.9 million, but this is not a problem with website operation. They are mainly trapped by copyright, do not have enough excellent content, and the channels they have opened up are just castles in the air.
Disney has the least lacks content, and as a loose interest alliance, it is not too difficult to licensing those excellent films from the library of companies such as Warner Bros. and Twentieth Century Fox.
In order to complete the acquisition, Disney offered $1.45 billion to buy at a premium of more than 5% of Netflix's market value.
Netflix's management has not yet responded publicly, but from the news from the inside, many shareholders of the other company are interested in selling their shares to cash out. The final obstacle must be the price issue.
What Ryan is most worried about is not Netflix’s shareholders, but other companies. If a new company joins this acquisition, a good-faith acquisition will inevitably turn into a malicious bid.
Fortunately, there was no long wait, and news came from Netflix that could be negotiated, and the rest was waiting for the long negotiation result.
For acquisitions of this scale, Disney does not need to use liquidity or financing at all, just reserves are enough.
Netflix is just one of Disney's goals. For Disney, the most basic and fundamental business is their biggest goal.
Whether it is Disney's management or Disney employees, they always put themselves in the position of world animation overlords.
So, when Robert Iger found Ryan and negotiated his next acquisition target, he was slightly surprised and returned to normal.
"Robert, you mean..." Ryan looked at Robert Egg, who was sitting opposite him seriously, "Will we take the DreamWorks Animation Studio?"
"Yes." Robert Eiger said equally seriously. "I have already discussed it with Cook, and this is completely feasible."
In terms of strength alone, Disney's devourment of DreamWorks Animation Studio is just a slight idea. The latter's market value is less than US$1.5 billion, and even the highest market value in his previous life was only about US$2 billion. This amount of money is nothing to Disney today. If financing is raised, Ryan can even solve it alone.
"Ryan, although we have Pixar Studios and Disney Animation Division," Robert Iger continued. "But these two subsidiaries have extremely low production and are implementing high-quality strategies. DreamWorks Animation Studios' philosophy is just the opposite. They can produce three to five cartoons at a time. Although there are failed products like Shark's Story, for Disney, as long as there is a one-quarter chance of success, it is enough for us to make profits through various channels."
As the largest shareholder of DreamWorks Animation Studio, Ryan naturally knew that Robert Eiger was talking about the facts. Under the auspices of Jerryfor Carsonberg, DreamWorks Animation embarked on the same development path as in previous lives and won by film sea tactics. In recent years, in addition to the successful Monster Shrek and Madagascar, they also produced terrible works, but they still made profits every year, although the profit was not too high.
"Robert, have you ever considered Jerry Verge? Carsonberg?" Ryan reminded him not to forget that the other party was the president and creative director of Disney's animation department.
"That's been in 1994." Robert Eiger knew the grudge very well, "It was Michael Eisner who drove away Jerryfor, let alone..."
Without saying anything later, Ryan understood that as long as there is enough profit, this small grudge is nothing.
“We need a competitive opponent.”
Blue Sky Studio only has the signature "Ice Age" and does not have the strength to compete with Pixar and Disney animation. "The competition can keep Pixar and Disney animation departments energetic enough, and we also need an opponent to deal with the federal government's monopoly bill."
This is not the time when the Universal and Warner Animation Departments develop in the future. Both are still in the exploration stage. Not to mention whether the monopoly will be established, but related investigations alone will cause a headache. And countless past experiences have proved that once the competitor is lost, the consequences will be very terrible.
"I agree to this acquisition in principle, but not now," Ryan said at the end. "Robert, you can take a stake in DreamWorks Animation Studios to deal with future acquisitions." (To be continued...)
Chapter completed!