Cang Yaozu certainly knew Reed Hastings, who was the founder of Netflix, and Mark Randolph was the co-founder of Netflix.

Netflix is ​​also called Netflix, which many people may not know, but it is indeed a company that has changed the industry. It challenges Blockbuster, a giant in the DVD rental industry, enters the streaming industry, benchmarks YouTube, starts shooting self-produced dramas, and challenges Hollywood.

Successfully triggered a chaotic war among streaming film and television giants. Apple, Disney, Hulu, YouTube, Amazon, and NBC Universal all joined the battle.

So what is the fundamental reason why Netflix competes all the way and wins continuously, with a market value exceeding 100 billion. What is the fundamental reason for its 200 billion market value?

Cang Yaozu believes that it is a human, or technology. Netflix was very hard in the first five years of its start, but it was not defeated because they had advanced Internet concepts and the application of big data technology.

These two magic weapons can make Netflix not afraid of any opponents.

Netflix has to face the competition of Blockbuster, an industry giant, by adhering to the offline and online development route, it survived and endured the industry giant Blockbuster to death.

Offline and online, this is the early O2O, and this is exactly what Mark Randolph brought about. Mark Randolph has been working in the field of direct mail marketing since he graduated from university in 1981. This can be said to be the starting point of e-commerce. Mark Randolph has his own e-commerce gene.

Mark Randolph has a keen and unique understanding of customers. His uncle is Edward Burnas, the famous father of modern public relations.

Mark inherited his uncle's philosophy and advocated liberating people's subconscious desires - love, respect and sex, and applied it to the actions of shaping modern consumers in Citigroup. Like his uncle, he was obsessed with studying how to use product publicity to induce consumers' specific behaviors.

Netflix's big data gene comes from founder Reed Hastings, who is a major in mathematics and is good at algorithm design.

Reed's great-grandfather, Loomis, was a famous mathematical genius in the last century. He used his mathematical talent to invest in stocks.

The mathematical gene is deeply rooted in Reid's body. Since his second year in college, Reid has won the highest mathematics award in the college he attended.

Reed, who is looking for perfect mathematical algorithms, lives his life to define all kinds of natural and human pleasures.

It can be said that Netflix's success is closely related to Reed Hastings and Mark Randolph.

The dinner was arranged at the Montage Hotel in Beverly Hills. Six people sat at a large table, including Cang Yaozu, Jennifer Aniston, Thomas Tour, Robert Eiger, Reed Hastings, and Mark Randolph.

Mark Randolph has a strong communication skills and is chatting and laughing with Thomas Tour and Robert Iger. Cang Yaozu and Jennifer Aniston have a lot of chatting, and the two are just the time when they are in a warm mood. Robert Iger and Reed Hastings should talk less.

After the meal was finished, the waiter brought the coffee and several people began to talk about the topic. Robert Eiger invited Mark Randolph to jointly establish an e-commerce platform, which mainly provides sales and rental services around movies, TV videos, comics and various movies.

Robert Eiger sent a formal invitation to Mark Randolph and the others: "We agree with Mr. Mark Randolph's e-commerce philosophy and hope that you will lead the project."

Mark Randolph glanced at Reed Hastings and said, "Thanks to Marvel for his value on us, I am very willing to engage in e-commerce. Unfortunately, Reed and I are planning a new startup project."

Robert Eiger asked: "Oh, what industry do you plan to work in? Is it also e-commerce? It happens to be together. We have a lot of resources and sufficient funds, and you have technology and philosophy. We happen to have a big scene together."

"Mr. Egg, I'm a little confused when you listen to your plan. Are you targeting Blockbuster or Amazon? Both of these opponents are very powerful." Reed Hastings suddenly interrupted.

Robert Eiger smiled and said, "Yes, these two opponents are very strong. Our e-commerce category is only related to film and television. This is our main business.

Of course there are also comics. Although comics belong to books, they are one of the more special categories. Moreover, we Marvel will create a series of superhero films based on comics in the future, so comics can actually be regarded as movie peripherals.

At most, there will be some biographies of filmmakers, movie scripts, and original novels. There will be no more book categories. So the competitors should not be Amazon in the early stage, and there will be more competition with Blockbuster in the early stage, and there will be differentiated competitive categories in the later stage."

"Then how do you plan to compete with Blockbuster? Blockbuster is a subsidiary of Viacom. Mr. Redstone acquired Viacom two years ago at a price of $7.6 billion."

"We will build it with the online rental and sale model of regional storage centers of flagship experience stores. The biggest difference from Blockbuster is that the products are different. PepsiCo rents video tapes, we use DVDs, and we do not charge late fees."

"Well, Mr. Eiger, our ideas really coincide. In fact, we also want to do this business. But my ideas are a bit different from you. I hope to use the Internet company model to rent video tapes and use the online e-commerce business model to reduce costs.

Mr. Eiger, you may not know that I am good at writing and optimizing algorithms. I can comprehensively optimize the website’s recommendation function and increase the user’s conversion rate, so that profits will come soon.”

"Well, great idea. I want to invite Mr. Hastings as the CTO of the new company. I wonder what you think?"

"Oh no, Mr. Eiger, I hope this company is led by me, I can lead the company to make rapid profits. I just led a company to go public last year. I have a lot of experience in this area."

"We can talk about the specific shareholding ratio. Mr. Hastings, we expect to invest 100 million US dollars in the early stage, and the company is built in Los Angeles. By the way, we will start shooting superhero videos in the near future and release a large number of new comics, so the startup of this company should be fast."

"This company doesn't need so much money in the early stage. We can invest three to five million to build the website. Moreover, the company should be built in Silicon Valley. The atmosphere there is more suitable for the development of technology companies and there are enough technicians."

"This, Ayao, what do you think of Mr. Hastings' statement?" Robert Eiger disagreed with Hastings' insistence, but he did not directly refute it, so he asked Cang Yaozu's opinion.

"It's okay to build a company in Silicon Valley or Los Angeles. If you have money, there will be people, even if you are far away in Las Vegas.

In the Internet era, the key to the survival of a company is speed. We cannot delay and wait, as it will delay a promising company.

As long as the concept is correct, Internet companies can use massive funds to generate a large number of users, and a large number of users will attract more funds. In this cycle, the company will generally not be able to go public in more than three years."

Mark Randolph agrees with Cang Yaozu's statement, but he saw that Reed Hastings's face looked a little ugly. He knew that Reed had always wanted to start a business again, so they studied Blockbuster's business model for a while and discovered a loophole in Blockbuster, that is, Blockbuster's late payment fee has caused users to criticize. At the same time, the two also noticed the emergence of DVD machines. They believed that DVD disc rental business could be launched to avoid head-on competition with Blockbuster, and win the market and users through differentiation.

"This, Mr. Kuraku, is it too risky to expand rapidly. Are you not afraid of investment being wasted?"

"No, the development of the Internet is the general trend now, and every industry must embrace the Internet instead of resisting. There is a saying in China: Those who follow the trend will live, and those who go against the trend will die.
Chapter completed!