I'm afraid no one had expected that the competition between Renren Film and Television and Google would trigger a war in the video industry, and it would be an inevitable start regardless of region or market, whether in Hollywood or domestic North America, the online video industry would have a fight.

In this competition, no one will voluntarily withdraw. Neither Internet media giants, traditional media groups or Hollywood Pictures will quit easily.

This is a competition between industries. With the situation in the music and record industry ahead, no one is willing to be a tool person.

What’s more important is the dispute over interests represented by this, that is, the dispute over advertising revenue. This is the key point. No one is willing to do a loss-making transaction.

Since the rise of the Internet industry, apart from a very small number of industries such as games and e-commerce, which have their own profit methods, most of the other industries rely on advertising revenue.

This year, the market size of Internet digital advertising in the North American market exceeded US$47.2 billion, which is naturally far inferior to traditional media advertising, namely TV stations, newspapers, radio stations, outdoor advertising, etc. This year, the scale of traditional advertising in North America exceeded US$130 billion.

But it cannot be ignored that the revenue of Internet advertising is growing too fast. It took a hundred years for the traditional advertising market to achieve it. Internet advertising only took less than twenty years, and digital advertising is still growing at a rate of more than double every year. It doesn’t take long to predict that Internet digital advertising will surpass traditional print media advertising revenue!

However, the size of the advertising market cannot grow without limitation. As the Internet digital media grows, the advertising revenue of traditional media will decrease, which is foreseeable.

This time it is not so much a competition between these traditional media and Renren Film and Television, Google and Yahoo, but rather a struggle between these traditional media. If they don’t fight, their nests will be occupied!

On the other hand, these traditional media groups are also attracted by the global development speed of the Internet. You should know that the global media advertising scale exceeds 500 billion US dollars every year. It is too difficult to rely on traditional media to occupy these markets.

Murdoch is so powerful that it took him several decades to build a media empire across Europe and the United States, while Internet media may only take a few years to do it.

The wealth is moving, coupled with the survival crisis, the traditional media group has exploded with amazing motivation and looks very active. The whole North American traditional media and Hollywood support Huo revealing is enough to illustrate the problem.

However, Chen Chu didn't care too much about these competitors. Now he was watching the excitement, it seemed that Renren Film and Television made enemies on all sides and was besieged by the entire industry. However, Chen Chu felt that there were only a few companies that could threaten Renren Film and Television.

Google Video, Microsoft Video, News Corporation's MySpae, Yahoo Video, etc. are all just watching the excitement, but today is different from the past. They want to learn from Renren Film and Television, buy film and television copyrights crazy, and then attract users. The cost is too high.

Just like the copyright of the same film and television, Renren Film and Television only needed 30,000 US dollars when it was purchased. Now Google may not be able to buy it for 100,000 US dollars because the competition is too fierce. The first thing these newly established film and television companies do is to establish a copyright library, otherwise users will click in to see a hammer.

This has caused the price of film and television copyrights to soar, even to be outrageously expensive. Even if Google really used 1.6 billion US dollars to build a film and television copyright library, Chen Chu felt that it was very difficult.

Google is like this, and Yahoo is not much better. As for Microsoft, MySpae, etc., it is unknown what level it can do. They are all famous for entering and destroying each other. Microsoft almost killed itself when it is used to play game consoles. News Group often buys new industries and will go bankrupt in no time. The two companies are basically half a dozen.

Especially News Corporation, which has never been involved in the Internet industry. How much strength can be exerted in this large-scale attack depends on God's will.

What made Chen Chu most afraid of is Hulu Video. Several North American media giants have strong support, and the support of Hollywood has made Hulu Video's film and television copyright library no different than Renren Film and television, which has been hoarding copyrights for several years, and the cost is much lower. Once competition begins, I'm afraid that Renren Film and Television will face a tough battle.

As for the other one, it is Amazon. Chen Chu knows Bezos' personality and strength. Now Amazon's video business seems to have little reputation, and it is also engaged in Amazon's e-commerce.

That is, it cooperates with other film and television companies to let those film and television companies sell TV series and movies on Amazon's video platform. Amazon will not involve homemade content, which means it will not compete with other film and television companies.

But Chen Chu doesn't think Amazon and Bezos will be white lotus. After Amazon's video platform has enough users, if Bezos doesn't acquire copyright and does homemade content, he will be sorry for losing those many hairs!

Chen Chu is the most afraid of Hulu Video and Amazon Video, but Renren Film and Television is now the most advantageous. As long as you don’t lose your own way, don’t make any trouble, and continue to fight steadily, in a few years, after all the money on those video websites is burned out, it’s Renren Film and Television’s turn to come forward to clean up the situation.

When Chen Chu thought of this, he always felt that he had ignored something, but he couldn't remember it for a moment.

Renren Film and Television’s acquisition of Tube is in full swing, and major video websites are in turmoil, but for Netflix, a California-based video rental company, this life is really difficult.

Blockbuster, which was about to be defeated in the past few years, is now fighting against Netflix. The continuous price wars almost dragged down Netflix's cash flow.

I'm afraid Chen Chu would not have thought that Renren Film and Television's biggest role in acquiring Blockbuster was not to have Blockbuster's users and stores, but to delay its rival Netflix for two years. In the past two years, Netflix has fallen into the quagmire of competition with Blockbuster, and its performance has deteriorated, let alone launching new businesses.

After being acquired, Blockbuster has regrouped and relied on the support of its parent company, it has completely recovered in recent years. As its archenemy, Netflix, life has not been so easy. From the market value of Blockbuster's $2 billion, it has now only less than one billion dollars, almost half of it.

Netflix was proud of its light asset operation, but now it is facing an embarrassing situation. The offline discount activities carried out by Blockbuster are attracting users to rent discs at Blockbuster's store and then selling electronic products to make profits. Netflix can't learn this method. Netflix only has warehouses for rent in North America, but there are no stores at all.

Netflix now cannot beat Blockbuster. Blockbuster's profit is much higher than Netflix, and there is also a wealthy funder behind it. Netflix's revenue has been falling for three quarters, and it even suffered a rare loss last month. This is the first time in Netflix's nine years since its establishment. You should know that Netflix has made a profit of US$100,000 since its first month of establishment, but now it is starting to lose money.

It was the office where Netflix had a meeting when Renren Film and Television was first established. However, unlike when he scolded Robert Kingsso for being stubborn and leaving Netflix for Renren Film and Television, now Netflix no longer criticizes Robert Kingsso, but instead envies him.

Even Netflix president Reed Hastings himself had to face Robert Kingsor, who was born in Netflix's small director again. Now he is far beyond him. Renren Film and Television is already a huge media and television giant, and Robert Kingsor has become the most powerful figure in Hollywood.

Even just one sentence, Robert Kingsor can affect Netflix's business. As long as Hollywood companies are not working with Netflix, DVDs, CDs, and VCDs are not being used through Netflix rental, Netflix will be hit hard.

The Netflix conference room was silent, both executives and Wall Street directors were silent and looked at the conference room. Reed Hastings sighed in his heart. It was just a matter of thought that Netflix has reached this point now.

I remember that as soon as Renren Film and Television appeared, Reed Hastings proposed that Netflix involve the online video field, but it was opposed by many Netflix management and Wall Street directors. He happened to encounter Renren Film and Television's acquisition of Blockbuster. In the end, this proposal was shelved, and it turned out to be the current situation. Netflix was in a dilemma.

The DVD rental business is now declining sharply and is being chased by Blockbuster. The risks faced by the risk of transforming into other industries are too great.

The conference room was silent, and Netflix market manager stood up with a tough bullet. "If you continue to engage in a price war with Blockbuster, Netflix's loss in the next quarter may reach 21 million, and our market share may be reduced to less than 40%. Blockbuster rumored that it has taken out huge user subsidies, extending the rental time of user discs and reducing rental costs..."

There is almost no good news in the market, finance, and revenue. Even bad news came from the business department. Blockbuster and Netflix both delivered discs to users through FedEx, and Blockbuster actually increased the cooperation costs of FedEx, which is obviously disgusting Netflix.

Increasing the express cooperation fee means an increase in operating costs. If Netflix does not increase it, FedEx will definitely reduce its cooperation with Netflix, reducing Netflix's user experience. This is almost an unsolvable loss trick. To put it bluntly, Blockbuster simply does not make money from this business, just to disgust Netflix!

"If there is no way, you can consider cooperating with Blockbuster!" At this time, the investment director of Wall Street suddenly spoke.

The entire conference room immediately buzzed, everyone understood what this said. This means that Netflix was gone, so it would be better to sell himself to Blockbuster. Reed Hastings looked sharply at the Wall Street director. The director stared at by Reed Hastings couldn't help but turn his head. He felt that Reed Hastings's eyes were about to kill him.
Chapter completed!