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Chapter 371 Qiao Gang Master

California, the city of Cupertino in the southern part of the San Francisco Bay, has gathered a large number of high-tech companies, including the famous Apple Computer Company.

Apple Computer Company has had poor performance since the mid-1990s. In the following years, Steve Jobs stopped the decline, but it encountered stock market crises and social and economic turmoil in succession. Development has not been very ideal. Even since ten months last year, the Washington authorities strongly interfered in the market economy, and Apple also launched a new generation of music players, but the stocks have only recovered slowly.

Some investors see that their investments are not profitable, and they can only choose to exit under the pressure of time costs and interest costs.

Pitro Wolf is such a person. He has been slow to see any profit when investing in Apple. Instead, the real estate market that he had previously worked in was about to become popular under the stimulation of various favorable policies of the authorities. He did not have the patience to continue waiting. After all, time does not wait for anyone, and the stock price of Apple rising every day is not enough interest.

It was his decision to abandon Apple and switch to the real estate market.

But when the shares are transferred, it is not easy to find buyers, and the investment market is not very confident in Apple.

Fortunately, he found out that a foundation in Los Angeles intends to buy Apple stocks. With the help of the middleman, he quickly negotiated the transaction with Scott Swift, the head of the foundation.

Today, the two parties signed a formal contract in the conference room of the Ritz-Carlton Hotel in San Francisco.

"Mr. Anderson." Pitro Wolf shook hands with the young billionaire from Hollywood opposite: "Our deal is finished."

Ronan said with a smile: "This is a pleasant cooperation."

Pitro Wolf had long wanted to get rid of Apple and put himself in the embrace of the real estate industry, and echoed: "It's true."

If you don’t invest in a good film industry, you will come to the muddy waters of Apple. This young man is really unable to think about it.

Attorney Dinah Ampton came over and whispered in Ronan's ear: "No problem."

Luo Nan nodded slightly: "I'll leave all the follow-up matters to you."

Signing the agreement is only part of it, and there is still a lot of work to be done later, and Apple also has to say hello and re-do the registration.

"Don't worry." Attorney Dinah Ampton whispered: "I need three days."

Ronan shook hands with Pitro Wolf again and said, "Mr. Wolf, I will pay the remaining amount in one go when all the procedures are completed."

This transaction was guaranteed by Bank of America as the account. Pitro Wolf was not worried that Ronan would default on the transaction payment or something. He smiled and said, "Mr. Anderson is young and promising, and hopes we still have opportunities to cooperate."

Ronan said very politely: "There will be."

Pitro Wolf did not stay for too long and quickly left. Ronan ordered Scott Swift to cooperate with lawyer Dinah to deal with various subsequent matters.

In this transaction, in addition to removing personal funds, Ronan also legally retried 30 million US dollars from Relativity Entertainment as dividends, easily raising enough funds.

According to the need to avoid risks, other companies held by Ronan’s personal foundation will not have direct intersection with Relativity Entertainment.

To put it bluntly, this is also the backup plan and retreat prepared by Ronan.

Even if there are serious unexpected situations in the development of Relativity Entertainment, Ronan can guarantee that he will not be done.

After several rounds of investment and acquisitions, plus this share transaction, Ronan already has 1.3% of Apple shares.

The rest is left to time.

There is also Amazon. The Amazon shares acquired by the foundation are close to 1.5% and Ronan is also investing in one after another.

This is almost in line with the development of relativity entertainment.

After signing this agreement, Ronan took advantage of the arrival of San Francisco and went to Netflix to take a look.

After receiving capital investment and share expansion and support from the entire platform, Netflix has developed rapidly in the past few months. In order to adapt to development, it rented out the entire small building in a bank branch. On the one hand, personnel expansion is required, and more space is needed to accommodate up to 20,000 DVDs with up to 20,000 films. On the other hand, it is.

On average, each video has up to 30 DVD discs, and it takes huge warehouse space to accommodate these 60 DVDs alone.

Moreover, the DVD library capacity is still expanding.

Ultra-low-cost DVD discs from across the Pacific are constantly being shipped to San Francisco.

Correspondingly, in addition to continuing to expand its online leasing business, Netflix is ​​also expanding the scale of online sales.

Disc sales are similar to Amazon's business, but Netflix has more rental business as a support. If customers want to keep the rental DVD discs, they only need to pay an additional $6.

Thanks to the low cost of discs, the increase in customer numbers and the continuous exploration of improved warehousing and freight mode processes, Netflix's costs have dropped rapidly.

The average single-piece shipment cost has been reduced to US$2.2, and weekly shipments have increased from less than 200,000 pieces to more than 200,000 pieces.

This directly brings a benefit. Through analysis of Netflix's freight data, FedEx concluded that Netflix's business volume will increase significantly every month, and has specially opened a freight channel for Netflix. The cargo sorting problem that had plagued Netflix before was also solved.

FedEx and Netflix have reached a long-term cooperation agreement. When Netflix's weekly shipments reach 300,000 units, the cost will inevitably be reduced to less than US$2.

The various publicity methods promoted by Relativity Entertainment for Netflix have made Netflix appear in front of more audiences. The most direct effect is the surge in the number of registered users. Although not every registered user can evolve into a paid user, Netflix's rental and sales model can undoubtedly cater to the needs of one of the people.

Moreover, the bloated Pepsi and conservative Hollywood videos have never left a very good impression on customers.

Netflix even shouted a slogan in the advertisement: "Everyone doesn't like renting late fees, Netflix never charges renting late fees."

Ronan also got another extremely powerful data for Netflix: households with DVD players across the United States soared to 25 million in April 2002!

Meanwhile, the sales price of DVD players fell below $200.

The price is far cheaper than video tape players, making DVD players popular at incredible speeds.

Now that optical drives are not yet standard for computers, Netflix cannot expect users to use computers to watch videos. DVD players are the basis for Netflix's business growth.

Felipe McNeley, a senior analyst from Gornard Consulting, focused on Netflix in his latest industry analysis report, believing Netflix is ​​a rapidly growing niche enterprise.

The outside world is recognizing Netflix.

In view of the good development situation, Netflix has quietly adjusted its goal for 2002 and changed the long-established 1 million registered users to 1 million paid users.

Everyone, including Ronan and Mark Randolph, is confident that Netflix will achieve this goal.

The Internet is far from reaching the extreme that it can withstand and display.

No one knows better than Ronan how crazy the Internet will develop in the future.

Netflix is ​​just the first step to enter the Internet and the basis of subsequent plans.

Ronan also needs Netflix to turn losses into profits, so as to get rid of the adverse situation of relying on the head office to transfusion.

Based on the current data, Mark Randolph made a certain future prospect, believing that as long as the Relativity Entertainment can develop at the current speed, it will provide Netflix with certain group platform support. Calculated based on the development of the Internet industry and DVD industry, Netflix will achieve an annual profit of US$50 million by 2005.

Of course, this is just a prospect. During the development process, a company cannot always develop according to the plan, and may encounter unexpected situations of one kind or another.

However, the promotion of the film platform of Relativity Entertainment has made Netflix profitable.

Promotion in other aspects is just like universal advertising promotion. It would be good if it is more than 10% effective. However, based on the promotion of relativity entertainment, the recipients are precisely movie fans from all over North America. These people are the largest consumer group of movies online and offline, and the effective promotion rate is extremely high.

The DVD of "Resident Evil" has been launched, and Netflix's advertisements implanted on the DVD set have attracted many fans to become registered users of Netflix.

Although most people don’t pay to rent movies, taking the first step may take the second step.

Videos suitable for implantable advertisements such as "The God of Death 2" and "The Spy Shadows" released during the summer season will directly appear in Netflix's implantable advertisements.

As for the Internet Navy spreading various news about Netflix on major film and television forums, it has never stopped since January.

In addition, Netflix continues to optimize its website and shipment process, so that customers can enjoy the best treatment.

In the mouths of Reed Hastings and Mark Randolph, they had the idea of ​​creating Netflix because they couldn't stand the bad service of PepsiCo and they could never make the same mistakes as PepsiCo.

Having said that, Pepsil was also a stepmother in Viacom. Summer Redstone acquired Pepsil in that year and was interested in Pepsil's stable cash flow.

Viacom doesn't care much about PepsiCo's business and transformation.

After staying at Netflix for a few days, Dinah Ampton's lawyer informed Ronan that various procedures had been completed, but Ronan needed to go to Apple in person to complete some internal equity changes procedures.

Ronan chose a Monday to come to Cupertino, the southern part of the San Francisco Bay, where Apple's spaceship headquarters and the Jobs Theater were all invisible.

In the old Apple office building, Ronan completed all kinds of procedures and was about to leave, someone suddenly came to find him.

"May I ask, are you Mr. Anderson?" The woman who came over was a woman in her thirties: "Mr. Jobs wants to talk to you."
Chapter completed!
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