Chapter 523 (1/2)

Nancy Brill had an ambitious hope that blockbuster would achieve $5 billion in revenue within three years, accounting for half of the video market.

In 1991, blockbuster's revenue was $2.31 billion. In 1992, the revenue scale of blockbuster was estimated to be US $3.36 billion, with an annual growth rate of 45%.

With the complete completion of blockbuster's global chain store layout this year and the sustained high-speed growth of the global video market, it is not a big problem for blockbuster to achieve the same growth rate as in 1992. The same 45% growth rate means that the annual revenue of blockbuster in 1993 is expected to be close to US $5 billion.

For three years, the triple jump plan was officially completed.

Although it is inevitable that there will be some deviations. For example, a large part of the estimated revenue of 5 billion US dollars will come from the same high-speed growth of film peripheral product revenue, it is only a matter of time before blockbuster continues to expand and cut half of the video market share.

Any enterprise, once in a certain industry market share more than half, must consider looking for new performance growth point.

In the original time line, blockbuster, after becoming an oligarch in the industry, also tried to diversify, set foot in the recording field, run cable TV, and even opened theme parks, all of which ended in failure.

Now blockbuster and Simon's memory of that bloated and inefficient video chain giant has been completely two companies.

However, with the expansion of blockbuster's existing business about to touch the ceiling, it is still necessary to find a new growth point.

Getting involved in the field of film and television production and distribution is Simon's next expansion route for blockbuster.

At the same time, blockbuster provides a set of new distribution channels for small and medium-sized film companies, which is also conducive to Denise entertainment to further strengthen its control over Hollywood film distribution channels.

”Independent production and distribution of films is only the most basic promotion to the revenue of blockbuster. Having exclusive content can not only further enhance the brand awareness of blockbuster, but also strengthen the user's adhesion to blockbuster and avoid the loss phenomenon. This is more than one stone. ”

Inside, Simon and Nancy Brill talk about the benefits of blockbuster's direct involvement in production and distribution.

After listening to Simon, Nancy Brill said, ”but Simon, the risk of independent production is very high. The reason why many second - and third tier film makers in Hollywood go out of business is that they can't see their position clearly and set foot in the field of production blindly.”

”So, why do they do that?” Simon looked at Nancy with a smile and said, ”the key is that the potential benefits are too great. Just like the original new line, a self-made ”ghost Street” sold well, which directly promoted the strength of this small workshop style third tier film company to a higher level. ”

”But as far as I know, the new line is on the verge of bankruptcy now.”

”That's because of the lack of accumulation and information of the new line itself, or the element of bad luck,” Simon said patiently. ”These are not problems for blockbuster. The comprehensive strength of blockbuster is better than Columbia and MGM, and it also has sufficient funds. ”

Nancy also pointed out a key problem: ”the exclusive video channel and the lack of cinemas and TV shows that can enhance the film's popularity have greatly limited the scale of blockbuster's film production. It is difficult for us to undertake the production of blockbuster films.”

Simon, of course, also considered this issue and said: ”so in the early stage of the plan, blockbuster mainly focuses on” distribution ”, expanding its exclusive content by buying out the completed film copyright of the film company, and trying to invest in low-cost films independently. When blockbuster's strength is further improved and it has a firm foothold all over the world, we can try large-scale production. What's more, blockbuster's personal participation in film production does not necessarily have to be completely exclusive of the video channel. It can still carry out cinema and TV distribution, but only in the video channel, blockbuster is exclusive. ”

”In fact, I was thinking,” Nancy looked at Simon and said, ”Denise entertainment can give blockbuster exclusive rights to content when it releases its videos.”

”I've thought about that too,” Simon said, shaking his head. ”But first of all, blockbuster's current strength is not enough to fully stimulate the commercial potential of a Denise entertainment blockbuster in the video channel, which is the most important point. Secondly, the market share of Denise entertainment is high enough now. If it does, it is likely to attract antitrust lawsuits from other video chain companies. ”

Content monopoly is common in the process of Hollywood film distribution.

In the process of cinema distribution, some powerful cinemas often ask for exclusive distribution rights of a film company. Video chain, television network and other channels, similar cases are numerous.

The problem is that the goal of Denise entertainment is too obvious.

For example, if daenerys entertainment gave last year's box office blockbuster ”Wonder Woman” to blockbuster for video channel distribution alone, not to mention whether the chain company focusing on leasing business can fully release the commercial potential of ”Wonder Woman” and other video manufacturers that can't get involved in ”Wonder Woman”, it will not be reconciled.Just as it happens, blockbuster is also a subsidiary of Denise entertainment, which gives competitors enough excuse to sue Denise entertainment for suspected monopoly.

In contrast, if second - and third tier film makers sell off the copyright of some works to a certain video tape manufacturer, they will not attract much attention at all.

There are about 500 films in Hollywood that can enter theaters every year, but in fact, the number of films produced has more than doubled. For those films that cannot be released in theaters, they can only be released on video or TV. There are even some film makers who don't expect cinema distribution at all. They specialize in the video and TV markets from the beginning. Many small film makers are very prosperous because of the strong demand for content in these two fields.

As the conversation continued, Nancy Brill gradually understood another meaning from Simon's words. She even stopped to eat, stared at the man opposite without blinking, and said, ”Simon, if I guess right, do you want to develop blockbuster into Hollywood's” eighth largest ”

Before the annexation of MCA, danelis entertainment has basically risen to the eighth largest studio, which is tied with the seven traditional Hollywood studios.

With the completion of the merger of MCA, Hollywood has returned to the state of coexistence of the seven, but this time, the seven, to be exact, should be Denise, Warner, Disney, paramount, fox, MGM and Columbia.

Now in Hollywood, Denise entertainment not only accounts for nearly 40% of the film market share, but also indirectly controls MGM. Although this company, with the support of Denise entertainment, still had only 7% of the film market share last year, it is still one of the old Hollywood film companies.

With the control of two major Hollywood studios and such a high market share, it is unrealistic for daenerys entertainment to further expand by annexing other studios.

Even if the westrow system has a deep interest relationship with Bill Clinton, it is impossible to cross the threshold of anti-monopoly.

Therefore, if we want to further expand, we must find another way.

It is Simon's strategy to eliminate second - and third tier film makers and weaken other studios.

Further expansion of blockbuster is another move of Simon.

First of all, blockbuster's current strength is not inferior to that of some Hollywood studios, and there is no lack of room for further expansion. Second, the apparent nature of the video chain allows competitors and federal regulators to ignore the company's threat.

Finally, there is another point. Nafi, who was originally in time and space, completed the counterattack against Hollywood as a video rental company and became a super media group juxtaposed with Disney.