Chapter 528 (1/2)

Fashion TV, a long-standing Fashion TV station, will be on air on February 8.

When the media was troubled by the market value of Cisco and AOL exceeding $20 billion at the same time, Simon arrived in New York on February 6 to personally participate in the final preparations before the launch of Fashion TV.

The person in charge of Fashion TV is Anna Coleman.

This is a dark haired woman who looks about 35 years old. Yes, Coleman. Still Jewish.

Simon chose each other, not because of ethnicity.

Of course, Simon also knows that Anna Coleman will finally stand out with the promotion of Amy Pascal and Robert egger.

The last few candidates are basically Jews.

Simon has not been too sensitive to ethnic issues, but also has no aversion. All he needs is a qualified professional manager.

Anna Coleman once held important positions in the comtenas group, which owns vogue, CQ, vanity fair and other well-known fashion magazines, and the MTV television station of Viacom. When she was the vice president of MTV program production department, she launched the very successful ”house of style” program.

In Simon's memory, ”house of style” still exists until 20 years later. Moreover, the first host of the show from 1990 to 1992 happened to be Cindy Crawford. Cindy resigned as host before last year's Weimi show.

To a large extent, the positioning of Fashion TV is equivalent to a ”dynamic fashion magazine” carried on the TV platform.

Therefore, Anna Coleman's resume of working in both the company and MTV TV station is very suitable for this job.

On the other hand, after several months of operation, Fashion TV is expected to reach 23 million users and cover 60 million people through the main North American operators such as Comcast and Warner Cable.

At the same time, the share between danielis entertainment and the operator was set at 15 cents.

In other words, operators will pay Denise entertainment 15 cents a month for each access user to buy content.

According to the size of about 23 million access users, depending on the share of operators, Fashion TV will be able to determine the annual basic income of 40 million US dollars.

As a basic cable station, Fashion TV can also insert advertisements in its programs. Generally, the advertising revenue of a basic cable station can be equal to the revenue shared by the operators. Considering that fashion TV has just started broadcasting, Denise entertainment is not in a hurry to launch ads to the TV station. Therefore, it is estimated that the advertising revenue will reach about 50% of the operator's share in the two years before the broadcasting, which is about 20 million US dollars.

The minimum revenue of 60 million US dollars in the whole year seems to be very rich. However, compared with the operating cost of a national cable TV station, the money is still not worth mentioning.

It's just that the annual expenses of the 200 member North American operation team in terms of basic salary and office space are expected to be no less than US $30 million.

As a 24-hour fashion channel, even if the budget cost of Fashion TV programs is not too high, the sum of many projects, together with the essential marketing and promotion costs of TV stations, is expected to be no less than $50 million.

As a result, Denise entertainment has made a psychological expectation that it will lose at least $20 million a year in the first two years of broadcasting.

And it's just North America.

Simon's expectation of Fashion TV is a global fashion TV network.

In the original plan, Simon wanted fashion very much TV can be broadcast simultaneously in Europe and North America, but he still underestimates the instinctive protectionist resistance of European countries to the invasion of North American media companies. In fact, this is also very normal. The United States now also does not allow foreign companies or individuals to hold American TV stations, and this ban will probably come into contact in the next year or two.

In Europe, the UK, which has the most open market, has no ban on restricting overseas companies from investing in TV stations. Therefore, the preparation of Fashion TV in the UK is the most smooth. It is expected that it will be launched in the UK through News Corp's Sky Broadcasting Company in April.

Obviously, this has missed the four major fashion weeks this spring.

Although sky's TV network covers most of Europe, the relevant TV stations still need to pass the audit of governments if they want to go online in various countries.

Judging from the current approval situation, France, the most developed country in the fashion industry, is the most difficult. The local fashion giants are quite resistant to Fashion TV. LVMH and other companies are already preparing their own fashion TV network, and the audit progress of other Italy, Spain and Germany is also different.However, Fashion TV will be available in most European countries by the end of this year at the latest.

As for the reasons, Simon remembers that in November 1993, the European Union will be officially established. By that time, the markets of several major countries in the European continent will be open to each other. When Fashion TV is launched in the UK, it can basically be transmitted to the whole European Union.

Since Fashion TV can't be launched in Europe in the short term, Denise Entertainment's main focus is on North America.

In terms of content, Fashion TV has successfully won the right to broadcast the show content of the world's major luxury brands in the past five years. Even European luxury brands such as LVMH, which are worried about the relationship between Denise entertainment and melisandro, have not refused to provide content to Fashion TV.

These companies also clearly understand that giving up this important TV platform to expand brand awareness will only give other brands more exposure. The result can be imagined.

Moreover, LVMH also became the first advertising customers of Fashion TV, signing a two-year $6 million advertising contract with Fashion TV at one time.

Taking advantage of the two identities of content provider and advertiser, LVMH group has successfully added terms related to corporate reputation protection in a series of cooperation agreements with Fashion TV, making it clear that fashion TV shall not publish content damaging the reputation of LVMH group's brands.

Simon learned of this, but also have to admire the road to the head of the group of drunk Xuan Bernard Arnold smart and bold.

Fashion TV in North America is expected to have a total advertising revenue of only $40 million in the next two years, while LVMH alone has put in $6 million of advertising. Next, after the launch of Fashion TV in Europe, the two sides will certainly launch similar cooperation.

Most importantly, Bernard Arnault also evaded Denise entertainment in advance through interest binding and contract restrictions, and used Fashion TV platform to discredit and suppress LVMH group.

At the beginning, he did not agree to let fashion TV become a subsidiary of melisandro. Simon's idea was to build a global fashion TV network.

If a media network wants to grow, it is necessary to maintain its neutrality as much as possible. Therefore, Simon never thought of using Fashion TV to discredit and suppress other luxury brands from the beginning, which will only make the TV station self destruct.