Chapter 472: Entering the Game Early

Chapter 472: Chapter 472: Entering the Game Early

Hearing this name, Chen Shiyu pondered slightly and instantly made the connection, his tone carrying a bit of incomprehension and doubt:

"Netflix? I have an impression. It is a local American company doing DVD mail rental business, featuring an online rental and offline mailing model. Relying on convenient services, it has accumulated quite a few users, and the current number of members is close to one million."

"But I have read their industry analysis report. The limitations of this physical disc mailing model are too strong, and the ceiling is extremely low.

Even if it reaches the industry limit, the upper limit of its volume will at most be at the level of Blockbuster, and it will be difficult to break through the shackles of the traditional audiovisual rental industry. What is worth our key layout?"

From the perspective of the current industry, Netflix is indeed not a high-quality target in a potential track.

The traditional DVD rental model is outdated, cumbersome, and relies on physical materials.

Compared with the rapidly developing internet industry, its growth rate is slow, and the room for transformation seems extremely small.

It is hard to enter the vision of top internet enterprises like Facebook, and no wonder Chen Shiyu felt doubtful.

However, Irene knew very well that the niche rental company with seemingly limited prospects in front of her would grow into a streaming media giant that would shake the global film and television landscape in the future, and it was a top-tier piece of fat that must absolutely not be missed.

"What you see is its current DVD rental business, but the internal news I got is that Netflix has long secretly planned a strategic transformation, and its next core direction is to fully enter the streaming media track and complete the upgrading of its business."

"This is also the fundamental reason why I specifically asked you to focus on it and deploy in advance." Irene leaned forward slightly,

"Future internet entertainment will definitely be the world of instant streaming playback, and physical disc rentals will inevitably be completely eliminated by the times."

"We at Facebook have deeply cultivated the social traffic track, mastering the largest user traffic and public opinion entrance across the entire network, yet we lack high-quality film and television content carriers; while Netflix’s future streaming media business can just make up for the content shortcomings.

Both of us can completely empower each other and achieve each other, forming a perfect closed loop of traffic plus content."

She clearly issued the strategic layout instruction:

"My idea is very simple. The moment Netflix officially launches its expansion strategy and implements its streaming media transformation plan, we will immediately enter the market to invest, purchase their high-quality equity, become core shareholders with real power, and lock in the right to speak and future dividends in advance."

As early as 2000, Netflix had deep operational crises, its capital chain was on the verge of breaking, its business had stagnated, and it once walked to the edge of bankruptcy.

With nowhere to go, Netflix’s management once actively sought an acquisition, offering a price of 50 million US dollars, hoping to sell the company as a whole to industry giant Blockbuster.

At that time, Irene was wholeheartedly devoted to the shooting work of The Italian Job.

By the time she subsequently got the news, the window period had long since completely closed.

What is more, at that time, she had just started cultivating the film and television industry deeply, with limited capital reserves.

She simply did not have enough strength to swallow Netflix’s unlimited potential cake, and could only watch the excellent investment opportunity slip by, becoming a small business regret deep in her heart.

But times are different now, and today’s timing for layout is not too late.

Irene clearly remembers the timeline of industry development.

At the present stage, Netflix is only barely maintaining revenue balance, struggling to survive in the traditional rental track, and has not yet started leap-forward development.

The core business that truly made it soar and reach the summit of global streaming media—the online instant on-demand streaming media service—would not officially launch and land until 2007.

From now until 2007, there is still an ample window period for layout, which is enough for Facebook to complete the full set of processes of research, negotiation, and equity acquisition.

"Netflix right now has a small volume, low valuation, and is in urgent need of capital to assist its transformation. With Facebook’s industry status and capital strength to enter the market, purely investing in shares and assisting its development, the other party will definitely not refuse, and might even welcome it with open hands."

Irene’s eyes were clear and bright, "When Netflix’s streaming media business officially goes live at that time and opens the path to heaven, our low-cost layout today will harvest immeasurable excess returns."

"At the same time, Facebook’s massive social traffic can also continuously empower Netflix’s streaming media business. Both parties running towards each other, mutually beneficial and win-win, is an absolutely guaranteed profit-making business."

Chen Shiyu has always unconditionally trusted Irene’s business vision and forward-looking judgment.

Countless past layouts have confirmed that Irene can always capture industry trends one step ahead and accurately step on the dividends of the times.

This time, he still had no hesitation or doubt, immediately nodded in agreement, and decisively finalized the implementation plan.

"I understand." Chen Shiyu’s expression was solemn, and he immediately entered a working state,

"I will immediately take the lead in forming a special research team to deeply investigate Netflix’s current operating status, financial data, team structure, transformation planning, and future strategy in an all-round way, and follow up on the other party’s dynamics in real time."

"Once the other party launches the expansion and streaming media transformation plan, we will immediately initiate negotiations, promote the matter of equity participation, strive to become a core shareholder with real power in Netflix within this year, and firmly lock in this wave of future dividends."

Having received this reliable reply, Irene nodded in satisfaction.

Early the next morning, the clouds over New York spread out thinly, fading away the glare of the scorching sun from the previous few days.

A breeze carrying the cool breath between the city’s buildings blew against the car window, feeling exceptionally soothing.

Irene did not arrive early at the exclusive studio for The Voice renovated by Disney as she did before.

Instead, she deliberately slowed down her schedule, and by the time she arrived, the show had already been officially recording for one hour.

Keeping her own little calculations in mind, she did not notify anyone in advance of her arrival, only letting Vera park the vehicle in a secluded passage at the side door of the studio, and walked slowly into the backstage alone along the staff-only corridor.

She wanted to use a bystander’s perspective to quietly test Violet’s true ability to independently coordinate the entire recording, and see whether the entire huge program team could operate in an orderly manner when she was not on-site to control the overall situation.

Pushing open the observation glass door at the back of the control room, the complete panoramic view of the studio hall instantly came into view.

The large recording venue was clearly divided.

The stage lighting group, audio recording team, camera positions, floor managers, logistical support, and makeup styling sectors were distinct from one another.

Over a hundred staff members performed their respective duties, and no one panicked or made mistakes.

Violet was dressed in a capable black work suit, with a headset tucked behind her temple.

She held a thick stack of cue cards in one hand and issued instructions methodically into the walkie-talkie with the other.

Facing occasional minor equipment failures or unexpected situations where contestants were nervous, she could calmly and quickly coordinate and resolve them.

From the order maintenance in the backstage contestant waiting area to the singing process after the contestants went on stage, and then to the schedule coordination during the rest time of the four mentors, every link was seamlessly connected, completely without requiring outsiders to check for omissions and fill in gaps.

Irene leaned against the pillar in the back and watched quietly for about twenty minutes, a satisfied smile quietly rising in the depths of her eyes.

The days of letting go and training had not been in vain.

Violet was now able to completely shoulder the heavy burden of the overall on-site execution.

Even if she was not stationed in the studio for a long time, the recording of the remaining rounds of auditions would not experience any omissions.

After quietly breathing a sigh of relief, Irene did not step forward to disturb the other person’s busyness, gently turned around and left.