The richest man

Chapter 226 Transformation
Currently, Blockbuster is the main competitor of the "Netflix Netflix" video rental company.

In the traditional field, it is really difficult for "Netflix Netflix" to kill Blockbuster.

However, the Matthew effect in the Internet industry will make the strong stronger and the weak weaker. Once "Netflix Netflix" takes the lead and establishes a strong advantage, then Blockbuster is likely to go bankrupt just like its previous life.

"Boss, everyone proposes to hold a celebration banquet in the evening to celebrate the successful launch of the IE browser!" Shangguan Muye walked up to Zhang Jun at this time, raised his glass and lightly touched it, and then said.

"Well, it is necessary, you go and arrange it, so that everyone can have fun!" Zhang Jun nodded with a smile and said.

"Ok!"

……

The next morning, after Zhang Jun came to the company, he told the secretary: "Let all the executives above the manager of "Netflix Netflix" come to the No. 1 conference room for a meeting! "

"Okay, boss!" The secretary responded and left.

Zhang Jun got up at this moment and walked towards the No. 1 conference room first.

More than ten minutes later, the executives of "Netflix Netflix" arrived one after another.

"Boss, is there anything important to announce?" Bai Xinyi, the general manager of "Netflix", asked.

Zhang Jun nodded: "Yes, please sit down first, and after I announce it, let's discuss it together."

"En." Bai Xinyi and the others nodded.

After a while, Zhang Jun organized the language and said: "Now let's discuss, if we put the "Netflix Netflix" business online, let users rent it on the website, send and return it by express delivery.Well, what do you guys think? "

As soon as the voice fell, it immediately aroused everyone's discussion.

"Boss, we "Netflix Netflix" has tens of thousands of stores, if we change to renting videos online, I am afraid that it will affect the income of our offline core business.Moreover, online business may not be easy, and the probability of loss is high.The online business cannot make money, and the offline business is affected.The company may lose money. "Vice President Liu Feipeng frowned.

Zhang Jun wondered: "Why do you say you can't make money from online business?"

Liu Feipeng thought for a while and replied: "Because...offline dvd rental fee is 5 US dollars, if it is moved to online, then the rental fee must be reduced to attract users. But in this way, our profit will decrease, And it will also involve the postage. The postage of sending and returning the dvd is not cheap. Is this cost borne by us or the user? We are relatively large in scale and should have bargaining power with the courier company. But users do not have the right to bargain, and returning the postage of the DVD alone may make the user choose to give up. Therefore, the postage will be borne by our company in the end.”

"In addition, website development, maintenance, publicity, operation, broadband, etc. all require a lot of expenses. Ideally, online business can only achieve profitability when it reaches a certain scale effect. But we already have stores all over the world, and users You can see at least one "Netflix" within a 10-minute drive. Through the "offline rental + liquidated damages" model, our company can make a lot of money.If you venture into online business, your company may be doomed and overtaken by your competitors! "

After speaking, many people nodded in support.

It's hard to say whether the online business will be successful, but it will definitely affect the offline business, and the profit will decrease instead.

Zhang Jun nodded secretly. What the other party said made some sense, because Netflix in his previous life had been doing online business for two years, and ended up losing more than 5000 million U.S. dollars, almost to the point of selling himself. Arrogant, laughed at the other party.However, I never expected that in two or three years, the online business would improve, and Netflix would become a favorite in the eyes of investors, and in the end it would directly kill Blockbuster.

According to the current situation, Netflix can do online business, but the offline business cannot be given up for the time being.Generally speaking, offline business should be gradually transformed into online business, and we should not act too hastily.

The general manager Bai Xinyi asked: "Boss, if you do online business, what model will you use?"

"I think that Netflix should make decisive changes to the current industry practice of not only collecting deposits, but also returning them within the specified time, and paying overdue fees beyond the lease period: the rented discs have no expiration date. , There is no overdue charge, and the renter’s postage is exempted, all of which are borne by Netflix. The "online rental + membership model" is adopted to attract customers. In addition, the rent of discs is greatly reduced, and the rent of each disc is as long as 2 USD!"

When everyone heard the words, they looked at each other in dismay.

If this continues, the company's profits will be greatly reduced.

Zhang Jun was actually very helpless.

He also wants to make money lying down, easily, and earn a lot, but there will always be someone who will stand up and use the Internet to kill your old life.There was a piece of gossip in the previous life, saying that the founder of Netflix, Hastings, one day when he went to return the video tapes, he found that one of the video tapes had expired. The rent was only a few dollars, but the late fee was charged 40 dollars, and he was furious. Next, he went to start Netflix.

Be prepared for danger!

Zhang Jun must plan ahead and plan for Netflix in advance.

At this time, the meeting was noisy and the discussion was endless.

In the end, Zhang Jun summed up everyone's opinions and decided to develop the Netflix online website first to test the waters and accumulate experience.

At the same time, reduce the number of stores, close some stores with relatively low revenue, and then use the online website to serve the original users of these stores.

In fact, because Zhang Jun has already acquired FedEx, logistics costs have been greatly reduced, which is very conducive to Netflix's online business.In addition, Netflix's brand reputation is very large. Once it starts online business, it will definitely have a huge impact. Maybe the online scale will develop soon.

……

……

YouTube company, a group of high-level executives are listening to Zhang Jun's speech.

"Everyone knows that with the development of the Internet and the popularization of computers, more and more people have begun to choose to watch movies or TV shows on computers. The business of video halls has become increasingly difficult. Therefore, from From now on, YouTube is starting to transform.” Zhang Jun said, “Transforming into a video website, allowing users to download, watch and share various short videos, such as short videos of film and television dramas and short videos of users taking selfies.”

"Boss, the current internet speed is so slow, even if we develop a video website, users won't be able to watch it." He Wenshi smiled wryly.

Many places still use telephone line + "cat" to dial, and the network speed is only 56KB. How to watch videos?
Zhang Jun waved his hand and said, "You don't have to worry. First of all, you are developing a short video website. You can watch a few minutes of video and cache it for a while. Secondly, Legend Technology has developed an ADSL modem. ADSL can provide up to 2Mbps Uplink speed and 24Mbps downlink speed! In the next one or two years, Legend Technology will vigorously promote ADSL modems. There is no problem in promotion. First, I have acquired many telecom companies; secondly, the technical advantages of ADSL modems If it is too obvious, major telecommunications companies and consumers will take the initiative to ask for an increase in speed!"

"YouTube has been working hard to develop "streaming media technology" during this period, and within two or three years, it has improved the "streaming media" technology to a very high level, crushing competitors with technology! "

In the previous life, the Internet speed had a great breakthrough after 2000, but in this life, Zhang Jun asked Legendary Technology to develop faster network equipment long ago.

Not surprisingly, in a few years, the speed of the Internet will be comparable to that of the previous life around 2004.

(End of this chapter)