Top of the big era

The scale of HBO's personnel changes this time is not small. Although there is no clear explanation to the outside world, Zhou Buqi can basically analyze it through some internal understanding and changes in personnel in relevant positions.

This major personnel adjustment can even be seen as a sign of HBO's decline from its unique glory.

It's not because HBO is dead, but because HBO is a subsidiary of Time Warner and is subject to Time Warner's management. And Time Warner is having a tough time.

As the global economy recovers and the stock market rises collectively, Time Warner's stock price has been in a very sluggish state. In the past two years, even Disney's stock price has risen by more than 30%, and Ziweixing Global's market value now exceeds US$170 billion!

In terms of performance, Time Warner is no worse than MSI Global, but its market value is less than half of MSI Global.

The main reason is that in the eyes of the capital market, Time Warner has lost its "imagination" and has become a mediocre company.

what to do?

The solution provided by Time Warner is really not very good.

So traditional!

It can be seen that Time Warner's board of directors is controlled by a group of traditional old men. They believe that the way to increase Time Warner's stock price is to create more profits.

And the focus fell on HBO.

HBO is rich.

The annual net profit is more than one billion US dollars.

Therefore, if HBO lets go, they are fully capable of producing more and more exciting high-quality content. This is the most powerful content company in the TV drama industry.

But Richard Plepler, a co-president responsible for project financing and market operations, replaced the previous content creation CEO Chris Albrecht and became the new CEO. This purpose is too obvious.

Time Warner is blocking HBO’s neck!

It wants HBO to save costs and hand over part of the money saved to the parent company to help Time Warner increase its stock price; the other part is invested in the development of online products, including online TV and streaming media products.

How to save money?

HBO needs to spend less money to produce content. If it is short of money, it will find more partners from the market and use financing to obtain funds for content production.

The cooperation with Zhou Buqi is a successful case that can be widely publicized!

That's funny.

Obviously, HBO suffered a serious loss from the cooperation between HBO and Boss Zhou, and there was a lot of internal controversy. But in the end, this became one of HBO's most relied-upon cooperation cases, and Richard Plepler was successfully promoted due to this credit.

This made Richard immediately start looking for opportunities after becoming CEO, contacting Boss Zhou, hoping to continue and expand the financing model similar to the previous cooperation between the two parties in TV series.

Xu Baihui felt energetic now.

No longer dozed off, no longer jet-lagged.

I found a very formal dress, dressed up as Zhou Buqi's secretary, and went out with Ning Lu to meet the new CEO of HBO.

I feel like the opportunity has come!

The Hollywood platter investment business has become a bit unsustainable. Currently, there are only less than 20 movies left in the inventory of cooperation, and there are no new cooperation contracts.

Once this business ends, it will be a major blow to Jieyu Media's overseas business, causing a major revenue deficit and causing the stock price to plummet.

Now the opportunity has come, and I hope to supplement it through the financing of TV series.

The domestic streaming media industry is developing vigorously.

Competition is fierce, far exceeding that in the United States.

And they also attach great importance to content.

If Jieyu Media can participate in the financing of a large number of American dramas and obtain priority rights for the domestic distribution of these American dramas... it will be equivalent to controlling the content lifeblood of these streaming media platforms.

This is also a reflection of the industry competitiveness that Boss Zhou has designed for Jieyu Media a long time ago.

Going to have dinner next.

Xu Baihui was a little excited, "HBO's content is so good, but they don't seem to understand business operations or the communication value of their products. Even top American dramas like "Roma" have been axed."

Zhou Buqi nodded, "Well, HBO's operations in this area are indeed a bit traditional, and they don't pay enough attention to brand building. American dramas like "Roma" cannot simply be measured by commercial income."

Xu Baihui agreed, "That's right! This is simply HBO's signature American drama. It was the iconic masterpiece that made HBO a world-class television station. However, it only lasted two seasons before it was canceled."

Zhou Buqi is relatively aware of this. He had some knowledge of this during his previous cooperation on "Game of Thrones". "The main reason why "Roma" was canceled was due to financing errors."

"Yeah?"

"Well, the first season of "Roma" was solely funded by HBO. It was filmed, but it was not well received and the ratings were not high. For the second season, HBO found a partner to invest in the project. After it was produced, The ratings are still not high. No investors are willing to follow up and make a third film."

"Ah?" Xu Baihui found it difficult to understand, "Ratings? Isn't HBO a membership-based, subscription-based pay TV station? It doesn't make money from advertising, so what's the point of ratings?"

Zhou Buqi smiled and said: "The ratings are their reaction to judging whether a TV series is good or bad in the market."

"Is this a single evaluation criterion?" Xu Baihui shook her head, "This is too simple. It feels like there is a bit of survivorship bias."

Zhou Buqi said: "There is nothing we can do about this. How can investors benefit? It is impossible to earn a fixed share from membership fees, right? It must still be linked to the broadcast rate and viewership. The ratings If the rate is low and the audience sees it less, it can be judged that the market value of this work is low, and the subsequent revenue cost to investors will also be reduced.”

This is basically the general model for this kind of paid membership platform.

For example, Steam, the game platform owned by Ziweixing International, is going to launch a membership model. There are many games in the membership package. How to share the future revenue of these games?

It must be related to the online time of the game.

This is a "limited time" mode.

When the player's time is fixed, whichever game has a longer online time will be more attractive, make a greater contribution to Steam's membership system, and receive more future dividends.

However, there is an essential difference here.

Steam is a platform and a channel.

HBO is both a channel provider and a content provider. "Roma" is an American drama produced and controlled by HBO.

Even if a game in the Steam membership package has a good reputation and has great market influence, it has nothing to do with Steam. It will only build fame and reputation for the producer behind the game.

Therefore, Steam can be a little colder and only speak with data. There is no need to promote a well-received but not well-received game as a wedding dress for others.

HBO is different.

Data can measure intuitive business value.

But how to calculate the brand?

Overseas audiences' understanding and shocking understanding of HBO basically started with "Roma". This is a super phenomenal American drama from HBO with a strong brand premium.

However, HBO is not an independent company.

Take orders from Time Warner.

The most important thing is the stock price. What is linked to the stock price is Time Warner’s brand and profits. The requirement for HBO is for HBO to create profits, not for HBO to create brand intangible assets for itself.

Zhou Buqi smiled and said: "It can be considered a good thing. Being trapped by Time Warner, it will be difficult for HBO to develop even if it wants to transform its strategy. Now Time Warner's board of directors has made a series of decisions, which are basically wrong. Maybe it's wrong. It was acquired next year.”

"Ah?" Xu Baihui was a little surprised, "Who can acquire Time Warner?"

"That's not necessarily the case."

Zhou Buqi is really not an alarmist.

In 2014, 20th Century Fox made an offer to acquire Time Warner, but they rejected it. The board felt Time Warner could still struggle a little longer.

But it didn't work out successfully, and not long after it was used, it was sold to another operator to further integrate content and channels.

Changing in the direction of becoming more and more traditional will only make things worse and worse.

Xu Baihui said softly: "If nothing else, in the financing cooperation agreement, we must avoid a recurrence of tragedies like "Roma". A project of this level like "Roma" should be launched even if the ratings are very low. It cannot be done. The value of this American drama can only be measured by HBO's ratings. HBO's ratings only reflect the likes and dislikes of HBO's paying members. How big a group is this? There should be terms and conditions. If HBO doesn't invest, follow up. Fang can take control and do it himself!”

"It should be," Zhou Buqi had thought of it a long time ago, "there is this in the cooperation terms of "Game of Thrones", and they can accept it relatively easily."