Chapter 70 The Way to Break the Monopoly of Cinema
After listening to what Lu Chen said, the entire conference room fell into death silence again.
What Lu Chen said is not unreasonable, but it is a debt of 3 billion yuan after all. Except for those big companies, who is willing to take the initiative to add a lot of debt to himself?
Once they bought the movie video, the leisurely life of the entire Chenyin Company was over. They had to find ways to make money to fill the 3 billion pit.
Seeing that people didn't say anything, Lu Chen said again: "Actually, you don't have to worry that we can't pay back the 3 billion. Now Shiyin can earn tens of millions of dollars in a single song. Even if it's a song, we can pay it back in a few years."
Cheng Ming said at this time: "It can't be calculated like this. After all, Movie Video has always existed there. We bought it and there are operating costs. There are so many people in the company who have to pay wages. The biggest difficulty is debt interest."
Cheng Ming expressed his concerns. What he was worried about was not the three billion debt, what he was worried about was the interest of the three billion debt and the company's operating costs.
The operating cost is a small matter, but the debt interest is a large amount of money. The former chairman of Movie has declared bankruptcy and no longer has to pay back the money of the leeks, but the country has to pay back the money. The country does not allow Movie to conduct bankruptcy liquidation, just to recover the three billion and high interest.
Hearing Cheng Ming say the interest, Lu Chen asked, "Don't you know?"
Cheng Ming asked with confusion: "What do you know?"
"The bank has already said that if Movie alone can pay off the loan within six years, there will be no interest. In other words, the 3 billion will always be 3 billion in six years, and there will be no interest."
The country also knows that the half-dead movie looks like, and there is no hope for the 3 billion interest rate. It is already very good to be able to get the loan back.
Cheng Ming continued: "That's right, but it's probably a bit difficult to pay off 3 billion in six years..."
Originally, operating costs were nothing in the face of debt interest, but now without debt interest, the company's operating costs have to be considered. Six years are too short, and the company still needs to spend money to operate within these six years. It is hard to say whether the money earned is unnecessary.
This is a dangerous move. If this move is wrong, it may drag down Chenyin, the new company.
Lu Chen continued: "I have considered all these things. In fact, the acquisition of Light Movie is just the first step of my plan, and the second step is the key step."
"If the second step is successful, we can not only break through the blockade of Shimi and Lu Ying, but also possibly on par with them."
Hearing Lu Chen's words, the people in the conference room were stunned again. What was the second plan that Lu Chen said? If he succeeded, he could be on par with the two major groups of Shimei Lu Film?
Shi Yin asked curiously: "Lu Chen, what is your second plan?"
Lu Chen replied: "I will tell you this after I buy it."
Hearing this, Shi Yin said impatiently: "If you like to say something, you will not say something, you will not say something."
"I'm afraid that my plan will be leaked in advance," Lu Chen said.
"Okay, that's all I have. Shi Yin, as the second shareholder of the company, do you have any opinions?"
After all, Chenyin Company was founded by him and Shi Yin. If Chenyin wants to take over the film, he must seek Shi Yin's consent.
Moreover, Shi Yin needs to pay back the money in a short period of time, and Shi Yin needs to work hard. This matter is directly related to Shi Yin. In any case, Shi Yin's consent must be obtained.
After hearing Lu Chen's words, Shi Yin pondered for a while, then said, "Unless you tell me your second step plan, I will not agree to the acquisition of Guangxi."
"Although she doesn't understand business operations, she is still a shareholder of the company. Lu Chen didn't tell her anything, just wanted the company to take on debts and then drag her to pay off the debts together. She was not so stupid."
Lu Chen glanced at the people in the conference room and said, "Cheng Ming, you guys go out first, I'll talk to Shi Yin alone."
After hearing Lu Chen's words, Cheng Ming and other managers all left the conference room, leaving only Lu Chen and Shi Yin in the conference room.
After seeing them leave, Shi Yin asked, "Tell me, what is your second plan? Don't fool me. Although I don't understand business operations, I'm not so easy to fool!"
Lu Chen smiled and replied, "My second plan is to create big online movies and break the monopoly position of theaters."
Lu Chen has always considered the feasibility of this plan when he came to Huacheng. Now theaters have monopolized the premiere of movies. When the box office is divided, theaters have to divide at least 40% of the box office, and some even reach 50%, which is nearly half of the profit.
Lu Chen was disliked from the heart of institutions like theaters that were lying to pay, especially some theaters that even made false accounts when promoting and distributing, and they said that the cost of promotion is as much as possible.
Of course, Lu Chen carefully analyzed the feasibility of online movies and compared the world's entertainment industry with the earth.
On the earth, there are too many pirated versions, and it is easy to lose money when building big online movies. In this world, paid content is done well and has a strong awareness of copyright protection. The key is that the audience has a strong awareness of paying. People know that they have to pay money to read novels, listen to music, and also pay to watch movies and TV series. People know how capital flows, and know that only by recharging money can there be better content.
It is unimaginable on the earth that a song can earn tens of millions in this world, of course, the premise is high-quality content.
Originally, Lu Chen planned to slowly implement his plan, and he would only start an online movie after the time was ripe, but Lu Chen's blockade directly forced them into a desperate situation.
In other words, for Chenyin, now is the best time to have a big online movie.
Because Lu Ying and Shi Mei are immersed in their monopoly position, they have never played online movies. In addition, they can make money while lying down, so there is no need to play online movies at all.
Taking the initiative while the competitor is numb is the right way to take the initiative.
When Shi Yin's brain was stunned when she heard Lu Chen's answer, her two eyes stared at Lu Chen, with questions on her face.
"What is an online movie?" Shi Yin asked.
Shi Yin has never heard of the word online movies in the past, so I don’t know what Lu Chen means.
"Uh... Simply put, it is to move the theaters online." Lu Chen replied.
Shi Yin said blankly: "I don't understand."
Chapter completed!