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Chapter 434 The irreversible trend

Even when he returned to Los Angeles, Ronan has been maintaining sufficient communication with Netflix, and even let the Shahai Entertainment Production Department join the ranks of frequent exchanges with Netflix.

In the future, Netflix's streaming mode will also have a huge impact on the production of Shahai Entertainment.

If everything goes well, when Netflix squeezes out the audio and video stores and overwhelms the TV station, it will naturally enter the film production industry and cooperate more closely with Shahai Entertainment.

Netflix member users always want to see more TV series, movies, variety shows, etc. The more you choose, the better. After Netflix has established its position in the industry, it will become easier to attract good creators.

Even like before, great directors and popular stars are no longer regarded as inconsistent in shooting online dramas.

Ronan summarized some of Netflix's models based on memory. In fact, Netflix will not be rejected by Hollywood practitioners because this is equivalent to increasing job opportunities for them.

As we all know, the treatment and union opportunities between Hollywood's popular stars or directors are very different from those of the second-tier cities. The former is often paid millions or even tens of millions of dollars, and sometimes there are too many projects to count.

The latter seems to be only one level away, but the pay is often only more than 100,000 or 200,000 US dollars.

Even such job opportunities are not many.

Moreover, under the existing Hollywood production system, movies that have certain author attributes and certain commercial nature are abandoned to a certain extent.

Nowadays, independent labels are declining. For industry practitioners, they either make big-made movies from large studios or make small-cost independent movies. The former is rich, the latter is free, and each has its own survival system.

The intermediate cost movies are more difficult to deal with, and are limited in all aspects. The key is that they may not be able to recover the cost.

The emergence of Netflix created opportunities.

In fact, Netflix's convenience for film production and distribution is not only this, for example, it can easily connect domestic and foreign production and distribution resources to extend the life cycle of a movie; in the past, it had to copy a movie, and the copy had to be hired to send it to local theaters, and the theater had to spend money to maintain operations. A series of costs were very high, and digitalization only reduced the cost of part of the link.

If a movie is released through an online platform, there is no need to copy it, no need to spend too much hard-selling, no need for intermediaries, and even saves on cinemas.

So are some cinemas going to go bankrupt? It is obvious.

Therefore, Netflix once participated in the Cannes Film Festival, which made the French panic as if they had seen the German invasion.

Because Netflix's biggest impact is the art theater that prefers to maintain the so-called tradition without paying attention to keeping pace with the times.

Art videos don’t require much good projection equipment, and even the big screen and widescreen display playback are not very different.

On the contrary, commercial theaters will suffer a smaller impact. The difference between watching special effects commercial films of medium-sized scale and on small screens is too big.

As a result, Hollywood and Netflix have an ambiguous attitude and even have close cooperation. In contrast, the European art and film circles simply regard Netflix as a tiger or wolf.

If you have to list the advantages of art film theater screening, you may only have the "sense of ritual".

Under the coordination of Ronan, Netflix's exchanges with Shahai Entertainment and Embassy Films have been very smooth, and the former can provide a series of market data for the latter.

As of the end of last year, Netflix users generated more than 20 million behaviors every day, including clicks, registration, film selection, rental, etc., as well as more than 3 million search requests. The database can use this data to accurately analyze what topics users are most concerned about, which actor they like most, and which lens they never forget, etc., which can be said to be very familiar with the tastes of each user.

These data are transferred to Relativity Entertainment, and this is likely to happen. For example, if a popular IP is to be made into a movie, most fans hope that a pair of male and female celebrity partners may come true.

In fact, in Ronan's view, for a long time in the future, the Internet video business of Relativity Entertainment and the physical theater screening business will exist together, which can allow different types of movies to find their most suitable platforms, and also put forward higher requirements on the audio-visual quality of theater movies.

For the audience, the whole family went to the cinema to watch popcorn movies together on weekends, and watched streaming videos alone on the tablet while the night was quiet, and the two did not conflict.

Moreover, as the classification of movies produced by online video platforms becomes clearer, North America will also have new industry laws and relevant management regulations. For example, video websites can circle out some big directors and big-produced movies to achieve the level of 4k cinema screenings, and form a relatively balanced relationship with physical theaters in the process of gradual running-in.

In this era, all walks of life are being Internet-oriented, which is an irreversible trend. As a traditional industry, we can only learn to actively adapt and find the next trend in integration.

With the current development situation, it won’t take long to see the “old guys” in Hollywood will also smell the crisis, feel the opportunity, and realize that streaming media will unstoppably become the future of entertainment in the Internet era.

In the last few years of Ronan, major traditional film companies represented by Disney, Warner, and Universal competed to release plans to build their own streaming media platforms. Even technology companies such as Amazon and Apple hope to use their resource advantages to explore the streaming media market and share the dividends of film and television content in the new era.

Now that Relativity Entertainment and Netflix can be faster, they may have a greater advantage in the industry in the future.

Ronan once carefully analyzed that at that time, Walt Disney was undoubtedly the one who could really compete with Netflix on streaming media.

The reason is no different. In addition to Disney's own advantages, Disney once again held Pixar, acquired Marvel Comics, and occupied Lucasfilm, and owned the most popular and high-quality content in Hollywood.

Content is the basis for streaming media to launch business.

But now, besides Pixar Studios, other companies and content are still very far away from Disney.

Ronan has also been making plans to completely isolate these important content manufacturers from Disney.

Since he had dug Walt Disney once, he invited Robert Iger, the smiling Mickey Mouse, and Ronan didn't mind digging a few more times.

At the same time, Ronan also asked Shahai Entertainment to introduce two programs tailored to Netflix for Netflix's online video business.

According to the plan, these two programs can be launched at the same time as Netflix's online video business.

The crew of "Survival in the Wild" has been formed and recruited many professionals, looking for suitable locations and design scripts all over the world.

However, the key figure Bell Grylls is still floating in the Atlantic Ocean and it will take some time to reach North America.

Another TV series project was officially called "Prison Break". The script was just finalized before the year, and Shahai Entertainment has started recruiting actors and directors.

It is expected that the shooting stage will take as early as three months.

Luo Nan doesn't remember the name of the male protagonist in this drama at all. After all, the one who was popular in his previous life was a little popular because of "Prison Break", and then became a popular person.

He simply asked Shahai Entertainment to determine the candidates for actors through a large-scale audition.

Since 2002 has passed, a large number of statistics have been sent to Ronan during this period, especially those related to movies.

Last year, the North American DVD sales of eight movies exceeded $100 million, ranking among the top three were 12.2 million and 215.3 million in Spider-Man, 12 million and 25.73 million in Lord of the Rings: The Rings Team, 12 million and 25.73 million in Monster Electric, 11.8 million and 22.51 million in Monster Electric.

"Spy Shadows" was first released at the end of 2001. Although it did not make it among the top ones, it still sold 6.5 million copies and 120.54 million US dollars in 2002, ranking eighth on the North American DVD sales list last year.

But in the rental market, "Spy Shadow" overwhelms all competitors, ranking first in the North American rental list with more than 20 million leases and up to 88.98 million rental income!

This is also the best rental result for Hollywood films in a single year after the $98.6 million rental income of "The Sixth Sense of Supernatural" was released.

Including 2001, "Spy Shadows" achieved revenue of nearly $240 million in North America on DVD alone.

For many movies, it is no longer a strange thing for DVDs to earn more than the box office.

Of course, just like the North American box office has to be divided into layers, DVD revenue also has various costs.

The box office is divided by the theater company, and the channel fees are indispensable for DVDs.

But DVD costs much lower.

Excluding costs, publicity and distribution, and various sharing in channels, "Spy Shadows"'s DVD profit was US$112.1 million.

As of the end of 2002, including the profits of various channels and surrounding areas in North America and overseas, Relativity Entertainment's profit on the single project of "Spy Shadows" was as high as US$235.67 million.

DVD has accounted for more than 40%.

In 2002, Relativity Entertainment produced not many movies, but its performance was still outstanding. Even though it will invest $60 million in Netflix's capital increase and share expansion, tens of millions of dollars and various expenses to establish an animation studio, it still achieved a net profit of $386.8 million.

Old movies are still relying on offline markets outside the theater to create profits. New films such as "Resident Evil", "Legend of the Night", "Death Comes 2" and "Hurricane Rescue" have performed well.

Especially the latter two, "The God of Death 2" has been lowered in North America, with a box office of up to $131.02 million in North America and a cumulative global box office of $312.01 million.

"Hurricane Rescue" has a higher box office in North America, with nearly $175 million, with a high hopes of more than $180 million in the end, and its overseas revenue is also close to $150 million.

Relatively speaking, 2002 is just a movie New Year for Relativity Entertainment, and 2003 is the real movie New Year.
Chapter completed!
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