Chapter 304: Want to cooperate

When he came to Burbank, Reed Hastings went straight to Embassy Pictures. Because of the good relationship he had contacted before, he easily met Garcia Rodriguez, the CEO of Embassy Pictures.
This can be regarded as peer-to-peer reception.
"Welcome to Embassy Pictures." Garcia Rodriguez said politely.
Reed Hastings responded with a smile. After shook hands with Garcia, he quickly looked at the reception room and was instantly attracted by the framed posters hanging on the wall.
"Blair the Witch", "Human Removal Project", "Reaper is Coming", "Crouching Tiger, Hidden Dragon", "Fatal Turn", "The Bourne"...
These are some of the most famous movies in North America.
It seems that Netflix does not have the Internet rental and sales copyright of these movie DVDs.
Reed Hastings sighed in his heart. There is no copyright for new popular movies and relying on old movies and niche movies. It is too difficult to attract users on a large scale.
The biggest audience group on the Internet is relatively younger youth groups. These people keep up with the trend and put them on movie entertainment. Most people are most interested in new popular movies.
No one likes old movies, but the audience is much smaller.
Netflix has reached a critical stage. If the current situation cannot be changed, only someone can sell it.
"The Bourne" is currently the hottest movie on the rental market, and he does not hesitate to do it himself.
Netflix also contacted Embassy Pictures before and wanted the online copyrights of some films released by Embassy Pictures, but I didn't know why, they were all rejected.
Many thoughts flashed through Reed Hastings's head, his expression unchanged, and he smiled and said, "Mr. Rodriguez, have you heard of Netflix?"
Of course, Garcia had heard of Netflix. At the Relativity Entertainment Conference these days, he read a lot of information about Netflix and said: "Actually, I rented discs on the Netflix website, a few old movies."
"Internet leasing is Netflix's main business." Reed Hastings said directly: "I am here this time to discuss with your company the network licensing of "The Bourne".
He looked around the reception room: "Of course, if possible, the authorization of these films can also be added to it."
Garcia nodded: "Internet DVD rental seems to be a new peripheral channel."
Reed Hastings took the opportunity to say: "In this regard, Netflix is ​​the number one company in the United States. If you cooperate with Netflix, you can open up a brand new peripheral sales channel."
The number one company in America? Garcia knew very well that it was because there were no competitors for the time being.
The asymmetry of information has caused the difference between the two parties' perception of each other.
Reed Hastings asked at this time: "Netflix does not need exclusive rights, only your authorization."
Garcia did not answer, as if thinking.
Reed Hastings frowned: "Could it be that the Internet copyrights of "The Bourne" and other films are no longer in your hands?"
"No." Garcia smiled: "The distribution rights for these films are still there."
Reed Hastings breathed a sigh of relief: "The specific authorized price..."
From the time he planned to go to the Embassy Pictures in person, he was ready to pay a high licensing fee.
Only by attracting more registered users can it be recognized by investment institutions. Even if there is no investment by investment institutions, the increase in the number of users can make Netflix sell at a better price.
As a businessman, Reed Hastings considered the pros and cons before coming over.
Garcia said: "Authorization is not a problem."
This is the first time that Reed Hastings has seen such a happy film company. The companies I have talked about before not only have serious doubts about their model, but also offer unbearable prices, like Leasing a CD can be paid for half of the rental fee. Does it still make Netflix profitable?
But before he could ask, Garcia next to him said: "Mr. Hastings, I think our two companies can have more in-depth cooperation."
More in-depth cooperation? This surprised Reed Hastings. In the past year or so, he has suffered various blows. Whether it is a copyright company or an investment company, the attitude towards Netflix is ​​extremely poor, as if Netflix has gone bankrupt.
If it weren't for him to have some access and some resources in his hands, Netflix would have long been unable to sustain it.
Now there is even a Hollywood company actively cooperating with Netflix? Reed Hastings has a sense of unreality.
However, Reed Hastings is more aware that every opportunity is very rare for Netflix.
"Cooperation?" Reed Hastings's expression remained unchanged, and asked calmly, "Do you want to cooperate with Netflix?"
Garcia seemed very sincere: "My personal opinion."
Reed Hastings deliberately put on a surprised look: "Why? It seems that this is the first time I have dealt with your company?"
Garcia said, "I am no stranger to Netflix." He simply explained: "Actually, I became a Netflix user a few months ago. This kind of choice can be made without leaving home. Movie discs can be delivered overnight. It is really convenient. I don’t need to go to Blockbuster or Hollywood Video chain stores and wait in line for the long and cumbersome rental procedures."
Hearing the other party's praise of Netflix's mode so much, Reed Hastings's expression remained unmoved, but he felt a little joy after being recognized.
Considering the coldness suffered at Blockbuster, this Garcia Rodriguez is obviously more foresighted.
Reed Hastings said lightly: "But most people don't see this as the future."
Garcia smiled: "Accurate eyesight always belongs to a few people."
For example, the man named Ronan Anderson.
At the meeting of the past few days, Garcia did not disagree with the acquisition of a website with serious losses and an unverified business model like Netflix, but Mary, George Clint and Robert Lee who participated in the meeting all agreed. , As if Ronan’s decision would definitely succeed.
Think about it carefully. From "Blair the Witch", to the overseas channels that won Polygram Films, to the recent online and offline sales of "The Bourne", Ronan really made every decision. success.
Perhaps Ronan really saw something he couldn't see on this company or website.
Garcia is very relaxed, he has good abilities in management, but he has a general eye on decision-making in general.
Reed Hastings asked: "How do you want to cooperate?"
Garcia put aside this thought and said: "Netflix's model may be the future of the film rental industry, or it may be one of the future sales channels of the film industry. I personally think that it has great investment value."
Reed Hastings looked unmoved and asked, "Venture investment?"
Garcia did not answer directly. Instead, he said: "If you are interested in cooperation, we can find a special time to talk in detail." He smiled and said: "I am just a preliminary idea, and Embassy Pictures and I need time to go. Know your company."
Regarding Garcia's caution, Reed Hastings is not surprised, after all, this is not something that can be decided casually.
Garcia further said: "I just said that this is my personal thoughts and what I thought of after seeing Mr. Hastings. It will take a while to become a company's decision."
Reed Hastings did not speak, considering the feasibility of this matter.
Garcia continued: "If Mr. Hastings is interested in cooperating, I will push the company to conduct a preliminary inspection of Netflix."
Reed Hastings kept quiet: "I need to think about it, and I need to learn more about your company."
Garcia said: "Yes, no problem." He appeared to be generous: "If there is a need for my cooperation, please contact me."
Reed Hastings asked the key question again: "How do you want to work with Netflix?"
Garcia said lightly: "The method of cooperation can only be decided after the Embassy Pictures understands your company, so that it can be responsible for both of us."
This sudden unexpected situation also changed the purpose of Reed Hastings' trip. The negotiation on the licensing of film rights had to be interrupted. Garcia was obviously only interested in so-called cooperation.
Reed Hastings did not respond and did not veto it. For him and Netflix, how could this be an opportunity.
Anyway, I had prepared for the worst before and sold Netflix if it didn't work.
As long as the price is right, selling to Blockbuster is no different from selling to Embassy Pictures.
The only difference is probably that Blockbuster is not interested in Netflix at all.
On the day Reed Hastings left Embassy Pictures, he launched a network of contacts to inquire about all kinds of information and materials about Embassy Pictures. He was surprised by what he learned. The company had annual revenue of several hundred two years ago. A small publishing company worth 10,000 US dollars, but after being acquired by Relativity Entertainment Group, it achieved amazing results in just two years.
It is said that the revenue from the release of just one movie "Crouching Tiger, Hidden Dragon" exceeded US$100 million.
Later, films such as "House of Death", "Shrek", "The Bourne Shadow" and "Fatal Turn" were released~EbookFREE.me~The lowest "House of Death" had revenue of tens of millions. Dollar.
There is no doubt that this issuing company has strong cash flow and is fully capable of investing in Netflix.
Moreover, Embassy Pictures may indeed cooperate with Netflix. For a film distribution company, having an independent Internet distribution channel is necessary in the future.
Reed Hastings also noticed the Relativity Entertainment Group behind Embassy Pictures, a company that has only been established for two years and its main business is the production and distribution of films.
The owner of the company is Ronan Anderson, a name that sounds familiar.
But Reed Hastings couldn't remember where he heard it.
A week later, Reed Hastings received a call from Garcia, and the boss of the Relativity Entertainment Group wanted to talk to him.
./book_
.. m.