This article comes from WeChat public account: Yuanchuan Institute (ID: caijingyanjiu) , author: Lu Shu days (media group chief analyst)

On February 10, 2020, the 92nd Academy Awards came to an end in Los Angeles. The hottest topic of the day, except for Parasite, was Netflix (Netflix) The seed Irishman was tragically nominated and won 0 prizes.

Directed by big director Martin Scorsese and starring Robert De Niro, Al Pasino and others, “Irish” is a traditional Hollywood gangster film, the youngest in the main creation. At 76, similar themes have almost disappeared in recent years in Hollywood. This rare classic, which was the key to Netflix’s main retro and love cards, was eventually lost and it was sighing.

Martin Scorsese’s masterpieces “Gambling City”, “Flyer”, “New York Gangster”

However, when we extend the timeline a little, it is not difficult to find that from the point where streaming media and Hollywood formed a beam, Netflix’s pitted script may have been written.

Pushing forward for 1 month, the Golden Globe Awards Ceremony on January 6, streaming media encounteredThe fate of coming back: Netflix nominated for 17 movies won only one best supporting actress award, while the upstart Amazon and Apple not only returned empty-handed, but also ridiculed by poison tongue host Ricky Gervais: “If ISIS access Streaming media, I am afraid you will also call the broker for cooperation! “

For another four months, the famous directors collectively spray Marvel: First, Scorsese called Marvel movies a theme park product (meaning superficial), then “Godfather” director Coppola and Spain National division Almodovar took the baton, and the former considered Marvel to be despicable, and the latter said that Marvel’s male lead was as if he had been beaten [23]. Over time, the stick of “garbage pollution art” waved up and down.

Scorsese, who has filmed “Taxi Driver” and “Wolf of Wall Street,” is the representative of the old American director. He has created an era of his own in Hollywood and can be found in the “Big Five” (Disney, Universal, Warner, (Sony, Paramount) now favors superheroes. Scorsese and his IP are long gone, and they have to actively participate in the embrace of the emerging streaming media leader Netflix.

In the 23 years since its establishment, Netflix has climbed the snow-capped mountains of “DVD rental”, the grassland of “copyright subscription”, the iron cable bridge of “drama-made”, and finally added the yellow robe of “disruptive innovation”. While subverting the way humans watch, Netflix has also snatched the cheese of traditional players. In the past ten years, its stock price has increased by more than 3700%, far exceeding Amazon and Apple [27].

For those lost artists, without the support of the Hollywood masters, Netflix naturally became their first choice. In the face of public enemies in this industry, traditional players such as Disney, AT & T and Comcast have been chasing them. Therefore, the heated discussions around Marvel, Golden Globe, and Oscar are on the surface an art-commercial battle, behind which is a content-channel battle, which are naked interests.

2013-2019, Netflix Emmy nominations and awards

On the question of “Who is China’s Netflix”, the capital market has already shot the railings around the three “You Ai Teng” companies. In fact, judging from the status quo of “content with weak content and strong distribution with no content” in domestic streaming media, it is not yet known who has died, but if you want to laugh to the end, you must review Netflix ’s road to liberating Hollywood, especially Its three major battles:

01. Decisive battle in Liaoshen: Swim until the sea water turns blue

02. Marching into the Huaihai: Streaming Media’s Sunless Empire

03. Conquering Pingjin: How Jianzong overpowered Qizong

04. Towards liberation: small wins become big wins, space changes time

1. Battle of Liaoshen: Swimming until the sea water turns blue

About the origin of Netflix, the official version for publicity is:

In 1997, American Internet entrepreneurs were in the ascendant. Reed Hastings, a 37-year-old software engineer, (Reed Hastings) just sold the company And very profitable. He is a super movie fan, and goes to Besida near his home to borrow videotape [13]. Once I borrowed the space film “Apollo 13” starring Tom Hanks, Hastings forgot to pay it back and was fined $ 40 by Besida.

Netflix, Los Gatos, Silicon Valley Town, 2018

Hastings is financially free. But the gap from the star sea to the payment of the fine made him turn around. You ca n’t buy 40 dollars, you ca n’t buy it, you ca n’t buy it, but it can affect a dayThe scale man’s chic. In order to kill Baishida, Hastings and his old friend Marc Randolph founded Netflix, formerly known as Kibble, on August 29, 1997. The main business is renting movies.

Actually Netflix wanted users to watch videos online. Only because of the high cost of bandwidth, this road was temporarily put down, focusing on renting video discs [29].

But it ’s not easy to survive in the video rental market. Since the 80s, the video cassette recorder (VCR) has dominated American entertainment. Daxiongba’s video rental market once had a scale of 60,000 employees and 9,000 chain stores. However, despite its strength, Baishi has many problems in terms of pricing, rental and return experience, and operating efficiency, which also gives Netflix an “opportunity”.

Blockbuster, who once dominated the home video market in the United States

It ’s actually troublesome for users to borrow video tapes from offline stores. Not only is the cost of borrowing and repaying, but also the penalty caused by overdue, there is another disadvantage-“copy depth”: that is, a copy of a single movie on the shelf of a video store. Quantity.

In order to make money, the studio will raise the selling price of the single disc sold to Besida to 90 US dollars, calculated based on the rental price of 2.49 US dollars, without adding management fees, the shop rents 60 times to make a profit [2]. Under the store operating pressure, the cash flow model of Best Buy’s “buy out copy before renting out” must be accurately calculated to guarantee a certain profit margin. This led it to dare to buy only the hottest films and then fill them with shelves.

This erodes the copy depth of other movies. Except for the popular movie, which can have 5 or 6 copies, most copies have no substitutes. If you go late, you can only borrow fitness videos!

In the opinion of Patty McCord, author of the Netflix Culture Handbook, Hastings’s sniffFeeling super sensitive, “Reed often calls me at 2 in the middle of the night, he is the kind of person who has a good idea and can sleep without sleep [1]”, Hastings made this behemoth of Beida I made a judgement: The channel advantage of the opponent is fragile in the face of the long-standing user experience.

After understanding the pain points of the traditional model, Netflix uses the mail leasing to solve the problem: after customers join the Internet and operate, the postal service will be responsible for the entire process. Not only that, Netflix, which has freed up the store, has built a lot of distribution warehouses, which has overcome the stubbornness of copying by increasing the coverage and distribution speed.

Netflix launches mail rental model

In September 1999, Netflix launched the “Sky Screen” on the basis of a membership system, which changed the business model from pay-per-view to monthly subscription. The initial price was $ 15.95. In the year of implementation, 239,000 new users were crazy. Subscribe to [6]. The next year, Netflix abandoned the overdue rule after raising the price by $ 4, and overdue revenue accounted for as much as 16% of the annual revenue of Besida [15].

Netflix’s subversive move has successfully made the Red Sea a blue sea. In addition to the innovation of the business model, another push for Netflix’s comeback is its precise grasp of the technology vent: In the 1990s, the format of American home video was still the traditional video tape (VHS ) , which is exactly this copy provided by Beida. And Netflix bet on DVDs that weren’t very popular and expensive at the time.