Chapter 1833 Development and Development of Peripheral Products (Part 2) (Additional Update for the Pony Leader Who Grew up Eating Hot Pot!)

At present, from the perspective of the top management of Le Yi Ling and Qilin Culture, the net income of HK$2.5 billion a year is actually very cost-effective.

There is no tax on overseas income in Hong Kong, or the income other than the normal box office income is all earned for free. Is there any reason for everyone to be unhappy?

But Yin Jun looked at the 2.5 billion and thought more.

Judging from the development trajectory and current situation in Europe and the United States, the golden age of the Asian regional video tape market is actually far from reached.

In Yin Jun's mind, there are 300 million people in Asia whose consumption levels are comparable to those in the United States.

Not to mention that it can be the same as the United States, even if it is only two-thirds or even half of the video tape market in the United States, there is still huge space to be tapped.

Kirin Culture's video copyright revenue last year was equivalent to three "Saw" movies, one "E.T." or one "StarCraft". Is it really that weak in terms of capabilities?

of course not!

There are video tape copyrights for more than 130 works, at least 50 of which are film and television and variety show works that are big hits and have high ratings.

The reason why there is such a big gap is because everyone’s consumption desires have not yet been guided.

If they are people with low incomes, they may not buy or rent video tapes no matter how much guidance is given.

But the group of people identified by Yin Jun are all high-income people - not just in Japan, South Korea, but also in places like Taiwan, Thailand, and Singapore, where Mercedes-Benz and BMWs have long been on the streets.

They have sufficient spending power, but they are not yet accustomed to the market and entertainment methods such as video tapes.

At first they thought it was a bit wasteful.

I have watched TV series and variety shows once or twice in the cinema, or watched TV series and variety shows on TV. Unless I like them very much, it is impossible to buy them back and watch them over and over slowly.

Secondly, it is also because the gap is not big.

In later generations, why did DVD sales become so popular in the United States after videotapes?

The reason is reflected in this gap!

For example, for movies, the theatrical version is usually 120 minutes, or 130 minutes at best.

But in the later Blu-ray DVDs, it will be directly extended to 150 minutes or even 180 minutes.

There are thousands or even tens of thousands of hours of footage taken, and adding so many dozen minutes is a piece of cake.

Moreover, many of the edited scenes are different, and even the endings are different.

Well……

The scale is also a little different. Many exciting scenes that have been skipped in movies have been included in the DVD.

Such a huge difference will naturally attract many movie fans to watch it.

For example, one of the reasons why the collector's edition of "Titanic" has sold so much is because in the videotape and DVD versions, there are very clear shots of Fei Wen getting naked while Jack is painting. Countless men rushed to see it. You have to buy this for collection.

Therefore, their sales are good, and there is a reason for this.

People who are not proficient in marketing cannot do it at all.

And they are also professional.

It’s not that you can add whatever you want. The production of this DVD version is also very delicate and requires a director team, a producer team, and an editing team to work together to complete it.

This kind of DVD is a good product, and it won't make people feel cheated, spending money only to buy a bunch of junk.

On the contrary, when domestic directors do this kind of thing, they just make it up and make it badly, just like sending a beggar away, so there is a reason why it doesn't sell well.

Yin Jun knew the secret of this, so he prepared the next step of selling the video copyright.

Spend a month or even two months re-editing and producing to create a more sophisticated and interesting video version that these people will not worry about buying, renting and watching.

It’s not just the videotape.

There is also a TV series, so there is less material that has been cut?

You can still add it in!

You can add some hot fighting scenes and intimate scenes, as long as they don't go overboard.

This kind of TV drama video tape will definitely be welcomed by everyone.

Variety shows are even simpler. Some scenes that were originally skipped, such as the fierce conflicts in "Hong Kong Idol", some singers who sing more bizarrely, etc., all of which are topical and entertaining, are given to Add it in and it will look good.

Even people like Yin Jun, who live in an era of explosive entertainment, like to watch behind-the-scenes of such programs, let alone people of this era.

With these gimmicks and things that can't be seen on TV, more people will naturally buy into it.

They are afraid of waste, but they will never give up the opportunity to explore the secrets and know more than others because of the price.

What's more, a videotape is not expensive according to the income level of developed countries.

If you think it is expensive, it is normal to rent it in a developed rental market.

correct.

In this era, although Thailand, Malaysia, and the Philippines are not as good as Japan and South Korea, they are still very strong countries with rapid economic development, and the salary conditions of the people are very good.

Although the Four Little Dragons and Four Little Tigers of Asia may be boasted, they are actually very real.

Their current economic development situation is actually similar to that of China before 2008.

It's just that when they were transforming and upgrading, they declined because they did not have a huge market support, no better foundation and development motivation, and they could not sustain the brutal harvests of the United States.

Therefore, if Yin Jun does well and expands his current market share by 10 times, that is no joke at all, it is a goal that is very likely to be achieved.

After talking about the largest market share of video tapes, the next step is the broadcast copyright of slightly weaker cable TV stations.

Many Chinese people do not know what cable TV is and what is the difference between it and wireless TV.

The simplest difference is that cable TV charges a fee, while wireless TV does not.

Well, the exception is China's TV viewing fee. This is a free station that has to pay a viewing fee of about 10-20 yuan a month. Every family watching TV cannot escape.

For example, in the United States, which has the most developed television industry, CBS, ABC, and CNN are free wireless TV stations. You only need to plug in a TV antenna to watch programs.

These wireless TV stations, or wireless TV networks to be precise, mainly make money from advertising, as well as the copyrights of some programs, and peripheral products of TV series and program DVDs.

Cable TV stations are encrypted TV stations with special set-top boxes. They are similar to the TV viewing fees in China from 2006 to 2014. They are all based on the basic fee. You choose to buy one or several channels, so that you can decrypt and watch them. Premium channel programs.

Channels such as "Feng Yun Football" and "Feng Yun Music" in those years were charged this way.

Of course, after entering the Internet era, people have less time to watch TV. Who will watch your paid channels with substandard content?

In addition, telecommunications operators such as China Telecom, China Unicom, and China Mobile have launched packages that include comprehensive services such as landline telephones, TVs, mobile phones, and Internet access. When converted into TV viewing fees, it does not cost much in the first place. Therefore, encryption or not is already a problem. Not a problem anymore.

But it's different in the United States.

There are real people in American cable TV stations.

Not talking about those exciting movies for adults, but the TV series they produced seriously.

For example, cable TV stations such as HBO and Showtime, including Netflix, an online content service provider, are actually online versions of cable TV stations.

HBO's battle for supremacy was that year's "Band of Brothers," a TV series co-created by Spielberg and Tom Hanks that almost bankrupted HBO.

But the effect produced is also very amazing, which is enough to add more than two million users to HBO, which is a miracle.

Since then, no matter who comes to compete, HBO has always been the king of American cable TV channels, and even Netflix cannot shake its position.

Of course, Netflix relies on the Internet platform to have more floating users, and many single TV series have exceeded the number of HBO subscribers, which is normal.

If these TV stations were placed in China, with super classic TV series such as "Brothers", "House of Cards", "Six Feet Under", "Homeland", "Boardwalk Empire" and so on, I believe they would be willing to subscribe. There are also many viewers watching.

The prerequisite is that after 2018, when the new generation in China gets used to respecting copyright and respecting the hard work of others, such subscriptions will slowly begin to show results.

Compared with the United States, there are still cable TV channels in Asia, but they are basically insignificant.

Therefore, TV copyrights sold in Japan, South Korea, Singapore, Thailand and other countries are usually broadcast on their wireless TV channels, which are free of charge and earn advertising fees.

Such movies, TV series, and even variety shows are no longer first-hand resources, so the price cannot be very high.

Usually it's a three-year or five-year buyout price, and you can play it as many times as you like.

The income of this part of Qilin Culture is HK$370 million, which is almost only one-seventh of the video tape, and it probably will not increase much in the future.

After all, this is not as fresh and timely as when there was no satellite TV in Xiangjiang, and it was broadcast on the three major TV stations. At that time, it was a first-hand resource, and of course it could be sold more expensively.

As for the last payment of peripheral products such as clothes, shoes, stationery, etc., the licensing performance is not too bad, it is 530 million Hong Kong dollars, which is much more than the income from TV broadcast rights, but still much less than the video tape.

The three aspects add up to a total of 3.4 billion Hong Kong dollars, which is the overall peripheral income of Kirin Culture last year.