Heads Up Hollywood

Jeff Zucker is 38 years old this year, and he is in charge of the TV media department of New Universal. He can definitely be regarded as young and promising.

Of course, Kevin Turner, the head of the interactive entertainment department, is the same age as him, and is also a key training target for the second echelon of New Universal Group.

Barry Diller will retire within 5 years!

After he retires, president Robert Iger will take over as CEO, not surprisingly.

So, who does the position of president and chief operating officer belong to?

Since the beginning of this year, Tang En has given great support to the Interactive Entertainment Department, not only focusing on promoting the Netflix business, but also increasing the research and development funds of Blizzard, Dolby Laboratories, and imax.

It can be said to be the focus of attention.

Because of this, Kevin Turner has risen all boats and become a big celebrity around Tang En.

Very popular.

He is also the person in charge of most departments, how can Jeff Zucker bear it?

His ambition is no lower than anyone else!

The group's focus is not on the TV business, so he will come up with the best plan, an amazing one!

Whether it's Dunn Walker or Barry Diller, they can't even open their mouths if they want to refuse!

Indeed, he succeeded.

His analysis and understanding of Discovery Communications impressed Barry Diller, and made Tang En change his mind and want to make a big bet on the TV industry.

"Jeff, I've read your report on the merger and acquisition of Discovery Communications, and it's very exciting." Tang En invited Jeff Zucker into the living room, treated him as an equal, and showed no airs of leadership.

Jeff Zucker said confidently: "I am a TV person. In the TV field, I have my understanding."

Tang En nodded, "Let's talk about it specifically, what kind of improved strategic policies does Discovery Communications have?"

Jeff Zucker said seriously: "The United States has the most developed TV network in the world, and it is bound to face the fiercest market competition. The TV channels in the United States are mainly divided into three categories: the first category is NBC, CBS, FOX , ABC and other comprehensive TV channels; the second category is specialized channels such as CNN, ESPN, MTV, and Discovery Channel, which focus on news, sports, entertainment, science and education, etc. with obvious distinctions; the third category is HBO, Starz, Home Narrowcast personalized channels such as TV.”

"Here, we only mention professional channels."

"CNN and ESPN both have a huge user base, covering the entire United States, and their ratings are no worse than free TV stations. Advertising revenue is a very important piece. Not to mention MTV, which has a huge influence on global music. However, Discovery Channel is different. , it’s a documentary channel.”

"Taking the United States as an example, generally speaking, the ratings of the highest single program of the Discovery Channel will not exceed 3%, the market share in the cable TV market will not exceed 4%, and the average daily ratings of the channel will not exceed 0.6%. It can be said that , Such a poor ratings will inevitably lose the confidence of advertisers, thereby affecting revenue."

Tang En nodded, "Although Discovery Communications has multiple channels, the main channel is Discovery Channel. This is a low-priced subscription channel. If the advertising revenue is insufficient, it may not be enough to shoot and produce more excellent documentaries .The lack of good TV shows further drives down the ratings, and it's a vicious cycle."

"That's right, a vicious circle!"

Jeff Zucker paused and said: "In order to increase revenue, Discovery Communications has mainly taken two measures: one, increase channel subscription prices; two, produce more gimmick documentaries, gain attention, and increase ratings .”

Tang En's expression remained calm.

Raising subscription prices is obviously not a good idea.

For channels like HBO and Starz, the price increase will also increase the price, because this is a niche channel, which is dedicated to the elite who can afford it.

But the Discovery Channel is different. It broadcasts humanities, science and education documentaries, which are not very entertaining.

If the price is raised... people won't watch it!

As for the production of gimmick documentaries, Twain is also not optimistic. This kind of behavior of eager for quick success is suspected of drinking poison to quench thirst.

"Is this what you mentioned in your report, Discovery's strategy of self-destruction?"

"That's right!" Jeff Zucker looked very confident, "The manager of Discovery Communications Company didn't recognize the advantages and disadvantages of documentaries at all!"

Tang En smiled, "Needless to say the disadvantages, boring, undisciplined, and lack of interest are all understandable. What are the advantages of documentaries?"

"pattern!"

"pattern?"

"That's right, documentaries have a wider global scope than Hollywood movies, "Harry Potter", "Gone Girl" and other best-selling books!"

Tang En's eyes lit up, and he already understood what he was going to say.

After all, he had already discussed this aspect in his report.

Jeff Zucker said: "Documents, like cartoons, are not limited by language. However, cartoons are time-sensitive, but documentaries can transcend time. Documentaries also have a wider range of production materials. Discovery Communications has businesses all over the world. , However, because overseas revenue is too little, their main perspective is on the domestic market, which is putting the cart before the horse.”

"The Discovery Channel must position its products in the global audience market through the boutique concept, so that its audience will inevitably expand several times, instead of having a name of 1.5 billion users, but the actual ratings are almost none. The Discovery Channel must adopt marketization, With a professional operation method, each work must be carefully planned, professionally produced, and accurately positioned for the audience in order to achieve the goal of global marketing."

"To put it bluntly, TV channels such as CNN and MTV rely on advertising revenue to make money. However, Discovery Channel must not take this development route. They sell advertisements, and Discovery Channel sells products, which are documentaries that are sold around the world!"

Tang En said lightly: "The concept of boutique has always been advocated by Starz TV station. We have experience in this field. But, how to achieve precise positioning? How do you ensure the economic benefits after high investment and large production? Documentaries... are not movies. , TV entertainment programs, the whole world has no similar experience."

"Market Research!"

Jeff Zucker was clearly prepared, and he blurted out, "For every investment, we have to conduct scientific preliminary research-subscriber demand for programs, product sales, copyright purchases, etc. Then use the Discovery Channel as the source, Carry out product production and broadcast, and at the same time achieve the effect of cultivating the product market.”

"If the expected goal is achieved in the early stage, the same material will be used to further produce derivative products, such as audio-visual products, books and periodicals, etc. Although we have sold Mifflin Publishing Company, we can carry out peripheral authorization. Presumably the publishers will I am very interested. The development and promotion of these derivative products are an important part of the documentary production industry chain."

"In the development and integration of the whole set of industries, we also need to pay attention to the development of intangible products. For example, programs such as tourism, exploration, and archeology under the Discovery Channel can plan theme activities for on-site experience. Through the channel promotion of the group company, we can attract many people. The participation of outdoor sports enthusiasts and ordinary consumers will undoubtedly greatly enhance the recognition of the 'Explorer' brand."

Well said.

But this set of theories... How similar is it to David Saslav, who took over in 2007 and led Discovery Communications to the top?

Huh?

wrong!

David Saslav is a television producer from NBC, and Jeff Zucker...was the head of television production at NBC!

Could it be?

Tang En's eyes lit up, and he asked, "Jeff, do you know someone? David Saslav."

"David?" Jeff Zucker was slightly taken aback, "You know him?"

Tang En's eyes became even brighter, "You guys know each other?"

Jeff Zucker said: "Yes, he used to be my colleague, he can be regarded as one of my assistants. He is very capable and has many wonderful ideas. After I left NBC, I heard that... he seemed to be promoted to the TV production department Vice President, the No. 3 person with real power."

really!

Knew it!

No wonder Jeff Zucker can come up with such a theory.

It turns out that different routes lead to the same goal!

We are all family.

Tang En nodded and said, "Jeff, in principle, I agree with the acquisition of Discovery Communications. You can take full responsibility for this case and just report to Barry. The transaction time... will be next year In the first quarter, have you considered the price?"

Jeff Zucker was so excited that he lost his composure. He rubbed his hands, looking impatient, and said, "The price...should not exceed the MGM acquisition!"

In the latest development of the MGM acquisition, Barry Diller has approved a $4.2 billion cash deal.

This time, Kirk Kerkorian did not respond with a refusal.

There is no direct promise, and it should still be waiting for bids from other companies.

Mainly Sony.

Exploration Communications Co., Ltd. went public in 2005-2006, with a market capitalization between US$5 billion and US$6 billion.

Right now, in 2003, that is between US$3 billion and US$4 billion.

Tang En nodded and said: "Yes, this price, as soon as next year, we can eat it relatively smoothly. In addition, after the acquisition is completed, what do you think about the management of Discovery Communications?"

"this……"

Jeff Zucker hesitated, "I haven't considered it yet. If it doesn't work, I will take on that position until Discovery Communications is on the right track."

Tang En smiled, "Didn't I mention someone to you just now?"

"David?"

Jeff Zucker's eyes widened.

"That's right!"

"His qualifications, I'm afraid..." Jeff Zucker didn't quite believe it.

Tang En said with a smile: "You can also serve as the chairman of Discovery Communications and let him be the CEO. The position is low, and it will be more difficult to poach talents. You can think about it for a while."

Jeff Zucker was still uncertain, and it was not good to directly reject the big boss's opinion, so he said perfunctorily, "Okay, let me sort out this case first, and then think about the management."

He had already made up his mind that he would meet with David Saslav privately several times in the past few months to have a detailed talk.

If it's not suitable, he will definitely remonstrate with reason!