Heads Up Hollywood

In the past year, most of the department Tang En valued most was the Interactive Entertainment Department.

Not only Netflix, but also Blizzard, Dolby Laboratories, imax, and Rotten Tomatoes all received Tang En's attention. And that doesn't even include the new company he single-handedly created, Facebook.

However, at the end of the year, the performance of the Interactive Entertainment Department...was a bit horrible.

The other three major departments have exceeded the expected goals to complete the task, and the income is quite high.

The film and entertainment department, with revenue of 12.35 billion US dollars, exceeded the target by 30%, and the pre-tax profit was 3.08 billion US dollars;

The TV Media Department had a revenue of US$5.63 billion, exceeding the target by 12.6%, and a pre-tax profit of US$1.43 billion;

Tourism, vacation and consumer goods department, with revenue of 2.92 billion US dollars, exceeding the target by 16.8%, and pre-tax profit of 630 million US dollars;

What about Interactive Entertainment?

At the beginning of the year, the revenue target of the Interactive Entertainment Division was $4 billion...

As a result, by the end of the year, it was 12.2% lower than expected, only $3.51 billion.

The main reason is that Houghton Mifflin was sold and lost nearly a billion dollars in revenue.

But profits...well, a net loss of $260 million.

Most of the interactive entertainment divisions are technology companies, including Blizzard, Netflix, Dolby Laboratories, and imax, all of which spend a lot of research and development funds.

This year, the research and development expenses spent by the interactive entertainment department amounted to as much as 1.8 billion US dollars.

After the Facebook company is created next year, research and development costs will only increase further.

The interactive entertainment department has a long way to go to make a profit!

Looking at the slightly stiff scene in the meeting room, Tang En frowned. He didn't like this kind of "profit-seeking" company atmosphere.

What's wrong with the interactive entertainment department losing money?

This is paying for the future!

New Universal Group wants to become the world's top large company, ranking in the top ten, or even the top five. No matter how good the performance of the film and television entertainment department, TV media department, and tourism, vacation and consumer goods department is, there is no chance.

This kind of unimaginative traditional enterprise will have steady performance growth, but it has lost the possibility of creating miracles.

Even the sta TV network with the best potential seems to have created an unrepeatable legend in the TV industry.

However, so what?

It's also just a legend in the TV industry.

Can it compare to Netflix?

Netflix, creating a new world!

In the previous life, when hbo was in full swing, its value was about 22 billion US dollars.

But what about Netflix? $100 billion, $200 billion is not a problem!

What kind of achievements will Netflix in this life achieve with the support of New Universal?

The three traditional business departments support New Global's current leading position in the industry.

However, this sphere of influence is within Hollywood and the entertainment industry.

If New Global Group wants to break out of the blockade and become the world's top large company on par with Apple, Google, and Microsoft, the biggest reliance is the Interactive Entertainment Department!

Making money is important, profit is important.

However, the future is more important!

This is also the reason why Twain devoted a lot of energy to the interactive entertainment department in the past year.

Tang En clapped his hands. He didn't allow everyone to look at Kevin Turner with that contemptuous look.

"Everyone has seen the report. Congratulations! In the past year, New Global Group's revenue was 24.18 billion US dollars, and the profit before interest and tax was 4.89 billion US dollars. According to preliminary statistics, the net profit can reach 3.5 billion US dollars. This is a great achievement !"

As soon as Tang En's concluding remarks began, there were bursts of applause from the executives in the conference room.

This is definitely a happy event!

During the year, New Global acquired some assets and sold some assets.

Excluding the ongoing sale of Sillywood Animation and the acquisition of Discovery Media, the New Universal Group had a deficit of US$4.28 billion in the process of asset sales and acquisitions this year.

In 2002, the remaining cash flow was 2.8 billion US dollars, and this year there was an additional debt of 1 billion US dollars.

In other words, if the gross profit of 4.89 billion U.S. dollars can reach 3.5 billion U.S. dollars after deducting debt interest and taxes, then by next year... the cash flow on New Global's books will be as high as 3 billion U.S. dollars!

All of you here are shareholders of New Global.

The cash flow of 3 billion U.S. dollars is everyone's money!

Excited to think about it!

Tang En waved his hand and immediately poured cold water on him, saying: "Everyone has overfulfilled the task this year, but this does not mean that our cash flow pressure is gone. In the next two months, we will complete two big transactions, and everyone will As we all know, one is to sell Sillywood Animation to Disney, and the other is to acquire Discovery Communications. In these two asset transactions, we will have a deficit of US$1 billion. In addition, this year, in order to acquire MGM, EMI, Rotten Tomatoes, etc. Assets, we are responsible for an additional US$1 billion. The debt of US$9 billion may not be a big deal for the size of New Global, but we must guard against it! "

Bill McNick suddenly said: "The debt of 9 billion US dollars is only. If there is no interactive entertainment department to hold back, it will be completely paid off in less than three years."

The faces of the people in the meeting room changed slightly.

Who doesn't know that the interactive entertainment department is the big treasure in Tang En's heart?

Sure enough, Tang En's face darkened.

Bill McNick is an old entrepreneur of Tang En Pictures, and this year he led the film and television entertainment department to create a miracle of revenue.

"Twain, as long as New Universal is based in the film and television entertainment industry, that's enough! We have movies, TV, TV stations, music records, as well as theme parks and consumer goods businesses that are becoming more and more important. In just a few years, we have We have established a firm foothold in Hollywood, and we have even achieved the largest volume in the industry! We have found the right direction, and there is really no need to grope with our eyes closed, and we can draw a clear line of influence.”

As soon as these words came out, the meeting room became surprisingly quiet.

The silence is a little disconcerting.

I have to say that Bill McNick's words spoke out the hearts of many people.

New Universal has found the right direction, which is to focus on the content of film and television entertainment and develop derivative industries with stable income, such as TV stations, consumer goods, and theme parks...

Is it still necessary to continue to explore new directions under the risk of losing money?

All the people here are smart people, and they all know that the reason why Twain attaches great importance to the interactive entertainment department is that he is looking for more development paths, so that New Universal's position in the industry can be firmly established and as stable as Mount Tai.

But is it necessary?

New Universal's movies have already occupied one-third of the North American box office market; New Universal's TV programs have dominated mainstream TV stations such as nbc, abc, and fox; New Universal's theme parks have become more and more famous and profitable Gao, is catching up with Disney in a straight line; the TV station of New Universal, headed by starz, has created a myth...

It's already very stable!

"Who agrees with Bill's statement?"

Tang En remained calm and looked around at everyone.

Everyone is honest.

Bill McNick is a pioneer of entrepreneurship, and he dared to question Dunn face to face, but would they dare?

In front of Tang En, even Barry Diller had to be careful.

Tang En smiled and waved his hands, "Let's put it another way. Who supports the interactive entertainment department? Or... who thinks that even if they keep losing money, they should promote the development of the interactive entertainment department?"

Kevin Turner looked serious and was the first to raise his hand.

Immediately afterwards, several directors of the interactive entertainment department also raised their hands.

Tosca Musk, assistant to the chairman, also raised her hand. As the most beautiful woman in the conference room, her raised hand attracted many people's attention.

Immediately, John Last, CEO of Pixar, raised his hand, Bob Chapek, President of Tourism and Consumer Products Division, raised his hand, Roy Price, President of STA TV Network, raised his hand, Universal International Distribution Company The CEO West Cotton raised his hand, and the president of Universal Television Ted Sarandos raised his hand...

Finally, New Universal's third-in-command, president Robert Iger, also slowly raised his hand.

Tang En gave his secretary Ira Fisher a look.

She understood, immediately bowed her head, and took note of the people who raised their hands.

Executives who can recognize the importance of the Interactive Entertainment Department are undoubtedly ambitious, ambitious, and ambitious. Even if some people have speculative ideas to exploit loopholes, it doesn't matter.

These people will definitely be reused in the future.

Speculation is also a kind of ability!

"Bill, for you, what is the most important thing about a company?" Tang En made a gesture of pressing down and asked with a smile.

Bill McNick blurted out without thinking: "Profit!"

"Is it profit?"

"Only when an enterprise creates profits can it create wealth for the society and be recognized."

Bill McNick's remarks were approved by most people in the conference room.

Even Kevin Turner is nodding.

Tang En was a little speechless.

It's 2003 now, traditional economic thinking still occupies the commanding heights, Internet thinking... is not popular enough after all.

But then again, it is precisely because Internet thinking is not popular enough that I am afraid that companies such as Yahoo, Google, Amazon, and Facebook have the opportunity to be born.

Tang En cleared his throat and said: "In the traditional economic model, there is nothing wrong with thinking that companies must make profits in order to be recognized. However, this is just a traditional economy. Haven't everyone noticed the competition between Blockbuster and Netflix? The collision of Internet thinking and the traditional economic model is a one-sided massacre!"

"That's because Netflix has the background support of New Universal!"

"Wrong! Even if there is no New Universal, Blockbuster will definitely not be Netflix's opponent! However, with the backing of New Universal, Netflix will get rid of Blockbuster sooner!"

Bill McNick immediately shook his head: "Netflix is ​​just an exception."

"An example?" Tang En's mouth curled up, his expression deep and complicated, "Now, the outside world says that our Starz TV station is a monster and has created a miracle in the cable TV industry. Then I have a question, if one day, the network speed really breakthrough, the rise of online video, and the competition between Netflix and Starz, who will win?"

All the smart people present here immediately thought of something and were dumbfounded! Want to chat with more like-minded people about "Single Out Hollywood", follow "Youdu Literature" on WeChat, chat about life, and find friends~