After the mmcd storage format was officially commercialized, Xia Tian also began to implement Blockbuster's weight loss plan.

Blockbuster Audio and Video Chain is currently the world's largest audio and video rental chain, with more than 3,600 branches around the world, and more than 1,500 branches in the United States alone.

It also has more than 33 million members and receives tens of millions of customers every day. In the United States and many places, driving to Blockbuster to rent a few video tapes and then enjoy them with your family and friends on weekends has become a very common way of life.

And because of this, the daily turnover of Blockbuster Audio and Video chain stores is as high as more than 7 million US dollars, which is simply a powerful tool to attract money.

Several major U.S. securities firms hope to launch Blockbuster in the summer, and optimistically estimate that Blockbuster's market value may exceed 20 billion US dollars.

The reason why they give Blockbuster such a high valuation is that in addition to Blockbuster's monopoly on the video leasing market and having tens of millions of high-quality paid members, the key is that they highly value Blockbuster's business model.

With the strong push of summer, Blockbuster introduced the Internet and big data management model.

All member information and rental records will be uploaded to the company's general server for centralized management. Therefore, members do not need to worry about their membership being invalid, whether they are on business, traveling or moving.

As long as there is a Blockbuster Audio and Video chain store, they can enjoy first-class membership services locally with their membership cards.

The Blockbuster Audio and Video chain stores have more than 1,500 stores in the United States, and almost all large cities and towns have their stores, which has basically reached the national access.

In addition, Blockbuster will also recommend movies that suit the best taste based on the members' previous rental records through program calculations. This reduces the difficulty of customers to choose and greatly increases their efficiency in choosing movies.

According to statistics, if a customer wants to rent a movie in an ordinary video tape store, it usually takes twenty minutes to choose. In the Blockbuster Audio and Video chain store, customers can choose the movie they want within five minutes.

Wasting time is wasting money, saving time is saving money. The difference between twenty minutes and five minutes makes customers naturally know how to choose.

Moreover, recommending movies through big data has also reduced the workload of clerks.

Because many customers refer to the clerk’s opinions when renting videos. If it is the peak period of customer flow, one person can make the clerk busy to death. But now with big data recommendation movies, clerks can save a lot of saliva.

Moreover, with the assistance of computers and the Internet, Blockbuster Audio and Video chain stores can manage huge stores with only a few clerks without being too busy. In comparison, many large audio and video chain stores only need more than ten clerks, which greatly increases labor costs.

In addition, since the beginning of the previous year, Blockbuster has launched an Internet film ordering service, allowing members to order films online and enjoy new films without leaving home.

In the past two years, the Internet has been booming again. All companies related to the Internet have high market value. Many Internet companies have not yet made profits and are still in the stage of losing money every day, with valuations of hundreds of millions and billions of dollars.

As a company with an annual profit of more than $1.5 billion, it is very reasonable to value Blockbuster's valuation of $20 billion.

...

However, summer did not promote Blockbuster's listing.

The reason is very simple. Blockbuster is very profitable now, so he can't afford to give this cake to others to share.

This is like Lao Ganma. It makes profits every year, has sufficient funds, and is consolidated in the market. You can live a good life with your own funds alone, and you don’t even want to use bank loans.

Once listed, the company belongs to all shareholders. Even if the chairman cannot do whatever he wants, he must accept supervision from all shareholders and distribute part of the profit to shareholders.

We also have to work hard to expand profits and seek welfare for all shareholders. We also have to worry that the stock price will fall and we cannot explain it to shareholders. This means that we don’t make much money, but the responsibility is much greater. Summer will naturally not cause such trouble for ourselves.

To be honest, if he hadn't invested too much money in the mainland, he would have been willing to privatize several major companies such as Tianxia Real Estate, Tianxia Energy, and Tianxia Technology.

...

Moreover, in summer, Blockbuster's weight loss plan will be implemented.

Blockbuster now has more than 3,000 stores, and the monthly rent is millions of dollars. Among them, not only stores, but also warehouse rental fees.

The most important part is the cost of purchasing video discs. In order to meet the needs of customers to watch new movies, Blockbuster purchases millions of video tapes, vcd discs, etc. every month. It is the largest video tape buyer in Hollywood. These video tapes and vcd discs also consume tens of millions of dollars of Blockbuster, accounting for 40% of its cost expenditure.

In addition, the transportation and storage of video discs also require a lot of money. Especially for video tapes, if stored poorly, they will become moldy, so they must be carefully stored to avoid damage.

After implementing the weight loss plan, Summer preparations are to reduce the stores of Blockbuster Audio and Video chain stores to more than 1,500 stores in the United States to more than 200 within three years.

At the same time, we set up branch points in various states in the United States to promote movies using advertising cards, the Internet and telephone numbers, and use the postal system to deliver movies.

This model of summer is copied from flix. The company was founded in 1997 and took only six years to pull off the old audio and video chain rental store Blockbuster.

What it relies on is cheaper costs and higher work efficiency than Blockbuster.

Unlike Blockbuster opening a store, Netflix (flix) conducts business through the Internet. Users browse Netflix's website to subscribe, and then Netflix delivers it through the post office system.

In short, Netflix is ​​like an online store today. It does not have to pay expensive store fees and does not require so many clerks, so the cost naturally drops.

Moreover, it rents DVDs instead of heavy and stupid video tapes, which also saves a lot of storage costs. After all, DVDs are much smaller in size than video tapes, and transportation and storage are relatively simple.

It is precisely because of the cost advantage that Netflix fast fish eats slow fish, gradually swallowing up the market of Blockbuster and eventually destroying the giant.

Xia Tian knew this, so he naturally did not want Blockbuster to repeat the same mistake. So from the day the mmcd was officially launched, Xia Tian began to vigorously promote the weight loss plan. He was preparing to complete the entire weight loss in two years.
Chapter completed!