New York 2006

Chapter 146 Luo Ji’s Asset Inventory

"The scale of the Internet video rental service industry in the United States is about 50 billion U.S. dollars, and the global scale is even larger, exceeding [-] billion U.S. dollars. After some fierce competition, there used to be five or six companies in the Internet rental business, and now there are only There are two. Netflix and Blockbuster online!”

"The two companies have been fighting fiercely for more than two years. As time goes by, although Blockbuster Online is backed by Blockbuster, a giant in movie and TV rental physical stores, the company has debts of more than 10 billion US dollars and extremely poor cash flow. Abundant. They are gradually showing decline. Not to mention, Blockbuster Online's web pages are all plagiarized from Netflix, an Internet company."

"Blockbuster also broke out about the discord between the board of directors. I heard that Carl Icahn, a big short seller, has invested in Blockbuster. He still has a seat on the board of directors and is now messing around. This kind of Wall Street figure only knows short-term interests and has no idea of ​​long-term management. Company, he will definitely not support a money-burning enterprise like Blockbuster Online!"

"Looking at Netflix, this company's annual revenue exceeds 10 billion US dollars. Although its net profit last year was less than 1000 million US dollars, they have sufficient cash flow to cope with any competitor."

"Internet companies burn money to occupy the market. Whoever burns more money, whoever has more money to burn, is likely to win. Netflix now has a huge advantage! They are likely to win in this rental business war Win!"

“Netflix held a global million-meter metadata modeling competition last year, attracting more than 186 participating teams from 4 countries around the world. The mathematicians and code engineers among them are all the top talents in the industry. . Netflix’s intelligent recommendation algorithm has evolved to a level far beyond that of its peers, and has certain industry barriers.”

……

After Luo Ji read the entire introduction about Netflix, he was a little confused as to why he needed an intelligent recommendation algorithm when renting a disc.

Luo Ji opened Netflix's official website to register and pay for a test, then checked online, and it took him an hour to figure it out!
"So that's how it is!"

Netflix buys DVDs from movie companies and then rents them out to make money.A DVD can be rented hundreds of times, and the extra money is profit.

The monthly rental system implemented by Netflix was 19.95 yuan/month last year. In order to compete with Blockbuster Online, it was reduced to 17.99 yuan/month this year.For a monthly fee, unlimited rentals are available.

Although it talks about unlimited rentals, there is a requirement.

After the user places an order online, the company will send him a DVD through the postal system.After the user has finished watching this DVD, and then sends the disc to an outlet in that city, or directly to a nearby user who wants to rent it, he can rent the next DVD online.

This round trip takes about three days, which means that a user can rent up to ten DVDs per month.

But there is a problem. Every user wants to rent new blockbusters, which will greatly increase Netflix’s cost of purchasing DVDs.

So there is an intelligent recommendation algorithm.It can predict what themes and styles of movies a customer might like based on the user's previous rating data.

Through intelligent recommendation algorithms, it can not only attract users to rent old movies and improve user loyalty, but also reduce the company's operating costs.

Luo Ji thought about it for a while, including warehousing and logistics, city distribution after DVDs are purchased, maximizing the efficient use of DVDs, how to personalize recommendations, each user has unique data, the best logistics path, etc.

"Although it seems like a simple Internet DVD rental, there is a lot of technology involved!"

Luo Ji suddenly remembered the report he had seen not long ago that DVD sales fell for the first time in the first half of 2007.

Luo Ji then sighed and said to himself: "Although you are about to defeat Blockbuster Online, you can't solve the problem of industry decline! I'd better buy less of your stock!"

Just when Luo Ji was about to close the Netflix webpage, he suddenly saw an option on it called Watch Now!Watch now!

Luo Ji clicked on it, and a lot of movie lists appeared in it.He clicked on one at random, and the screen was stuck for more than 20 seconds, and then started playing directly!The picture quality is not as clear as that of DVD, but it is much clearer than that of YouTube.

The movie screen played for more than ten seconds and then got stuck again. The experience was very bad!
"interesting!"

Major Hollywood film and television studios have always been very resistant to downloading movies online.Whether it is genuine or pirated.A powerful blow!
Because piracy is too easy on the Internet.Although Apple's iTunes also provides a movie download service, it has very few copyrights.Therefore, the development of online movie watching has been very slow.Omi is still stuck in the era of DVD viewing.

But in East Asia and other countries where copyright is not strict, watching movies online is now very common!
Watch it immediately on Netflix, it’s so different, it’s a different kind in Omi.

While American studios are cracking down on online movie viewing, there are thousands of movies on Netflix. Aren’t these studios afraid of piracy?
Luo Ji went to search the Internet, and a new term appeared in front of him.stream media!

When he saw this word, he naturally understood its meaning in his mind, and the intuition that had not appeared for a long time appeared in his mind again, just like instinct!
"Streaming media is a technology and process that compresses a series of multimedia data, sends the data in segments through the Internet, and transmits audio and video in real time on the Internet for viewing. This technology allows data packets to be sent like running water. If not Using this technology, the entire media file must be downloaded before use."

In this way, the problem of piracy is perfectly eliminated.No wonder Netflix gets so many copyrights!
What the user receives is only a real-time data packet, and when the playback ends, the data will be overwritten.

"Although the current Internet speed is relatively slow and the video definition is not enough, watching videos on the Internet is a general trend!" The scene before Luo Ji's death in his previous life clearly told him that the videos he would watch online in the future would not have any glitches. Damn, the video definition is not inferior to today's DVDs at all.And more than a little bit more!
Watch it on Netflix immediately, although the experience is not good.However, technology is advancing, Internet speeds are increasing, and streaming media will inevitably usher in rapid development. This is the future!
"Boss, are these Internet stocks liquidated?" asked the company manager Hui.

Luo Ji then said, "Let's clear out the inventory. Just keep the three items you suggested."

Luo Ji earned 1.02 million yuan before June. In the two months of July and August, he earned another 3000 million yuan from record sales and tours.He also took out a loan of 2000 million.During this period, he earned around 1.52 million in cash.

I invested 1000 million US dollars in Logic Pictures for the preliminary preparation of the movie project. I invested 600 million US dollars in the game company, 750 million US dollars in Xiyin Clothing, 540 million US dollars in the house near Broadway, and 500 million US dollars in SolarCity. Thousands of dollars, the Long Live Life Charity Fund has 500 million dollars, and multicultural new media has invested 120 million.The management company that serves Luo Ji personally invested 200 million US dollars, the investment company invested 100 million US dollars in preliminary preparations, the SB brokerage company and the live performance company invested 200 million US dollars, and about 500 million US dollars were set aside for daily family life.The principal amount of subprime CDS was invested at 2000 million yuan.

These totaled 7010 million US dollars, leaving Luo Ji with 8000 million in cash flow, all of which was invested in the stock market during this period.

Among them, 5000 million was bought in stages, and the value of Apple increased by about 50% on average during this period.The remaining 3000 million was bought into other Internet companies, with an average appreciation of about 30%.

投资的次贷CDS2000万变成了2.83亿米刀。这2.83亿，罗辑拿出1亿米刀有别的用处。这两天又买了5000万的苹果股票，苹果股票现在已经占据了苹果市值的0.1%。剩下五5000万准备投资其他互联网公司。8000万做多贷款投资市场，300万用来投资公司的日常运营。

"Boss, the tens of millions of Internet stocks in the previous account have been sold out!"

"Ah."

Luo Ji then said categorically: "The newly invested 5000 million, plus these funds will be used to buy Netflix, buy me 5%. The rest will be bought by Amazon and Booking Holdings as you suggested!"

The investment manager looked at Luo Ji in surprise, but nodded in agreement.

Luo Ji stayed at the investment company for the next two days, personally taking charge and completing positions in Netflix and other companies without raising stocks on a large scale.

After the position was opened, Luo Ji changed his account password and locked the position directly. Only he had access rights.

Next, he will hold it for a long time, especially Netflix and Apple. These are transformative industries that will emerge in the future. He will hold them forever.

Luo Ji was sitting in the office, with a lot of thoughts in his mind. It was time to take stock of his assets.

Listed company.

Apple’s market capitalization is US$1280 billion, accounting for 0.1%
Netflix has a market capitalization of $12 billion, accounting for 5%
Amazon’s market capitalization is US$251 billion, accounting for 0.06%
Booking Holdings has a market capitalization of $29 billion, accounting for 0.5%
Unlisted companies with multiple shareholders.

SolarCity10%
Xiyin Clothing 15%
Future Records 88%
Multicultural new media 51%
SB Brokerage Company 50%
SB Live Performance Company 50%
Holi Games 90% (temporarily)
Unlisted sole proprietorship.

Logic Investment Company
Logic Personal Artist Management Company
Logic Films
All shares of the above companies are controlled by Logic Holdings, the core company wholly owned by Luo Ji.This company is like a spider web that connects all the companies.

This was his result. Luo Ji felt a little excited, and there was a surge of pride in his heart!
At this moment, Xu Youyu knocked on the door and walked in.Luo Ji hurried forward to greet him, this was his great hero!

Luo Ji looked at him and said, "What are you thinking about? Come to my company and serve me. I will give you three times the benefits you get at Deutsche Bank! There is also a 200 million joining bonus. I can give you the greatest authority. The CEO of the company is also yours!”

Luo Ji has always been generous to elites who can make money for him.

Xu Youyu has been coveting this mathematical genius for a long time!I have been invited many times.Everyone in the investment company was also introduced by him. As long as he joined the company, there was basically no objection!
Xu Youyu can only earn 200 million in Deutsche Bank in the Year of the Monkey and the Horse in the Year of the Horse. He is obviously excited.

"Thank you, boss!"

"You're welcome, you deserve it!"

Xu Youyu quickly got into the mood, and he said: "I understand that you purchased 5% of Netflix's shares."

"Yeah." Luo Ji smiled and nodded!

Xu Youyu then said: "Individuals or persons acting in concert must raise a sign if they invest more than 5% of a listed company, and it will be reported by the media. Boss, do you know?"

(End of this chapter)