Chapter 579 Wangfu
August has arrived.

After spending a month together, Zhou Haoran and Aunt Nuan's relationship became increasingly intimate. Every time they were together, they wished they could stay together forever.

Their relationship has been confirmed.

Next, it's time to bring it home and make its official debut.

Everything else is easy to say.

The only thing that made Aunt Nuan uneasy was that she didn't know how to face her younger sister.

"What's there to be embarrassed about? Leave it to me!"

Zhou Haoran felt no pressure.

They took everything for granted.

Aunt Nuan is having difficulties; she lives alone and life is tough. As a neighbor in the alley, is it wrong for him to take her in and care for her? Just like when he took Aunt Wan in.

It's only natural!

As for Keff's argument...

That would be utter nonsense.

Over the past month, with Aunt Nuan's companionship, Zhou Haoran felt that his career had not only not been hindered, but had developed rapidly and efficiently, with all aspects of his performance making great strides.

She's definitely a lucky charm for her husband!
First, the business of taking over unfinished buildings is nearing its end.

Next comes construction.

all the best.

Second, the funds sent south to rescue the market have been almost entirely received after more than a month of operation.

Once the money arrives, we can head south to the Hong Kong government.

We will set off soon.

Third, the trademark website is now on the right track.

The number of B-end users has exceeded 500, and the daily active users of the C-end have steadily increased to 2 under Zhou Haoran's unconventional management.

The first round of financing is about to begin.

Fourth, Zhongbo Software has received a major piece of good news.

With the promotion of smart cards, the industry's largest customer—relevant departments in the transportation sector—has finally been attracted to the attention of the industry.

Relevant leaders have established a working group and are holding talks with Zhongbo Software.

There are plans to promote a unified transportation smart card for the seaport!

This is a super big project.

The order size is in the billions!

Fifth, the VCD business of "My Fair Princess" developed exceptionally smoothly.

Zhou Haoran originally said that it would be enough to partner with three VCD manufacturers.

Once Dongfanglang obtained the "United Nations certification," it became unstoppable, signing contracts with Wanyan, Aido, Xinke, Xianke, Bubugao, and Wanlida.

The price per set is 50 yuan.

With the six companies joining forces, total sales for VCD players are expected to reach 800-900 million units in the second half of the year!
Based on the bundled sale of 800 million VCD players.

The copyright for each set of "Princess Pearl" DVDs costs 15 yuan, and Tangren Media can earn 1.2 million yuan!

Haoqi Sunshine Trading Company purchases the goods at a factory price of 35 yuan and distributes them to these VCD manufacturers at a price of 50 yuan, making a profit of 15 yuan and 1.2 million yuan.

This money was so easy to make!

Making money is not enough.

They still need to gain power.

If Tangren Media wants to conduct film and television business in the harbor area, it cannot bypass Red Star Media and must deepen cooperation through various means.

The deeper the cooperation, the more solid Tangren Media's foundation becomes.

Zhou Haoran, in his capacity as "Chairman's Assistant," attended a Party office meeting of Red Star Media and reported on the entire operation of the "Princess Pearl" DVD series.

"The copyright of 'Princess Pearl' is held by Tangren Media, but fortunately, through my efforts, the distribution rights for the VCD discs were retained by Red Star Film Company. This single deal is enough to earn the film company more money than the total revenue of the past two or three years!"

Zhou Haoran stunned all the leaders present with just one sentence.

This also prevents some people with grievances from speaking out.

"However, I am adopting a new sales model and choosing new partners. Inevitably, there will be some resistance in this process. There are some things that you leaders may already know, and some people are dissatisfied with my change of partners."

Zhou Haoran did not name names.

Shan Wendong gave him strong support, saying firmly, "As long as the performance is good and it can generate revenue for the country, even if it offends a few people who are hindering reform, we are willing to pay the price!"

Another leader surnamed Zhang also expressed his support, saying, "I heard that Du Yunliang, Tao Bin, and others from the video company are currently under investigation by the investigation team. If they have grievances due to their questionable conduct, it's even more important to treat them objectively. Everything must prioritize the interests of the group!"

Zhou Haoran nodded. "As I mentioned in my report, based on Du Yunliang's past operating model, the official sales of 'My Fair Princess' would only be around 100 million copies, with a net profit of about 2000 million. This completely fails to live up to the market positioning of 'My Fair Princess' as a nationally popular drama."

Holding the report in his hand, Shan Wendong asked, "Can your new model really sell 1000 million units?"

"This is the minimum guarantee!"

Zhou Haoran sat at the end of the table. He wasn't qualified to attend this kind of meeting; he was just an observer. But even so, he became the brightest star in the meeting room.

"it is good!"

Shan Wendong felt that he was really doing a great job, managing "Princess Pearl" well on all fronts, even surpassing the national hit drama "Water Margin" on Crown TV.

It doesn't matter if it's money or not.

No matter how much money you earn, it's still the country's money.

For him, this was a major political achievement.

Zhou Haoran said, "However, under the new model, it may lead to a decline in profit margins. With sales of 1000 million, the group's net profit may only be 1 million."

"I believe no one would be dissatisfied with such a report card, right?"

Shan Wendong looked around.

He knew that Du Yunliang also had powerful backers. Some people were dissatisfied with Zhou Haoran for stripping Du Yunliang of his power in the film company, and even changed the operating model, which led to a significant reduction in the income of some of their relatives and associates.

But now that Zhou Haoran's report card is out, who dares to object?

"Comrade Haoran, I will fully support your reforms at the film company!"

The leader surnamed Zhang appears to be an ally of Shan Wendong, being the first to express his support.

"Any potential resistance, if necessary, can be swept away!"

Another female leader also made a statement.

"The concept of a video company is outdated. It's not even called that in the industry anymore; everyone calls it an 'audio-visual company.' We're backward from the very beginning, and we absolutely have to change."

"Yes, we need to push for reform."

"Haoran, just go for it! I support you!"

For a moment, the opinion in the conference room was unanimously in favor of the other side.

They all sided with Zhou Haoran.

After all, their performance was just too impressive.

Zhou Haoran received full support.

Next, we can seize the opportunity to strike hard against those who obstruct reform, such as Du Yunliang and Tao Bin.

The biggest change in the so-called reform was the authorization of Haoqi Sunshine Trading Company as a primary distributor of VCD discs produced by Red Star Imaging. This was a huge piece of meat.

State-owned companies like Red Star Imaging have extremely complex distribution models.

Take "My Fair Princess" for example.

The production cost of this set of discs is 15 yuan, the royalty is 15 yuan, and the factory price is 35 yuan.

This means that the manufacturer makes a profit of 5 yuan for every DVD set produced.

Only one-third of the copyright holder's share.

This is too little.

Is it not going to end up working for Tangren Media?

Therefore, there is a second mechanism: monopolistic sales.

Red Star Imaging has both production and sales operations. Red Star Imaging's sales company purchases goods from the manufacturer for 35 yuan and then sells them to secondary distributors for 50 yuan.

In this way, Red Star Image retained another 15 yuan in profit.

Some people with strong connections can get goods from the manufacturer for 35 yuan and then do wholesale business... These people with connections can make a lot of money.

In addition, all the secondary distributors are also connected to the network. They buy the goods for 50 yuan and then sell them to the tertiary distributors for 60 yuan.

Only after three levels of distribution can one truly face the market.

It's like Moutai liquor.

The process from transferring from Moutai Co., Ltd. to Moutai Group, and then to Moutai Sales, through primary distributors, secondary distributors, and tertiary distributors, is the same. The ex-factory price is not high, but by the time it is actually launched on the market, it is already astronomically expensive.

A set of "Princess Pearl" DVDs costs 108 yuan, which means that if an ordinary user buys it in the market, the most expensive price is 108 yuan and the cheapest price is 60 yuan.

Zhou Haoran used Dongfanglang to contact major VCD manufacturers and then directly bundled them for sale.

This model is a typical example of the internet concept.

Eliminate those irrelevant middlemen.

Except for Haoqi and Yangguang.

Dongfang Lang, representing Haoqi Sunshine, bought goods from the manufacturer for 35 yuan and then sold them to VCD manufacturers for 50 yuan... This is equivalent to Zhou Haoran's reform directly eliminating all the relatives and cronies of the relevant leaders in the past!

Aside from the first-tier distributors who retained their state-owned status, there was only one major client with connections – Haoqi Sunshine Trading Company.

This will naturally encounter resistance to reform.

Fortunately, the results were outstanding.

Before the reform, only 100 million units could be sold; after the reform, a minimum of 1000 million units could be sold... This sacrificed the interests of those with connections, greatly increasing the group's profits.

Who dares to object?

As a staunch reformer, Shan Wendong became Zhou Haoran's biggest backer in reforming the film company and exercising his power.

With this authorization, we can then use "Princess Pearl" as a case study to promote it comprehensively.

Haoqi Sunshine Trading Company became the largest agent.

This is no way.

Only Dongfang Lang was able to leverage the UN certification from the trademark website to secure deals with VCD manufacturers and establish a long-term cooperative model that bundled "DVD player + DVD" sales.

Even if someone else did it, it wouldn't work.

……

Du Yunliang operated the "Princess Pearl" DVD business with a serious and meticulous attitude, and did a very good job of preventing theft.

In the past, pirated discs would be sold before the official version was even released.

The investigation team's deterrent effect was very strong.

There are currently no pirated versions of "My Fair Princess".

Zhou Haoran was very happy and went to the film company to praise him: "Old Du, you did a great job this time! It's all thanks to you. Without your overall command, the production and anti-piracy measures for 'Princess Pearl' might not have been so good."

"Zhou Tai, you're too kind. It's all I should do!"

Du Yunliang smiled broadly, and his mood lightened considerably.

Zhou Haoran said, "Old Du, you still need to keep an eye on the factory. First, continue to strictly supervise it to prevent the legitimate source from leaking out. Second, you need to speed up production while ensuring quality and quantity. The order volume is huge, and we can't afford to be unable to supply the goods."

"I know, I've thought it all through. I'll be sleeping at the factory for the next two months!"

Du Yunliang demonstrated excellent teamwork.

Zhou Haoran thanked him, saying, "That would be too much trouble for you."

"Of course!" Du Yunliang breathed a sigh of relief, and asked casually, "Director Zhou, when will the investigation team withdraw? If they're always in the company, it'll create anxiety and affect everyone's work."

Zhou Haoran asked in surprise, "Are the investigation team members still around?"

"Yes, I'm here. I've always been here." Du Yunliang sighed, looking very troubled. "This makes it very difficult to carry out work plans within the company."

Zhou Haoran said in a deep voice, "It has affected normal work, which is unacceptable! It's okay, I'll talk to the leaders later. Even if we can't withdraw the investigation team, we should reduce the team's activities and minimize interference with daily work."

"that would be great!"

Du Yunliang breathed a long sigh of relief.

The huge weight that had been hanging over my heart finally lifted.

Now I feel relieved.

We're finally out of this mess!

Now that we've gotten through this ordeal, the next thing to consider is the potential benefits.

Du Yunliang tentatively said, "Zhou Tai, there's something I'd like to ask you for help with."

Zhou Haoran laughed and said, "Sure, as long as I can do it."

Du Yunliang paused to speak, then said, "There's a Mr. Liu who has been a partner of our video company for many years, doing DVD distribution and wholesale. However, he failed in his real estate investment and is now in debt for several million. We hope he can continue to work with us, which would be a way to help him out."

"sure!"

Zhou Haoran agreed without even thinking about it.

Du Yunliang was pleasantly surprised, "Then let him continue with the distribution?"

"Since we've been partners for so many years, there's no reason to shut us down without cause." Zhou Haoran spoke righteously, seemingly always on the side of truth. "Reform isn't about negating the past, but about further market expansion based on the past model. Past partnerships can be retained. Adding Haoqi Sunshine as a first-tier distributor is simply an expansion of the reform, not a negation of the past!"

"that would be great!"

Du Yunliang was truly relieved, and an excited smile appeared on his face.

came back.

Everything is back!
Transferred!
Little did he know, Zhou Haoran was already sneering inwardly.

The traditional model was a distribution-wholesale-retail model, where end consumers had to buy VCD discs at high retail prices.

How many people would actually buy this?
Things are different now; consumers no longer need to buy them, VCD manufacturers are giving them away for free!
Once this new model emerges, the vast majority of DVD sales will be distributed through this channel... Even if the old model isn't abolished, how much of it will remain?
With the introduction of the free model, the old paid model is bound to collapse completely.

The market has changed dramatically.

In the next few years, Zhou Haoran intends to bring in several popular TV dramas for Red Star TV.

We can't work for free.

With the cooperation of copyright holder Tangren Media, distributor Haoqi Sunshine and Red Star Pictures, they can at least make a lot of money in the DVD market.

Therefore, it is essential for Red Star Media to keep Red Star Image Company under its control.

(End of this chapter)

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