"President Ma, you've put me under a lot of pressure. The higher-ups in our headquarters can't wait for me to kill you!" In Boss Jia's office in Fusang Daqian, Boss Jia laughed as he looked at Ma Huateng who was looking down at him.
"The chairman can't bear to kill me!" Ma Huateng laughed as well.
"Oh! Why can't I bear to kill you? You've made me lose 4 billion RMB! "Boss Jia squinted his eyes as he spoke.
"Boss, you'll understand once you look at the second month's report!" Ma Huateng handed the February report of Fusang Daqian Entertainment to Boss Jia.
The February report didn't refer to the February report. It was the report of the second month after the establishment of Fusang Daqian Entertainment.
Boss Jia looked at the report and was surprised to find that Fusang Daqian Entertainment had started to make a profit.
Of course, the profit referred to the income after excluding the 4 billion RMB in arrears.
This wasn't an easy thing to do. In fact, it was extremely difficult.
Because the expansion cost of Fusang Daqian Entertainment wasn't only reflected in the 4 billion RMB in arrears. More importantly, it was Fusang Daqian Entertainment's national distribution.
The reason why Fusang Daqian Entertainment was able to quickly occupy 4% of the country's households and achieve the amazing result of one million units was mainly because of the free VCD policy. However, it also had a lot to do with Fusang Daqian Entertainment's strong local promotion.
After all, no matter if it was a street promotion event, sending people to deliver VCD players, or the more tedious work of verifying the background information of the customers, it all required a lot of manpower.
Fusang Daqian Entertainment recruited one hundred thousand temporary workers within ten days. Almost all the temporary workers in Fusang were recruited. They barely managed to complete this feat in fifty days and delivered one hundred VCD players to one million households.
However, these 10,000 temporary workers would require a monthly salary of about 40,000 yen. In total, the monthly salary would be 400 million yen.
In addition, the 500 offline stores of Guangying Supermarket in the country had already opened, and all the CD burner production lines were running at full speed. More than 100 burners had been burned out, which brought about the super distribution of more than 100 million CDs in Fusang.
Although with the large-scale production of these discs, the cost of these discs has been reduced to 25 yuan per disc, but the total cost of these 100 million discs is still an astonishing 2.5 billion yen, equivalent to 100 million yuan.
In addition to some miscellaneous expenses, in addition to the 4 billion RMB payment, the cost of operating Fusang Daqian Entertainment for two months also reached an astonishing 4 billion yen, which was almost equivalent to the total annual sales of a medium-sized Fusang company.
Now, Fusang Daqian Entertainment was actually making profits. Doesn't that mean that in two months, Fusang Daqian Entertainment's income has exceeded 4 billion yen?!
Boss Jia started to read the entire report carefully. He found that it was actually true. In two months, Fusang Daqian Entertainment's income had reached 4.5 billion yen.
According to the detailed records in the report, among the one million VCD players, 300,000 of them were delivered to households in the first month. They had paid two installments of membership fees.
The other 700,000 VCD players were delivered in the second month. They had paid one installment of membership fees. This meant that the one million VCD players had brought in 2.6 billion yen of net profit.
In addition, on average, besides paying 2,000 yen for each VCD player, they had also spent an additional 1,450 yen on the discs to buy and rent the discs.
This meant that they had earned 1.9 billion yen. Adding the two together, they had earned 4.5 billion yen. Fusang Daqian Entertainment had started to make a solid profit.
"Now, our Daqian VCD player's name has spread throughout Fusang. Many Fusang families felt that the VCD players were too cheap, and it was almost like giving them away for free. So, many of them actively approached us, hoping to join us and become our members."
"According to the statistics, the number of pre-installed VCD players in March had reached 1.8 million. Now, I am only worried that the domestic VCD player production is not enough to meet our needs!"
"If all 1.8 million VCD players can be delivered, then our monthly membership fees will increase by 3.6 billion yen. Other than that, the income from the discs will increase by 2 billion yen. Our Fusang Daqian Entertainment's monthly net profit will exceed 10 billion yen, and we will become one of the top companies in Fusang!" Ma Huatou said proudly.
Indeed, if Fusang Daqian Entertainment could earn more than 10 billion yen a month, then their annual income will exceed 120 billion yen. Although Fusang could not be compared to Sony, Panasonic, etc., whose annual income was more than 2 trillion yen, Fusang could still become one of the top 100 companies in Fusang.
But in fact, Fusang Daqian Entertainment was already one of the top 100 companies in Fusang. After all, the Rocket Team's annual income was more than 1 billion USD, which was 112 billion yen.
Including the income from Dengeki Bunko, Yu-Gi-Oh Milk Tea, Crispy Noodle Snacks, etc., the total annual sales of all the companies under Fusang Daqian Entertainment was more than 300 billion yen.
If Fusang Daqian Entertainment could reach 120 billion yen a year, then Fusang Daqian Entertainment's total annual revenue would exceed 400 billion yen. It might even reach 500 billion yen. This was equivalent to 14 times Sony's revenue. This was indeed shocking.
In fact, as long as Da Qian Entertainment continued to sell VCD players, the amount of money that Da Qian Entertainment received would increase exponentially. If 10 million families in Japan were able to purchase VCD players, that would bring in 20 billion yen a month and 240 billion yen a year.
If these families could still maintain an average disc consumption of 1,500 yen at the same time, this number would break through the 400 billion yen level, and Fuso Daqian Entertainment Company would become an extremely terrifying giant!
The whole of Fusang had a population of 100 million. There were almost 20 million households. If VCD players were added into the mix, it would be like a VCR. If every Fusang household had a VCD player, then the annual revenue would be more than 800 billion yen.
Do you think this is the end?
Of course not. Our Boss Jia had not shown his talent in business!
"Let me give you 3 suggestions!" Boss Jia said. "First, we must monopolize the entire cultural industry. I heard that you had gone to Fusang's cultural enterprises to negotiate with them. You want to buy their copyrights, right?"
"Yes!" Ma Huatou nodded. He had realized that the real earning factor was not the membership fees. It was the profits from the monthly rental of VCD players.
Currently, there were only 100 million VCD players in the market, and the monthly revenue from each VCD player was 1,450 yen.
If Fusang Daqian Entertainment could take over all the cultural enterprises in Fusang and turn them into VCD players, then the 1,450 yen would become 14,500 yen. Then, Fusang Daqian Entertainment would overtake Sony and become the biggest enterprise in Fusang.
Boss Jia would also become the richest man in Fusang from Hua Xia. With these two positions combined, Boss Jia would become the richest man in Asia.
Therefore, Ma Huateng had been spending a lot of money recently to buy the copyrights of various Japanese programs, TV dramas, movies, and so on. This was also a disaster area that spent a lot of money. So far, Ma Huateng had spent more than 500 million yen in this area.
Also, this number was still increasing.
"Ma, do you think we have the ability to buy all the copyrights of Fusang just by buying them?" Boss Jia asked faintly.
"This … I'm afraid not …" Ma Huateng shook his head. The total annual output of Fusang's cultural industry was ten trillion yen. How could he buy all the copyrights of these things? He could only buy the copyrights of some cultural products that the audience liked.
"That's why we need to change our mindset. Why must we buy other people's copyrights? Can't we sell their copyrights? "Boss Jia patted Ma Huatou's shoulder and smiled.
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