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The negotiations went extremely smoothly, or Philip's representative, Mr. Thomas, was confused by Fengyu Company's "strong" strength and made considerable concessions.
In terms of brand, Philip is indeed stronger. In the professional field, Philip is also stronger than Fengyu Company, stronger than Fengyu Electronics and Fengyu Electric together.
But Feng Yu made it very clear that by cooperating with Fengyu Company, we can jointly develop so many world-changing products, whether they are current VCDs, super VCDs, future DVDs and computer optical drives, or even sweeping robots, light wave microwave ovens, etc. Each product can bring huge profits to Philips.
It was these profits that made Thomas and Philip agree to Feng Yu's conditions. Comprehensive cooperation to jointly formulate industry standards, promote the popularization of VCD and DVD, and promote the popularization of other new home appliances.
Fengyu Electronics and Fengyu Electric will disclose these technologies to Philips for free, and Philip will also open their optical disc technology, TV technology, LCD technology, optical communication technology, etc. to Fengyu Electronics and Fengyu Electric for free. Both parties engage in technology exchange.
The patent originally held by the company will continue to be held by that company, but the other party can use it free of charge. And new patents on related technologies will continue to be held by the company.
Feng Yu's exchange of VCD patented technology to Philips was also a matter of careful consideration. Feng Yu has been wondering why the development of VCD in this life is not as fast as in the previous life. There is only one reason, that is, there are only two brands of Fengyu VCD and Aihua VCD on the market, and they are all his.
Whether it is sales channels or publicity channels, they are far from being comparable to the cooperation of so many companies in the previous life to develop the market. In the previous life, most companies in the island country jointly held the patented technology of VCD. They were the first to discover that Wan Yan had not registered a patent. And registered the patent first.
As a result, all Chinese VCD brands later had to pay patent fees to them. And they rely on this money to continue to develop better technologies and lead the industry.
The patent in this life is in Feng Yu's hands. Island companies simply cannot get involved. The development speed of VCD is far less rapid than in previous generations. However, history is still the same as in previous lives. All interested companies have set their sights on DVD and want to replace it.
DVD can indeed replace VCD. Both in terms of technology and user experience, it far surpasses VCD, but unfortunately, although they have speeded up, the latest technology of DVD was still pioneered by Fengyu Electronics.
However, Feng Yu also knows that if Sony and other companies become aggressive and increase investment in research, Fengyu Electronics and AIWA will definitely not be able to maintain their lead with the strength of the company.
Just like the gaming industry. Nintendo got rid of Sony, but after Sony became ruthless, it took two years to develop the PS game console, which eventually took away most of the market profits!
Although AIWA suppressed Sony in the field of Walkman, it was because Sony's current focus was on film companies. That was their largest investment in the 1990s, and it was an overseas investment, so there was no room for failure.
Once studios start making money, they can spare their time and energy. Continue to suppress AIWA. However, Feng Yu is not particularly worried about this. After Columbia Pictures starts to make profits, the Walkman will also withdraw from the stage of history. If Sony wants to grab it at that time. Just leave it to him.
But now, Sony has joined forces with Dongzhi to formulate DVD industry standards. They have discovered that this DVD is better than VCD and will eventually replace traditional cassette recorders. And this is also what their film company needs. With this, their movie copyrights can be burned into discs and sold again.
Colombia has a huge number of film copyrights. If it can launch very easy-to-use optical discs and optical disc recorders, it can also become a new profit growth point for Columbia Pictures, saving the film company in disguise.
Therefore, Sony's investment in DVD will definitely be very large. Feng Yu knows that if he really has to carry it to his death, he will not be unable to carry it. He can just continue to inject capital into AIWA and Fengyu Electronics, but it is very uneconomical.
After cooperating with Philips, there are many benefits. Especially in this agreement, there is another point that allows the other party to OEM a batch of products.
AIWA only has a factory in London in Europe, and it mainly produces Walkmans. That factory has to cover the entire Western European market and cannot produce VCDs at all. AIWA brand VCDs and Aihua brand VCDs are both produced in Chinese factories, including Fengyu The same goes for VCDs. When shipped to Europe and America for sale, the price will be higher.
The manufacturers of video recorders have lowered the prices of video recorders to compete with VCDs. Especially those manufacturers who have joined forces have greatly affected the promotion of VCD in Europe and the United States.
Feng Yu had to admit that the influence of those large companies was too great, making the overseas promotion of VCD difficult. Although the profit was pretty good, it was still far from the feeling of sweeping the world that Feng Yu imagined.
The VCD market was so prosperous in the previous life. The annual output value of the industry was astronomical. Now this industry is monopolized by Feng Yu and the output value has not been rising. How can Feng Yu not be anxious.
But now it's better. With the addition of Philips, Philips' home appliance sales channels in Europe and America will definitely make the VCD industry improve faster. And Thomas and Feng Yu have the same idea, which is to directly launch super VCD instead of old-fashioned VCD. This can widen the gap between VCD and traditional video recorders and make it easier to crush them!
Moreover, Feng Yu only licensed it to Philips. With the new technology, can the VCD technology be licensed to more companies? We will cooperate to develop this market, but the largest share belongs to Fengyu Electronics.
However, the benefits of industry standards are in the future, and the benefits of producing super VCD will be effective immediately. Thomas also accepted Feng Yu’s OEM requirements on behalf of Philips, which can effectively reduce the cost of Fengyu VCD, Aihua VCD and AIWA brands. The cost of VCD reduces the time for launching new products and can better cater to the market.
Feng Yu mainly promotes Fengyu VCD and Aihua VCD in China, while abroad he mainly promotes Fengyu VCD and AIWA brand VCD. The Aiwa brand is only for the Southeast Asian market, or only for the Chinese market.
Of course, Philips will not suffer. Not to mention the current super VCD technology, the profits of DVDs and other electrical appliances in the future will bring great changes to Philips.
With more profits, they can even increase research and development in medical supplies, allowing Philips to overshadow Siemens!
When he learned that Feng Yu also owned an Aihua pager, Philip felt that we could also cooperate in depth in the field of communications, such as jointly developing mobile phones. Mobile phones will definitely replace pagers in the future. This is a fact that everyone recognizes. .
However, Philip believes that this time will take more than ten years, but Feng Yu believes that within three years, pagers will become a sunset industry and then decline rapidly. Within five years, mobile phones will replace pagers and become the dominant player in the mobile communications market!
Feng Yu's argument made Thomas feel a bit radical, so he made a bet with Feng Yu. If pagers really started to decline in three years, he would be able to see that in five years, mobile phones would replace pagers. trend, so willing to agree to Feng Yu on one condition!
After the agreement was signed, Thomas quickly returned to the Netherlands. Time is now very tight and the DVD industry label competition is about to begin!
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