"... After signing the contract, ESPN will obtain the exclusive broadcast rights of the NFL weekly league and the two Super Bowl final broadcast rights in 1998 and 2001 within the next eight years. It will be completely legal to record the NFL league games through video recorders, and we can publicly promote this right to users through TV channels," said ESPN President Steve Bernstein in the conference room after introducing the results of the negotiations with the National Football League, and then looked to the audience everyone.
Although he has already received Eric's support, he still has to convince other shareholders of Firefly according to Eric's request.
With the absolute controlling stake in his hands, although Eric can make decisions alone, he does not want to have too many differences with other shareholders of the company on these matters, which is not conducive to the stable development of Firefly.
Tom Murphy, who had just stepped down as the CEO of the TV department, had been looking down at the documents in his hand before. After Steve Bernstein finished his brief introduction, he raised his head and first asked: "Steve, ESPN already owns the company in the industry. Absolutely leading market share, and has become the preferred TV station for sports fans. So, do you think it is necessary for us to pay a premium of more than 50% and sign an eight-year high-risk contract to win the exclusive broadcasting rights of NFL games? "
Steve Bernstein replied: "Mr. Murphy, although ESPN's current market share is far ahead, it does not mean that we can sit back and relax. In recent years, competitors such as NBC, CBS and FOX have begun to increase. Investment in sports channels, even if ESPN has an absolute advantage, but if this situation continues, our market share will be gradually eroded by other TV networks and slowly lose this absolute advantage."
Tom Murphy still shook his head slightly, and said: "Steve, I haven't seen the relevant report. This sounds more like your personal speculation, and it's a bit too alarmist. The dominant position of a TV station in the industry is not that great. It's easy to break."
Steve Bernstein defended: "Mr. Murphy, I am not alarmist. There has been a very obvious example in recent years. We all know that since the birth of CNN in the 1980s, the status of CNN in the news channel industry has been comparable to that of CNN. ESPN has a very similar status to sports channels. However, in recent years, Fox News has come from behind. This news channel, which was established less than five years ago, has reached 50% of CNN's market share with the support of News Corporation's strong global media network. According to this growth rate, Fox News will be able to keep pace with CNN before 2000. ESPN’s industry status is actually easier to break, as long as other media groups have enough courage to continue to snatch our sports broadcasting rights at high prices , the decline of ESPN is completely predictable. Therefore, buying out the exclusive broadcast rights agreement for eight years at one time can cut off the possibility of other sports channels of the same type snatching broadcast resources, which can guarantee that in the next eight years, We no longer have to worry about being threatened by other competitors."
Warren Buffett also said at this time: "Steve, let's talk about the expected income. In your report, you mentioned that after winning the exclusive rights to broadcast NFL games, ESPN's average annual subscription share will increase by 20%. According to this growth rate, in less than five years, the average subscription price of ESPN users will exceed $2, which is already ten times the average subscription price of ordinary cable TV stations. Do you think the audience will accept it?"
"Mr. Buffett, this price increase is a long-term process, and we do not directly target subscribers, we cooperate with cable operators. On the other hand, ESPN negotiates with operators mainly based on ratings. , if we have the exclusive rights to broadcast events, viewers will have no other choice but to watch NFL sports events on ESPN. Then, with the increase of ESPN ratings, the increase in subscription share is inevitable, and operators have no other choice. choose."
Buffett nodded with a smile after listening, and glanced at another director outside the Firefly system, David West, President of State Street Global Fund, David West shrugged with a smile, and said: "After listening to Steve I have found no reason to object to this agreement."
Eric finally looked at Tom Murphy, and Tom Murphy nodded slightly. He has always been a conservative operator, but this time, although he still felt that this plan was too risky, he also realized that , compared to the possible gains, this risk is well worth it.
"Since this is the case, this plan has been confirmed in this way, and the company will notify you of the follow-up signing matters in time," Eric said, and then said: "Well, since everyone is here today, let's take this opportunity to discuss the future. Group financials for the third quarter, Caroline?"
Eric said, looking at Caroline Elliott, the chief financial officer of the group, Caroline Elliott nodded, and opened the documents prepared in front of him.
At the end of the morning meeting, Eric and Katzenberg invited Buffett to have lunch at the restaurant of the ABC headquarters. When they left, Buffett pulled Eric aside and said, "Eric, I have time next Thursday. ?"
Eric was a little puzzled. After thinking about it, next Thursday is November 2nd, and his schedule has not yet reached that day, so he nodded and said, "Of course, Warren, I will probably stay in New York until November 10th. Day, you know, after the Victoria's Secret show."
"It's like this, there will be a party at that time, some of my old friends, everyone wants to meet you, I wonder if you are interested?"
At the gathering of Buffett's old friends, Eric immediately thought of the well-known Graham disciple gathering in the investment world. The famous economist Benjamin Graham is honored as the "father of modern securities analysis", and his status is equivalent to the love of physics. Einstein, Buffett was once his student when he was teaching at Columbia University, and then Buffett personally organized the famous Graham Disciples Gathering, participating in this party is a group of top entrepreneurs, bankers and fund managers in the US investment industry .
With the continuous expansion of his personal industry, Eric knew that it was inevitable for his companies to intersect with these capital industry giants. Buffett would not invite outsiders to this kind of internal gathering at will. Since the invitation was sent to him, Eric would certainly not be so stupid as to refuse. Even if there will be no cooperation in the future, getting acquainted with these people is definitely beneficial and harmless.
After thinking about it, Eric said again: "Warren, can I bring my companion?"
Buffett smiled and said, "Of course it's no problem. This is not a very formal gathering. Everyone will bring their girlfriends."
Eric shook his head and said, "No, it's not a female companion. I mean, a good friend of mine, Chris Hansen, is now helping me manage Firefly Investment Company."
This kind of gathering of investment tycoons will not directly help Eric too much, but it will definitely allow Chris to gain unexpected network resources, so Eric quickly thought of him.
Buffett pondered for a while, nodded and said: "No problem, that is also a very outstanding young man."
With that said, Buffett took out the memo and quickly wrote down an address, handed it to Eric, and said, "Next Thursday, seven o'clock in the evening."
Eric took it over and put it away, nodded and said: "Of course, we will be there on time."
After sending Buffett and others to the car and leaving, Eric and Katzenberg returned to the ABC headquarters building together.
After staying in Manhattan for another two days, on October 31, the day before Halloween, Eric rushed back to Hampton on time.
East Hampton is basically a resort town. After summer and autumn, most people will return to Manhattan and other places of residence. Women and children also moved to densely populated Southampton again before Halloween, although the manor here is more expensive than East Hampton. It is much smaller, but it has many permanent neighbors, and it will be very lively during the festival.
The car drove into the manor, Eric got out of the car and walked into the villa, the twins who were sitting on the sofa in the living room watching TV got up and greeted them, it seems that Drew has also come to New York, MGM's stock issuance is scheduled for December 9th Frank Macasso, the president of MGM, basically stayed in New York during this time. The girl just came here today. Apart from spending Halloween together, it should also have something to do with this incident.
With the help of the twins, Eric took off the windbreaker. Looking at the two women, Eric asked, "Why is it so deserted, where is Drew, and who else?"
"The boss and Ms. Pakula are out shopping, and Ms. Madsen is upstairs with the young lady and the young master."
"Oh, then you guys continue watching TV," Eric said, changed his shoes again, and walked upstairs.
The door of a living room facing the sun on the second floor was open. Eric walked in and saw Virginia sitting with her back to him, as if she was holding a book and reading something, surrounded by three little guys.
Walked over with a smile, put his arms around Virginia and kissed the woman softly.
"Ah, you scared the hell out of me," Virginia said, laughing, as she slapped Eric.
Eric lay on the arm of the sofa, looking at the book in Virginia's hand: "What are you reading?"
Virginia gestured to Eric for the cover, which was still an Encyclopedia Britannica.
Eric shook his head and looked at the three little guys. Hawaii is the closest to Virginia, with beautiful eyes shining brightly, as if waiting for Virginia to continue reading, while the other two looked sleepy. Emma looked at Eric as if asking for help, her big eyes were watery, as if she was about to cry at any moment.
"Don't you want to hear it? Come, Dad will take you to play," Eric stretched out his hand towards the three little guys. There was no movement in Hawaii, but Emma and Kevin jumped up cheering.
Virginia was unwilling, and grabbed Eric: "Hey, you take Emma to play, Kevin stays, I have only read three pages."
Eric was helpless: "Do you think my son can understand?"
Virginia still didn't let go: "But Xia Xia can read it by herself, and Kevin can't fall too far behind."
"Don't torment your child. What can a two-year-old kid understand? You still expect Kevin to go to Harvard at the age of three."
"But Xia Xia can read it by herself," Virginia muttered again, with some grievances in her eyes for a moment, she looked at Eric with hatred: "You are partial, Xia Xia is so smart."
Eric was even more helpless: "It's too unreasonable, is the IQ of the little guy under my control?"
"Anyway, it's your partiality!" Virginia's tone became even more aggrieved, she threw the "Encyclopedia Britannica" in her hand at Eric's feet, turned her back to Eric, and huddled on the sofa. (To be continued.)