A Returner’s Successful Investment Method - Chapter 605



Only Krnovel

Episode 605 Netplay (1)

I had coffee with Chairman Yoo Jae-ho.

It’s a coffee that I always enjoy, but it feels different when I drink it in the office of the chairman of Yuseong Group.

Chairman Yoo Jae-ho said while drinking coffee.

“Hwaan Energy’s acquisition of Daeho Shipbuilding was successful. “No one would have guessed that we would achieve such great results in such a short period of time.”

“That’s right.”

Who would have imagined that the Suez Canal blockage would suddenly occur?

“Did you guess?”

“Not at all.”

“I’ll keep it a secret, so just tell it to me. Did you by any chance order the captain to run aground?”

“… … yes?”

Chairman Yoo Jae-ho said with a smile.

“It was a joke.”

“… … .”

I never would have thought that the Chairman of Yuseong Group would use such sophisticated humor.

“Anyway, I’m really glad that things ended well for Hwaan Group. “Chairman Heo Seong-hoon must have had a good time.”

“It seems like that.”

In a way, it has solved the biggest worry of old age.

Seeing your two sons doing well will make you feel comfortable in your later years.

“Now that I’ve remembered, I guess I’ll have to visit sometime.”

“You two are close, right?”

“yes. “I sometimes contact you and ask for advice.”

Chaebol groups sometimes cooperate and compete with each other.

As a result, some groups have good relationships with their owners and some do not.

Yuseong Group and Hwaan Group are on good terms.

The reason is that when Chairman Heo Seong-hoon suddenly took over the group at a young age, the late Chairman Yoo Myung-hoon helped him in many ways.

Because of that connection, the two families seem to be still close to this day.

The fact that there is no overlap in business may also play a role.

In the first place, if you are in the overwhelming first place like Yuseong Group, there is no need to have a bad relationship with others. Because even if something happens that the other person doesn’t like, they will put up with it.

Chairman Yoo Jae-ho spoke as if reminiscing.

“President Heo Min-woong has also changed a lot since meeting Miru.”

Heo Min-woong has long been famous for being rude and arrogant.

Among them, there was a famous incident in which Chairman Yoo Jae-ho became extremely angry when he heard about the incident after he made a mockery of himself in front of Vice Chairman Kwon Hyuk-jun.

For reference, Vice Chairman Kwon Hyuk-jun is truly a living witness to the Korean semiconductor industry, having founded the Yusung Electronics semiconductor industry from scratch with the late Chairman Yoo Myung-hoon when he was in his 70s.

That person has now become a decent manager with strong support from shareholders.

I remembered the first time I met Heo Min-woong.

I thought we wouldn’t have much to see each other after the Thomas Motors incident… … It seems like he doesn’t know anything about people.

Destiny is so amazing.

“Yuseong Heavy Industries has also decided to participate in the development of hydrogen propulsion ships.”

“ah! “I heard the news.”

Yuseong Heavy Industries also benefits from the Suez Canal incident.

Stock prices also rose significantly.

“As a result of this incident, environmental regulations are being strengthened overall. “It’s not easy to get this right.”

Carbon neutrality is a global trend.

You don’t do it because you like it, you have to do it by force. Otherwise, you will face all kinds of disadvantages.

It’s not for nothing that companies are calling for eco-friendliness, replacing healthy plastic with paper, and increasing reuse.

We talked about work.

“Data center construction is proceeding as scheduled.”

“As expected, it’s Yusung Electronics.”

The reason why this speed is possible is because the semiconductors were self-procured.

I think it was a good choice to join hands with Yusung Electronics.

In the first round, Yusung Electronics Foundry was inferior to PSMC in price and yield.

However, price competitiveness was created thanks to the world’s first application of the NIL method to microprocessing.

Unfortunately, during the groundbreaking ceremony, the banner was unfolded upside down, causing shock and fear to everyone… … Contrary to concerns, the factory is running well.

The yield is still a bit low, but it will gradually improve.

Moreover, unlike in the first round, Yusung Electronics also secured many design capabilities.

Thanks to the acquisition of RD Quanet, it has emerged as a standout in the vehicle semiconductor field and is jointly developing vehicle semiconductors with Tisla.

Additionally, thanks to the acquisition of NP Semi, the performance of its own AP has been greatly improved.

It can be said that the seeds I sowed in the past are sprouting one by one.

If this level of foundation has been laid, Yusung Electronics will be able to continue its leadership in the semiconductor market going forward, unless it makes a big mistake.

Chairman Yoo Jae-ho next brought up the topic of politics.

“President Geum Yang-seop’s term has begun.”

Not long ago, Geum Yang-seop took over the presidency, and Namgoong-seok stepped down from the position.

“Do you think you’ll do well?”

I thought for a moment and then said.

“It would be best not to have high expectations.”

He wasn’t originally meant to be president, but this time he happened to become president.

It would be nice to do well, but… … If you look at the things he did when he was a member of the National Assembly, there is a high possibility that he will be caught in the act.

Still, I hope he is better than Lim Chang-sik.

* * *

After meeting Chairman Yoo Jae-ho, I slowly went to work at the company, and senior Dong-ho gave me some new news.

“I heard that Netplay CEO is visiting Korea.”

“For what reason?”

“The biggest reason is probably because of Seven Rounds Season 2.”

I chuckled.

“It looks like your body is quite hot.”

Senior Dongho nodded.

“You might be worried that it will move to another OTT. “He said he would come to the company.”

The reason is that the Korean branch of Continue Capital jointly owns the IP of Seven Round.

In order to provide exclusive services on Netplay, you must obtain our consent.

“As if missing out on the Seven Rounds was quite painful, I think we will also announce investment plans for Korean content this time.”

“How much?”

“It will be about $3 billion over five years.”

“Hmm, that’s quite an investment.”

In the past, production companies were dependent on broadcasters’ programming and investment.

No matter how well you make a drama, it’s useless if you can’t air it on TV. However, things have changed since the advent of OTT.

“Currently, the biggest player in the Korean content market is Netplay. “Everyone is standing in a long line to receive investment from Netplay.”

There are two main reasons.

First, receiving investment from Netplay guarantees a certain amount of profit.

Basically, drama and movie production is high risk, high return.

If it does well, it can earn several times the production cost, but if it fails, it incurs a huge loss.

For example, let’s say there is a movie that costs 10 billion won to produce.

Previously, various sources, including production companies, distributors, and broadcasters, invested and shared the profits. Conversely, even if a loss occurs, each person bears the loss.

On the other hand, Netplay invests all production costs and guarantees a certain amount of profit for the production company. From the production company’s perspective, at least they don’t have to worry about losing money.

Instead, the IP of the content so produced belongs to Netplay.

Not only is it exclusively serviced by Netplay, but season 2, secondary creation, spin-offs, etc. are also impossible without Netplay’s permission.

And secondly, it allows you to enter the global market right away.

In the past, one could go abroad only after achieving success in Korea. However, now you can reach viewers around the world just by servicing it on Netplay.

Of course, even if it succeeds, most of the profits go to Netplay.

After hearing this story, a good idea occurred to me.

“What if we also invest in content creation? “It’s like establishing a content investment company.”

Senior Dongho asked.

“How much should I invest?”

“Netplay said it was investing $3 billion, right?”

“huh.”

“Then we invest about $5 billion.”

* * *

Netplay’s beginnings date back to 1997.

1997 was the time when video was transitioning to DVD, and there were DVD rental stores in every neighborhood, and it was natural to rent them there.

The company that dominated this market was Megaburst. Megaburst was a huge franchise that operated DVD rental stores throughout the United States.

To counter this, Netplay launched an unconventional and innovative service at the time.

It is an online DVD rental service.

This way, Netplay does not need to open a store, and customers can receive the DVDs they want to watch at home with just a few clicks.

This service became very popular, and a subscription service was launched that allows users to rent unlimited DVDs they want to watch by paying a monthly fee.

We also launched a streaming service for subscribers to view some content, which received an explosive response.

Netplay, seeing the potential of the online streaming market, decided to focus on this and significantly increased investment.

And now it has grown into the world’s largest OTT platform, with 240 million viewers worldwide.

But it wasn’t without problems.

This is the emergence of a strong competitor.

Dazuni gathered its content and launched Dazuni Plus, and NPL launched NPL TV.

Even production companies and distributors are jumping into the action, waging a bloody war.

In order not to lose customers, they must continue to provide exclusive works that cannot be found on other OTTs.

CEO Rad Herrington could not hide his disappointment.

‘Why, I missed seven rounds!’

Seven Rounds is more valuable than any other content launched exclusively by Netplay so far.

A whopping 100 million people watched Seven Rounds.

This means that one out of two Netplay subscribers saw it.

Season 2 had to be prevented from moving to another OTT.

‘You should never go to Disney Plus!’

To do that, you need to show a lot of sincerity.

CEO Rad Herrington headed to Korea on a private plane.

As soon as he arrived in Korea, the place he headed to was none other than the Seven Round filming site.

* * *

[Netplay CEO Rad Herrington visits Korea! Korean content investment announcement!]

(strategy)

CEO Rad Herrington visited Korea.

The Seven Rounds are considered the biggest reason for this visit to Korea.

Seven Rounds is Netplay’s most successful drama and is estimated to be worth over $1 billion.

Due to the unexpected success of Seven Rounds in the global market, CEO Herrington even dressed up as the main character to promote it.

Currently, Seven Round is in the process of producing Season 2, and it is known that global OTT companies, including Netplay and Disney Plus, are courting the show.

CEO Herrington visited the Seven Round filming set right from the airport, greeted director Tak Dong-sik and actors such as Heo Ji-hoon and Jiyu and took pictures with them.

There were various reactions to this news.

-The CEO came all the way to Korea because of Seven Rounds?

-LOL Netplay looks like it’s going to be a bit of a mess.

-No, seven rounds is that much?

-then. It is the content with the most viewing time not only on Netplay but also on all OTTs.

-Well-made content is really important.

-Originally, it was almost going to be a Netplay exclusive, but the Korean branch of Continue Capital invested and protected the IP just before that.

-You did really well.

-Now, season 2 is worth it.

-It’s not exclusive to Netplay anyway, so wouldn’t it be okay to put it anywhere?

-What if I go to Seven Round Disney Plus exclusive? lol