Chapter 82: LD Discs and KTV

Setting up an LD disc production factory was Chen Mo's decision after careful consideration.

Now the technology of LD laser discs is already mature abroad, and the supporting industry is also well developed.

It's just that it hasn't yet been accepted by the people of Gangdao.

Currently, the way people in Gangdao watch movies is either going to the cinema or renting videotapes.

Basically no one uses LD laser discs.

First, the price of disc players is high; even the cheapest model costs over three thousand, and the expensive ones can sell for tens of thousands, so ordinary families won't buy them.

Moreover, the price of laser discs for recording movies is not cheap either; each disc costs several hundred.

Compared to renting a videotape for just a dozen or so dollars a day, spending several hundred to buy an LD disc is simply being a sucker.

Watching movies with LD discs is generally exclusive to wealthy families pursuing high picture quality.

But what Chen Mo wants to do is not movie LD discs.

Chen Mo plans to use it to record songs.

Chen Mo intends to set up karaoke.

Karaoke is already all the rage in Yinghuaguo, but there are hardly any in Gangdao.

Aside from some Japanese-style bars and high-end hotels, you basically can't see any karaoke elsewhere.

One reason is that the equipment cost is relatively high.

But the main reason is that current karaoke can only sing Yinghuaguo songs.

According to the development trajectory from my previous life, it will be several years before LD discs recording Gangdao songs appear, and only then will karaoke enter a phase of rapid development.

Now, Chen Mo intends to advance this process.

Moreover, Chen Mo plans to directly achieve it in one step, setting up a private-room KTV.

First, he'll use his own Yinhejiuba as a trial.

Now the second floor of Yinhejiuba is all private rooms; converting them into KTV rooms is very simple.

Chen Mo's system, for once being thoughtful, directly gave him a floppy disk containing all the technical data.

Chen Mo inserted the floppy into the computer and slowly browsed through it.

Although he had already seen it once in the system, he still felt more at ease looking at it on the computer.

Two days later, Chen Mo summoned Jimi to his office.

"Jimi, how's business these days?"

Jimi, face full of excitement: "Mo Ge, the sneaker business is even better than I expected.

But now our garment factory and sneaker factory's production capacity is a bit insufficient; should we expand the workshop and increase capacity?"

"No need, just maintain the current output. Getting bigger would only cause trouble."

Chen Mo shook his head and rejected the proposal.

Chen Mo didn't plan to monopolize the entire Gangdao A-goods market.

Now many triads and businessmen have seen the profit in high-end A-goods, and they believe they'll soon enter the fray to compete with Chen Mo for the market.

By then, with more competition, profits will drop.

The A-goods business is ultimately not a long-term plan; investing too much now risks becoming top-heavy.

"Come take a look at this." Chen Mo got up and gave his seat to Jimi.

What's currently displayed on the computer is precisely the production technical data for LD discs.

Jimi walked over to Chen Mo's seat, puzzled, didn't sit down, just bent over, scrolling the mouse, looking at the data on the computer.

Chen Mo left the desk, sat on the sofa, and brewed himself a pot of tea.

Half an hour later, Jimi finally finished reading the materials, then walked up to Chen Mo.

"Mo Ge, those are......"

The system's data is very detailed, covering equipment and raw material requirements, production techniques, procedures, and so on—everything you could need.

Even Jimi, a layman, can understand it clearly.

But Jimi couldn't figure out why Chen Mo gave him those materials to look at.

At least, for now he doesn't see any business opportunity in them.

Chen Mo raised his hand to greet Jimi to sit down.

Although Jimi is skilled at business, he ultimately can't see through the whole society's development.

"Do you know about the karaoke in those Japanese-style bars?"

"I know; a few of our suppliers have invited me over. But that thing isn't popular in our Gangdao."

"The LD disc you just looked at is used for that. You say if we produce discs recording Gangdao songs, will karaoke take off?"

After hearing Chen Mo's words, Jimi thought for a moment, then his eyes lit up instantly.

Jimi is very smart; combining his own reasons for disliking karaoke, he immediately spotted the business opportunity.

"It'll catch on, and big time. This is a new form of entertainment different from bars and nightclubs."

The emergence of a new form of entertainment will definitely carve out a large share of profit from the existing entertainment methods.

The wealth hidden within is astonishing.

However, after the brief excitement, Jimi frowned.

"Mo Ge, the production cost of karaoke machines is not low, and the production cost of LD discs is not cheap either.

Even if we have the production technology, we don't have that much money to start a factory!"

A karaoke equipment electronics factory, plus a disc production factory, plus the equipment for recording discs, all added together, the initial investment is at least over a hundred million.

Where would they get that much money?

Chen Mo shook his head: "You're wrong. I plan to import the karaoke equipment directly from Yinghuaguo.

Currently, the total number of bars and nightclubs on Hong Kong Island is just over a thousand, and even fewer venues can be renovated to install karaoke equipment.

I estimate that the Hong Kong Island market can absorb only a few thousand units, and even adding the Macau market, it would not exceed ten thousand units.

"We don't need to open a factory just for this small market.

"We just need to open a production factory for LD laser discs and a duplication factory."

Jimi did some mental calculations and found that Chen Mo's plan was indeed more suitable.

Currently, the price of a laser disc with duplicated movies on the market ranges from 200 to 500 Hong Kong dollars, but besides production and duplication costs, it also includes the film's copyright fees and the profits of various contractors and distributors.

If it's a duplicated disc of Hong Kong Island songs, no copyright fee is needed, so production cost can be kept at 40 to 50 per disc; even selling at 100 per disc yields a profit of double.

Most importantly, the lifespan of LD laser discs is not long; they are consumables.

This factory can operate continuously without worrying about market saturation.

However, the required investment is still considerable.

"Even so, the money in our accounts is not enough.

Chen Mo showed no worry on his face: "The money problem, I'll solve it.

"I plan to send you on a trip to Yinghuaguo to settle the issue of importing equipment. Besides, we'll also settle the equipment and technical personnel needed for the LD disc production factory. Can you do it?

Jimi's face showed apprehension.

Although he had managed Chen Mo's two factories well, he was still a young person who had just not yet entered the market.

Chen Mo suddenly entrusted him with such an important task, and he still felt a bit panicked inside.

But he also knew that the future of those two counterfeit goods factories was limited.

But once he accomplishes this, his status with Chen Mo and his own abilities will see a great increase.

He really does not want to give up this opportunity.

After some psychological preparation, Jimi gritted his teeth and agreed.

"Mo Ge, I will definitely get this done!"