Hong Kong variety show: The tycoon who emerged from Portland Street

Setting up an LD disc production factory was a decision Chen Mo made after careful consideration.

The technology for LD laser discs is already very mature overseas, and the supporting industries are also well-developed.

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

Currently, the only ways for people on Hong Kong Island to watch movies, besides going to the cinema, are by renting videotapes.

Almost no one uses LD laser discs.

Firstly, DVD players are expensive, with the cheapest model costing over three thousand yuan and the most expensive models selling for tens of thousands of yuan, which is beyond the reach of most families.

In addition, LD laser discs for burning movies are not cheap, costing several hundred yuan each.

Compared to renting a videotape for just over ten yuan a day, spending hundreds of yuan to buy an LD disc is simply a waste of money.

Watching movies on LD discs is generally the exclusive domain of wealthy families who pursue high-definition viewing.

However, what Chen Mo wanted to make was not the LD disc of the movie.

Chen Mo plans to use it to burn songs.

Chen Mo plans to open a karaoke bar.

Karaoke is now very popular in Japan, but it's still quite rare in Hong Kong.

Apart from some Japanese-style bars and high-end hotels, karaoke is practically nowhere to be seen.

One reason is that the cost of the equipment is too high.

But the main reason is that karaoke nowadays can only sing songs from Japan.

According to the development trajectory of the previous life, it would be several years before LD discs containing Hong Kong songs appeared, and only then would karaoke enter a period of rapid development.

Now, Chen Mo plans to bring this process forward.

Moreover, Chen Mo plans to go straight to the point and create a private karaoke room.

Let's start by using our own Galaxy Bar as a demonstration.

The second floor of Galaxy Bar is currently filled with private rooms, which could easily be converted into KTV rooms.

For once, Chen Mo's system was unusually considerate, directly giving him a floppy disk containing all the technical data.

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

Although I had already checked it in the system, I still checked it on the computer to be on the safe side.

Two days later, Chen Mo called Jimmy to his office.

"Jimmy, how's business these days?"

Jimmy exclaimed excitedly, "Brother Mo, the sneaker business is doing even better than I expected."

However, our garment and sneaker factories are currently operating at a slower capacity. Should we expand our workshops to increase production capacity?

"No need, just maintain the current production level. Going any bigger would only cause problems."

Chen Mo shook his head and rejected the suggestion.

Chen Mo had no intention of monopolizing the entire counterfeit market on Hong Kong Island.

Many organizations and businessmen have already seen the profits in high-end counterfeit goods, and I believe they will soon enter the market to compete with Chen Mo for market share.

Increased competition will lead to decreased profits.

The counterfeit goods business is not a long-term solution. Investing too much now could easily lead to unwieldy operations.

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

The computer screen is currently displaying technical data on the production of LD discs.

Jimmy walked to Chen Mo's seat with a puzzled look, but instead of sitting down, he bent over, scrolled the mouse, and looked at the information on the computer.

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

Half an hour later, Jimmy finally finished reading the information and then walked up to Chen Mo.

"Brother Mo, those are...?"

The system provides very detailed information, including equipment and raw material requirements, production processes, procedures, and more.

Even Jimmy, a layman, can understand it.

But Jimmy couldn't understand why Chen Mo had shown him those documents.

At least for now, he doesn't see any business opportunities in it.

Chen Mo gestured for Jimmy to sit down.

Although Jimmy is a shrewd businessman, he ultimately fails to see through the development of society as a whole.

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

"I know, some of our suppliers have invited me over. But that stuff isn't popular in Hong Kong."

"The LD discs you just saw are used for that. Do you think karaoke would become popular if we produced discs that burned Hong Kong songs?"

Jimmy listened to Chen Mo's words, thought for a moment, and then his eyes lit up instantly.

Jimmy was clever; combining his own dislike for karaoke with his own observations, he immediately saw a business opportunity.

"It's going to be a hit, a huge hit. It's a new form of entertainment, unlike bars and nightclubs."

The emergence of a new form of entertainment will inevitably carve out a large portion of the profits from the original forms of entertainment.

The wealth contained within is astonishing.

However, after a brief moment of excitement, Jimmy frowned.

"Brother Mo, 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 enough money to open a factory!

An electronics factory that produces karaoke equipment, plus a disc manufacturing factory, plus disc burning equipment, all these miscellaneous items would require an initial investment of at least hundreds of millions.

Where did they get so much money?

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

Currently, there are only about a thousand bars and nightclubs on the entire Hong Kong Island, and even fewer venues that can be converted to install karaoke equipment.

I estimate that the entire Hong Kong Island market can only absorb a few thousand units, and even including the Macau market, it won't exceed ten thousand units at most.

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

"All we need is one LD laser disc manufacturing plant and one burning plant."

Jimmy considered it for a moment and realized that Chen Mo's plan was indeed more suitable.

Currently, the price of a laser disc containing a movie on the market ranges from HK$200 to HK$500. However, this price includes not only production and burning costs, but also the film's copyright fees and the profits of contractors and distributors at various levels.

If you're burning songs from Hong Kong Island, you don't need to pay copyright fees, and the production cost can be controlled at 40 to 50 per piece. Even if you sell them at 100 yuan per piece, you'll still make a profit of 100%.

Most importantly, LD laser discs have a short lifespan and are considered consumables.

This factory can continue operating indefinitely without worrying about market saturation.

However, this still requires a considerable investment.

Even so, we don't have enough money in our accounts.

Chen Mo showed no worry whatsoever: "I'll take care of the money."

"I'm planning to send you to Japan to sort out the issue of imported equipment. While you're at it, also arrange for the LD disc manufacturing plant to receive the necessary equipment and technical personnel. Is that possible?"

Jimmy looked uneasy.

Although he managed Chen Mo's two factories quite well, he was ultimately still a young man who wasn't good at business.

Chen Mo entrusted him with such an important task all at once, and he was still a little flustered.

However, he also knew that the future of those two counterfeit factories was limited.

Once he does this well, his status with Chen Mo and his own abilities will be greatly enhanced.

He really didn't want to give up this opportunity.

After some mental preparation, Jimmy gritted his teeth and agreed.

"Brother Mo, I will definitely handle this matter well!"