What is the most expensive project on the Internet? I think that non-video sites and online education are all there. The reason why online education burns money is because the cost of early-stage market education is high, and education is a non-standardized product. It requires more O2O online connection lines to complete, which is a systematic, complicated and costly project. However, the prospect of online education is bright and the development path is relatively clear.
Video sites are very different. In fact, it is not terrible to burn money. The fear is that the profit model is not clear and the development path is ambiguous. From a profit model, advertising has become an important and even the only source for many video sites. Compared with a large number of copyright expenses, content production expenses, flow operation expenses, and bandwidth expenses, advertising revenue alone will not be able to make ends meet, and users who have traffic but continue to suffer losses will have to be broken.
The status quo - either loss or sales
Recently, the video site Youku released a fourth-quarter financial report, which showed that the revenue was 1.26 billion yuan, an increase of 40% year-on-year, but the loss reached 318 million yuan. At the same time of poor performance, Youku was also investigated by a number of US law firms. Deutsche Bank reduced Youku’s target price by 41%, and the stock price plummeted. Youku’s market value is currently only about 14 billion yuan, less than 1/5 of LeTV, which is also a video site.
Youku is still the leader of video websites, and some second-tier brands are even harder. For example, Thunder recently announced that the company has reached a legally binding framework agreement with an independent third-party company, Beijing Xiangchao International Media Co., Ltd., and will sell the company’s shares held by Xunlei.
Specifically: Thunder plans to sell Thunder for a consideration of RMB 130 million. The board of directors of the company believes this transaction is beneficial to the company and its shareholders and has approved the transaction. Thunder believes that the removal of Thunder to meet the company's new strategic priorities, streamlining the existing unprofitable non-core business. According to the 2014 fourth-quarter financial report released by Thunder, the company had a net loss of 4.7 million US dollars during the period.
Let me say that Youku imitates the target of YouTube in the United States. In the 10 years since its establishment, while sitting on 1 billion users, it was still a loss last year. YouTube's days are not good enough.
YouTube and domestic video companies such as Youku Tudou are facing similar conditions and are unable to make effective profits. But there are some differences between YouTube and China's imitators: YouTube relies more on user-generated UGC content, rather than buying a lot of film rights like Youku Tudou.
This means that YouTube is under less pressure on copyright costs. In addition, YouTube is most dependent on advertising, YouTube has Google's huge advertising system support, so companies such as Youku Tuo can more easily realize the traffic.
In this sense, Youku's pressure is even better than that of YouTube, and video websites such as 56, PPS, and pptv will be eliminated first.
Way out - Either fight or change
Video site as a money-burning industry, in order to survive and develop, there are currently only two ways to go. First, the giants such as BAT were committed to sustained blood transfusion support. Sohu Video, iQiyi, and Tencent Video are taking this route.
This road is actually the way to "find it." BAT giants basically have their own business ecosystem, and video is only a part of the ecological chain. Therefore, even if the video site is temporarily not profitable, relying on strong financial support, BAT can also be maintained, and can be earned from other links in the ecological chain. Take profits. Thunder sells Thunder to see, but also take this route.
Another road is to learn from LeTV's development path and build its own open-closed ecosystem. According to the annual report of LeTV.com, LeTV.com achieved operating revenue of 6.8193 billion yuan in 2014, an increase of 188.79% year-on-year; net profit was 364 million yuan, a year-on-year increase of 42.75%. The surge in revenue was mainly due to the rapid increase in sales of advertising products and smart terminal products. LeTV’s advertising revenue this year reached 1.572 billion yuan, up 87.38% year-on-year; LeTV revenue was 2.74 billion yuan, an increase of 443.47% year-on-year. .
LeTV is undoubtedly a success, but LeTV regarded this road as simple, but actually it was more complicated and more difficult to get started than the first "find it." LeTV's success lies in its first-mover advantage and unique strategic vision:
When others do not pay attention to copyright, they have accumulated a large amount of copyright, relying on copyright distribution and advertising revenue to make it profitable early; while others scramble up the copyright price, LeTV has arranged upstream of content production to purchase. Flowers, film and television, and the establishment of LeTV, once again leading the competition. The successes of TV dramas such as “Tuo Biographyâ€, “Little Times†and “Returns†have enabled the company to achieve more than 2 billion yuan in box office in 2014, making LeTV as the top three for private film and television companies. When everyone rushed to create content, LeTV unexpectedly launched Super TV and began to build a vertical ecosystem of “platform + content + terminal + applicationâ€, selling 1.5 million units a year. Next, smart phones, smart cars and other products are coming out...
Jia Yueting once mentioned in the internal Lexus employees’ speech: “The vertically integrated Leshi ecosystem is growing at a high speed, the large-screen Internet ecosystem has basically taken shape, the mobile phone ecosystem has entered a countdown, the ecology of electric vehicles has started, and the sports industry ecology is pushing forward. The ecological "platform + content + application + terminal" has formed a complete closed-loop. "This has clearly described the way LeTV.
Now it seems that whether Youku, Iqiyi, or Sohu video, it is very difficult to replicate LeTV again. However, the change ratio is not strong. Youku has begun to adjust the structure of the business division and established six divisions and nine content centers to transform the culture and entertainment ecosystem. However, the construction of an eco-system is also a day-to-day process. To find a “betterâ€, it may become the collective destination of the next wave of video sites.
The status quo - either loss or sales
Recently, the video site Youku released a fourth-quarter financial report, which showed that the revenue was 1.26 billion yuan, an increase of 40% year-on-year, but the loss reached 318 million yuan. At the same time of poor performance, Youku was also investigated by a number of US law firms. Deutsche Bank reduced Youku’s target price by 41%, and the stock price plummeted. Youku’s market value is currently only about 14 billion yuan, less than 1/5 of LeTV, which is also a video site.
Youku is still the leader of video websites, and some second-tier brands are even harder. For example, Thunder recently announced that the company has reached a legally binding framework agreement with an independent third-party company, Beijing Xiangchao International Media Co., Ltd., and will sell the company’s shares held by Xunlei.
Specifically: Thunder plans to sell Thunder for a consideration of RMB 130 million. The board of directors of the company believes this transaction is beneficial to the company and its shareholders and has approved the transaction. Thunder believes that the removal of Thunder to meet the company's new strategic priorities, streamlining the existing unprofitable non-core business. According to the 2014 fourth-quarter financial report released by Thunder, the company had a net loss of 4.7 million US dollars during the period.
Let me say that Youku imitates the target of YouTube in the United States. In the 10 years since its establishment, while sitting on 1 billion users, it was still a loss last year. YouTube's days are not good enough.
YouTube and domestic video companies such as Youku Tudou are facing similar conditions and are unable to make effective profits. But there are some differences between YouTube and China's imitators: YouTube relies more on user-generated UGC content, rather than buying a lot of film rights like Youku Tudou.
This means that YouTube is under less pressure on copyright costs. In addition, YouTube is most dependent on advertising, YouTube has Google's huge advertising system support, so companies such as Youku Tuo can more easily realize the traffic.
In this sense, Youku's pressure is even better than that of YouTube, and video websites such as 56, PPS, and pptv will be eliminated first.
Way out - Either fight or change
Video site as a money-burning industry, in order to survive and develop, there are currently only two ways to go. First, the giants such as BAT were committed to sustained blood transfusion support. Sohu Video, iQiyi, and Tencent Video are taking this route.
This road is actually the way to "find it." BAT giants basically have their own business ecosystem, and video is only a part of the ecological chain. Therefore, even if the video site is temporarily not profitable, relying on strong financial support, BAT can also be maintained, and can be earned from other links in the ecological chain. Take profits. Thunder sells Thunder to see, but also take this route.
Another road is to learn from LeTV's development path and build its own open-closed ecosystem. According to the annual report of LeTV.com, LeTV.com achieved operating revenue of 6.8193 billion yuan in 2014, an increase of 188.79% year-on-year; net profit was 364 million yuan, a year-on-year increase of 42.75%. The surge in revenue was mainly due to the rapid increase in sales of advertising products and smart terminal products. LeTV’s advertising revenue this year reached 1.572 billion yuan, up 87.38% year-on-year; LeTV revenue was 2.74 billion yuan, an increase of 443.47% year-on-year. .
LeTV is undoubtedly a success, but LeTV regarded this road as simple, but actually it was more complicated and more difficult to get started than the first "find it." LeTV's success lies in its first-mover advantage and unique strategic vision:
When others do not pay attention to copyright, they have accumulated a large amount of copyright, relying on copyright distribution and advertising revenue to make it profitable early; while others scramble up the copyright price, LeTV has arranged upstream of content production to purchase. Flowers, film and television, and the establishment of LeTV, once again leading the competition. The successes of TV dramas such as “Tuo Biographyâ€, “Little Times†and “Returns†have enabled the company to achieve more than 2 billion yuan in box office in 2014, making LeTV as the top three for private film and television companies. When everyone rushed to create content, LeTV unexpectedly launched Super TV and began to build a vertical ecosystem of “platform + content + terminal + applicationâ€, selling 1.5 million units a year. Next, smart phones, smart cars and other products are coming out...
Jia Yueting once mentioned in the internal Lexus employees’ speech: “The vertically integrated Leshi ecosystem is growing at a high speed, the large-screen Internet ecosystem has basically taken shape, the mobile phone ecosystem has entered a countdown, the ecology of electric vehicles has started, and the sports industry ecology is pushing forward. The ecological "platform + content + application + terminal" has formed a complete closed-loop. "This has clearly described the way LeTV.
Now it seems that whether Youku, Iqiyi, or Sohu video, it is very difficult to replicate LeTV again. However, the change ratio is not strong. Youku has begun to adjust the structure of the business division and established six divisions and nine content centers to transform the culture and entertainment ecosystem. However, the construction of an eco-system is also a day-to-day process. To find a “betterâ€, it may become the collective destination of the next wave of video sites.
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