How does LeTV drive development and competition?

LeTV website business group chief executive Fei said the "content" is still LeTV into the first echelon of the video entrance

Tiger sniffing Note: a month ago, just promoted to LeTV business operations group CEO Goofy, accepted in the office of tiger sniff Jun after two and a half hours of interview frankly, this is the longest accepted interview ever since . Goofy is also a video of the elderly, from 2006 to do podcast Sina, 07 is responsible for Sina video. "Sina video has no way to independent way, has been in the channel and independent video business swing between the development process, it will make people can not see the future direction." Then he joined Lishan Youku 6 until 09 and Jiayue Ting Meet more than an hour to chat ... ... He decided to join music.

Generally speaking, content, technology and capital are the three most important factors in the development of a video website. According to Gao Fei, content is the most distinctive tag of music. To be the first echelon of music to be cut into video, Gao Fei must cut from "content" .

The "sense of presence" and orientation of content

For most people, the entire LeTV group is unknown how many business segments, let alone identify who is the most important music video and music TV in the end. At present, as the TV limelight is healthy, fly think that as the video platform now Watch TV is behind the TV, unlike other men out of the limelight, nothing bad.

Tiger sniffing: Music as many business segments, but seems to be around the TV as the TV spin, as the presence of music Watch is not a weak point?

Goofy: This is nothing bad. Each stage, there are halo around the business, the earliest is the copyright, and later is to catch up with the website traffic and advertising business, and now it is television, and these are the need for a synergistic mechanism. Now music as the TV to go in the front, then the music Watch do full support. Internet TV without content is not a success, so in this sense, the music behind the network plays a key role.

UGC can not be the core content source

UGC has been Wang Jun denounced as "junk traffic" business, is currently in an awkward period, Youku UGC has not yet realized a lot, and content production to PGC home-made and copyrighted to buy, cool 6 also experienced a complete failure UGC , Will UGC fully adhere to 56 network only. In the opinion of Goofy, UGC is not impossible to do, but not as a core source of content.

Tiger sniffing: You buy a lot of copyright content, but also large-scale self-made, standing on a long video site point of view, how do you see UGC?

Goofy: Homemade In fact, no matter from the traffic or the number of copyright content, have a dilution effect. There are a lot of copyright do not need to buy, through cooperation. Your content generates value on my platform, and I'll make a profit with you again. This part of the future will continue to increase. UGC will provide incremental additions in the future, but in our definition it is still the user's capabilities, not the core content source, the user generating content on our platform, but the content is of no value to strangers. It is valuable to people who are related to him, so they are provided with relevant services and experiences.

Tiger sniff: show it? Show pattern has been more mature, some companies as the industry have to be listed.

Goofy: Show field does meet the rigid demand of otaku users. It depends on two aspects, one is policy uncertainty. Net action recently net in fact is a certain threat to the show floor. In the long run, policy uncertainty may have an impact on show business. Do you want us to do the second? May cooperate to carry out. Show field mode of technology is relatively mature, does not rule out the future we will do this business through the cooperation of the way. Because it is a very good cash flow channel. Music as a show field from scratch, then, little value.

Technology: Will not grab their business online places

In the CDN node, the input of bandwidth cost is actually one of the most important operating costs for video websites, and LeTV is still online at the beginning of the year. Goofy on such a huge amount of input is very calm, at the same time do not think they robbed the network business.

Tiger sniffing: When this year's 4K TV was released, Laoja said that your CDN node will have to increase to more than 300 this year. Will there be a lot of pressure on node construction and bandwidth purchases?

Going high: The CDN node now has more than 300 nodes and is expected to increase to 400 by the end of the year. Cost pressure depends on the total amount of bandwidth, not depending on the number of nodes, the node will make the service more uniform. High-stream video services can be scheduled nearby, to ensure fluency. In terms of bandwidth, the costs seem to be on the rise, but the underlying CDN business can be independent in the future, and we have formed an independent cloud computing subsidiary. This network not only to the music service, including Jingdong, part of Taobao, Dangdang, and even Zhejiang Satellite TV, Hunan Mango TV also run above us. This does not completely constitute the operating costs, it can make money. My bargaining power to the upper reaches will be stronger in the future. For us, we can offset the cost pressures through cross-border business. Even if external service, the price is competitive.

Tiger sniffing: So you robbed the net places their business?

Goofy: I can not say that either. Some businesses also need their services. There are some shortcuts, they have some services, such as static pool service coverage may be better than us, but this part of the dynamic CDN, they can not be compared with us.

Capital: LeTV must generate enough attention and then turn it into available resources

In the past year, there have been so many press releases for LeTV that people think the GEM is everything for the sake of capital.

Tiger sniff: always feel optimistic about the outside world for the capital has been telling stories.

Goofy: I do not know why the outside world will come to such a conclusion. In fact, a good company must be no shortage of stories. If obscurity or nobody cares about is a good company, it is a false proposition, that is terrible. If we say that television was a pseudo-proposition at the outset, is it still a story to talk about now? At least it is not a capital story. To the Internet, under the situation of relatively tight resources behind us, it is necessary to change the traditional situation in the past. In the past, we must first work hard at a certain scale before we announced it to the public. This is not suitable for music and television. For us, enough attention has to be drawn and then used to translate into the resources available to us, which is why we can cut down some of the costs of the channel, cut down some of the harshest hard costs, Price down. Even if it is cheaper, no one knows, then prices are falling. The Internet itself is an economy of attention. For music, it is not a paradoxical argument. Music as able to do so, the other home is the same.

Content is the most obvious music as a label

Tiger sniffing: technology, content and capital three, music as more biased?

Goofy: It's hard to sort technology, content, and capital because dimensions are different. Until now, we've been talking about music as a technology-driven company, but it is hard to tell which link is too long or too chain-driven. But for an Internet company in the long run it must be technology-driven, and we want to turn ourselves into a technology-driven company. Google can count as a technology company, Microsoft can count, but now it's a bit outdated. Rely on technology-driven alone is not enough, especially when the mobile Internet boom up.

I can only say that the content is the most distinctive music label. Music as to cut into this industry, especially into the first echelon, must cut into the content. I think, from the commercial layout, the big screen, including the mobile terminal is concerned, the content is not around the past. In fact, the content of this sentence more than ten years ago, there was the previous graphic, video and imaging now, the law of the content is still at work.

Capital is an accelerator. It can change, accelerate, or impact the pace of your business, but it can not be independent of your business. Business is 1, then you can add 0, but no business, meaningless.

Tiger sniff: Some analysts have said that the market value of music as more than 200 billion yuan, what do you think?

Goofy: This hat is actually quite big, Imagine the future, then everything is possible in the future. If the business is solid, why can not it?

The future will continue to expand, but no need to stand team

LeTV does not deny the capital operation such as mergers and acquisitions, but the problem of 360 is tight-lipped. In terms of traffic entrance, LeTV still hope to balance between Baidu and 360.

Tiger sniffing: mergers and acquisitions it?

Goofy: As far as capital operation is concerned, LeTV will continue to do mergers and acquisitions. All of our industrial nodes based on LeTV Eco will have to expand. However, there are many ways to expand. Capital cooperation is one of the options. Of course, there may be strategic cooperation as well as joint ventures and 7788 ones. Music as ecology is a closed loop, but also open, you can self-evolution. All my nodes are open and more partners join the music industry. On the one hand, they need each other, and the second one must agree. Be able to find fit points in future business planning. Due to the particularity of our business ecology, it also determines that our story will definitely be more. Because the content has the opportunity to mergers and acquisitions, there is no smart terminal? Is it entirely possible that there is no mobile Internet? Does not rule out.

Tiger sniffing: Some time ago Qihoo 360 subscribe for some of your additional shares, your capital cooperation only stop here?

Goofy: This is just a matching film and television funds, specifically I did not participate nor too clear. We work closely with the 360 ​​business, so I do not think it necessary to use capital to strengthen the cooperation between the two sides. Everyone will have a common appealing point, and we also contribute a lot of income to him each year. (laugh)

Tiger sniffing: 360 and Baidu two entrances, which one do you prefer?

Goofy: LeTV is currently the only independent video site. If this independence, then pessimistically, does it mean that there will be no big trees sheltering behind Godfather or godfather? On the other hand, our mechanism can be more flexible and no one of our resources will provide any I am closed, my room for maneuvering can be more flexible. Based on some common interest points, we can do some cooperation with Baidu, we can do it with 360. We do not have such a tough conflict between our future destiny and the entrance to the channel. No need to stand team, stand up to their own things no need to stand up. For example, this new space and QQ space conference, Tencent also has video, but these things if Tencent video and music competition will not do this cooperation, which for its internal is not happy. WeChat Ye Hao, QQ space Ye Hao, microblogging ...... These platforms if we can find a suitable way of cooperation, can be used by me. From the media or stand-alone video site in the era of social media can do what we want to do, you want in the portal era - I'm sorry, want to influence users, without the portal is impossible.

Industry: the possibility of annexation is not large, profit-making points have become more likely

The following conversation, including the topic of copyright and earnings.

Tiger sniffing: 4K sources is a problem, many people think that the bandwidth, the amount of content is still a big problem, how do you think?

Goofy: When we said at the time of release, if music can not be done, no one can do it. Film sources always lag behind the development of the screen. 4K screen may be everyone, it is important now is 4K content and service can match. The future of 4K or based on cloud services, we provide cloud-to-screen services. Even so, the source of 4K is still very small, including Hollywood, have been talking to them. But the whole process is not controllable, music is not controllable, competitors are not controllable, the most controllable is what? This is a relatively low cost. Music video and flower video also can produce 4K content. Even so, it takes time. I believe there will be a drastic easing of 4K sources in the next year. The situation of 1080P that we faced in 3 years ago is exactly the same as that of 4K, but now it is totally not a problem. So use the development of vision, wait until the source is not a problem when you do 4K again, late. Therefore, we must use rapid iterative way to plan.

Tiger sniff: From the end of last year, there was a feeling in the press media about media peers that the copyright war started again and the battle of home-made war still continued. From the point of view of music, what were the two campaigns?

Goofy: In fact, the so-called copyright warfare and self-made war is content warfare. In the final analysis, the decisive factor is self-control. Copyright procurement is not sustainable.

Tiger sniff: Do you think in 35 years, or a shorter period of time, the development trend?

Goofy: The initial pattern of stable industry. The existence of mergers and acquisitions is not easy to say, the possibility of annexation in a malicious way is not too large, to survive, the crisis of survival has been eliminated, the future is the size of the problem. Second-line video sites in the future is not too big a chance, the mobile Internet era, it is unlikely to give them a chance. Aggregation sites are also phased, if four or five sites announced they do not provide content interface, then they die in minutes.

There are more than 30 provincial-level satellite TV stations in China are not normal, in fact, seven or eight also enough. So the video site is the same, so big market, a unacceptable, before everyone desperate struggle, on the one hand is worried about being eaten by others, on the other hand I want to eat other people. However, with relatively stable competition and a situation acceptable to all, the degree of competition will fall and cost control will be more reasonable. Business development will continue to expand as the market expands and profit points become more likely. I think the future of the video industry is going to be great in the coming year or two. BAT is now all around the world. After the stabilization, everyone will have a development, and the bargaining power of the upper reaches will be strengthened.