Of China's video industry executives, Sohu accounts for the vast majority of

These people, known as the "Financing king" of the Koo to 3 million dollars, in less than 6 years to the largest rival network of potatoes in the bag, the Chinese Internet industry has achieved the largest mergers and acquisitions. Compared with him, backed by Baidu and Providence Fund (once invested Hulu) of the love of Qi Art CEO Gong more like a rich family of "dude". Since 2010, Archie Art has been controversial. It was predicted that even with the support of Baidu, Archie Art is just a "late gamblers."

However, the establishment of less than two years of love Qi art is now the domestic internet industry, one of the fastest-growing web sites. Data show that the growth rate of Archie Arts in 2011 reached 250.3%. In the past 20 months, the number of independent users of the site has grown from zero to 198 million.

Gong said the love of the arts will be his next 9 years. His goal is, "more than all Sohu people do video sites, and they will not go the same way." "But with the combination of Youku, Gong will have to face more than a koo, but also with the boss Zhang Zhang" ", coupled with the spoiler MA (Micro bo) Tencent video, everything is still unknown. In response to various problems in the industry, he received an interview with the Daily Economic News reporter (hereinafter referred to as NBD).

Video advertising revenue will double this year

In Archie art into the video industry, Youku potatoes and other video sites after four or five years of experience, has accumulated users and brands. There are few opportunities for Archie such as the latter. Before Archie Art, Baidu does not search the characteristics of products, including Baidu Hi, there are AH and other developments are not satisfactory. Archie Art in the entire Baidu strategic layout status may be a few years later will be highlighted.

NBD: Baidu before doing Archie Art, what kind of investigation before finally make judgment? Baidu's investment in Archie Art is to complete what layout in the big structure of Baidu?

Gong: Baidu Company CEO, Archie chairman Li has a speech, called landingpage (Landing page). After the user searches, the page that enters the search results is the landing page. Baidu's value in the user before landing, but stay too short, so Baidu tried to get more profits in the chain next layer. Previously, these profits may have given youku, potatoes, so we think, why not make one by yourself?

In addition, Baidu has been trying video, and possession of cool 6 of small shares, and Youku cooperation for 3 years the main purpose is to examine the market and business model. For Baidu, video such a heavy product, can not be put into the Baidu system, it must be like an independent company, has the ability to compete in the fierce competition in the survival space. Video service is a big market, but far from mature, which means a good opportunity.

NBD: Archie Art is Baidu's company, will certainly in the flow of help Archie Art, the current Baidu to bring the flow accounted for the total flow of Archie art how much?

Gong: At present Archie art from Baidu's flow is about 30%~40%. Baidu is a commercial company, with the benefit maximization priority. In the case of maximizing shareholder return, the core value is to let the user satisfaction, in such a premise only recommend Archie art.

NBD: Archie has just appointed the new chief technology officer, Tang Hing, what is the consideration of this appointment? What are the new marketing strategies?

Gong: Archie Art needs more excellent talent, technology and product advantage is the core advantage of Archie Arts, the appointment of new CTO, of course, is to continue to strengthen this advantage.

As for the appointment itself, on the one hand, to find the best match Archie Creative DNA, leading the next stage of technical layout, product innovation to maintain the leading Archie candidates is a very challenging thing, and Tang Xing is the most suitable candidate. Before joining Archie, Tang Xing is the technical director of the Shanghai Research and Development center of Google, who was responsible for Google Video search business and participated in the research and development of YouTube video Search service.

Specific strategy, we will increase the market and sales efforts this year, further excavation and enhance the commercial value of Archie Art, this year's network video industry advertising revenue should be doubled growth, we hope that Archie art can achieve three times times the growth rate.

NBD: Back to Baidu, Archie Art in the future will be in the vertical video search layout?

Gong: Back to Baidu, video search is Archie art is a key advantage. At present, our technical staff accounted for more than 1/3 of the total number of employees, in this part has been the focus of research and development direction. Tangxing, who has been the head of Google's global video search business, will continue to increase our investment in the field of video search.

The competition pattern of industry will be clearer

March 12, Youku and Tudou announced that the two sides will be merged in a 100%-share swap, the merged new company renamed as Youku Potato Co., Ltd. Gong that the merger announced the end of the network video market irrational competition, the future industry competition pattern will be clearer.

NBD: Prior to the rumor that Youku has negotiated Archie Art, is there a thing? If so, what is the consideration of Archie Art?

Gong: I didn't know there was such a thing, but potatoes had contact with us before and after the listing. As of February this year, Archie's monthly independent user coverage has reached 213 million, and has established significant advantages in brand building, user experience, and mobile domain. When necessary, it does not preclude the acceleration and consolidation of this advantage through mergers and acquisitions.

NBD: What do you think about the combination of Youku and potatoes, and what impact will this have on the industry?

Gong: The combination of Youku and potatoes is the result of the irrational competition in the early stage of the network video market, the future industry competition pattern will be clearer. The reduction in video companies will bring content costs under control, and competition for bandwidth and talent will be less intense.

NBD: Does the combination of Youku and potatoes squeeze the space of other video sites?

Gong: From the market, the network video industry has not formed a monopoly, from the scale, the network video industry's future development space is large enough. The latest report shows that the 2011 China online video industry market size of 6.27 billion yuan, of which advertising revenue of 4.25 billion yuan. And TV advertising revenue in 80 billion yuan, online video market prospects are very optimistic.

From the core indicators of user time, according to the latest week's data, Youku occupies 28.1%, Archie Art accounted for 14.4%, potatoes accounted for 11.8%, Youku potato Total 39.9%. Online less than two years of love-qi art growth rate is much higher than the industry average.

Tencent is the strongest competitor

and Archie Art also tied out "giants" and Tencent video. Last year, Tencent first threw 500 million yuan to set up a film and television fund, and then 450 million yuan to invest in Huayi. The money has not yet let people breathe too much, and the content of the press. Gong Frankly, Tencent's aggravating adds the complexity of the video industry. For Archie Art, Tencent is a very strong competitor.

NBD: Baidu and Tencent to develop video field, Baidu has the flow advantage, and Tencent has hundreds of millions of users, you think Baidu can check and balance Tencent?

Gong: I think compared with Baidu, Tencent's resource utilization is relatively low, but Tencent video is a very strong competitor. In comparison, Tencent, although the flow of large, but rely on the qq.com, and Baidu's video resources more concentrated, this is the first advantage; second, we are at least one year ahead of Tencent layout of the market, there is the first advantage; The third is the mechanism of the problem, Tencent products will be mutually restricted, this is a burden, and we do not have this baggage.

NBD: What do you think of the Tencent video's upstream layout through a stake in Huayi?

Gong: I do not understand, or against Tencent "pepper" investment way. Tencent tried to make a stake in the layout of the upstream copyright, but only for the film company Baifi Copyright. Does this mean that there is priority in copyright procurement? I think the effect is very weak, the impact is very small.

NBD: What is the current level of income of Archie Arts?

Gong: Industry for 2012 video advertising revenue is expected to increase by 100%, but Archie will be faster, income increase can be more than 300%. Of course, Archie is still in a loss, the losses are still relatively large, but the third year is still the investment period.

NBD: Why do you think the video industry has been hard to profit for years?

Gong: Video industry may be the first 5 years of investment, industry-leading enterprises are in the loss, but also huge losses. But then, this year, monetary capacity, that is, income level will become the core competitiveness.

NBD: There is news that love Qi art is starting a new round of financing?

Gong: Archie The first batch of funds has been spent. Financing for the video industry is not a phased event, but the regular, continuous. From Baidu's earnings can be seen, capital of Archie Art has been in the investment. But the details of the financing are not disclosed.