Through copyright contention, traffic competition and industry integration, standing at a new starting point to see the whole industry

September 13 Electricity through copyright contention, traffic competition and industry integration, standing in the new starting point to see the entire industry, Youku Potato Group Chairman and CEO Koo has a clearer plan.

"What was your biggest gain in the year of the combination of Youku and Tudou?" When a reporter asks a question, he says, "The harvest is something that allows us to look up to the future and start acting." ”

Synergy effect is obvious

For Koo, the merger is a liberation that allows him to get rid of the past Youku and potato era of close hand-to-hand combat, in turn has the time and energy to stand in the industry's high thinking about the future of video and layout. "Now that we have merged, we are not looking forward to a second, but we can lift our heads out to look at the whole environment and think about the direction of the whole industry." ”

After the merger, the synergy between Youku and Tudou began to emerge. In the second quarter of 2013 's earnings, Youku potato PC-side coverage of users has reached 400 million. In the second quarter, bandwidth cost rose to 164.1 million yuan only from 111.9 million yuan in the same period last year, but the corresponding revenue rose from 387.4 million to 753.5 million yuan. According to non-US GAAP, net losses have narrowed to $44.6 million.

In addition, there have been new changes in the architecture. This April, Youku Potato Group announced the BU, will be divided into the existing business Youku, Tudou two big BU, led by the group unified leadership to dual-core drive a number of key projects layout, and gradually hatch into a new business unit. During this period, few public appearances of the ancient Yong Clang completed their role conversion, he had more time to think and observe than in the past, but also more focused on the overall trend of the Internet industry. Shortly before the Sun Peak meeting in the United States, he and Apple chief executive Tim Cook, LinkedIn co-founder Reid Hoffman, and other technology and media, the exchange, analysis of the development of the environment, but also talked about the video industry in the multi-screen era trends.

Business, the group also opened up new opportunities, mainly the following three aspects: to promote the Youku line, potato development line under the differential competition and coexistence; vigorously exerting the self-made program, UGC and PGC, will make the Youku potato group Create a video open platform; The evolution of terminal form makes new thoughts on content and products.

Koo thinks: Play the video is not burn a dead capital game, but complex and need the patience of management art, the entire video industry around the traffic, copyright cut throat competition, after the savage era, how to let video site traffic released a greater commercial value, the need is a reasonable layout and solid cultivation. Therefore, he believes that the future of video sites should not only be broadcast channels, but to build an ecosystem.

Building ecosystems

For video sites, the two most important aspects of building an ecosystem are: content-side and business-model.

On the content side, the focus of Youku potatoes is to create an open platform around the video. Continuous production of quality content, with high-quality content to attract flow, with an open mind to integrate the content production chain up and down.

In the previous copyright war, the audience could not establish the identity and reliance on the platform, followed by professional copyright content. "Copyright content in addition to bring traffic, can not produce any value to the brand, and the video site must be made through the self-made content to strengthen the brand", this is Koo has always been the point of view.

Therefore, in addition to the balance of copyright content, Youku Potato Group began a long-term layout in UGC (user generated content), PGC (Partner generated content, partner Productions) and homemade content. Liu Dele, President of Youku Group, said: "We will devote more energy to homemade content, build a sharing platform, and run a new biosphere."

The first is UGC, this is the beginning of Youku and potatoes with the content, after recent years of development, with the help of Youku, Potato Image Festival and other brand activities, grassroots creators not only have the stage of display, their original ability also found the wild growth of the soil.

PGC, compared with traditional TV, Youku and potatoes can carry more diverse content, for the PGC production team, Youku and potatoes give them not only a single user base, more platform value. As Liu Dele said, "The future of Youku and potatoes will become a relatively automatic platform, both by selling sponsorship and advertising to perform the partitioning mechanism, and they will automatically generate stories".

Homemade content, "Xiao said", "Friends", "Hip-Hop quartet" to master micro-film and other homemade content, but also for youku and potatoes injected more brand value.

More Business Opportunities

In the exploration of business model, in addition to the industry advertisers to explore, copyright content and self-made content marketing to occupy a firm advantage in the Mobile field, Youku Potato Group also grabbed more opportunities.

Koo revealed that "at present Youku potatoes at the mobile end of the day VV (video playback) has exceeded 200 million, over the past 6 months, the growth of more than 100%." Integrated PC end of the original huge advantage, Youku Potato Group has become China's leading multi-screen video company. ”

In the face of the rapid increase in the mobile end of the trend, Youku Potato Group first launched a multiple-screen strategy. Previously, Youku potatoes also interpreted the video viewing behavior of users in the multi screen era of the terminal. For example, people will have the time and patience to watch a 90-minute movie on the PC side, while in a travel environment they are more likely to watch a few minutes of movie tidbits on their mobile phones. The evolution trend of the mobile terminal fragmentation means that more new possibilities appear in commercialization.

Therefore, in advertising, the group also made a timely adjustment and bold assumption: Video web site through the user's preferences behind the big data analysis can probably know who the user is, with the help of mobile end, we can deepen understanding of the user's viewing behavior. For example, when a user watches a fashion show at lunchtime, it is more likely that a trade will be facilitated by an advertisement that is positioned to discount high-end clothing to the user's surrounding mall. Especially in the coming 4G, when more short videos are viewed in non-wifi environments, similar commercialization may be greatly stimulated.

Standing in the background of industry convergence to rethink the future, Koo said he felt a structural change in the industry for 2013 years, with the deep background that the demographic dividend of China's internet had been in the bottleneck over the past years, and video was the most naturally felt in the most sensitive sectors of traffic. In his view, the video industry in the multi-screen, large data trends, from the carrier to the shape of the future, will produce some unexpected changes.