Video sites are testing water charges

Absrtact: October 19, for the domestic mainstream video sites have launched a fee video, industry experts believe that this is the video site in order to achieve income diversification to promote the listing of measures taken. Test water Charges October 15 news, Youku began beta

October 19, for the domestic mainstream video sites have launched a fee video, industry experts believe that this is the video site in order to achieve income diversification to promote the listing of measures taken.

Water test fee

October 15 News, Youku began to charge business products Cool pay channel (store.youku.com), has not been large-scale promotion, online time is undecided. Monthly subscription fee of 20 yuan per month to December 31, 2010. At present, the content of the homepage of the film and education columns, the content provided by the signing of the copyright party.

In addition to Youku, the country's top-ranked video site also launched a charging program or is brewing to launch a paid project.

As early as this February, the Thunder announced the launch of the introduction of the Charging video service project-"Ruby Cinema", test water video charging mode. It is understood that in the Thunderbolt ruby download a movie requires 2 ruby points, equivalent to 1-2 yuan cost. In addition, the Thunder Ruby phase will provide dozens of to Stemona high-definition film and television content, if it is a monthly subscription, the cost of downloading a single movie will be reduced to a few cents.

Early last year, PPS network television launched a billing business, paid users to get skipped advertising video and high-definition fast playback and other privileges. This August, PPS President Xu Wei in an interview with Sohu it said that the PPS revenue will reach 200 million yuan this year, fee-based services (including membership fees and online games revenue) has accounted for the total revenue of 1/3.

Potatoes and cool 6 will also launch their pay business in the near future.

Last November, Tudou's chief content officer, Huan Min, said Tudou would officially launch some of its video-content charging plans in 2010.

Previously, 酷6网 CEO Shanyou also disclosed that cool 6 pay video program will be at the end of 10 or November at the beginning of the line, its initial content is to provide European and American film viewing and downloading services, consider the use of Shanda and other channels charges.

Diversified income channels

"Advertising revenue is the most important source of revenue for video sites, the implementation of fee-based services is also a video site to expand the diversification of business, reduce the risk of development initiatives, through the diversification of income, shareholders of their performance evaluation will be better, which also helps the video site to achieve the IPO." "said Xufeng, an analyst at Eric Consulting.

Cool 6 As the only one in the domestic Nasdaq-listed video site, its earnings figures are very representative. Cool 6 in the second quarter, net losses widened to $11.8 million, compared with a net loss of $10.4 million in the previous quarter, to $10.9 million a year earlier. In the second quarter from the continuing business (video website advertising) revenue of 2.4 million U.S. dollars, the business net loss of 14.7 million U.S. dollars, the chain expansion of 60.4%.

"With the anti-piracy campaign going on, video sites have had to buy the source of the piece by buying copyright, and the rise in copyright costs has further extended the profit point of the video site." At present, video advertising revenue scale although expanding, but this single income model for video sites are not good. Even if the video website is listed, the high risk brought by the single income model will bring the capital market to the stock, in this case, diversification is the inevitable choice. Industry analysts say.

However, whether the charging model can really attract users, is still unknown.

"The charging model is clearly not a good choice for Chinese netizens who are accustomed to free video," he said. Insiders say.

But other analysts are bullish on the revenue model. "Video sites that launch a pay-for-video program such as education are likely to attract users ' interest, which could also be another source of revenue," he said. "Xufeng said.

In September this year, it was reported that Youku officially launched the Nasdaq listing plan, which is expected to be formally submitted for listing by the end of November. At the same time, it has been reported that Tudou has hired Morgan Stanley to arrange its initial public offerings and to hire Deloitte to do its audit work, expected to be listed in the year. Before, the Thunderbolt and PPS have also disclosed its listing planning to the media.

However, the launch of the video site has also been evaluated by investors as "false prosperity", and the boom is behind the pressure from the capital side. Arctic Light managing director Deng has pointed out that the video industry is not yet mature, and the video industry value chain is too long, leading to participation in the distribution of benefits too much, resulting in high risk of video site operation, the listing is obviously a bit impatient performance. (Reifeng)