Will PGC refactor the business model for video sites?

PGC (professionalgenerated Content Video web site) will be under the pressure of high copyright cost video sites to restructure the business model?

The so-called PGC is a professional film and television production personnel or organizations to put their production of video content to the video site on the open platform, unlike the traditional purchase of video, video sites no longer pay royalties to the copyright party, but in the form of sharing advertising revenue.

From the beginning of 2015, the video site has gradually increased the investment in PGC, the business in 2015 is more than a video site positioning core business to develop. Let's take a look at the attitude of the House to the PGC:

In early March, Tencent Video announced the launch of the "Insects program." The plan will be signed within 2015 years and focus on supporting the 100 Quality PGC project, Tencent Video claims, with the industry PGC content quality and increasing user recognition, the industry will usher in the outbreak of Spring Thunder burst growth, this is Tencent video launch "Insects Plan" the original intention.

Wei, the president of Youku, said that in addition to the usual traditional film and television content this year, the proportion of PGC was significantly higher than in the past. Wei said that the Youku platform has five kinds of content sources, the first is outsourced content, the second is UGC, the third is Youku, the fourth is PGC, the fifth is the combination of Youku and partners.

When it comes to the relationship between PGC and homemade content, Wei revealed that if a homemade content is not as good as a PGC program, Youku will withdraw its own content and leave the PGC content, which is the cool platform mentality.

Youku potatoes provided us with data showing that the platform in 2014 PGC content grew more than 10 times times, and has two PGC channels played more than 1 billion times, users broke into millions.

"Youku potatoes will also increase investment in the PGC business and explore new business models." "A staff member of the Youku Potato said to us. The other revealed that, within Youku, PGC is one of the core businesses that needs to focus on development this year.

It is not just youku that plans to bet on PGC business in 2015. Archie the arts staff told us that the company's internal and video-related business lines are equipped with the PGC business staff, and in addition to personalized self-made channel, Archie Arts and film distribution agencies, television and other agencies to expand the business of PGC, Archie for PGC business named "Gan-same taste" plan, At present, in the comprehensive arts, animation, film, documentary, micro-film and other video segmentation areas.

"2014 through the same taste plan in Archie Art online film works up to more than 200, the amount of money has reached 20 million." Early in the film, Archie Arts will work with partners to promote the promotion of the film; after the film farewell to the traditional courtyard line, Archie will also set film for the film pay window period, and in the late stage to help film online advertising sales, and finally to click and advertising revenue to decide to share, to ensure that its online fame and wealth. Archie Art staff said.

The vice president of the Lo Jiangchun, the popular network CEO, revealed that the PGC model of open platform and differentiated competition is popular in this year's core business. Unlike Youku potatoes and Archie, he says, popular network open platform and the traditional media operating together, and not like youku potatoes or love odd art just to take up the content as a broadcast channel, popular will channel users, advertising, interactive functions all open to partners, let them operate independently.

"The advantage of the popular network is that we have accumulated more than 700 million users for ten years, through this part of the user's high flow, generate high returns, and finally realize with the traditional media, brand organization." When we work with traditional media, we must make our partners profitable. Cooperation cannot last long without a clear meeting of their demands. In all of the video site actually really with the traditional media cooperation is the most popular network, we are team and team depth cooperation. Our open platform model is more like the cat, in the background can see his number of users, advertising volume, popular open platform is to help traditional media and brand organizations to obtain more new media operating capacity, realize the flow of liquidity. Lo Jiangchun said.

From each video site to our position, 2015 to the content of PGC even more attention than homemade content, what is causing video sites suddenly uncharacteristically to PGC began to pay more attention to it? The reasons we have learned are as follows:

1, compared with the UGC mode, PGC more professional, the quality and quality of the content is more assured, at the same time, because of the use of divided mode, PGC's operating costs and UGC flat, but higher income.

2, with the copyright content of the rising tide of video sites can not achieve long-term profit, but simply pay high prices to buy copyrighted content online, can only become a simple "porter." A business model that spends a high price on content and sells advertisers at high prices will not be profitable for video sites in the short term.

3. PGC creates the business model of sharing revenue with the production issuer, which reduces the cost of buying copyright for video sites, which is subversive compared to the past mode of selling advertising by buying copyright.

Conclusion

In fact, video sites have been exploring new ways of earning money in the past two years, in addition to buying copyrighted ads, whether it's a UGC or a 2014-year homemade drama that is trying to get out of the current business model, it's still the same goal of a massive investment in PGC, compared to homemade or UGC, Since PGC is more secure in content through professional collaboration, it is still time to test whether the business model of video sites can be rebuilt through PGC, but it is now a new attempt.