Venture capital goes crazy: worrying about the cost of professional video websites

What will happen to the video website?

Some insiders believe that video websites or blog-based websites are still regarded as one of the greatest threats.

"In fact, similar to the previous blog website, websites such as Sina and Sohu already have strong cash flows. Once these professional video websites are profitable in the future, then they will increase development efforts and then kill them in, relying on their original traffic to quickly increase users and so on, then most video websites will be shuffled. Several major video websites are still available in this market in the future ." According to Deng Feng, a partner of the Northern Lights.

However, there are also opinions that "currently several major video websites in the industry should survive. Sina is strong, but Tudou is not weak either, the positioning of Sina and Baidu will be somewhat different. For video websites, the first thing is to survive the long winter before making profits, "Hu Xiang said.

As a matter of fact, Youtube, the originator of video websites, has begun to transform to on-demand video streaming. In China, there are already some websites that have made profits by purchasing movie and drama copyrights, therefore, in this regard, the domestic video websites in Europe and America will always be considered in this direction in the future.

"An obvious trend in the future is that, once the video is profitable, the video copyright fee will rise. However, Sina and Sohu have an important advantage, with their resources, they can obtain video copyrights at a lower cost than professional video websites. In addition, there are many original advertising customers, so there is a good foundation for advertising sales ." Deng Feng analyzed the advantages of the original large website in this way.

However, some insiders believe that the cost of copyright ownership in the future will be much lower than that of Sina. However, "it is true that their original advertising customer base is a good foundation, it can also support their stable operation ".

"In fact, now we are looking at almost the same path, all of which are cost-effective, user-dependent, and advertising ." Hu Xiang believes.

In fact, in the 2000 round of the Internet bubble, venture capitalists hit the Internet with a heavy amount of money, and a plan with a team of several people can be integrated into millions of dollars, the soaring Internet-related stocks are the basis for their investment.

Under the guidance of the philosophy of "existence is reasonable" and the philosophy of trying to speculate even if the knowledge is unreasonable, many venture capitalists suffer heavy losses, old funds, including KKR, also lost more than $2 billion due to blind investment.

KKR's founder also came up with the idea that risk control is the top priority. Only by controlling where risks are, the future benefits are not controlled by himself.

If the previous blog website was just a small test, and according to previous media reports, nearly $0.1 billion in the month of July poured into the online video website, so that it was later called "crazy ".

For the future of video websites, Deng Feng agrees that the economic downstream cycle will reduce advertising, especially for emerging video websites, because the company's advertising strategy will be more conservative in this economic downturn, it will take a long time for video websites to boil down in winter.