Wang Micro: Video site also burn money for 3 years

"Burning money is inevitable, potatoes are no exception, and this situation will continue for 2, 3 years, can really from the stage of burning money to profit."

In the face of the current "singing" video of the Noise, July 3, Tudou President Wang in Beijing released its new advertising system, said in response.

After just experienced the first year of 2006 video Carnival, 2007, a group of video sites have broken down due to the capital chain, the industry has predicted that the mainland video company survived 2007 years but 3, 5, can survive to 2008 but 2, 3 home.

"The marathon has just begun. Amateurs were out of the pile, and the pros were still running. Wang said, "from the start of the first day, can be said to be a difficult day." The present situation, for potatoes, is far better than the beginning to ask for money, no people, no influence. In this comparison, it is not a great difficulty at the moment. ”

In response to the 3 big sticking points of the video web site: Big money consumption, immature advertising patterns and copyright issues, Wang said potatoes have begun to look for a comprehensive response.

At present, all podcast sites in the country are facing no profit situation, the number of broadcast continues to rise, operating costs are very large, many people will have such a question, how long will the situation of burning money continue?

Wang said in response that all start-up business companies want to reach the breakeven (break-even point) as soon as possible. Podcast sites are no exception. The operating cost is very large or very small, it is not important. It is important to know when the rising curve of income will be able to intersect with the rising cost curve as soon as possible. Tudou has 3 rounds of capital, reserves a lot of fodder, is prepared to the intersection of these two curves before the time used. The time may be long or short, and most of it depends on how well the ad system works.

"Build walls and accumulate grain." The website completes, attracts the good user, prepares the sufficient fund, unceasingly explores the profit pattern. "said the king, summing up.

At present, the domestic video sites are facing a dilemma proposition, users worry less, users are more worried-bandwidth, server costs increased significantly.

According to the third party statistics, May latest data show that potatoes do not repeat the user 20 million, the number of visitors has reached 1.148 billion times. In March this year, YouTube, a well-known foreign video site, provided 52 million people with 1.1 billion browsing volumes. Wang admits that in the pursuit of YouTube on the way, Tudou is very large, can only have 2 choices, and constantly increase the number of servers, bandwidth, or cut off some of the traffic. Of course, the latter is unlikely to be an option.

In addition to the profit model, online video will face stricter network regulation in 2007. Many of the domestic video sites are television programs and movies intercepted down illegally uploaded to the network, very easy to bring copyright disputes. Even international websites such as YouTube are still riddled with copyright lawsuits. Wang revealed that Tudou has long been aware of this problem, this year's key project "Bean plan" has been advancing, this plan will effectively gather a large number of outstanding individual original podcast, become "Tudou in the abuser." In addition, and some television stations, film companies, audio-visual companies to negotiate, so far, has signed 1000 copyright party.

Based on the confidence of the web2.0 new Media form, based on the confidence of the internet flattened infiltration, Wang said Tudou would stick to this direction even if it burned for 3 years.