As the stock price plunge behind

Hou Jiyong newspaper reporter in Beijing

Music Watch (300104.SZ) shares plummeted for two consecutive days. A 21st Century Business Herald received a State Press and Publication Administration of Radio and Television an internal material shows: the General Administration named LeTV criticism of non-compliance, prohibit the cooperation platform and music.

Industry analysts believe that LeTV business will be affected, which is the music as the direct reason for the stock price decline.

July 16, LeTV rare in more than six months since a heavy volume plunged to close at 36.28 yuan, plunged 9.75%. July 17, LeTV opened at 34.8 yuan, closing price of 32.65 yuan, down more than 10%. Since the last week, music as the stock prices continue to decline, last Friday closing price of 40.12 yuan. As of now, LeTV market value has evaporated more than 62 billion yuan.

LeTV online more than 9% decline, or last winter, was mainly dragged down by the adjustment of the GEM.

LeTV relevant person in charge of the 21st Century Economic Report interview that day, listed companies inconvenience to comment on the share price. After the market closed on the same day, Music as released a notice, targeting the market on the broadcast platform is no longer with the cooperation of the news, music said "relevant media reports and factual discrepancies."

Music as trouble

LeTV and CNTV took the form of "video zone" in cooperation with licensees. In this way, although music is not a licensee, but access to CNTV platform, the video content is equal to a licensee endorsement, appears to be able to filter out the risk.

However, this is still not expressly stated in Circular 181. LeTV is not a compliant OTT content provider highlighted in the document, a video site, an open Internet company. This makes the music business is at risk.

Half a month ago, when music and millet pinched two, there is news that CNTV has no cooperation with the music. At the time, MTV responded that cooperation with CNTV had been good and there are still hundreds of thousands of Internet TV terminals integrating their broadcast clients.

Since this week, there has been news that SARFT issued a regulatory order on Internet TV and set-top boxes, requiring licensees not to cooperate with serious Internet companies that are under investigation by the State Administration. LeTV Network is the name of SARFT Internet companies criticized, seven integrated service licensee can not be with the LeTV cooperation.

The 21st Century Economic Reporter obtained the above material as saying: "LeTV's violations have always been given high priority, has been verbally informed that the licensee can not cooperate with the music as the current international platform, the Chinese are still with the music as the cooperation requirements of the license Party for the Office of the Office is being investigated, the licensee must not cooperate with.

LeTV made the following clarification on the announcement on the 17th: According to LeTV, it is understood to Regulatory authorities that LeTV and CCTV have violated the regulations in the cooperation of Internet set-top boxes and required corrective actions. During the rectification period, licensees other than CCTV suspended the cooperation with LeTV, After the rectification is completed and the other licensees are checked and accepted, they will continue normal cooperation with LeTV.

In addition, the announcement also said that LeTV is currently taking the initiative with CCTV on the cooperation of the Internet set-top box there is a violation of the rectification, music as the mall has stopped sales of Internet set-top boxes, the rectification programs developed by both parties have been completed and are being submitted to the regulatory authorities, The company will strive to complete the rectification as soon as possible to restore set-top box sales as soon as possible.

LeTV's statement disclosed two messages: First, LeTV did make a mistake and was temporarily punished by regulatory authorities, including prohibiting the licensee from cooperating with LeTV to prohibit the sale of LeTV set-top boxes; secondly, the penalty for LeTV was not Indefinitely, as long as the error can be changed, the cooperation between the music network and the licensee will continue, the box can continue to sell.

As of press time, regulatory authorities did not make any statement on this. LeTV also said in the announcement: Although regulators stopped issuing licenses for Internet TV broadcasts, they encouraged qualified agencies to actively apply for Internet TV content service licenses. In order to completely solve the license issue, LeTV will apply for the license of Internet TV content jointly with the relevant agencies in the independent broadcasting or joint broadcasting system.

In addition to the drop in stock prices and the shrinking market capitalization, the regulatory troubles caused by LeTV have at least two impacts: First, the impact on LeTV business and special business innovation; second, the impact on financing.

Before music OTT terminal did not do, profit mainly by copyright distribution and advertising revenue, this part of the revenue growth curve has slowed. When it got involved in the terminal, it shrank its distribution and strengthened independent copyright operations to package OTT terminal sales into a single package: LeTV sold at low prices, but bundled annual content for two years and users pay for the content.

For music, "hardware + content" is the product innovation direction, but also the direction of business model innovation. If the licensee refuses to integrate its contents, LeTV marketing will be hit hard and the products will be difficult to sell. The terminals sold will also be subject to return.

In the 21st Century Business Herald interview, LeTV is trying out an innovative financing system to meet the conditions of offering shares to the public. It is now approaching a number of institutions and is expected to become the first wave of financial adjustment after the adjustment of the GEM policy. This news has not been officially verified music.

SARFT continuous shot to rectify the OTT market, more music, to license the parties do not cooperate, will allow some agencies concerned that consolidation may directly affect the music business model, weakening its competitiveness, so as to be cautious about its financing options.

Tightening regulation

21st Century Business Herald reporter also received internal material also showed that: the current marketing of the terminal product only the CCTV millet box products officially issued by the General Office, the other end products have not been approved. State-owned factory was the first to launch the box because the content area is not required by the Administration for rectification, so there is no serial number issued, without the approval of the bureau issued a box of non-compliant products.

In addition to punishing box manufacturers, SARFT also regulated the behavior of the broadcast platform. The material stated that the Directorate General clearly required the licensee can not use the telecommunications carrier's BOSS system, and now the three Taiwan have violations, the Administration requirements can not provide live broadcast service until the Internet TV standard operation, and IPTV can be coordinated development Live will be allowed, but live streaming is now available under operator mandates.

The material said: Recently, Jilin telecom operators and license partners, Jilin station complained to SARFT, resulting in conflicts between countries and places, at this stage, the Administration requested not to cooperate with the telecom operators.

As early as mid-June of this year, the Network Division of the General Administration of Directorate for Internet TV licenses required immediate closure of illegal video software download channels in Internet TV terminal products. The letter mainly criticized Hangzhou Huashi and BesTV.

It also demanded that the seven major licensee parties implement a number of new policies, including removing all overseas film and television dramas and micro-films without a permit in a week.

This series of actions shows that SARFT is stepping up the regulation of Internet TV.