Behind the turbulence: The triple game of capital, entrepreneurs and competitors

As an important asset of Shanda literature, the beginning of Chinese network its recent personnel unrest, so that the latter's listing of the road variables, and the beginning of the founder Wu Wenhui intention to start the news, but also to the entire network literature market incalculable impact of the author, as well as with the author close to the editor, is the starting point as the core of the original literature website. To this end, the Grand literary CEO Hou is busy around the "fire", on the one hand to the "Daily economic news" reporter stressed that the beginning of the staff turnover is not out of dissatisfaction with the company, on the other hand to the beginning of the author promised: will not cut welfare, welfare system will be better

In fact, there have been similar events before Shanda. In our country video site ranked in front of the 酷6网, in the Grand acquisition, founder Shanyou was accused and grand between the conflict, the final outcome is shanyou leave, 酷6网 exit the mainstream camp this time, the founder and Grand, the contradiction between the beginning, and what will end?

Shanda's grand web of literature Shansia in the run-up to the IPO.

There are reports that more than 20 employees from the beginning of the group to flee, and the founder of Wu Wenhui is running around, and Baidu, Alibaba and other internet giants to create a "new starting point." The beginning of the full name is the beginning of the Chinese web, is a grand literary operation of the original literature site, is also intended to be listed in the grand literature of an important asset.

March 6, the Grand Literature CEO Hou in the internal mail to all employees that the beginning of some employees resign, the board has approved their request, he will be directly responsible for the starting point of work.

March 12, Hou in the "Daily economic news" reporter interview, admitted that there is indeed a beginning of staff turnover, but Shanda literature president, beginning Chinese general manager Wu Wenhui still in office.

He says Shanda's literature has built a complete, closed ecosystem, "even if other companies enter the field, it will not affect us". In his view, the starting point has established a mature platform, the grand literature industrial chain closed-loop construction, the possibility of leaving the author is very small, but do not exclude individual authors leave.

He told reporters bluntly: "If you say that there is no effect, it is not possible, but it is not said that a few people will destroy the platform, it is impossible." ”

Another core client of the incident, Wu Wenhui, remained silent and did not receive an interview with reporters.

Shanda, which launched its IPO last May, was delayed by market factors, and the company launched its IPO on February 5 this year. According to media reports, Shanda group insiders revealed that Shanda's plan to restart the IPO this April has not changed.

Grand literature "Bones"?

It is no coincidence that the beginning of the high level team changes.

A senior reader at the beginning told the Daily economic news reporter that he knew the starting point would be turbulent two months ago, "some authors have told us in advance that they will not update the article at the beginning, but also change jobs".

In the industry, the storm on the impact of the grand literature "no less than a 7-magnitude earthquake", the root cause of the grand and founder of the operation of different ideas and benefits distribution uneven. Before the loss of network literature, entrepreneurial stage of the parties can coexist peacefully, and with the improvement of the industrial chain and wireless reading brought about by the profit, Shanda literature and its subsidiary management of the contradictions between the increasingly intensified.

According to the latest F-1 documents submitted by Shanda Literature (some listed companies outside the United States have submitted to the SEC a registered listing document), the company valued 800 million dollars, 2011 annual revenue of 701 million yuan, the first quarter of 2012, Shanda literature main business income of 191 million yuan, net profit of 3.06 million yuan, the company for the first time.

The departure of the employee was confirmed by Hou, but he stressed that the reason for leaving the job was not "out of dissatisfaction with the company": "Most of the employees who left the office were left for family or other reasons." Can continue to work together is to see fate, I will not have any demand and retain. ”

An industry personage who declined to be named said to reporters that in addition to the Cloud Bookstore is a grand literary team operation, the other part of the acquisition of investment acquisitions, so in the actual operation process, the content of the competition has always existed, "especially the beginning and grand cooperation earlier, and is fully holding, Wu Wenhui qualifications are more than Hou, Not willing to take a second place is natural, plus the entire team in the company's internal status is very high, the occurrence of this group exodus is not surprising. ”

The personage analysis, the beginning personnel change, to the grand literature influence will be "bones", "the starting point in the industry has established own set of complete system, not other subsidiary company easily can replace." Once its influence is weakened, or even Wu Wenhui, the entire Shanda literature's revenues, including the IPO process, will be affected. ”

A netizen claiming to be an insider at the beginning of the network published an article on the internet, as a grand literature of the company, the starting point contributed to the grand literature of nearly 40% revenue and tens of millions of yuan of profits. and pointed out that in this context, the starting point of business has been shrinking, and the treatment of injustice, these are the beginning of the core editorial team to leave the main reason, "when there is the name of the group, and the main force is the starting point, the literary group's full copyright has become the shackles of the starting point ..." The copyright of the starting point has been taken away is the right to operate mobile phone, mobile base operation Rights, third-party cooperation rights to operate copyright, film and television derivative rights to operate rights.

The person's claim has not yet been confirmed by Shanda literature, but the copyright that it refers to is "collected" is the "cash cow" of Shanda literature. The reporter learned that the grand literature profit mainly from online charges, wireless services, online advertising and copyright sales. Wireless services have grown rapidly. The business 2009-year revenue of only 5.763 million Yuan, 2010 reached 60.415 million Yuan, 2011, the business revenue year-on-year increase of 188.2%, to 174 million yuan, this income mainly from the telecom operators to pay the content of the split.

For the above point of view, Hou do not agree, he asked reporters: "Like a newspaper, it is not possible to each layout to be equipped with separate sales and distribution staff, even if I give you the starting point of the mobile phone operation of the authority?" Is your family to talk with the operation of the emboldened, or the grand literature with all the resources to talk about the emboldened? ”

He stressed that the starting point is a wholly-owned subsidiary of Shanda Literature, if the contribution of the focus of the starting point is unfair to other subsidiaries. Grand Literature from the beginning to follow the beginning of the focus on content production, Shanda literature is responsible for marketing system, copyright derivative and brand building system, "I certainly will not because of this storm and change this system arrangement, the future will still adhere to the big and strong industrial chain."

As the "potential shares" of the Grand Group, the "beginning Storm" of the grand literature has obviously been valued by the senior group.

March 11, Grand Group CEO Chen Tianqiao Openings "Hou", said in recent years, the development of grand literature has leapt to a new level, which shows that Hou as a professional manager, as the CEO is competent, "under his leadership, whether it is a grand literature, or the beginning of the Chinese network will have a better future." We will fully support him to continue to be bigger and stronger. ”

Hou Xiao Qiang urgently appease the author

How important is the author's resources to the starting point and even the grand literature?

Beginning senior user Zhang Yong (alias) to the daily economic news reporter said, the reader is not the site, but his favorite author, "If I like the author to go to another site, I certainly will not come again." Any other factor doesn't matter. "Their heavy users are also looking at the starting point, and around the" Great God "author (usually divided into millions of dollars and more than the author) formed one after another circle.

However, the "Great God" author is a minority, the data previously disclosed in Shanda literature shows that among its 1.6 million authors, the number of "great God" authors has been broken. More writers are still struggling at the bottom, not getting the enviable revenue.

Zhou, who has published two hundreds of thousands of-character novels at the beginning of the Chinese web, told the Daily Economic news reporter, "the terms of the contract are more stringent." For example, 5 years must be guaranteed in the starting point, and not with other publishers to cooperate, I find it difficult to accept. At the same time, since the beginning of the editor mastered the work can be the first page, can be placed in the list of power, so that many writers in the writing, but also have to bother to "please" edit. Zhou slowly gave up the interest because he thought writing at the beginning could not sustain his basic life.

This beginning part of staff turnover will take away how many author resources, become put in front of hou a huge problem. From the beginning of the storm, Hou began to frequent Weibo hope that with the authors to establish "mutual attention", and then emergency release Bulletin security.

The reporter learned that the starting point has set up a creative support mechanism, hoping to change the author's single reliance on the model of royalties. In the specific operation, the contract works began to sell and meet certain conditions, regardless of the market response, the site will be funded for the writer to provide 1200 yuan/month subsidy.

In addition, the beginning of 12th in the "author zone" issued a notice, the guarantee of the beginning of the Chinese network, the beginning of the female network of the existing author benefits will not be cut, at the same time, is also urgently discussing more new welfare policies. "The welfare of the starting point will only get better and more comprehensive," he said. "We are committed to no cuts to the full attendance award, the half Year award and the wireless benefits that everyone cares about most."

In an interview with the Daily economic news reporter, Hou admits the past to the beginning of the "tube too little", resulting in no direct understanding of the needs of readers and authors, "The future I will spend more energy here, I hope that the author in the grand literature here to achieve their own value." ”

And for the outside "Wu Wenhui get Baidu hundreds of millions of yuan investment and will be on their own" rumors, Hou said it is not clear, he thought, if the beginning part of the staff left a start, Shanda literature will not exclude the use of "non-compete" clause, "Shanda literature has preliminarily completed the value of closed-loop construction, for the competition has nothing to fear."

Beijing Hui Cheng law firm lawyer Zhao Occupy in the "Daily economic news" reporter interviewed, said: "Non-compete" clause on the beginning of the departure of employees are binding, from the original signed labor contract decision. If there is such a provision, it is necessary to see whether the employees paid compensation for the turnover of the royal literature. The period of application prescribed by law is normally two years after separation. ”

At present, Wu Wenhui has not yet resigned from the grand literature. A person in the industry judged, "the two sides may still be in the game, how many people go, and how many resources and authors can take away, which requires a process." "Perhaps, as Hou said, this incident has become an opportunity to improve the interior and improve the details," a wall fell, as if it were made into a window.

Fierce competition in the market

Even though Xiao Qiang is easy to say, Wu Wenhui's whereabouts are far from over.

Industry analysis, the starting point of the personnel unrest and outside the olive branch is not unrelated.

Baidu has suffered "infringement" accusations, and the royal Literature of the copyright dispute has not stopped, until last September, the uproar of the author of the League of Rights against the Baidu Library case in Beijing Haidian court sentence, Baidu was sentenced to Han, He Ma, mu Murong compensation amounted to 145,000 yuan.

But Baidu-related people told reporters that it was not clear. However, the person thinks the possibility is not very big: "As we all know, the core of the literary site lies in the author, Shanda literature has mastered a large number of original author copyright, this is not just the starting point of the core staff can break through the barriers." It would be hard to convince investors, if only by Wu Wenhui personal resources. ”

Sun Pelin, an international analyst at Analysys, said in an interview with the Daily Economic news reporter Baidu also intends to strengthen copyright protection, improve the electronic reading profit model, the transformation of Baidu Library is to take the "access to authorization + Free browsing + pay reading" mode, that is, by obtaining authorization to protect the library legality, to enhance content services, To pay for the copyright works, "This will inevitably compete with the royal literature directly." Therefore, the investment Wu Wenhui's starting point team is also completely possible, intends to use the network literature to create an end user entrance.

and an unwilling to be named the original starting point co-founder also to Baidu Investment Wu Wenhui can, "or should let Wenhui himself, of course, he has not left, not convenient for foreign speaking." ”

The personage thinks, the Baidu enters to the network literature profession is good, the industry participates in the enterprise more, the industry will become more prosperous, "but also is not only Baidu, should many home all want to come in, because the digital literature is one has the huge potential and the bright future industry." On the other side, whether or not Baidu comes in, should actively combat piracy protection copyright.

In addition to personnel changes, Shanda literature in the market competition is not easy to relax.

In the latest F1/A documents submitted to the U.S. SEC in Shanda literature, according to Iris statistics, according to the revenue calculation, 2011 Grand literature's five original literature website, occupy the entire market 72.1% of the share of the beginning of the Chinese network, novel Reading Network, tea Tim Incense, Xiaoxiang College, Romantic novels. The share of these 5 sites, respectively, is 43.8%,9.0%,7.7%,7.0%,4.6%.

In addition, the royal literature accounted for 50% of the Jinjiang Literature City, 2011 accounted for 8.1% of the market share. The perfect world's share of the Chinese network of 4.5%, the Chinese online 17k website share of 4.3%.

Visible online literature field, Shanda literature has maintained a leading position, but in the mobile reading market is facing many challenges. In addition to the wireless reading platform built by telecom operators, Ireader-reading, 91 panda reading, QQ reading, tower reading, etc., based on mobile terminals, are all on the mobile internet to form a squeeze on Shanda literature.

In this environment, the original starting point of the co-founder of the prospect of pessimism, he told the Daily economic news reporter, "What happened today, we look at the grand game, see Cool 6, look at the winger, it is easy to think that this is the future of Shanda literature." ”

November 2009, Shanda buys video website 酷6网 2011, Cool 6 founder Shanyou quit, cool 6 lay off 20%.

Sun Pelin that the beginning of the personnel unrest to make the grand literature on thin ice, Hou repeatedly speak also is to explain his nervousness and care, "but literature is the need to nurture the industry, can not be too quick success." This requires the support of the Shanda group, rather than a quick push to get the market to return.

Competitor of starting point, 17K founder, Liu Ying, general manager of "Blood pay 17K," the net name of the public analysis that the literary site in the fierce competition in the market, under the increasing cost pressure, in order to survive, must seek capital support, which is the core reason of the combination of capital and literature, and literature is slow business, Capital pursues value-added speed, which is the fundamental contradiction between capital and literature.