Bo: The "left" of the video website is king

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Statistics show that the amount of Internet investment in 2007 decreased by 27.7% compared with 2006. In the last year, venture capitalists have made no investment in the new entry, in addition to making additional investments in the already-invested video sites. And video industry is a capital demand is very large industry, only Tudou a bandwidth costs more than Sina, NetEase, Sohu and other portals of the total cost of bandwidth. What impact will the reduction of venture capital have on the video industry? Will the video industry enter the era of integration? With questions, the reporter interviewed the internet celebrity Bo. In his view, video-sharing site is not currently necessary to integrate, but the video site to tide over the difficulties need cross-industry cooperation.

Reporter: 2007 Internet investment amount is reduced by 27.7% compared with 2006, which are the main reasons? What impact will this have on the video industry?

Bo: Internet investment is reduced, on the one hand, a pullback in investment growth over the past two years; On the other hand, because of management ideas, the upgrading of management technology and management, and the maturity of the chain business model, the traditional industries, including catering and consumer goods, have emerged with large investment opportunities, which have attracted a lot of investment. Of course, the Internet, especially the Web2.0 related areas have not been able to bear commercial fruit, but also to some extent, to combat the enthusiasm of venture capital. There is nothing to be alarmed about, and the reduction in investment is conducive to the return of rational Internet entrepreneurs. Venture capital is profit-making, so long as it can truly create value without fear of investment.

A large number of video sites down, and investment reduction has a great relationship. The user's demand for Internet bandwidth, in general, is also in line with Moore's Law, that is, bandwidth is getting bigger and cheaper. In the long run, the bandwidth cost of video sites will be getting lower, but at this stage, video-sharing service is a business that needs a lot of financial support. On the other hand, under the special conditions of China, network video is an investment area with huge policy risks. Although the commercial prospects for video applications are very tempting, the huge investment and the huge policy risks that deter venture capital are normal. However, video sites that have been given venture capital and have gained market leadership should not be affected much, but the door to the video app has been largely closed for later.

Reporter: Nearly all big video website's Mister All said 2008 is the video website profit year, the matter development whether really can as they wish?

Bo: Whether big video sites can make a bad profit in 2008, but 2008 is certainly one of those sites that actively explores the scale of the profit model for the year. Video-sharing services do not have the mandatory television programs, its profit model can not copy traditional television stations. But on the other hand, policy constraints have in fact become a shield for existing players because it prevents competitors from entering and limits competition in the field. This may become Tudou, Youku and other market leaders of the positive factors.

Reporter: The video industry is a capital demand is very big industry, the reporter grasps the data to show, Tudou one's bandwidth cost surpasses Sina, NetEase, Sohu and so on many portals bandwidth total cost. What would happen if there was a lack of capital investment?

Bo: Since capital is bullish on this "game" of long-term returns, they will naturally not let the upfront investment. For market leaders, money will not be a problem until they can fully support themselves. Like Amazon, which burned up large sums of cash during the dotcom bubble, its CEO, Bezos, was criticized. But from today's point of view, the original Amazon burned the money did not burn in vain, but turned into its core competitiveness, its perfect warehousing, logistics system and huge network storage and computing capacity, is to bring a steady stream of new profits for Amazon. A business that requires money must be invested well enough to produce extraordinary returns. I believe investors understand this more than we do.

Reporter: March 14, Tudou to move the name of the computer room to stop the video browsing and uploading, whether there is any hidden?

Bo: Tudou has issued a system maintenance notice several hours in advance, which is normal for internet companies. But many media have exaggerated this incident, there is a kind of waiting to see the joke mentality, I think this is not normal.

Tudou's experience shows that many things are not as good as they seem. I have asked the Tudou CEO Wang Micro, you do Tudou is like you decided to ride from Lhasa to Kathmandu, you know will be very difficult, but did not think it will be hard to almost can not go on? In any case, Wang completed the ride from Lhasa to Kathmandu.

From the industry point of view, I believe that the SP industry-wide life as dead, has clearly told the entrepreneurs and investors, although the initial time you do not see any risk, but you have to remember that, walking past, you may become the party committee secretary, the party committee secretary of the Guest House. No way, you are a martyr, few people remember you.

Reporter: Do you think the telecom operators have the possibility to intervene in the video industry?

Bo: For the internet business, the advantages of the system outweigh the advantages of resources. This is the reason why Tudou and Youku are doing well than CCTV international. The system of telecom operators has decided that they can make a lot of money in the business of administrative monopolies, but they have no boast of performance in fully marketable business. Telecom operators, of course, may be involved in the video industry, after all, they have a lot of money, there are ready-made bandwidth and users, they "waste" can afford. They can also buy an existing video site, from the point of view of capital withdrawal, more than a few buyers of course is not bad.

Reporter: In addition to telecom operators, video industry integration of the probability of how much, in what circumstances will occur integration?

Bo: I do not see the need for video industry integration, video-sharing site competition is still in the phase of homogenization competition, there is not much complementarity between each other. Video industry "The remainder of the king", the user will naturally transfer to a few live on the site, if a Web site can not survive, it is not even the value of the acquisition.

At present, the video site needs to be bigger and stronger as soon as possible to establish a sustainable scale profit model.

Industry integration is not necessary, but cross-sectoral cooperation is very necessary. Video-sharing sites, for example, collaborate with community sites and mobile terminals, which can help video sites expand distribution channels. Earlier this year, David Eun, vice president of Google content, revealed that the iphone has become a "huge source" of YouTube traffic because of the simplicity of the iphone's built-in search and playback capabilities for YouTube videos.