China's largest online KTV 9158 is seeking to enter the U.S. market

Absrtact: China's largest online KTV 9158 is seeking to enter the U.S. market, the company's founder and CEO Fu has gone to Silicon Valley for the U.S. branch site, according to Fu in the micro-trust circle, he visited the Silicon Valley after several office areas have decided to the final site. According to the elimination

The country's largest online KTV 9158 is seeking access to the US market, and its founder and CEO Fu has gone to Silicon Valley to locate a U.S. subsidiary, according to Fu, who has decided on a final site after examining several office areas in Silicon Valley. According to sources, Fu has met with LinkedIn founder Reid Hoffman and discussed the possibility of bilateral cooperation at the operational level.

Fu, who has visited the Google headquarters, Facebook headquarters, Apple headquarters and LinkedIn headquarters, and decided to rent a small office building where Facebook started after a few days of studying Silicon Valley, will begin to officially open up the North American karaoke market, according to the micro-trust circle. Fu did not disclose the content of talks with Google, Facebook, Apple executives and LinkedIn founders, but sources said that Fu's trip to the US branch was only one of the aims of the company, and that it was more important to discuss business cooperation with foreign internet giants.

Analysts believe that 9158 of the moves to enter the U.S. market, in addition to business considerations, reversing the past labelled "ambiguous economy" hat may be another layer of consideration. Fu has previously disclosed that it will see the form of the capital market this year, timing to the U.S. listing plan. But in terms of capital markets, the biggest obstacle to listing 9158 is not revenue but its business being likened to "ambiguous economy", leaving more uncertainty on the regulatory front. Even the competitor YY voice is also in the listing more emphasis on the game, education, the application of the field, and deliberately avoid talking about the reality of the business.

According to familiar with the online KTV market insiders revealed that there is a situation in this field that is being described as "ambiguous economy" by the outside world, but 9158 is more stringent in regulation than its rivals, so the title of "ambiguous economy" at the operational level is not very accurate and brings uncertainty to the listing. 9158 of related people also publicly said that the industry's profit margin is not as high as the outside world, the platform's operating costs, product development costs, maintenance of the video environment supervision costs, staff costs, anchor publicity costs, and so on, combined with the huge cost of 9158 of the gross margin is relatively low.

In fact, 9158 has been in a transitional period in the past few years. For the 9158 transition, Fu explained, products need to enhance interaction, from the past to see the beauty of the beautiful show to sing together, entertainment; business model by the past users to buy virtual items to the anchor, the host to change the items received to limit the virtual items of repeated transactions, and increase transaction turnover of the deduction point rate. While these initiatives have led to a 9158 income impact, they have become more secure in their operations.

According to people close to Fu, in the Fu plan, 9158 is the big business of music. By the end of 2012, China's network music users have reached 435.86 million, the utilization rate of 77.3%, the annual growth rate of 13%; Network video users of the scale of 371.83 million, the use of 65.9%, annual growth rate of 14.3%, these data is enough to support a listed company in the future, The online nightclub model instead makes big business smaller.