Development strategy and media communication, that the video industry to the stage of profitability

Archie Art CEO Gong today on the 2014 development Strategy and media communication, he said that although the outside world believes that the video industry to the profit stage, but in fact the road is still very long, stable profit time is still very far, Archie Arts 2014 will not achieve profitability.

Continue to seize the market share of users

In a media interview early in the 2011, gong on the topic of profitability, said the plan in the next year to achieve profitability, but in fact 3 years later, the video industry pattern has also changed significantly, Gong had to deny 3 years ago, and made it clear that 2014 100% will not be profitable.

At present Archie Art in 2014 has disclosed the investment has: 200 million yuan buys the comprehensive arts, 300 million yuan invests in the self-control. In fact, the various video sites are the focus of this year's content, especially self-control, video sites as a way to reduce copyright costs to increase advertising revenue.

Will such a high investment have a scale of output? At present, no one can have a positive answer, and in Gong view, this is some water test, and must be large-scale to test water, these need to be vigorously invested. In the past year at least, Archie has not had a small cost in acquiring PPS, buying copyrights and making self-control.

But there is also a high-profile announcement of the upcoming profit of the video site, that is already listed, and the merger of the Youku Potato. And Youku's high-profile announcement of the next quarter will be profitable, also seen as a preemptive capital. After all, there have been rumours that Archie is likely to be listed in 2014 and has started looking for underwriters.

Gong, as always, does not comment on the listing, but he denies the previous plan, "a lot of people ask me if I can make a profit in 2014, and my answer is that 100% is not profitable this year, and this is by no means the most important factor to consider." ”

Gong believes that the video industry is still a high-growth period, and at this stage it must be to preempt the client's market share, rather than the size of the revenue side. "This is the most important issue that I will consider next year, so the budget is planned for this strategy." ”

Why do you spend so much effort

The most important investment of Archie Art in 2014 years, is 200 million yuan to buy the 2014 Hunan Satellite TV variety show 5, including "where the father to" the second quarter, "Happy Camp", "Day Up", "Big Show" and "We date Bar", and the implementation of independent and distribution strategy.

In addition to the above Hunan satellite TV system, Archie Art bought exclusive comprehensive arts also include "Kangxi to" as well as including the original "Dad!" Where are we going? Korea series of Comprehensive Arts.

In fact, the price of the copyright of comprehensive arts has grown very large last year, according to Gong revealed that the previous 6 million Yuan can buy Hunan satellite TV all the Year (non-exclusive), but now a full range of arts and crafts in the first quarter of the price will reach 10 million yuan. And so great strength to do the reason of the comprehensive arts, is gong hope in this field to strengthen the brand of Love Qi Yi.

In the hot TV market situation, why Archie Arts choice of comprehensive arts? Gong explained for the TV market is now a social independent production company, and video site communication is not smooth, if there is a good work, the next step will certainly raise the price, and the highest bidder, is unlikely to form some of the mutual benefit relationship.

But can not avoid is, good variety show also has the situation of high bidder, such as Tencent video cost 250 million yuan to buy "good voice of China" third quarter network copyright. However, gong that the same is about 200 million yuan, Archie through the executive power of almost all of Hunan satellite TV Mainstream, this is a problem of executive power rather than strategic issues.

Especially if the 2014 Archie is good enough to return money, at such a high cost can still recover costs and profitability, 2015 Archie Arts in the copyright investment will spend more money, and the Archie art brand image can be continued to strengthen.

At least the current "where Dad Go" second season network title has been finalized 66 million yuan, the comprehensive arts channel also received 10 million yuan sponsorship, these in gong seems to be a good start in 2014.

For the same Sohu faction video industry player Charles Zhang, Koo, gong that Sohu video in the market and brand to do a good job, and Youku in the overall strategy to do better, did not make a big mistake. "Charles Zhang is the extreme of sensibility, Koo is the extreme of reason, I do compare medium and good." "Gong said.