Exciting network Lu Wensheng: The reflection of the remainder of the video site

Oral | Lu Wensheng Finishing | Our journalist and Yang financing too late? Three hundred or four hundred video sites are dead, the excitement of the net is not dead. Every time we step in (the rhythm), but not the focus every time. Make VOD exciting Broadband 2005 set up, one months later than potatoes. 2006 it transformed into an exciting net, also more than Youku morning line. We have seen from the beginning, film and television will be video site users of the core needs, so we think the video site business model is advertising, is the media. When we put forward the concept of media portal, Youku, potatoes do ugc,pps, pplive and Thunder do clients. People think we're not cool. Two or three years later, everyone turned into a portal site, Thunder also used to see the Thunder. Another, I think it is a long-distance running, is not a sprint. I estimate that 80% or 90% of the sites died in 2008, just don't have the money to sustain. At that time many VC said, (excited net) This method is not good, want to spend big price to smash, the traffic hit up, I said so burning money can't stand. Market ranking is not important, it is important to live healthily. If you eat abalone, we can have porridge. We slowly wait for the industry to mature. Our shareholder values are very close to ours, they never think that burning money is not the ability, who will not burn money? We are closer to the essence of business, and profitability is necessary for us. But I think that although we did not fall, it was not a success. The year before last I return to normal, must let me tell the student to start a business, I tell them, I am to walk in the way of success, this will be more accurate. We walked a different path than any other video site. The mainstream mode of doing video should be to find VC financing, rapid financing, rapid development. We're not. Exciting Network 2006 online, December 31, 2010 only to get the first financing of the money, it is very late, very late. Compared with the path of Youku, I never thought that the development model of the exciting network should be proud, just to be stable. Not do not want to melt, we always see investment institutions, collect term Sheet. To be honest, at that time our foundation is thicker than others, we have had a successful experience, media investment is also good, supposedly take money should be easier than others. I think we may not be prepared for financing. We feel that the signature will be count. I remember very well that there was a big investment agency saying, when did you get the license? I told him I couldn't promise. I recall the journey, before getting the license, we felt that we could not face the investors. Only after we got the license did we decide to enter the industry formally. That was really the idea. You think too hard and sometimes you lose your chance. Excited network set up more than 6 years, a total of 200 million or 300 million yuan, than our peers burn less money. Things are Kange, though you are big, but when you do it you will measure what you do. Executives also know that we are short of money and can't do it like other companies. June 2010 is not the World Cup, we also try to use the model of burning money. Do 3D, engage in a ball review, not to buy the program, burned millions of.May We know that this mode is not good, to recycle. I envy Koo, Wang Little ah. I think Jingdong will succeed. He (Liu) doesn't want to raise money, I reckon a bunch of investors are helping him raise money. Do you know when my investment project began to be sold? 2006 years. The newspapers and magazines are selling, selling, selling, and getting the money to throw a net. This investment is too big. The gene recycling network has long been profitable, thrift-saving, which is desirable in traditional industries, but not in the Internet industry. It is not profit or loss but cash flow that determines the life and death of a business. Give me another chance, I may also take a lot of money, according to the pattern of burning money to do excitement. But history cannot be assumed. We have been financially conservative. We spend money to see benefits, and have developed a corporate culture. In the brand, we do very little, because there is no direct benefit. We never pursue traffic, only care about a balance, not too high, not too low. Our amortization rules for the cost of copyright are not the same as others, others are the average amortization within a few years, we are 82 amortization, the first year amortization 80%, the second year amortization 20%. We have a strong sense of rule. From the day of the establishment, the excitement began to buy genuine. At that time a TV series one hundred or two hundred dollars a episode, no one to buy, only we buy. We got the first private video license in March 2008. This is wrong. The internet in China will not be successful, at least we should be a bit more. Unlike the general entrepreneurial team, I am the only partner in the exciting network. This is a problem. 2009 years ago I had a bunch of investment projects in the pipeline, and I think my business is to make a strategy. We continue to find professional managers to supplement the team, the beginning of the clear, he also listens to the board of Directors, the board is a budget management, I love to manage the budget. But it turned out to be a soft budget, hard enough. Copyright, personnel, promotion these are spent much, mismanagement waste a lot of money. Why have all these years been so exciting that the net is neither dead nor too beautiful? No entrepreneurial atmosphere, no passion. This is my responsibility, we do not follow the Internet way to make options, not done. We made a stake last year to get our employees to pay for it. The incentive to do so is almost, later did not succeed and take it back, and now again. You see, our equity incentives started last year. It's a little late, it's too late. Again in this industry, and not the internet this set of play, embarrassing results are inevitable. The result may be the way it is. I never liked the pattern that I had to make. But the traditional business model of entrepreneurship to do the internet, not dead is lucky. Success or failure in adhering to the enterprise even if the calm will certainly have the time of impulse. 2010 before and after a lot of big players come in, at that time our traffic ranked four or fifth, but we are impulsive, the Media Center moved to Beijing, in Beijing to recruit a lot of people. There were four hundred or five hundred people in the whole company and 300 people in Beijing. Since the start, IThe most painful time should be said that in the first half of this year, most of the portal business moved back from Beijing to Shanghai, is tantamount to admitting that the past 2.5 in Beijing spent money is beaten water drift. Another impulse was to go to the United States last year, and then we felt that there was something wrong with the U.S. market, which ended in May, with auditors, lawyers and the like. The thrill of living to ten years is largely due to the times. Why we can feed ourselves, we have been relying on multiple income, VOD business since 2006 began to profit. Advertising has accounted for more than 20% of the income of exciting networks, and it is still falling. My traffic is now in addition to advertising, part of it will be converted into game revenue. We do mobile phone games for two years, Java games, hundred treasure box kind, we do very early. PC Video era, is still film and television as King, the next mobile internet, we began to do mobile video in 2009. We are now in fact three division, one is mobile video division, one is the mobile gaming division, one is the Internet Business Department. But the core or video, cohesion users rely on video. These three lines of business as long as there is a line of business, exciting days will not be bad, it may become a public company. Our goal is not as high as the industry leader, we will be a profitable listed company. We can't do a business as cool as a micro letter. Excitement is not a product of the company, we are honest to do their own content services. We do not say to tens of millions of users, we serve 10 million users can be. Nothing but the user how to transform, more than a few channels. This industry is really bitter gourd industry, the media is bitter, earn advertising is the most bitter. Development to slowly look at opportunities, the industry there are many opportunities continue to emerge, we lost some opportunities, let me pain, so I have been emphasizing profitability but not success. But you said we failed, and we didn't. Private enterprises in China are lucky to not die for 10 years. Video industry Undead is the foundation of success, the so-called Hills, hope, as long as there is a chance to live. I think this industry is almost to the harvest season, has seen the dawn. We still think of the exciting network as a long-distance running, probably as a real business, it must have a cycle and process. Our shareholders are more rational strategic investors who think it's not important to go on the market sooner or later. We do not enthusiasm this condition, enthusiasm risk is too big. May 2012, I was the CEO again. Starting in August, I personally participated in the total of more than 200 people in the excitement network assessment. I haven't been so fine for years. "Since 2012, our strategic focus has been on the mobile Internet, on the other hand, the interactive video entertainment community, our star show business." I believe it can improve the sticky problem of video site users, as well as a single advertising profit problem. At present, we have seen some achievements, and in the continuous improvement, promotion, hope to be able to do better. "Noun Explanation: VOD (Video on Demand), i.e. video-on-demand." The VOD service of the exciting network was earlier orientedPC user, after turning to mobile video. Development model: Fosun "does not understand the Internet, very awkward," said the senior executive, "From the outset asked when the profit"? In the view of shareholders, a unprofitable business is a disgrace. and Fosun and Lu Wensheng are not enough "rivers and lakes", not suitable for the rules of the Chinese Internet, "who still remember Youku, potatoes in the year of piracy?" No news plates, no news? Excited network has got two big plates, "the license is not complete, but the hands are very passive." Long-distance running: In Lu Wensheng's view, video website content spread cost than TV station expensive. Bandwidth, server, this is expensive Ah, the TV station that is broadcast type, a star on the OK, to some extent, the video network is to liberate the user's time, but actually pay the cost is very high. There may be a day in the future, the main TV station will be transferred to this side of the time is much better, but you have to wait, this is the reason I understand the long-distance running. Excitement Network memorabilia May 2002, "Chengdu Business Newspaper" and Fosun Group set up Shanghai Exciting Media Co., Ltd., the main casting media, auxiliary cast publication, SP, film and so on. Lu Wensheng is the representative of Chengdu Business Daily. July 2004, the whole restructuring for the exciting Group Co., Ltd. December 2006, excited online line, Lu Wensheng proposed video portal strategy. March 2008, the network received the first private video license, that is, "information network to disseminate audio-visual program license." May 2008, the excitement of the network merged with the parent company's part of the asset group, set up an exciting network limited. In 2009, Lu Wensheng sold most of the investment projects, and in January the network joined hands finished copyright to set up an "anti-piracy alliance". At the end of the year, the Media Center of the network moved to Beijing, the company implemented double headquarters. May 2010, the network received the "Internet News Information Service license", its media attributes have been officially recognized. December 2010, the excitement of the network was 200 million yuan strategic investment, from Jiangsu Radio and television led. This is the first time that an exciting network has been financed. 2011, went to the United States listed attempted, December launched live video interactive entertainment platform "star Show". 2012, the cancellation of Beijing headquarters, contracted in Beijing business and personnel.