Video site effective business model: VOD

At present, a number of network video manufacturers on demand on the competition, the actual goal is to covet video patch ads this piece of fat. Network Video as a representative of the new media, is now the fourth largest Internet mainstream applications, brought together the mainstream of the crowd, and the emergence of video patch advertising new forms of marketing, this is a huge market opportunity.

Eric Research data shows that at present, users of the network video content demand is pan-entertainment, the most preferred program is still focused on audio-visual entertainment, the daily average of the users have reached the traditional TV to watch the level of 1/3, indicating that the network video has become a netizen entertainment and leisure and access to information important media tools.

All along, the domestic network of video manufacturers are about four categories, the first category is to download, to the Thunder as the representative; the second category is video sharing, with Youku as the representative; The third category is the video broadcast, with PPLive, PPStream as the representative; the fourth category is video on demand, in order to be popular From 2008 onwards, the first three categories of enterprises have begun to give up the original positioning, have to really earn real gold and silver film on demand in the direction of infiltration. And the popular technology leaders, as the world's largest video-on-demand platform, the popular number of independent users more than 85 million, the daily average number of 27 million, the main user group for 25-40 years of high education, high value of people. Due to the technical accumulation in the field of network transmission technology for many years, the popularity of film and TV series more than other similar sites. With the improvement of product performance, its clarity and expressiveness of the advantages of more obvious.

Industry insiders pointed out that video-on-demand from the initial download software, to achieve the bottom look, to launch the world's first video-on-demand software, and now a better experience of the popular 2. 0, only continuous technical optimization, product optimization, platform optimization, in order to win in the fierce competition.

Video sharing sites It's time to think about what really works--cash flow is always the hardest thing to do, not just on the popularity and flow.

Three years ago, when Google bought YouTube at $1.65 billion trillion, domestic video-sharing sites cheered. However, the days that followed were not perfect, although Google had a series of "makeover" on YouTube, but the sharing model had struggled to find business expectations. Recently, the U.S. Business Week even pointed out that Google should turn the video site into a video search engine, not only can search the site's own video, but also should be able to search external video.

YouTube's myth had made China's video-sharing sites grow, but 1 billion of dollars in venture capital did not create a lucrative business: These sites are still in the "burn money" period. YouTube's aura fades away, its charm begins to be replaced by hulu.com, the latter is a free viewing of the authentic TV program Internet site, through the authorization on-demand mode to provide users with video resources.

In the world's largest film and television platform Popular Network CEO Lo Jiangchun, including YouTube global network video sites have realized that only rely on UGC (video sharing) content, it is difficult to support a video site of the future, to the film on demand transition is an inevitable trend. Because of the low stickiness of video-sharing users, the cost of user transfer is generally lower. Film and television on demand has become the mainstream of video, how to play its mainstream value is the next thing to do the entire industry.

Domestic video sites have also been aware of this crisis, Tudou CEO Wang Micro even throw out "video sharing traffic is ' industrial wastewater '" self-deprecating, and began to try the revolutionary type of transformation. Quietly, once to share the pattern of gathering traffic video sharing site, have begun to turn around. Youku said it will be the TV drama cooperation and marketing as the future business focus, and television, film and television production agencies and other content provider Alliance.

Even Thunder also joined the video on Demand camp. Two months ago, to download software for the main business of the Thunder company said it is trying to transform into the online video portal, Thunder CEO Shenglong said, "The concept of the Thunderbolt, film and television content providers will be placed to the thunder of the channel to sell, and as a channel platform for the Thunder from the charge of the ads ”

Everyone knows that video site is "burning money" industry, Tencent CEO Ma said, network Video on bandwidth, server, content resources, such as high requirements, investment is huge, one months to burn 2 million U.S. dollars, so, Tencent will not rashly large-scale investment in this area.

In fact, in addition to the high cost of bandwidth and servers, the most annoying thing about video-sharing sites is that they have been unable to find a good way to profit. YouTube faces a similar dilemma because of the uncertainty about the content of the guest's attention and the amount of content that is not copyrighted. Up to now, only 3% of the traffic on YouTube can be advertised, while the Up-and-comer Hulu is backed by Fox and NBC's two large television stations, all of its genuine high-definition content can be put into advertising.

"What we are going to do is the new TV lifestyle under the broadband trend." At the user level, we want to guide the Internet to a brand new way of life; for advertisers who are accustomed to TV commercials, this means there is no need to add additional advertising creativity and production costs. Lo Jiangchun said, "Advertisers are most concerned about the effect of advertising, they are more willing to add ads in a 90-minute movie, which is more in line with the psychological acceptance of the audience, rather than the ads inserted into a paragraph by the video uploaded by the camera. Because small video regardless of content or expressiveness, it is difficult to carry brand advertising. ”

"The customer experience is critical and the browser-based video-sharing model is a fragmented user experience, fragmented viewing that makes it difficult to form plots and generate lasting attention and stickiness," he said. ”

Lo Jiangchun, who had been the architect of network conferencing systems and project technology leaders at Cisco, was founded in 2005, and the company identified the video-on-demand route from the outset, even when sharing the site. "Video site is a long-distance running, the general direction must think clearly, and then to focus on, insist to run to win." "Lo Jiangchun said. At present, the company has become the world's largest video-on-demand platform, in 2008, with the world's leading Peer-to-peer technology and outstanding performance, the popular name appears in the internationally renowned investment wind magazine, "Red herring" on the Global Hundred list.

This is a technology-led company. Three years ago, it launched the world's first Peer-to-peer software on the side. America's Joost is probably 6 months behind the popularity, and Hulu is 15 months late.

In Lo Jiangchun's view, finding an effective business model is more important than traffic. In video advertising, brand advertising will always be the mainstream, effect-oriented advertising and long tail advertising (millions of SMEs represent a huge long tail advertising market) is a tributary. "A website can insert twenty or thirty ads on a page, but it's not a user's concern," he said. On the other hand, most advertisers do not want to attach the brand ads in the audience unknown, copyright vacancy UGC content, the content of quality, copyright, clarity, more and more become the decisive role of the competitive elements. ”

"The logic of business development must be a good product, and then a large flow and multi-user, then a good business model and revenue." Because good products to invest in human, material, financial resources, so products do good companies, the outbreak point may be back, but by contrast, its eruption period will be longer, more explosive force will be greater. The quality and innovation of products, as well as the persistence and concentration of products, determine the business model and the size of the revenue. Lo Jiangchun said.