Voice on the phone business: The market is hot, the profit is difficult, how long can entrepreneurs persist?

Source: Internet
Author: User

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The traditional media form of radio is getting new life with the popularity of smartphone. The question is, how long can these swarmed entrepreneurs persist in a time when markets are immature and the profit model is not clear?

 

Wen/Miao Zhengjin

In a new studio on the 15 floor of the Beijing Apple community, Jing.fm founder Schkeven, who works every day, will play a little guitar in the company of a new kitten, Simba. In this Bauhaus design-style studio, Shkeven began his fifth venture. Unlike the previous four, this time Schkeven will no longer touch the sound business.

This is not due to the failure of jing.fm. On the contrary, after a complete exit from Jing.fm a few months, there are still customers call Schkeven, seeking deep cooperation on the Jing.fm platform, including BMW's international brands. This is obviously not a start-up failure and stormed the old script, but Schkeven realized that With a small team of more than 10 of its own, unable to win the Jing.fm in the upcoming mobile-radio market, selling the company to give Jing.fm the support of a more powerful group has become the last thing the founder can do with his big "kid".

This may be a microcosm of the current business logic of the mobile radio market.

In recent years, with the popularity of smartphones and the progress of mobile interconnection technology, mobile radio voice business is quietly emerging, radio this traditional form of media, the popularity of the use of smart phones to usher in new life.

Data from the media research show that while the number of people listening to the radio is decreasing, the proportion of people listening to the radio on the mobile side is increasing. By the end of 2013, the number of listeners listening to the radio was 47.8% of the national broadcast audience, up nearly 18% per cent from 2011, and the personalized audio content from mobile radio had become a choice for many users to send their cars, get up and go to bed before bedtime. "Mobile Radio is a sound ' companion ' when compared with looking at a mobile phone, you can continue to do what you want to do, and your favorite sound content will always be with you," he said. Schkeven so describes the advantage of using a mobile phone to "listen to content."

On the other hand, through the user to listen to the content of the background of accurate user data analysis, advertisers and brand dealers have considerable attraction. Now, as technology matures, voice markets are increasingly being watched by advertisers and brands, and a number of companies are beginning to try to advertise on mobile radio.

Hot market, has made the voice around the mobile phone terminal increasingly volatile. Since 2012, jing.fm, excellent listening, Himalaya, Koala FM, Litchi FM and so on to join the competition, each radio stations in the content experience and technical upgrading of the play, a focus on the number of users and profit model to explore the war is underway.

This is clearly not a war in which everyone can stick to the end, at least the departed. But more mobile-radio practitioners still believe that in this emerging market they will find the secret to surviving and becoming giants, thus becoming the last to watch the Schkeven.

Battle of the user volume

For mobile radio stations, the just-finished World Cup is a golden opportunity to preempt users. Analysys International statistics show that in the World Cup began in June, the total monthly active users of China Mobile radio and the total number of hours to listen to a record of the largest single month data. For the World Cup to open 22 new columns of the Koala FM, for example, June per month total users compared to May quarter-on-quarter increase by 34%.

"At present, the success or failure of mobile radio standards have three points, the first is the number of users, the second is the number of users, third or user volume." "In the Schkeven new studio 6.6 km away from the center of Yong-your-A-level café, Koala FM editor-in-chief Wei Cheng to the" financial world "reporter tells a story around the increase in user volume and will soon open the content of thin body movement.

Under Wei Cheng's plan, the Koala FM has to do content subtraction, and the content library nearly 3 million minutes of the program to do thin body.

With the café on the three floor of the same floor, the Koala FM has just expanded its own office area by one fold. In the new office area, the office of the Koala's FM founder, Hu Qing, is well identified, the only room to see a large number of car models and a gigantic radio model through the windows. Hu Qing Another identity is the vehicle language media chairman and CEO, in 2007, before the founder of the vehicle language media, Yu Qingmu is Sohu Auto channel Editor, Wei Cheng is Yu's old colleagues in the Sohu network.

Earlier this year, Wei Cheng to join the old partner team under the persuasion of Hu Qing wood. Yu Qingmu's request for Wei Cheng is simple, hoping to change the impression that the test-pull FM had left behind the "sketch". Wei Cheng still remembers, Yu Qingmu once complained to oneself: "Go on like this, the Koala FM becomes a sketch stage, do we really want to do the sketch table?" The logic of Hu Qing is that the jokes and talk shows on which the Koala FM is based have become the content market for many mobile radio apps, relying solely on these elements to not only plunge into homogeneous competition, but also contradict the overall plan of the Koala FM. "We're going to do what users want to hear, not everyone wants to hear jokes and talk shows." "In Yu Qingmu's view, if you want to provide users with the real needs of content, first of all to achieve diversity of content."

In this logic, Wei Cheng's team selected the program's listening capacity, leaving a popular show to adjust to less popular programs. "In the final analysis, the mobile radio market is fighting for popularity, and popularity comes from the user experience of content, and you have to do it according to their needs." "Wei Cheng said.

Schkeven to this, he said, "popularity or active user volume is the key to the survival of mobile radio." Each time The Advertiser seeks to cooperate with Jing.fm, the first fancy is the amount of users, for the investors, a mobile radio active user level is the key to determine investment.

"Larger investment companies will have dedicated subsidiaries or teams to collect real user numbers for mobile stations," he said. "Schkeven a note for the financial World Weekly, which is the research data that was recorded in a closed-door meeting of investors. It is worth mentioning that these user figures are quite different from the figures announced by many mobile stations. Schkeven's explanation is that investors will not easily listen to mobile radio's own numbers, they will secretly investigate the real numbers. In such cases, the pursuit of a higher user volume is a priority for each mobile radio station.

"Jing.fm almost never implanted a single ad to avoid reducing the user experience because of this behavior," he said. "Schkeven still believe that his original strategy is not implanted advertising is correct, in his view, now is not mobile radio to seek profits, improve the user is now the most should do."

"This is similar to a new enclosure movement. "Eric Zhang Zhanjie, senior analyst at the Mobile Radio, said that in the new enclosure movement, the user is with advertisers, investors bargaining chip," who can survive, in this period of time to occupy the most users, who won. "

There is no doubt that this puts a higher demand on the content attractiveness of mobile platforms. For them, the content of attraction is not only a question of the quality of content, the other side of the coin, is how to enhance the user experience through technology to increase the number of users.

Dragonfly FM CEO Yang Tinghao has been in Microsoft for 6 years before joining Dragonfly FM, and 4 years in Hulu is a technical control. Before he joined Dragonfly FM, he learned about Dragonfly FM, a radio platform, using a friend.

"At the time, I felt the need to enhance the user experience through technology. "First contact with Dragonfly FM, Yang Tinghao feel this is a good idea, 3,000 Taiwan radio has made Dragonfly FM a high-quality Content library, but at the technical level, the Dragonfly FM is weak." Before joining Dragonfly FM, Yang Tinghao has developed a technical roadmap for Dragonfly FM. "The current network environment is not very mature, so I start from this point of view to carry out technological innovation." ”

Unlike many of the mobile radio's recommended algorithms, Dragonfly FM locks Technology Research and development into audio quality. "One is the problem of audio size in the same quality situation, and one is the problem of fluent experience in the case of poor network conditions." "Yang Tinghao said.

But the technology path is not the only point of exerting force. Yu Qingmu recently completed an important draw: persuaded Malaysian musicians Lin Huaxuan to join the general manager of the Music Center. Hu Qing's intention is to rely on the Lin Huaxuan to carry out the upgrade of the quality of the test FM music, the music product market is not lost to the average 46% of Koalas FM listening to music products.

In September 2013, Hu Qing flew to Nanjing, the first contact with Lin Huaxuan, he almost only asked Lin Huaxuan a question: "Now do mobile music products app so much, how does Koala FM stand out?" This is also a lot of mobile radio companies are most concerned about the problem, in the homogenization of the increasing number of times, their products how to reflect the difference?

The answer, Lin Huaxuan, is to provide customized content services to users through the repertoire and analysis of user data that have their own characteristics. But Lin Huaxuan at this point is that feature choreography can be done with the addition of a good DJ, and accurate user data analysis is not easy.

Prior to this, Lin Huaxuan has been working on nearly 10 mainland types of radio stations, every year his team will spend nearly million yuan to the professional consulting company to conduct user behavior analysis and research, to develop and user needs more consistent with content services. However, the research data bought at high prices are often not comprehensive enough and may even have a lot of moisture. "Money spent, bought data may not be helpful to us, but do not buy data is not good, do not know what the user is thinking is not able to make a better program." "Lin Huaxuan said.

This is where Yu Qingmu finally moved Lin Huaxuan. During the first invitation to Lin Huaxuan to visit the Koala FM company, Yu Qingmu showed him the user behavior analysis platform for the Koala FM, a technology platform that was developed as early as the test-pull FM, and was able to analyze the user's preferences for audio content through a simple slide down behavior.

In fact, through the user behavior analysis of customized content push is not the special secret of the Koala FM, dedicated to provide music services, Watercress FM and jing.fm have user data analysis capabilities, and different. Watercress from the beginning of the 2006, began to use the recommended algorithm technology. According to Liu, vice president of watercress, the current bean Sauce FM has been able to do the user in a song 5 Seconds to skip the behavior and in 10 seconds to skip the behavior of the analysis to summarize the common law. And Jing.fm is in the User Behavior Analysis Foundation, added the input keyword to push to send the custom music the search function.

The market is hot, the profit is difficult

The market's wind, let each mobile radio in the content and technology have flashed the killer, but this fiery behind a difficult to cover up the problem is that there is no mobile radio to achieve profitability.

Recently, Hu Qing in the office of the people who wear suits, they are unusually conspicuous in the company, because of the 85 employees as the main body of the Koala FM, casual wear the road. Most of those dressed in suits are from various investment institutions.

When Koala FM was created two years ago, the question most often asked by investors was: "What is Mobile radio?" Now their question is: "How can you win if the competition is so fierce?"

This is followed by more intense market competition. Zhang Zhan, a senior analyst at the consultation, saw 2013 as a watershed in the China Mobile radio market, with "the mobile radio market entering a free-for-all period" in 2013. Through a year of observation, Zhang Zhan found that, along with the surge in mobile radio users, most mobile radio users would not only install a radio app on their phones. "A few years ago there were only one or two, and now mobile radio is a lot of apps, and users are starting to choose more." "This may not be good news for mobile radio companies," Zhang Zhanjie says, "and users may just give you a chance to get to your app, and there are plenty of options on the market." ”

The problem with fierce competition in the market is how mobile radio, the young voice business, can make money. "There are generally only two methods, one is implanted advertising, the other is VIP value-added services." "Zhang Zhan section analysis, the former is mainly the app before the Open Screen advertising page, the application of the most banner propaganda and audio advertising implantation; the latter refers to users who want to listen to no ads or higher quality audio to pay value-added subscriptions.

These two seemingly simple profit models are not simple at the operational level. In the case of Liu, in the advertising level, advertisers are more with the entire watercress company to cooperate, but in the cooperation involved in Watercress FM products, there are few specifically for the Watercress FM come to seek cooperation advertisers.

One let Liu feel helpless detail is, at present many advertisers to carry on the specialized advertisement on the mobile station, also may encounter the product and the advertisement effect other other resistance. "Many advertisers listen to the introduction of the Watercress FM, will ask in the end is the Internet advertising, or radio advertising?" Because most advertisers carry out financial budgets based on media, mobile radio's "mixed-race" identity makes it difficult for them to accurately grasp the financial situation.

The logic behind advertisers ' "uncertainty" for mobile radio is that there is currently no Third-party agency in the Mobile radio field that can produce credible statistical reports. Advertisers in the financial budget, the process needs to cite third-party authoritative data to explain the delivery effect, in traditional television stations, traditional websites, traditional broadcasting and other mature media, the problem does not exist, and the young mobile radio market has not been the third party authorities locked in the research of the target mirror.

This is also the trouble of Zhang Zhan festival. He has been hoping to investigate a detailed mobile radio research report, but the large number of mobile radio applications on the market has undoubtedly increased the difficulty. "At present, no consulting firm has the ability to study the mobile radio market data clearly." ”

"In fact, I would prefer mobile radio to receive a value-added fee for users, rather than ad implants," he said. "In Yu Qingmu's view, the implantation of advertising, especially audio advertising is very harmful to the user experience, but the current Chinese music market is not mature, willing to subscribe to value-added services, few users."

Liu's Watercress FM also provides value-added pay services, users can get ads and better quality audio content, "but there are too few subscribers to subscribe to such services, for Watercress FM can be ignored."

A deeper problem is that the current mobile radio in the field of cooperation in the area of different depth, and some radio almost no implanted ads, and some radio has been a lot of trial advertising cooperation. "There are a lot of homogeneous content services, there is no advertising, and some have done advertising attempts, users may be tired of these trial advertising and give up the entire application, and if not try to advertising and not good to negotiate cooperation." "Liu believes that this shows that the whole industry is in a state of groping, everyone knows where the final destination is, but how to do it has not really thought clearly."

"Mobile Radio is still a long way from talking about profitability," he said. "Yang Tinghao's views have been recognized by many people. Hu Qing also feel that mobile radio is now profitable "not".

However, the advertising revenue is not optimistic at the same time, copyright, server costs, such as a series of costs have been rising, difficult to profit mobile radio has become a big spender.

In the heart of Schkeven, 2013 is a pity. Let Jing.fm all of a sudden into the winter, it is the 2013, the Chinese music business history of the highest copyright costs, for the jing.fm of music content, each monthly average of nearly million copyright fee, so that the more than 10 small team unbearable. And for the user experience, refused a variety of advertising cooperation jing.fm at this time is almost a reliance on investor support net deficit households.

Schkeven before the choice of two, one is to continue to find investors financing, the second is to sell jing.fm. At that time, Jing.fm already has a monthly 500,000 active user volume, according to Schkeven own words, "500,000 of the user is actually very awkward, not small". Schkeven, the so-called embarrassment, is that 500,000 of the active user, although not small, but not enough to motivate investors to further support jing.fm for copyright purchase, and to maintain and increase the number of users must be copyright input. "For investors, it is not worth continuing to invest in a situation where the profitability is not clear." ”

Schkeven have been looking for more than one investor, but they also seem to be concerned about the plight of the jing.fm, often the first question asked: "Copyright issues how do you solve?" This is almost the direct reason why Schkeven decided to leave the lake.

In fact, the issue of copyright fees is not a problem for music stations. Koala FM is the vehicle language media layout mobile end of the product, in a sense, is also the vehicle language media's most money-burning products, and the money is almost mainly spent on royalties. During the World Cup, Koala FM launched the "Listen to Brazil" feature, and the cost of the program's copyright purchase on the million-dollar scale.

Find an exit

The cost of making the profit model hard to fall and the high costs of royalties makes the mobile radio business a bit of a loss.

For them, a seemingly realistic opportunity comes from the car. At present, the car enterprises are speeding up the car entertainment system to build, car radio is any vehicle companies are unwilling to give up a link.

Volvo has been working with the Watercress FM since 2013 and has a built-in Watercress FM application in the automotive sensus system. At the time, the only standard for Volvo to consider mobile radio was the user experience. "The cozy space in the car is the goal of Volvo's entire sensus system," said Ting, director of Electrical and electronics at Volvo's China Technology Center. ”

For mobile radio stations, when the car factory to achieve their own built-in application is to improve the amount of gold means, this will not only bring a considerable number of users, but also according to the owner's consumption ability to carry out accurate advertising. To the satisfaction of Liu, Volvo does not restrict the placement of FM in the program ads, the only requirement is not to the other car companies to advertise. This is an opportunity for Liu.

Car Entertainment market development speed, so that more car companies sit down. Ford Product and business development Director Woshijie introduced, in the choice of applications, Ford conducted a preliminary investigation, found that car owners in the most commonly used applications are radio and navigation.

Yang Tinghao, after taking over dragonflies, began experimenting with Dragonfly FM's multi-platform compatibility technology, which now seems like a good move. Because the car systems of different vehicles are not the same, although many car companies now see the Android system as the main direction, the compatibility problems caused by hardware are still unavoidable. 2013, Ford contacted Yang Tinghao to seek cooperation, due to prior technical breakthroughs in compatibility, Dragonfly FM quickly appeared in the Ford car system.

However, although the car companies have "voted with their feet" to express the positive for mobile radio, but there is still a large allocation of mobile radio is worried about the prospects for development.

Zhang Chunhui, China's voice commentator, recently rejected several mobile stations for "settled" invitations.

"I don't think mobile radio is a good business, audio from the media will hit it." "The reason why Zhang Chunhui voted against this is that audio from the media, such as micro-signaling platforms, may be taking users from the emerging mobile audio market."

It is noteworthy that, whether mobile radio or audio from the media, the target market is a search for "sound accompanied by the state" users, and these users often use audio products in the early morning, the road, such as fixed time plate. For some "voice writers", the rate of listening to a single program, and the appeal that mobile radio offers to authors, may not be more than a media platform.

Wu Yu, a 25-year-old host of mobile radio stations, is in charge of a 15-minute entertainment program. Two months ago, she terminated her cooperation with the mobile radio, "I think I might as well do a micro-letter public number or app." Wu Yu made such a decision, because she felt that mobile radio to host the personal brand is not the same as from the media. "In the form of media, I can communicate directly with my subscribers, and in mobile radio mode, I'm like a guy who's seen in a cage and doesn't know who I am." "Wu Yu said.

The question of mobile radio is much more than that. Schkeven that, as far as music radio is concerned, if royalties are still high, it will not be good news, whether for Watercress FM, jing.fm or emerging mobile music stations. "Mobile Radio is burning money and will continue to burn for years. "Liu recently tried to diversify in the business cooperation of watercress, but in the face of the immaturity of the industry, many of his ideas are not easily landed."

"In fact, now is a shuffle before the stage." "Zhang Zhanjie believes that the current threshold for mobile radio entry is very low, in the profit model is not clear, the various mobile radio stations are in the trial phase," it is likely a year later, a large number of mobile radio will die. ”

In the face of the coming melee, major mobile radio stations have begun drafting their own rondo. Yang Tinghao's latest attempt was to introduce campus radio into the Dragonfly FM platform. For Dragonfly FM, the power of campus radio can not only cultivate young users, but also by virtue of the precise nature of its content to enhance the spread of influence. "Campus Radio is actually very customized, the dissemination of good results." "The statistics from Dragonfly FM show that in foreign countries, campus radio development is very hot, its listening rate between 20% to 50%, far beyond the country."

At present, Dragonfly FM is to build a radio union around the campus youth, the students in charge of campus radio can play at the Dragonfly FM terminal show, also can play Dragonfly FM Content Library program. The strategy of laying the youth market is seen as an important move by Dragonfly FM.

In a sense, Yang Tinghao's attempt coincides with Schkeven. Recently, Schkeven is spending a lot of time in high school "making up" through friends, and he chats, classes and plays with high school students, "The reason is very simple, I just want to know what these young people want."

After all, catching young people is the begotten of success in the mobile internet era, especially for mobile radio.

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