"Godfather of study" New Oriental CEO Yu is anxious

When YY announced into the online education, "The Godfather" New Oriental CEO Yu is anxious.

In the circle of micro-trust friends, Mr Yu wrote a manifesto of more than 200 words: YY's new Oriental has been used 20 years ago, at that time, to attract students with free classes, and then part of them into the classroom pay students, and the nature of YY is the same. In addition, Mr Yu said, the new oriental transfer of pay students not only online, but also provide offline classroom landing, and yy only online.

Expressing one's own dissatisfaction with an internet company does not seem to fit with the honest, calm public image that Mr Yu used to bring to the outside world. YY announced the introduction of online education brand 100 Education Network, the new Oriental stock price three days down 14%, and corresponding to YY share price of 8% of the rally.

This is not a pinch between two companies. Electric Business analyst Li Chengdong thinks, after electric business, catering, finance is infiltrated by the Internet, education industry now also face the encroachment of the Internet. This is a value chain redistribution process.

yy Subvert New Oriental?

Just last month, more than YY founder Lee Colling announced that it would invest 1 billion yuan in two years to build online education. Of these, the independent domain 100.com, which is used to enable the new platform for online education, costs 950,000 of dollars.

Even YY angel investor Lei also said that when they know that Lee Colling is going to spend nearly million dollars to buy a domain name, they also feel some luxury, but this is also a sign of Lee Colling's determination to become a big online education.

Lee Colling that yy temperament is a game, entertainment temperament, and education is a serious behavior, can not be placed in the entertainment system, which is like renting a place in the Internet café to open English classes in New Oriental, there are users are users, but the user is to listen to Yu Yu to tell the jokes, rather than to learn English. Therefore, you must enable a stand-alone domain name.

How to use the Internet to reform traditional education? Lee Colling Practice is, do the education area Taobao, the teacher corresponds to the seller, the user corresponds to the buyer. In the 100.com platform, let the teacher open a video live room, directly with the user interaction.

Talking about the problem of income model, Lee Colling that, if the teacher more, the teacher in order to let users know that they have to play advertising, therefore, 100.com can receive advertising fees. In addition, the future can be from the user to pay for the teacher's tuition, or according to the teacher opened the classroom to collect rent. These three models, also can be Taobao, the cat found similar business model.

But Lee Colling this, Mr Yu is anxious, because, Lee Colling to choose Users online class charge high TOEFL and IELTS as a cut-in point, and put it free. Lee Colling said that in the new Oriental newspaper A TOEFL class, no thousands of yuan can not learn.

In order for the newly enabled independent web site to obtain traffic, on the one hand, the 100.com course will be in the content of YY synchronization, in order to flow from YY, on the other hand, 100.com will also develop a client, precipitation of different platform users.

BAT into the Bureau

Li Chengdong that the battle between Yy and New Oriental is just the epitome of internet companies penetrating the online education field. At present, online education is one of the few areas that have not been reclaimed by internet giants, and its O2O characteristics have become the strategic resources that giants are vying for.

In fact, besides YY, Bat has entered the online education field. In Bat (Baidu, Ali, Tencent), Alibaba and Baidu have adopted their own platform plus investment layout of the dual mode.

Online Education web site TutorGroup's B-round financing was led by Alibaba, and with Ali to invest in Temasek and Qiming ventures, investment amounted to nearly 100 million U.S. dollars. This is also the domestic online education sector to date the largest financing.

TutorGroup cut into the field of English training. TutorGroup, head of Yang Zhengda, said that the Chinese adult English training industry is expected to grow by as much as 25% per annum, and the market business is expected to reach $21 billion by 2016. In China alone, TutorGroup expects its sales to reach a three-digit annual growth rate in the next few years.

Before this, Ali's Taobao has opened the "Taobao classmate" platform, the platform flagship video live operating mode.

Taobao classmate head Pers to the "First financial daily" reporter said that in the early test, Taobao students have used the original O2O model and online education Live mode, but soon found that the dual operating model brought about by the customer experience is not good, leading to the user's cognitive ambiguity. After months of consideration and water testing, offline course sales were suspended last October and will be more focused on deepening the online teaching model in the future.

If Alibaba's online education layout is the open platform of its own set up video broadcast teaching, plus its vertical category investment in the education field, thus composing the industrial chain layout of "open platform + vertical investment", then Baidu is a multi point construction platform, plus a more investment in the mode.

For Baidu, education and training ads have once become the second largest advertising after the medical category. and Baidu Mobile end of the revenue mainly from the search, especially in the medical, educational areas of search advertising.

October 2012, Baidu online Baidu Library course zone, the online teacher certification, to provide "video + documentation" type of on-line course resources, and then low-key online education channel, to the platform of the way into the on-line education.

Until the beginning of this year, Baidu Education channel added a full video based on the module "degree School", by the entry of educational institutions to provide free video streaming courses.

In addition to building two different platforms, Baidu also conducted a millions of-dollar B-round investment in the course network last July. Now the network has become an important school curriculum provider, enjoy the huge flow of Baidu.

In addition to Ali, Baidu, Tencent is also secretly promoting online education programs, but currently do not see Tencent's investment in online education to take positive action.

Tencent's online education layout is based on the interactive features of live video and its products. In addition, Tencent also with the help of other clients such as QQ products, enhanced interactivity, in the new QQ2013 new version, a major change is the addition of video interactive function, as well as "PPT demo", "Play the film" and other functions of the QQ group video, which is considered as a good preparation for online education platform.

Hot money pouring in

The data show that since 2013, the total amount of investment in online education has reached 197 million U.S. dollars, the total number of investment cases 25.

Why do so many capital and internet giants start pouring into the online education market?

According to Imediaresearch data analysis, the 2013 China online education Market size is expected to be 92.4 billion yuan, up from 2012 year-on-year growth of 32. 9%. In the next few years, China's online education market will maintain a growth rate of more than 30% per year, the 2015 China Online education market will be more than 160 billion yuan.

and Guotai Securities calculated that by 2017 the market size is expected to reach the current three times times. On the one hand, China's education industry expenditure and GDP ratio of less than half of the United States, only 3/4 of India, the future of education spending still has a huge room for improvement; On the other hand, the internet penetration rate of China from 2008 to 2013 45%, with the rapid rise of the Internet, The gradual transfer of education from line to line is an inevitable trend of development.

In addition to the above, in the media Consulting CEO Zhang, online education can also bring important strategic resources to the Internet giants.

An interesting phenomenon is that the Internet giant layout online education is often to build a video platform to teach the main mode.

Zhang that this is mainly because the internet giants already have the video of the infrastructure, and there is sufficient cash flow to ensure the cost of video bandwidth, but also has the technical ability to ensure that many people at the same time the flow of online video teaching, in addition to live video, interactivity can also meet the needs of user learning and communication.

In addition, the internet giants involved in video teaching, but also conducive to mobile clients, payment areas of strategic layout. And the video website can open up the education channel to launch the course teaching fee pattern, make up the business model that the past relies on buying the copyright to sell advertisement again.

And for entrepreneurs to entrepreneurial opportunities, then more is a vertical category of education in the longitudinal service, improve the test-oriented, work-oriented efficiency of the tool products, as well as tutoring, early education O2O services.