Hou "My farewell letter" through Weibo

December 12, the Grand literary CEO Hou through micro-blog released "My Farewell Letter", officially announced to the outside world because of his physical reasons will resign the Grand literary CEO position, to be a senior advisor to the grand literature. Hou The departure of the grand literature earlier had rumors and omens, the reason for the resignation of a time also triggered a variety of speculation and discussion, become a hot topic. But Beijing newspaper reporter through interviews with a number of industry veteran practitioners understand that the real reason for Hou resignation is also the Wu Wenhui team turnover caused by the chain effect. And Hou's departure will also trigger a new round of industry competition, the network literature market pattern will usher in a great change, the development of a decade of emerging industries, will once again become the focus of attention.

Explanation of reasons for Hou resignation

Direct cause

IPO frequently stranded Qiu Wen Superior

One of the major incentives for Hou to flee is the frequent stranding of Shanda literary IPOs, which hou the Chen of the Big Boss. There is a grand insider to the Beijing business newspaper reporter disclosed that hou before leaving the Chen reached a consensus: no spit slot. The relationship between two people is self-evident. Shanda Literature 2011 in the U.S. Sprint listing, a few twists and turns to failure, Hou for this in the company burdened with pressure, Chen also hou attitude change. And the appearance of Chu Wenyu, let Hou almost at Chen Tianqiao place completely out of favour.

The 2012 Shanda literature was again submitted to the IPO application, and BofA Merrill Lynch, its IPO main underwriter, was Chu Wenyu. Prior to the Chu Wenyu has been on the grand literary love, once even set up a single purpose fund, want to invest in grand literature to become shareholders. Because of the IPO, Chu Wenyu and Chen overpass contacts very close, and finally won the latter trust, in November 2012 joined the Grand literature as chairman.

The recent Shanda literature, which has been financed by Goldman Sachs and Temasek for about 110 million dollars, has eased the pressure of capital, which is Chu Wenyu. Chu Wenyu of the emergence of the hou of the status of a step by step, perhaps Hou do not care about how many shares in the grand literature, also do not care about how to rise to the position, but a big boss not to pay attention to the CEO, its existence meaning in the end how big?

Core Reason

Wu Wenhui team run away grand loss

The core reason for Hou to leave the grand literature is also the "Wu Wenhui team turnover incident". Hou in the work has been a "ruthless" person, he is bent on creating a copyright as the core of the whole industry chain, the need for the grand literature has the absolute leading power. But the network literature circle is a "Robin Lake". Hou had a foreign outspoken: "(Shanda Literature) so many subsidiaries, each subsidiary has founders, there are a lot of professional managers, there are grassroots have so-called elite, there are southerners, the elderly have new airborne people, office location is also distributed in several different places, it is more complex than others imagined. ”

Wu Wenhui and Hou Qiang are particularly sharp contradictions. Early this year, the starting team originally wanted to rely on their own is the grand literature "money source" status to hou more to some interests, who thought "strongly" Hou Xiao Qiang "Pain Killer", "Shajijinghou." So Wu Wenhui simply led away. There are rumors Hou this move did not even report Chen flyover, after the incident Chen flyover rage unceasingly, because he is clearer than anyone, lost Wu Wenhui team's grand literature "hematopoiesis ability" greatly reduce. Hou therefore in the grand internal downfall, and because the grand literature to prosecute former employees Loli and some writers and other events, Hou in the industry to recruit "notoriety." Under internal and internal turmoil, there is no law other than resignation.

Network Literature Industry Change Bureau

"Hematopoiesis" in Shanda literature is not guaranteed

After five years of the reign of the grand literature, Xiao Qiang's departure has also become the watershed of industrial development. After this year's network literature pattern, will be changed dramatically. Grand Literary tyrants are lost, scenery is no longer a foregone conclusion. Shanda Literature once occupied the network literature 70% market share, but with the Wu Wenhui team turnover, this market share drastically reduced, there are senior personage analysis, the next three years of grand literature accounted for the market share will be reduced to 50% or even 30%, a single big situation is difficult to repeat.

17K novel network editor Liu Ying Analysis, for Network literature website, the most core development motive is "hematopoiesis ability", the website can continuously train the outstanding author, the continuous production quality work is the follow-up development fundamental guarantee.

The beginning of the Chinese network has been independently cultivated Tanggu three little, Chen Dong, such as hundreds of "great God" is its fundamental power and the source of faithful creation. 17K also through the establishment of their own network of university, Network literature league, such as ' hematopoietic ' mechanism, and continuously cultivate excellent ' great God ' author, this is the development of the fundamental. "Hematopoietic capacity" is entirely dependent on whether there is a powerful trader and a stable system, the current grand literature two Wu Wenhui hand, Hou succession, the grand literature, "hematopoietic capacity" significantly reduced.

Original content, the core of the grand literature of the beginning of the Chinese network in the entire framework, operation mode, production mechanism with Wu Wenhui Team Deep imprint, the existing "Great God" are Wu Wenhui team training, in the short term Shanda literature can not find a sufficient understanding of the beginning of the Chinese network of the whole mechanism of people to replace Wu Wenhui. In the operation aspect, Hou advocates to build the grand literature whole industry chain, is this pattern soul figure. Take over Hou Chu Wenyu whether still will be strong impetus, have no destiny.

In the case of no guarantee of monopoly status, Shanda literature can only rely on a group of "Great God" writers, such as Tang and laurels, to maximize the value of high quality copyright to obtain benefits. But this model has concentrated most of the resources on a few people, and once the "great God" is lost, it will be a fatal blow to the site.

More senior personage analysis, the grand literature long-term cannot give Chen to bring the stable revenue, but needs the continuous investment, in Chen Tianqiao's Grand group overall pattern, the grand literature status also will be in jeopardy. The good capital operation Qiu Wen if from the capital point of view, at the right time will sell the grand literature high price perhaps.

17K joined the creation of Tencent

In the decline of the grand literature, the network literature market also began a new round of competition. On December 17, the old team of 17K novel network and the industry's newly created Chinese network reached a comprehensive strategic cooperation agreement, the future will be in the copyright, the fight against piracy and co-operation. This action is seen as two major sites to join hands against Shanda literature. It is noteworthy that Liu Ying and the creation of the Chinese network in charge of Jody are former grand core members of literature, Liu Ying left the grand literature eight years ago, then took away the latter 80% "Great God" author, triggering the first "War of God" in the network literature, Jody followed Wu Wenhui Another new stove this year, sparking another round of "God War", The two former Grand core members have given a "fatal blow" to Shanda's literature, and this alliance has also made the situation more complicated.

Jody to Beijing Business newspaper reporter said that the creation of the Chinese network has a group of top authors, in the channel, there is the support of Tencent, the joint 17K novel Network is intended to strong alliances. At present, the 17K novel net occupies 10%-20% market share in the market, the creation Chinese net also occupies 10% about the market share, the two sides work together, the battle effectiveness cannot be underestimated.

Particularly worth mentioning is the creation of the Chinese network backstage Tencent's kill. Tencent is both a channel provider and a content provider, its own cloud of the academy originally in the industry influence itself generally, but with the creation of the Chinese network and Wu Wenhui team joined, Tencent's literary strength has been greatly enhanced. More importantly, Tencent has China's largest network of users and network platforms. Analysis of the industry, Tencent is not yet fully exerting the idea of full force, once the full outbreak of Tencent, Shanda literature or difficult to block offensive.

Big Capital Entry Shuffle starts

Alibaba and Baidu and other big capital to enter the network literature, will also bring more variables to industrial development. Internet giant Alibaba has been involved in online literature as early as 2010, its Taobao set up digital product sharing trading platform. Baidu June this year low-key online Baidu cool literature station.

Liu Ying analysis, Alibaba and Baidu enter more is the advance layout, these two financial resources are abundant, vision long-term. After all, the market scale of the network literature is not large, the overall calculation also on the scale of tens of billions of dollars, for the habits of hundreds of billions of large market giants, network literature is now in the understanding. But once they start exerting their force, there will be a big shuffle in the market. ”

At present, the big pattern of the network literature market has formed, in the channel aspect, with the Chinese mobile reading base as the representative of the major channels to stabilize their position, the channel for the original content of the same, to seek quality content is its common needs. And for such as Shanda literature, Tencent has the existing channels also have content of the enterprise, the future will be more biased, after all, fish and bear's paw can not have both.

In the original content, the big shuffle has quietly begun, with the industry analysis, the first occurrence of mergers and acquisitions may occur in the grand literature, the creation of the Chinese network and vertical and horizontal Chinese network between the three, because these three in the enterprise positioning is completely similar to the homogeneity of competition. As for the three who can win, not only depends on their respective business ability in the main business, also depends on the strength and strategic ability of the big enterprises behind. Liu Ying believes that the Web site to survive on the network must find the right positioning, such as 17K adhere to the city, online games, the military network is good at military topics, the beginning of the Chinese network is good at the fantasy category, because of differentiated competition, so the development of stability. Therefore, the Web site regardless of size, adhere to the concept of differentiation, in order to survive in the shuffle.

In addition, with the mature industry, a group of network literature affiliated industries will also appear, including training, writers, brokers, marketing companies, these sideline will promote the steady development of network literature. And the competition between big enterprises will also spread to the survival of small enterprises, Sina Reading, NetEase reading, Phoenix Reading, read more, palm reading and other strength is not strong, and they now have a strong opponent such as Tencent, survival will become increasingly difficult.