Jia Yue Pavilion: The hidden industrial layout of Le Vision

Unlike Youku potatoes, the music network, which has doubled its share price this year, is looking for a different path to development. Le video Network has been two consecutive days trading board. As of Friday, the share price has increased by nearly 3 times times from the end of last year, reaching $45 per share. Jia Yue Pavilion, chairman of the network, said, in addition to music as the introduction of intelligent television, the price of the market, the rise of the market, is the investors to the music of the model gradually understand, see the result. Different from the horizontal development of Youku potatoes, it is a longitudinal idea of industrial chain layout to explore the music. In this vertical industrial chain layout, including film and television investment, video network, wine dealers, mobile terminals, communications equipment. In addition to the Singapore-listed communications equipment company Xbell, as well as 2010 in the A-share listing of the music network, other industrial chain links involved in the company are owned by Jia Yue Pavilion individuals. Jia Yue Pavilion said his dream is to create a "cloud + multi-screen terminal" film Vertical industry chain. So, can the dream of Jia Yue Pavilion be realized? The different paths of music in August 2010, Lok Vision Network in the Shenzhen stock market gem listed, become a a-share of the first network video concept company, opening up to 49.44 yuan, more than 29.2 yuan issued price of nearly 70%. In the early days, the market of Le Video network was questioned by insiders. Why is a video site ranked tenth in a domestic market share listed? As the questioning continues to intensify, the company's share price began to shrink after a year of listing and fell to 13.91 yuan per share in December 2012. In the market before the listing only two rounds of financing, the total financing of only about more than 52 million yuan. Compared to Youku's nearly $180 million trillion in total financing before listing, the potato's total financing amount before the IPO is too little on the capital reserve. Jia Yue Pavilion said, and therefore, music can not to Youku, potatoes and other video sites such as burning money, to fight the scale, only to find a different path of development. Jia Yue Pavilion to choose the development path is, in the case of insufficient capital, must fully consider their profitability. Can not achieve the largest market scale, but can first make the first money-making site, with a profit, through the listing of the recognition of the capital market, and then slowly layout. In the sight of UGC can achieve short-term profits, the first video network through the copyright distribution, as well as paid membership strategy, before the listing to achieve the first profit of the domestic web site. According to earnings reports, after the listing, the music network from the copyright distribution of income accounted for more than 50%, the other 30% from advertising, the rest from the pay-for-demand. But with the domestic video industry, copyright prices have repeatedly climbed, le video network copyright distribution strategy is unsustainable. Le Vision Network has to consider the promotion of advertising revenue structure adjustment mode. How to improve the ability of advertising? On the one hand is to enhance their own user size, on the one hand to find more can touch the user's screen. But the amount of money does not support the likes of Youku potatoes to use funds to hit the "entrance", Jia Yue Pavilion ads to promote the hope that the focus on the "multiple screen." Jia Yue Pavilion believes that the "multi-screen" strategy is consistent with the existing resources of music. "Multi-screen" required barWhat's the thing? First, there is a copyright video content library, the second is, the Communication service resources and technology; third, multi-screen terminals. These three conditions, the first two music vision are available. Apart from the music network, including the Singapore-listed communications equipment company Xbell, by the Jia Yue Pavilion Holdings, as well as the Jia Yue Pavilion shareholding 96% of the entertainment, and entertainment, including Music Entertainment Investment Co., Ltd. and music video Perfect film Investment Co., Ltd., mainly engaged in film and television drama investment, production and distribution. After the listing, Jia Yue Pavilion jiangle as entertainment changed its name to music video. Jia Yue Pavilion revealed that the music film last year box-office receipts amounted to 600 million yuan, in the domestic private video investment companies ranked in the top five, this year's box-office revenue is expected to be around 101.3 billion yuan, and will squeeze into the top three in the country. In addition, the existence of Xbell, not only for the music in the industry chain to the cloud video technology, but also brought the network in the early and unicom and other operators of good relations of cooperation, and the early development of the video network wireless business has brought greater convenience and revenue. Therefore, Le Video network is the first company with Wireless video license. le-Video film industry in the upper reaches of the chain, to become a copyright content Library; Xbell to open wireless multiple terminals in the field of soft resources, is the music network to carry out industrial chain downstream services, which makes Jia Yue pavilion around the music as vertical integration has confidence. A year ago, Jia Yue Pavilion also registered with the personal name of the terminal company music as new, and investment holding a wine electric network wine network, strengthen the terminal and the user's front-end layout. Among them, the new has won the investment of Gou's company, and the main category of wine net wine, also attached to the film and television industry culture. Jia Yue Pavilion, said that the entire ecosystem from the platform, content, to the terminal and applications, the platform includes two parts, one is the cloud video open platform, the second is its own electric business platform. The business model includes: Terminal hardware sales, copyright distribution, content advertising and value-added services, as well as in the ecology of software applications to download the split. At present, Le Video network, music as a new, music-view film, network Wine Network, Xbell, are installed in the music group. This also provides a good framework for the future layout of Jia Yue Pavilion. An insider said that le-vision is operating a domestic listing, and in the future, the group will become an investment holding company. However, the difference is that the Jia Yue Pavilion does not like venture capitalists. He is more willing to share more shares with the team. He said that the market is so, the future of other companies to finance the same. According to the Tesco Prospectus, the IPO, the Jia Yue Pavilion shareholding 62.41%, Huijin Cubic Capital Management Limited shareholding 6.06%, Shenzhen Innovation Investment shareholding 4.55%, Shanghai Friendship News shareholding 2.35%, others are held for the core executives and teams. "Multi-screen" dream video terminal strategy consists of two parts: one is for the smart TV users out of the "box" strategy, and the second is for future young users in the new home after the launch of the big screen smart TV. The promotion strategies of the two strategies are also different. Since the box is more of a temporary product at this stage, it is only for the intelligentTV users hit the "high-end" positioning, not excessive pursuit of sales, but care about the product premium, and the Millet box to form a differentiated competition. and Smart TV, because it is the future of the end of the market, Lok hope to use a lower price, to obtain a larger market size. In the recently released two smart TV, 60-inch price for 6999, 39-inch price of 1999 yuan. And the current market 60-inch mainstream price for more than million, even in the face of the previous price of the lowest 60-inch sharp, Lok View the price is also low 1000-2000 yuan. With low gross margin of the terminal to change the size of the market, which is based on the content of music sales revenue. It is reported that the video content generated by the audio-visual intelligent television advertising revenue, there are a considerable proportion of accounting into the listed companies under the music network. According to the Austrian data, 60-inch TV market share accounted for 1.5% to 2%, should be around 60 to 800,000 units, while in 2013 60-inch machines above the large screen size of the ratio will be 4% to 5%. Le Vision is integrated research and development, chip by Qualcomm Research and development, the screen is provided by Sharp, Foxconn to take charge of the entire production. As for the cost issue, Zhang, a new vice-president, said that the production and manufacturing of music-vision integration is the manufacturing of Foxconn, does not require the maintenance of hardware equipment, there is no depreciation of hardware equipment. In addition, the after-sales service is mainly completed by Foxconn. And in the channel, according to their own electric platform, as well as video content such as music network set up three-dimensional 0 channel mode, directly face-to-face with consumers, no 20% of the deduction point. And the adoption of "pre-sale" mode, but also for the music to reduce pressure on the liquidity. Jia Yue said his new demand for music was to complete 1 million units in smart-TV and "box" sales next year. In the layout of Jia Yue Pavilion, Smart TV gives him a lot of hope for the future. He said that Smart TV will be a big screen in cinemas, the future of film and television distribution, another "big screen." So, is he far from his dream?