Small and medium websites have closed down the internet to survive worse next year

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Affected by the global financial crisis, the Internet industry gradually into a downturn. A few days ago, some web site operators in trouble, a lot of layoffs, save money, and even announced the closure of the video site is the most affected. Many risk investors are shrinking their investments in the Internet, which is a fatal blow to websites that rely on risky ventures. Industry insiders believe that next year the Internet will be more difficult to live environment.

Small and medium websites have closed down

Recently, 99 Chinese Music Network, household goods Shopping Network, homes to take home network closure. It is reported that the 99 China Music Network was launched in January this year by a Chinese-American investment of 30 million yuan founded.

In addition to the closure of the website, some websites also reported layoffs. October, peer-to-peer Network video website pplive to start redundancy plan, the number of layoffs is about 10% of the total number of employees. November 3, video site six rooms to reduce the size of the total number of 2/3, the overall staff size from 200 to 60 people. November 7, Yau Network confirmed that the downsizing of 10%, the number of about 20 people. In addition, the dotcom, which won $8 million trillion in investment last year, has also recently sparked a dispute over employee arrears.

Recently, "entrepreneurial observation" on the Internet segmentation industry research, to assess the most likely to fail the current four types of sites: Video-type sites, SNS social networking sites, life search sites, web games.

Industry insiders said that the site closed down or layoffs because in the financial crisis situation, the increase in profit pressure, the need to control expansion.

The most obvious impact of video sites

Mr Li Ka-shing's Hutchison Whampoa recently announced a moratorium on new global investment, with all the unfinished or unpaid spending to be saved by next year. In addition, the Sequoia Capital and other venture capital have contracted the front. Data from Tudou show that, since January this year, 50% of VCs to small and medium video sites have begun to "break".

Industry insiders say, has been relying on venture capital "support" of the domestic video site is affected by the financial crisis the most obvious internet area. Video site personnel costs accounted for only 30% of the total cost, the purchase, lease bandwidth server is the main cost, the demand for funds is very large. According to industry sources, like the big video site one months of cost about 2 million.

Around 2000, after the dotcom bust, technological breakthroughs stimulated the rise of foreign video sites. VC industry believes that video sites will support the Internet next golden decade. Coupled with the number of Chinese Internet in five years to become the world's first, the video site into a hot pursuit of wind. However, after the investment, how to profit has always been a video site of the collective problem.

In the downturn, the financial squeeze, video sites have no revenue to ensure that the business model is the biggest dangerous baggage. In the view of the profit, economic environment and bad circumstances, the wind cast on the video site enthusiasm greatly reduced, and even abandoned. Plus video sites face serious homogeneity problems, long-term development is facing problems.

In fact, some Web sites have poor operational capabilities. Take the Forum website for example, the network survey data shows that only 14% of the forum site operating time over three years. In addition, the overall profitability of the forum site is also poor, nearly 60% of the forum site monthly income of less than 100 yuan, only less than 15% of the monthly income of the forum site more than 2000 yuan.

Next year, the living environment is even worse

A video website leader said, the economic situation has turned bad this year, the small and medium-sized website Capital chain tense, estimated next year's living environment worse. In addition, the Government to strengthen the supervision of the website licence, but also to the small web site increased policy pressure. Insiders said that the next two years for more than 400 domestic video sites, will be a difficult time to finance. In addition, although the domestic community sites abound, but most of the operating time does not boil the new year. Because the domestic community website's profit level is not high, the financial crisis accelerates its closing speed.

At present, the website mainly relies on the click-through ads to bring money. Before the Olympic Games, some large websites get good advertising volume. However, the current growth rate of advertising is slow. Industry insiders pointed out that the economic downturn, the real industry is implicated in the end will inevitably be conductive to the advertising industry. While many agencies still have a good outlook for the four-quarter ad, given the cumulative effect of next year's multiple uncertainties affecting the world and China's economy, advertising on the internet is now a spent.

Industry experts analysis, the financial crisis will bring the video industry upstream entities that are content manufacturers and advertisers budget spending tightening. From the user point of view, consumers of the financial crisis uncertainty and panic mentality, leading to a decline in the overall consumption level.

However, there are still venture capital into the internet, a few days ago, E-commerce website, "Diamond Bird" access to the joint venture, today's capital of a total of 10 million U.S. dollars in the second round of injection. Industry insiders believe that under the pressure of the cost, video sites are cutting edge to seek innovation in order to save themselves. On the one hand to save money, on the one hand to broaden channels to find a new profit model.