The history of the founder of PPStream

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"The goal of Peer-to-peer network video software is to become a worm in the belly of netizens." PPStream President Xu Wei confidently said that his confidence comes from mastering core technology and creative ideas.

Just two or three years ago, Chinese netizens wanted to watch major games such as the NBA or TV shows in Hong Kong and Taiwan only by two means, broadcast by domestic television and BT downloads. Now, with the popularity of Peer-to-peer network video software, broadband users can watch the program almost instantly. PPStream is a popular software in the network, since 2005 the development of the software has reached more than 20 million users, the company from the initial stage of three employees (Thunder, Zhang Hongyu and Xu Wei) developed into a team of nearly hundred people. Because of the market prospect of Peer-to-peer Network video, the company started its business, Many venture capitalists have held out their olive branches, and so far the company has made two rounds of financing, including a whopping tens of millions of dollars in early 2007.

Peer-to-peer Video Collaboration

Xu Wei is PPStream's senior figure and the first group of Chinese operators to engage in peer-to-peer industries, and his collaboration with two software professionals has been dramatic. In the first half of 2005, PPStream the beginning of the line, quickly hot. There is a steady stream of investors and partners, including Xu Wei. Originally and PPStream talk about cooperation, but after a period of cooperation, then simply joined, let PPStream have a similar Google's two developers and a team of managers. Soon, investment also entered smoothly.

"In fact, in addition to ppstream outside, there have been a number of peer-to-peer video software companies, but the comparison, I still think this technology is the best prospects, so the two developers invited, I chose the ppstream." Xu explained.

And PPStream's developers, the two young people: young, not graduating from college, with today's IT industry giant Bill Gates, Dell and other similar undertaking.

At the end of 2000, the 18-year-old Zhang Hongyu searched the hometown of the north-east small county, and finally bought the "computer newspaper" of the consolidated. At that time did not know why the computer program Zhang Hongyu heard the story of Bill Gates, decided to take a "development software, make a lot of money" road. Because high school grades are too bad, a year later, Zhang entered the campus of Harbin Normal University, he often sat in front of the computer for seven or eight hours, "but every day I have to chew a lot of sugar cane residue"-he described the boring courses in the university.

and Oracle CEO Allison in the Yale University speech in the sentence "quit, start action", let Zhang Hongyu resolutely in college after the end of the first semester left the campus. After dropping out of school, he concentrates on programming and occasionally plays odd jobs for some internet companies. At the beginning of 2004, Zhang Hongyu logged into the CSDN Programmer's Forum as usual, starting a day of programming enthusiasts. Is seeing a network company in Chengdu to do Programmer's thunder to his question about peer-to-peer questions, two people discussed for a long time, simply decided to cooperate to develop software.

The South-North development team took only three months to do a peer-to-peer music search software called the MP3 Music Hunter, and all the work on software development was done online. Zhang, Ray Two people are proud that the software at the end of 2004 won the National Institute of Basic Computer Science and other institutions jointly sponsored the "Internet Assistant Cup" China original software competition first prize. But Zhang Hongyu only half a year, and mine is a college dropout. The "MP3 Music Hunter" has been successful, but because there are so many similar software on the Internet, it has not aroused much response. Sometimes helplessness is also the mother of innovation. When Zhang Hongyu accidentally found a book in the small corner of the bookstore michaeltopic "streaming media technology and business opportunities," the opportunity to come. After reading the book quickly, Thunder and Zhang Hongyu know what to do: This is the ppstream of the future.

In the middle of May 2005, Zhang Hongyu moved from Harbin to Chengdu, where he and Ray rented a single dormitory of less than 10 square metres, with a small window and a high wall not far from the window, and the two men worked hard in the small room, all progressing smoothly.

June, PPStream online, from their development plan to the completion of software only three months time.

Find a profit model

2006 is recognized as the development of network video year, with the improvement of network bandwidth environment, the number of video sites nationwide has soared to more than 200. At the same time, by Google16. 500 million of dollars in the impact of the acquisition of YouTube, the number of domestic video site entrepreneurs are still growing. And the market is also expanding, "2006 China Network Video Research Report" pointed out that 2010 China's online video market overall revenue is expected to reach 3.4 billion yuan. So venture capitalists have invested a lot of enthusiasm in domestic video companies.

and VCs to ppstream enthusiasm for a moment also let founder and Xu Wei unprepared, "although only two rounds of financing, but we have to reject a lot of investors demand for shares." Xu Wei said, "We do not lack of money, and secondly, we do not want to dilute the shares too dispersed." ”

PPStream by the wind, but also because their profit model has begun benign development. PPStream Current main source of revenue for the insertion of advertising, the general streaming media before the start of the need to buffer, ppstream in this period will be placed ads, although the time is relatively short, but for advertisers is very effective, because the buffer period when everyone is focused on watching the show, This advertisement can make enough exposure, and it can be placed in the PPStream homepage and the community.

In addition to its own advertising, PPStream in and Shanghai SMG, Phoenix, and other content to provide institutional cooperation in the process, can also be divided into advertising revenue. Although these profit models have been formed, Xu Wei does not think it is time to target profitability: "We will now make the necessary arrangements to develop users and develop users is the primary goal." Because users will not be grateful for the software you provide for free online viewing, they will only choose software that is more comfortable and stable to use.

But he also admits that there is still a conflict between the number of ads and the user's viewing experience, "We want more advertising, but not too much time, and if the length of time can easily cause users to complain, affect their viewing experience." "So how to solve this bottleneck has become a ppstream priority." Due to its proper operation, PPStream has weathered a lot of unprofitable websites, "We can make ends meet this year, and 08 will be profitable." Xu proudly said.

Taking the lead in Peer-to-peer VOD

PPStream Strong technical advantage has laid the field of its network video live hegemony, but adhere to enhance the user experience of the quality of faith so that PPStream always walk in front of the industry. March 21 0 o'clock, PPStream development of the Peer-to-peer VOD system public beta release. "PPStream is the first network video operator to launch the new integrated service in China." Said Xu confidently. "Want to see what, on the point of what", "when you want to see, when the point" way to let many netizens enjoy. Referring to the business model of the PPStream VOD system, Xu said, "mainly advertising, through cooperation with the content of various forms of collaboration to obtain advertising revenue." Of course, it does not rule out charging users. "#p # Paging title #e#

Huge sums of money invested in copyright

Piracy has long been a lingering shadow of all online video companies, and this March 13, the US media giant, who owns the MTV Music Television Network, sued YouTube and its parent company, Google, on the basis of "deliberate mass infringement of copyright" and claimed 1 billion dollars.

The problem with YouTube is that online video is even more rampant at home, as these sites generally start with piracy, and many of the companies that play almost all of them are pirated. This March, the State Administration of radio and television in serious violation of the "Internet and other information network to disseminate audio-visual program management measures" once again resorted to heavy, "China International Chinese TV station" and other 8 network television stations were severely punished.

"We are not network TV, at the same time, there are a lot of different video sharing sites like YouTube," Xu explains, "Many video-sharing sites are online biographies, and we just provide users with a legitimate rich video program broadcast platform, partners, including Shanghai SMG, Phoenix, Sina, Tom, Baidu and so on, In addition, PPStream also offers the latest films and arts and sports programs. ”

Xu Wei is not worried about the country's regulatory storm, "we have been paying attention to the copyright issue of the content, in fact we have spent millions of dollars on copyright purchases." At the same time, we are very supportive of the state to strengthen the regulation of the content, which is conducive to the distinction between good and bad, to purify the network video environment is very beneficial. ”

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PPStream was founded in October 2005 with the goal of "making broadband entertainment available to everyone through the Internet". PPStream, including Shanghai SMG, Sina Broadband, Phoenix, Yahoo China and other large media organizations at home and abroad to maintain long-term good relations of cooperation, and for the Oriental Broadband, Sina Broadband, Phoenix Broadband and other well-known broadband operators to provide technical support. According to statistics, the current PPStream has 65 million installed user capacity, has formed 1.2 million registered users of large-scale network interactive community.

There are two types of network video

The current network video industry is divided into YouTube mode of video sharing sites and Peer-to-peer technology as the core of the video live platform two categories, two types of sites belong to the video field, but actually business model, the direction of development is very different. The former mainly is the individual uploads the video content, the policy risk and the content animations will be the two big challenges which the domain faces. The latter is to create a rich video platform, by providing users with video services to gather users. At present, both types of video sites are broadcast by advertising revenue.