The future of small and medium video website is worrying

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

With the popularity of broadband and the sharp rise in internet speeds, the number of Web-access videos worldwide is expected to reach 1 billion by 2013, according to ABI Research, a US study institute. But for most of the domestic video sites, they have not been waiting for that day. China's video industry has entered the shuffle stage, in addition to the Web site podcast business, professional video site can survive up to only three.

Small and medium video website's Living space Shrinking

At present the video website operation cost expenditure mainly has three big blocks: the bandwidth, the server and the promotion, among them high bandwidth cost lets many small and medium video website overwhelm. How to survive is the top priority of the current video site.

Video sites only survive, it is possible to ultimately achieve profitability, and survival of the first conditions and need a large number of original capital to do infrastructure construction. Video web site financing two-thirds of the money spent on the server and bandwidth expansion. The high operating costs of video sites are severely constrained by the lack of early-investment websites, which will inevitably lead to a gradual loss of user experience. Video content of the slow speed, lack of content and many other factors that limit the development of our video site, now coupled with the financial pressure, the 2008 video website Industry Shuffle is self-evident.

Tudou published data show that since January this year, 50% to the small and medium video site of the VC has begun to stagnate or even withdraw capital, more VCs are on the sidelines. Even in the face of larger video sites, the caution of VCs is obvious. In the face of this dilemma, the action of each video site, more like in the arena of financing the final madness, but the result is difficult to optimistic. According to the investment practice of venture capital, a project is generally at most 4 rounds of financing, more than 3 rounds are not see the profit hope, investors often sell hands. The relatively leading Tudou has now completed its fourth round of financing. But most of the small and medium-sized video sites to get a second round or even the first round of financing is very difficult.

On the one hand, the video site is facing financial pressure, on the other hand. Video site is mainly to hype gossip video mainly, serious big brand is not willing to put ads in such a new media, no matter how big it traffic.

Portals will occupy a place

Portals seem to be interested in any relatively mature Internet application, for blogs, and for podcasts. Portals have achieved remarkable results in blogs and podcast business.

Last year, China Telecom and Sina cooperation, to "Sina Internet star Podcast" Joint brand jointly operating network video sharing business. Basic telecom operators and portals in the field of video sharing full cooperation, in the domestic is still the first. Sina relies on the successful experience of portal website to provide podcast business system, manage podcast content and be responsible for commercial operation; China Telecom relies on perfect broadband infrastructure network to provide sufficient bandwidth resources and telecom-grade technical support to provide users with high quality network video service.

"Sina Internet star Podcast" on line for more than 1 years, has shown the mainstream operators and strong portal cooperation model of growth value. At present, "Sina Internet Star Podcast" daily average page browsing volume has reached 100 million times, daily average video playback more than 50 million times, daily upload video 20,000 to 40,000. The survey showed that more than 61. 8% of netizens are concerned about the brand of Sina's Internet star podcast, more than 93% of Internet users agree with the use and service of the Star Podcast platform in Sina, more than 93% of netizens believe that the video content of Sina's Internet Star podcast is novel and Rich, and more than 76% of netizens are satisfied with the smooth video playback

Sohu Joint president and chief marketing officer Wang recently in an interview, said, in order to allow netizens to watch the smooth sports video in Sohu, Sohu not only put a lot of money to develop video streaming media technology, but also in the hardware on the reserve, Sohu will borrow the Olympic video business.

Most video sites are either bought or killed

April 28, Tudou officially announced access to 57 million U.S. dollars in financing. People familiar with the matter said that after Tudou got the round of financing, some video sites began to ask Tudou to buy. Yang Daning, vice president of Tudou's business cooperation, said it would not rule out Tudou's possible merger.

More than 200 video sites have been spawned in the country after a sky-high takeover of YouTube. But they soon found that the video industry was a highly capital-intensive industry-adding a lot of costs to each additional user. Many companies have been struggling today, either to fail or to be bought-a better option, of course.

According to Liu Xingliang's analysis, the video-sharing industry has only two possibilities: one is coexistence, one or two sites are alone, other sites crash or merge quickly, and the second is to save only two to three sites, whether for financial or other reasons, where the main site is out of competition and the situation becomes clearer. Of course, this may also be through mergers and acquisitions to achieve the goal of rapid integration industry. And now the video industry to overlap with each other, the homogeneity of serious, the integration of the industry is relatively easy. So the second possibility is the most.

It is reported that the current video industry mergers and acquisitions are not yet profitable companies, mergers and acquisitions will be increased after the acquisition of a lot of costs. The success of mergers and acquisitions depends on the value of the acquirer and the amount of cash available to support the added cost of the merger. The rapid integration of video industry is what the government wants to see, which can reduce the difficulty of management and promote orderly competition in the industry.

According to industry sources, Tudou has been closely observing the changes in the industry, once the weight of the video sharing site and important competitors can not be merged into the new funds, Tudou or will be the first echelon of the video site acquisition.