The price of movie and TV play rises and the copyright War of network video

The anti-piracy War of 4 years ago brought about a rise in the price of film and television and the copyright War on Internet video. Now Charles Zhang regained fitter, is rejection.

Since Sohu board Chairman and CEO Charles Zhang decided to the entertainment and video as the last straw to revive Sohu after the action: he himself to adjust Sohu video management structure, set up a huge anti-piracy alliance, and even the video homemade drama "Cock Silk man" management also in detail. In exchange for any other Internet-born CEO, are more willing to Sogou input method and browser as the future strategic opportunities, however, the only one for the search dog site is in the vigorous Tencent sogou marriage case. Sogou CEO Wang Xiaoquan once said that only one to two times a month with Zhang's report, this and Zhang Chaoyang week to the video opened 3 times will form a sharp contrast.

Charles Zhang chose a path that was not easy to follow. At present, Sohu group mainly by Sohu Tour, Sogou, Sohu Portal and Sohu Video composition, the market value of 2.485 billion U.S. dollars, the old Internet company market value, still less than just go to where the network of 2.824 billion U.S. dollars, or even simply rely on video to support the 4.7 billion dollar market value of cool potatoes.

Zhang in front of the situation is--Youku potatoes continue to stabilize the market first; in the Baidu Traffic and PPS user into the love of strange art has become an indispensable competitor, and Tencent Video, Sohu Video competition for the second, after the pursuers thunder, fast seeding, such as grass-roots market. However, he found that, in addition to the selective strategic losses, the video site's collective loss is another reason is that all video site traffic 1/3 by stealth player Baidu intercepted, the huge anti-piracy Alliance was established.

Video coordinates

Zhang is the first generation of Chinese internet entrepreneurs from scratch, Sohu also by virtue of the portal business to the U.S. listing after the typical, 11 years ago, Sohu first broke the internet company deadlock, the first to achieve profitability.

At the most glorious time, he has been on the cover of major magazines, as the spiritual idol of self-made success, to go anywhere to enjoy the rock star style reception. At that time, Baidu CEO Robin Li use Sohu mode to do the typical to convince their investors, now Tencent board chairman Ma was sitting under the stage to listen to the story of Charles Zhang excited to start a business.

But Sohu has not been able to stay in the first camp in the leap from the Internet era to the mobile internet age.

Zhang, who once thought the rise of Weibo would be an explosive growth opportunity, now reflects: "The timing of social product 2.0 is more important than the time of 1.0 or 1.5, and you may miss a lifetime of missing a few months because social products are monopolistic." ”

The monopoly of product characteristics and the first advantage of Sohu video is the decisive factor for Charles Zhang to position the new coordinates in video. He said: "The video is more biased information, its monopoly is not as strong as the micro-letter, so allow several simultaneous existence." Sohu Video as a veteran video practitioner, our understanding of the nature of the video and our grasp of the whole Chinese entertainment industry and Sohu Entertainment gene, Sohu video is quite competitive. ”

The growth of video advertising has become the 3rd quarter of Sohu earnings notable highlights. Sohu Joint president and chief operating officer Wang said: "The 3rd quarter brand advertising revenue continued to maintain a strong growth momentum, revenue reached 125 million U.S. dollars, an increase of 60%, network video business is the main driving force for revenue growth." ”

Many years ago, Zhang had publicly said: "A business success and his helm of the relationship is very large, the success of the road seems to be the success of the enterprise or system, but the source is the enterprise decision makers of the character and experience of the imprint, so that the enterprise is the first person." "Today, the most entertaining founder of the Chinese internet community is the gene for entertainment in the Sohu group.

Entertainment gene from the mouth of Zhang said not function words, this gives Sohu video development brings many conveniences. This March, "Vampire Diary" actor Wesley (Paul Wesley) visited Sohu, Zhang went downstairs to greet, and as a long time not seen the star of a child holding a mobile phone in the crowd photographed. At that time, Sohu internal circulation, Wesley China's trip is due to Shanghai's business activities, its deliberately come to Beijing is only hope to see Charles Zhang. Wesley's agent also leaves Sohu with the only opportunity to interview. In addition to the full escort, Zhang also invited Gao and other friends to hold a welcome party for Wesley at three Li Tun Bar.

Zhang's office is on the top floor of the new office building, where there is a large private café with a meeting room for more than 10 people-his main job in the office is a meeting, and the conference room is his office. A large glass house and an open-air balcony outside the house are available from the conference room. He still enjoys the happiness of money and success-spending a huge amount of time in his office building a giant LED screen that costs 6 million yuan. This is the treasure of all kinds of party held by Charles Zhang. At the end of the 2nd season, "The Good voice of China", as the exclusive partner of "good voice", Charles Zhang held a "good voice" celebration. In the vodka with the big stars, his influence is penetrating into the domestic and foreign entertainment circles.

In each video of the difference development strategy, Sohu Video gradually established with the United States drama, comprehensive arts and homemade drama as the core competitiveness of the development direction. The first to open the U.S. play procurement situation and in the United States Entertainment circle has such a high status, which with Zhang Chaoyang long in the entertainment circle and he launched 4 years ago, the anti-piracy action inseparable.

Now many big players in the field of video from Sohu-Early 酷6网 founder Shanyou, now Sohu Video competitor Archie CEO Gong are from Sohu. Still occupy the market share of the first Youku Potato CEO Koo was Sohu Group's chief operating officer, he and Charles Zhang acquaintance in the early 1998 years of entrepreneurship.

The War on copyright

4 years ago, Zhang was jointly sued by Zhang-Peng, an exciting network, to sue Youku for copyright infringement. This year, coincides with the successful listing Sohu, Charles Zhang will network video locked into the next strategic development focus, Sohu Sales staff are required to have half of the monthly performance from the video.

Of course, this is the time for Sohu's strong foray into video search video breakthrough. Charles Zhang recalls that history, said: "We do video very early, but did a different road, just started to try Peer-to-peer, and later found that Peer-to-peer is the path of piracy terminated." User upload and share is Youku to do, as a listed company, do not do piracy on the genuine, so launched a crackdown on piracy industry action. ”

Later, Youku sought to go public, under the pressure of the U.S. investors, had to embark on a genuine road, Charles Zhang's anti-piracy strategy has made progress: 4 years ago, the video site almost not spending money can get TV dramas, now each family began to buy a genuine. Sohu Video buy TV series "Youth Who is the main" price is 1000 yuan, then "the Great Qin Empire" rose to 25,000 yuan a episode, now casually buy a hit drama is 1,000,001 episodes, this is the result of piracy.

Later, when Zhang was in the entertainment circle, the stars of the TV dramas told him about the sharp rise in their pay, which had risen from tens of thousands of a few years ago to hundreds of thousands of, or even millions of.

As anti-piracy efforts become more pronounced, there is no piracy in browsers today. But the significant change is the rise in copyright prices, the major video sites spend on the content of the purchase of the cost of the increase, the exclusive content becomes the focus of major video site contention, video site from the UGC, contention for bandwidth transition to the phase of the copyright war. By this year, the Youku potato, which had been sued by Sohu, has become a large copyright buyer, spending 200 million of dollars a year on copyright purchases, while Sohu Video also spends 100 million of dollars on copyright purchases. Overall, video sites spend nearly 1 billion dollars a year on copyright.

"Every family spends 600,000 ~ 1,000,001 episodes to buy a play, you also zero cost pilfer, this is absurd." "Charles Zhang said. 4 years later, he had a new collection of collaborators, including rivals, to do more large-scale anti-piracy. "This piracy is just the fight against piracy in the end, if we do not go on is the naught, we are now facing to spend so much money to buy content, but we are 1/3 traffic is gone, resulting in advertising can not sell, or sell ads cannot cover costs." ”

November 13, the Anti-Piracy Union Congress originated from the legitimate network of the CEO of the daily meeting. "We are a few companies to do video company's platform for the content of the purchase of communication is very much, mainly talk about the exchange of TV dramas, bargaining or jointly to bid, this is a consensus reached unanimously." "Charles Zhang said. At that time, every time with Youku Potato CEO Koo, COO Liu exchange of piracy, everyone began to become outraged.

Outside the view, the timing of the anti-piracy is just the choice of the Baidu acquisition of Love, and the main issue of the anti-Piracy alliance is to point to Baidu's tort-hotlinking and for pirated video sites to provide technology, flow, revenue and other all-round support, and through Baidu Video search, Baidu audio-visual, Baidu video app and Baidu Shadow stick these four products to complete the 4 terminal infringement.

"We would rather be blocked by you, you do not do piracy we welcome." "After the Anti-Piracy Alliance conference, Sohu Chairman and CEO Charles Zhang in the office top of the private café talk about Baidu chanting words seem to vote in the heart."

He was dressed in a gray suit with a red and white plaid shirt, and the occasional slip of his foot in his lap was a bit of an anachronism in public, but he didn't care.

In the 2012, the video industry is undergoing profound changes. Youku Potato Merger, Baidu wholly-owned acquisition of Archie Art, as well as Sohu video, Tencent Video, Archie Art jointly announced the joint formation of "video content Cooperation Organization", each video site actively promote homemade drama. By the year 2013, in this context, the price of Internet copyright has dropped from the highest 1.5 million to 500,000 ~60 million. Why do the families choose to bid farewell to the high price of copyright year when the sniper Baidu?

Traffic War

Charles Zhang repeatedly said that Baidu has made him unbearable, he explained at this time to launch Zujizhan reasons:

First, today's video content copyright is much higher than a few years ago, companies to the end of the year are related to the budget issues, the introduction of the film is a key issue. Piracy has a big impact on TV dramas, but not life, because TV dramas support the whole industry by advertising mode, but the film is very different. If the video site to buy the film copyright, can only walk charges can not rely on advertising, if someone pirated movies, major video sites difficult to establish a business model, with operators willing to help pay and other channels of payment patency, video sites are widely considered charging to watch the film model can be feasible.

Second, a large number of video sites facing 1/3 of traffic to piracy, flow outflow direct loss of advertising revenue. But Baidu is too strong, individual anti-piracy is faced with the danger of being blocked, only united to be able to.

Another key reason that has not been said to be closely related to many industry insiders is that Baidu's video app announced that it already has 100 million users in a move to the mobile end of the PC. and Baidu Mobile Client as a mobile portal is difficult to guide the video site, in the Baidu video app completed the play, the so-called "stolen" behavior is also let the major sites rise up.

Compared to only the content of the theft and offline, Sohu eyes of the "big evil" lies in Baidu to help small and medium-sized websites to establish pirated industrial chain, and provide technology, flow and revenue sharing system: First of all, a CMS system to help build a Web site, a person 5 minutes to build a website, after the pirate site will use personal site data for Peer-to-peer drainage , after the discovery of the seed IP address, there are some IP address confirmation is provided by Baidu, Peer-to-peer streaming after downloading Baidu audio and video player can play. Anti-Piracy alliance pointed out that Baidu in which for small and medium-sized sites to provide a split advertising alliance, to help build websites, peer-to-peer drainage, so as to establish a pirated web site of the gray industry chain.

To stimulate the anti-Piracy alliance. The real purpose of the present is to reveal the tip of the iceberg, in addition to the high price of copyright spending, the real intention behind the Baidu's PC and mobile client traffic interception.

In contrast to the anti-piracy War of 4 years ago, the anti-piracy Alliance covered the video camp's large flow of traffic, but lacked a copy of the copyright party. In addition to the music network is also in the distribution of copyright, Sohu, Tencent and other video site's core profit model is through the flow of ads to the main advertising sales and membership fees, the latter is the network video for the film business model. Compared to the television station by the time charge of advertising, the way the video site is charged by the flow rate, that is, the larger the flow of the library, advertising revenue will be more.

In the Sohu video spends nearly 100 million exclusive purchase second season "The Good voice of China", the sticker advertisement cost also from thousand clicks 30~40 yuan rose to 120 yuan, created the network video advertisement price most. The doubling of advertising prices is a harbinger of a thriving online video industry. But the core of influence and revenue is the brand presentation and revenue structure based on flow.

The rapid development of mobile Internet is subverting the traditional PC form, and it is difficult for single app link form to import traffic on PC side. "Baidu app's TV series copyright is ours, but not from our server to obtain, some in his program but directly from our server, cost my bandwidth and copyright, and cultivate the habit of entrance, this is the most disgusting." Zhang said, "If Baidu video app can jump link to Sohu page, even if I do not want to do so, but reluctantly acceptable." ”

Reluctantly accept the jump is not difficult to see, video sites for the mobile end of the hope that both traffic import and fear of loss of the entrance of the worries and face the embarrassment of traffic interception.

Fragile alliances

In the era of traffic for the king, Baidu Video search currently for the network video industry contributed 75% of the search traffic, the video site to become the largest source of traffic.

The dilemma and fragility of the alliance is also obvious: video sites rely on Baidu's entrance to obtain traffic, but also fear of blocking Baidu improper behavior in the harm itself to bring SEO rankings to reduce or even kill the curse. Even the moving end of the 3rd party jump, is sandwiched between the flow and choice.

In the week following the press conference, there were two equally tragic and happy results: The good news is that Baidu has been in the mobile phone, Baidu video app part of the end of the theft of cool potatoes, Sohu video and Tencent video copyright film and television content, but also part of the offline piracy of American films; The bad news is that two days after the launch, Charles Zhang used Baidu to search for "TV Sohu "found no Sohu video.

In the strange Game of the Alliance, the family is too radical to face the danger of choking off the flow, and it is hard to see the results. "We can block Baidu collectively, but it's no use." 100th video piracy can meet the user requirements, the second mass piracy is American movies, we do not have the copyright of American films, so it is still very large traffic. "Charles Zhang said.

But Charles Zhang seems to be the most resolute one, he said even the worst results, will insist on the anti-piracy in the end, to this end, he did not hesitate to win with Sogou Battle of Qihoo 360CEO Zhou, and the government continuous communication, and even personally battle with Baidu CEO Robin Li shouted. He did not disguise the commercial benefits of the stone, "TV dramas and arts and crafts will continue to get more and more hot, and if piracy is cleared, the industry will be able to advance into a profitable period, while the film's charging items would explode." ”