The profit model of new media industry, the bottleneck of obtaining venture capital

In the venture capital market, one or more investment focuses occur each year, and the 2006 Focus falls on the new media industry, which continues until the first quarter of 2007.

New media industry in 2006 to obtain venture capital (VC) more than 140 million U.S. dollars, in the first quarter of 2007 also received not less than 50 million U.S. dollars in investment, strong investments. From the table below we can see the general situation of investment in the new media industry since 2006:

Table 1 2006-part of the first quarter 2007 new media companies funded

Investment amount (million USD) N/a xplus electronic magazine N/a Walden Analysys and


Legend Capital Broad Media Interactive Media a Intel capital letter to the outdoor TV communication platform a 4 Morningside group et al Media (China) Co., Ltd. Outdoor TV communication platform B qiming, such as touch Media outdoor TV communication platform A/n SAIF Huang Yan health outdoor TV communication platform a 5 Oak investment


, Sierra


Ventures, NIF SMBC


Ventures and Gobi


Digital Media Group (DMG) outdoor TV broadcasting platform B tens of millions of USD Jafco, TDF, Hotung and


Sumitomo Xi Cheng Media outdoor TV communication platform B/N Merrill Lynch Asia Pacific, Red Point,


TDF, Jafco, Sumitomo


and Huitung, such as Xi Cheng Media Outdoor television communication platform C CDH, Walden


Analysys and Chengwei


Ventures Warner Outdoor TV spread platform B/n SAIF and WI


Harper etc medium wide Media network video B Harbinger China Podcast Network Video A 1 Bluerun Ventures etc PPLive Network video N/A N/A Granite Global


Ventures, JAFCO and IDG Tudou Network video B 8.5 qiming, joint venture sources and another


Home VC PPStream Network Video B/n Sequoia, DFJ,


Highland Capital,


Steamboat Venture and Sig


such as video network B/n Data Sources: Research Center and public Information





for an emerging industry, the uncertainty of the profit model is the biggest obstacle to its development. In the new media industry, in addition to the outdoor television broadcast platform has a clear profit model, other segments are still groping, and this problem directly led to the Web2.0 industry, including network video, the current decline in investment. Here we will discuss the current and possible profit models of the new media industry on the basis of network video and electronic magazine.





1. Advertising





seems to be the new business model associated with the Internet and wireless value-added services, advertising as an important source of revenue, online video and electronic magazines are no exception. Video sites are usually used before or during the broadcast of video content, that is, so-called patch ads, or during the download of the movie to play cached ads; Another source of the video site is advertising sponsorship in collaboration with traditional media. The website of Electronic magazine is to make interactive advertisement through the packaging and accurate classification of traditional media content.





2. Content paid





user-paid profit model has been in the discussion in the industry, but it is difficult to achieve. On the one hand, the Internet-trained netizens enjoy the habit of free resources to the network video and electronic magazine service providers formed a great pressure on the charges; On the other hand, especially in network video, how to improve the clarity of the screen, ensure the consistency of content playback and ensure the consistency of audio and video are not well resolved, All this increases the difficulty of charging.





3. Provide wireless value-added services





Working with mobile value-added services providers to provide wireless value-added content may be a network of video and electronic magazine content providers another way out. Unlike the habit of enjoying free internet resources, consumers are more authorized to pay for mobile phone value-added services, so content providers can make video content or electronic magazine content into mobile phone movies or mobile phone magazines for paid downloads, and ultimately to achieve profit sharing with wireless value-added service providers.





4. Cooperate with traditional industries to realize profit-sharing





for network video service providers, there are different ways to cooperate with traditional industries, including providing relevant video and audio content for TV stations and radio stations, or in cooperation with television stations to carry out some programs on the internet, such as Uusee and CCTV jointly live the 2006 Spring Festival Gala, PPLive and Hunan satellite TV jointly live super Girls competition.





current electronic magazine and traditional industry cooperation has taken another way: in cooperation with enterprises, according to the requirements of enterprises for their customized multimedia magazine and distributed to users.





In addition to the above profit model, the network video service provider with its own Peer-to-peer technology can also gain some benefits by selling technology and providing after-sales service. However, the above profit model is still in the exploratory stage, has not yet formed a fixed and clear charging methods and channels, this is not only the pain of the heart of service providers, but also reduce the enthusiasm of venture capitalists investment.