The profit outlook of Le Vision is optimistic

Absrtact: Recently, there are a lot of discussions about the music network, the potatoes and Youku in the United States are famous, but they are not profitable, but the profit-making network has benefited from the charging mode. may be affected by this, yesterday, le Video network to create a new listing since

Recently, there have been a lot of discussions among the people on the video network, and the potatoes and Youku listed in the United States, although they are famous, are not profitable, but the profit-making network has benefited from the charging mode. may be affected by this, yesterday, Le Video network created a new high since the listing.

Before 2008, the network video industry business model is not clear, the piracy problem and the inability to convert traffic into revenue is always the two soft rib of video website, the development of the industry is slow. In the past two years, the network video business model is gradually clear, the industry's two weak links have been partially resolved, video advertising, pay video, TV-side network TV three subdivision areas are growing rapidly.

Network Video Profit Model determination

At present, the domestic network video service companies include Youku, potatoes, thunder look, odd art, cool 6, 56 network, such as vertical video site, Sohu, Sina, Tencent and other portals under the integrated video site, there are pplive, pps and other video player clients, in addition to some more upstream of the network copyright distributors, such as music video network, gifted friends, the heyday of the sun, exciting nets, including the music network and exciting network has its own video site.

At present, the domestic four listed video companies are Youku, potatoes, cool 6, music video network, in addition to the market is a a-share, the other three are listed in the United States market. The three video companies listed in the US are video sites, at present, Youku is in the industry's first camp, but the three companies have a more serious homogeneity, the current has not yet achieved profitability, while the Lok Vision Network is in the upper reaches of the industrial chain, the copyright distribution business contribution to most of the revenue, has now achieved profitability.

At present, the industry profit model of network video industry is becoming clearer, the main profit model has two kinds: the first is the advertising mode, the traditional media resources are increasingly scarce and the price continues to rise, which leads to the increase of the value of Internet advertising. Network video, as the best substitute for TV, is one of the fastest growing advertising carriers on the internet, with 50 billion yuan market space. The second is the charging model, copyright control and industry self-discipline to promote the development of the fee model, the mainstream video sites have launched a toll video service, pirated video accounts for the decline in online pay watch movies gradually become mainstream.

The profit outlook of Le Vision is optimistic

Le video Network is the earliest purchase of film and television drama copyright video site, the current copyright library has 50,000 episodes TV series, more than 4,000 movies, got the domestic about 70% of the popular film, TV series exclusive network copyright. Le Vision Network has been purchased and has not yet been online exclusive copyright TV drama has reached 209, more than 6,000 episodes.

Ping An Securities analyst shaoqing that the network video industry has entered a benign stage of development, the bright profit model to promote the rapid development of the industry and the optimization of the competitive environment. The profit model of the video network has been multidimensional: constructs "the network advertisement, the charge video, the copyright distributes" the multimodal operation, has broken the video industry advertisement profit pattern bottleneck, the effective allocation content cost, the parallel layout "computer, the handset, the television" three movie distribution terminal platform, maximizes utilizes the company genuine video content superiority, and industry leading differentiated competition. With the rise of the company's industry position, high income growth, valuation has the potential to increase.

Its current four major business including network advertising, pay video, copyright distribution, ultra-clean player, this year will enter the harvest period. One of the network advertising in November 2011 with potatoes, netease, thunder cooperation to promote the site independent users rose hundreds of times, comprehensive ranking into the industry's top four. 2012, is expected to earn 293 million yuan income, an increase of 200%. Fee Video 2012 is expected to reach 6.5 million people, to obtain 196 million yuan income, the year-on-year increase of no less than 30%. Copyright distribution will not be a strategic focus of the company, but the company will retain exclusive copyright, reduce the proportion of copyright distribution, Revenue is expected to fall by 30% per 2012, about 1.6 billion yuan. Ultra-clean player as the focus of the 2012 company to promote the business, sales are expected to reach 200,000 units, revenue is expected to reach 200 million yuan, is expected to its 2011-2013 earnings per share of 0 56 yuan, 0 80 yuan and 1.11 yuan.

Following last week's music network trading, yesterday again rose 5.63%, creating a new high since the listing, the closing price of 35.83 yuan yesterday, but also up to 22%, showing a lot of money to profit out. Shenzhen data show that in Friday there were institutions selling three of the position.