Video "Troubleshooters" Burning money war giants blow big art bubble

Absrtact: A new round of video industry burning money drama staged in the comprehensive Arts Theater. Following the Archie art 200 million high price in Hunan TV multi-file hit variety show, Tencent Video recently stole from the hands of Sohu video "China good Voice," the third quarter of exclusive rights, the industry rumors cost 2

a new round of video industry burning money drama in the "Comprehensive Arts Theater" staged. Following the Archie 200 million high price of Hunan satellite TV series hit variety show, Tencent video recently snatched from the hands of Sohu video "China good Voice," the third quarter of exclusive rights, the industry rumors cost 250 million, set a new high.

"Now the full art has started to fire, as the film and television drama copyright contention, from thousands of tens of thousands of to millions of, burned this industry, some people finally carry on, like Cool 6, 56 and so slowly no sound, PPS, PPLive also sold." "A video industry believes that the rest of Youku, Archie, Sohu and Tencent, are able to burn money" tyrants ", competing with each other will present a saw-saw state.

"Good price" for all arts and crafts

After the first two years of sky-high buying hit drama, variety shows become a new round of video site speculation hot spots.

2012, the second quarter of the "good voice of China," the network of exclusive right to broadcast the price reached 100 million, Sohu became the first to rob the video site crab, and finally harvested 200 million yuan of high revenue.

But the "tyrants" record was quickly refreshed by the latter.

November 26 Night, Tencent Video in the 2014 promotion meeting announced that the third quarter of "China's good voice," the network of exclusive rights, the production side said that the hope will be good voice ratings rushed 5 points, and Tencent's click "Unimaginable." For specific auction prices, Tencent officials admitted that "the negotiation process is very difficult, after the pressure is greater", but did not disclose specific bids.

Industry rumors that the previous Sohu has been a good voice price pushed to 100 million, Tencent to win the price of sound should be 200 million-250 million yuan. If true, it would mean that Tencent's offer was at least one-fold over the second quarter.

In this regard, the reporter called Tencent to verify, but failed to get a response. Sohu Video sources told reporters that give up "good voice", on the one hand, because the price is high, need to consider input-output ratio, on the other hand, is also Sohu video strategy considerations, "last year, Sohu flagship American drama, this year is a comprehensive arts, will change next year, self-control is an input focus." ”

In addition to the "good voice of China", many other popular domestic hit, also by the high price of video sites carved up. Tencent video, in addition to the "good voice" outside, also won the "China's Got Talent show", the price of 25 million yuan, music network to 50 million yuan to take Hunan satellite TV "I Am a Singer" second quarter, and recently married into the Giants Su Ning's pplive, then won the Jiangsu satellite TV, including "Do Not Disturb" packaging copyright.

And the most aggressive, is the Archie art, its breath won the "Happy Camp", "Day Day" and other routine hit guaranteed variety show, and the recent hot "where Dad go" second season, multiple programs are Hunan TV flagship comprehensive arts, and the price is 200 million yuan.

"This year we rob all very powerful, Hunan satellite TV bidding, Sohu people squatting for a few days, the result of others Archie Art side Gong personally to talk, directly signed the contract." A person close to Hunan satellite TV said.

For the variety show this year's snapping spree, Analysys international analyst Pang billion said there are two main reasons, on the one hand is the video site's copyright content resource contention, because of the large number of broadcast and users, variety shows also began to become a video site hype hot spots; Plus the radio and television system began to implement the "limit entertainment order", making hit variety show is scarce resources.

"If you do not buy, then your own reserves of resources and even competitiveness may be impacted, and if the market resources too concentrated in one, the overall market is not a balanced competition." "Pang Yi Ming said.

At present, the variety show has reached tens of millions of or even hundreds of billions of bids, Pang Yi Ming believes that through advertising investment, copyright distribution and two times value development and other ways, video site can still be able to recover investment, but continue to push higher, similar to the "good voice of China" So, " If the price is really rushed to 200 million or even 250 million, Tencent can recover the investment, or let people worry. ”

Remaining tyrants

It is noteworthy that as the purchase price climbs, the number of players who are able to deal with the new round of burning the money is also getting smaller.

In addition to being listed in the United States, need to "recuperate" in order to achieve four-quarter profit of Youku, and just in the "good voice" in the second quarter of the eye to earn the Sohu video, the latest remaining to be able to participate in the competition, that is, rely on the giant support of the love of art, Tencent Video, as well as the

"The industry is so brutal that it has been burning money, you see the two years cool 6, 56 of these sites, there are many voices." "One industry insider familiar with the video industry said.

The person said, now video site speculation on the road, and before the film and television copyright, is also a game of burning money, pushing prices higher, finally someone will slowly carry on. "At first, film and television copyright, a set of thousands of tens of thousands of dollars, then become millions or even millions of, the rules of the game changed, some people will gradually withdraw." ”

He also said that the "high price" of the copyright, the last is not necessarily really want to go alone, are first with advertisers to "brag", pull out the ads, and then sell a part of the sale, the cost came back. The main video site, on hand can rob the next part of the video exclusive resources, through copyright swaps or shares, in fact, also eventually amortized costs, and ultimately lead to purchase prices back to a normal level.

But this virtual high game, apparently also washed off a lot of small-scale video peer, this year, including PPS, pplive, etc., finally have to seek to sell.

"Now we can form industry influence, which is four people: Youku, Archie Art, Sohu and Tencent video," a video site insiders told reporters, Archie Art and Tencent video, behind the reliance on Baidu and Tencent such a large volume of giants, are "rich second-generation", even if not profitable, can accompany to burn a few years of money, " Tencent hit the money to shoot ' good voice ', the highest level must be nodded. ”

And Youku is the industry boss, the largest video plate, and listed in the United States, "financing channels are not lacking." "Sohu Video is the focus of Zhang's exerting force," will certainly spell the life to do. "The people believe that the video industry hit the four big, will be a saw-sawing state."

Analysys International Monitoring data show that in the third quarter of 2013, Youku Potatoes, Archie Arts (including PPS), Sohu and Tencent video occupy the top 4 of China's online video market advertising revenue, of which Youku shares 27.85%, Archie Art 16.48%, Sohu video 10.34%, Tencent video 8.55%.

Pang that the current video industry in the top two situation is more clear, but Sohu and Tencent video advertising share is very close to the next two competition is expected to be intensified. "Tencent has been a relatively dull two-year experience, but in fact, its strategy has always been to prepare, and other markets more mature or the path is clear, and began to intervene, once the force of the words, the market pattern is still influential." ”