Video web site in a row losing marketing model is about life and death

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Successive retreat of the market scene, can not help but for the fate of domestic video site pinch a sweat!

April 17, the news of the imminent collapse of the Chinese body network. The company, founded by the South African media giant MIH (Milad Holdings), Shanghai Information Investment Co., Ltd. and Li Ning Corporation, is the only professional sports video site in the country that has an interactive sports community as its framework. Since the launch of its video site last September--the net, the click rate of the Chinese body net climbed once, at most, employing more than 200 employees. People familiar with the situation said that the high operating costs of the network directly led to the overall disintegration of the Chinese body net. As of March 30, 2007, the company has cut 90% of the staff, the remaining employees are only to maintain the day-to-day operation of the site, waiting for the acquisition or closing time to come.

It is noteworthy that, including new Chuan International, Lei China and thousands of oak group, including a number of domestic video sites, since September 2006 has been laid off. In particular, the Thousand Oak group, the number of people who have been cut by as much as 150. In addition, the long-term loss of hope for the domestic well-known video website Mysee also was forced to change the handsome at the end of last year.

Although 2006 Tudou, Youku and the Nineth channel and other video sites have also received some wind investment, but the industry told the IT times, the current companies are only a few real profits. As patience gradually loses, venture capitalists become more cautious, and video sites are on the verge of life and death.

There's nothing to advertise.

2006, the domestic network video industry can be described as "hot".

Data show that at the beginning of 2006 less than 30 domestic video sites, but at the end of the year this number increased to more than 250. In addition, last year, the domestic network video users reached 63 million, accounting for 47% of the number of netizens. Experts predict that the proportion is expected to reach 80% by 2010. Perhaps it is for the above reasons, plus YouTube and other video sites are increasingly popular, some people once thought that traditional TV programs will soon be replaced by the Internet. However, the status quo proves that the speculation has been distorted.

Bram Elly, an analyst at Convergence Consulting, an American market research firm, points out that Chinese netizens are accustomed to free use and that websites cannot survive by charging directly. In this case, advertising becomes an unavoidable topic.

According to statistics, 2006 domestic network video industry advertising total income of less than 600 million yuan, and the previous several major sites a year of investment more than 100 million yuan. If more than 240 other video web site costs, advertising revenue is only a drop in the bucket.

Bram Elly that the lack of advertising revenue for video sites mainly stems from the following reasons: Internet advertising is more expensive than traditional channels, especially in China, enterprise bandwidth cost is 4 times times of the United States, the number of viewers is also an important factor affecting the company to advertise.

YouTube, a video site admired by Chinese peers, has raised its value to 1 billion dollars in just a year, but few have noticed that YouTube, which invests 900,000 to 1.5 million dollars a month, has been slow to launch its own advertising business. Its founder Chad Hurley and Stevechen have said that "reliance on advertising will allow users to be able to make a move, leading to extinction." ”

Today, even the new owner, Google, Street: Chad Hurley and Stevechen ERA in the video clips inserted 30 seconds of practice, now confirmed to be in the "Temptation" phase.

Try a new pattern

Leave the wind investment after the video website can still live? Will it be another bubble after the Internet blog? When the direct charge and advertising mode are powerless, the only way is to try the new profit model.

An industry analyst, who declined to be named, points out that the online video, which has been given the concept of "sharing" since its inception, is doomed to detours on the profit model. "China's network video companies too much emphasis on concepts and technology, but the direct relationship with their own survival marketing attention is not enough," he said. It's all very much to look for new patterns and turn old habits upside down. ”

October 2006, the network distributor excellent Broadband Global network broadcast surreal "The Banquet" to earn enough of other people's eyes. Shizhong, a broadband CEO, told the IT times that the "banquet" network distribution is divided into free live and charge on demand and download three ways. The smaller proportion of free live is mainly to attract more users to improve the program's ratings. This marketing model is a good guarantee of the upstream content providers in the industry chain and downstream distribution terminals, while avoiding copyright disputes and the single form of the biographical content of netizens, quality and so on. According to its disclosure, the proceeds of this move is more than twice times the investment. It's slightly less than expected, but it's a good start for a video site that has long been plagued by profit patterns.

The same is the focus on marketing, Shanghai's current largest video site Mofile practice slightly different. It has signed a cooperation agreement with American Art Electric (EA), a famous American online gaming supplier, last December. Mofile in the EA area to provide users with the official EA authorized video materials, and for players to upload pieces of the game and exchange to build a platform. And for the headache of the advertising business, the company's head said, "also with Google to launch a ' revenue sharing ' advertising model." Although no details were given, he said, "the above cooperation has greatly improved the company's earnings." ”

"The concept of domestic video site management is changing profoundly." "As one of the most active companies to explore new profit patterns, Youku President Koo has his own understanding," more and more websites are starting to offer video-viewing services, moving real estate video to the Internet, or through video recruiting services to get revenue, which is exciting. ”

However, eager to get out of the predicament of domestic video sites are also very likely to go into the wrong.

There are indications that, since the "Yu incident" occurred, some enterprises as a business to buy lottery tickets: Do not pay attention to long-term development, and betting some "hype" or spoof on. Not only corrupted the industry ethos, but also for the development of enterprises to bury the curse.

April 12, 2007, the United States, China-US group managing director Zhang Ying said that in the case of serious piracy problems, high equipment costs and the effect of new profit model lag, most Chinese video sites will be eliminated by the market.

Although the words are cruel, it is worth thinking about the enterprises concerned.