Where is the profit path for video sites?

Absrtact: If the field of electronic commerce is now burning money, because there is a successful example of Taobao exist; then in the video field, when the leaders also face huge losses, facing the domestic far immature pay environment, video site profitability of the road and where? Copyright

If the field of E-commerce is now burning money, because there is a successful example of Taobao exist; then in the video field, when the leaders also face huge losses, facing the domestic far immature pay environment, video site profit path and where?

Copyright prices soar, unprecedented market competition, the industry shuffle, listed financing road closed, a lot of unresolved problems have been put on the table, will be in 2012 waiting for the video big guys see recruit the Recruit.

Copyright prices continue to rise

When people watch TV programs through video sites, they will not know that the Internet video industry has been badly beaten for copyright content.

As 酷6网 founder Shanyou said, the focus of the 2011 video industry will evolve from a channel dispute to a content debate. From 08 latent 10,000 yuan/set of unit price, to now Tencent to 1.85 million yuan/set of high cost (a total of 70 million) won the "Palace 2" copyright, video industry film and television drama copyright prices in two years of growth or even more than a hundredfold.

Video Copyright Price Map

The anti-piracy appeal and the video industry's listing complex, which lasted two years ago, provide a breeding ground for the copyright market. At the beginning of the year, due to the industry's homogeneity of the hidden worries increasingly surfaced, mainstream video sites began to buy exclusive copyright form to achieve the difference in content, thereby highlighting their brand value.

Sohu Video once became the industry alone mode of representative, its large number of purchase exclusive copyright, not the idea of distribution is widely questioned by peers. Part of the view that the exclusive cost of copyright costs too large to the current video site advertising revenue capabilities, simply to broadcast the content of unicast, it is difficult to recover the cost of copyright, and even to catch a small promotion costs. In addition, the monopoly of copyright by the way produced by the user stickiness is not strong, when the loss of copyright content, video site users will never return.

But even so, the exclusive copyright of the first-line film and television drama Works is still the hot and hot cakes. Popular Network CEO Lo Jiangchun that the video industry copyright purchase in 2012 will be divided, two or three-line film and television play alone copyright is likely to be neglected, the focus of contention is still a few boutique dramas.

And in the excitement network CEO Zheng, in 2012 10% of the quality of the content of copyright prices will rise, which is the market supply and demand relationship between the decision. Video site technology does not exist too large threshold, only content has always been the core competitive advantage. The exclusive resource of seizing advantage is also inevitable, how to obtain competitive content through resource integration and strategic cooperation is the key. ”

Because of the soaring copyright prices, the video industry has become a competition between giants, vertical video sites, Youku, Tudou, pplive and PPS, etc. through the listing approach or the introduction of venture capital to enrich their wallets, and second-line video sites have been unable to join the ranks of the copyright content.

The competitive pattern and the profit model to be solved

With the portal site with huge sums of water to test the field of video, the 2012 video industry competition will be more intense.

According to an unnamed video site insiders revealed that the pattern exists in the same quality enterprises, the competition is brutal, the site to drive up the copyright price, the phenomenon of the attack of the army, mutual digging angle of vicious competition means is commonplace.

Under the unprecedented competition environment, the video enterprise burns the money to be unavoidable, however in front of the high copyright expense and the bandwidth cost, the video industry profit prospect is like mirrors. Liu, vice president of the network, said that the current growth rate of advertising revenue has been far from the growth of copyright prices, video sites in 2012 will fear in the plight of the more deep.

In order to reduce the pressure of operating costs, the mainstream video site has been testing water homemade drama and self-made, but after all, video field still belongs to the emerging industry, in the production team and the selection of the angle and professional television stations, the production level is far from the performance of the phenomenon of repeated attacks. In this regard, Lo Jiangchun that video site as an Up-and-comer to pay tuition is inevitable, self-control field in 2012 will gradually close to specialization.

According to Tudou's third-quarter operating results, its net profit of 52.5 million yuan per year, which makes other video companies see the dawn of profit. But Youku CEO Koo's statement also represents a part of the video bosses ' point of view. "The two most important indicators of performance at this stage are the rapid growth in revenue and traffic, and Youku will continue to increase investment in content copyrights and server bandwidth, regardless of profitability." ”

Industry reshuffle part of the site is facing transformation

Film and television play the copyright price has become astronomical, huge bandwidth cost makes the video industry's profit prospects become mirrors elusive, as Lo Jiangchun said, the video industry shuffle from Cool 6 has been a grand acquisition has begun, in the continued burning money under the curtain, the category of 10 into 7, 7 into 5 of the promotion process, "super women" The shuffle is unfolding.

Shanyou did not think that cool 6 as the first listed in the U.S. video site, when and Youku, Tudou can be called a moment of Jay, but now ended up in the situation. Originally cool 6 Take the lead to remove pirated wrist led to eliminate piracy is not brought back to the industry leader, but led to user churn, viscosity reduction. Subsequently, 酷6网 main drama strategy, heavy purchase of copyright, the intention to reverse the situation, but in the advertising revenue and cost of huge gap in front, cool 6 had to be forced to transition, but also caused hit layoffs. Now 酷6网 original team has broken down, the grand system fully take over, after several months of adjustment to successfully realize the strategic transition to the video community, but it is no longer the brave.

The same transformation also faces six rooms, popcorn and 56 nets. Zhou Juan initially founded 56 Network has been six years, however, 56 of the development has always been tepid, 08 due to video licensing certification, up to one months of the closure of the site is a wake-up call. A careless trick is to lose a full game. See the same type of site, Youku and Tudou have been listed in the United States, Zhou Juan only helpless to 80 million U.S. dollars to sell 56 net, and their own to join the management as Vice president. At present, 56 net main Entertainment interactive content, has been expressly not follow up the film and television drama copyright purchase.

Now, cool 6 and 56 respectively as a grand, everyone in the chain of the existence of a link, forced to transform the video site has been announced in advance in the 2012 industry competition exits, in the future only hope that in their respective vertical areas occupy a place.

East is not bright Western light? Video site is difficult to market

The city is not the ultimate goal of video enterprise, but it is a necessary link. Through the listing, the video website can enhance the brand value, thus more easy to obtain the advertisers ' favor, will form the huge pressure to the competitor.

However, in the middle of this year, as the shares in the United States into a crisis of integrity, a mighty listing of the tide abruptly stopped. Thunderbolt See the wind on the market, but never buxinxie eventually into the destiny, indefinitely postponed the listing process. Throughout the second half of the year, the domestic Internet domain only Tudou successfully landed in the city, the rest of the video companies are still struggling to wait for the market environment warmer.

However, there is a point of view, even if the lifting of the ban on China's video companies to the market is still not a smooth road.

Tudou successfully landed on Nasdaq, in addition to the user's size and revenue in the lead, China's YouTube positioning for its many points. Foreign investors are convinced that the east is not bright in the west, for the United States did not succeed in the precedent of the enterprise is not optimistic, even if the realization of profits also fell on the eve of the listing, and this is the stock market in recent years repeatedly short of the key factors. For the Thunder, PPLive, PPS and Storm audio and video, such as the desire to go to the U.S. listing in 2012, this is tantamount to a thunderbolt. In addition, piracy has repeatedly banned more than part of the video site has been criticized by the United States and the main reasons for the research institutions.

The outlook for the client camp is bleak, and the site camp's situation is not optimistic.

To follow Hulu mode of video site odd art nets, Qi Art company CEO Gong has made clear that the company will be listed in 2014 years, not in the short term.

Youku CEO Koo the video industry's 2012-year listing prospects as well. "In the next 1 years, the capital market will be difficult to improve, and then video site fantasy market is not realistic." ”

The continued rise in copyright prices to make video site profitability into trouble, in this context, video web site financing of the road to the ice means that the 2012 industry reshuffle will be more turbulent, when the enterprise operation is not enough to support the high cost of expenditure, lagging behind in the competition is inevitable, if the enterprise is still the same, or will repeat the fate of cool 6.