The start of a social game, Zynga, builds on a proven "fast-running" model that is unstoppable on Facebook's platform. Specifically, Zynga reduces the cost and time of front-end development by duplicating existing hot games and acquiring mature game teams, while focusing on subsequent development, optimizing the player experience, improving the stickiness of the game and prolonging the lifecycle. In the face of Facebook's growing ceiling, Zynga's business logic is simple-replicating, and replicating the "fast-running" gene that is built on Facebook across platforms and across geographies. But Zynga's business model is flawed: it relies heavily on the Facebook platform, lacks sufficient control over users, and is unable to withstand erosion from mobile platforms. The world of Social games, Zynga won the first half of the race. May 7, 2012, the biggest six social game developers on the Facebook platform are Zynga, King.com, Wooga, EA, Disney and Rovio. Of these, Zynga leads by 269 million of the average monthly active user (MAU), higher than King.com's 45 million, Wooga's 44.94 million, EA's 44.52 million and Disney's 23.76 million, It is also higher than the 23.6 million of Rovio who landed on Facebook in February 2012 (Figure 1). Zynga has grown rapidly since its inception in 5 years. During the 2008-2011-year period of obtaining first-round financing, revenue grew 58 times times, with an annualised growth rate of 177% per cent, with monthly active users growing from 99 million in the three quarter of 2009 to 265 million in May 2012. That's enough to make Zynga a "envy-hate" star. And most notably, from 2009 to 2012, in the top 20 social games in Facebook, Zynga was a tau, guaranteed 8-9 games a year, a "total winner" (schedule). In this completely competitive market, every day there are games to die, every day there are game outbreaks, why Zynga can be long-term preservation? How does Zynga build up its core competencies with low entry thresholds for social gaming? With the combination of the capital and founder Pincus team, Zynga has built a business model that is completely different from traditional video games. Further research has found that the vast majority of Zynga's popular games are not original. In other words, the social gaming market is full of homogenization products, and Zynga's approach is to break free from game development capabilities, reduce the risk of research and development failures, shorten front-end development time, and focus on subsequent development to optimize the player experience and enhance game stickiness. Shorten front-end development time social games and mobile games spread faster than traditional games. Global players recognized the top game "World of Warcraft", in 6 years time accumulated 12 million users, and ZYnga's first strategy game Empires&allies 9 days on Facebook and attracted more than 10 million users. The average daily active user (DAU) in the two weeks after the release of CityVille2010 in December reached 8 million, 30 days to 14 million. Draw something only one months after the launch of Apple and Android, the download exceeded 12 million times and more than 35 million downloads per 6 weeks. CityVille Online 6 days after the active user 3.2 million, Happy Farm (FarmVille) for 2.7 million, Castleville to refresh the record to about 5 million. Words with friends at the same time mobile and Facebook two platform, in 1.5 times the daily active users up to 8.9 million, FrontierVille game released on June 9, 2010, in about 5 weeks, the number of users reached 20 million. On the other hand, the life cycle of the game is much shorter. For game developers, the failure of new games to invest in huge sums of money, or the release of a popular freshness period, is a fatal risk. By replicating and acquiring two major tools, Zynga directly compresses research and development cycles and costs and quickly wins users. It can be said that any new game with more than 1 million active users in the average monthly may become a prey for Zynga. Most of Zynga's most popular games are acquired through replication and acquisitions, Draw something, Words with Friends, YoVille are acquisitions, happy Farms, Hidden Chronicle, Caféworld, PetVille, the Mafia (Mafia Wars), and Zynga Poker are replicated. Method One: Quickly copy popular games and repel competitors. In November 2008, only two months after the popular game Mob Wars was released, Zynga launched a similar mafia game in which the number of users soared to 23.26 million, and in June 2009, it quickly launched a happy farm in the two months following the farm town epidemic, with the number of users 74 million Playfish's two games pet powering and restaurant city were copied by Zynga to develop Caféworld and PetVille (Figure 2). Zynga's CTO Cadille Li Hu also admits that Zynga is in a position to find a more popular form of play in time and replicate it quickly. With Zynga's huge user population, the number of active users of the games being replicated often goes far beyond the original game. Pincus's IPO in December 2011 Lu Yanzhong bluntly, "Zynga has its own method of survey." For any type of game we release, wewanted to be 3-5 times larger than the original pioneers of the game. That is true. The Happy farm is 4 times times higher than the farm town, and the Mafia has 18 times times more users than mob wars, and FishVille is twice times higher than fish world. In the April 2009, the powering pet was given 20.04 million users (ie Mau) and, 8 months later, Zynga quickly replicated PetVille. And the idea of its hidden chronicles game was taken from the Disney's Playdom Time Garden (Gardens), which, after 5 consecutive months as the fastest-growing game in the league, was introduced by Zynga, the designer Cara Ely, January 2012 launched the copy game. Rapid replication, often resulting in the original game vitality. As of December 2011, when the Zynga replication game was launched, the time Garden had a 9.7 million average monthly number of active users on Facebook, ranking 11, while on May 7, 2012 the number of active monthly users dropped to 5.1 million, the top 20. The number of active users of replicas hidden chronicles quickly rose to 23.3 million, ranking 6th. The days are even harder for small developers who have hatched popular games. If the farm town was launched on May 10, only 730,000 Mau and 190,000 dau were left, and in April 2009 the game had more than 14 million users; the talltree of fish world only kept 270,000 Mau and 50,000 dau, The number of users at peak time was very large, while mob wars was more miserable, barely retaining 90,000 mau and 30,000 dau. To this end, Zynga's rapid replication practices have been widely criticized and intellectual property litigation continues. Pincus in the company's internal memo explicitly rejects the criticism: Google (Weibo) is not the first search engine creator, Apple has not created the first MP3 player or tablet computer, Facebook is not the first to appear social networking sites. But these companies are creatively leading the development of segments. "We do not have to insist on whether to enter the market first, whether it is more important to become the best in the market." We continue to create free, socially, easy-to-use and high-quality games, and continue to expand these types of games. "Method Two: The acquisition of a mature game team." Zynga listed 1 billion dollars in December 2011. The deep pockets of Zynga have shifted their takeover strategy. According to public reports, Zynga bought 22 companies in 2010-2011 years, costing only $147.2 million trillion, while the March 2012 acquisition of a Omgpop company was priced at $180 million trillion. ZyngBarry Cauter Barry Cottle, a merger director, plans to increase mergers and acquisitions, spend hundreds of millions of of dollars looking for a game to match the happy Farm and CityVille, and add more of the high growth games that you draw I guess (Draw something) into Zynga's territory, Acquire more excellent teams with mature products. "Plants vs Zombies" and "Gem bejeweled" mature Game Developers Bao Kai (POPCAP) has refused to Zynga9.5 billion of the olive branch, mobile game giant Rovio also received ZYNGA24 billion dollar quotes. In fact, the acquisition of mature games are some of the industry's leading expansion of the means, the Disney acquisition of Playdom, arts and electronic incorporation Playfish belong to the acquisition of mature games. The trend towards a mature gaming team means that Native American social games are maturing, and that future growth may slow or even run into user churn. The change in the number of active subscribers from Zynga can also be seen as a weakness in the growth of American social-game users. The proportion of Zynga's active subscribers to Facebook's active population has fallen from 57.5% in the four quarter of 2009 to 28.38% in the three quarter of 2011. Focus on back-end development around 2008, many social gaming players saw viral transmission as a key indicator of success, and they did get a huge amount of users, but the user churn rate was high. Pincus quickly realized that the retention rate was the key to building a large, active user base. The continuous development of the back end and the data analysis support behind it are especially important. In order to stabilize retention rates, Zynga has resorted to the killer: strong data analysis capabilities. Unlike previous gaming companies, Zynga is no longer focused on developing passionate games, but is turning grim data analysis into user demand. Play "Patch" to keep up with the player's needs every game of Zynga builds a data model to assess the impact of each function and make forward-looking judgments. For example, the growth time, yield, and price of each crop, and the money needed to build a mall or restaurant, depend on complex model results rather than perceptual experience judgments. At the same time, Zynga used the data to "split" the game quite "fragmented", such as the first 5 minutes with what props to the best effect. Through data statistics and analysis, Zynga will "inject" the conclusion into the game, constantly patching, to achieve targeted, to a considerable extent, reduce the risk of the game failure. Each of Zynga's games is said to have about 30,000 reports, including how to get users, how to retain users, how to guide users to pay, and how each activity in the game works. By constantly patching to keep up with changes in user needs, and with the introduction of a series of games, Zynga's series of games spans 4-5 of years of regular life cycles. TExES Holdem poker,2009-2011 Year, released in September 2007At the end of the Mau still up to 22.29 million, 34.69 million, 29.6 million, May 15, 2012, Mau rose to 35.8 million. Mafia games have been one of the most popular top 20 social games on Facebook since 2009-2011. The Ville series is the first game on Facebook since 2009 to 2012 May 15. Business data can also be used as evidence. Zynga's annual report disclosed that the company's game revenue increased by $491 million in 2011, with Happy Farms, FrontierVille and CityVille increasing by 1.187, 1.374 and 139.1 million dollars respectively; the biggest contributor to the 5 games is the happy farm, FrontierVille, Zynga Poker, Mafia and CityVille, respectively, accounted for 27%, 15%, 15%, 13% and 13% of Zynga's total income, accounting for 83%. 2010, the company's game revenue increased by 488.9 million U.S. dollars, happy farm, Mafia, zynga poker increased by 1.669, 1.291, 85.1 million dollars respectively, the mafia, Happy Farm, Zynga poker contribution of income accounted for 28%, 30% and 20%. It is not hard to see that the Ville series, the Poker series and the Mifia series are Zynga's most mature product lines and the most successful series of games. The very long life cycle of Zynga's poker, in particular, is admirable. The July 2007 issue of Zynga Poker, the June 2008 mafia, is still an important source of revenue for Zynga in 2010 and 2011. The Ville series is the fastest growing segment of the Zynga2011 year. Every six months or so, Zynga launches a new Ville game. June 2008, the acquisition of yoville;2009 year June, the release of Happy Farm, December 2009, in the Ville pedigree in addition to PetVille and fishville;2010 year June, launched FrontierVille December 2010 Issue cityville;2011 January, Release castleville;2012 May, new Ville game Forestville test in Canada Apple users in the region are already free to download the game via the itunes App Store. The With Friends series is also expected to become another important series for Zynga. The common feature of cloud computing in response to instantaneous peak social games is the short life cycle and the abnormally high peak pressure, and many game makers use cloud computing platforms to erase the impact of user volume changes. When the Happy Farm was released in June 2009, Zynga thought it was only more than 2 active users in two months.0 is success. In less than two months, however, the game has become the hottest game in Zynga's past two years, with almost 1 million new players added in the first half of the week. Currently, the game has more than 70 million active players in average monthly. The success of the game, cloud computing services work. "Because Zynga's data center had no space at the time, we rented Amazon EC2 (Amazon elastic Compute Cloud) cloud storage service." In retrospect, this is a very fortunate decision, and given the huge growth rate of the game, the happy farm has already failed without Amazon's help. "said Williams, vice president of Zynga network operations. Later, Zynga changed the game release model. In less than a day, Zynga will be able to allocate the computing power of the new game to a 10 million-day active player through Amazon EC2. Currently, each of Zynga's games is first posted on the EC2 platform, and continues to watch for 3-6 months, and Zynga will move the game from Amazon EC2 to its data center if the game grows weak or the outlook is predictable. However, in the view of Zynga's infrastructure CTO, Amazon's services are too inflexible to waste resources seriously. Zynga has been aggressively developing its own cloud infrastructure since 2011. By 2011, 80% of its services had been built from a data center, and 80% of the cloud services were dependent on Amazon a year ago. The financial background of Cass and the business intuition accumulated by many startups have made him adept at translating the exploding users of social games into income. And for the grasp of the way the revenue, Ping Cass has a surprising intuition. Zynga's first success came from MySpace. On the MySpace platform, social gaming companies gain by implanting ads in games. Zynga did the same early days, but then he foresaw that Facebook would stand out from the competition and turn to Facebook. It is this smart move that has enabled Zynga to get Facebook's lead in its fast-growing critical period. 2010 to fully explore the future of virtual goods until 2007, virtual goods are only the American game market in the experiment, and eventually Zynga turned it into a real business model: Game free, prop fees. This model was not initially recognized by the market. Some manufacturers still fall in charge games until 2010, such as the Newtoy acquired in Zynga2010 October, when the chess with friends was released in November 2008, it took € 2.99 (4.99 USD) to download at a time, without any game ads. The founder Betner Brothers thought, "We thought we were going to send it, and only 10 people bought the game." After being acquired by Zynga, NewtoyThe launch of the hanging with friends on the free form, there are applications to buy, sell game coins and virtual items. The scramble with friends is traded directly in virtual currency. According to Dean Takahashi, a writer of the history of Zynga, Zynga has made a big profit from the free value-added model. If the player does not pay the upper limit, the equivalent of a steady stream of horns into the old arcade. For the 60-dollar home hosting game, the publisher fixed the revenue limit for each user, while Zynga's poker chips were $5, 20, and then 100 dollars. "You know what?" There are people in Kuwait who are willing to spend 100 of dollars to buy poker chips. "In the era of user-paid economics, too many people mistakenly set the price of goods in a micro-transaction at $2 trillion," says Ping-Cass. "Zynga, which takes the free value-added model, has become a big winner. 2011, its virtual goods sales revenue amounted to 1.066 billion U.S. dollars, accounting for its total income of 93%. The huge increase in sales of Zynga's Virtual goods was in 2010, with a revenue share of 96%, up 25% from 2009 's 71%. At present, about 2% of registered users have finally generated the purchase behavior, with the help of Internet, the cost of the user is getting lower. For Zynga, the way to think about it is to create a funnel that turns ordinary players into paid players. 2011 Advertising In addition to virtual goods sales, Zynga's other source of revenue is advertising, mainly brand virtual goods and sponsorship, as well as a number of participatory advertising and mobile advertising. In 2011, Zynga's advertising revenues began to soar 2.3 times times to $74.45 million trillion, an increase far beyond virtual goods. Advertising revenue now accounts for 7% of Zynga's total income, up 3% from 2010. The advantage of advertising mode is that as long as the game has enough users, you can insert the appropriate ads at any point in time. For example, in "Town Town", the player builds the 800万家百 store (Best Buy) in the game, works with advertisers to promote DreamWorks movie "Kung Fu Panda 2", where players build "Kung Fu Panda 2" in the "city" Car theater, There are now more than 15 million car theaters. In the "Happy Farm", Zynga has also been implanted in ads at General Mills and Generalmills and McDonald's. "Farm Town" was released in June 2009, but Lady Gaga's ads were not released until May 2011. In the 2012 acquisition of "You guessed me," Zynga began inserting branded ads, the American Hockey League (NHL) was the first to buy such ads, according to the Advertising Age. Zynga's Achilles heel in April 2012, Zynga launched two times whenSome insiders of the company sold 43 million shares at a price of $12 per share, 516 million U.S. dollars, and the proceeds of financing did not flow into the company's accounts. Among them, Ping Cass sold 16.5 million shares, set up now 200 million U.S. dollars. In just 3 months, Zynga reported its second-quarter earnings, with a net loss of $22.8 million, and its share price plunged 38%. Zynga's share price has plunged from $12 trillion to $3 since insiders dumped shares. Aside from the market's skepticism about insider trading, it is undeniable that the problems that Zynga has masked in the fast-growing period are surfacing, and that the fatal flaws in its business model are becoming increasingly prominent. The big flaw in Zynga's business model is that it relies heavily on the Facebook platform and lacks sufficient control over its users, and that if Facebook turns to support its rivals, it will be a fatal blow to Zynga, and the rising bid price will greatly compress Zynga's profit margins, The cost of research and development in 2011 as high as 727 million U.S. dollars, 2012 in the first half of the research and development costs of 358 million U.S. dollars, while the same time as 202 million dollars, and third, unable to withstand the erosion from the mobile platform, as the United States the growing popularity of 3G network, this is the most fatal challenge of With the birth of the Friends series in November 2008, David Betner (David bettner) and Paul Betner (Paul Bettner) brothers founded Newtoy and released the first iphone game chess with Friends, So that users can walk through the network to play a variety of chess games. July 2009, inspired by multiplayer game Scrabble, they created and released words with Friends. In November 2010, Zynga bought Newtoy with 53.3 million dollars to set up the Zynga with Friends Studios, David Betner became the director of the studio, and Paul Betner became the general manager of the studio. After the acquisition, the studio released two new games--hanging with Friends and scramble with Friends, and also released the words with Friends Facebook version. Betner is very clear about the charm of the With Friends series: The game is more of a communication than a game. In 2012, Zynga invested heavily in the draw something lineage with friends series games. Facebook, the loser Facebook? Zynga's "fast-running" model looks beautiful, but is it impeccable? The most lethal link is the subtle competing relationship with Facebook or dark or bright.Zynga remains deeply reliant on Facebook for the next 3 years. In May 2010, Zynga signed a supplemental agreement with Facebook to allow Facebook's FB payment system to be used as a payment channel, while Facebook took 30% per cent of its users ' payments from Zynga to May 2015. In 2011, some 15 million Zynga users bought virtual goods through the FB payment system, contributing 12% of their revenue (advertising and user fees), 2011-year-A-quarter 13%, 2012-year-11%,2009 and 2010-less data than 10%. Facebook's reliance on Zynga is 15%. Zynga is one of Facebook's biggest advertisers, with an annual advertising campaign add Facebook's revenue. Facebook's updated S-1 document shows that about 15% of FB's revenue came from Zynga in the 2012 quarter, with 4% of the display ads from the Zynga Apps page, and 11% from Zynga subscribers. That accounted for 19% per cent of the 2011 years, but the total income increased by more than 19 million dollars. Facebook has a "hands on" plan. On the one hand, Facebook has used the 5-year long term agreement and the exclusive agency of the 8 games to lock up Zynga's profits, and has been aggressively supporting other social-game developers such as Wooga. Zynga's online users in Facebook encounter the ceiling. Creutz, an analyst at Cowen, said Zynga's current development is not optimistic. Since it is hard to get Facebook users to experience a variety of games at the same time, the launch of any new Zynga tour has made it hard to get new users from the Facebook platform. Every time they launch a game, the users they get are often the users who are lost by other games in the company. For this, Zynga is actively exploring other platforms, zynga.com, IPhone, IPad, Android, and one of the few. Four rounds of financing to build social game giants 2007, when Facebook opened its platform to app developers, social games took a qualitative leap. Zynga started off with a simple poker game, rising rapidly and getting 4 rounds of $529 million trillion in funding in just a few short years. 2007, Mark Ping's idea of the game has changed dramatically, he said in an interview, "I've always thought that social games are like a great cocktail party: At first you'll be glad to see a good friend, but the value of a cocktail party is to get a weak connection in a social circle." You will meet some people, such as friends and friends. I think that once you get your friends and their friends together, the last thing you can do is organize everyone to play games. I've been hotThe game, but suffer from no time, so never to gather friends in a place to play games. So it's a good idea to embed the game in the existing network of friends. Pincus, who founded Zynga, is catching up with the onset of American social games. Prior to the creation of Zynga, Cass, a graduate of the Wharton School, engaged in investment banking, then went to Harvard Business School for an MBA and graduated in 1993, followed by frequent job-hopping. After setting up Zynga, Cass began looking for suitable investors in acquaintances. He has found the angel investor, TechStars Director David Tichy (David Tisch), but the latter does not believe his poker game has a future. Jeff Brown, a Jeff Brown spokesman, also said it was hard to predict Zynga's rise in 2007. But Zynga has let the wrong investors down. Social games took a qualitative leap in the 2007, when Facebook opened the platform to app developers. The 3-month-old Zynga, founded in September 2007, launched its first social game, Zynga Poker, with incredible intuition. The reason to choose a poker game is because it is so simple that everyone plays it so that users can have a poker night on Facebook and friends around. It is not difficult to understand the potential user base and then the game's popularity. First round financing: lay a solid foundation in 2007, when Zynga embarked on its first round of financing, it had only 693,000 dollars in revenue. January 15, 2008, Zynga announced a total of 5 million dollars in investment from angel investors such as Union Square Ventures, Foundry Group, Avalon Ventures, Reid Hoffman and Peter Thiel. Fred Wilson, USV of Union Square Ventures, is a hot figure in the venture capital company, accepting Hunch CEO and co-founder Chris Dickson (Chris Dixon) USV's investment philosophy was discussed in the interview: The target must be a large network and an interactive user company. Its classic portfolio includes companies such as Twitter, Foursquare, Tumblr, Etsy and clickable, in addition to Zynga. Foundry Group,2010, founded in 2007, won a second round of investment pledges of $225 million for Zynga's success in September. Second round of financing: introduction of Heavyweight shareholders in July 2008, Zynga ushered in a heavyweight shareholder: TDF (Kpcb,kleiner Perkins Caufield & Byers), which ZyNga invested 29 million dollars. As a second round of expansion financing, Kleiner again injected $15.1 million trillion. According to S-1 documents disclosed, on the eve of listing, Kleiner holds Zynga6516 stock B, accounting for 11.2%. Investing in Zynga has once again validated Kleiner's experience with the internet industry. In 2008, Zynga revenue of $19.4 million trillion, 22.1 million dollars, was 28 times times that of 2007. Founded in 1972, Kleiner to be adept at grasping the trend of Internet industry. It was in the 90 's desktop internet era of the tide-goers, mining enterprise value, to find and create industry leaders. Investment Rambus, Excite, Amazon, Netscape, Ghime, respectively, Profit 51 times times, 72 times times, 44 times times, 80 times times and 87 times times. At the beginning of 21st century, Kleiner again became the leader of the mobile internet age. November 2010, Morgan Stanley internet Queen Mary Meeker officially joined Kleiner. Meeker and Chris DePuy, who also served at Morgan Stanley in 1995, released the Internet report, which was praised by the industry as the "bible" of the online edition. A mobile Internet report published by Mary Meeker and Matt Murphy in February 2011 has been widely circulated as a booster for the global mobile internet boom. Not to mention is Kleiner partner Bin Gauden (Bing Gordon). When Zynga sought financing, it had promoted its projects to the arts electric, but the art-electric core management was not interested, making Gordon, the executive at the top of the art electric power, sadly disappointed. In 2008, Gao Deng, who worked for more than 25 years at Kleiner, quickly completed his first investment-zynga. Gordon then joined the Zynga board. Third round of financing: DST December 15, 2009, led by Milner (Yuri Milner) Russian investment company DST (Digital Sky Technologies), with venture capital company Andreessen Horowitz, Invest 180 million dollars in Zynga. This year, Zynga made the choice on a different platform: it chose to withdraw after touching the iphone game, while its rival, SGN, plunged into the iphone market in 2009. This is perhaps the current mishap in Zynga, which makes it possible for the two social gaming companies from Japan, Gree and Dena, to have a chance to challenge Zynga in the American mobile social arena. At the time, he thought Apple's platform was not sound enough, and he hoped Apple would turn the iphone into a "social" device, just as Facebook had the networks it needed for social games. Apple's platform does not have the ability to quickly promote games in a circle of friends, or to make users fasterTo discover the function of the game, so Ping Cass hope that Apple's platform will also have the "Application buy" function, so that players can play on the iphone free value-added games. But if Zynga is in the mobile gaming world, it may not be able to sit in the top spot of a social game. In the Four Seasons of 2009, Zynga's monthly active users completed the perfect three jump, soaring from 99 million in the previous quarter to 207 million, and for 9 consecutive quarters, Zynga's monthly active users grew steadily on the 200 million platform. With the proliferation of social Games, Zynga's game concentration has declined year by year. In 2008-2011, the revenue share of the 3 games that contributed the most was 93%, 83%, 78% and 57% (September 2012 ago). After the third round of financing, Zynga began to expand its mergers and acquisitions. From February 2008 to February 2011, Zynga launched more than 20 acquisitions. July 31, 2009, the global Internet monitoring agency comscore said Zynga, with 44 million of the Mau, beyond the Yahoo Games, the United States to sit on the top of online gaming operators. Fourth round of financing: support from SoftBank and Google in June 2010, Zynga's fourth round of financing list, Google and Japanese investment company SoftBank (Softbank) impressively in the column, a total of 300 million U.S. dollars. Choose Google as a partner, the two sides obviously have common interests to consider. Google was planning to build a social networking platform, with a higher level of Facebook. Zynga has been plotting to reduce its reliance on Facebook. SoftBank has a reputation for investing in the mobile Internet, with 150 million of dollars invested in Zynga operations in Japan. However, like Zynga and Facebook, the expansion in Japan was not smooth and eventually shut down the operations of Farmvillage and Treasure Island in Japan. Not only Zynga,cie games also closed the Japanese Studios and Mobage Edition car Town; The art power is closed restaurant City;crowdstar closed Happy Aquarium;rockyou Racing four games.
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