Image Source @视觉中国
Titanium media note: this article comes from WeChat official account ID:youhaoxifilm, author: Wang Li Nhi, editor: Wu Yanyu, titanium media authorized reprint.
"it's better than digging a grave for us." in 2014, after seeing the rise of domestic video sites, Hunan Satellite TV decided to integrate Golden Eagle and Mango TV platforms. Online new video site "mango TV". This at that time the mango media general manager Zhang Yong looks, is to give oneself "planing pit".
Hunan Radio and Television of that year perhaps did not expect, this "pit" became a few years later "self-help straw." In April, Mango TV went public and achieved a net profit of 616 million in Q3, while iqiyi's net loss for the same period exceeded 5.6 billion yuan, and the number of domestic streaming media losses also continued to expand.
Mango TV third quarter S-class variety "Wife's Romantic Travel"
More than Mango TV, under the pattern of You Ai Teng's leading line, the cost of content is high, and the road to burning money continues. The drug lords found that under the pressure of cost and the tremendous changes in the industry, the media that had withdrawn from the "burning money" runway had also withdrawn from the competition of the "C-bit". Fast-paced, PPS, LeTV and other once popular platforms have gradually come to an end, and the “live” platform is trying to find its own way of survival.
Mango TV successfully went public this year, bilibili also landed on NASDAQ the day before iqiyi's listing, and commercialized with quadratic brand difference. PP Video is allied with Su Ning, relying on the latter's capital and sports advantages to continue to develop independently. Sohu Video announced a cut in content costs and reduced losses and said it would be "profitable" in the future.
After the industry's big waves, the domestic streaming media pattern has taken shape. How will the streaming media platform outside of You Aiteng survive? Do they still have the opportunity to redefine the future?
The investment has increased dramatically, and there is no money to stream the media.
More than ten years have passed since the emergence of the first batch of streaming media "wave riders".
In 2003, Jia Yueting founded Beijing Xiber Communication Technology Co., Ltd in Beijing. The second year, the earliest domestic video site-Letv online. In 2005, Tudou, PPTV,PPS and other video platforms were launched one after another; A year later, Youku, Sohu podcast online, the first batch of streaming media officially began to compete, but their future destiny is different.
In October 2006, Youtube, a nearly two-year-old American video streaming media, was bought by Google for a whopping $1.65 billion. The huge business opportunities of streaming media have been discovered by domestic businessmen. During this period, the number of domestic video platforms has risen rapidly, and the content is dominated by video sharing mode.
One year later, Wang Xin team used P2P technology to develop and carry the QVOD streaming media on-demand system for fast broadcast, and quickly occupied the streaming media market within a few years, becoming a "dark horse" in the industry; rooted in the second element Culture's first domestic barrage video site Acfun (hereinafter referred to as a station) also became the "position" of the second elementary circle in that year; in 2009, another second-yuan "giant" B station was established.
Under the situation of "a hundred flowers blooming", a group of platforms with a strong capital background began to emerge, and they changed the pattern of the industry around 2010.
In 2010, Baidu invested in the creation of iQiyi (formerly Qiyi.com); one year later, Tencent launched Tencent video; meanwhile, the relatively senior Youku and Tudou were listed in the past two years, and then in August 2012. On the 20th, the company merged and established Youku Tudou Group. So far, Tudou has withdrawn from competition. One year later, Baidu acquired PPS and merged into iQiyi. PPS also officially withdrew from the streaming media stage.
In 2011, LeTV once again became a pioneer, and officially opened the digital streaming market with the exclusive rights of a rumor. This Gongdou drama has set a record of breaking 10 million on the first day, breaking 300 million in half a month, and breaking the record of 1.5 billion in the whole drama. As a result, the number of members of the platform has soared and become an "industry myth".
Legend of Zhen Huan (Legend of Zhen Huan), a solo broadcast on LeTV.
Through this campaign, the major streaming media recognized the importance of copyright in the head, and spent a great deal of money on the era of big drama copyright. "We expect to increase the cost of purchasing video content in 2013," Sohu CFO Yu Chuyuan said in response to analysts' questions in Q4 in 2012. "the total purchase cost of the program broadcast in 2012 is $60 million," he said. We expect this figure to rise to $70 million or $80 million this year. "
At the time, they might not have realized that the $70 million figure was just beginning, less than a fraction of what Youiteng put into content in the future, and that the real "money-burning war" had not yet begun. Then, relying on the gold master's love, began to exaggerate the speed of increasing the cost of copyright.
Since the beginning of 2013, iQiyi has won a series of popular solo dramas such as "You from the Stars" and "The Descendants of the Sun", which opened the situation for iQiyi. In 2015, "Tomb Notes" opened the door to homemade online dramas, and its production cost has reached 5 million/set; Tencent Video exclusively introduced HBO's "Game of Thrones", "Atlantic Empire" and other episodes in 2014. At the end of June 2015, Youku introduced the popular drama "Hyde, Jekyll and Me" from South Korean SBS TV. Although there is no specific copyright price, the high cost of content during this period has been unmatched at the beginning of the rise of streaming media.
In 2015, iqiyi's "costs and expenses" reached 7.67 billion yuan, up 92.8 percent from 3.983 billion yuan in 2014, with content costs rising as high as 136 percent. And this, for the "piracy" of the fast broadcast, it is unimaginable.
What makes Express broadcast even more unexpected is that while the copyright costs of the major platforms have increased, "piracy", which once ravaged the industry, has also become the target of the blow. On November 13, 2013, Youku Tudou Group, Sohu Video, Tencent Video, Leeco and others jointly launched the "Joint Action against Anti-Piracy of online Video in China"; At the same time, the central four ministries jointly launched the fight against network infringement and piracy specific governance "sword net operation." Driven by policy, the former tycoon, who once lived on piracy, dropped out of history.
The injection of large capital provided strong support for the copyright war of You Ai Teng. In May 2013, pps was acquired by Baidu and merged into iQiyi. In 2014, Alibaba took a share of Youku Tudou for US$1.2 billion. One year later, Youku Tudou was delisted and officially became a wholly-owned subsidiary of Alibaba.
Continued "burning money" and policy restrictions, many platforms gradually lost in the "burn money" war.
In 2015, LeTV and Storm Video, which are still profitable, began to lose money in just two or three years. LeTV.com has to withdraw from the first-line competition due to the involvement of the parent company's funds. Storm video has also intensified its losses year by year due to the TV sales business. Due to the low revenue of other businesses, the cost is insufficient in the later stage and gradually fades out in the competition. .
Even Sohu video, which once stood alongside the Youku Tudou and stood in the first echelon, announced that it had given up “burning money”. The financial report showed that its losses have been narrowed continuously, and it is profitable next year; PP video is unable to copyright war, but instead is streaming media. Cooperation has opened up a new development path; while A has stood on the shelves after many times of content, in the face of the ever-expanding user scale of the former rival B station, there is no longer catching up.
After the disappearance of a group of "former giants", the industry pattern of domestic long-distance video streaming media officially formed the first echelon led by "Youai Teng". The great changes are still continuing, even the "first ladder" of Youai Teng can not erase the "growth troubles" brought about by the burning of money and competition, and other surviving streaming media companies cannot relax for a moment and do not have the capital to "burn money." They must find a way out for themselves at the edge of the cliff.
Second-line Survival Law: "differential Brand"
Although it is no longer possible to compete with Aiteng in terms of content costs, second-line streaming media strives to find ways to survive in terms of platform differentiation and brand-building. For the big and all of you love, preemptive market share is still the most important, at this stage to cultivate user stickiness and brand recognition, it seems to be difficult. For the platform with relatively small volume and different content, the stickiness of users and the differentiation of brand have become the core strategy of the current stage.
Bilibili, for example, is praised by the industry for its stickiness at this stage, with 3.5 million paid Q3 subscribers, up 202 percent from the same period last year, and 85 minutes a day on average. At the Q3 earnings conference, bilibili CEO Chen Rui said: "our strategy for paying members will be tightly focused on user attributes and platform strengths, and will not blindly invest or invest in a wide range of areas."
In terms of content, animation and documentaries are the main directions in the next phase, and live and value-added services are also growing by 292% in Q3. In addition, bilibili deliberately emphasized branding, representing its community culture of logo "small TV" and "2233 Niang" frequently in the major activities, brand image has been deep into the user.
On the day bilibili went public, there was a huge picture of "small TV" on the big screen in Times Square. The official publicity photos were a group of "2233 Niang" and "Little TV suit Men".
Similar to the B station, the Mango TV is also aimed at the user when laying out the content. According to Quest Mobile data, the age structure of Mango TV APP users is significantly younger than its competitors. The proportion of users aged 24 and below is 61.6%, and the proportion of female users is 76.06%. Based on the user's portrait, Mango TV's content is mainly directed toward young and female, and launched "Star Detective", "Where is Dad?" "Mom is Superman" and so on. This "precise layout" and "homemade content" strategy is also mentioned in its Q3 earnings report.
"if we go after BAT, we get stuck in their business logic and profit model." Mango TV CEO Cai Huai-Jun told the 2018 Advertising Association.
After repeatedly missing multiple rounds of investment, PPTV chose to form an alliance with Suning and set up PP Sports. It has invested 10 billion yuan to win exclusive media exclusive rights to popular sports content such as La Liga, Premier League, Super League, AFC, UFC and WWE.
In contrast, Sohu video's differentiation strategy is slightly passive.
"there is no doubt that Sohu Video is the preferred platform for watching US TV shows," Sohu CEO Zhang Chaoyang said in an explanation of Q4 earnings in 2012, but due to changes in copyright policy after 2013, Sohu Video's overseas drama copyright was largely removed from shelves. Lost the original advantage of Sohu video, back to the starting point.
Cost constraints, Zhang Chaoyang announced: "head play competition mode is not sustainable, focus on content production and joint production." This year, Sohu directly said in the financial report that he would "cut the content budget by 40 percent", focusing on low-cost self-made content, and withdrew from the first-line platform "burning money" competition.
"the Big Bang of Life" was launched on Sohu's video call in season 11.
Such a low-cost strategy, although Sohu video is expected to make a profit, but also let Sohu completely withdraw from the first-line video competition. Sohu Q3 financial report, Sohu video loss of $27 million, the same period reduced by half. Zhang Chaoyang said in the interpretation of the financial report: "it is estimated that the third quarter of next year or the latest fourth quarter, Sohu video will be able to turn the loss into a profit."
At the same time, Mango TV has already achieved profit at this time, which has an inseparable relationship with the Hunan radio and television resources behind it. According to the 2017 agreement between Mango TV and Hunan Satellite TV, Hunan Satellite TV will be in the period from 2018 to 2020. Sell the Internet copyright of exclusive programs to mango TV. for 451 million yuan, 496 million yuan and 546 million yuan respectively.
This "binding" with Hunan TV also limits the mango TV. Mango TV2017's membership accounts for less than 12 percent of revenue from the pay-for-money era, which doubled this year during the Q1-Q3 period, but is still a big gap from 42 percent of iqiyi's in the same period.
Compared with other platforms that have or will soon be profitable, bilibili's losses continue, and nearly 70% of its revenue comes from quadratic games, with a single revenue model.
There is also PP video for financial pressure. In addition to the sports sector, PP video still did not give up using the head content to attract users. Last year, PP video invested 200 million to buy the "people's name"; this year, it was 80 million won the "cool life, can we Do not sorrow" the right to broadcast. Although these dramas later used the entire network distribution method to recover costs, the ambition of PP video can not be underestimated.
Not only that, PP Video and bilibili held hands with you Aiteng this year: pp Video and Youku jointly created the "Youku Sports combined Transport Channel," bilibili and Tencent Video reached copyright, investment, games and other resource swaps. "working with Tencent can reduce the cost of content," Chen Rui said in a post-Q3 conference call.
In the face of the survival and rise of each platform, You Aiteng may feel pressure, but for the platform outside the first line, after solving the survival, do they still have the ambition to return to the front line?
In November last year, mango TV CEO Cai Huaijun described the then mango TV. as "the fourth in the industry, the first to make a profit, and soon to go public" at the 2018 Merchants Chamber of Commerce. Now that the mango TV has gone public and is the first to make money, perhaps "industry number four" is no longer his goal. Zhang Chaoyang, on behalf of Sohu, said publicly at the 2018 spring and summer promotional meeting of Sohu: "We are back."
Do they still have the power to change the industry? But for Zhang Chaoyang, "the reversal of the plot is being staged." This may also be the way every streaming platform outside the front line wants to move on.
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