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The following article was published in our article directory on April 21, 2011.
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Article Category: Business
Author Name: xia zihui
"The 2011 56 nets will focus on creating 'big entertainment' strategy, outstanding variety entertainment, 56 create, user original three categories of content. Entertainment, interaction, sharing will be 56 nets and other video of the web's biggest differences." 56 nets vice President to accept Chinese economic times LiHao recently said in an interview.
After several years of development, in a constantly burn money but not profitable misgivings about domestic video website in succession, out of their respective development path: optimal cool and potatoes don't want to give up on YouTube, but the banner of Hulu model more favour; Odd art, music, and video on to the original hd sohu; Excited nets and first video goal is video information.
"We want to make China's only YouTube, emphasize the interactive entertainment, so long as the users of the thought of the video, watch entertainment is thought of 56 nets, this is our goal." LiHao said.
Insist on interactive entertainment
"We put the 2011 content strategy boils down to" big entertainment, 'we think 56 nets to do is provide users with entertainment products and content." LiHao said.
According to understand, 56 nets entertainment products are "I show", "album video" etc, the entertainment content is includes three aspects: one is the copyright content based on the purchase, bought already serious movie drama coessential change, 2011 56 nets would focus on buying television variety, and entertainment. Such as jiangsu TV's "the sincere not faze", hunan TV's "to force of variety show on Sunday May 2011 in 56 online to see. Meanwhile, 56 nets will and TVB, hunan satellite TV content such as cooperate in television.
"2011, 56 nets will take every month income 25% - 35% as buy copyright expenses, copyright buy spending will account for very large proportion." LiHao said.
2 it is homemade content, 56 nets in 2011 annual meeting its many sons of integration of 56 to create "brand". Based on "56 creating", 56 nets will do a series of programs and content. Among them, the "56 black perturbation will" is aimed at the national university's original brand, will put campus DV institutions, the original studio to pull "56 black perturbation will" platform, has attracted came from the Beijing film academy, Shanghai film art academy dozens of thousands of student film colleges. Meanwhile, the 2011 56 nets will and TV producers of joint investment a "constellation" as the theme of the TV show.
Three is to continue to support the UGC content creation, encourages users to upload and share video, and further make original platform atmosphere.
In fact, the commercial prospects and YouTube revenue strength may be 56 nets insist on interactive entertainment, video share the main reason. 2011, YouTube's revenue estimate for $2 billion, this one scale greatly exceed the domestic video website, and any one of the side will show the explosive growth.
No profit, not listed
"We wanted to do the first video website listed first profitable listed for 56, concerned, just a gradual net goal is to follow it." LiHao said, optimal cool and potatoes chose on sale in America, because domestic a-share, gem the demanding of earnings, and the nasdaq relatively loose, but after the stock market and how to keep the stability and can increase space, it is video site poses A serious challenge.
Optimal cool and cool after six listed the performance is not good. Optimal cool in the fourth quarter earnings by 2010, according to optimal cool fourth quarter net loss for 377 million yuan, including bandwidth expenditure and contents respectively net revenue expenditure of occupying 34% and 17%; But cool 6 nets fourth quarter net loss is as high as $15.5 million that led directly to its founder and CEO LiShanYou (micro Po) severance.
Profit model depended too much on advertising, cannot satisfy the bandwidth and copyright cost spending, is the key to video website continued losses factors. A statement from erin market consulting survey report, 2009 video AD revenue in network for 6 billion yuan, up to 20 billion yuan in 2010, and it is estimated to 2013 its advertising revenues will reach 100 million yuan. Although advertising revenue rising, but still can't satisfy the video site expansion need.
In order to explore the profit model, walk the video site Hulu mode of trying to "the original movie network began paying to watch" route. Recently, the music PPLive, visual, tencent, video site other seven firms thunder announced charge platform, set up a joint movies online step change users want "free movies" habit.
Erin consulting senior analyst ZhaoXuFeng think, video industry is now talking about individual pay premature, currently paying accounted for less than enterprise revenue than a into, some enterprises may be because individual pay, but the entire industry profit by focused not realistic for profit. "In the current content in competitive market, none will put too much content, because pay pay project." the loss of mean that its users
56 nets hope that through value-added services to expand revenues. "2010 56 nets have put losses to a very low control level, we hope to achieve in 2011 earnings." LiHao discloses, it mainly depends on advertising income increases and user value-added services revenue ascension. Users in the beauty of female advocate sow, shows and other products are starting to value-added consumption, such as for the beauty of users will like flowers, gifts female advocate sow; Photo albums video download service can provide include lunar brawlers video and photo album of video product 56 nets occupied more than 75% of the market share; 56 nets will provide virtual currency "56 currency", let users in the consumption on the gaming platform. "2010 advertising revenue accounts for about 80 percent of the overall income, 2011, we expect the user value-added services faster growth in 2011 after advertising, expected user value-added services income ratio will change, for example -- 30% by 40 percent."
"This year after profit target, we may redo round of financing, IPO pre-alpha - for a listed ready, hope in just a couple of years." the steps complete listing LiHao said.
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