According to media reports recently, the development of China's video industry for 10 years, the leader of a group (the original Youku Potato Group) has still not escaped the income growth, the loss of the expansion of the situation.
On August 20, Unity Group announced the unaudited financial report for the second quarter of fiscal year 2015. In accordance with U.S. GAAP, Uyghur Group's net revenue for the second quarter was 1.61 billion yuan (US$259.6 million), an increase of 57% year-on-year. This is the fifth consecutive quarter of Youku Potato's revenue growth of more than 50%; but the net The loss was 342 million yuan (about 55.2 million US dollars), an increase of 140% from the net loss of 142.3 million yuan (about 23 million US dollars) in the same period of last year.
"The main reason for the loss of the Youku video site is that, on the one hand, investment in copyright and self-produced dramas continues to expand and the cost remains high; on the other hand, there is no major breakthrough in the realization of traffic, and the mode of liquidation is still single. The dependence of advertisements is relatively large. In addition, the current competition faced by Youku Youku is fierce, and the market share of iQiyi, LeTV and other video websites has rapidly expanded, which has a severe impact on the company.†Cai Ling, a research fellow of China Investment Advisor Culture Industry accepted An interview with China Sankei Shimbun said in an interview.
Not only are video sites such as Youku Tudou making serious losses, almost all video sites are still losing money. It is understood that although Baidu did not explicitly publish the financial data of iQiyi, but since iQiyi was merged with Baidu, Baidu kept mentioning that the substantial increase in bandwidth and content costs mainly comes from video services; Tencent has also been external. It is said that it will find a reasonable position for the video business, that is, Tencent video; Sohu’s recent financial reports all bluntly stated that our other business is also okay, that is, the video business has to burn money, so it drags down the overall profits.
Cai Ling said that the current video website industry is in the stage of growth and maturity. On the one hand, the profit model of video websites is not yet mature, and there are still more subdivided areas being tapped; on the other hand, the market pattern is basically Stability, several major video sites appear to be courteous. With the rapid development of the Internet and mobile Internet, video sites have great room for development, but the profit model needs further improvement.
"Now the video site's profit model is diversified, whether it is for paying users or relying on other implanted ads. But the most important issue at present is that the market audience does not pay, the audience is basically free, or through advertising. The main way to pay for business is to rely on advertising revenues, and such a profitable method is relatively simple, said Liu Zhenqing, a new media professor at Beijing Information Science and Technology University, when interviewed by the China Sankei Shimbun.
Throughout 2014, the video website industry’s losses amounted to 888.6 million yuan, much higher than the 580 million yuan in 2013. In the past few years, video websites that rely almost entirely on advertising revenue have used the most traditional business model.
Cai Ling told reporters that the income of members of China's video websites and paid content is still relatively weak. This has greatly increased the risk of video site development.
At present, China's video users do not have a strong sense of paying, which has a great impact on the development of video charges. Video websites need to increase users' awareness of payment in certain ways. At the same time, if the entire video industry is not profitable, it is unrealistic to rely on large-scale money to buy operas to snatch users.
Cai Ling said that video sites need to focus on paying content in the future. Although free content can provide important support for traffic, if the traffic cannot be realized well, it is still very passive for investors behind video sites.
To make better development of paid content, video websites need to take a fine line on home-made content. Homemade content is the key to the success of video websites in paid services.
Liu Zhenqing said that the network drama and the TV drama are already two different things. From this point of view, video sites really have the opportunity to create a new business model and a new profit model to subvert the traditional TV stations by thinking about collecting advertising fees.
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