The development of the video industry for more than 10 years has not been able to shake off the image of smashing, spend big bucks on bandwidth, purchase copyrights, and cash out through stereotyped advertising. The overall competition has remained at the initial stage. Until nearly two years, video game play and realizing methods have become diversified, and the competition segment has obviously improved to a certain level.
The recent LeTV video president Gao Fei also said that the content industry will usher in gold for 10 years. Previously, the content industry has not been favored, and the logic of content-based liquidation has not been smooth. Today, whether the production cost of a single episode of television shows rises, the listing of TV and TV dramas has mushroomed, or the box office of movie theaters continues to rise, it shows that the content industry has become a new value. .
The arrival of the spring of the content industry not only ignites the entrepreneurial enthusiasm of the content, but also rewrites the game rules of the video industry, thereby affecting the industry structure. In this great transformation, whether it is backed by BAT's iQIYI, Youku, Tencent video, or music videos backed by ecology, neither can we stay out of the way. To seize the commanding heights of the content industry, we must continue to deepen innovation and reserve content IP. And development, user operations.
It is worth noting that on July 26, Lexus announced that it would acquire Vizio, the largest TV manufacturer in the United States, for US$2 billion, which seemed to be a little distant from the video industry, but thought carefully about it. With the accelerating globalization of LeTV, it seems that It also opened up new exports and ideas for the video industry. Video wars are increasingly worth seeing!
Video industry competition model urgently needed to upgrade
In the past, the reason why the competition in the video industry was at a low level was that there was no in-depth involvement in the entire industry chain of content production, distribution, marketing, and derivatives. It would only continue to burn money to buy, buy, and purchase high-quality content and exclusive content. User sticky gripper. Therefore, the video industry is a hard-working business from the very beginning. Big players in the big industry dominate, and players with no money or resources are destined to be eliminated.
The biggest drawback of this model is that the value it creates for users is limited. Whether it is copyright distribution or single broadcast, the essence is a one-hit sale. Since there is no whole content chain involved in the content, advertising becomes the main mode of realisation, and the income generated by user operations accounts for the proportion of income. Extremely low. The former is highly user-selectable, which is the same on any website, and users cannot start operations. The latter is a radical route to capture more users who do not pay for content. Although it attracts users, it has limited operating space.
For users, they have to endure more and more long-term advertisements on video websites. Even if they open a membership, they can only enjoy privileges such as advertisement-free, new-film delivery, and high-definition playback, and there is a gap between their rights and interests. As far as the platform is concerned, it is in the quagmire of homogeneity competition. Whether it is copyright procurement, liquidation or user operation, it is basically the same, and eventually it becomes a giant game, which is not conducive to the development of the industry. Obviously, this backward mode is in urgent need of change.
Under this background, the arrival of gold in the content industry has an epoch-making significance for 10 years. Its greatest contribution is to fully activate the content industry chain. Each chain has clear division of labor and close collaboration, and has greater imagination. In the past, the content industry was a decentralized state. Investment, production, broadcast, and derivative products and other industrial chains performed their duties. With video sites having upstream IP reserves and development infiltration, the game rules of the content industry are changing, with broadcasts. Video websites for channels and user resources have become engines for change, and the power to speak has increased dramatically. From IP, directors, production companies, to broadcast channels, and commodity derivatives, all of them have appeared, and eventually a brand new ecological cooperation order has been established.
Therefore, in the future, the entire industrial chain and even the ecological development capability of content IP will become the key criteria for measuring the comprehensive competitiveness of video websites. Of course, as the content industry has just emerged, BAT's game of simply and ruthlessly saving money and resources will not immediately fail. If it does not make a contribution to the reserve and development of content IP, it may be overturned in time. It should be noted that innovative genes are an invisible battlefield that the video industry has stifled.
Facing BAT, LeTV is relying on user operations to break through
It must be acknowledged that IQIYI, Youku, and Tencent videos backed by BAT are the first echelon of the video industry. Not only are the ammunition sufficient, but also the core indicators such as user size and viewing time are dominant. LeTV videos of entrepreneurs originate from the first echelon. Alternatives. With the rise of the content industry, this seemingly unbreakable market pattern has increased.
We may wish to review the performance of the four major players in the video industry in 2015 and the first half of 2016. iQiyi experienced “Icefireâ€, sadly the loss continued to expand, with only Q2 losing 136 million US dollars; happy is almost gambling on all content strategic trends, in the super-television drama, self-made variety show, online movie are A lot of harvest. Youku is the lost king. UGC, which focuses on the differentiation strategy, has not obtained the ideal flow of cash. Overly conservative capital decisions have caused it to miss the outbreak of multiple content strategies. It has not yet launched a super-television drama. It was beaten by LeTV. Tencent is an unscrupulous, low-profile and ambitious careerist. The Group has more than half of IP, and has rich experience in IP storage and development. With no shortage of funds and users, the video industry has no competitors to dare to take advantage of its strength. .
The alternative player LeTV is not only a video website, but also a system integrator. The competition in the video industry mainly focuses on copyright, experience, and the terminal. Unlike other players, the copyright and experience are different. LeTV has many arrows and has rich resources such as film and television dramas, variety shows, sports, and music. Its platform + The ecological model of "content + terminal + application" achieves full coverage of user experience scenarios and industrial chains.
In summary, the three major players in the video industry are remarkable in their performance: iQiyi, Tencent Video, and LeTV. Then the question arises. Who is most likely to grab the next content industry? I tend to enjoy video. In the context of Baidu's gravity shifting toward O2O and artificial intelligence, the iqiyi “loss-for-market†strategy is not sustainable, and cash flow will become the biggest constraint to its development. Although no one doubts the strength of Tencent's video, it is still difficult to get out of the difficult position. If it is not profitable, it will require Tencent to continue its blood transfusion, which will greatly test the patience of the latter.
In contrast, user operation is the traditional strength of LeTV video. Only 414 "Hardware Free Day" members have a total income of 2.02 billion yuan, and 618 members have a total revenue of 1.015 billion yuan. The "hardware + service" two-wheel drive model, From the numbers alone, users can also see the recognition of LeTV's premium content and services.
At the end of last year, LeTV members upgraded to the 3.0 era and created a new membership model of “Content + Experience + Servicesâ€. According to different user needs, LeTV provides segmented services, provides home-based users with super-video members based on the ecology of the big screen, and provides young people with music based on mobile ecology. On April 6th, LeTV once again defined the members of the film and television - letting members define the content. Gao Fei, president of LeTV Video, stated that in the future, LeTV members will have the opportunity to participate in IP development and production in the whole process.
LeTV's Ambition: A Cultural Exchange Window for Global Outstanding Movie and TV Production
It is undeniable that "LeTVi Ecology" is a strong backing for LeTV's video display of BAT. However, LeTV's video has a unique advantage that other peers do not possess, even though LeTV's ecological strength is "sea". Screens and moving entrances make it a cultural exchange window for outstanding global film and television works.
As we all know, 2016 is the first year of LeTV’s eco-globalization. As the globalization strategy advances, LeTV’s video has taken advantage of the ecological breeze to accelerate the landing of overseas markets. Whether Jia Yueting visited Russia or acquired Vizio, the largest TV manufacturer in the United States, and landed in San Diego. The International Animation Exhibition (“SDCCâ€) has helped LeTV’s introduction of overseas dramas and “Made in China†to open up new windows for cultural exchanges between China and foreign countries.
Take Levio’s acquisition of Vizio as an example. Vizio sells 8 million TVs each year, and has more than 17 million smart TVs. It has a market share of over 30% in the North American market. This means that only the North American market will open tens of millions of videos for LeTV. Big screen window. Coupled with the proliferation of mobile phone and TV users in India, Hong Kong, and South Korea, as well as the content layout of multiple parties, LeTV's globalization will bring a lot of content and users to LeTV.
From the direction of the recent content layout of LeTV, we can see some clues. Just after the end of the SSDC, LeTV’s videos are accompanied by netizens visiting the Man Show, and also aiming at a big wave of American dramas and animations around the super animation IP. In fact, overseas dramas represented by popular British and American dramas and Korean dramas have always been the focus of the LeTV video drama layout. At the beginning of the year, the U.S. drama star Wu Yanzu's wilderness was broadcast alone in LeTV. The broadcast volume exceeded 80 million in just two weeks. Since then, LeTV's video has been edging out overseas dramas. In the summer holiday season, this army has struck a battle. Numerous hits of British and American dramas have hit and most of them are classic IPs, including the X-Files War and Peace. She is very beautiful.
In addition to the introduction of overseas dramas to create video feasts for Chinese users, LeTV video has also become the platform of choice for China's film and television dramas to go out to the sea to export Chinese culture and values. At the “Venus Feast†conference on June 7th, LeTV released 53 IP dramas in one breath, covering a variety of styles including costumes, fairy chivalry, urban fashion, and more than 200 IP libraries for partners. 15 billion strategic investment plans. In addition, LeTV Films has also adopted Lions Gate Films as the global publisher of the grand track, accelerating the pace of producing quality local content.
Therefore, LeTV has become a cultural exchange window with fierce collisions between domestic and foreign content. The benefit to the user is the global LeTV ecological user. "Break the border" and "Eco-revolution" are the clear labels of LeTV. As the cornerstone ecology, LeTV video can play a synergistic effect with other ecosystems, creating more unexpected values ​​for users and achieving full coverage of office and consumption scenarios.
Users travel from the morning to the office, to the theater, the living room, and to the immersive closed application scenarios provided by the future supercars. LeTV video goes hand in hand, fully penetrates every corner of the user's life, and provides a consistent experience. This means that the LeTV Video Demon Video industry has never been a single-arms operation, but it has fought against major rivals in the form of a group army.
This shows that in the video industry has always been an alternative music video is no longer stick to the domestic battlefield. The LeTV videos, which have always been centered on “user valueâ€, continue to use ecological ships to go to sea and build a comprehensive and unique experience for users through strong reinforcement against other sub-ecosystems. Believe it is the key element that shakes the video industry's transformation.
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