In the past year or two, the video industry is no longer at the forefront of capital and public opinion. From the beginning of the prosperous period to the tepidness of today, experienced copyright wars, each one has realized that using the money to compete at the bottom of the industrial chain has always failed to achieve the core competitiveness. The investors' money is limited.
As a result, video sites began to sharpen their heads and wanted to go upstream in the content industry chain.
For iQIYI, it is currently at the forefront of this round of self-made content, but it also faces the trouble of the content team.
Recently, IGI CEO Gong Yu received an exclusive exclusive interview with Sina Technology. He said that iQIYI will still focus on original content as its business focus, and that iQIYI will devote more energy to continue to invest in quality original content. It seems that iQiyi is determined to want more power in the content industry chain.
For the video industry as a whole, it seems to him that it has only just taken the step of differentiation. He feels that video websites will have a dynamic balance at least until 2017. By then, the profitability of the video site is not far away.
Third-party original team will chase the object
In the past a period of time, the content of self-control on the Internet has appeared in an endless stream. Major video sites have produced home-made movies, variety shows and even television shows. Representatives, such as wonderful things, absolutely never thought of, pancakes, etc. performed well in terms of playing volume, user attention, and rewards.
It is more straightforward to implement the homemade content strategy. Not long ago, Youku Tudou announced the change of name to Heyi Group, and released its own channel strategy, which will support more content of Professionally-generated Content (PGC) and User-generated Content (UGC). In other words, Youku Tudou puts more emphasis on promoting homegrown content of individuals or teams.
For the iQIYI, Gong Yu said that the focus will be on PPC (Professionally-produced Content) content.
In order to more fully illustrate the difference between the positioning of Iqiyi and Youku potatoes, Gong Yu painted a pyramid. From top to bottom, PPC, PGC, and UGC were used in order.
Arranged in this order, it can be interpreted in terms of content, production difficulty, and unit value. Gong Yu explained that Youku Tuo’s strategy is to exert power on both PGC and UGC, while Iqiyi’s focus is on PPC, which is professional video. The number of PGC and UGC content is more, but the unit value is low; the unit value of PPC is high, but the quantity is also small. "This is the difference in strategic choices between the two sides," said Gong Yu.
Although the strategic focus is different, Youku potatoes and iQiyi also need to rely on, is an excellent third-party original team. Past experience has shown that a small amount of fine content has brought most of the influence and traffic. At any time, excellent content is the core of a video site.
Gong Yu said that there are two ways to love iQiyi on PPC content acquisition: production and procurement. He thinks that the reason why the previous purchase of copyright is expensive is mainly because the former is the seller's market. When he himself takes the lead, the cost will drop a lot.
At present, the content of iQiyi's production includes tomb notes, strange things, and psychological crimes.
Among them, Qi Hao is widely acclaimed as a self-made variety show, but the producer of the show and Ma Dong, the chief content officer of the original love Qiyi, have confirmed that they will leave and start their businesses in the video content field. He also took away most of the original class production horses that Qiqi said. Gong Yu said that the two parties reached an agreement. Now Qiqie said that everything has not changed, but the production team has become a third party.
In fact, this is a hot topic in the field of video recently, that is, how Internet video companies should retain the talents of traditional media companies.
Recently, more and more media company executives have chosen to leave the company to start business in the video content field. They have seen a new opportunity. Professional third-party video content teams with professional production capabilities will become the new hotspots.
Although the strategic focus of each of Heyi Group and iQiyi seems to not compete in the pursuit of third-party teams, Youku Tuo is more likely to develop self-channels such as Luo Ji's thinking and runaway comics, while iQiyi More is to seek professional teams with great production capabilities.
However, a good enough team will always attract the chase of major video sites. After all, Gong Yu also mentioned that although the focus of iQIYI is now PPC, this does not mean that the contents of PGC and UGC will not be done.
Charging business to the outlet?
In the interview, Gong Yu stated that there are two main focuses of the work of iQIYI 2015: content originality and membership services.
For membership services, Gong Yu believes that the fee-based business of video websites has reached a point of departure.
He said that the two previous obstacles have disappeared. “One is the issue of piracy. With the increase in awareness of copyright and the introduction of national policies, the risk of piracy has decreased much more than before; the second is payment, and the original problem of inconvenient payment has become worse with the popularity of mobile payments. Complex exists," he said.
In addition, he also mentioned the issue of user loyalty. In the PC era, users basically use search engines to find content, follow the content, and are not sensitive to which site they come from. Now, Gong Yu thinks this situation has changed a lot.
He pointed out three main changes: First, in the mobile era, users need to download and install APPs, which will lead to higher user switching costs. Second, the brand development stage has reached the middle stage, and it has passed the time when brand differentiation is not obvious; Third, membership fees will make service and content loyalty higher.
For the method of attracting users to pay for the purchase of members, iQiyi now mainly adopts the way members first look. For example, Tomb Raider members can watch all episodes. In addition, on the 24th, iQiyi also announced that Wu Qilong's production of the Lushan War Memorial will be given priority on television in the iQIYI, and members can still give priority to watching. This model has brought a rapid increase in the number of iQiyi members and has also led to the imitation of other videos.
From the data point of view, Iqiyi announced in June that its monthly paid VIP membership has reached 5.017 million, an increase of 765 percent year-on-year, if calculated at 15 yuan per month, a quarter of member income is 225 million yuan. According to recent financial report calculations, iQiyi’s content costs in the second quarter of 2015 were about 5.38 billion yuan. In addition, 5 million paying users accounted for only 1% of Iqiyi’s total of about 500 million.
It can be seen that iQiyi’s paid membership grows rapidly, but there is still a long way to go in terms of payment percentage and financial contribution.
Gong Yu mentioned the popularity of paid services, in part because of iQIYI’s leading paid users on large homemade content. However, as mentioned earlier, professional third-party video content teams with professional production capabilities will become new hot pursuit points. If the third-party team is asking for more and more expensive, will this become another major expense for video sites following copyright fees?
Future shape
Gong Yu believes that the future video site will be a form of portal. He has mentioned this concept on several occasions. He once said that “the video website is not necessarily just a website in the future, and the next stop in the video industry must be the gateway to people and services.â€
However, he now feels that "Connecting people and services" is more of a mouthful than a portal.
He believes that this does not mean first of all a subversion of traditional portals. “The portal is a realm, an area, a quantity level, a video website can be a portal, and an e-commerce platform can also be a portal.†He feels that the core of this portal concept is high traffic and should at least cover more than 10% of countries. Talent is conditional to become a portal.
For iQIYI, this portal service includes movie tickets, e-commerce, games, shows, and more. iQIYI provides other services than video playback, and content IP connects these services with videos.
Gong Yu also emphasized that iQIYI will do what it is good at, but it will be more open to partners, such as the stores and logistics of iQiyi Mall, all of which will be handed over to third parties.
From the point of view of the portal, in accordance with Gong Yu's description, iQiyi will go more in the self-control and more professional direction in the video content, and introduce other services around the content to form a portal; Youku's self-channel concept It is to open the content to a third party. It is a platform for content distribution platform. From this point of view, China's two major video sites have already taken a very different path.
For this video portal's ideal revenue model, Gong Yu believes that it is half of the forward and backward, that is, the income of fee-based services such as member business, game business and advertising business, and other derivative business is balanced.
Gong Yu once said that 2017 will be a profitable point, and he still believes that the possibility of reaching this point is the greatest.
In 2017, he also thought that it would be a balance point for the video industry. At present, he feels that this is just closer than before, but it takes 2-3 minutes to reach that point.
"Once the balance has been reached, the profit point is not far away," he said.
Sweep and sit together to watch the change. Scan the QR code below to pay attention to the Sina WeChat official micro-channel (also can be micro-channel search: techsina or Sina technology).
Before you rush out to buy a new solar powered dusk to dawn lighting, there are a few factors that you should consider. Here are the top features you will want to look out for in solar dusk to dawn lighting, and why they are important.
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