The &Nbsp Of Piracy Is Not Yet Available.

The curve listing of cool 6 has made people both inside and outside the industry begin to think about the massive listing of video websites.

From time to time, a certain video website is ready for listing.

However, the seemingly dynamic video websites are experiencing the pain of pformation, from piracy to piracy, from private capital to national team and portals to compete for market, and profit model is from imitation to innovation. Despite the bright prospects of video websites, there is still a long way to go to achieve mass listing.

The success of the cool 6 curve landing on NASDAQ is causing the industry's conjecture that the video website will soon be on the market scale. The motivation for this conjecture is the outbreak of massive events in the six months of the online video industry and the stimulation of the three networks convergence to the video industry.

In June, cool 6, with the help of Shanda group's platform, successfully launched its listing through the Hua Hua century curve, while cool 6 also completed the magnificent pformation from bankruptcy to landing on the market, and became the first private video website to be listed on NASDAQ in China.

Correspondingly, the market also has rumors that potatoes, Youku and other top ranked video sites are also plotting to go public.

Cool 6 is the capital market at this point in the video industry a peak of concern: before, PPLive claimed to have invested hundreds of millions of dollars, and renamed PPTV, pformation network television.

Subsequently, Youku has completed the $120 million financing, and potatoes have also received $80 million in venture capital.

Behind the close attention of the capital market to the video industry is that the industry seems to be the key node to start metamorphosis: first, the national team entered the network video industry. Then SARFT began to clean up the audio-visual program website including the BT website. Then Baidu moved the Hulu mode of the United States to China, and then excited the network to get the first news license of the private video website issued by the new office, and the media attribute of the private video website was also recognized.

The timing of large-scale listing is not yet available.

Is web video a "treasure bowl" or a "burning golden cave"? In 2009, a number of video websites such as Youku and potatoes announced that they were about to reach a revenue balance. Even in the market, news came out that several large video websites had begun to make preparations for the listing, hoping to start listing in 2011.

However, is the scale of the Internet video market really large enough to accommodate several listed companies? Carefully studying the information released by the video website, it is easy to find that the problem that most video websites are most willing to talk about is the growth of advertising revenue, but the cost problem is taboo.

For these non listed companies, the so-called "revenue balance" is more like a hazy beauty.

A network video executives admitted to reporters, "in fact, the major video sites are currently a consensus that the outbreak of the Internet video market has not yet arrived, is still in the dark before dawn."

After the listing of the cool 6 network in the video industry, its disclosure of financial statements makes the video industry truly profitable.

In June 3rd, a quarterly report came out of Hua You's century.

In this quarterly report, the first quarter of Hua You century suffered a huge loss of $10 million 400 thousand, of which $7 million 400 thousand was contributed by cool 6 between 2 and March, accounting for 68% of the losses in Hua You's century.

This means that the average monthly loss of the cool 6 network is US $3 million 700 thousand.

According to the report of Hua You century, the advertising revenue of cool 6 network in the first quarter was US $1 million 200 thousand, and the operating expenditure was US $2 million.

This means a gap of $800 thousand between advertising revenue and operating expenses.

However, compared with the loss of copyright investment, this amount is not large.

According to the financial report, the loss rate of advertising business was up to 421% in the first quarter due to large investment in network video.

One industry insider told reporters that in fact, after some VC invested a lot of money into the video industry, it now faces the embarrassment of lack of profit.

They were bundled up to the chariot and had to move on, waiting passively for the arrival of the video.

An analyst also pointed out that the "burning money" of the online video industry is essentially different from the "burn money" of the portal website.

Although the portal website was fierce competition, it was just a few of sina, Sohu, NetEase, Tencent and so on. Nowadays, there are more than ten Internet video companies, and there are still new ones.

In addition, the video website has spent a lot of money on the existing and potential competitors of CNTV and TV stations. It not only made itself a "passing money God" but also raised a group of "tigers".

A video website executive told reporters, "the listing of cool 6 should be regarded as a kind of self redemption. At present, the income scale of the online video industry is less than 1 billion, which is not enough to support a listed company.

Only enough large pools can raise enough fish. Moreover, the premature listing will bring great pressure to the management team and expose itself completely to the competitors.

Take the portal website as an example, nearly 20 billion of the market revenue scale was born, Sina, Sohu and other 4 portals.

When online video revenue reaches several billion, the days of several large video websites will be much better.

It is estimated that only after three years will there be a number of video websites coming into the market.

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The dilemma of piracy

The video website's profitability is still in a difficult situation. Lv Wensheng, the chairman of the excitement network, sighed with emotion. "If the video websites of the top ranked market insist on the original version of the video at the beginning, everyone should have started making profits.

Piracy is the biggest constraint on the profitability of online video. "

Some of the insiders represented by Gu Yongqiang, chairman of Youku network, believe that the first generation portals such as Sohu and Sina experienced the "8 years' War of resistance" and finally successfully listed on NASDAQ.

In this way, the video website should also be profitable in the eighth year.

But Lv Wensheng thinks, "if the largest video websites have just started to stick to the original version, it is estimated that there are at least tens of billions of scale markets to support several Internet video companies."

An interesting phenomenon is that since 2009, Sohu and excitement network have taken the lead in establishing the first "China Internet video anti piracy alliance". The battle of copyright disputes between video websites has never ceased. Almost all websites have been prosecuted for piracy.

But for the war of words, the "wrangling" in the middle is inevitable. For a while, who is sticking to the legal copy is hard to distinguish between pirates.

An online video industry executive who did not want to be named told reporters that the video sharing website represented by Youku and potatoes was uploaded by netizens because the main content was uploaded by netizens. Most of the netizens who uploaded videos were not copyright owners, and it was difficult for them to clear away piracy.

According to the source, piracy and genuine is indeed a dilemma.

The consensus reached in the industry is that only genuine can attract mainstream advertisers' favor, but genuine means high royalties.

At the same time, for the video industry of "burning money", there is no support for the huge flow brought by piracy, what they take to finance investors, and if financing fails, it means death.

But the anti piracy alliance side pointed out that "netizens upload" has always been a cover for sharing website piracy, and it is they who take this guise to pirate piracy and limit the video website to piracy, vulgarization and marginalization, which discourages advertisers from affecting the overall income of the industry.

However, the market can not deny the benefits of video piracy in the past year.

Lv Wensheng is quite satisfied with the past year's anti piracy process: "it took only a year to solve the problem of values, which is faster than we think."

It was estimated that it would take two or three years to get the industry to reach a genuine consensus.

But the process of anti piracy is only reached the "consensus" now.

A video industry insider said that nearly 80% of the current traffic of video sharing websites came from piracy.

"To pirate" is bound to be a long and arduous process.

The bleaching of cool 6, a successful listing in Nashi, illustrates the pain of this process.

Cool 6CEO Li Shanyou admits that as cool 6 network has completely deleted its website's copyright free overseas movies and TV programs, and banned users from uploading no copyright movies and TV dramas, it has lost many traffic, advertising and business opportunities. "Cool 6 editorial staff's hearts are bleeding."

However, after the consensus reached in the online video industry, the "copyright bubble" in the online video industry has been blown up, and the pirate phenomenon has been caused by the soaring copyright prices. A few years ago, the price of the popular TV series was only two or three thousand yuan, but now it has reached tens of thousands of yuan.

It is reported that the new edition of "the dream of Red Mansions" online copyright has soared to about 200000 yuan per episode. The newly married "Golden Wedding 2" has just been fried to 60 thousand yuan per set, which is 15 times higher than the cost of 4000 yuan per golden wedding 1.

It costs millions of dollars to broadcast a hot play on the Internet, which is hard for video websites to bear.

A video industry employee said that the status quo of the video website is that Internet video is a gold mine, but it is not yet clear whether we can persist in digging into the rich ore.

Like those gold diggers, they must live first.

This provides sufficient motivation for piracy.

The process of piracy is doomed to be long, but Lv Wensheng seems that "triple play" is bound to speed up this progress. The focus of triple play is on the supervision of copyright. Under the three networks convergence, piracy is not allowed.

At the same time, the national team will not allow piracy to encroaching the market after entering the stadium. The SARFT has cleared the BT website.

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Debate on profit pattern

In less than 3 months in the first half of 2010, video websites spent nearly 500 million yuan on the purchase of legitimate copyright.

Huge bubbles emerge after the frenzy, and let every video website return to the rational origin.

"Advertisers are increasingly not buying accounts of traditional video content of video sites."

A video website marketing staff said, with the increasingly fierce copyright purchase war, in order to reduce costs, they have to take the way of playing together with other websites.

But this makes video users more dispersed, and advertisers are reluctant to put ads on common video.

"The previous film and TV show advertising can sell 10 million yuan, and now the same theme of the film and television drama is less than 6 million yuan."

The annual comprehensive report 2010 of China's online video market released by Analysys International shows that the overall revenue scale of China's online video market reached 844 million yuan in 2009, an increase of 95.4% over the same period last year, with an average compound growth rate of 18.3% in the quarter.

From the data point of view, the growth rate of the online video industry has been fast, but why is it so hard to make profits?

An industry expert pointed out that for network video, the biggest problem at present is "the increase of website cost is faster than advertising revenue", and the choice of profit pattern is the key to solve this problem.

The source said that in early 2010, a large amount of money spent on copyright spending had enabled many video websites to recognize their new media properties.

"The way of video sharing is fragmented and discontinuous. It is difficult to really enhance the user experience and create business value.

Therefore, it is the key to the success of the video website to restore the media attribute of the video website.

Today, Youku and Tudou are undergoing a difficult pformation. One of their breakthrough directions is to promote network TV and drama.

Recently, Youku launched the "Youku production". It joined hands with China Film Group to shoot 10 short films and spent more than ten million yuan, while Tudou launched the orange box homemade drama program.

In addition, after the cool 6 network curve was listed, in less than half a year, it spent a lot of money to buy legitimate copyright.

The "video portal" strategy has just won the "video portal" strategy. It will spend 80 million yuan on the purchase of non video content, upgrade studio, and strengthen original programming, including access to nearly 20 content channels such as news, finance, entertainment, sports and so on by more than 100 national mainstream TV stations. At the same time, the excitement network has made a more daring innovation to create interactive drama that is consistent with grass roots flavors. During the viewing process, users can choose to guess the plot. On the basis of Youtube interactive drama, it extends many new ways, and puts forward various roles such as "role playing", "love forming" and "suspense reasoning", etc.

The battle is even regarded as the "gate of life and death" for traditional video websites.

With the entry of portal websites, Baidu Fantastic Art and national team CNTV, the competition threshold for video websites has suddenly increased.

An industry insider analyzed that behind the copyright competition, the test of video website is the choice of profit mode, and the execution of commercial value.

In fact, the excitement network has been positioned as a genuine video portal since its inception.

Lv Wensheng believes that the trend of online video media is unstoppable. The stronger the media attributes of video websites, the more likely they will be recognized by advertisers.

The traffic of video website 80% comes from search engine, 20% probably is active visit, this means current user is content with content, not loyal website.

The purchase of film and television copyright is a standardized product, and can not give users loyalty.

Only differentiated products can achieve this. At present, only news information and original film and television can be sufficiently differentiated.

For the online drama, Qi Yi holds different views.

Strange art relevant personage tells a reporter, first, network video company intervened video content creation, cannot solve the problem that copyright purchase cost is high.

At present, the highest cost of copyright in network video is a set of 300 thousand, which is less than the cost of TV production. If the network video companies invest in the production of high level video content, 1/3 will obviously need to invest a lot and the cost can not be saved.

In addition, the quality of video content produced by network companies is not guaranteed.

According to the information provided by the television production association, about twenty thousand sets of TV dramas were produced in 2009, and more than seven thousand sets of licenses were obtained. There were more than 5000 episodes on TV stations. As a highly productive TV production industry, the network video companies will face more difficulties in doing this business.

Analysts pointed out that in 2010, the competition for video sites was no longer a contest of copyright. The coverage of TV programs and portal news events became the focus of competition.

In the era of content king, the stickiness of the content determines the fidelity of the eyeball, and with a large number of eyeballs, it can create enough eyeball economy.

At this point, the video website is just beginning.