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Video website "burn money" doesn't stop
Time : 2015/5/23    Clicks : 106    Public:Shenzhen Evergreeno Technology Co.,Ltd.

Part of the company's revenue growth is still hard to resistance losses, homemade contents do not fire in fans a fire


Because several rounds of industry consolidation and temporary cooling video website "burn money" enthusiasm, recently seems to be renewed. Optimal soil (youku potatoes) and thunderbolt yesterday both first-quarter earnings, calculated according to general accounting principles (GAAP), optimal soil under the condition of the quarterly revenue rose 47%, a net loss of 517.4 million yuan, net loss expanded 194% year-on-year; While the thunderbolt income and net profit fell 8.4% and 8.4% respectively. From earlier than optimal soil and thunderbolt before the release of a quarterly le networks (75.14 + 2.82%, consulting) and tempest technology (264.34-5.59%, consulting) and sohu video, in addition to the copyright is competition, homemade content gradually become to burn money to start.


Content costs continue to rise


Content copyright is always an important part of the video website costs. A quarterly data show that optimal soil, the company in the first quarter content costs accounted for 59% of net income for 669 million yuan, increased 13% year-on-year. Sohu a quarterly results also revealed that sohu video on revenue of $50 million in the first quarter, despite the surge of 57% compared to the same, but still losing money. Sohu chairman and CEO Charles in analyst, said at the meeting compared with last year, is expected to cost video content will grow by 50% this year.


Analysys international, a senior analyst at Mr Ming thinks, "video websites are still stuck in the era of burning money, due to the characteristics of industry, must continuously spending on copyright, no copyright investment difficult to attract users, no user is equal to no income, while seventy percent of income in the current video website or from the AD."


"Because of the high cost of content, the current industry competition pattern is unsustainable." Zhang said the PGC (professional production partners) contents can be realized through the advertising model; Movie content aspect, pay a subscription model, that is, the user model is also on the rise, the occurrence of these phenomena to a certain extent can help keep the online video industry sustainable development.


User-generated content are also beginning to burn


Internet analyst Liang Mingliang also said the previous copyright cost pressure for domestic online video sites are the same, and who can as soon as possible through a higher ratio of net raw content (homemade, PGC, UGC) to replace the expensive copyrighted content, there is no doubt who will be able to cure burn faster the ills.


But in reality, as the major video sites are more and more rely on user-generated content, homemade content also is entering burn model. It is understood that in 2015 is expected to optimal soil on user-generated content will reach 600 million yuan investment, than doubled in 2014. And love in the this year on homemade play inputs are also more than 50% increase over last year, a rising tide lifts all boats, love in the homemade 2015 unit costs more than the TV series, such as "grave notes" broke through 5 million yuan per set.


To this, the personage inside course of study points out, by mass burn money for play rob the user has not reality, so the video web site only to upstream industry content in vertical integration, through the cooperation and the content of the original these in the Internet, reduce the cost of video website copyright.


Optimal soil according to the latest figures, the optimal soil net content is more than 50% of the country's contribution to the entire network traffic. "Youku tudou more than 500 million users, we are looking at different areas of consumer income, from content to subscribe to, from virtual goods to broadcast live, and the future of video e-commerce." Youku tudou chairman and chief executive officer victor koo in analysts said on a conference call, in the second half of 2015, with the original content and PGC become stronger, and content marketing solutions become perfect, advertising revenue will increase accordingly, expected the second half of the content of the cost of the growth rate will be lower than revenue growth.


Part of the video class one quarterly situation of listed companies (unit: RMB)


Company sales year-on-year net profit


Optimal soil 47% 1.14 billion yuan - 517.4 million yuan to expand by 47%


Thunderbolt 187 million yuan 187 million - 8.4% - 48%


The storm 092 million yuan - 3.2085 million yuan - 24.24% and 146.72% of science and technology


Le miniaturization: 107.75% 107.75% of the 2.13 billion yuan 2.13 billion yuan

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