Video site: Do you want to go to market?

Competing to go public
Since Cool 6 was listed as the first domestic video website in 2010, it has set off a wave of video website listings.

In June 2010, Ku6.com was listed on the Nasdaq backdoor. In August, LeTV.com was listed on the domestic GEM. In December, Youku was listed on the US New York Stock Exchange. In August 2011, Tudou was listed on the Luna Stock Exchange. On March 12, 2012, Youku and Tudou announced the merger of 100% shares. After the transaction was completed, the potatoes would be withdrawn from the market. Gong Yi, the CEO of Baidu's iQiyi, also said that it is preparing for listing.

It is not difficult to understand how to compete for listings on various video sites. Video sites are a money-burning industry. The industry status, users, and traffic flow are inseparable from huge amounts of money.

Liu Yan, CEO of the six-room office, disclosed that the six rooms had burned about 250 million yuan in four years from 2006 to 2010. Prior to the merger of Youku Potato Girl, Youku burned a total of 1.065 billion yuan during the four years from 2007 to the first half of 2010. The Tudou burned 911 million yuan in four years.

In addition, copyright payment has always been one of the biggest costs for video sites.

It is speculated that in 2010, Youku and Tudou used the company's funds to purchase genuine copyrights exceeding 120 million yuan. After the listing of Cool6, it was more generous in terms of copyright. It invested 300 million yuan in the purchase of copyright, which caused domestic video sites to enter the competition for copyright resources and the price of copyright resources soared.

For a burned video site, the increase in market value is particularly important. Once listed, not only will there be huge amounts of financing, but this also means that investors are optimistic about the company's prospects, and the market value will correspondingly increase substantially.

In addition, with the increase in the market entry threshold, the value of advertisements placed by advertisers in listed companies has also been correspondingly improved, and there will soon be a new initiative standard for the purchase of copyright.

Depending on the "dry" advantage

As video sites became more and more in competition, in 2010, the video industry also came to a lot of broadcasting companies, content producers and internet giants. Such as CCTV, Hunan Satellite TV and other broadcast companies under the video site and some Sina video, Sohu video, Baidu Iqiyi and other Internet giants of the video site.

These two types of video sites are obviously not as difficult as Youku and LeTV professional video sites, because they have "backstage support" after all.

Baidu, Sina, Sohu and other Internet giants' video websites can rely on portals to occupy an advantage in traffic and have money to burn. CCTV and Hunan Satellite TV video websites have content-based video networks and occupy the upstream of the industry chain. Solved some copyright issues, without burning too much money.

Of course, such video sites will eventually want to be listed, but compared with those professional websites, listing is not the only choice.

Transformation is also a way to live
In those professional websites, not all of them can be listed like Cool 6, Youku, and LeTV. It is not easy to want to occupy a place in the video website industry.

On November 12, 2010, SARFT issued the "Implementation Opinions on the Implementation of Intellectual Strategies for Radio, Film and Television", which was aimed at clearing up online piracy episodes. According to industry sources, after various video companies are gradually listed on the market, copyright purchase costs will become one of the major cost expenditures for video companies. Small video companies will face the lack of funds to purchase legal copyrights, which will result in a lack of content or illegal competition. The industry's competitive threshold has been raised.

Now some small video sites have transformed.

PPS entered the game industry. In 2010, PPS also participated in the Chinajoy (China International Digital Interactive Entertainment Exhibition) for the first time as a game operator.

The six rooms will completely abandon the content of traditional movie and TV dramas and create an online video community.

In addition to the six rooms, Thunder is also trying to innovate in the profit model, and Excitement Network is also seeking to transform itself. The direction is video news portals. 56 network also played down video content, highlighting three types of video highlighting entertainment, originality and information.