The video industry is a network media. Until 2012, when the China’s Internet broadband speed improved and mobile Internet developed, the video industry started to be popular. Merger and acquisition cases appeared one by one. Each company begins to layout the mobile Internet, and even extends to the mobile terminal equipment building area. Year 2013 becomes the biggest changes since its birth in domestic video industry. Today, I introduce you the overview and future of China video sites.
1. The type of giant
This kind of video websites become giant video websites because of its early establish, large scale, high market share, brand recognition and strong influence.
A. Youku + Tudou
Youku and Tudou are online video companies developed earlier. The contents and style of these two companies were similar before their merge. Tudou’s finance and operation had difficulties, so Tudou was acquired by Youku in March, 2012 because Youku was afraid that if Tudou was acquired by other company, Tudou will threat Youku. Meanwhile Tudou was delisted on the nasdaq In August 2012, after the acquisition of Tudou to Youku, the founder Wang Wei of Tudou quitted. After one year, he established another business. Currently, he manages a animation studio (” the animation”) so-called “the Chinese version of Pixar”.
After its merge with Youku, although Tudou maintains independent development, its influence has fallen sharply. On the first “birthday” after its acquisition, i.e. Tudou’s eighth anniversary of establishment, it was almost completely forgotten by the industry, because everyone focuses on massive structure adjustment of the group Youku & Tudou.
With the popularity of UGC operation mode in the network video industry, Youku & Tudou returns to entrepreneurship because it was still in deficit after its merge for one year. Youku & Tudou launches divided advertisement plan. Of course, because of new BU (Business Units) operating strategy, Tudou tends to extend its founder Wang Wei’s “literature and art style”. In addition to actively promote “micro movie” strategy, it also cooperates with Douban recently to launch the “literary film channel”. In the future, Tudou may be similar to Douban to be the best video website or even the literature and art brand in the youth’s eyes.
B.AIQIYI & PPS
This is a story combined with new second rich generation and “the loser”.
It is said that the CEO Gong Yu of Aiqiyi and the co-founder Zhang Hong Yu and Xu Wei Feng of PPS have close personal relationship. They claim that their outlook for the industry is consistent which makes them reach acquisition agreement smoothly. But the industry cannot agree about this. The industry thinks the bad financial situation of PPS was very similar with Tudou except one point: PPS was not in the stock market before its acquisition. PPS’s revenue failed, and hopeless to launch IPO temporarily plus funding pressures. In May, PPS was sold in $370 million and its founders and investors got the money and quitted.
At present, the team of Aiqiyi and PPS finish the merge (PPS dismissed 5% employees). Its membership and advertising is completely open. Its communication transmission technology is just around the corner. Compared with Youku & Tudou, its integration speed is very fast. According to them, the biggest difference between Aiqiyi & PPS and Youku & Tudou is that Aiqiyi and PPS have strong complementary. The most benefit for the acquisition of Aiqiyi and PPS is that it probably improves copyright purchasing power. At the same time, it breaks the situation of only one big network video company Youku & Tudou in China’s market. Aiqiyi always wanted to have the large quantity of mobile clients’ installation of PPS, although it can greatly expand Aiqiyi’s mobile market share after acquisition, it is inevitable to cause the internal competition between Aiqiyi and PPS.
Youku & Tudou: after the merge for more than one year, their overlapping business integration is not effective. The acquisition in the industry is getting fast so Youku Tudou is difficult to keep No.1 in the industry. But Youku Tudou is still ahead in finding nuggets point (UGC, divide podcast advertisements into micro film advertisement).
Aiqiyi & PPS: just after their merge, it is still not sure about their effectiveness in integration progress. Supported by Baidu, Aiqiyi & PPS has no big cash problem on the purchase of copyright. In the mobile client terminal respect, Aiqiyi & PPS have the advantage of quantity, but there is the risk of internal competition between them.
2. the type of rich second generation
These kinds of video websites have powerful financial and influence support. They are wealthy. But their actual performances are in a great difference.
A. Sohu video
Among the four major video websites, Sohu video is the most successful, though Sohu still seems a bit falls in the acquisition wave in video websites. The acquisition of PPTV was hot for a while and then is quiet. It seems that Zhang Chao Yang will not have money to buy PPTV if he does not sell Sogou.
Sohu video not only bought Netflix’s hit show “House of cards” but also imitated Netflix to make “home-made drama” strategy. Like “Loser men” and “my acura is my ex” such kind of homemade plays. The names of the plays come from Internet buzzwords. All Sohu’s measures actually follow the theory of big data. The click rate of these homemade plays is good, but their quality was not better than the plays with copyright. And the homemade plays still have a long distance,comparing to those big plays which are spent $80 million to buy. So in the dealing with large data content and homemade respects, Sohu video seems to have some split personality – “home-made drama” strategy now looks like a joke or a plot to stifle the opponents.
When Sohu gave wide publicity to launch the plan “produce dreamworks” for its homemade contents , a China’s well-known IT critics Wei Wu Hui derided: “I can see the style of Zhang Chao Yang and Liu Chun in Sohu’s wide publicity to its press conference of the plan “produce dreamworks”. However, the CEO of Sohu video called Deng Ye who is said to not get well with Liu Chun was not present in the press conference. It seems a little bit puzzled.
Probably everyone knows about the internal competition inside Sohu video.
The CEO of Sohu video called Liu chun. The general manager of Tencent video called Liu Chun Ning. But the sick joke is now outdated because Liu Chun Ning just quitted his job in July and now in self-employment.
In the “Zhi Chun Road” subway station in Beijing, the office buildings of Tencent video and Feng xing.com are on the opposite side of the road. In 2012, when the office building of Fengxing.com had a big employment hiring activity, the office building of Tencent video was like a passer-by who only looked at the big war of video websites and was standing quietly in the cold wind. In 2013, Tencent video began to take action. It not only launched big data and big platforms but also expanded the contents. Tencent also hired 200 people and began to layout throughout the country. Although Tencent is a rich second generation and hugs more than 700 million active QQ users, Tencent steps in the video industry so late that its video business is not good, same as its own microblog business.
The most attractive action by Tencent video recently is that it opens a channel of the English series. Currently, Tencent says that it owns the largest English series resources in China. However, it is not a new thing. Youku has opened its own English series channel before. If you must ask the difference between them, I may say the difference is that Tencent has 700 million QQ users and Tencent is not lack of money so that Tencent can compete with its opponents to the end in the copyright purchasing war of Chinese and foreign series.
Overall, the fund and the users of Tencent video are very abundant, but the development of Tencent is mediocre and without much bright spots.
C.Netease video, Sina video and Phoenix video
About the second rich generation of these three video companies. I don’t want to discuss them individually. Therefore, I talk about them together.
Netease is like a strange flower in portals. In its product line, IM or Netease bubbles are not better than Tencent’s QQ; its blogs and microblogs are not better than Sina. In the mobile client terminal, Netease’s news is popular for its unique news commentary atmosphere (here not to mention whether the so-called “have attitude” on its news concept is in line with the professional requirements for journalists), but Netease’s news are transcended by Sohu’s news recently. At present, Netease strongly promotes Netease cloud music (in the age of overflow streaming media music products, I can’t find any reason to change to use Netease’s cloud music). The “public class” launched by Netease video earlier was just paid close attention for a while. In the early time, Netease held the spirit of entertainment to death and released four videos called “Even a west”. At present, most of its revenue still comes from the gaming business, and its video business is bad.
The large users’ quantity of Sina Weibo (microblog) cannot bring Sina video too many users. On the contrary, Sina Weibo recently cooperate with Youku & Tudou and 56.com. At present, Sina video is only strong in videos of sports competitions, but Sina video is still not in the level of overwhelming its opponents completely.