Facebook Company, in Yu Wenfei's office, he and Cai Congxin are sitting there talking about things.

Now that even Xue Chunhe is gone, the rest are his own people, and he can speak freely, Cai Congxin is actually worried about whether Facebook can make money through advertising.

In fact, Facebook video is still buried, that is, membership payment!

Yu Wenfei didn't talk about this today, because for a period of time after the Facebook video was launched, there would be no membership payment.

Only when the right time will the membership system be officially launched, when is the right time?

It's Facebook Video that dominates the online video industry! No company wants to try to compete with it!

At that time, it is the best time to launch the membership system, Yuwenfei wants to use the huge traffic and huge amount of funds of the Facebook company to make all competitors feel desperate, so that all Internet companies dare not step into the online video industry to compete with him!

In the final analysis, it is still a frenzied burning of money in the early stage, investing in hardware, buying copyrights, and completely forming a market monopoly, and then considering the issue of fees.

In the early stage, relying on online video advertising revenue, it should be able to roughly maintain a break-even, which is enough.

Yu Wenfei also likes to tell stories to investors, but he is still more conscientious, basically the stories he tells will become a reality in the near future, including this time the Facebook traffic monetization model!

The reason why he dared to spin off the game business, the "big killer" of traffic monetization, and set up a separate company also stemmed from this, that is, his confidence in the income of the video business.

2003year,There are no serious video websites on the domestic Internet,The earliest LETV will not be launched until the end of next year,As for what cool six、Youku、Tudou, etc., it will not be until 0506,As for the first two of the three video websites in the future, iQiyi and Tencent Video will be even later。

Even in later generations, in 2019, when the three major video websites were inextricably killed, iQiyi's annual revenue still reached 29 billion yuan, the first of the three major video websites.

Among them, the membership payment is as high as more than 14 billion, and the advertising revenue is nearly 9 billion, which is still the bulk of the revenue. The rest of the income comes from content distribution, ecological business, etc.

Of course, while the income is high, it pays more!

Throughout the year, the cost of content alone is as high as more than 22 billion, including the purchase of film and television copyrights and independent content development.

Compared with the cost of content, when the company achieves a certain scale, the proportion of investment in hardware is much smaller, and iQiyi's annual expenditure on bandwidth is only more than 2 billion yuan, which is far less outrageous than the cost of content.

But there is no way to do it, because behind it, Tencent Video and Youku are eyeing each other, both want to be the first video website, the entire market is still in the stage of fierce competition, and no one has stood out.

This kind of situation is beautiful for content providers.

For popular dramas with high-traffic stars, if you want to get the exclusive right to broadcast on the Internet, the cost is even as high as more than 5 million yuan, and this is only the cost of one episode, don't be too expensive!

In the case of a serial drama, with as many as forty or fifty episodes, the cost of this drama alone will be as high as two or three hundred million!

In 2016's "The Legend of Ruyi", Tencent Video bought the exclusive right to broadcast online, and the price was as high as 9 million per episode, and you must know that "The Legend of Ruyi" is 87 episodes......

In other words, Tencent Video spent nearly 800 million just to buy this drama!

The price is so high, can the video site not lose money?

Everyone is gritting their teeth and throwing money into it, just hoping that they can survive it, boil their opponents to death first, and wait until they dominate the market, it is not easy to make money.

But at the same time, there is another strange phenomenon that many people don't notice, that is, for the same episodes, the cost of online broadcasting rights is soaring, but the cost of purchasing broadcasting rights for TV stations has not increased much!

The same "The Legend of Ruyi" was sold to TV stations, and each episode was only three million, but when sold to Tencent Video, it was as high as nine million per episode!

It stands to reason that there are dozens of satellite TV stations across the country, and the competition should be more incentive than the online video industry, and the price should be higher.

But don't forget, although there is competition among TV stations, they are the same "big parent" above, and each TV station is a brother unit, in the final analysis, everything is negotiable, and there is no vicious competition. If there is really any conflict, there will naturally be parents to mediate.

Online video is different, because in the end, this industry can survive the most, if you want to live well, you can only "kill everything" of your opponents!

By 2019, there were only three video giants left, but each one was still losing money, and here's why.

............

"After getting the money for this financing, I set up a content department to contact major music and film companies as soon as possible to buy copyrights. Yu Wenfei said calmly, looking at Cai Congxin with deep eyes.

In the current environment, perhaps Facebook's behavior of spending money to buy copyrights will be ridiculed by many peers.

Because everyone uses it for free, they can stupidly send money to people, isn't it stupid?

But only Yu Wenfei knows, or only he is willing to spend this money!

In the era when everyone is "prostituting for nothing", if you talk about buying the copyright of online broadcasting, the price will really be cheap to the extent that it makes people "cry".

LeTV's matter, no matter how you comment on Lao Jia, but there is one thing that no one can deny, that is, Lao Jia is really a person with a big pattern, just talking about the pattern and vision, there are few people in China who can compare to him.

As soon as LETV was established,Lao Jia invested limited funds in the acquisition of film and television copyrights,Many classic movies and TV series,The price when LETV buys,It's really cheap!

A movie costs thousands of dollars, and an episode of a TV series costs hundreds or even dozens of dollars!

This may seem like a fantasy in a dozen years, but in the past few years, it was true.

Because those film and television companies don't pay much attention to online broadcasting, anyway, the Internet is full of piracy, and suddenly someone comes to you and tells you that I want to broadcast your company's movies and TV series, how much money should I give you?

This...... It's too late to be moved, where is it embarrassing to charge more!

In addition, Facebook has maintained a good relationship with many celebrities, and now Facebook's publicity ability is becoming more and more prominent, and many celebrities have long begun to pay attention to their own faces, and they are interacting with fans more and more.

Then Facebook's business department went to their company to talk about copyright, and the treatment they enjoyed was definitely different.

According to Yu Wenfei's estimates, with a copyright expenditure budget of several hundred million, you can buy all the desired film and television and song copyrights, as for the copyright life, of course, it is according to the length, starting in 20 years, and 50 years is not too much!

............

Within a few days after meeting with the investment banks, Facebook also received bidding bids from various investment banks one after another, and Modu International Trust and Investment Company did not participate in the bidding, because Mr. Liu met with Yuwenfei in private.

This time, the International Trust and Investment Company is going to take the shares of Shanghai Pudong Development Bank to exchange with Yu Wenfei, and it is worth noting that the shares of Shanghai Pudong Development taken out by the International Trust are directly exchanged with the Facebook shares in Yu Wenfei's hands, that is, they have gone through the "back door".

Of course, Yu Wenfei will not put these shares of Shanghai Pudong Development Bank under the name of Facebook, because Facebook is not controlled by him alone after all, and it will not be cheaper for other shareholders to be put there.

Some benefits can be shared, but there are some things that can only be controlled by one person, and the shares of Shanghai Pudong Development Bank belong to this kind of thing that cannot be shared.

"Mr. Fei, let's not negotiate anything publicly, we have also made an assessment of Facebook, and we recognize that this company can reach a valuation of six billion dollars now. Therefore, our share swap will be carried out directly according to this valuation. Mr. Liu said enthusiastically.

Of course, Yu Wenfei has no opinion, he understands what Mr. Liu means, because using Shanghai Pudong Development Bank to exchange shares on Facebook originally included the city's "reward" for him!

If it were all to follow the process, SPD's valuation would not be so low, and Facebook's valuation might not be so high, all with additional conditions.

"Just do what Mr. Liu said! In this way, how much can you take out the shares of Shanghai Pudong Development Bank?" Yu Wenfei asked briskly.

Mr. Liu said without consideration: "Sancheng shares, this is the highest ceiling!"

In the area of commercial banks, although in recent years there have been policies saying that foreign capital and private capital should be opened up, after all, this is a sensitive area, and it can only be carried out cautiously, and the steps should not be too big.

Like foreign capital, that is another unwritten rule, no matter how much money Citi spends, it is impossible to get more than 20% of the shares, and it is impossible to control the Shanghai Pudong Development Bank.

For the private sector, this upper limit is a little higher, after all, it is his own people, so what was given to Yuwenfei this time is Sancheng shares!

The valuation given by the government of Shanghai Pudong Development Bank itself is 3 billion yuan, and the 30% share is 9 billion yuan, about 1.1 billion US dollars.

Facebook's current valuation is $6 billion, with a total share capital of 100 million shares, and each share is worth $60.

Therefore, Yu Wenfei wants to take out 19 million shares from his own shares and exchange them with the International Trust and Investment Company.

At present, Yuwenfei owns a total of 79 million shares of Facebook's Class B shares.

After trading with the International Trust Company, there are still 60 million shares left in his hand, accounting for 60% for the time being, and due to the two-tier equity structure, Yuwenfei still firmly controls the right to speak on Facebook.