Without waiting for everyone to ask questions, Cai Congxin continued to explain: "I know, everyone will definitely ask, after Facebook Music and Facebook Video are launched, do you want to adopt a membership system, do you want users to pay money? In this case, how can you compete with those free products?"

The questions he said are indeed what everyone wants to know the most.

"But have you ever noticed,There are indeed a lot of free music and videos on the Internet,But strictly speaking,It's all pirated resources!And the quality is very poor!The music format is mostly MP3,A song is only one MB,Or even less,The sound quality can be said to be unbearable! As for the video,If you have seen it,Obviously, you should know,The picture quality is blurry to be unclear,It can be said that the user experience is extremely poor!"

The people in the conference room nodded frequently, what Cai Congxin said was indeed the truth.

Because it is a pirated resource, coupled with the restrictions of network conditions, those music and video resources on the Internet now, obviously don't talk about any sound quality and picture quality, it's good to be able to listen to and watch.

In those years, netizens who downloaded pirated movies should know that one or two hundred MB of a movie is considered an "HD" version!

A movie of tens of MB is the regular format, and compared to a few G of a movie now, the picture quality is obviously not comparable.

"Now the development speed of the Internet infrastructure in the mainland is still quite fast, and many areas have achieved ADSL Internet access, with a downlink speed of 4MB and an uplink speed of 1MB, which is actually enough to support relatively high-definition quality video online playback! There are two reasons why there are no music software and video websites on the Internet that provide music and videos in high-definition lossless format, one is copyright issues, and the other is their company's own hardware limitations!

Cai Congxin analyzed in an orderly manner, and the VC representatives also nodded in agreement.

"Our Facebook music and Facebook videos will not use pirated resources, from the day they are launched, it is a purpose, to provide users with high-quality genuine music and videos! We will use the funds obtained from financing to buy copyrights and carry out strategic cooperation with those music companies and film and television companies! In this regard, Facebook has a natural advantage, don't forget that now all well-known singers and celebrities basically have their own Facebook accounts, and with the development of Facebook, celebrities are also paying more and more attention to publicity on Facebook. Cai Congxin said meaningfully.

"But ......? In that case, aren't we spending money unjustly? Competitors don't have to spend money, but we have to spend money to buy copyrights, even if we provide higher quality music and videos, but the funds are always limited, and they can't compare to the endless pirated resources of our opponents. A VC representative raised a question.

"Piracy only arises under certain conditions, but this abnormal phenomenon cannot continue forever, and with the pace of China's accession to the WTO, the issue of copyright will inevitably be put on the agenda. What's more, maintaining copyright also needs to take the initiative yourself, in the past, those music companies or film and television companies, because of their limited strength, did not have enough ability to pursue piracy and infringement. But Facebook is different, we have enough confidence and ability, not to say that we can eliminate piracy on the whole network, but we still have a way to deal with the piracy of competitors. Cai Congxin said with a smile.

Now everyone understands, it turns out that Facebook is thinking like this!

I didn't think about eradicating piracy on the whole network, and it was unrealistic, but it was easy to raise the "big stick" of copyright and crack down on competitors......

"In addition, in the early days, Facebook music and Facebook videos are not easy to charge, but video ads will be added, so that users can watch a 10-second and 20-second ad, and then they can experience high-definition videos, and users should be able to accept it. Relying on the huge traffic brought by Facebook, there is no doubt about the effectiveness of our advertising, and the fee can be higher. Don't forget, this is a video advertisement, not a web advertisement like Sina NetEase, in comparison, the advertisement is more intuitive and the effect will be better!"

Video Ads!

This is still relatively new, in the past, video advertising only existed on TV, and everyone knows how expensive TV advertising is.

Now Facebook Video is going to launch online video ads, this is ......

There should be a head!

In this way, it is a perfect solution to the problem of Facebook's huge traffic monetization and provides a monetization channel.

In addition, with the copyright of music and film and television in his hand, this will also be a "big killer" in the future!

When the awareness of copyright in China is strengthened, when other competitors want to make music and videos, they will be stunned to find that basically most of the music and film and television copyrights have been bought by Facebook.

So how can you compete......

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

After the profit model was explained, the VC representatives present also said goodbye with satisfaction, and they would each come up with their own quotations after they went back, and then the highest bidder would win.

After everyone left, there were several shareholders of Facebook in the conference room, Yu Wenfei, Xue Chunhe, Cai Congxin, and Director Wang from Jiaotong University Venture Capital, who did not come over today.

"Is this video ad model feasible? Xue Chunhe said a little worriedly.

He is a representative of SoftBank Capital, and SoftBank's investment in Facebook is not for charity, but for the purpose of cashing out at the right time.

So he is still very concerned about how Facebook makes money.

"Don't worry, I'll just analyze it with you, and you'll understand. TV stations, even those more famous satellite TVs, take Dragon TV as an example, their evening prime time, the ratings are generally only about one percent. In layman's terms, it means that the number of viewers does not exceed 20 million, and may even be less than 10 million. However, in terms of the user base of our Facebook network, the number of viewers of our videos may exceed 100 million! This advertising effect, not modestly speaking, can be comparable to the advertising effect of CCTV, and it has to be CCTV's prime-time advertising for a day! You also know how expensive CCTV's prime-time advertising is. Cai Congxin explained.

"Moreover, we also reserve the right to video membership, and when the copyright environment is good in the future, after the competitors are eliminated, users will slowly adapt to paying for genuine high-quality content. Yu Wenfei added.

Maybe for Cai Congxin and Xue Chunhe, they still have concerns about the implementation of a membership system for music and video, but Yu Wenfei knows that he has experienced it.

After more than ten years, there may still be users who listen to free songs and watch free videos, but more and more users are used to paying to buy a NetEase Cloud Music membership, QQ Music membership, or iQiyi QQ video membership and the like.

And with the copyright monopoly of video websites, on the basis of the paid membership system, what messy "big member", "golden member", "advanced on-demand" and other secondary charging projects emerge in endlessly.

But users scold and scold, those who should pay for it or pay for it obediently, there is no way, you really can't see it if you don't pay for it.

And for entertainment, spending dozens of dollars a month was nothing for people at that time.

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

On the other hand, after the representative of Citi returned, he immediately held a meeting to discuss the investment in Facebook.

When it comes to Citibank, you may immediately think of Citibank, but in fact, this is not comprehensive, because Citi is a financial group, and its business is not limited to banking business, but covers a very wide range of business, covering all financial businesses!

Like what investment, insurance, securities, consumer credit, financing and listing services, etc., you name it!

This time, Citi represented Citi's investment banking department, and it was directly sent by the headquarters, and the specifications were quite high.

The person who led the team was the head of the investment department, Bourne.

"This Facebook financing is a good opportunity for us, and Facebook's IPO is estimated to be the largest IPO on the NASDAQ this year or next year! The return is very huge! Starting with 5 billion US dollars, let's discuss, what kind of price should we quote?" said Byrne, sitting at the head of the conference table, with a blazing eye.

Not only Citibank is discussing, but the rest of the bank, such as HSBC, Temasek, Deutsche Bank, Goldman Sachs, etc., are also discussing the quote.

Today, the video advertising issue raised by Cai Congxin has indeed aroused great interest from everyone, and many people are keenly aware that perhaps this will be a new growth point in the field of Internet advertising!

In fact, in 2002, the movie "Hero" began to try to promote video ads on the Internet.

They hired someone to make a 30-second short video advertisement and promote it on major websites on the Internet.

But this is not a conventional model, nor has it formed a scale, and the video advertising model proposed by Facebook this time is a conventional scale.

Once Facebook's video website is launched, thousands of videos, videos and videos will be presented in front of the majority of users, and at the beginning of these videos, there will be video ads ranging from 10 seconds to 20 seconds!

That's an amazing amount of views, because the click-through rate will reach tens of millions of dollars!

This number of clicks is also very attractive for those businesses that want to advertise.

Even the effect of this video advertisement will be better than that on big TV stations, and the delivery accuracy will be higher.

Everyone knows that those users who are active on the Internet happen to be the current mainstream consumer groups, and they are also the objects that every business wants to woo.

Many of these young users don't watch much TV anymore, so in recent years, the effect of TV advertising has gradually declined.

Perhaps, this innovation of Facebook, the video advertising form of Facebook Video, will become the largest advertising channel in the future......