Chapter 427: Sponsoring the Olympics

Just when Guanghui Film and Television attracted the attention of the majority of netizens and became the second most profitable enterprise of Guanghui Group in one fell swoop, Tudou also released a satellite.

The members of the 29th Olympic Organizing Committee (Imperial Olympic Organizing Committee) signed an agreement with Tudou in Diedidu, announcing that Tudou has officially become the Internet content service sponsor of the 2008 Olympic Games. This is the first time in the 100-year history of the Olympic Games that the category of Internet sponsorship has been established.

"The Olympic Games is a century-old dream of the Chinese nation, and Tudou is honored to be the first Internet content service sponsor in the history of the Olympic Games, which is the pride of Tudou and the pride of hundreds of millions of netizens in the Celestial Dynasty and even the world. In 2008, the Celestial Empire Internet will lead the world in terms of population and technological level, and Tudou is willing to do its best to open up a new online world of the Imperial Capital Olympic Games for the 1.3 billion Celestial Empire and hundreds of millions of netizens around the world," Fang Dawen said at the signing ceremony.

For the first time, the sponsor of the Internet content service of the Olympic Games set up and chose Tudou in the imperial capital Olympic Games, which is not only a proof of the development level of the Internet industry in the Celestial Empire, but also a recognition of the strength of Tudou.

Since its establishment last year, Tudou has become the largest video-sharing website in the Celestial Empire, the United States, and even the world. Especially in the United States and the Celestial Empire, the influence is even more amazing.

Tens of thousands of self-made videos are uploaded to the Internet every day, and many interesting stories, even videos of some news events, are the first to circulate on Tudou.

Tudou's movie channel has collected a large number of movie network copyrights, especially in the Celestial Empire, almost all the network copyrights of films have been taken down by Tudou, which is a gold mine with unlimited potential. Even in places such as the United States and island countries where copyright protection is relatively good, Tudou has also acquired the online copyright of many films. After all, Internet video sharing is not so eye-catching now, and the network copyright of movies is not high, especially the non-exclusive network authorization, which is even more expensive.

Tudou's TV drama channel also acquires network rights everywhere, and adds Chinese and English subtitles to some American and domestic films, giving full play to the advantages of Tudou's globalization and allowing more film sources to be used by the audience.

As for Tudou's open course channel, it has cooperated with more than 50 universities around the world to provide free high-quality courses for the majority of netizens, which has really attracted many high-end users.

Tudou has analyzed the viewing characteristics in combination with the user's registration information. Generally, users who often go to the Paike channel and TV drama channel have relatively low educational qualifications, or the proportion of users with low educational qualifications is relatively high, while users who watch more movies and open class channels generally have higher educational qualifications, especially those who watch foreign films and open classes, most of them have a college degree or above.

In addition to the above four channels, Tudou has also opened live broadcast channels and variety channels, as well as animation channels and music channels. Each channel has its own audience and is becoming more and more influential.

The Los Angeles Times once published an article saying that after Google, the most promising Internet company in Silicon Valley is Tudou America.

Google also announced last month that it wanted to buy Tudou's U.S. subsidiary for up to $1.5 billion.

At present, Tudou Tianchao Company is responsible for the business in the mainland region. Tudou's island country branch is responsible for business in other Asian regions outside the mainland. Tudou U.S. Branch is responsible for other businesses in Europe and the United States. Although they are three companies registered separately, the accounts are common to each other, and you can switch to other versions on the homepage at will. However, the shareholders of the Celestial Empire Company are relatively complex, and the two United States and island companies are wholly owned by the Korn Ferry Group.

If a U.S. branch is worth $1.5 billion, then the Celestial Empire Headquarters, which is no smaller than the U.S. branch, should not be worth less than $1.5 billion. Although the island country branch is relatively weak, it is still a video sharing website with a monopoly position in the local area, and the value will not be less than 500 million US dollars.

In such a rough calculation, the valuation of the entire Tudou network has exceeded 3.5 billion US dollars, which is still the valuation of the Korn Ferry Group if it does not plan to really sell. If Jiang Hui really sells it, presumably Google, SoftBank and others are willing to spend at least $4 billion.

Tudou.com is so popular, and naturally it is not without following the trend. In the United States, YouTube was founded on February 15, 2005, but the influence of Shoutu.com, its development speed is far less rapid than in history, and I don't know if Google will be willing to pay a lot of money to buy it in the future.

In the Celestial Empire, companies such as Penguin, Du Niang and Sohu have also launched their own video websites. The bustling scene of the Celestial Empire's Internet video sharing site came a few years in advance.

The impression rate of video to netizens is several times that of graphics and texts, and netizens' requirements for content have increased from the past graphic era to today's video era.

However, although the video business is developing rapidly, websites in fields such as video sharing and online TV have unclear business models, which require a large amount of capital to invest, and traffic needs to accumulate to a certain extent, so that advertising revenue will grow explosively in the future. This is also an important reason why Tudou has not yet achieved profitability.

It is not difficult for Tudou to make a profit, and Jiang Hui considered this aspect at the beginning. Because Tudou adheres to the business model of combining online video VIP charging and free, that is, on the one hand, it distributes a part of the content purchased from the copyright on the Internet for a fee, and on the other hand, it launches a free client to allow users to upload various film and television videos and share videos among users.

In the future, with the continuous enrichment of genuine content, the continuous expansion of various marketing channels, the rapid growth of users every year and other factors, Tudou will inevitably achieve profitability soon.

At this stage, between expanding the scale of the website and making a profit, Jiang Hui chose to expand the scale. Only by completely consolidating the position of the industry leader will Tudou's profitability be sustainable.

In fact, it's not just Tudou.com that has this situation. Companies such as Intranet, YY Live, Qunar, Guanghui Pay, Autohome, Guanghui Weibo, Meituan, etc., are currently in a state of non-profit or micro-profit, mainly because Jiang Hui chose to develop first, occupy the market, and then slowly make money.

For some small websites, they do not have the long-term vision of Jiang Hui, nor do they have strong funds to support their development, so it is difficult for them to learn the development model of Tudou, Intranet and other websites. For large companies, even if they imitate the Korn Ferry Group, it is difficult to surpass the Korn Ferry Group because they just blindly follow the trend.

In the future of the Celestial Empire Internet, Korn Kuai Group is destined to be the most unique existence.