Wang Qinian was interviewed by ATV, which was broadcast live on ATV and published on ATV's online website. Pen %Fun %Pavilion www.biquge.info [Latest Chapter Reading] Because, in the news interview, there are many "House of Cards" and related discussions that are concerned by the industry, which is quite concerned by industry insiders.

Of course, Wang Qinian's attitude towards the video industry still caused many people to be dissatisfied. People in the video industry mostly feel that Wang Qinian looks down on them.

Their opinion is right, in fact, Wang Qinian does feel that the entire industry is a weak chicken. If the major video websites are really good, how can they burn money for so many years, and they can't see the dawn of profit.

"Wang Qinian is too arrogant, although his video website has the best profitability, it may not be the website with the most registered users and the largest traffic!" -- The president of iQiyi website criticized.

"Youku has merged with Tudou, and our scale advantage makes Youtu Group definitely the largest Chinese video group." The next step is to develop paid content, a combination of free advertising and content charging model. Youku Tudou burns money temporarily, and we believe that it will be profitable soon! ――Youku is full of confidence because of its merger with Tudou.

"Sohu Video's annual content procurement budget is no less than that of a partner company. In terms of American dramas, we are even more leading in the industry. -- Sohu also began to brush up on its presence.

"LeTV has no less advantages than Bilibili in terms of copyrighted content, and we have begun to buy a large number of exclusive copyrights in 03 and 04 years. Because the early copyright purchase price was cheap, we licensed it to our peers in the industry, and we earned a lot of copyright fees. So, loss-making video sites, excluding our LeTV, we LeTV are actually making money! -- Boss Jia of LeTV protesting.

"Bilibili, a subsidiary of the small partner, and the U.S. listed companies it invests in have successively made money through content fees, which is very inspiring, and we are also studying the feasibility of engaging in a charging model." -- Tencent Video took the opportunity to make a statement.

The entire Internet video industry, for a long time to come. are caught in the middle of a heated debate between free and paid models.

Of course, the current fee model has shown the ability to make sustainable profits due to healthy financial statements. Under the free model, the revenue from advertising fees is simply not enough to cover the operating costs and post-harvest costs of content copyrights.

But. After all, video websites have been doing it for many years with an advertising revenue-based model. Since 04, video sites have just developed, and this industry is dominated by advertising models. The model of relying on advertising to obtain income is actually borrowed from TV media.

But. Television media walks on two legs – one is the monthly fee for cable TV, and the other is advertising revenue.

The monthly rent charged by cable TV is enough to cover the cost of network operation, and the TV station does not need to pay additional bandwidth fees.

However, the network bandwidth of Internet companies is rented, and telecom operators need to pay expensive bandwidth costs every month. Many users visit video websites, which will not only make video websites start to burn money and eat traffic. There are too many user visits, too much traffic consumption, and the cost of video websites is skyrocketing. And if there are not many users accessing, it will certainly reduce the cost consumption, but. Advertising and other business income will also drop sharply.

In addition to expensive expenses such as network and hardware, the cost of content procurement for video websites is also gradually soaring.

Even if there are better websites like Youku, LeTV, and iQiyi, it is impossible to make a profit by relying solely on advertising revenue.

Youku, due to its industry leader, has relatively high advertising revenue, but it has not been profitable. LETV is profitable,But it's unrealistic to rely on website management alone,Mainly because LETV bought a lot of copyrights in the early years。 Then, for a long time, he became a second-hand dealer and authorized the copyright to more websites. Got a lot of income. Subsequently, after the copyright rose sharply, LeTV also began to engage in self-made dramas because the two-way dealer model was difficult to sustain.

Not to mention a rising star like iQiyi, it has been a local tyrant in the past few years. Crazy burning money to buy copyrights to get development, let alone make a profit.

As for sites like Tencent Video, it's Tencent behind it. Advertising Tencent's game business alone has actually generated a lot of overall benefits.

Relatively speaking, Station B under the small partner company should be a wonder in the entire industry. Since its inception, it has never considered adding advertisements to the opening, middle, and ending credits.

At the beginning, users of Bilibili did not notice the difference between this website and other websites. But when there are more and more exclusive high-quality content on station B, whether it is anime, movies or TV series, it concentrates content that is not available on other websites on the entire Internet. Although, there is a fee, but after all, the movie is more than ten minutes to watch. TV series and anime are free for the first few episodes, and whether the content is good or not, whether you are willing to continue watching it or not, you have a good idea.

In this way, station B, which purely relies on content charging, although it has not achieved the video website with the most users and the most traffic in the industry, is far from monopolizing the market. However, Bilibili has more than 15 million daily active users, and it is the best 15 million people in the domestic video industry. After all, other sites have tens of millions of active users a day, but most of them are free users.

However, the tens of millions of users of station B under the small partner are paying users. On average, station B can obtain more than 20 million yuan of income a day, which is a level of income that is difficult to achieve for websites with the current advertising model.

After all, as far as traditional TV media are concerned, the most awesome CCTV can obtain more than 10 billion advertising revenue a year. Provincial-level local stations have advertising revenues ranging from hundreds of millions of yuan to billions of yuan. Websites that rely on advertising revenue are actually competitors of TV stations, competing with each other for high-quality advertising users.

There are so many high-quality advertising users, and the advertising cost invested in TV is more, and the investment in the network is less. The more advertising money you spend on the Internet, the less you spend on TV.

Advertising revenue is indirect income, and businesses that advertise feel that they can make money, and they can earn income that far exceeds the advertising budget, so they will advertise.

The biggest advantage of the content charging model is direct revenue. There is a market for as much value as the content can sell, rather than relying on advertisers other than the audience. The largest content charging model on the Internet - online games!

Online games have become the profit pillars and cash cows of many Internet platforms, and online games do not make money by selling advertisements, but are large advertisers of advertisements. This model of directly relying on content is obviously more promising than the model of indirect payment for selling advertisements. (To be continued.) )