How will Youpengpule start its three engines with 2 billion yuan in hand?

In the Internet TV industry, Youpengpule is considered by the industry as the "hidden champion". This title reveals two messages: one is that the company has always been very low-key, and the other is that the company has done well enough in the industry.

As expected by the outside world, Youpengpule did not rest on its laurels after completing the financing, but prepared to use the three major engines to rebuild a "different Youpengpule."

2 billion capital to support three major engines

At the press conference on September 21, Shao Yiding, chairman and CEO of Youpengpule, confirmed the rumor that the company had completed a financing of 528 million yuan, and announced the comprehensive company layout of the three engines of "Youpeng Technology, Youpeng Media, and Huawen Youpeng". According to Shao Yiding, these three engines represent the three entities under the Youpengpule system. Among them, the 528 million yuan of financing is more focused on continuing to promote the capital reserve and accumulation of Youpengpule Technology based on the B2B service market. Previously, Youpeng and Huawen Media established a joint venture. In addition to the registered capital of 200 million yuan, "Huawen Media" will gradually allocate 800 million yuan as a savings fund for business development to further operate and explore the content. The newly established Youpengpule Media Company will continue to raise 500 to 600 million yuan in the future to carry out B2C business. At present, Youpeng has completed two steps in its future layout. By the end of the year, the three major capitals of Youpengpule will form a siege of 2 billion yuan in capital, laying the foundation for its future business development capital accumulation.

Main engine——Upeng Technology

After 9 years of development, U-PuLe has already provided content operation service solutions for the full interactive TV industry including IPTV (interactive private network TV), DVB (two-way digital TV), and OTT (Internet TV). According to statistics, the total monthly active users on the service platform provided by U-PuLe have reached 16.2 million, and the total monthly active users of the total broadcasting users have exceeded 8.2 million.

In addition, Youpengpule has also obtained the license cooperation authorization from Guangdong Radio and Television and China Radio International, two Internet TV license holders, becoming the first operating service provider in the industry to obtain dual license cooperation authorization. Shao Yiding said, "The dual license is not a simple overlapping relationship, but a real concept of mutual benefit and increase." In the future, Youpeng will optimize the allocation of resources based on the actual situation and advantages of both parties.

Judging from the current market structure, many Internet companies have dabbled in OTT business, but due to the limitations of their company genes, it is rare to see manufacturers that enter both IPTV and DVB businesses, let alone hold dual licenses. When Upengpule first developed the Internet TV platform, domestic manufacturers were still in a vague understanding of this industry, especially when some Internet companies began to make TV hardware and started a price war with terminal manufacturers. Upeng had already been working with partners in the industry chain to integrate OTT, IPTV+OTT, DVB+OTT platforms and provide in-depth user services, and had accumulated considerable technical capital.

Youpengpule has spent a considerable amount of time, or in other words, the nine years since its establishment, focusing on the B2B field, laying a solid foundation for its business in terms of users, partners, technology, etc. The main body, Youpengpule Technology Co., Ltd., has become the main engine among the three major engines, allowing other businesses to flourish on this basis.

Monetization Engine - Upeng Media

As a wholly-owned subsidiary of Upengpule Technology, Upengpule Media Development Co., Ltd. will focus more on the business development and commercial value realization of the Internet TV B2C market. It is understood that the new company will introduce more strategic partners and high-quality financial investment institutions as shareholders of the new company within this year, laying a more solid capital foundation for the upcoming market explosion.

In the first half of the year, Shao Yiding said that 2015 would be a year of commercial value realization for U-Pu Le, which will realize commercial value in content-based user payments, advertising, and TV e-commerce.

Shao Yiding often uses this metaphor to describe Upeng's preparations for value realization: "Having a certain user scale is the prerequisite for realizing the commercial value of large-screen TVs. This is like the growth of a big tree. The soil is determined by the market environment, and hundreds of millions of ordinary home users in China who have interactive needs on TV screens form the thick trunk. Only with such support can games, e-commerce, education, video and other businesses have room to grow on TV. Upeng is doing the right thing, starting from the bottom of the tree to the branches."

It is understood that Upengpule Technology and Upengpule Media will share a core leadership team. In terms of operation, they will uphold the concept of win-win with partners. "We will work closely with Internet TV licensees, TV manufacturers, set-top box manufacturers, content providers, etc. to jointly design and launch products and services that are closest to users, and jointly create a win-win business value chain; fully mobilize and give play to the enthusiasm of all parties in the industry chain to jointly explore and share the industry gold mine."

Content Engine - Huawen Youpeng

As we all know, content is an important link in the video industry chain, especially the purchase of exclusive content. For Youpengpule, the paid online cinema model it promotes, in addition to having a certain user scale accumulation, also needs corresponding exclusive content as a filler, so as to provide a larger operating space for this new model of TV cinema. Huawen Youpeng, which was previously jointly established by Youpengpule and Huawen Media, will mainly focus on the purchase, distribution and investment of exclusive copyright content and film and television projects.

Shao Yiding once said in an exclusive interview that China News Youpeng will have a special fund for the purchase of film and television content. In addition to distribution, it will also explore some new operating models. It does not rule out other interactions with production companies and content providers during the exclusive purchasing process, such as the production of self-produced dramas.

At present, the prices of domestic film and television drama copyrights have been driven up by purchases, resulting in inflated prices. Some video websites or content companies are not in a hurry to make profits immediately, and intend to seize the market and increase brand influence, but a copyright bubble has also emerged.

Shao Yiding believes that no matter how much money is spent, it is impossible to "buy up" all the film and television content. Content is infinitely produced, and a monopoly by one party is likely to lead to widespread piracy. "As the scale of Youpeng's users expands, the original idea of ​​copyright is to buy it. In fact, some content providers, including third-party content copyright procurement companies, are willing to put their content on our platform for cooperative monetization."

Regarding the company's future prospects, Shao Yidinghao did not shy away from saying, "All our capital arrangements are made in preparation for the listing." But he emphasized that Youpeng will not go public just for the sake of going public. The prerequisite for going public is to strengthen and solidify the user scale, profits, market reputation, and user services.

"I'd rather be a 60-point doer than a 100-point storyteller." Shao Yiding's heartfelt words were unanimously recognized by the guests at the press conference. In the Internet industry, too many people are keen on telling stories but ignore doing things. In the past nine years, Youpengpule is not without stories, but the stories of doers are usually told by partners, users, and the industry.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.