Is there any possibility for the marginalized second-rate video websites to revive?
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Attracting "eyes" does not necessarily attract "money". It is not easy for video websites that have been burning money all year round to make profits. First-tier video websites have to find "godfathers". iQiyi clings to Baidu, Youku Tudou is backed by Alibaba, and Tencent Video has always needed blood transfusions from Tencent. Fengxing Online was recently pushed to MTC by Oriental Pearl. Previously, BesTV spent 30 million USD in cash to acquire 35% of Fengxing Online. However, Fengxing Online lost nearly 20 million RMB in just two years. BesTV’s story of TV and Internet integration could no longer be told, and it has been a drag on BesTV. In August this year, Oriental Pearl transferred its 63% stake in Fengxing Online to MTC for 967 million RMB. Similarly, 56.com is also burning Renren's money. On the one hand, video copyrights are expensive and require a large investment; on the other hand, the profit model of video websites is single and too dependent on advertising. Moreover, these second- and third-tier video websites have not been able to seize the opportunities of mobile Internet and have lost a huge market. Therefore, these video websites cannot bring due benefits to the acquirers, but instead continue to reduce the value of the parent company and become a burden to them. How a marginalized video website can be reborn However, these video websites have never lacked buyers. There are always some traditional companies that need to rely on video websites to plan and layout in order to achieve the ultimate goal of Internet transformation. According to an announcement from Shenzhen MTC Holdings Group Co., Ltd., Shenzhen MTC Holdings Group Co., Ltd. recently acquired 63% of the equity of Fengxing Online in order to integrate video resources, quickly layout the Internet TV market, and seek a strategic transformation from "consumer electronics manufacturing to joint operation of Internet TV business." Previously, Oriental Pearl, SMG Group and Qingdao Haier participated in the additional issuance of 3.67 billion yuan of MTC shares. This means that Oriental Pearl will provide licenses and content, MTC will provide terminals and joint operation platforms, and Haier will provide online and offline sales channels. The three parties will work together to create a closed loop of Internet TV ecology. Suning, which acquired PPTV, is also planning to enter the living room. At the end of July, PPTV launched its own brand of smart TV. Chang Jiang, general manager of PPTV's TV project, said, "Yes, PPTV's new TV ecosystem has been opened up." PPTV's smart TV, which was spawned by video websites, will expand from video to games, e-commerce, education and other aspects, and then occupy the blue ocean market of the family living room. Similarly, Xiangchao International, which spent a huge amount of money to acquire Xunlei Kankan, is also transforming into a video platform provider. Zhang Yubo, CEO of Xiangchao Kankan Group, said, "Xiangchao Kankan will invest 3 billion yuan to rebuild the 'four carriages' that drive the development of video platforms. These four carriages are absolute self-production, exclusive broadcasting strategy, Internet finance and precision marketing." This change will make Xiangchao International's video operation model more diversified. Whether it is Fengxing.com, PPTV, Ku6.com or Xunlei.com, they are gradually marginalized under the mobile Internet. However, in the new round of integration, some second-rate video websites have found their own destinations, some have become the front-end of content manufacturers, and some have entered the smart TV industry and played an important role in opening up the blue ocean of living rooms. Now, they have each found a backer, but this does not mean that these second-rate video websites can make a comeback. After all, even those first-rate video websites that have been supported by wealthy people are still racking their brains to turn losses into profits. 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. |
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