After getting a marriage certificate and having a child, what kind of game is Youpengpule playing with China News Media?

On August 4, China News Media released the latest announcement, stating that its wholly-owned subsidiary China News Century Film and Television Investment Holding (Beijing) Co., Ltd. and Beijing Youpengpule Technology Co., Ltd. jointly invested to establish a new company, which will mainly engage in the purchase and sales of film and television content copyrights.

As soon as this news came out, it immediately attracted the attention of the outside world. There must be a big chess game behind this powerful alliance.

Upengpule and China News Media are in love

Before China News Media released the announcement, the outside world had been speculating that China News would cooperate with LeTV, so when the announcement was officially issued today, many people were surprised. China News Media not only "got the marriage certificate" with Youpengpule, but also "had a child" to jointly establish a new company.

The announcement shows that the registered capital of the new company jointly established by both parties is RMB 200 million, of which: China News Century Film and Television Investment Holding (Beijing) Co., Ltd. contributed RMB 120 million, accounting for 60% of the shares; Beijing Youpengpule Technology Co., Ltd. contributed RMB 80 million, accounting for 40% of the shares.

Judging from the current situation, the two parties are no longer just cooperating. The establishment of a company means that Huawen and Youpeng will jointly explore the market and share risks, and the business ties between the two parties will become closer.

First, let's look at China News Media. Earlier, it held about 36.8% of the shares of China Media Group through related transactions, and China Media Group was responsible for the construction and operation of the integrated broadcast control platform of China International Broadcasting Network (CIBN) Internet TV. Last year, against the backdrop of the adjustment of Internet TV policies and increasingly fierce competition in the OTT market, CIBN introduced investment from Youku Tudou to expand its content resources. Currently, Youku Tudou holds 16.7% of the shares of China Media Group.

On the other hand, as the first private capital company in China with the legal qualifications to operate Internet TV services, Youpengpule has not only cooperated with Guangdong Radio and Television Station in Internet TV business for 5 years, but also established the "Internet TV Content Cooperation Alliance" with Sohu and 360. Through nearly ten years of development, it has accumulated certain resources in the industry and gained a good reputation.

This time, Youpengpule and China News Media established a wholly-owned company that will focus on the purchase and sales of film and television content copyrights, which will have a positive impact on both parties.

The layout behind the powerful alliance

Previously, under the guidance of policies, the status of licensees was increasingly enhanced. In addition to capital and manufacturers beginning to move closer to licensees, the competition for resources among the seven major licensees also became particularly fierce.

Among them, although CIBN has Youku Tudou as a shareholder, its content advantage is not very prominent due to Youku Tudou's own resource construction. Unlike other pure video websites, Youku Tudou has been deeply engaged in Internet TV business for many years and has obvious advantages in Hollywood movies, 4K sources, movies, music, children's programs and other content, as well as related technologies. After the cooperation, Youku Tudou can help CIBN quickly fill the gap in content resources. The purchase and sales business of film and television drama content copyrights engaged in by the newly established company is also conducive to the content construction of both parties.

It is also worth noting that Huawen Media also revealed in the announcement that Huawen Century Film and Television Investment Holding (Beijing) Co., Ltd., Hairun Film and Television Production Co., Ltd. and Jinzhengyuan United Investment Holding Co., Ltd. jointly invested in cash to establish Huawen Hairun Film and Television Investment (Beijing) Co., Ltd. This means that Huawen Media will have a clearer layout in the film and television field in the future, which also has a positive significance for the concept of "Internet TV Cinema" previously promoted by Youpengpule.

It is undeniable that when the number of users of Internet TV screens reaches a certain scale, the secondary distribution of film products on TV can be tried. Shao Yiding, CEO of Youpengpule, once said that it is expected that Internet TV screens will truly share commercial value with film distributors next year. He hopes that the "cinema" based on Internet TV screens can grow as fast as China's traditional cinema distribution channels, bringing more monetization opportunities to the film market.

There are also reports that "China News Media Youpengpule has confirmed that it will subsequently invest an additional 1 billion yuan in the new company", but it has been learned that senior executives from both parties have not confirmed this statement.

Judging from the current situation, the cooperation between China News Media and Youpengpule will play a tentative role in the content construction, profit model, and traditional film and television distribution model of the domestic Internet TV market.

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.