Video websites should do film and television business like this

Film and television companies have become the next focus of competition for video websites.

Sources from multiple different channels confirmed to us that LeTV Pictures had completed its B round of financing a few days ago. There are rumors that the financing scale is around 500 million yuan, but this figure has not been confirmed. LeTV is not the only one eager to try film and television production.

After half a year of research, Youku Tudou announced the establishment of a film and television company. iQiyi also announced the establishment of iQiyi Pictures in July this year.

Why does the film and television business attract video websites to fight in this field regardless of the cost? What are the differences in the strategies of various video websites in the film and television business? By combining information from various sources, we have obtained the following key information:

1. LeTV Pictures' huge financing is a challenge to traditional film and television companies

Multiple sources have confirmed to us that LeTV Pictures has completed its B round of financing, which was led by Sequoia Capital's RMB fund. It is understood that after completing this round of financing, in addition to listed companies such as Enlight Media and Huayi Brothers, LeTV Pictures has become the most highly valued film and television company in China, with an estimated total valuation of more than 5 billion yuan.

An unnamed source revealed that after completing this round of financing, LeTV Pictures will have the strength to challenge traditional film and television companies in terms of both funds and film and television resources. The other party revealed that LeTV Pictures signed Zhang Yimou last year, which was an important reason for the rapid completion of this round of financing. In the development blueprint planned with investors, LeTV.com also clearly stated that it would "sign more big-name directors" and use Internet thinking to subvert traditional film and television production. In addition, there are rumors that LeTV had made a high-profile plan to subvert Huayi Brothers during the financing period, but this rumor has not been confirmed.

In addition, data shows that the box office revenue generated by LeTV Pictures in 2013 has exceeded 1 billion, and the amount of its Series A financing is 200 million yuan.

2. iQiyi Pictures: Focusing on distribution to avoid competition with traditional film and television companies

In July this year, iQiyi announced the establishment of a film and television company. A month later, the company announced a high-profile partnership with Jiang Wen's film and television company to launch the movie "One Step Away" as an investor.

In addition to this movie, iQiyi also disclosed that it will release eight movies in the next year, one of which will be a Hollywood movie. However, unlike LeTV Pictures, iQiyi Pictures has no plans to impact traditional film and television companies.

Gong Yu told us that iQiyi Pictures is a company working for the traditional film industry, using iQiyi Pictures' Internet genes to serve the film industry. Gong Yu believes that traditional film companies have three major functions: production, distribution, and publicity. iQiyi Pictures will use its own Internet characteristics to play the fourth function of the film industry, the Internet business function. iQiyi will open up the entire film O2O industry chain, including online movie ticket purchases, online games, derivative product development and online sales, and film network copyright monetization.

It is understood that in addition to investing in movies, iQiyi Pictures will also integrate iQiyi's internal film and television resources. Currently, iQiyi has studios such as Ma Dong, Gao Xiaosong, and Wu Xiaobo, as well as more than 30 self-made content. How to integrate and package these self-made content is also an important business of iQiyi Pictures.

3. Youku Films focuses on O2O

Two weeks ago, Youku Tudou announced the establishment of "Huiyi Pictures" with great fanfare. Officials said the company will be committed to building an O+O (online and offline integration) cultural and entertainment platform, with Zhu Huilong serving as the company's CEO.

An insider of Youku Tudou said that the company's income from Internet distribution of film and television dramas has exceeded 16 billion yuan, which accounts for about one-third of the total box office revenue of domestic films.

It is understood that Heyi Pictures is more similar to iQiyi in terms of strategic direction. According to internal information we have learned, Youku Tudou Film and Television's key business is also Internet marketing, rather than challenging traditional film and television companies such as Huayi Brothers and Enlight Media. The company's future focus is to promote the precision of large-scale production and marketing. Build three platforms for IP incubation, new filmmakers and fans to integrate online and offline.

in conclusion

Although LeTV, iQiyi, and Youku Tudou have all quickly established film and television companies, it is not difficult to see from the specific strategies of the three companies that LeTV has continued its approach to Internet TV and boxes, focusing on subversion. If LeTV TV is going to subvert the jobs of traditional TV manufacturers such as Haier, Changhong, and Konka, then LeTV Pictures is going to subvert the jobs of traditional film and television companies such as Huayi Brothers and Enlight Media. Compared with LeTV, iQiyi and Youku Tudou are much more moderate in strategy. Their main focus is to integrate their own film and television resources and cooperate with traditional film and television companies, which is very similar to the layout of the two companies in Internet TV and boxes.

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.