Top of the Great Era

Chapter 1688 Industry Dilemma
This is the first time that Ziweixing International Department has received so many executives from the headquarters.

However, the large screen in the meeting room seemed to be malfunctioning.

Urgent repairs are required.

Zhou Buqi did not pursue those formalisms, and comforted them with a smile, saying that accidents are inevitable and there is no need to worry.If the conference room is not good, just go to the office, move a few chairs, and sit around together.

It's not such a serious financial meeting, the main thing is to unify the thinking and explain the truth clearly.

Then, a group of more than a dozen people really went to Liu Qing's office.

There was no room to sit on the sofa, so seven or eight chairs were brought in, and everyone gathered around two rows of sofas, drinking tea and chatting at the same time, a bit like a tea party.

The atmosphere is relaxed.

However, the topics to be discussed were not at all easy.

Zhou Buqi got straight to the point and stated today's topic first, "Call everyone over, mainly to talk about whether to acquire Duowan. And some conceptual thinking derived from it."

Guo Pengfei also cut to the chase, "I think we should buy it!"

Zhou Buqi almost died of anger.

Depend on!
This bastard kid, I communicated with him in advance, asking him to support me, but I didn't expect to sing the opposite tune when he came up.

Guo Pengfei said: "There are three main reasons for the acquisition. First, YY is a very successful social software, second only to QQ and Helo in China. Second, YY is a successful demonstration of the 'Magic Reform Helo' plan. It has developed rapidly with the help of Helo’s traffic. The acquisition of YY can inspire more Helo developers. Third, I am optimistic about the live broadcast industry.”

Zhang Yiming said: "From a business point of view, the acquisition of YY is of great value to Ziwei Star. However, business must be subordinated to strategy, and strategy must be subordinated to corporate philosophy. We still have to look at this case from a higher perspective."

Zhou Buqi waved his hand, "Let's talk about business first. I am not optimistic about the live broadcast industry because there is no clear profit model. Video live broadcast has been developed in Europe, America, Korea and Japan for several years. It can be predicted that this industry will definitely grow in the next few years." It has developed on a large scale in China, just like the popular video websites.”

Liu Qing had talked with him once before, so she was able to keep up with his train of thought, and nodded slightly, "Well, the mode of live video broadcasting is actually not fundamentally different from that of video websites."

"what?"

This surprised Zhang Yiming, Ji Zian and the others, because she didn't hold such a view during the previous exchange.

Zhou Buqi said with a smile: "We don't make a video website because the national conditions are not good. In the United States, Hulu can make a considerable profit a year just by advertising fees. There are two reasons. One is that Hulu is backed by Hollywood giants. , you can get better copyright terms. The second reason is that users in the United States are used to paying for services, can enjoy the free video content provided by Hulu, and have a higher tolerance for advertisements.”

Guo Pengfei nodded, "After Kuliu was acquired by Shanda, there was more profit pressure. A lot of advertisements were added. Because of the increase in advertisements, Kuliu fell behind and changed from the first echelon to the second echelon. Users don't like ads."

Zhou Buqi waved his hand, "In fact, this is just a superficial phenomenon. Although Hulu can make money now, the advertising model is destined not to be the future of the streaming media industry. The Internet does have a free attribute, but the premise is that the advertisements generated by the traffic brought by free The income can meet the operating expenses. Youku and Tudou can’t survive with this mere advertising fee, and neither can Hulu! In the final analysis, there is only one way for the future of streaming media, and only Netflix’s way.”

This is a group meeting.

However, Zhou Buqi can't say it alone.If he said it alone, it would be an "order" from top to bottom.If it is an order every time, it will destroy the partner mentality of this business community after a long time.

Executives are not the same as ordinary employees at the grassroots level.

Executives should not be obedient, but start from the heart and do what they want to do.Just like the Ziweixing acquisition of YY case, if there are disagreements, then sit down and discuss, and clarify the logic inside.Instead of telling them coldly that they can't buy it, as for why they can't buy it, they don't explain it at all.

This makes it difficult for executives to understand Boss Zhou's corporate thinking well, and it is even more impossible to follow his ideas to do something independently. If things go on like this, they will lose their subjective initiative and become administrative zombies.

This is actually the downside of dictatorship.

For enterprises, it is necessary to make good use of the benefits brought by CEO dictatorship, and at the same time find ways to avoid the disadvantages brought about by dictatorship.The best way is for everyone to sit down and discuss together frequently. It doesn’t matter if you have doubts or disagreements. Everyone speaks out clearly, tells the facts and makes sense, and moves in the right direction together.

However, there are more than a dozen people this time.

If everyone speaks casually, there will be chaos.Therefore, there is also a meeting order, and the people who can directly participate in the discussion with Zhou Buqi when he is speaking are Zhang Yiming, Guo Pengfei, He Yang and others.If other people want to speak, they have to raise their hands first.

Regarding what Boss Zhou said, Guo Pengfei recognized it very much, "This is related to the sales model of the advertisement, based on exposure and clicks."

"Yes, it's down to the root!" Zhou Buqi gave him a thumbs up, "In the final analysis, it has something to do with the industry model. The scale of the advertising industry is very large, but the model of advertising is volume. For example, Youku's A movie, as long as 120 minutes, will bring huge operating costs and broadband cost consumption to Youku, but in the process of watching the movie, the user only clicks on the web page once, and only watches the opening advertisement once. If it is a What about the MV video of the song? The 4-minute content is also one click and one advertisement, and the revenue is equivalent to a 120-minute long movie. This is the industry paradox between the long video model and the advertising model!"

A 4-minute MV can bring one advertisement fee; a 120-minute movie can also bring one advertisement fee.

The ad revenue is the same for both.

But the operating cost is completely different, the difference is dozens of times!
This is the biggest dilemma of the long video industry.

Zhou Buqi went on to say: "Short videos and advertisements are compatible. I believe that in the future, the short video industry can be established, and it can completely rely on the model of 'free + advertising'. But long videos are not good, and long videos and advertising models are not compatible. Coordinated, paid memberships are the only way to go, like Netflix."

Everyone is pessimistic about this.

Ji Zi'an said: "Can the subscription model develop in China?"

Zhou Buqi said: "Life is rich, people have money, and the control of piracy is stricter. After all, we must transform in this direction. However, it is still impossible to see a real turnaround. There are too many video sites. , the copyright price is too high, and the membership fee cannot be too high, this is the industry's dilemma."

There are too many video sites, and the competition is too fierce.

It's good to have competition.

Many Internet products in Japan are doing poorly. The big reason is the lack of competition, which leads to the lack of progress.Anyway, if you can make money steadily, why do you need to constantly update and continuously improve service standards for users?Users like to use it or not, and there is no such store away from this village.

But there's too much competition, and it sucks.

Such is the dilemma of video sites.

There are so many video sites in China. Not only big Internet companies have their own video sites, but many TV stations have also transformed into video sites.

The result is that all parties are vying for the copyright of film and television content, which has caused price gouging and copyright prices are getting higher and higher.

As a result, the cost of the website is too high to make ends meet.

The United States actually has a similar dilemma.

So Netflix wants to make its own dramas, bypassing the barrier of purchasing copyrights.

But the problem came again.

Netflix can make its own dramas and shoot whatever it wants. It can even shoot many large-scale dramas in order to attract users' attention. Many dramas are like small movies.

This is the key to Netflix's success.

This is not the case in China, not to mention the large scale, vague values, profound themes, tainted artists, political, military, police, and ethnic minorities, etc.

Many video sites have passed the initial review when their projects were established. After the self-made dramas were filmed, they were killed in the second and third reviews, causing huge losses.

There is no way, the self-made drama is too difficult to pass.

It is safer to honestly spend exorbitant prices to purchase film and television content that has been broadcast on TV.

A similar situation applies to the live streaming industry as well.

Zhou Buqi said: "Live video is of course also a long video, which is contrary to the external advertising model. As for some built-in advertisements endorsed by the anchor during the live broadcast, it is also difficult to share with the platform. Only relying on users' gifts and rewards, It is very difficult to implement the model. This is not counted, the most difficult thing is censorship. Korean video sites have been developed for many years, and they are doing very well, who has paid attention to it?”

Many people raised their hands.

Zhou Buqi pointed at Pei Yao, "Boss Pei, can you tell me?"

Pei Yao pursed her lips into a smile, and then said solemnly: "The live broadcasting industry in South Korea is mainly divided into two categories, one is live broadcasting of games, and the other is live broadcasting of beauties. These two types are not very good in China. The survival of the game industry in China There is a lot of pressure. If the game live broadcast is really done, it will inevitably be strictly controlled. The live broadcast of beautiful women will be even more serious. Those girls live live... Many times they have to play around the edge, and even have some hints in language and body movements. "

Zhou Buqi nodded, "That's right, the live broadcast industry is instant, so it is even more uncontrollable. Not only is the profit model unclear, but it also faces heavy regulatory risks."

Doing business in China, the biggest risk does not come from the market, but from the regulatory level.

The enterprise has reached the scale of Ziweixing, and the problems in the market are easy to solve.

If you can beat it, you can beat it, if you can't beat it, just buy it at a high price.

But once a regulatory problem arises, it will cause violent fluctuations in stock prices.Even if Ziweixing bought YY, this little business of YY is insignificant in the big group of Ziweixing.

For such a small business, it is too unfair for other core businesses to let the whole group bear the regulatory risk together.

They should still be separated.

Release some industries that are not related to Ziweixing's core business and let them live alone.Whether it is life or death, it is up to fate.

(End of this chapter)