My rebirth is different

Chapter 570 Video Advertisement Launched
Before everyone could ask questions, Cai Congxin continued to explain: "I know, everyone will definitely ask, after the launch of Facebook Music and Facebook Video, is it necessary to adopt a membership system? Do you want users to pay? What about free products to compete?"

These few questions he mentioned are indeed the ones that everyone wants to know the most.

"But have you ever noticed that there are indeed a lot of free music and videos on the Internet, but strictly speaking, they are all pirated resources! And the quality is very poor! Most of the music formats are MP3, and a song is only one MB, or even Even less, the sound quality can be said to be terrible! As for the video, if you have watched it, you should know that the picture quality is so blurred that you can’t see it clearly, it can be said that the user experience is extremely poor!”

People in the conference room nodded frequently. What Cai Congxin said was indeed true.

Because it is a pirated resource, coupled with the limitations of network conditions, the music and video resources on the Internet now obviously don't talk about the sound quality and picture quality, and it is good to be able to listen and watch.

In those days, netizens who downloaded pirated movies should know that a movie with one or two hundred MB is considered a "high-definition" version!
Movies with dozens of megabytes are the normal format. Compared with the current movie with a few gigabytes, the picture quality is obviously not comparable.

"Now the Internet infrastructure in the mainland is developing very fast. Many areas have already achieved ADSL Internet access. The downlink speed is 4MB and the uplink speed is 1MB. This network speed is actually enough to support online playback of relatively high-definition quality videos! Of course, the lossless format The music is not a problem either. There are two reasons why there are no music software and video sites on the Internet that provide high-definition lossless music and videos, one is copyright issues, and the other is their own hardware limitations!"

Cai Congxin analyzed in an orderly manner, and all VC representatives also nodded in agreement.

"Our Facebook music and Facebook videos will not use pirated resources. From the day they go online, it has been a purpose to provide users with high-quality genuine music and videos! We will use the funds obtained from financing to purchase copyrights and Strategic cooperation with those music companies and film and television companies! In this regard, Facebook has a natural advantage. Don’t forget that now all well-known singers and stars basically have their own Facebook accounts, and with the development of Facebook, Celebrities are also paying more and more attention to publicity on Facebook." Cai Congxin said meaningfully.

"But...? In this case, didn't we spend money wrongly? Competitors don't need to spend money, but we have to spend money to buy copyrights. Even if we provide higher-quality music and videos, the funds are always limited , can’t compare to the continuous pirated resources of the opponent.” A VC representative raised a question.

"Piracy only occurs under certain conditions, but this abnormal phenomenon cannot continue forever. With the pace of China's entry into the WTO, copyright issues will inevitably be put on the agenda. What's more, maintaining copyright also needs to take the initiative. In the past, those music companies or film and television companies did not have enough ability to pursue piracy and infringement because of their limited strength. But Facebook is different. We have enough confidence and ability. We still have a solution to the piracy of the opponent." Cai Congxin laughed.

Now everyone understands, it turns out that Facebook is thinking like this!
I didn't think about eradicating piracy on the entire network, that's not realistic, but it's still very easy to hold up the "big stick" of copyright and hit competitors...

"In addition, in the early days, Facebook music and Facebook videos were not easy to charge, but video advertisements will be added, allowing users to watch a 20-[-]-second advertisement first, and then experience high-definition videos. Users should be able to accept it. And relying on the huge traffic brought by Facebook, there is no doubt about the effectiveness of our advertisements, and the charges can be higher. Don’t forget, this is a video advertisement, not a webpage advertisement like Sina Netease. In comparison, the advertisement is even more Intuitive, the effect will be better!"

Video Ads!

This is relatively new. In the past, video advertising only existed on TV, and everyone knows how expensive TV advertising is.

Now Facebook Video is going to launch an online video advertisement, this matter...

There should be some tricks!
In this way, it can be regarded as a relatively perfect solution to the problem of monetization of Facebook's huge traffic, and provides a monetization channel.

In addition, holding the copyright of music and film and television, this will also be a "big killer" in the future!
After the domestic copyright awareness is strengthened, when other competitors want to make music and videos, they will be shocked to find that most of the music and film copyrights have been bought by Facebook.

Then how to compete...

…………

After the profit model was explained, the VC representatives present also left contentedly. They will each come up with their own quotations when they go back, and the one with the highest price will win.

After everyone had left, several shareholders of Facebook remained in the conference room, Yu Wenfei, Xue Chunhe, and Cai Congxin. As for Director Wang from Jiaotong University Venture Capital, they did not come today.

"Is this video advertising model feasible? Why do I have no idea." Xue Chunhe said with a little worry.

He is a representative of Softbank Capital. Softbank's investment in Facebook is not for charity, but of course it is for the purpose of cashing out when the right time comes.

So he is still very concerned about how Facebook makes money.

"Don't worry, I'll just analyze it with you, and you'll understand. TV stations, even those more famous satellite TVs, let's take Dragon TV as an example, their ratings are generally around 2000% during prime time at night. In layman's terms, it means that the number of viewers does not exceed 1000 million, and may even be less than [-] million. However, based on the user base of our Facebook, the number of viewers of our videos may exceed the [-] million mark! The effect of this advertisement To say it immodestly, it can be compared to the advertising effect of CCTV, but it has to be the advertisement of CCTV during the prime time of the day! You also know how expensive the advertising cost of CCTV during the prime time.” Cai Congxin explained.

"Moreover, we still reserve the right to make video memberships. When the copyright environment improves in the future and competitors are eliminated, users will gradually adapt to paying for genuine high-quality content." Yu Wenfei added.

Perhaps for Cai Congxin and Xue Chunhe, they still have concerns about the implementation of membership system for music and videos, but Yu Wenfei knows that he has experienced it.

After more than ten years, there may still be users listening to free songs and watching free videos, but more and more users are used to paying for Netease Cloud Music Membership, QQ Music Membership, or iQiyi QQ Video Membership, etc. of.

And with the copyright monopoly of video websites, on the basis of the paid membership system, secondary charging items such as "big membership", "golden membership" and "advanced on-demand" are emerging in an endless stream.

But the user scolds and scolds, the one who should pay is still paying obediently, there is no way, you really can’t see it if you don’t pay.

And for entertainment, spending dozens of dollars a month was nothing to the people at that time.

…………

On the other hand, Citigroup representatives immediately held a meeting after returning to discuss the investment in Facebook.

When you mention Citigroup, you may immediately think of Citibank. In fact, this is not comprehensive, because Citigroup is a financial group. Its business is not limited to banking business, but includes a very wide range, covering all financial businesses!
Like any investment, insurance, securities, consumer credit, financing and listing services, etc., everything!
The person representing Citigroup this time is the investment banking department of Citigroup, and it was sent directly by the headquarters, with a very high standard.

The person leading the team is the head of the investment department, Byrne.

"Facebook's financing this time is a great opportunity for us, and Facebook's IPO is estimated to be the largest IPO on Nasdaq this year or next year! The return is very generous! It started with $50 billion Let's discuss, what price should we quote?" Byrne sat at the head of the conference table and said with piercing eyes.

Not only Citibank is discussing here, but other companies such as HSBC, Temasek, Deutsche Bank, Goldman Sachs, etc. are also discussing quotations.

The video advertisement question raised by Cai Congxin today has indeed aroused great interest. Many people are keenly aware that perhaps this will be a new growth point in the field of Internet advertising!

Before this, video advertisements did not appear. In fact, in 2002, the movie "Hero" had already begun to try to promote video advertisements on the Internet.

They asked someone to make a 30-second short video advertisement, which was promoted on major websites on the Internet.

But this is not a conventional model, nor has it formed a scale, while the video advertising model proposed by Facebook this time is a conventional one.

Once Facebook's video website is launched, thousands of videos and videos will be presented to the majority of users, and at the beginning of these videos, there will be video advertisements ranging from 20 to [-] seconds!
This amount of playback is amazing, because the click-through rate will reach tens of millions!
This amount of clicks is also very attractive for those companies that want to advertise.

Even the effect of this video advertisement will be better than that on a big TV station, and the placement accuracy will be higher.

Everyone knows that those users who are active on the Internet happen to be the current mainstream consumer group, and they are also the objects that every business wants to try their best to attract.

Many of these young users no longer watch TV, so the effectiveness of TV advertising has gradually declined in recent years.

Perhaps, this innovation of Facebook, the video advertising form of Facebook video, will become the largest advertising channel in the future...

(End of this chapter)