My rebirth is different

Page 670

"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...

Chapter 572 Private Transactions

Facebook company, in Yu Wenfei's office, he and Cai Congxin were sitting there talking about things.

Now even Xue Chunhe is gone, and the rest are his own people, who can speak freely. In fact, Cai Congxin has concerns about whether Facebook can make money through advertising.

In fact, there is still a backhand behind the Facebook video, that is, membership payment!

Yu Wenfei didn't talk about this one today, because there will be no membership payment for the Facebook video for a period of time.

Only when the right time comes, will the membership system be officially launched. When is the right time?

It is Facebook Video that dominates the online video industry!No company wants to try to compete with it so far!

At that time, it will be the best time to launch a membership system. Yu Wenfei will use the huge traffic and huge amount of funds of the Facebook company to make all competitors feel desperate and make all Internet companies dare not step into the online video industry. Industry to compete with him!

In the final analysis, it is still the frantic burning of money in the early stage, investing in hardware, purchasing copyrights, and completely forming a market monopoly, and then the issue of charging is considered.

In the early stage, relying on online video advertising revenue, we should be able to roughly maintain a balance of payments, which is enough.

Yu Wenfei also likes to tell stories to investors, but he is quite conscientious. Basically, the stories he tells will become reality in the near future, including this time the Facebook traffic monetization model!

The reason why he dared to spin off the game business, the "big killer" for traffic monetization, and set up a separate company is also because of this, that is, his confidence in the income of the video business.

In 2003, there were no serious video sites on the domestic Internet. The earliest LeTV would not be launched until the end of next year. As for Ku0506, Youku, Tudou, etc., it would not be until [-]. The famous iQiyi and Tencent Video will be even later.

Even in later generations, in 2019, when the three major video sites were in full swing, iQiyi's annual revenue still reached 290 billion yuan, ranking first among the three major video sites.

Among them, membership fees are as high as more than 140 billion, and advertising revenue is nearly 90 billion. These two are still the largest revenue.The rest of the income comes from content distribution, ecological business, etc.

Of course, while the income is high, its expenses are even higher!

Throughout the year, the cost of content alone is as high as more than 220 billion, which includes the purchase of film and television copyrights and independent content development.

Compared with the cost of content, when the company reaches a certain scale, the proportion of investment in hardware is much smaller. iQiyi’s annual expenditure on bandwidth is only more than 20 billion yuan, which is far less than the outrageous cost of content. .

But there is no way around it, because behind it, Tencent Video and Youku are eyeing each other, both wanting to become the No.1 video website. The entire market is still in a stage of fierce competition, and no one has come to the fore.

Such a situation is very flattering for content providers.

If you want to get the exclusive rights to broadcast a popular drama series with big traffic stars, the fee can even be as high as 500 million RMB or more, and it’s only for one episode, so don’t think it’s too expensive!

If there are as many as [-] or [-] episodes of a series, the cost of this drama alone will be as high as [-] to [-] million!

For "Ruyi's Royal Love in the Palace" in 2016, Tencent Video bought the exclusive network broadcasting rights, and the price was as high as 900 million per episode, and you must know that "Ruyi's Royal Love in the Palace" lasted for 87 episodes...

In other words, Tencent Video spent nearly [-] million just to buy this show!

With prices so high, can video sites not lose money?

Everyone is gritting their teeth and pouring money into it. They only hope that they can make it through and beat their opponents to death first. After they monopolize the market, it will not be easy to make money.

But at the same time, there is also a strange phenomenon that many people have not noticed, that is, the cost of online broadcasting rights for the same series is skyrocketing, but the cost of broadcasting rights purchased by TV stations has not increased much!

The same "Ruyi's Royal Love in the Palace" was sold to TV stations for only 300 million per episode, but sold to Tencent Video for as high as 900 million per episode!

It stands to reason that competition among dozens of TV stations across the country should be more incentivized than in the online video industry, and the prices should be higher.

But don't forget that although the TV stations have competition, they are the same "big head", and each TV station is a brother unit. After all, everything can be discussed, and there is no vicious competition.If there is any conflict, there will naturally be parents to mediate.

Online video is different, because at the end of this industry, the one that can survive the most, if you want to live well, you can only "kill your opponents"!

By 2019, there will be only three video giants left, but each is still losing money, and this is the reason.

…………

"After getting the money from this round of financing, we will set up a content department and contact major music and film companies as soon as possible to purchase copyrights." Yu Wenfei said calmly, looking at Cai Congxin deeply.

In the current environment, perhaps Facebook's behavior of spending money to buy copyrights will be ridiculed by many colleagues.