Gong Yu, founder of iqiyi and CEO, attended and delivered a keynote speech entitled "the Internet brings New opportunities for China's Entertainment Industry again" at the Fifth China Entertainment Industry Annual meeting held in Beijing on September 16.
on September 16th, Yien's Fifth Annual meeting of China's Culture and Entertainment Industry was held in Beijing. Gong Yu, founder of iqiyi and CEO, attended and delivered a keynote speech entitled "the Internet brings New opportunities to China's Culture and Entertainment Industry again". "China's Internet industry is at the forefront of the world, and many of the things we are doing related to the Internet are the first things the world and even mankind have done for the first time. Facing challenges, meeting challenges and achieving achievements are the biggest inspiration for us." For video websites have invested in self-control, Gong Yu said: "iqiyi does homemade content not to save money, but to produce synergy."
strong > Communication Service: the entertainment industry ushered in the third opportunity / strong > the Internet has brought two opportunities to the entertainment industry. The first is the birth of China's online media. The landmark event is the birth of the online media model represented by Sina in early 1999, and its essence is the one-way dissemination of information. The second time is the spread of cultural and recreational works on the Internet, from digital to video. Now will usher in the third opportunity, the communication service. Communication service refers to the synergistic effect of connecting all kinds of services with the same IP, including video playback service, movie ticket, crowdfunding, online games, e-commerce and so on. Gong Yu said: originally, the Internet has had a relatively great impact on the entertainment industry several times. On the whole, this impact is positive, but for a certain enterprise, it may not be positive. Moreover, for the enterprises that have already occupied the leading position in the industry, the negative factors may be greater, that is, it is often said that one cannot move forward lightly with a burden. for China's video industry, from 2004 to the present, almost 90% of the investment is based on a new platform established by Internet communication. However, starting from this year, the industry has added one more thing-- content, online dramas, homemade programs and movies. From a strategic point of view, there is no doubt that making content including movies is an important direction for video websites. strong > Synergy: the biggest purpose of the platform to do content / strong > Why make it self-made? The first purpose of self-control is not to save money, but to produce synergy. It is called Synergy in English. The synergistic effect is "1-1-1-GTX-2", in which many things come together and their value is greater than the sum of simple values. First used for corporate mergers and acquisitions, after the two companies together, after integration, the original market share, income or profit is much larger than the original simple sum of the two, which is a positive synergy. Synergy platform does content, why should there be synergy? Gong Yu said, "if the online video industry continues to develop according to the current model, it will not be beneficial to the platform and content producers." Because there is no loyalty between them, in order to maximize profits, the producers must seek prices on various websites and will ask for prices, and sometimes each episode of TV series will increase by 200000 within 20 minutes. in the medium to long term, this increase is very disadvantageous to the content manufacturing industry. because both sides have no loyalty, all work can only be short-term. " take the Chinese TV series industry as an example, there are more than 3000 registered TV series production companies in the market, and hundreds of companies have produced works, which are very scattered. The largest TV series production company in China is Huatze. According to the number of episodes, its income is very low, but its market capitalization is very high, because it is a phased situation in a special period and under special conditions in China's capital market. But the future is not like this, because no good enterprises have been born, and the synergy effect of Synergy has not been reflected. " how can synergy be achieved? Gong Yu believes that for China, the Internet may be to integrate these IP, so that there is a synergy between them. He cited Disney's case. Disney's total revenue in 2013 was $45 billion, radio and television-related revenue reached about 46%, and profits reached more than 60%. We feel that the Disney business that has the greatest impact, at least on the Chinese, is the film business. but its revenue only accounts for 13%, profit is even worse, accounting for 6%. However, Disney as a whole makes a lot of money, with a profit of more than 10 billion yuan in 2013 and a net profit margin of nearly 25%, because it relies on cable networks to achieve synergies. strong > the same goal: enjoy the results of synergy together / strong > what is the potential market value of synergy? It can help Internet companies to get a bigger market cake. Gong Yu said that last year, Chinese films grossed 21.7 billion yuan at the box office, 10.8 billion in TV dramas, and more than 80 billion in online games, four times that of movies and eight times that of TV dramas. Last year, the revenue of B2C e-commerce was 1.85 trillion, and films, TV dramas, TV stations, cinemas and other industries were given a very small cake. As it said, the same content IP different forms of entertainment works together, and then connect with other services through the Internet, so that they have a synergistic effect, which is the biggest opportunity for the future. for video websites, for platforms, for production companies, we may have different paths, but the aim is to share the results of synergy.