Storm TV Liu Yaoping: The industrial value reconstruction point is that the content payment rate reaches 20%

When the content payment penetration rate reaches the point of 20%, rather than the user data point, it is this point that determines the value reconstruction model, the value of society, the value of products, the value of enterprises, and the value reconstruction of services. When the point comes, the revolution will completely happen." Liu Yaoping said.

The original title of Storm TV Liu Yaoping: Internet TV can only be profitable if more than 20% of paying users are paid.

Cool special effects and complex character plot settings. Since the launch of the "X-Men" series in 2000, it has been a movie viewing phenomenon around the world. Whirlwind, attracting countless money. Such a super IP naturally attracts the covetousness of China Internet companies. After more than two months of negotiations,"X-Men" and Storm TV reached a cooperation. At the beginning of the month, Storm TV released two products named after "X-Men": Storm Super TV 40 X-Men version and Storm Super TV 2 VR TV X-Men version. Storm TV will promote the film, which will be released in China next month, and also obtain the right to launch it on the Internet platform.

One of the themes of "X-Men" is variation. It is the core idea of "variant" that attracts the changing Storm TV. As a veteran of the traditional TV industry who has worked hard at Skyworth for more than ten years, Liu Yaoping began to "mutate" the Internet after becoming CEO of Storm TV. He seems to be glad that he has "mutated" from a traditional maker to an Internet man. "There are many things that only Internet companies can do now, and traditional companies dare not touch them." He often says this sentence.

It is difficult for traditional TV manufacturers to reach users

. The thing traditional companies dare not touch is content. Although traditional TV manufacturers have found Internet interfaces, they have too few connection points with users. "I don't make content, I don't make a distribution platform, I don't have the user's account, and I don't interact with users." Liu Yaoping believes that it is difficult for traditional enterprises with hardware as the core to make breakthroughs in content, and the operation and distribution of content are directly related to users.

Taking this cooperation with Fox's "X-Men" as an example, Liu Yaoping revealed that Fox also hopes to directly reach users through the Internet in China.

In fact, Storm TV's content comes from three parties: one is its own, such as shareholder Aofei Animation content; the other is investment, through investment and mergers and acquisitions; and the third is content supply, such as the content of partner Aiqiyi. This organization method has low economic costs and high content coverage. The content industry is an industry with long production cycles and high investment risks. Complete self-sufficiency of content does not conform to market rules. "Users buy TVs back to watch movies. The era when buying TVs is to watch content has really arrived." Control of content is difficult for traditional TV manufacturers.

Previously, Liu Yaoping has repeatedly stated that traditional TV is very different from Internet TV.

First, the logic of cognitive industries is different. "Traditional TVs are finished after they are sold out," Liu Yaoping said."But Internet companies not only sell products, but also have to organize users, ensure the number of members, care about whether users are active, etc."

Second, companies have different organizational models. Traditional enterprises are generally straight-line functional organizations. But Internet companies and startups are more flat organizations. Liu Yaoping revealed the organizational structure of Storm TV to Tencent Technology: "We have no department, but are based on tasks. You may be the person in charge of this mission, or you may be a collaborator on another mission."

Third, all employees share the dividends. Traditional companies may focus more on short-term incentives, but Internet companies focus on long-term incentives. Employees have the opportunity to get equity.

Fourth, the product orientation is different. Traditional manufacturers make TV sets and are all supply chain-oriented. Storm TV is scene-oriented, expressing the scene of using the product first, and then looking at the supply chain.

However, in a race against the value reconstruction point

, although Internet TV is in full swing, it has become a recognized development model in the Internet TV industry with hardware as the entrance and making profits through content, user operations, etc. But can Internet TV really be profitable? Is this model really feasible?

Liu Yaoping believes that some traditional companies think that having more users means winning, but this is not the case. In his eyes, what determines life and death is not the number of users they currently have, but the proportion of paying users. I think if the proportion of paying users reaches 20%, the pressure on traditional enterprises will be very great, and the business model of Internet companies was established. The model of making profits through the proliferation and operation of content was established.

"In the past, when we were looking at kinescope TVs to flat-panel TVs, when 20% of consumers thought about the preferred tablet, the kinescope industry and CRT industry would perish. Similarly, when the content payment penetration rate reached the point of 20%, rather than the user data point, which was determined by this point, that is, the model of value reconstruction, the value of society, the value of products, the value of enterprises, and the value of services provided, the revolution completely occurred." Liu Yaoping said.

At present, there are generally two ways to monetize content, one is payment and the other is advertising. Liu Yaoping believes that it is impossible to use advertising revenue to feed back costs. Cultural products themselves have high costs and long production cycles, and the transformation of advertising alone cannot reflect their value. "Content payment is the foundation, and on this basis, other commercial values can be explored. Otherwise, it will be putting the cart before the horse." Therefore, Storm TV's strategy in content monetization is more about pushing member fees rather than pushing advertisements.

"Currently, our activation rate is close to 98%, and our paid penetration rate is close to 10%." Liu Yaoping revealed. All he has to do is race against his competitors before the point when Internet users reach 20% payment.

Editor: Nancy