In the field of video, PPTV has always been in an awkward position. Compared to iQiyi, Heyi and other first tiers, it lacks a strong head content. Compared to LeTV and Stormwind, it lacks some gimmicks and concepts.
Although last year's PPTV concert won the exclusive rights of La Liga for five years, it is really eye-catching. However, with the end of the La Liga tournament this year, PPTV has to consider how to survive in the absence of La Liga.
Last week, PPTV's official microblog released a message saying that although it has served the majority of fans for eleven years, it will inevitably say goodbye and doubts will be closed. However, in fact, Tencent Technology sought confirmation from PPTV's cohesive force. It said that the current situation is not that PPTV Cohesion really needs to be closed, but that PPTV Cohesion may be renamed as “Focusâ€.
Removing familiar PPTV means determination to change. However, the video market is very volatile and there are still opportunities for PPTV.
Twist history
Yao Xin, founder and president of PPTV Group, took a break from his studies during his master's degree at Huazhong University of Science and Technology in 2004. He developed PPLive, an online live TV broadcast software. He founded PPTV in the next year, focusing on technical product innovation and marketing in the field of network television. Operation.
At the beginning of 2011, PPTV received a US$250 million investment from Softbank, setting a record for the single largest financing record for the global Internet video industry at that time.
In October 2013, Suning announced that Hony Capital, a subsidiary of Legend Holdings, will jointly own shares in PPTV.
Among them, Suning Yunfu invested 250 million U.S. dollars, holding 44% of its shares to become the largest shareholder of PPTV. Hony Capital invested 170 million U.S. dollars in holding 30% of shares. The changes in shareholders have also triggered changes in personnel at the top level of PPTV. By March 2014, several high-level officials, including founder and CEO Tao Tao, had left. “Lenovo†senior official Lu Yan was appointed as the CEO of PPTV, and the main executive of PPTV was also basically the “association departmentâ€.
However, in less than a year, that is, in November 2014, the “Suning Department†began to take over the PPTV executives. Fan Zhijun, vice president of Suning Cloud Business, became the third CEO.
However, Suning's strong injection has not brought about obvious practical benefits for both parties. The 2014 Suning annual report showed that its annual revenue was 108.9 billion yuan, a loss of 1.458 billion yuan, of which the loss of PPTV was as high as 485 million yuan.
The data for 2015 was even more impressive. As a result, Suning Yunshang chose to transfer 68.08% of PPTV's shares to Suning Culture Investment Management's overseas subsidiaries at the end of the year and obtained a transfer price of RMB 2.588 billion. After the completion of the transaction, Suning Yun Shang successfully withdrew the burden, but also increased the company's net profit of 1.351 billion yuan.
That is, taking advantage of this divestment, in November 2015, Fan Zhijun released an internal letter that PPTV will seek to obtain an independent listing in the future. The location of the listing is set at home.
Unsuccessful "holding the thigh" also exposed many problems with PPTV. For example, lack of control over content. As we all know, the exclusive copyright exclusive content model can only support a certain period of time. Once the content is out of date, video sites must invest new funds. Although PPTV has Suning and Hong Yi’s blood transfusions, it does not have the consciousness to develop homemade content and misses the opportunity to control the source of the content. On the other hand, several other video sites have successively created explosive self-made content. In this regard, PPTV has lost its right to speak.
At the same time, PPTV's mistakes in policy control have also caused it to lose its chance. As early as 2013, PPTV has introduced a number of OTTs. These "television boxes" were once considered to be the core of PPTV's cooperation with Suning. However, radio and television "limited" about the box strategy frustrated.
Lifesaving magic: content? Electricity supplier? hardware?
Video is a constantly burning industry. The fundamental reason is that the continuous updating of quality content requires the continued support of capital purchase. At the beginning of 2015, PPTV Juli announced that it had taken 3 billion yuan to enrich its contents. In 2016, PPTV Juli brought out 5 billion yuan. However, compared with Youku Tudou to create 10 billion net content, LeTV videos to promote the original IP of 7 billion, this number is obviously not enough. At the same time, regardless of American dramas, Korean dramas, home-made plays, Tencent videos, iQiyi, Heyi, Sohu videos, LeTV, etc. have their own areas of expertise. It is difficult for PPTV to have an odds compared to content.
The only thing that made people's eyes shine was that last year PPTV Juli was awarded exclusive exclusive media copyright in the La Liga China region in 2015-2020. And in July last year, PPTV Sports successfully completed the spin-off and independence. The internal letter shows that the sports company will carry out an independent corporatization operation and set up an online business center, an event operation center, an industry development center, a marketing center, a sports investment center, and a function management center. The sports company has independent research and development, sales and program production, operation, and business procurement functions, and new live broadcast services, event operations, advertising sales, sports investment and other services.
At the end of the year, Zhang Xun, a former five-star sports executive, joined PPTV Ju Li as vice president of PPTV and general manager of PPTV Sports.
The outbreak of sports content has undoubtedly brought new opportunities for PPTV. La Liga has its own copyright, but it also needs to cooperate with the offline game operations and online membership system. In these aspects, PPTV has great room for improvement.
In addition to the content level, how PPTV uses the relationship with Suning to create a high-quality e-commerce interactive experience is also a big problem. This is very similar to the logic of Ali's participation in Youku Tudou. With Suning's arrival, PPTV's idea of ​​establishing a new business model around e-commerce, O2O, and life services is understandable. The profit opportunities of the traditional Internet video industry are too small to support its own development. Although PPTV has been stripped, it still has inextricably linked with Suning. Establishing the O2O model of the video industry is also an optional path for its development. Embedding product advertisements in videos to guide users to purchase and provide users with e-commerce application scenarios such as video of life services is an attempt that can be expected. Moreover, in the strategy of PPTV Juli 2016, the expression “O2O extension line industry chain†was also mentioned.
Finally, in terms of hardware, PPTV smart TVs and PPTV mobile phones have been released. Although on July 29th, PPTV denied that its target was LeTV when releasing its three smart TVs, its closed-loop ecosystem of "hardware + content + service + e-commerce" and music in sports, smart TV, video, etc. " The high degree of similarity of platform + content + terminal + application is still inspiring. In fact, PPTV Ju Li has more than 300,000 hours of film and television library copyright, including the current more than 85% of the hit TV dramas and variety shows, as well as the exclusive enjoyment of La Liga, video content can completely become a breakthrough.
In his internal letter, Fan Zhijun has three major directions for PPTV: Hardware, sports industry, content self-control. In fact, no matter which aspect, there is no small difficulty for PPTV. This afternoon, PPTV Ju Li will release its new strategy. The determination of its strong man to break the wrist makes people have reason to expect it to have better strategies and performances. The development of the final cohesion will be time tested.
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