Creating New Value of Network Audiovisual Programs

The first session of the World Internet Conference has just ended in Wuzhen, and the biggest event in the Chinese Internet audiovisual industry has kicked off in Shanghai. December 4-5, 2014, hosted by the State Press, Publication, Radio, Film and Television Bureau and the Shanghai Municipal People's Government, organized by the Network Department of the General Administration of Communications and the Shanghai Municipal Bureau of Culture, Radio, Film and Television, and co-organized by the China (Shanghai) Network Video and Audio Industry Base. The Network Audiovisual Industry Forum (CNAIF2014) was held in Shanghai. Youku Potato, iQiyi, Sohu Video, Tencent and other industry giants gathered in Shanghai to take the theme of “Great China Cultural and Entertainment Era, Creating New Borders for Industrial Prosperity”. They met with wisdom to discuss the future and seek a win-win situation.


Mr. Wang Yangbin, President of Vobile Technologies, made a speech entitled “The Eight Development Trends of Internet TV Industry in 2015” at the conference. The following is the full text of the speech:

Wang Yangbin: It is a great pleasure to attend this forum today. We have already established Vobile for nearly ten years. In the past few years, we have more cooperation with foreign film and television companies. I share today some of the situations we have learned abroad. Today, in the morning and in the afternoon forums, everyone has already spoken a lot. A big trend, I think this is the case in the international community, and it is even more intense in the United States because China's entire film and television industry has the protection of the industry and so on. So Internet TV is already a very clear trend to replace the current traditional TV. In the case of recording in the United States, we have seen very few televisions traditionally. The reason is very simple. Because of the convenience and the era of mobile internet, it is now very obvious that we should move towards mobile internet. It is also a big driver to launch its subscription TV service directly on the Internet as recently seen by HBO and CBS.

Looking at the statistics, we may feel more clearly the status of development. Take the situation in the United States, just mentioned that the entire NETELIX accounted for the largest, you can also see what the other Internet provides, and now there are 63% of people watching NETELIX inside things. Under normal circumstances, genuine copies have taken over the mainstream, but piracy also exists on the Internet. The growth situation was still very strong. At the end of 2013, the growth of Neteliix was more than 30 percent. If you are a paying user on Amazon, it can send you something for free, and you can also send a free video service. As an e-commerce company, we look at the television industry of the entire radio and television industry. This morning Mr. Liu also said that it is relatively difficult to earn money if it is far from the user. In the past, television through advertising fees, mainly to make you an impression of the brand, I hope you go to buy one day when you will choose this brand, a big industry on television is from advertising, half of the video business is the case. As an e-commerce company, the entire audience is now moving toward the Internet, and competition for this port and entrance is very strong.

The original NETFLIX had been in the United States for nearly 10 years when it was first established. Initially, it was actually mailing a DVD, which was a rental business. The development of these years is very obvious, and its entire DVD subscription business is also there, but it is now dropping very badly. From the perspective of the entire income, it is that the income of the media on the Internet accounts for 3.5 billion US dollars in its 4 billion US dollars. From the point of view of the growth rate, Amazon thinks that the proportion is growing very fast. It is now occupying the second place. On the HuluPlus side, the past few years have also grown rapidly. They are joint ventures established by several radio and television networks. They are taking their own content and basically relying exclusively on broadcast. This practice is the same as what Zhang said in the morning. The Mango TV method is a bit like that. It used to sell such programs. Now that it is more valuable, we can do it ourselves. They now have nearly six million subscribers and more than one billion US dollars in revenue.

In addition to talking about online video, the above is more about a charging model. As with the traditional wide-point model, it is the same way as the cable TV. The other type is broadcast television, which is free to watch television through an advertising-oriented viewing platform. YouTube, for example, is in the United States. It now accounts for 73% in the United States, which is the proportion of video on the Internet. YouTube in the United States has exceeded 1 billion users to visit their websites. The number is very large. Of course, this website is limited in China and cannot be seen. However, 60% of users from other countries around the world are on this site. In the past, some videos were edited by users themselves and uploaded to the platform. However, in the past few years they have also done a lot of expansion. In addition to the users uploading their own videos, they also have videos that are similar to professional ones, and certainly not the kind of big movies. Television Group, in the YouTube on the Internet, many people have opened their own channels, and their company also provides some management tools, there are more than 500 million channels in the entire YouTube. When we were digital, we talked about hundreds of channels, but after the Internet is hundreds of millions of channels, so this is a huge growth.

Meices was acquired by Disney. The reason is very simple, because the Disney attention group is a young audience group. They found that these young groups are no longer looking at the traditional platform. They prefer to look on the Internet. They already After the merger, it is now operating independently. Based on the overall state and pressure, this is a very big stimulus for traditional TV channel operators. At the same time, CBS has also done a relatively big move, that is, it allows users 5.95 blocks a month to see all the CBS TV programs, you can also watch the previous season broadcast TV programs. Based on this background, the entire industry has rapidly transitioned to the mobile internet, and the overall television ratings have continued to decline. This is the average number of television ratings in the United States. More and more people, especially young people, we also talked about in the morning. Later, they no longer watch TV in the traditional sense of the TV set. They are no longer connected to the cable network in the United States. Like interviews, the industry has accepted this fact in the past few years and think that everyone can use other things. However, the factual data has now been released for the past two years. I feel that this is an unquestionable figure. Too many young people, he No longer subscribe to this cable or other satellite TV.

In the United States, they are all thinking about how to make money on the Internet. There are many people watching the video, but the people who earn don’t have much money to earn traditionally. Such behavior shifts as young people do not shift with the will of the enterprise. Therefore, in the face of technological development, it should be said that traditional forces are very weak. We see the challenges ahead. We think the outlook is still very good. If you spend a lot of time on the media, that is, how many times a day your mobile phone is touched, the time spent on the move is disproportionate to that on the Internet.

Last year, there was also a landmark event in the United States. It is the first time in the history of advertising revenue on the Internet that it exceeds the revenue of broadcast television. We believe that all these signs are indicative of a good direction. It should be said that the current income on the Internet is still relatively single, and there will be more and more ways and means of inspiring the media to the mobile Internet. As mentioned by Zhu Zong earlier, seeing this program can be directly clicked and purchased directly. These are all new business models. When these new business models are formed, I think the income of the media on the Internet will also rise sharply.

In the past, I shared with you some of our exposure to the media companies in these industries, mainly overseas, and accumulated some observations about their development. Next, I will spend a little time to introduce the situation of our company. Vobile was established in 2015. It was synchronized with the development of Silicon Valley in Hangzhou. Today, we have nearly 300 employees. In Silicon Valley, Los Angeles, China, we are Hangzhou, Beijing, Shanghai, and Chengdu. We have our own company in Hong Kong, Dongxing, and Singapore. The main R&D staff is still Hangzhou. The products we made were very simple. At noon, I also accepted media interviews and talked about our company. In fact, over the past ten years we have been doing the above technical things, and the industry is still too few contacts, we do is the film and television gene is a content recognition technology. We have provided services for this technology, including copyright protection and value-added content. We have made some explorations. In the end, it is still for content value-added. This technology is currently leading in the world. It is not just a situation we say. We are A company that has a strong capital strength and maintains long-term and stable development has a lot of investment. Because of Ali Taobao’s listing, the salary of the entire R&D staff also increased very quickly. We have to pay hundreds of millions of R&D staff a year, and I think that for the technology, I believe we are in this profession. The input is the largest and most focused technical service company.

From the perspective of partners, I know that many of us here today are media people and should be very familiar with the Logo above. These are our customers and partners, both at home and abroad, domestically, and our main partners on two types. One is a content provider, a film and television company, a film and television production group including a television station, and these are enterprise platforms that are distributed on the Internet and mobile, including Youku and Tudou, as well as Tencent videos. These are our long-term customers.

As a company, our corporate mission is very simple. We hope to build a state-of-the-art technology platform. This morning, the iQiyi bosses also said that they are meeting. A large number of people are filmmakers and media people. Whether this company is a technical IT company or a media company is more confusing. Our company is actually very simple. We have 300 people, but we haven't got media people to join our company. Of course we have some new graduates from the Media Art Academy. Of course we also want some media people to join our company. We do a good job of cooperation in the industry, and now the vast majority of employees in our company are IT men. We believe that today's media has seen a rapid increase in the number of eyeballs on the mobile Internet, but the true value has not yet been fully explored. There is also a need for a series of new technologies to help them accomplish this. I personally should have been doing media technology for more than 20 years. For example, on the former digital television, for example, there are technical restrictions on protection and charging, but today I’ve come to the mobile Internet. I think that the basic platform exists, through the cloud. Platform, storage, and bandwidth will be sent out. This platform has already existed, but I think that you can really add value to the platform and you can use telecommunications to do value-added services before. I think that it will bring media to mobile platforms. Value, the technical means to generate value is not yet mature, including the earliest protection of copyright, that thing is up, it is taken, people do not know when you see it, where your things go, who is read, you are not Clear, how do you make money? First of all, you need to know where your content goes and how many times it is viewed by users.

I believe that many people present at the media in China have your content on the platform. Of course, there are not many people in China, but they are watching all over the world. We recently had contact with some operators to help them look at the contents of their platform. Therefore, we now offer content providers a service that is to find all of your content on this platform, and to get 55% of the revenue of those advertisements for you to recover. We just charge some service fees. So, this is just a small act that inspires the potential value of your content, so on this road, I think there are still many things we can and can do. Finally, I would like to express my gratitude to the organizers of today’s conference and hope that everyone will strengthen cooperation with us later.