Galaxy Internet TV Zhang Xiaochun: Pattern View of Internet TV

Zhang Xiaochun, Managing Director of Galaxy Internet TV Co., Ltd., gave a speech titled "View of the Internet TV Landscape". The above is the full text of the speech:
Zhang Xiaochun: Galaxy Internet TV only came out in recent years. Some people call us a "licensee party." In fact, the last few years I didn't want to hear, said that my identity is a licensee. But this is also an unavoidable role. Now that leadership is absent, I will use the role of the licensee, what we can do, and whether we can do a good job of sharing these aspects with us.

Under the user scenario where the living room is the main carrier, it is an ecological chain. In the ecological chain, in April 2010, the Directorate General managed Internet TV through licensing. At that time, a group of licensees such as CCTV and BesTV began to stage. In fact, before the licensee’s appearance, some products have already been used by everyone. After three years have passed, what kind of portraits of the licensees are in the eyes of these people?

Prior to the introduction of management in April 2010, including televisions and set-top boxes, major terminal manufacturers have built platforms on their own, providing some audiovisual services for users in home scenarios. Later, the "licensee party" appeared. The "licensee party" and their relationship are like the young and old. I can't do anything for you, but I'm there. I'm going to collect money.

In the original situation, televisions were connected to TV stations through wired networks. In fact, the "licensee party" is a broadcasting broadcast television subject. With such a broadcasting main body, it is not television stations that provide services for users. For provincial TV stations, the “licensee” is like a “robber” who grabs cakes from their sites.

At that time, before the TV had no "licensee party", the main video site was received. However, the video website is not the main body of the compliant video/television broadcast. Therefore, the video website said that I am not streaking. I also have a “licensee” mark, so the “licensee” is a proof that they are not streaking. Like a bow tie accessory.

The “licensee party” that is highly hopeful is the subject of competence, market share and brand recognition. The "licensee party" has worked hard, but it seems to the General Administration of Administration that you are a bearish child.

What role should the "licensee party" be? In answering this question, I hope to be able to return to the user's needs in the home scenario. In my opinion, the needs of users in the home and TV as a terminal are divided into two categories. One big class is: I only need to accompany you, as long as you have continuous playback of video and sound. More often than not, such linear broadcasts, programs broadcast in time series, are no longer able to meet the needs of users. He hopes to find programs he would like to see more. Can these two kinds of needs be in China like the Internet to get what he needs? This sentence was mentioned yesterday when I listened to Wu Xiaobo's teacher. He said that in view of him, the world has two Internet. One is American style, and the other is Chinese style. And he thinks that American-style, from its roots, from its characteristics, it is an eclectic, out of control, pursuing freedom. In contrast, after the Internet landed in China, it became an internal-controlled, pragmatic, pursuit of price-earnings ratio, and even in China has achieved oligopoly. Using the view of teacher Wu Xiaobo, I think there are also two television networks in China. One is called TV Internet and the other is non-TV Internet.

Before I came to Shanghai, I also participated in the Nanning Information Network audiovisual program management work conference in Nanning. The industry regulators at the meeting also mentioned that everyone on their mobile phones and mobile screens can see the mainstay of service provision. Why can't they be provided on TV? Yesterday, Wu Xiaobo’s point of view is also an interpretation of this. In itself, the characteristics of China's Internet are different from those of the United States. I agree with this internal control and pragmatic statement.

Therefore, in providing users with audiovisual needs in home scenarios, we do not use existing business form classifications, such as live, on-demand, and self-operated channels, which is also a summary of the type of television by the Directorate General. We can look at the user's content on television screens by using existing product patterns. The first category is news. News is also best suited for accompanying listening. The second category is movies and TV dramas. Judging from the present, before the advent of video-dominated Internet companies, the major suppliers of TV dramas are television stations. The films in China are mainly theaters and pirated DVDs. Nowadays, the main suppliers of films and television dramas, especially movies, are mainly provided by internet companies. Everyone has seen very few movies on television. The fourth category is variety shows. According to our ratings data, variety shows can be ranked in the second category of audio-visual applications. The supply side has expanded from the traditional television stations to many video internet companies to start making their own variety shows. The fifth category is that users have always had needs, but they have only been trying on TV screens, and there are no well-supplied applications, that is, localized services. In our opinion, there are five categories of content that users need on television. The five categories should be provided by the newly added main body instead? Or take into account the original enthusiasm, the original intention, including the balanced development of regulatory agencies at all levels of broadcast and television broadcast institutions? We believe that, like the Galaxy, it is entrusted to operate a nationwide new media business. When such qualifications face the user's needs, they must pay attention to the participation of local broadcasters and broadcasters in the new media. This feeling has been particularly strong in the past six months. After the speech of the general secretary, industrial integration has become an important issue for everyone. This kind of integration is definitely the integration of traditional media and new media. Radio and television organizations at all levels are particularly enthusiastic about their participation in new media business. I also accompanied the leaders of CCTV and received 6 or 7 delegations led by the Minister of Propaganda at the provincial level. Like the Galaxy, the theme of the new media business can be launched nationwide. When conducting business, it must be We must take into account the enthusiasm of the provinces and brothers and Taiwan in launching new media businesses.

In our opinion, these contents can in fact not be provided by one company, or even distributed to provide the final output for the user will be better. Internet TV, compared with the traditional services of traditional broadcast and television institutions, has a different cost structure than the original one. The biggest one is that the original broadcast and television department needed to bear the cost of transmission, but Internet TV broadcasters, this is a big piece of cost. In these costs can be subdivided into IDC costs? Bandwidth costs, server costs, and maintenance costs. In terms of copyright procurement, traditional TV stations only need to buy dramas, and have variety of high-paying teams, agency commissions, channel expansions, and adaptations for different terminals.

The role of content cost is to exchange the thickness of the content and the width of the content type and the freshness of the time. Traditionally, they are arranged in time series, so these latitudes are not used. But you, as the dominant user of on-demand, must have.

The CDN cost can be exchanged for the breadth of the coverage and the smoothness of the viewing time. Everyone watched the video on the phone and it felt very smooth. The reason is that we call it stream, that is, what you see is presented on a small screen. It needs the support of network transmission capabilities and the response is not very demanding. On the mobile phone side, the maximum number may be 100 K, but the transmission on the TV may be minimal. How to ensure that you can get service when you access the Internet in any area? This is the problem that the CDN cost has to solve.
The operating cost resolves the user's viscosity, including the ability to cash out.

Brothers and television stations have developed three major mountains of Internet TV. I consulted Liu Dele yesterday. What is the large number of video sites used for copyright program purchases? Döl never gave me specific numbers, but gave a reference. The cost of traditional TV broadcasters buying TV dramas throughout the year, and the expenditures that video websites use to buy copyrights, has surpassed the cost of all broadcast TV stations to buy dramas. The cost of CDN, Youku is also a listed company, some data can be found. CDN costs half of Youku’s copyright costs. Our own data, to achieve the support of one million users in a single province, your CDN investment per month is probably 8 million.

You can calculate the cost according to the area and the number of users supported. I have not listed operating costs. We are doing business. For example, Shao Yiding always has a profound feeling. Shao's company should have about 600 people, and we call it a large operating cost. The annual operating costs of these 600 people should be close to 100 million yuan. Does this mean that traditional broadcast and television organizations are willing to bear the burden? In addition to being willing to take on the strength, there is the "boss of the boss" of the traditional radio and television organizations. Yesterday, with the total exchange of Mango TV's Rambo, he also felt very strongly that not only the problem of strength but also the determination of the boss. Institutions like “licensee parties” are company-based in terms of their operation style. But it is not a venture capital-driven company. It is the expectation of a traditional broadcasting and television institution. This expectation allows you to have a certain amount of trial and error, degree, and cycle of investment recovery. Such a mechanism is, I think, a problem that affects the traditional radio and television organizations in the face of the same opportunities to face the same Internet TV service opportunities.

When Galaxy responded to the role of the integrated licensee, the first thing we think of is whether we can bear the common cost of fraternal radio and television broadcasters to carry out this kind of time. I do basic, common, you do personality. Lin Fangjian always said that each program should be customized. Why did users flee the TV screen? You didn't take him seriously. You didn't think of the difference between his needs and the needs of other people in his family. Nowadays, IP-based, user-friendly online audio-visual services can do this, and we are also doing it. The elderly in the family came over and did not need to input. Through some means of identification, we knew that it was the grandmother who was watching TV. The corresponding interface and content would be different when the son came to see it. This kind of customized operation and localized operation is considered by our province as a broadcasting and television institution. The commonality, the transmission cost just mentioned, the cost of copyright procurement, and the common operation cost of the cloud are actually Commonality. If I can take on these roles, my image may not be like the image of the “Young and Dangerous” I just described.

Galaxy Internet TV, from the technology platform, from the content, from the distribution of the three aspects, we are doing resources reserves and product development. We hope that the developed platform will be provided free of charge to the provincial radio and television organizations without any additional costs to help them realize such a sense of participation. At the same time, it will also join more content service agencies to form an intensive alliance of copyright procurement and copyright sharing. As a result, the content of each provincial radio station has become even richer, and they have provided cross-domain coverage and content transmission. We are also willing to provide them.

This product interface is our upcoming interface. Contains the modules that I mentioned just now. These modules are reserved for radio and television agencies at the provincial level and run by them. For example, if local information services and all television channels are broadcasted, the original terrestrial channel cannot be star-studded. The IP channel can also be used by some local people in other places.

The Galaxy Open Platform may be divided into the regulatory, core, and cloud service layers. There are also four levels of access layer. These modules have already been developed. If there is no custom development, we will provide them free of charge for brothers’ broadcasters.

In my opinion, as an integrated broadcast control platform, in addition to the duties of broadcast control, we only have to become the R&D center, broadcast center, transmission center, and coverage center of provincial radio and television, as well as the emerging partners of the business, integrated licenses. The role of the party may be more valuable and it may be more landing. We will probably launch a content service product for Jiangsu's Internet TV platform before the end of the year. We also hope to propose similar products for more brothers' TV stations.

Back to the title question: What kind of role should the licensee be? This is a market that we all need to face together. We believe that the licensee should first be the guardian of the rules. This is also the original intention of the regulatory body to entrust this entity. In addition, it should be the creator of value. We think that this value is first and foremost the value creator of content service providers. Third, in the end you can not be recognized by the user? Recognition is the key to achieving the first two roles. So we think that should be the user's concern.

The previous demand-on-demand service, or online video, did not rely on providing users with better services, but on the scale to win users. But in our opinion, China's Internet TV is a television network. Here, compared with traditional television, it can not be a difference in scale, but should be clear, fluency, friendship, participation, richness, and can be better than traditional television services. So, in our opinion, the role that Internet TV integration licensees should accomplish is the connection between users and audiovisual services. This is Galaxy's understanding of Internet TV integration licenses and how we should play our role.

thank you all!