The online video industry in 2014 can be described as “high-profile luxuryâ€. The frequent dynamics of investment in mergers and acquisitions and the establishment of film companies have increased the popularity of the industry. The 6th China Network Audiovisual Industry Forum held in Shanghai on the 4th is like at the end of the year. A year-end summary was made for the online video industry. The successful experience of online self-produced dramas such as “The Year of the haste†will become an accelerator for the Internet video industry to subvert traditional film and television dramas.
Homemade drama will expand profit model
At the scene, the reporter saw that this industry forum, sponsored by the State Administration of Press, Publication, Radio, Film and Television and the Shanghai Municipal People's Government, sponsored by the Department of Network of the General Administration of Administration of China, the Shanghai Municipal Bureau of Culture, Radio, Film and Television, and supported by the China (Shanghai) Network Audiovisual Industry Base, attracts high popularity. , just like a microcosm of the high-profile advances in the online video industry in 2014, made it one of the core topics discussed at the conference.
Statistics support the popularity of this industry. According to the latest release of China Internet Video Market Monitoring Report for the third quarter of 2014 by Analysys International, online video market advertising revenue for the quarter was 4.67 billion yuan, an increase of 13.7% from the previous quarter and a year-on-year increase of 43.6%. Youku Tudou, iQiyi PPS, and Sohu The top three video advertising revenue.
You Detao Group President Liu Dele said with emotion at the meeting that the cost of buying a hit TV drama on the site has been fired to one or two billion yuan. After buying it, it will be played for a week or so. "It's too expensive. It's like using planes to pull coal." "Video sites are trying to change this embarrassing situation of buying at a high price and selling at a low price."
Taking Sohu video production and Zhang Chaoyang’s 16-episode Internet drama “Hurry That Year†as an example, the total playing capacity of Sohu video has reached 770 million.
Yang Weidong, president of Tudou.com, told the reporter of “First Financial Daily†at the conference that in 2015 Tudou will make full investment in variety shows and online dramas. The video website will infiltrate homemade content from all aspects of investment, cast selection and producer supervision. Is to ensure quality.
"If you say that the premium cost for quality TV dramas is now 5 million yuan, does it cost 5 million to buy, or spend 5 million to do it yourself? The result is obvious." Yang Weidong said that the "midnight taxi" network drama like potato has already been produced. There are television stations to buy copyrights.
Analyst Pang Yiming of Analysys International believes that the return on investment of self-made dramas is generally higher than that of buying copyrights. However, from a digital point of view, the cost of copyright for the next hit series is as high as 100 million yuan, and the input cost of a self-produced drama is More than 100,000 yuan per set. In addition, the profitability of copyright dramas is dominated by patch advertisements, and self-produced content can be expanded by multiple titles, implants, and derivatives.
However, the improvement of users' tastes has also led to a process of increasing the cost of production. The investment in the TV drama version of “The Year of the haste†has reached as much as 1 million yuan, and has entered the cost category of TV dramas. However, according to Yang Weidong, at present, the homemade content on the Tudou.com website is profitable. Take a piece of music to watch the homemade program as an example. Potato fans are willing to use a pay vote to determine the ranking of Korean pop music.
Internet Investing Company Investment Logic
2014 was the tenth anniversary of China's Internet audiovisual industry. Internet companies established film and television companies to expand investment and production in the upper reaches of the film, becoming a landmark event in the industry.
In March, Alibaba changed its name to Ali Pictures after acquiring Cultural China; in July, Iqiyi established Iqiyi Film Company, followed by a joint venture with Huace Film and Television; in August, Youku Potato Group established the “One Shadow Industry "company, with O + O (online and offline integration) way to do entertainment platform, and so on.
So what are the appeals of these newly formed film companies? In the field of film production and distribution that has matured for 20 years, what are the advantages of Internet companies?
"It will not be a pure financial investment, because it does not help the video platform." Iggy Arts Film President Li Yansong said in an interview with the reporter on the 4th, Ikie Photographic Investment aims to take online copyright and downstream Game IP, combined with movie promotion, distribution, derivatives, e-commerce, etc., finally linked the value of this industry chain through movie tickets.
Li Yansong said that starting from Jiang Wenxin's film “I Got It One Step†from iQIYI's investment product, IGI Artists will use this logic to make movies in the future. It is important to accumulate users through this process and allow users to stay in love. On the art platform. After the establishment of platform loyalty, online payment will naturally follow. For instance, Iqiyi now offers first-line movies for paying users at a monthly subscription price of RMB 19.8.
In the eyes of the online video industry, the users on the platform and the audience in the cinema are entirely two concepts. The viewer left the theater after watching the movie, the value does not continue to extend, and the platform can give the user a “portrait†to show Short videos, previews and other forms of advertising for the movie, through the accumulation of data behind the user to grasp the trend of audio-visual.
In the words of Zhui Long, the chief executive of Heyi Cinema, the film industry model in the future may be that video sites find fans for movies and then make movies with fans. In fact, behind this is big data and custom movies.
The content is the core and the content is king. This concept was agreed by many people in the industry at the meeting. However, the genetic advantages of the Internet lie in technology, operations, and innovative thinking. How to obtain high-quality content more cost-effectively and how to direct film distribution through technical means? This will be an opportunity for internet movie companies.
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