On the evening of May 18, Hua Digital Media officially announced that it is currently negotiating on the entry of Netflix into China and that it has not yet signed any written cooperation. The author believes that if Netflix enters China, it will have five major impacts on the situation of China's OTT.
First, the unique way of "Human TV and self-made and introduction of American dramas" by Hua Digital TV, to break the trend of mango TV alone?
In 2014, Mango TV launched a solo broadcast strategy and became a sensation in the OTT community. “Joy Sunshine†president Zhang Ruobo announced at the 2015 Mango TV Investment Conference that Mango TV will fully launch its solo broadcasting strategy in 2015. The entire network will broadcast all the strongest contents of Hunan Satellite TV, including the Happy Camp of classic columns, and the daily improvement. Where to go, I am a singer, etc. The market value exceeds 1 billion.
Not only on the brand, Mango TV has also made great progress in data traffic. Affected by the single-play strategy, Mango TV has seen a significant increase in 2014. Its ranking of traffic in Chinese websites has soared from the previous 500 to 104. In addition, compared with commercial video websites, including the national network television station CNTV, the key indicators of the Mango TV website are very prominent. In respect of the number of visits, the duration of the website, Mango TV is higher than Youku, Tudou, iQIYI, LeTV. Net, PPTV, CNTV, etc., and its website defect rate is lower than the selected sample.
The same as the Department of Broadcasting and Television's "rich second generation", China Digital Media's Hua Digital TV network brand did not play hot Mango TV. Hua Digital TV Network is a comprehensive video website of Hua Digital Media Holdings Limited. Hua Digital TV network serves the users of the entire network. It is a streaming media website that focuses on TV live broadcasts and media boutiques, as well as high quality movie and television dramas and various excellent video clips.
In fact, Hua Digital Media has injected a lot of effort into the TV network in China in the past two years. Prior to investing heavily in shooting the painting 2, Jing Zhong Yue Fei and other influential and box office appeal of the film and television works, but the brand has not been up.
Huadian TV Network has played a natural advantage of integration of three screens. With its unique quality content and strong strategic cooperation, it has made great strides in the first camp of China's video websites.
From the Internet camp's video site, Mango TV has the advantage of broadcasting alone, and China TV Network is not far behind, introducing US dramas to improve the overall content layout.
Second, strong foreign companies enter China, boosting Chinese OTT's early entry into Internet TV +
At the just-concluded ICIF, Huada said that the establishment of the "Hisense China Internet TV Joint Studio" has created a new "Internet+" model for the Internet TV industry. In fact, Xiao Bian thinks that this is not enough to start Internet TV + mode. The arrival of China's Internet TV + era should be based on a new business model.
At present, the real business model of China's OTT TV/Internet TV industry has not yet been established. The source of revenue for the entire TV industry chain relies mainly on the licensing of Internet TV integrated broadcast and control platform licensees to charge TV sets and Internet set-top box manufacturers for platform insertion fees. Enterprise customers’ advertising fees and other business and application charging models have not yet matured.
In terms of value-added services, the size of the loyal users of the entire OTT TV/Internet TV business is not sufficient to ensure the normal operation of value-added services, and there are few value-added service providers entering this industry; moreover, China's OTT TV/Internet TV industry chain Still in the construction period, the industrial chain is in a fragmented state, and industry leaders have yet to emerge. This has also affected the development of value-added services.
In the United States, the benefits of upstream and downstream industries in the OTT TV industry have been reasonably distributed. The subscription fee for all contents in one month is about ten dollars. With the formal entry of Netflix into China, Chinese companies can learn some business ways.
In addition to a clear business model, Netflix’s 4K research is also ahead of schedule. This will all help advance China's Internet TV into the Internet TV + mode in advance.
Third, OTT formally entered the construction of the Silk Road Economic Belt, and China's OTT went international.
The construction of the Silk Road Economic Belt is an ambitious national strategic plan. Zhejiang Huaxi has already responded in this regard. In terms of foreign propaganda, how to export domestic culture in a better form is an issue worth exploring. In this strategic cooperation between Hua Shu and Netflix, Hua Shu could make significant contributions if he subsequently implements domestic boutique video programs on the Netflix platform.
Fourth, the SARFT has more right to speak, but the guidelines for China's entry into force must be adjusted
Given that the Chinese government strictly controls Internet content licenses, the cooperation between Netflix and Wada Media is crucial. Similarly, the two sides reached a cooperation, it also said that the SARFT's Internet TV supervision will have more say.
In fact, the Netflix road has gone for many years and has been "dreading" the policy of the General Administration of Administration and has not dared to act rashly. This formal announcement of China’s entry into China was also made after finding Huadian Media, which complied with the policies of the Directorate of General Administration of China, as its partner.
However, the regulatory policy is a “double-edged swordâ€, which can be beneficial to the development of the entire OTT TV/Internet TV industry, to a certain stage of development, and may also hinder the development of the industry.
Netflix's road to China is also a long way to go and it is very difficult to enter China. In fact, this has affected the cooperation between Chinese companies and the international community and has affected the prosperity and development of China's OTT industry.
Therefore, the development to a certain stage, with certain internal and external conditions, the real-time adjustment of the industry's regulatory policy is also imperative. At that time, the industry will certainly gain new and greater development.
Fifth, the video copyright market has become more standardized
Internet television has become one of the most valuable and dynamic areas in China's Internet economy. Video sites are deploying multi-screen services to “occupy†new audiovisual terminals, but at present they have not yet found a healthy business model to recycle their investments or even make money. Users also have multiple channels (legal or illegal) to watch the same programs for free. ) Even paying attention to the viewing strategy portfolio will have a low willingness to pay for OTT TV services. Overall, copyright and business model are the main challenges for OTT TV (especially when providing high-definition, high-quality video content through OTT to multiple screens).
This trend is particularly noticeable - establishing a pragmatic content and copyright management strategy for multi-screen services, with a view to extracting maximum value from the intellectual property portfolio. In a win-win way, we can cooperate with traditional TV program producers to create exclusive, differentiated and premium content, provide differentiated services, increase the number of users and increase user stickiness and loyalty, and gradually emerge from the current business model that mainly depends on advertising profitability. Further develop business models such as paid video and internet value-added services, and finally achieve a double breakthrough in OTT TV's copyright and business model.
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