Video entertainment: the dream of ubiquitous profit


"Internet profit models are being greatly enriched." Recently, in the CCW Research "China Web2.0 Study" released the General Assembly, the number of Internet companies to people described a dream of his own profit. Especially reporters access to some of the video entertainment site, its painted ad is no longer profitable, while more traditional industries by including cooperation with the many services revenue, and even businesses have been profitable from the beginning.

All along, the Chinese Internet company's revenue model is still relatively simple, most companies out of business model can be described remains at the ad level. But with more rich content and services, everything is starting to change. Lei-off Chinese president Lvchun Wei clear: "Internet companies should change the business model and revenue structure has to be adjusted."

From these video entertainment sites, advertising is still the main income of its present. Qu Xiaodong, General Manager of CCW Research said: "As an Internet company, if you want to compete in the advertising market to get a place, it must be a breakthrough in two areas, on the one hand is the site a high enough profile and have some scale views, on the other hand is the site characteristics affect the unity of the crowd, forming distinct sub-population latitude, while the crowd after the breakdown of good advertising value, or a unified consumer interest. "Clearly, Green entertainment, Lei off China, podcasts China, Tudou, etc. site is not well known, but their are some preferences for video entertainment crowd, the characteristics of this unity is expected by the bullish for advertisers.

However, the real development of the Internet business model should be the future of revenue through services, which will be more video entertainment site hopes of a breakthrough in services. In general, in order to profit through service, Internet services companies are a breed apart, that is, their services have a competitive advantage, while users of such services are indeed necessary, to give Internet users to create high-value services .

In this regard, a number of video entertainment site has obvious advantages. For example, Green entertainment to clients as the main form, advocating non-authoritative entertainment, try to complete by the user self-creation, self-sharing, self-evaluation approach, to provide users with a fully democratic platform to share video content. Currently, its products have been covered to the Web, the Internet client, SMS, WAP, JAVA and other platforms. In addition, the Lei-off China in April this year after the revision, the user submits the work is divided into 20 thematic channels and provide more open space and more powerful, better meet the user for video, audio, pictures and other documents storage requirements.

Appears in Lvchun Wei, Lei-off of China's profit came mainly from advertising, value-added services, and ultimately integrated platform for video content sold to traditional television media. The Youth Entertainment now through advertising revenue or profit, the next step plan to have more mobile phone users to watch a variety of video content, of course, this is a paid service.

Web2.0 concepts in support, the value can be paid by the user to accept the birth of-service continue to enrich the Internet industry's business model. However, these profit models into the real profit to be very difficult. CCW Research's survey shows that 71.4% of Internet users have heard of the term Web2.0, but to truly understand the significance of only 1.9%, more than 80% of Internet users basically do not know what. High-visibility, low awareness, explain the promotion is merely just a surface form.