Top of the big era

This is the first time that Ziweixing International Department has hosted so many senior executives from the headquarters.

However, the big screen in the conference room seemed to be malfunctioning.

Urgent repair is required.

Zhou Buqi did not pursue formalism, but smiled to appease them, saying that accidents were inevitable and there was no need to worry. If the conference room doesn't work, just go to the office, move some chairs, and sit around them.

It's not a serious financial meeting. The main thing is to unify the thinking and explain the truth clearly.

Then, a group of more than a dozen people actually went to Liu Qing's office.

There was no room to sit on the sofa, so seven or eight chairs were brought in. Everyone gathered around the two rows of sofas, drinking tea and chatting, a bit like a tea party.

The atmosphere is very relaxed.

However, the topic to be discussed is anything but easy.

Zhou Buqi got straight to the point and stated today's topic first, "I'm calling everyone here, mainly to talk about whether to acquire Duowan. And some conceptual thoughts derived from it."

Guo Pengfei also got straight to the point, "I think we should acquire it!"

Zhou Buqi almost died of anger.

Depend on!

This bastard kid had communicated with him in advance and asked him to support him, but he didn't expect that he would turn against him.

Guo Pengfei said: "There are three main reasons for the acquisition. First, YY is a very successful social software, second only to QQ and Helo in China. Second, YY is a successful demonstration of the 'Magic Reform Helo' plan. It has developed rapidly with the help of Helo's traffic. The acquisition of YY can encourage more Helo developers. Thirdly, I am optimistic about the live broadcast industry."

Zhang Yiming said: "From a business perspective, the acquisition of YY is of great value to Ziweixing. However, business must obey strategy, and strategy must obey corporate philosophy. We still have to look at this case from a higher perspective."

Zhou Buqi waved his hand, "Let's talk business first. I'm not optimistic about the live broadcast industry because there is no clear profit model. Video live broadcast has been developing in Europe, America, Korea and Japan for several years. It can be predicted that this industry will definitely expand in the next few years. It has developed on a large scale in China, just like the popular video websites now."

Liu Qing had talked to him once before, so she was able to follow his train of thought and nodded gently, "Well, the live video model is actually not fundamentally different from the video website."

"ah?"

This somewhat surprised Zhang Yiming, Ji Zian and others, because she did not hold such a view during previous exchanges.

Zhou Buqi smiled and said: "We don't build a video website because the national conditions are not good. In the United States, Hulu can make considerable profits a year just by relying on advertising fees. There are two major reasons. One is that behind Hulu is a Hollywood giant , you can get better copyright terms. The second reason is that American users are accustomed to paying for services, can enjoy the free film and television content provided by Hulu, and have a higher tolerance for advertising."

Guo Pengfei nodded, "After Kuliu was acquired by Shanda, there was more profit pressure. A lot of advertising was added. Because of the increase in advertising, Kuliu fell behind, from the first echelon to the second echelon. Users don’t like ads.”

Zhou Buqi waved his hand, "Actually, this is just a superficial phenomenon. Although Hulu can make money now, the advertising model is destined not to be the future of the streaming media industry. The Internet does have free attributes, but the premise is that the advertising generated by the free traffic The income can meet operating expenses. With this meager advertising fee, Youku and Tudou cannot survive, and neither can Hulu! In the final analysis, there is only one way for the future of streaming media, and it is Netflix’s way.”

This is a group meeting.

However, Zhou Buqi cannot say it alone. If he said it alone, this would be an "order" from top to bottom. If it is an order every time, over time it will destroy the partnership mentality of this business community.

Executives are different from rank-and-file employees.

Executives should not just follow orders, but start from the heart and do what they want to do. Just like the case of Ziweixing's acquisition of YY, if there are differences, sit down and discuss it and explain the logic clearly. Instead of telling them coldly that they can't buy it, there is no explanation at all as to why they can't buy it.

This makes it difficult for senior executives to understand Boss Zhou's corporate ideas well, and it is even less possible for them to do something independently along his ideas. In the long run, they will lose their subjective initiative and become administrative zombies.

This is actually the disadvantage of dictatorship.

For enterprises, they must make good use of the benefits brought by CEO dictatorship and find ways to avoid the disadvantages brought by dictatorship. The best way is for everyone to sit down and discuss together regularly. It's okay if you have doubts and differences. Everyone can speak clearly and openly, tell facts and reason, and move forward in the right direction together.

However, there were more than a dozen people at this time.

If everyone spoke casually, there would be chaos. Therefore, there is also a meeting order, and the people who can directly participate in the discussion with Zhou Buqi when he speaks are Zhang Yiming, Guo Pengfei, He Yang and others. If anyone else wants to speak, they must raise their hands first.

Guo Pengfei agreed with Boss Zhou's words, "This has to do with the advertising sales model, which is based on exposure and clicks."

"Yes, let's get to the root!" Zhou Buqi gave him a thumbs up, "In the final analysis, it has to do with the industry model. The advertising industry is very large, but the advertising model is based on volume. For example, Youku's A 120-minute movie will bring huge operating costs and broadband costs to Youku. However, during the movie viewing process, the user only clicked the web page once and watched the opening advertisement once. If it is a song What about the MV video of the song? The 4-minute content is also one click and one advertisement, and the revenue is equivalent to that of a 120-minute long movie. This is the industry paradox between the long video model and the advertising model!"

A 4-minute MV can bring one advertising fee; a 120-minute movie can also bring one advertising fee.

Advertising revenue is the same for both.

But the operating costs are completely different, dozens of times different!

This is the biggest dilemma of the long video industry.

Zhou Buqi continued: "Short videos and advertisements are matched. I believe that when the short video industry starts to develop in the future, it can completely rely on the 'free + advertising' model. But long videos will not work, and long videos and advertising models will not work. Coordination, paid membership is the only way to go, like Netflix."

Everyone is pessimistic about this.

Ji Zian asked: "Can the subscription model be developed in China?"

Zhou Buqi said: "Life has become richer, people have money, and the control of piracy has become stricter. We must transform in this direction. However, it is still elusive to truly turn losses into profits. There are too many video websites. , the copyright price is too high, and the membership fee cannot be too high. This is an industry dilemma."

There are too many video websites, which leads to fierce competition.

Competition is good.

Many Internet products in Japan are doing very poorly. The big reason is the lack of competition, which leads to a lack of ambition. Anyway, if you can make money steadily, why do you need to constantly update and improve service standards for users? Whether users like it or not, there would be no store without this village.

But there’s too much competition, and it’s fucked up.

Such is the dilemma of video websites.

There are so many video websites in China. Not only major Internet companies have their own video websites, but many TV stations have also transformed into video websites.

The result is that all parties are competing for the copyright of film and television content, which has caused price gouging and copyright prices are getting higher and higher.

As a result, the website's expenses are too high and it cannot make ends meet.

The United States actually has a similar dilemma.

Therefore, Netflix wants to make its own dramas to avoid purchasing copyrights.

But the problem came again.

Netflix can make its own dramas and make whatever it wants. It can even make many large-scale dramas in order to attract attention and attract users. Many dramas are like small movies.

This is the key to Netflix's success.

This is not possible in China, not to mention the large scale, vague values, profound themes, tainted artists, politics, military, police, ethnic minorities, etc.

Many video websites passed the first review when the project was established. After the self-made dramas were filmed, they were killed in the second and third reviews, causing huge losses.

There is no way, this level of self-made drama is too difficult.

It is safer to just spend exorbitant prices to purchase film and television content that has been broadcast on TV stations.

A similar situation exists in the live broadcast industry.

Zhou Buqi said: "Live video broadcasts are also long videos, which is contrary to the external advertising model. As for some built-in advertisements endorsed by anchors during the live broadcast, it is difficult to share them with the platform. Only relying on users' gifts and rewards, It’s difficult to implement the model. That’s not all. The most difficult thing is censorship. Korean video websites have been developing for many years and are doing very well. Who has paid attention to them?”

Many people raised their hands.

Zhou Buqi pointed at Pei Yao, "Mr. Pei, can you tell me?"

Pei Yao pursed her lips and smiled, and then said solemnly: "There are two main types of live broadcasting industry in South Korea, one is game live broadcasting, and the other is beauty live broadcasting. Neither of these two categories is very popular in the country. The survival of the game industry in the country There is a lot of pressure. If game live broadcasts really start, they will inevitably be strictly controlled. The live broadcasts of beautiful women will be even more serious. Those girls live broadcasts... many times they have to play some marginal games, and even have some hints in language and body movements. "

Zhou Buqi nodded, "Yes, the live broadcast industry is real-time, so it is even more uncontrollable. Not only is the profit model unclear, but it also faces heavy regulatory risks."

When doing business in China, the biggest risk does not come from the market, but from the regulatory level.

When a company reaches the scale of Ziweixing, all market problems can be easily solved.

If you can beat it, just beat it. If you can't beat it, just buy it at a high price.

But once regulatory issues arise, it will cause violent fluctuations in stock prices. Even if Ziweixing bought YY, YY's business would be insignificant in a large group like Ziweixing.

For such a small business, the entire group must bear regulatory risks, which is too unfair to other core businesses.

We should still live separately.

Release some industries that are not related to Ziweixing's core business and let them go it alone. Whether it's life or death, it's up to God.