Chapter 319 Industry Dilemma
Qin Shaoyan sneered at the "Anti-Quick Broadcast Alliance" and felt that these idiots were messing around. In fact, he was standing and talking without hurting his back.
As of June 30, 2005, the number of domestic Internet users officially exceeded 100 million.
For the Internet industry, this is a rich mine waiting for them to dig out, and crops waiting to be harvested in fertile soil.
In addition, new Internet user groups are growing rapidly every year. This is the best era for entrepreneurship, as there seems to be an endless user group for them to absorb.
Before 2000, as long as you set up a website, you would have users, and the acquisition cost was very low.
After 2000, although large companies that survived the Internet bubble had a tendency to become dominant, thanks to the crazy growth of Internet users, new entrants to the Internet industry still had a lot of living space and opportunities. .
As long as you can find a suitable track, there is no shortage of users.
When there are users, there is data. When there is data, venture capital will follow up, and money will continue to come.
In the vast blue ocean, there are thousands of various Internet companies and websites, a thriving scene.
No entrepreneur thinks that if XX website becomes the number one in the industry, his own website will be unable to survive.
As long as you are active, can attract users, and build data, this is the way to go.
Campus.com is known as the largest social platform in China, with less than 10 million registered users.
As long as there are competitors who are willing to spend money, the campus network will not be able to maintain its advantage.
As for Kuaibo.com, the number one video website, there are only five million online users every day.
Logically speaking, there is not much conflict between the more than 100 new video websites and Qvod.com. In addition to the users of Qvodvo.com, there are a large number of netizens waiting for them to tap.
However, Tudou and the others really felt that they would not be able to survive.
Many entrepreneurs are excited about the emergence of video websites.
YouTube is being competed for by three Internet giants. Within three months of its establishment, Qvod.com has been valued at US$300 million. Every piece of good news deeply stimulates Internet entrepreneurs.
A large group of young people with childish faces, with the momentum of newborn calves who are not afraid of tigers, shouted "the future Internet is the era of video" and plunged into this blue ocean track.
After getting involved, what the entrepreneurs are waiting for is not swimming like a fish in the water, but the confusion of hitting their heads on the rocks on the seabed.
Although some entrepreneurs were fully prepared, they never expected that the first bottleneck they encountered was funding.
When the video website started, everyone was aiming to subvert the four major portals.
After actually doing it, I found that the bandwidth occupied by the text and photos of beautiful women in the four major portals is very small, but the bandwidth of the video is huge.
No one expected that bandwidth, servers, and traffic were so expensive that they were so expensive that even user growth became a burden.
At that time, most video websites were short films of 5 minutes, generally no more than 10 megabytes.
The long video is about 20 minutes long and has dozens of megabytes. This is already the limit of the video website. In an era when the Internet speed is not enough, how can we pay attention to high definition or Blu-ray? Thank God if it can play smoothly.
The model and content of video websites are almost the same. If you grab good content, you can get traffic. Potential problems in the industry were also exposed. After the main content developed from short videos to TV series and movies, the number of users increased and bandwidth traffic increased.
How much does this bandwidth cost?
Kuaibo.com spends two to three million US dollars a month just to buy bandwidth, which is equivalent to investing in a Series A Internet company.
Even if Kuaibo.com, which has a lot of money, has raised so much money, it cannot sustain it for a year.
What about other video websites?
Although they are not as big as Qvod.com, their broadband fees are high, and the money they raised is also small.
After a few months, they were terrified of burning money, and they were worried about how to find investors to provide ammunition every day.
Video websites are like a bottomless pit of funds. The boss of Youku.com once said that money is never enough. Whoever raises funds will be the industry leader.
They were ambitious before. Youku.com and the boss of Liujianfang and Ku6 said, "Whoever among the three of us gets 10 million US dollars in the future will be the boss of this industry."
Seeing that Kuaibo had received tens of millions of US dollars in investment, he changed his mind and said that it takes 100 million US dollars to become the industry leader. If Qin Shaoyan heard this, he would laugh at him for being too conservative.
With regard to the level of money burning in the video industry, even Zhongguancun cannot rank first with US$100 million.
Because the video industry is burning so much money, venture capital investors are hesitant.
Other websites can burn millions of dollars and still be successful, and they can also be ranked in the same field.
As for the video website, millions of dollars were gone without even a sound, like a black hole.
Video websites require too much investment, and the returns are low. The advertising fees earned are not even enough to fill the gap between your teeth.
In addition, in the field of video websites, there is already a benchmark like Qvod.com, and venture capital investors also have reference.
You can roughly estimate how much it will cost to reach or exceed Qvod.com.
This amount of funds must be at least several hundred million US dollars.
What can I do with these hundreds of millions of dollars, but invest them in video websites?
Besides, you video websites are far behind others. You have to survive or not, you have content but not content, you have quality but not quality. How can you compete with Qvod.com?
The model and content of today’s video websites are almost the same. The videos in them are all pirated from each other, and everyone understands each other tacitly.
In this case, everyone has reached a consensus that if you can grab good content, you can get traffic, and if you have traffic, you will win.
To put it bluntly, it means being able to make differences. Your video website can be different from other websites. If you have good video content, you will be ahead of others.
Why is Qvod.com so popular? Because it has too much and rich content, and its update speed beats all peers.
Other websites find pirated film and television resources from the Internet, and then upload them to the website. This behavior is almost a common phenomenon in the industry. Most websites have a group of dedicated employees to do this, in the name of the user. Upload pirated resources.
Because it is a pirated resource, the picture quality itself is not very good. Coupled with the compression of the website, the picture quality can only be said to be watchable.
Anyway, it doesn’t cost any money, just a bicycle.
But Qvod.com is different.
Kuaibo.com is purchasing a large amount of copyrights. After purchasing the copyrights, you will get genuine resources, which are all in high-definition quality. Although they are compressed when uploaded to the website, at least the quality is much better than other websites. cut.
What makes other colleagues even more confused is that your domestic film and television drama resources are of good quality, but why are the videos transferred from abroad also of such good quality?
The secret is that Qin Shaoyan is not only the boss of Qvod.com, he is also a shareholder of YouTube. He can directly obtain video resources from YouTube's backend.
Every week, YouTube will send people with several large-capacity hard drives to fly from the United States to Beijing to hand over the newly collected resources to Qvod.com.
Qvod.com gets all the first-hand resources. After sorting them out, they give them to the subtitle team to translate them casually, add subtitles and upload them to the website.
So Qvod.com will update a large amount of video content every week, from domestic to foreign countries, with rich resources that beat peers around the world.
The updates are fast and plentiful, and the picture quality is clearer than other websites. Users will naturally go to Qvod.com to watch it.
In this case, how can other video websites compete with Qvod.com?
If you go to Qvod.com and steal its resources, you will be busy for a while, and the quality will be even lower if the definition is compressed.
From quantity to quality to update speed, they are crushed in all aspects.
How do you ask other colleagues to fight?
You can’t fight at all, okay?
Why do Tudou and Youku want to form the "Anti-Quabo Alliance"? Because if they don't make some movement, they will really die.
With Qvod.com, they can only pick up the leftovers. The number of users seems to be increasing, but even more are being lost.
Coupled with the financial pressure to purchase bandwidth, they have been breathless.
If they can no longer find investment, many websites will not survive until the end of the year.
(End of this chapter)