Abstract: Video websites have gradually started to pay mode. Streaming media music websites also saw the light. Recently, a paper notice from the National Copyright Administration made the music industry start to shake. The notice stated that the online music service providers who still continue to disseminate unauthorized music works after July 31, 2015 will be punished according to law.


After the financial crisis, US stocks entered a bull market which lasted for 6 and a half years. During this period, media stocks have been dominant. The S&P 500 Media Index, which tracks 15 media companies, achieved an average annual return of over 33%, and the media sector has even surpassed technology and biological stocks. However, in the recent past, traditional media stocks have become the object of the market's rush to sell. At the same time, emerging online paid digital streaming media, represented by Netflix, has risen.

Turning its attention to the domestic market, the National Copyright Administration of the People's Republic of China has recently rectified the online music market and stipulated that network music service providers should all unauthorised music productions before July 31. With the gradual improvement of domestic copyright policy and awareness of public copyright, streaming media based on film and music and music have ushered in the era of payment. The era of pan-entertainment copyright is gradually approaching. To this end, there have been several listed companies in advance of the deployment.

In the past two years, a serial drama house from the other side of the ocean has been widely sought after by the domestic audience. More fire than the house of cards is the price of its production company, Netflix. The reporter noted that Netflix's stock price has risen nearly 150% since the beginning of this year, and the cumulative increase in the past three years has reached 1000%.

In February 2013, Netflix took the first quarter of the world's premiere solitaire house on the website, and broadcasted it in the following two seasons last year and this year. While flying away from the hearts of Chinese viewers, Nei Fei has also heated the domestic online video industry.

However, an industry source pointed out that the US audience spend 7.99 US dollars a month to see the card house, and after the introduction of copyright in domestic video sites, the domestic audience is free to see.

However, he also stated that, from the current domestic market situation, paid video and audio are the trend of the times, coupled with the National Copyright Administration’s recent reorganization of the online music market, a pan-entertainment copyright era covering video, music, and other fields has come, and paid video and audio stations have arrived. tuyere.

Paying mode becomes mainstream

Free viewing and free listening are things that Chinese consumers are accustomed to, but the door seems to be slowly closing. After the commercial model of video websites succeeded in the advertising model, the style of pay-per-view was gradually being introduced, and various websites launched pricing policies for some contents.

Recently, in the iQIYI VIP Member Strategy Conference, IGI Artist CEO Gong Yu revealed that as of June 15, 2015, the company's monthly paid VIP membership has reached 5.017 million, an increase of 765 percent. Although iQIYI's 500 million independent users accounted for only 1% of the members, there is a huge amount of room for conversion. Gong Yu revealed that 70% of the monthly first-time users will choose to continue renewing their payments, which shows that members' payment income should not be underestimated.

According to Gong Yu, with the increasingly rich content and services of video websites and the increasing convenience of online payment, “the enthusiasm of the video payment service has arrived”.

The reporter noticed that in June of this year Iqiyi's self-produced drama Tomb Notes took a differentiated broadcasting - iQiyi member users can see all the contents of the Tomb Notes in advance, and do not have to bear the pain of waiting for a weekly update. To the surprise of Iqiyi, the tomb notes went live on the same day, and the 5-minute playback request reached 160 million times. The iQiyi server was on the same day.

In response, Yang Xianghua, senior vice president of iQiyi, revealed to the media that the drama had broken 100 million in traffic in 12 hours, and the number of iQiyi VIP members had achieved a 100% increase in the week-on-week.

The video site gradually opened the payment mode, and streaming media music sites also saw the dawn. Recently, a paper notice from the National Copyright Administration made the music industry start to shake. The notice stated that the online music service providers who still continue to disseminate unauthorized music works after July 31, 2015 will be punished according to law.

It is understood that this move is a preparatory stage for the promotion of paid music downloads. The transition period will be two to three months, and there will be even greater moves next. After the three-month transition period, network music service providers need to come up with a fee plan. At present, many online music websites have unlicensed music.

Public copyright awareness is the main obstacle

An insider who has business dealings with major websites told reporters that in addition to the company’s own profit demands, the basis for paid viewing and listening is copyright policy and public awareness of copyright. Chinese companies are allowing Chinese consumers who are used to eating free meals. Don't do enough to save money. The US market with strong copyright awareness, such as online music station Pandora, Netflix for a world of card houses, and the like, have long established a set of sticky user charging models and have also received approval from the capital market.

“At present, there are mainly three kinds of payment models for domestic video websites.” According to industry insiders, the first is the purchase of top-level copyrights like Sohu Video, which is mainly the copyright content of popular dramas and ace variety shows; the second is Tencent’s introduction of foreign premium TV dramas. Paid, such as the game of HBO's production of power, newsroom, brother company, Atlantic Empire and many other award-winning drama series; third, self-made drama.

In order to enhance the user's stickiness, iQiyi charges users through exclusive home-made network dramas, such as home-made network show wonderful talks, talk show Xiao Song Qi talks, TV drama psychological crime, tomb notes, etc., hoping to use super IP (IntelectualProperty: intellectual property) TV series And fan effect led to the growth of the number of members.

Another giant, Alibaba.com, who recently joined the video fierce battle, told the media that it plans to launch Tmall's home garden line TBO. 90% of the copyright content will adopt a charging model. The person in charge of the Alibaba Digital Entertainment Group stated that the company’s goal is to become China’s Netflix.

However, the reporter noted that according to the online video quarterly data released by iResearch, advertising is still the most important profit model in China's online video market. In the first quarter of 2015, video value-added services only accounted for 8.6% of total revenue. The survey results of "Pay Willingness for Online Cinema Films in 2014" released by the third-party research organization Analyst think-tank also showed that only 26% of the audience accepted the price range from RMB 1 to RMB 3 to watch a film, and more than 40% The viewer chooses "If it pays, he will not buy it."


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