In 2015, the focus of competition for major video sites has extended from content self-made to PGC (professional production content).
This year betting Bao PGC business, in addition to Youku Tudou, Sohu, there are iQiyi. According to the iQIYI staff, currently the company's internal and video-related business lines are equipped with PGC staff. In addition to personalized channels, iQiyi will also jointly develop PGC services with film and television distribution agencies and TV stations.
In March 2015, Tencent Video teamed up with 100 PGC partners to jointly publish the “Thriller Plan†and push this boom to the top. Tencent video editor Wang Juan said in an interview with the Variety Press that Tencent Video will fully support excellent original authors in terms of content source IP, scripts, various resources and funding, etc., and sign and support 100 quality projects. , Build the largest original video platform in the entire network.
According to Luo Jiangchun, vice president of BesTV and popular network CEO, PGC's open platform and differentiated competition is one of the core businesses of this year.
All these, all revealed a message: 2015 is a key year for the development of PGC.
Why PGC suddenly became popular
For Tencent video development PGC services, Wang Juan's explanation is, "First from the data point of view, the current PGC contribution of the flow, accounting for 10% of the entire platform; second from the user's habits, UGC (user-generated content) and PGC The content produced has great Internet charm and characteristics, is more easily disseminated, and has a very strong vitality. After 90's, especially after the 95's, the love for this type of content can be described as fanaticism. In order to comply with this social network trend, Tencent Video will adopt a PGC service this year. Raising to platform height has become an important core strategy."
It is not difficult to find out why the PGC suddenly became popular this year. In foreign countries, YouTube, a video site represented by UGC, has been more influential than video sites such as Hulu, Netfix and other copyright procurement models. By the end of 2014, about one billion users worldwide watched videos on YouTube for more than 300 million hours each day. Star content providers on YouTube have annual revenues of up to tens of millions of dollars.
In contrast, in the field of video in China, the Hulu model has long been used, and business operations are not much different from traditional TV stations. Purchasing copyrighted content produced by professional film and television organizations and relying on advertising revenue to benefit. However, the UGC model is always in a weak position and lacks an industry leader like YouTube. Domestic video websites have transitioned from the original "user sharing" model (short video) to the "copyrighted purchasing" model (long video). In the overall competition, the "Internet thinking" of "monopoly and making money again" has constantly pushed the threshold of the industry. Soaring copyright costs and bandwidth costs have become two big obstacles to the profitability of video websites.
After the industry structure of the video website has gradually stabilized, the profit demand is more pressing, and the purely copyright procurement model is obviously difficult to achieve. Only in the alternative, looking for new profit support points, so in 2014 the major video sites began to force content self-control. But it is clear that homemade content is limited after all. Zhang Chaoyang once said: "UGC is a user's native strength. If there is no UGC, it is to race with the atomic bomb."
Compared to home-made content and copyright purchases, PGC's greatest advantage is that video sites do not need to invest a lot of money to make productions, and they do not need to pay copyright fees to PGC content producers. Instead, they share advertising revenues with PGC partners in a divided manner.
PGC evolved from UGC, and the successful production team is often the leader of UGC. For example, the left-hand man who plans the real 2 on the tip of the tongue is currently the creator and CEO of Chase Media. The short video he planned to produce, despite only 12 minutes, was related to food safety issues such as cooking oil, expired flour, and roast meat, plus a high degree of imitation on China at the tip of the tongue. After two months on the line, he was in Tencent. The number of hits on the video is 160 million times.
Most PGC teams or producers have similar experience with Zuo Yu. Because of good ideas, ideas, or relying on hobbies and understandings in a certain field, such as game explanations, beauty makeup, etc., content is continuously produced, and popularity and number of fans are gradually accumulated. Once the premium content is approved by the user, with mature IP and production experience, it can be transformed into an independent production team or producer (PGC) to support the development of the company's operations through the advertising revenue of the video platform.
With popular movies and TV dramas from the stars such as your rumors becoming popular, more and more PGC content such as flying saucers, crossings, Wang Nima, and runaway cartoons have swept the Internet.
At the same time, the rapid growth of mobile devices, the popularity of 4G networks, and the social networking of young people have provided a solid foundation for short video (UCG/PGC) dissemination and detonation. Fragmentation viewing is the main feature of the mobile Internet era. The graphic and graphic arts can no longer meet the viewing needs of the "thumb family". Video is the only way to satisfy the billions of mobile phone users' desire for fragmented reading. Video capture thresholds are rapidly declining, creating endless opportunities for video production, and the best time for content producers has arrived.
Different development strategies
"In the next 2-3 years, net content will exceed 50%, and even after 6 years, it will exceed 60%." Youku Tutu, vice president of Youku potatoes, judges, "At present, Youku Tudou users upload a huge amount of content, an average of more than 100,000 Article, but it is more decentralized, insufficiently aggregated, persistent, and capable of generating millions of hits, and the high-quality PGC team is relatively scarce."
According to data provided by Youku Tudou, the platform's PGC content growth rate was more than 10 times in 2014, and there were two PGC channels playing over one billion times, and users were broken into millions.
Where does the high-quality PGC program content come from? Lu Fanxi said, “All content cooperation is based on the principle of respecting originality and encouraging originality.†For the development of PGC business, Youku Tudou proposes the concept of “joining achievements and sharing happiness†and letting more of it. PGC content partners are involved to jointly establish and improve the PGC ecosystem.
Youku Weiming stated that Youku has five content sources: copyright purchase, Youku homemade, UGC, PGC, and joint production. When talking about the relationship between PGC and homemade content, Wei Ming said that if a homemade content is not as good as a PGC program, Youku will withdraw its own content and leave PGC content. This is Youku's platform thinking and fully respecting partners.
Tencent's video launches the "Thriller Plan", which will be signed in 2015 and will focus on supporting 100 high-quality PGC projects. “The original UGC center inside Tencent will be upgraded to the V+ original center. We have made adjustments in the internal division of labor,†Wang Juan said.
First, set up an original excavation and support team. At present, there are eight categories of Tencent video animation, music, film and television, sports, etc., will set up an excavation team under each category. In addition, WeChat, Hand Q, video and other products will be opened up in the future so as to monitor changes in the overall social index. "Once a hot spot in a social network is discovered, the support team will help the partner to enter the support plan." Wang Juan told the Variety.
Second, a special incubation team is set up to jointly incubate projects that have entered the support planning. If necessary, it will not only invest resources, but will also invest funds. Tencent's video will become a joint product or a strategic partnership and a series of follow-up developments. In the operation stage, the project helps connect the channels of related categories, allowing the animation project to return to the animation channel, and the music project to enter the music platform, including video music performance, QQ music and so on.
Wang Juan believes that Tencent’s video is evolving from a broadcasting platform to an industrial ecosystem. In addition to broadcasting, it is necessary to establish upstream and downstream industrial chains. “In the upstream industry, we are a brand new role, but we have the Internet blood. In addition to copyright procurement content, we will proceed from user needs and do Internet-based PGC content.â€
Luo Jiangchun revealed that the open platform of the popular network will be operated together with the traditional media. Popularity will open channels, users, advertisements, and interactive functions to partners, allowing them to operate independently. The popular network will take more role in service and technical support. . For example, helping traditional television stations to create their own "mango TV", instead of just selling copyright as a way of realizing content.
After Brexit increased its holding of the popular network to become an absolute controlling shareholder, popular network has more radio and television genes. "The advantage of the popular network lies in the fact that we have more than 700 million users accumulated over a decade, generating high revenues through high-traffic users, and ultimately achieving separation from traditional media and brand organizations. When we cooperate with traditional media, we will ensure their revenue. If they fail to meet their demands, cooperation will not last long.Our open platform model is more like Tmall. In the background, we can see the number of users and advertisements of partners. Popular open platforms help traditional media and brand agencies to obtain more. With more new media operating capabilities, it is possible to realise traffic flow, said Luo Jiangchun.
Video is still the longest-running application on the Internet. Zhang Chaoyang said that the popularity of Wi-Fi and 4G will give rise to a broader development prospect of mobile short video, and China’s PGC is in an explosive trend. Sohu Video will promote the growth of PGC after the acquisition of 56. It will create a better business system for music producers and video producers, and allow more teams to produce and share premium content.
It is not difficult to see that major video websites have more emphasis on the concept of benign “ecosystem†and further extend the upstream and downstream of the industrial chain. For video websites, PGC's business model has obvious advantages: relatively low initial investment, viral content, and rapid hot spots. At the same time, this part of the content is exactly what traditional TV stations lack. Video sites have inherent advantages.
However, the number of high-quality PGC production teams is limited. Once the major video sites begin to take over the beach, a new round of PGC resource fights will be staged. For content producers, it is undoubtedly good news. Currently, Detective Di Renjie, produced by Wanhe Tianyi, is broadcasting on Youku Tudou and Tencent Video. “On the two platforms, the content is the same except for different advertisements.†Wan He, founder and CEO of Vanke Tianyi, told reporters. This shows that high-quality PGC providers already have more bargaining power in the process of cooperation with video sites.
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