Twenty-five cable operators will set up joint ventures to handle the introduction and purchase of movie copyrights. Before the establishment of the joint venture company, the revenue sharing ratio between the alliance and cable operators around the country will be 6:4. After the joint venture is established, the revenue share of the upstream program providers, joint venture companies, and cable network companies will be 4:2:4; the cooperation period will be 3 year.
Whether it is for cable TV or the Chinese film industry, the establishment of the "China Television Cinema Union" is a good thing. In the announcement, Gehua Cable stated that it “creates a nationwide cable business allianceâ€, “builds the world’s largest cable television viewing platform, opens up the second largest movie distribution market,†and “establishes professional operating entities and copyright funds, attracting Powered upstream copyright owners and strategic investors exclusively buy out high-quality films.... If we rely on the alliance to achieve these goals, it will be a perfect example of cross-border and industrial chain integration.
Knowing how difficult it is, the cable industry has always been even more so. How to objectively analyze the establishment motives and strategic choices of the TV theater line alliance may be related to whether the key to “doing a good job†can be handled.
The establishment of the coalition forcedly
Why did you say that the establishment of the "China Television Cinema Union" was forced?
First of all, it is the business of video from the Internet. Through the OTT TV (Internet TV) model, video sites that have been able to spend a lot of money can finally get through the distribution channels of television screens. Despite encountering the suppression of the policies of the State Administration of Press, Publication, Radio, Film and Television in 2014, they are based on conditional management under the standardized management of integrated operating licensees. Open access is already a general trend. In addition, video sites that are enjoying video and video copyright purchases, home-made content upgrades, etc., and their accumulated copyrighted audio-visual content, as well as a full range of terminal coverage capabilities, are increasingly dividing users' entertainment spending time. And through the VIP user's paid subscription method, it has slowly and profoundly changed the audiovisual consumption habits of the new generation of users. The latter is the bottom-line salary for the CATV business model.
Second, it comes from the expectation of the capital market. The performance of the capital market depends on expectations; good expectations can overdraw short-term and even mid-term performance credits. Extremes like Amazon, which has been losing money since its inception, do not prevent the capital market from providing long-term and firm support. At present, many cable TV network companies that have been listed on the A-share market do not have attractive traditional businesses to the capital market. They must create new concepts and implement concepts. This point is not only related to the current "preservation and appreciation of state-owned assets," but also related to "the future of state-owned assets in the integration of the asset price".
Third, it is the policy of the industry's competent authorities. Although cable TV belongs to the core transmission network of radio and television, it plays an important role in the promotion of the previous wave of "triple play" policies. However, the core of the development of radio and television is the "operational business based on public opinion propaganda", followed by "the operating industry based on media transmission" - firmly grasp the management rights of public opinion, and take all the benefits of the transfer of content The network media, to amplify the leading effect of public opinion propaganda, is the right meaning of the industry management. In the pre-Internet and narrowband Internet era, cable television has naturally become the main video transmission channel, but this is not the case now. On the contrary, if the users of the cable network are sticky, the policies of the Directorate General will be more inclined to use TV/radio and other broadcast control agencies to manage the use of Internet audiovisual services, and also to “promote traditional media and emerging mediaâ€. "Integration development" is handed in the answer sheet, which is not a vicious cycle for the cable industry.
Fourth, it is the system from the previous wave of two-way transformation. In practical applications, a good technical system and platform must be accompanied by continuous iteration of business application requirements, so as to achieve a balance between construction input and operational output, user demand and system improvement, business design, and system innovation—in a word, the system It must be used to be useful. In fact, the two-way transformation from the previous wave of cable TV networks around the world has enabled them to have two-way interactive functions such as on-demand, back-to-view, and pay-as-you-go. However, the actual usage rate of users is not high, so it is difficult to provide a platform that is still rough. A clear direction for perfect iteration. If we compare the number of system platforms in the Internet industry, such as Xiaomi MIUI and LeTV LeTV, the iterative evolution of wired interactive TV platforms is quite slow. To catch up with the Internet's small partners, it is imperative to give an actual large-scale user service and to use a two-way interactive television system first.
All sorts of “forced†demands that the “China TV Academy Alliance†is doing something wrong because competition pressure from inside and outside the industry and down the industrial chain does not leave too many trial and error times for the league, nor too many space.
doing what? Do not do anything?
First of all, we must do "unified brand" and "non-discriminatory pricing," and do everything we can to advertise it.
To some extent, according to the official statement, the business model of the China Television Cinema Federation may be similar to Google’s Android, which is the sharing of core resources (television copyright), self-developed user interfaces (all kinds of content packages), and flexible pricing power ( Bundle with local monthly fees and value-added service fees.
The benefits of this business model are conducive to the exertion of the people's subjective initiative, flexible and flexible measures in accordance with local conditions, and Android can monopolize the market for global smartphone operating systems.
The common disadvantage of this business model is that the main brand is vulnerable to weakening. For example, in the view of many small rice noodles, there is no smart phone operating system in the world called the Android OS, there is only one MIUI OS; the second is the confusion of pricing power. , resulting in an out-of-the-box ecological environment, such as the free application of the world, but containing a variety of malicious deduction codes or small ads that allow users to feel harassment.
On the other hand, China’s cable operators have already begun to try to pay for content operations, such as pay-as-you-go channels in earlier years, and video and TV content copyright service platforms initiated by local operators such as Huadian and Tianwei. However, it is not the geographical separation of the whole network, which makes it difficult for the end-user-oriented paid content operations to get rid of strong local operating attributes. Typical players, such as paid channels, have been developing for a decade, but in the end they have not built a Chinese HBO. On the contrary, in the historical development of bad news, a large number of paid channels have become a model of “packaging and selling to the network operator-operators free of charge to usersâ€, saying that “good proportions†and the industrial chain ecology, and finally For the bubble.
The essential reason is that all local cable companies operate in a regional market. Natural buttocks determine the value of the local wired value-added service brand, far more than the national value of the content service brand; the natural orientation is subject to the interests of the local government. Sexual user service considerations have to take precedence over the national market's unified development. This situation is still stubborn for the “China TV Cinema Allianceâ€.
Therefore, if you want to jump out of the “paid channel circleâ€, the leading operator of the China Television Cinemas Alliance must establish the unified brand of the entire network as the primary person, and then rely on a unified brand to implement undifferentiated official pricing. Although the purchasing power of different consumers is different, for a single piece of consumption of a few dollars, unified pricing does not actually have much negative impact.
More importantly, unified branding and indiscriminate pricing are designed to serve a wider range of Internet users. The development of broadband Internet users by cable operators is slow, but it is the trend of the times. The key position of cable companies in the triple play process is here. Imagine, when faced with Internet users throughout the entire natural network, a brand with more than one "separate" and a jagged pricing system, which is more competitive than an unambiguously strong brand and simple and straightforward pricing system force?
Second, cloud services must be implemented instead of spreading business operations across the cable front ends.
As mentioned above, the stock market of “China TV Theatre Alliance†is in the living room and TV screen, but the incremental market is on the handheld and mobile phone/Pad screen. Developing the latter market can also bring broadband Internet access services to cable operators. Sticky business, like the TV EveryWhere program of North American cable operators such as Comcast.
Therefore, the content distribution system of the “China TV Academy Alliance†should be focused on the cloud, not on the front end of cable companies around the country. The benefits of using cloud distribution to cover the entire network market need not be overstated. From the perspective of technology, systems, and operations accounting, this is also a powerful guarantee for operating a unified market.
Of course, building the cloud is not really investing in building cloud infrastructure. Now there are so many cloud service providers who choose to rent the best value for money. However, the idea of ​​expanding the operation of the entire network via the cloud must be followed. Otherwise, it will inevitably fall into the never-ending, mutually-fought dilemma.
Limited by the number of characters, this article only analyzes from the perspective of cable operators. In fact, if you stand on the perspective of the movie industry, it is another picture. The author will continue to analyze and discuss related topics with you in the next essay.
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