Lei Jun builds a millet city-state: the layout of icky arts tonic content short board

The legendary millet worth 400 billion U.S. dollars is accelerating the layout of its living room ecology.

In November, Chen Hao joined the force content structure and the “XY” project was formally launched. 10 million U.S. dollars invested in Youku Potato, followed by 300 million U.S. dollars in shares of iQiyi in the second shareholder.

Coupled with this year's shares of Thunder, three video sites behind the shadow of Xiaomi, Youku potatoes and iQIYI is the first two echelon of the video industry's "big brother."

Fans add self-control, hardware plus content, mobile terminal plus copyright, all parties need each other for their own layout.

Behind the scenes, Lei Jun is also an investor. According to the incomplete statistics of the Money Weekly reporter, Lei Jun’s Shun Wei Fund and Xiaomi Venture Capital have invested in 59 projects, and the industry has built a city for Xiaomi. Investment involves smart hardware, mobile application software, video and other fields, and the millet empire seems to be slowly rising.

Perhaps the "X" in BATX will be the reference of Xiaomi in the future.

Final landing of XY project

Recently, Xiaomi frequently shot video.

In November, Chen Yuxin took office. On the 19th, Xiaomi and Leijun’s Shunwei Fund, with a huge sum of US$300 million, “arbitrarily” bought shares in Iqiyi. iQiyi is now a company owned by Baidu. After the completion of the investment, Xiaomi became its second largest shareholder and sent a director to the Iqiyi Board of Directors.

It is reported that after the completion of this round of investment, Iqiyi will cooperate with Xiaomi in the field of content and technology product innovation, especially in the field of mobile Internet.

This cooperation can be described as complementary shortcomings. iQiyi, with the support of Dongdu Baidu, took high-definition video lines, rushed heavily to grab a lot of content, received a PPS gift from Baidu, and then purchased 200 million yuan of Hunan Satellite TV Variety Show. This year, China Qiyi loved Qiyi. The establishment of Xiaobian greatly complements the content side of Xiaomi. In 2012, with the establishment of Galaxy Connect, a handheld licensee and broadcasting company, Xiaomi TV’s hunger for licenses has also been met.

Xiaomi owns the background of China's largest mobile phone maker and the third largest mobile phone maker in the world. For iQIYI, Xiaomi’s loyal users will provide support for their UGC tools. More importantly, Xiaomi’s hardware can take the lead. Seize the client.

It is worth noting that iQIYI has stated that the company has been seeking an independent listing and that no timetable has yet been set. Analyst International Analyst Roland told reporters: "Iqiyi has a relatively competitive market in terms of market structure, user size, and content richness. The position of the second shareholder after the shareholding also increases the right to speak for future strategic cooperation."

Compared with Alibaba's 16.5 percent stake in Youku Tudou and Tencent's Tencent video, investment in the industry's rookie Iqiyi seems to be more clear.

Earlier this month, Xiaomi announced that it invested 10 million US dollars in Youku Tudou. The specific method was not to buy shares, but to buy Youku Tudou shares in the secondary market. This was Chen Quan's first investment in Xiaomi.

Youku Tudou Group stated that the investment in iQiyi Xiaomi is a strategic partnership. Its content self-control capability can provide support for Xiaomi hardware products, and mentioned that both parties are committed to promoting the fan economy.

In the future, the homemade content of Youku Potato can be played on content carrier terminals such as the Xiaomi box, Xiaomi TV, Xiaomi mobile phone, Xiaomi tablet, etc. Xiaomi will also be deeply involved in the production, production, and distribution of content.

Chen Hao, the person behind the two investments, has also caused great repercussions in the industry. At the beginning of this month, he was the chief editor of Sina. He jumped to Xiaomi and was responsible for Xiaomi’s content investment and content operations. The high degree of attention, to a certain extent, made a trend for Xiaomi.
Subsequently, Lei Jun sent $1 billion and launched the "XY" project. It has been clarified that XY represents Iqiyi and Youku Tudou respectively, and this time the acquisition of Xiaomi has plans to integrate video content.

Regarding the two transactions, Capital Capital CEO Li Junhua said in an interview with the Money Weekly reporter that for Youku Tudou, Xiaomi may be a financial investment, and for iQIYI it is a relatively far-reaching investment.

Millet box copyright quagmire

Since the launch of the new millet box, experienced millet boxes, millet box second-generation and 2GB enhanced version of the two generations of product change, this year on October 17, millet box launched a new product - 1GB enhanced version.

The second generation of the millet box has been out of stock, and the 2GB enhanced version of the millet box being sold is priced at 399 yuan, while the new 1GB enhanced version is the same as the second generation product - 299 yuan.

Currently, the existing TV box camp on the market includes OTT products led by TV manufacturers, set-top box manufacturers, licensees, and Internet companies.

The first two types of products are mainly boxes, which are restricted by regulatory policies and cannot be scaled up. The Internet properties dominated by Internet companies are significant, but they rely on the licensee’s content broadcast control platform.

As early as the launch of the new millet box, on January 28, 2013, Xiaomi Technology and ITVV (hereinafter referred to as "Future TV") formally signed a strategic cooperation agreement. The millet box accesses China's Internet TV integration broadcast control platform for future television operations, including program integration and broadcast control, EPG management system, client management system, user management system, billing authentication system and copyright management system, etc. For management, Xiaomi Box provides services to users through the China Internet TV integrated broadcast control platform.

It is reported that CCTV International, which belongs to the future television, is the first company to obtain the license of the Internet TV integration service issued by SARFT, and the future TV will be responsible for the operation of the Internet TV business.

In spite of this, Xiaomi's box still did not get rid of the content's predicament and copyright quagmire. Last year it was connected with a lawsuit for 3 months.

In August 2013, Thunder sued the millet box and said that Xiaomi's box provided the movie "martial arts" and "Thailand" online broadcasting services, but it did not receive the Thunder license for the right to disseminate information on the Internet. Thunder asked Xiaomi Box to stop playing online services and claim 100,000 yuan.

In September 2013, Hunan Satellite TV lodged the millet box with the TV in the future, claiming that the two companies did not obtain authorization, and ran out of Hunan Satellite TV's trump card program "Every Day," Hunan Satellite TV also claimed 100,000 yuan.

In October 2013, Youku Tudou also sued Xiaomi, claiming that Xiaomi’s box had infringed on 10 titles such as “Beijing Youth”, “Love Apartment” and “Legend of Chu Han”. Youku Tudou claimed RMB 5.1 million. In addition, Youku Tudou stated that there are as many as 173 other exclusive sources of infringement of Xiaomi's box, and the evidence will be filed gradually.

Xiaomi responded to the millet box only to access the video content and did not have its own content. It complied with the relevant provisions of SARFT.

The above lawsuit also shows that Xiaomi’s weakness in terms of content, and why Xiaomi made shares in Thunder, Youku Tudou, and Iqiyi, turned his enemies into partners and transformed them into jades. This is Lei Jun’s trick. After investing in iQIYI, Xiaomi will have the support of the Yangguang Galaxy. The recent acquisition of a virtual operating license has guaranteed the copyright.

Add content end layout

Millet's hardware industry is relatively mature in the country, and its content resources are its shortcomings. In fact, Xiaomi has already begun planning the layout of content and copyright. This year is particularly intensive.

In April, Xiaomi bought the Thunder's 27.2% shares with a high price of 200 million U.S. dollars, becoming the largest shareholder of Thunder, and Lei Jun held a 39.4% stake in Thunder through Xiaomi Technology and Kingsoft, controlling Thunder. Exceeded all Thunder Directors and executives, who held a 34.5% stake in Thunder.

Among them, Thunder is also a video industry and can supplement Xiaomi with content. Prior to this, Xunlei stated to the media that the cooperation with Xiaomi was mainly in two aspects: one was Xiaomi's MIUI operating system, and the other was Xiaomi's home hardware, Internet TV, and Internet set-top box. Lei Jun also mentioned that Thunder has advantages in high-speed download and video services.

Thunder to see and reveal: on the cooperation of millet and Thunder, mainly related to the two major aspects of product and content, there is a relatively large space for cooperation. However, as the specific details belong to the confidentiality scope stipulated in the contract, it cannot be specified at present.

In the third quarter financial report released by Thunder on November 26th, the net profit of the company attributable to the company was US$300,000, a decrease of 94.7% over the same period. In the statement, he pointed out that the company is optimistic about the development of the mobile business and hopes that the deeper integration with Xiaomi will become the main way to drive the business. It can be assumed that Thunder and Xiaomi will continue to cooperate more on the mobile side.

As early as February of this year, the wholly-owned Wali Group has established Millet Entertainment to integrate multiple services such as chat, games, and video. Huali Internet also invested in Huace Film and Television, and laid out a film and television cultural industry.

As mentioned earlier, in November, Chen Yu joined again, set up a fund to feed Xiaomi TV, and invested in Youku Potato and iQiyi in succession. These three companies all have millet’s urgently needed Internet video business. Will they be “racking” each other? How will Xiaomi integrate video resources?

The reporter tried several times to contact Xiaomi Technology and sent an interview outline to his media mailbox. As of press time, Xiaomi did not reply. The Thunder clearly told reporters that the current investment in Youku potatoes and iQIYI millet, and Thunder to see no conflicts of interest.

Roland analyzes that Thunder's technology provides good support for hardware terminal download acceleration. Iqiyi and Youtu can effectively fill in the shortcomings on its content. Xiaomi, based on its own user positioning and content strategy, integrates different advantages.

Analyst International Analyst Xu Hao said that at present, national policies have been tightened, and third-party video sites are not allowed to be broadcast on smart TV platforms. Therefore, Xiaomi invests in these three companies, and it should be more inclined to use smart routers as the core to build family ecology. . Through Xiaomi routing, video resources can be cached in the router. Thunder, iQiyi, Youku Tudou can become content providers.

59 Project for Xiaomi “Building a City”

iQIYI, Youku Tudou, and Thunder are just a part of Lei Jun’s investment layout. Lei Jun's investment is not inferior to BAT.

In addition to the Jinshan system, Lei Jun’s investment mainly relies on three channels around Xiaomi.

First, Lei Jun's own angel investment, Lei Jun is the core of Lei Jun Department.

The second is the Shunwei Fund established by Lei Jun as a partner. This is the main force of the Leijun Army. Most of the projects are funded by Shunwei Fund. Shunwei Fund was established in 2011. Currently, it has set up two funds. The first-phase fund is 225 million US dollars. The second-phase fund was raised and completed in April this year with a scale of 315 million US dollars.

Third, millet venture capital, mainly for Xiaomi's strategic services, and Shunwei Fund have some cross-investment projects.

According to incomplete statistics by the financial weekly reporter, Shunde Fund and Xiaomi Venture Capital have invested in 59 projects (Lei Jun’s angel investment cannot be counted due to lack of public information). There are three cross-investment projects between the two, including Jiayi Lianchuang and Zhigu Ruituo and Metso.

Since the founding of the Fund, 50 projects have been invested. Among them, Yoke Networks, 51Talk, and Auntie have all received two investments from Shunwei Fund, and a job network has also obtained 3 investments.

Millet Ventures invested 12 projects, among which IMFB instant Facebook won its two investments.

The 59 projects involved smart hardware, mobile application software, video, smart home, e-commerce, O2O, social networking, online education, online medical care, media, online travel, internet finance, games, product design, etc., closely surrounding millet's Product chain layout, trying to create a closed loop.

For example, both Sun Capital and Xiaomi Ventures have investments. Jiayi Lianchuang's main products are Pioneer Headphones and Xiaomi's mobile power. Zhigu Ruitop is a professional company in intellectual property management and consulting that specializes in patent intellectual property assets. Management, licensing and trading; Metso Design is an interactive design, user experience (UI) design company, has undertaken design tasks in Xiaomi's Red Mobile Phone, Xiaomi TV, MIUI V5 and V6 and other software and hardware products.

In addition, Xiaomi also began to set foot in the real estate field. As early as this September, Shunde Fund invested RMB 100 million in the recently-populated YOU+ International Youth Apartment.

For Lei Junjun’s investment, Capital Pool CEO Li Junhua believes that Lei Jun is playing a role other than BAT. He is currently consolidating resources and has accumulated considerable resources. "Millet's consolidation will help increase valuations. There will be a series of acquisitions afterwards and it is estimated that it will be listed next year."