Why is PPTV's management turmoil not far away?

Video management company PPTV Juli Group once again "turbulent", the board appointed Suning Huadong District Second District Executive Fan Zhijun as chairman of the PPTV Juli Management Committee, acting on behalf of the CEO. This means that Suning Cloud will take over the day-to-day operations of the company at the business level.

In October last year, Suning Yunshang and Hongyi Investment (Lenovo Holdings), strategic investment of 420 million US dollars merger PPTV Juli, respectively, became its first and second largest shareholders.

Since then, the PPTV Juli management team has started its personnel turmoil. In March of this year, the original Lenovo vice president Lu Yan replaced the original CEO Tao Hao, and Hony Capital Investment President Zhao Linghuan served as the chairman, and the PPTV management structure was also appointed by the new investor. After the introduction of investment, the original senior executives of PPTV continued to lose, and many senior executives responsible for multi-terminal business, marketing, and international business had left.

Management's big shake-up is actually a big change in the future development strategy. In the future, PPTV Cohesion will develop according to the strategic thinking of Suning Yunshang. Suning hopes to take over PPTV control and seek breakthroughs in video services and even home Internet services. Judging from the integration transition period in the past year, PPTV did not bring an accelerator effect to Suning in transition.

Suning’s 2014 first-half performance report showed a loss of 749 million yuan in the first half of this year, while net profit for the same period last year was 730 million, a decrease of 202.06% year-on-year. This is the first time Suning has suffered a loss in its interim results since it was listed in 2004. The loss of the PPTV business invested by Suning affected the return on investment by -81.15 million yuan. This is the price paid by the running-in period. So, what are the reasons for PPTV not far?


Single business structure

In order to attract more users and attract more advertisers, high-quality content has always been contentious for video sites. The result of this battle is to bring copyright costs closer to the sky. When the rumors of the capital-chain breakup were rampant, with Suning and Hongyi’s capital “transfusion”, PPTV was more able to cope with the copyright dispute, but had to burn more and more money in this regard, and so far the video industry is still There are no signs of profit. Moreover, the exclusive copyright of premium content can only support video websites for a while, and this video mode of eating stimulants is difficult to last for a long time. At the same time, the traditional media have gradually realized that online video has impacted them and has already tightened the copyright of self-made programs. For example, Hunan Satellite TV plans to broadcast alone, its flowers and juveniles singing wars metamorphose eighth quarter and other several popular programs will no longer sell Internet copyright, only in its video site Mango T

V alone broadcast. This means that the content source is not a huge amount of money that can be solved.

Faced with the predicament, each major video site has rushed to the upper reaches of the industrial chain and turned its attention to the network's original self-produced drama. It even established or united film and television companies to participate in the investment, production, distribution, operation, and promotion of the film production company's entire chain, etc. There is a shortage of high copyright costs and content resources. In 2014, Tencent Video has cumulatively launched 10 self-produced dramas with a total broadcast volume of over 1 billion. At the same time, it has joined the industry's top film and television production companies and screenwriters, and will soon launch several movie projects. Youku Tudou has even made a heroic $300 million self-made online drama, creating a weekly production drama theater based on the themes of youth idol, costume fantasy and suspense reasoning, and 17 home-made dramas have appeared one after another. Iqiyi has announced the launch of iQiyi Studio's strategy. As of now, it produced a total of 15 episodes. It occupied two seats in the Top 5 episode in the first half of 2014, and the number of broadcasts has already exceeded 1 billion. It plans to produce more than 30 next year. Ministry copyright drama.

However, there was no news of PPTV in 2014. PPTV's goal of setting up a packaged entertainment program for Jiangsu Satellite TV at the beginning of the year and continuing to give play to the advantages of sports broadcasting is almost supported for a whole year, in which the most powerful brain copyright value of light entertainment programs is worth 150 million yuan. In the increasingly diverse market demand, the main difference in competition is a good plan, but the eggs are placed in a basket and there is something wrong. After all, simply relying on one or two entertainment programs and several sports narrators to instigate the market for counterattacks is not practical. The idea of ​​simply positioning content playback tools is outdated, and creating the entire industry chain ecosystem of the video industry is the future direction.

Policy oversight

PPTV has developed a home internet strategy. It is expected that PPTV digital entertainment services will be pre-installed on Sun TV's 1600 offline stores and Suning's online shopping mall's smart TVs. Lenovo's smart TVs will be sold with Suning's 40% smart TV market. Share, fully into the "family." The dream is always great. On July 9th, in order to ensure that Internet TV content service agencies should comply with the publicity and management requirements consistent with broadcast television, SARFT requires terminals such as smart TV set-top boxes purchased or integrated by cable network companies to be installed, and other terminals other than TVOS may not be installed. operating system. On August 29, PPTV announced that it would stop providing smart TV client services. In the third-party smart TV application market, PPTV Juli TV client applications for Android smart TVs cannot be found.

The box market is about to flourish, and a “limited order” issued by the SARFT has announced the end of the flowering period. The video site's entry into the TV is subject to policy risks. As early as the end of 2013, PPTV has launched a number of OTT products. After the integration, the box end has been the focus of cooperation between PPTV and Suning. Under the suppression of policies, many video sites responded quickly after the box strategy was frustrated and increased their input. The PPTV response was slow and lost opportunities for development.

Fusion is unsatisfactory

Suning Tesco expects PPTV's 300 million online traffic to open its own entrance and increase its revenue. During the double 11 period in 2013, the PPTV network self-made goddess office tried the video chain advertising model. When some episodes appeared electrical appliances, the screen would automatically jump out of the product introduction and QR code, and at the same time began to pilot live product shopping guide, PPTV users saw After the video can be ordered to Suning Tesco. However, such excessive television shopping and advertisements actually impair the user experience.

In addition, the post-integration cooperation plan is lacklustre and there is no clear and feasible layout. Suning plans to implant PPTV content into the terminal and accelerate Suning's transformation into Amazon China through the integration of e-commerce and video. In addition to policy factors, previously mentioned, PPTV business is single, there is not enough rich content support, even if PPTV implant multiple terminals, how can users buy it?

Whether it is Suning or Hony, there is a lack of experience in the field of Internet video, and the advantages they have accumulated in the traditional fields are difficult to boost PPTV. In last year's and this year's financial report, the effect of cooperation did not appear.

The future of the video field is limitless. Youku acquires potatoes, iQiyi integrates PPS, and now Alibaba shares shares in Youku potatoes. Xiaomi invests in Youku and iQiyi, and the fierce competition in the Internet video field can help you gain a glimpse into the future. According to recent data from iResearch's iUserTracker, whether it is in the aspect of browsing time that directly reflects market share, or in terms of daily users and monthly user traffic, the advantage of PPTV is no longer. PPTV seizes market share, and the road to return to the first echelon will be rather arduous and the prospects will be confusing.

Although it is emphasized that this personnel adjustment is one of the strategic steps for organizational adjustment and system optimization, the turbulence in PPTV's management has actually occurred. Where can we go next?