After a period of more than one year's "dwelling period" was acquired by Suning, video supplier PPTV finally began to make a break.
On the afternoon of the 11th signing cooperation with the Premier League club on brand cooperation, Fan Zhijun, chairman of the PPTV Management Committee, disclosed to the outside world that this year PPTV's strategic direction is sports first, and the upstream of the industry chain (such as private brand events) and downstream ( For example, the development of lottery tickets, tourism, etc., should be turned from the traditional mode of burning video on websites to buy copyright.
In October 2013, Suning and Hongyi Investment invested US$420 million in strategic investment in PPTV. However, in the outside world, PPTV does not seem to have much movement after this. Especially in 2014 such as Youku Potato, Iqiyi, LeTV and other competitors, the PPTV did not make waves. Until Suning increased its holding of PPTV shares to 64% in December last year, Suning entered the main management, and PPTV stepped on the accelerator.
According to the new year's vision of PPTV, it is necessary to grasp the right to speak in the entire chain of the sports industry. In the upstream, in addition to purchasing the copyright of the event, the company will focus on creating its own branded events (such as running China, PP real football manager league, etc.) around PPTV Sports 1 and expanding to the offline market. At the same time, it plans to set up PP Film Company this year to test the water. Homemade drama. According to reports, the upstream brand-owned event business will have an investment of 600 million to 700 million yuan in 2015. On the downstream side, it is to cooperate with third parties on lottery tickets, tourism, and even vertical fields such as education and automobiles, and develop various types of sports products.
So, why did PPTV choose to make a transition at this time, can this differentiated route compared to traditional video sites actually go through?
Insiders told the First Financial Daily reporter that, on the one hand, sports is one of PPTV's best quality assets. Although the company is not yet profitable, the first sports has achieved a balance of revenue and has now won four Premier League and other European leagues, the Champions League, The AFC Champions League and other events’ copyrights reinforce the vertical advantage of sports is an optional path. On the other hand, Suning experienced a turnaround in the Internet transition in 2014, and its financial performance began to improve. It is more supportive of PPTV support; At the level last October, it expressed its determination to support the sports industry, and it also brought policies to the upstream and downstream of the sports industry chain.
Fan Zhijun predicts that PPTV will achieve profitability in 2015. In the proportion of its revenue contribution, advertising revenue will only account for 20% to 30% of the overall scale. The transformation will find a new profit model.
"For traditional video sites, users are not users of the site but users of the content." Fan Zhijun said that the loyalty of users to video sites has given place to entertainment-based copyrighted content, and PPTV's future direction is to make life-oriented video sites. (education, tourism, real estate, shopping, etc.), to create user stickiness through community.
Will be smart TVs and mobile phones
The reporter learned from Suning that Suning's strategic focus in 2015 included mobile terminals, internet supermarkets, internet finance, red children, and logistics, including PPTV. Is PPTV's future role an adjunct to Suning's overall O2O transformation, or is it more independent?
In this regard, Fan Zhijun told the First Financial Daily reporter that PPTV is an independent company and will choose to develop independently. Just last month, he also said that PPTV will strive to complete the listing within the next two or three years.
However, for Suning, which is entering the fast-track transition of the Internet, PPTV's platform resources will help its transformation. For example, in the combination of e-commerce and video, PPTV has just launched PP radar. It is actually using the cloud-viewing chain technology to break through the boundaries between video viewing and online shopping.
In addition, according to Fan Zhijun, the hardware market will also be one of the key strategies of PPTV in 2015. It is expected that smart TVs and smart phones will be launched in the market this year (it is expected to make 800,000 to 1 million). In addition to being a sales channel, Suning can also cooperate with its own smart home and Internet of Things plans.
It is not difficult to predict that these hardware devices will be integrated with PPTV's content resources and Suning's e-commerce resources, find cooperation models in hardware and software, and achieve multi-end integration of Internet retail.
Some analysts believe that the idea of ​​PPTV is similar to that of Amazon in the hardware field in 2014. At present, while accumulating a large amount of copyrighted content, Amazon already owns Kindle readers, KindleFire tablets, FireTV set-top boxes, smartphones, and other terminals that allow the integration of copyrighted resources and terminal hardware. But a real problem is that the long-attack Amazon is still at a loss.
Recently, Alibaba has invested RMB 3.6 billion in the Meizu mobile phone brand. In addition to the mobile Internet portal and Ali’s various wireless-end strategies, Meizu will also play a carrier role in Ali’s smart home, living room plan and the Internet of Things. According to the analysis, the integration of e-commerce and smart hardware will be closer in 2015.
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