Chapter 999： Profit means

~Date:~Oct 09~

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In February 2005, utube was officially established; in March 2007, hulu was officially established. In 2012, the two became the most representative video sites in the United States.

utube occupies 43.5% of the global market share, and hulu only occupies 1% of the US market share; but utube's advertising revenue is not as good as half of hulu's, and hulu occupies 1% of US video website advertising revenue. Thirty-three percentage points♀ is a huge gap, making the two video sites a stark contrast.

Some people describe it like this, utube is a whale that feeds on shrimp and rice, and is not picky at all; hulu is a shark, it is a picky starter, and its target is fast and precise. As a result, "Whale" loses money every year, making Google miserable; "Shark" is not well-known, but its founder, Universal, is full of wallets.

Because utube is positioned as grassroots, consumers can let the masses participate in the ranks of video sharing; while hulu is positioned as a professional, they have set up a variety of channels, and Sony, MGM, Warner Bros., Lionsgate, NBA More than 80 content producers have cooperated, which means that people can watch full TV series and movies for free on hulu. The fundamental difference in positioning has created a huge gap in the development of these two video sites.

Some people may ask, why doesn't utube learn like hulu and target high-end? But the fact is, if utube does not target the grassroots and the public, then the video sharing website will not have such a broad mass base, and it will not be able to develop, then two years later, maybe hulu will not exist at all♀It is a cause and effect. question. To develop video sharing websites, it is inevitable to proceed from the mass basis.

Teddy Bell realizes this. He knew that the video sharing website mentioned by Eden Hudson would never develop if it didn't locate the grassroots, but if Eleven Studios wanted to invest in this video website, their development plan couldn't be so disorganized, they It must be clear that while building the mass base, the high-end line should also be prepared and focus on long-term development. otherwise. As Evan Bell said it was a mess.

Eden Hudson's mind also turned around. Although the iceberg face didn't change much, those piercing eyes revealed his inner meaning. Evan Bell knows that Eden Hudson understands the real hassle behind building a video site, and it's a huge challenge.

"If we're going to invest in Youtube. Evan, do you have a good profit idea?" Eden Hudson looked at Evan Bell, eager to try.

Evan Bell knows what Eden Hudson is thinking. After the establishment of utube, the website must sign copyright cooperation agreements with major companies to allow these companies to agree to video websites to upload the videos they own. This is an incomparably huge amount. Engineering, and buying copyright, only God knows how incredible it is ♀. Of course, this is also the domain of Eden Hudson. So, instead of asking about monetization ideas, he asked Evan Bell whether he was optimistic about the video site's prospects.

Along with Eden Hudson's words, Teddy Bell also looked at Evan Bell, which surprised him, "Are you also interested?"

Teddy Bell nodded, "I think there's a lot of room for profit here, but we just don't know the right method. Imagine. In the future, the click-through rate of a day on the Internet will be in megabytes - or even larger units of measurement. To calculate. A video site is like 'Facebook', it can have hundreds of millions of hits a day. If it is run well, this is definitely a huge attraction for advertisers." Speaking of this, Teddy Bell After a pause, his expression was simple and honest, as if he was empty, but this harmless expression was actually the nirvana he was thinking about, "Maybe Eden is right, the video sharing website can really become a publisher in the future. The platform allows more professional musicians and professional filmmakers to have the opportunity to show themselves. Everyone has the opportunity to realize their dreams.”

Teddy Bell looked at Evan Bell. He has always known his brother's dream. He is the opportunity to make music and movies freely. The same is true for the establishment of the studio. Now the artists under Eleven Studio, They have obtained a relaxed environment, allowing them to fully realize their dreams. Of course, if it can bring profits to Eleven Studios, it would be more than welcome.

However, Studio Eleven has limited energy and limited people to help. Now, although the entire Eleven production department is reading the submissions of those ** musicians every day, the power is still too small. If there is a video sharing website that allows everyone to have a platform, dreams will no longer be just dreams. Musicians and filmmakers can also take the initiative to display their works and take the initiative. So, Teddy Bell knows that Evan Bell is more interested in video sharing sites than Eden Hudson, and it's no wonder he just eloquently said.

Evan Bell is not a saint. It is too false to say that he serves the vast number of ** musicians and ** filmmakers. He just felt that if he could provide a platform for everyone, such as participating in the creation process of utube, and at the same time make a profit for Eleven Studios, why not do it?

However, utube is different from "Facebook". Evan Bell joined "Facebook" as a partner of Mark Zuckerberg, so he didn't worry too much. But this time utube, in terms of execution, Evan Bell is bound to spend more attention, otherwise, according to the development trajectory of the previous life, utube did not start to make profits until 2011 and 2012, which is definitely a big trouble.

Evan Bell looked up at the three people around him, Sean Mayer was still at a loss; Teddy Bell looked thoughtful, and it could be seen that he was also interested in this aspect; As for the guy Eden Hudson, his eyes drifted to the side, and Evan Bell knew that this was a subconscious action when his heart was turbulent. It seems that Eden Hudson is a free labor force. Maybe Evan -Bell doesn't need to be hands-on either.

"If we want to invest in utube. If it can be developed, we must start with the original idea of ​​​​the website, starting from the mass base, but at the same time, we also need to have a good talk with Warner Bros. and 20th Century Fox about cooperation matters. But it's not about purchasing copyright, but about cooperation agreement on copyright authorization." Evan Bell is not very clear about how to solve the copyright issue of Youtube, but because he was a journalist in his previous life. He still understands something, "We have to ask the three young people in Youtube to program an identification system, this system can automatically identify the copyright owner of the video, and then we will extract a part of the video's embedded advertising revenue as compensation Paid to owner."

In simple terms, different from the direct paid download of digital music commercialization, the benefits are distributed proportionally; Youtube should obtain the copyright use rights. When a video of the company is uploaded, it will deduct part of the advertising revenue to the company, and share the benefits equally. way to allow copyright issues to be resolved.

Compared with "purchasing" copyright, this method is much simpler, more convenient, and more feasible. More importantly, with or without Youtube. It is difficult to obtain income from the online copyright of film and television. Now, in addition to itunes, there is another platform for obtaining copyright income, so why not film companies?

Starting from Warner Bros. and 20th Century Fox is also because of good cooperation before. If they can be persuaded, it will be a good example for other large film companies. ♀ It is also to minimize the problems that may be caused by copyright, etc. ten Five months later, after utube really developed, ▲station could be authorized by most companies. That's the best case. Without the entanglement of copyright infringement, the website can also have more energy to develop high-end customers. Of course ♀ is just a plan, the success depends on the outcome of the negotiations, whether Eden Hudson and Teddy Bell can impress these mercenary bigwigs.

Once the copyright issue is resolved, one of the biggest problems with utube's development is gone. And on how to achieve profitability, Evan Bell also has his own ideas. "Actually, we should talk about the income part in several parts." Evan Bell had a lot of ideas in his head, but they were not very systematic. Fortunately, after he said it, there were Teddy Bell and Eden- It's not difficult for Hudson to help reference and polish it up.

In Evan Bell's view, the revenue must be divided into advertising revenue and fee-based business.

The advertising part can learn from the innovative methods of "Facebook". In addition to prominent advertisements on the homepage and video pages, advertisements embedded in the video or scrolling advertisements below the video can also be added. For example, someone uploads a music video of Evan Bell, and utube can place ads promoting the song, telling people how to buy the song or download the song's ringtone♀You can reach a cooperation agreement with Apple. Or make a deal with Facebook and tell people they can join interest groups on Facebook or something. For another example, someone has uploaded Leonardo DiCaprio's past movie clips can launch a promotional video of his latest movie starring in the associated video, or provide movie rental and download methods advertisment.

This way of ad placement can go viral, from big entertainment companies like Warner Bros. to amateur electronic video photographers, anyone and any company can place ads if they want, even with their own creative to implant ads. In the future, there may also be a full-time video producer who can provide advertising companies with a variety of creative videos to achieve the purpose of publicity♀Maybe it will become an emerging profession.

In addition, Evan Bell believes that the channel business is imperative.

"Channel business?" Sean Mayer can't really admire it. The novel idea in Evan Bell's mind always makes people wonder, "Is it like a TV channel?"

Evan Bell thought for a moment, "Well, that's right, but strictly speaking, there is a difference."

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