Chapter 1230： Content supply

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(please keep in mind) (please keep in mind) uTube's channel business can be profitable, but how long can it last, and whether it can withstand the blow of piracy? In addition, whether the inserted advertising revenue of the channel business is linked to the popularity of the episode or not. Can the show attract advertisers? Of course, and the most important point, is there really a market for paid rental and paid download services? Will this conflict with the DVD market?

In January 2006, uTube's channel business attracted countless attention, but also caused countless doubts. Come, the birth of a new thing always has to stand the test of time. At the beginning of the commercialization of digital music, after Warner Records set an example, for a full year, no record company has acted rashly, and has always been watching the changes. This is the most direct proof. Now, uTube is also going through the stage of being investigated.

However, uTube's channel business is different from digital music. After all, digital music was groundbreaking at the beginning and completely broke traditional thinking. Now, in the environment of channel business promotion, digital video is not so difficult to accept. What major companies need to consider are the two important issues of digital video piracy control and revenue growth. One is a technical issue and the other is a strategic issue, neither of which is a matter of principle.

In order to control the piracy of digital video, uTube used the system developed by iTunes to control piracy, and developed a set of source code by itself. In the paid rental and paid download business, it will be embedded in the video to achieve the purpose of monitoring. At present, uTube paid rental and paid download videos will have source code in them. Once piracy occurs, it can be traced back to the source. While there is no way to completely prohibit piracy - and it is completely impossible - it can provide evidence for the legal rights to protect copyright. And free video. Then the download service cannot be provided temporarily, and all users can only download on uTube.

In terms of revenue, uTube made a profit of 50 million US dollars in January, but in fact, this figure is the share that belongs to uTube after the interests are divided among various stakeholders. If the interests of all partners are superimposed, and the surrounding added value is estimated , uTube created more than half a billion dollars in value in January.

$500 million. In fact, it is not much, but considering that there are currently only eleven channels, Pixar channels and Apple channels on uTube, and the content resources are still in a very scarce situation, then this number is very considerable. Therefore, if uTube can attract more authorization of content resources, the situation in the future is bound to change dramatically. Of course, the increase in content resource authorization. Whether it can be effectively controlled, whether the service quality can still be maintained, and whether the increase in revenue can continue in a stable trend are all issues worth observing.

At present, the sponsors that have reached long-term cooperation agreements with uTube include twelve companies including Apple, General Electric, Ford Motor, AT&T, McDonald's, and Wal-Mart. Unlike last year, most of uTube's advertisers were Chinese companies, and the quality of sponsorships has not improved. These twelve companies are all Fortune 500 companies. And the brand image has been deeply rooted in the hearts of the people, which has greatly improved the quality of the entire sponsorship.

While major companies were eager to test uTube, Teddy Bell and Steve Jobs launched the second step in their plan: bringing Warner Bros. into the partnership. So far, the development of uTube is still in accordance with Evan Bell's vision. If the second step can also be successful, then yes, uTube's channel business has been completed halfway.

Despite the lack of Evan Bell on tour, Steve Jobs' cunning definitely added weight to the negotiation. What's more, Warner Bros.' Barry Mayer is currently struggling.

In the past year, the development speed of online video is obvious to all. Evan Bell was named the "Times" Person of the Year. uTube has contributed a lot. At present, online video has formed a strong impact on the traditional film and television industry. All kinds of data show that in the past month, the traditional film and television market is being eroded by online video at an alarming rate - the paid viewing and paid download services of "Sunshine Beauty" and "Brokeback Mountain" have created a full $6 million in revenue. , relatively speaking, the DVD rental business fell by ten percentage points, and the DVD business of these two films was signed by Eleven Studios to Warner Bros. More importantly, young people who grew up with the Internet have begun to Accustomed to watching video programs online, the importance of the Internet is catching up with TV sets at an alarming rate. If traditional film and TV companies do not follow the trend and develop new media businesses, then these production companies will face the fate of being eliminated by the times. A large part of the reason for Disney's current quagmire is the backwardness of computer 3D animation.

In addition, the advantages of uTube have gradually emerged, improving the situation of poor video playback caused by the narrow bandwidth of other videos. Eleven Studio's huge investment in servers has shocked Silicon Valley. Evan Bell's At the same time, it also improves the problems of low computer screen resolution and unclear programs, and high-definition video has begun to be launched in the channel business one after another; A big advantage.

Finally, the current average daily hit rate of uTube has exceeded 15 million, and the number of video clips has exceeded the threshold of 50 million. The huge user base gives it an innate advantage. After the program quality has been improved , the channel business is bound to gain convenience from its user base. Only need to solve the problem of resources, then uTube's future development prospects are bright.

Instead, consider it. The issues that major film companies need to worry about are similar to the situation of digital music at the beginning. One is the impact of the emergence of digitalization on the traditional market; the other is the problem of piracy caused by digitalization. And these questions come for Warner Bros. It's not that serious. After all, Warner Music was the first big company to eat crabs, and they were rewarded accordingly. Last year, Warner Music became the leader of the global music market share. This is the first time since the twenty-first century.

Barry Mayer's concerns were not obvious, and Evan Bell's use of the Pixar channel was also played out at this time. The average on-demand rate of seven animations on Pixar is 10 million, which is not comparable to the popular series, but considering that these are works that have been shown on the big screen, and the DVD rental part has also passed. During the peak period, this number is very impressive. You must know that the advertising revenue of these seven animation works through these on-demand rates is higher than that of the DVD rental and sales business of the seven works in January 2006.

The success of the Pixar channel. Like an innate fan, let Barry - Mayer to the prospect after the establishment of Warner Bros. Channel. Coupled with Barry Mayer's own considerations, as well as the convincing Steve Jobs, at the first meeting, Barry Mayer agreed to the authorization proposal: the huge resources of Warner Bros. The library is authorized to uTube to provide online video collection services. However, in the details of the sharing of interests. The two sides still negotiated three times before finally reaching an agreement.

Compared with Robert Eagle's indecision, Barry Mayer is indeed a lot more courageous to lead Warner Bros. to the No. 1 position in the North American box office chart.

After taking down Warner Bros., Teddy Bell and Steve Jobs didn't slow down, and they quickly found their second target. Eleven's second target is Fox Television.

First "American Idol" and then "House Doctor" and "Prison Break" The cooperation between Fox and Eleven Studios in recent years can be very close. The fact that "American Idol" and "House Doctor" can be broadcast on uTube is also the result of Teddy Bell's hard work. It can be regarded as the experience of testing the waters of Fox TV. When the channel business went online, the "prison break" made everyone stunned, and it was even comparable to "American Idol", which definitely made Fox TV overjoyed. Although these episodes are free on the Internet, they are destined to lose TV stations. The audience of the rebroadcast will also have a long-term impact on the future package sales of the drama crew, but the huge group of dramas included on the Internet is an audience from all over the world, which is an advantage that American TV stations do not occupy. "American Idol"'s revenue on ad-on-demand also makes it clear for Fox.

Yes, in the first month of the launch of the channel business, in fact, Fox TV is definitely a big winner. Naturally, they have already known that in their hearts Now, Teddy Bell and Steve Jobs With the fruitful record of uTube, I found Fox TV. The negotiation process of cooperation is not difficult, and even the details of the profit sharing are surprisingly smooth. There is no doubt that Fox Television has joined the uTube channel business family.

The Warner Bros. and Fox deal brought uTube the license to more than 50,000 titles, boosted uTube's channel business overnight, and marked the inexorable arrival of the digital video era.

Then starting in March, as the channel business experienced more and more tests and more and more successful cases, Teddy Bell and Steve Jobs were busy with the uTube channel business. After all, this is different from the boiled frog of digital music in the past. The channel business can only continue to grow if it maintains an advantage in the project of resources. However, major companies are hard to crack. In this business, Teddy Bell and Steve Jobs are destined to prepare for war.

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