Lemusi Radical Radio and Television Department Internet TV How to Play

Driven by the dual factors of policy and market, the "play" of Internet TV ("OTT") systems in various broadcasting and TV departments is becoming more and more intensified.

"There are two main types of OTT games in the market. The first one is OEM, grab entrance, and install. It is hardware. We have also done research for a long time. Mango TV will not play hardware at this stage. We want to Focus on the content and let the content drive the OTT business.” On June 10, deputy director of Hunan Radio and Television Station and Happy Sunshine (Mango TV's actual operating agency) Chairman Nie Mei told 21st Century Business Herald reporter.

According to public information, Mango TV is operated by Hunan Happy Sunshine Interactive Entertainment Media Co., Ltd. and is the only Internet video supply platform owned by Hunan Radio and Television Corporation. It is also centered on audiovisual interaction for computers, mobile phones, tablets, and televisions. "Multiple-screen" single-play, multi-screen, home-made new media audio-visual comprehensive communication service platform. As one of the only seven major OTT broadcast control licenses in the country, Hunan Taiwan currently puts the OTT license business on Mango TV.

In terms of the current national OTT pattern, a group of Internet companies represented by Levision and Xiaomi adopt the aggressive play of "box + smart TV", dumping the front-end, back-end subsidies, and seizing the market entrance with cheap hardware terminals, at the OTT market In response to the huge response, it also caused a significant impact on the traditional broadcasting and television companies.

Nie Mei said: "We can find some good examples internationally, such as House of Cards' Netflix. This company cooperates with more than 3,000 hardware manufacturers. It never said that it has to be a terminal, but Netflix did it too. The industry first. And mango TV may also play this model in the future."

OTT hit the country: rely on hardware or content?

As we all know, OTT business will certainly become the next intersection of broadcasting and Internet. Internet companies hold high-strategy hardware terminal strategy led to the collective anxiety of the Department of Broadcasting and Television, relying on hardware or content to hit the country, becoming the focus of the market.

Regarding the evaluation of the two strategies, Nie Mei said: "Mango TV has also done research for a long time and it is not really in the hardware itself. Because if you cut into the hardware, it seems to be closer to the user. But we Looking back at the Mango TV situation, according to our ecological superiority and talent advantage, we decided to play our own game at this stage. I can only say that at this stage, we cannot do this.”

Competitors from Internet companies are advancing rapidly. By selling low-priced TVs and binding two-year paying users, LeTV sold 1.7 million units of super TVs in 2014. In 2015, Jia Yueting released 4 million units internally. Sales target. Leung Jun, senior vice president of LeTV Holding Group, who is in charge of LeTV, once admitted to reporters: “The goal of Lao Jia's release is very high, and the pressure this year will be great.”

However, this pressure is not merely a LeTV. Before that, multi-site broadcasting and TV companies including BesTV, Huadian, Mango TV, and Gehua watched competitors' play and considered whether they would enter the terminal. market.

On May 27th, Gehua Cable (600037.SH) took the lead with BesTV (600637.SH), Skyworth, and Hisense to launch the hardware of the 4K TV all-in-one. After that, Shanghai TV station director and SMG president Wang Jianjun also said in an interview with a 21st Century Business Herald reporter that BesTV does not rule out the possibility of jointly launching hardware terminals with TV manufacturers and hardware vendors in the future. "We are all welcome and will actively expand." She said.

Nie Mei told reporters that she does not exclude hardware vendors, nor does it exclude that Mango TV will cut into the field of hardware in the future, but it is by no means at this stage.

As the world’s most popular online TV provider, Netflix’s success undoubtedly indicates that the content-driven path is equally feasible. Nie Mei said: "Mango TV should focus on content and related services. As long as you make your unique industry leader in this vertical field, you will certainly have your unique value. Let others can not abandon you, that is all The hardware vendors find that your content and services are the best, and it must work with you. This is our value."

OTT is the eukaryotic of Mango TV

At present, the outside world's understanding of Mango TV is largely concentrated in two pieces. One is a video site owned by Hunan Satellite TV, and the other is that only Mango TV can see exclusive programs of Hunan Satellite TV.

"Our focus, frankly speaking, must be OTT." Nie Mei's answer is very clear on the question of who is the focal point for the development of video sites, mobile terminals, and OTT's Mango TV. "But this does not mean that we give up the Internet." Video business, because this is also the most important way for us to approach users, and we will never give up."

Objectively speaking, since Tudou became the first domestic video website to run online in 2005, hundreds of domestic and overseas video websites have been shut down, died dead, and 10 years later, the excellent soil after the merger with Youku is still unable to The realization of profitability, rising copyright procurement costs and cash flow that can never be satisfied have become a realistic portrayal of the video industry. Instead of betting a video site, it's better to bet an OTT.

"Internet video is already very mature, and Internet TV is still at the stage of raids, and everyone is still exploring the business model." Nie Mei said.

In March 2015, Mango TV completed A-round financing. Nie Mei disclosed the specific information during the Shanghai TV Festival for the first time: Mango TV sold a total of 7% equity in the first round, financing over 500 million, and the valuation reached RMB 6 billion. 2 billion is the video site's valuation, and the remaining 4 billion valuation is given to OTT. Judging from the valuation ratio, there is no doubt that the capital market has an attitude towards OTT's outlook.

Nie Mei told the 21st Century Business Herald: "In 2015, I gave them the OTT business indicators divided into three parts, namely, the activation of users, daily active, pay rate. Among them, the number of active users this year should reach 10 million, and active users should be kept at 20. %~30%, payment rate will increase from 1%~2% last year to more than 10%."

Of course, to complete the OTT business breakthrough, early stage "burn money" is unavoidable, but the current mango TV's own hematopoietic capacity is not yet fully self-sufficient, landing the capital market will become Mango TV's next most important move.

"If nothing unexpected happens, we will land on the new three boards within the year and then raise funds through a non-public offering. In the first round of financing, there were 40 to 50 companies involved. We finally selected 6 companies through strict screening. The second round of financing will surely be more than the first round. For investors, as long as it is not a foreign company, we welcome it," said Nie Mei.

According to reports, the revenue of contracted mango TV advertisements in 2014 was 800 million yuan, which is more than 10 times that of 2013. It is internally expected that the growth rate of 2016 will not be less than 40%.

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