PPS with PPTV cycles: from a dogfight to compete to online video’s arms

author: fan

sohu will today announce second-quarter earnings in 2013, the most high-profile sogou destiny, in addition to the outside world just is in command personally by zhang sohu video whether m&a PPTV is one of the focus.

in China’s online video rise more than eight years of time, also grew up in Shanghai of PPS and PPTV never deviate from the industry focus. Just from the founding team initially listed broken dream, to the client is completely the video website development to drown, the spotlight of PPS and PPTV but are destined to become a video industry a new round of reshuffle war in a supporting role.

the news of the latest information of science and technology, is the best example of this fate divide. A lot of people think that to hand in the love, is the best end-result of PPS under current market environment, but for PPS, by the mergers and acquisitions means the decision to hand over. Insider tells tencent technology, from the start of the year, one of the founders of PPS ray amount it rarely appears in the company, and from its sold his stake (about 12.8%), and is responsible for the daily affairs of CEO Vincent xue also fade out on the market, marketing, administration management, turned to game operations, its original work before merger and acquisition is being responsible for technology products, founder of Zhang Hongyu takes over.

a PPS for many years the old employees to tencent’s science and technology, said ray holds the PPS management core voice before, after the PPS is iQIYI m&a leave is also a necessity choice and inevitable result.

on the other hand, although iQIYI and PPS in such aspects as product model, user base is a big difference, and after the merger to maintain the brand operation, but both the integration of the follow-up work is not so good as seen from the outside.

more than at the end of may have left the PPS tecent science and technology Beijing team employees to disclose, for them, everything is rushed in after the merger and confusion:

May 7 told by official mail merger; On May 13, organized by iQIYI communication will for the first time; May 16 received notification to all office supplies packaging, May 17, was told that moved to the love in the headquarters, so has the media reported “warmth” scene; After a week of May 23, PPS Beijing, Shanghai, guangzhou department announced job cuts at the same time, many employees start compensation procedures, and are required to hand in office equipment, even without the transition to leave the company on the day.

according to tencent understand science and technology, Beijing team includes positive staff of 50 people, has left more than 30 people.

there are involved in the integration process of the relevant personage to tencent technology revealed that Zhang Hongyu waiting for Beijing team actually not familiar with the integration of progress; While a departure from the Shanghai headquarters staff to tencent technology, says he knows the Shanghai headquarters of layoffs and more than 100 people in a few days. Integrated the above information, PPS layoffs may already at about 20%, 5% more than previously expected – but the data did not rule out a departing employees because of dissatisfaction with the possibility of layoffs and exaggeration.

at the same time, as the PPS undergoing throes of integration after the merger, old foes PPTV is stage, more anxious, still need to be to their own fate belongs.

at the beginning of 2011, PPTV announced for Japan’s softbank group of up to $250 million investment, which is the largest in the field of global video financing. But after two years in the past, PPTV original halo has burst, the capital market rapidly changing plans for its u.s.-listed become far-fetched, but with radical expansion at the same time from the stress of cash flow.

since 2011, PPTV on the web and client, vod, broadcast, television, network and Internet TV, PC and mobile terminal on many fronts – but also cost a lot of money and energy have, according to people familiar with the market investment too hard, and spending on product technology is insufficient, also once caused the PPTV yao xin, founder and CEO PPTV TaoChuang.

the plummet of the situation to PPTV have to find another way out. Tencent technology understand, love art and PPTV and have had only a partnership negotiations, but love in the CEO gong yu told TaoChuang “story” is not interested, but think of PPTV positioning and uncertainty.

there are investors to tencent technology, subject to the financial condition of complex, softbank has refused to investment, PPTV also abandoned plans to new debt is trying to introduce new financing, and merger talks with suning, alibaba, sohu is still in constantly advancing.

client suffered copyright regression of video

in fact, than many other video sites, founded earlier PPS and PPTV, scenery moment had mentioned above some PPS older employees to be established only in 2010 iQIYI m&a feel hard to accept, but there is no denying the fact that online video sites has become the trend of the industry development.

before the client’s advantage is that the P2P technology provide high-definition video, low cost and buffer speed, more important point is that in the early stages of growth, vast amounts of pirated content is to attract users and traffic tool.

and start main copyrighted content online video sites, copyright as weapons to rivals frequently. In 2010 to become the landmark of watershed. This year, video become the focus of the government departments to crack down on piracy, antenna video 6 senior executive was arrested on suspicion of infringing the copyright and piracy law started up from the civil liability of criminal responsibility.

in front of huge challenges, PPS and PPTV began their transition.

PPS accelerated the pace of the original function, and put forward “complex platform” concept since 2011, the main community products “entertainment” and “PPS web game center”.

PPTV chose the promotion web client and at the same time, gain softbank financing after strengthened the live on TV and sports input and copyright content in the field of purchase, and puts forward the development direction of network TV.

from the final result, but the transformation of the two failed to reverse and the widening gap between online video sites. The reason is simple, compared to the major video sites, PPS on copyright investment capital support is obvious; And although PPTV live on sports fields such as set up his own brand, but the layout of the multi-line operations make its location is unknown, the current capital strength is not enough to support its set up barriers to competition, once listed overseas project, its business model and the risk of facing difficult to sustain.

Zhang Hongyu recently admitted in an interview with tencent technology, in the video services and SNS, portal and search information, integration of the Internet age, the client is lack of effective traffic video entry and content marketing channel, the influence and product connotation, forms, interactive and service level obvious short board, thus appeared the trend of the marginalized.

PPS and in-fighting PPTV

in the face of the impact of online video sites at the same time, the competition between the client video also more fiercely. Storm video CEO Feng Xin believes that a strong repellency between the client and the user’s registration using the degree of difficult to more than thirty percent, is the relationship between rat.

war between PPS and PPTV is the best proof of this assertion. As early as in April 2010, the two sides and animated uninstall scandal broke out in public. But on the other, according to tencent’s visit to understand science and technology, industry last year was out a detailed list of a confidential information on PPTV lending, PPS certain executives had been rumors as a spy, on weibo negative information spread by “ma3 jia3” competitors and a series of events hidden behind not escape each other secretly ShiBan suspicion.

with the arrival of a new round of mergers, nearly two years video industry due to a relatively considerable mobile terminal installed capacity, and video website and have a good complementarity, PPS and PPTV also become the industry leader in important object, and the competition of both the ants and extends to the competition of capital strength.

before the tencent technology has the scoop, youku potatoes around March 2012 after the news of a merger, iQIYI and PPS is the first formal talks with the two sides reached a preliminary cooperation intention, but the contact soon interrupted by PPTV investors softbank founder masayoshi son, son to baidu also proposed iQIYI $400 million, and from the merger of iQIYI PPTV scheme.

PPS President Vincent xue recently in an interview with the media, and love art reached a preliminary cooperation intention after, have discussed cooperation possibility in masayoshi son invited down to Japan. PPS to masayoshi son commitment is at the time, can accept the financing, but cannot be forced mergers and acquisitions – the verbal consent masayoshi son and give the PPS when he hit a $30 million deposit account to show sincerity.

in the son, respectively, after meeting with iQIYI and PPS, iQIYI and a takeover of the PPS still continue to push forward, but behind iQIYI investors baidu and Providence, and PPS investors lianchuang policy source, qiming, PCCW, coupled with softbank and wish to join, lead to different stakeholders differences is too big to be real.

to know people familiar to the tencent technology, according to the baidu to keep iQIYI control against PPS, dissatisfaction with softbank’s horizontal thrust a foot, and balancing the interests of the Providence, so decided to temporarily suspended trading, to solve the problem and Providence. Last November, baidu announced the repurchase of the iQIYI shares held by the Providence, iQIYI into independent subsidiary of baidu.

the PPS had to swallow the bitter fruit for the time being. Smart son successfully blocked the and love in the cooperation, but in to negotiate wholesale funding but shaken, hoping to PPS PPTV mergers and acquisitions as a condition of this, in fighting each other for many years of PPS high-level view, whether it is a strategic value judgment and emotionally difficult to accept. Eventually, PPS rejected Mr. Son financing mergers and put $30 million into a preferred proposal, and decided to return the son of a $30 million deposit.

however, until this year in April, PPTV remained in constant contact with PPS, ask about the possibility of merger. PPS for PPTV, m&a is about to do on a large scale, as a bargaining chip to obtain financing from softbank, even kept independent public may be in the future.

until early this year, in the love and PPS began the second cooperation negotiations, reached a preliminary agreement on March 20th and eventually signed completed mergers and acquisitions, which also determines the competition between PPS and PPTV will continue in the future for a long time.

Started with

in a similar business model, in the face of market environment changes, the same challenges of the PPS and PPTV on development path choice had made different transformation, and the industry trend is difficult to reverse, look will also have the same outcome to be acquired. Overseas listing was no longer is the main melody of the industry, when the Internet giant waving capital began a series of merger and acquisition speakers, when years of their local rivals, PPS commitment Yu Aiji art, after its future path for PPTV has obviously. On the tencent technology previously defined under the background of “big deal era”, the fate of the PPTV behind will depend on the capital strength and the industry’s giants for layout of permutation and combination weigh the advantages and disadvantages with their judgment, and the priority of PPTV, is to increase their weight in future transaction.

source: tencent technology