the author: Lin Fenglei
recently rumours baidu will acquire PPS, has issued a term sheet, the industry many sources also disclosed that it into the possibility of greatly. But this matter let everyone don’t understand, PPS on baidu what value. The author thinks that, PPS has certain users and the entrance to the advantage, but it really doesn’t need to spend $350 million, a huge sum of money to buy!
first of all, let’s look at the PPS have what value. Analysys analyst zhang Fan explains the selling point of the PPS:
1, in the field of video client, PPS users is the largest. PPS PC client users to break 500 million, in the video, the first place in the client side. The mobile client PPS video users has broken last October 10 million, become the largest number of mobile video applications in domestic users, the market share of thirty percent. These hard hard targets is attractive.
2, occupy the desktop client, more difficult to remove. Compared with web video services, the client once the installation is deprecated cost is relatively high. Users don’t usually go to delete the client. And on PC platform, even close the client, the background of the process has not been closed, still can serve ads or recommended the platform of their own game, electric products, which means that the ability of the business development is higher, this is the web service incomparable advantages.
Fan think, since the client has the above two characteristics, video website expansion program or make homemade drama and variety show, is to expand the brand influence, the ultimate goal is to build a side.
this is all the PC clients of the value of the products has always been, except for some users buy a client back to baidu really works? Total integrated many video industry and VC view, the author thinks, baidu really don’t need to buy PPS:
1, the PPS is the second tier players. Although the PPS are prominent in the client market, but from the point of the total traffic, PPS in the video industry’s top five. Represented by youku potatoes web video service still is the choice of most Internet users.
2, complementary content. IQIYI programs created and PPS are professional content is given priority to, overlapping sex is very high, if iQIYI with the UGC sites stronger complementarity.
3, integration is difficult. PPS and iQIYI is completely different properties. PPS user to through content means, marketing promotion, and with the client, old customers in the majority. But love a lot of drainage from baidu in the flow. In addition, iQIYI relatively high-end positioning, advertisers are big brands, PPS advertising especially on rolling were relatively low. Acquisition of PPS to cover more users and advertisers, but how to digest and integration is a big problem.
4, integration does not necessarily will be successful. Is cool potatoes case, the integration of the utmost benefit is that the increase of the copyright purchasing bargaining power in this PPS obviously can’t give in the contribution to love too much. PPS in the TVB drama and drama deep cover, new purchase is not prominent. Youku CEO Liu Dele potatoes in the fourth quarter of 2012 earnings conference call that the current video copyright youku are the main buyers of potatoes, tencent, baidu and sohu four.
5, acquisition of PPS threat to other video sites is limited. , said zhang Fan the video website has developed into the bottleneck period, the pattern on the PC, there will not be a takeover of a company can suppress another of the company’s situation, future changes in mobile terminal.
environment, video web site or the top five is a listed company, either back against the giants of the “rich second generation”, in this spell resources industry, the independent website is more and more embarrassing. In addition, thunderbolt listed have been stranded on independent the confidence of the client class video company is quite big. PPS prostitution in reason, but from the previous analysis will baidu to $350 million is not optimistic.
source: sohu IT