LeTV's 2015 financial report disclosed on March 18, 2016 showed that the annual revenue reached 13.017 billion yuan, an increase of 90.89% year-on-year, and net profit was 217 million, an increase of 68.57% year-on-year. In the case of widespread loss of domestic video sites, LeTV, which has remained profitable for nine consecutive years, is a heterogeneous group. And LeTV, super mobile phone is also to take the people-friendly route, a great contribution to revenue but basically no profit, even in the "lose money to sell."
What are the secrets of LeTV's continued profitability?
The first thing to know is how LeTV is going to land A shares.
LeTV’s earnings are forced out by the A-share listing system. There is no qualification for listing even if it is not listed on the stock market.
LeTV has two business lines when it is listed: online video basic services and video platform value-added services.
Both of these lines of business have considerable profitability. The former includes four businesses:
1) Free standard definition video through LeTV and client;
2) Relying on a large amount of copyright content accumulated in the early stage, LeTV launched a copyright distribution business (customers include Youku, Tudou, Thunder, and Pollock);
3) SP service with telecommunication operators (main mode is divided into mobile phone charges);
4) In 2008, UGC mode video sharing service was launched. In February 2010, there were 3.4 million registered users.
The latter includes advertising and "splitting" services (pouring traffic to other sites).
LeTV summed up the "copyright + user + value-added" trinity business model, based on genuine content, to provide high-definition video service to paying users, to provide free video users with standard definition video service to earn advertising and distribution revenue (back to games, e-commerce and education Websites, the conversion rate in 2009 was 2.15% and the fee was 47.24 yuan per person.
Paying users has always been an important pillar of LeTV. In 2007, it contributed 32 million revenues and exceeded 100 million in 2010. During the same period, as a result of the rise of other businesses, the share of revenue in this segment of revenue fell from 86% to 41%.
The revenue from advertising and user shunting increased from 5.28 million in 2007 to 80 million in 2010, and the proportion of revenue from revenue increased from 14% to 32%.
Copyright distribution income from scratch, reached 53 million yuan in 2010, accounting for 21% of revenue.
LeTV collects revenue from three sources: paying users, copyright distribution, and advertising. Although the scale is modest, the financial status and “burn money + piracy†are arrogant, only PV is a map, and other video websites rely solely on advertising business have a great deal of difference. do not. Only in this way, Leshi can meet the financial requirements for listing on the GEM.
As of June 2010, LeTV.com ranked 173 in alexa Chinese, not only far behind Tencent (2nd), Youku (9th), Sohu (10th), Tudou (13th). ), Thunder to see (21st), Ku6 (22nd). Compared with Exciting Network (68th), PPS (95th), Time Network (129th), PPTV (133rd), and Interroom (147), it was much less.
According to incomplete statistics, at the time more than 30 video sites in the country received a total of $1 billion in venture capital. A well-known venture capitalist's "due diligence" on LeTV concluded that: Where does anyone pay for copyright? How can I charge my users? This is a hopeless company!
When LeTV, which ranks behind PV, became the first video site to be listed on the A-share market, the “unabashed†attitude of “friends†and the cold eyes of bystanders can be imagined.
As early as 2012, iQiyi CEO Gong Yu stated that “Video website profitability has been barrier-free.†However, until 2015, Youku potatoes still followed the opposite direction of profit: In the first three quarters, the net loss was 1.3 billion. 2.5 times the same period in 2014! Iqiyi did not disclose its performance, but if it weren’t a huge loss, Baidu would not be stripped of it for US$2.8 billion.
The video websites that were ranked in front of LeTV did not have a single profit yet. They were also closed. They had been handcuffed several times. The more you lose, the more Youku potatoes have been withdrawn from the United States, but you want to return only to the strategic emerging board.
Contrary to many video websites, LeTV has been profitable for nine consecutive years. Although the net profit is only about 200 million, and the profit rate has dropped from 40% to 2%, it is still commendable.
The road to life is long but the key is only a few steps, so is the enterprise. The earliest hands-on accumulation of copyrighted content, the development of paying users, and the insistence on “combination of software and hardware†(from set-top boxes to mobile phones to television) are the three most important steps for LeTV. Looking back, the general direction and timing are correct.
Acquiring and maintaining the A-share listing status with continuous profit, LeTV has four secretaries in terms of copyright, membership and accounting standards.
The first thing to know is how LeTV is going to land A shares.
LeTV’s earnings are forced out by the A-share listing system. There is no qualification for listing even if it is not listed on the stock market.
LeTV has two business lines when it is listed: online video basic services and video platform value-added services.
Both of these lines of business have considerable profitability. The former includes four businesses:
1) Free standard definition video through LeTV and client;
2) Relying on a large amount of copyright content accumulated in the early stage, LeTV launched a copyright distribution business (customers include Youku, Tudou, Thunder, and Pollock);
3) SP service with telecommunication operators (main mode is divided into mobile phone charges);
4) In 2008, UGC mode video sharing service was launched. In February 2010, there were 3.4 million registered users.
The latter includes advertising and "splitting" services (pouring traffic to other sites).
LeTV summed up the "copyright + user + value-added" trinity business model, based on genuine content, to provide high-definition video service to paying users, to provide free video users with standard definition video service to earn advertising and distribution revenue (back to games, e-commerce and education Websites, the conversion rate in 2009 was 2.15% and the fee was 47.24 yuan per person.
Paying users has always been an important pillar of LeTV. In 2007, it contributed 32 million revenues and exceeded 100 million in 2010. During the same period, as a result of the rise of other businesses, the share of revenue in this segment of revenue fell from 86% to 41%.
The revenue from advertising and user shunting increased from 5.28 million in 2007 to 80 million in 2010, and the proportion of revenue from revenue increased from 14% to 32%.
Copyright distribution income from scratch, reached 53 million yuan in 2010, accounting for 21% of revenue.
LeTV collects revenue from three sources: paying users, copyright distribution, and advertising. Although the scale is modest, the financial status and “burn money + piracy†are arrogant, only PV is a map, and other video websites rely solely on advertising business have a great deal of difference. do not. Only in this way, Leshi can meet the financial requirements for listing on the GEM.
As of June 2010, LeTV.com ranked 173 in alexa Chinese, not only far behind Tencent (2nd), Youku (9th), Sohu (10th), Tudou (13th). ), Thunder to see (21st), Ku6 (22nd). Compared with Exciting Network (68th), PPS (95th), Time Network (129th), PPTV (133rd), and Interroom (147), it was much less.
According to incomplete statistics, at the time more than 30 video sites in the country received a total of $1 billion in venture capital. A well-known venture capitalist's "due diligence" on LeTV concluded that: Where does anyone pay for copyright? How can I charge my users? This is a hopeless company!
When LeTV, which ranks behind PV, became the first video site to be listed on the A-share market, the “unabashed†attitude of “friends†and the cold eyes of bystanders can be imagined.
As early as 2012, iQiyi CEO Gong Yu stated that “Video website profitability has been barrier-free.†However, until 2015, Youku potatoes still followed the opposite direction of profit: In the first three quarters, the net loss was 1.3 billion. 2.5 times the same period in 2014! Iqiyi did not disclose its performance, but if it weren’t a huge loss, Baidu would not be stripped of it for US$2.8 billion.
The video websites that were ranked in front of LeTV did not have a single profit yet. They were also closed. They had been handcuffed several times. The more you lose, the more Youku potatoes have been withdrawn from the United States, but you want to return only to the strategic emerging board.
Contrary to many video websites, LeTV has been profitable for nine consecutive years. Although the net profit is only about 200 million, and the profit rate has dropped from 40% to 2%, it is still commendable.
The road to life is long but the key is only a few steps, so is the enterprise. The earliest hands-on accumulation of copyrighted content, the development of paying users, and the insistence on “combination of software and hardware†(from set-top boxes to mobile phones to television) are the three most important steps for LeTV. Looking back, the general direction and timing are correct.
Acquiring and maintaining the A-share listing status with continuous profit, LeTV has four secretaries in terms of copyright, membership and accounting standards.