Investment in the direction of the network video urgently reversed." Get VCs favor is less than a year from last year, a sudden turn for the worse network video has become a hot potato". An investment manager of the global venture capital fund, Germany, bluntly pointed out: after two years of operation, the investment risk of China’s IT new economy continues to increase. We all need to find the next pivot." Analysts pointed out that, if not break the copyright, regulatory and other bottlenecks, and profit model is not clear, the network video will be difficult to continue.
investment direction change
data show that from the beginning of 2006, the domestic video internet sites rely on copying the U.S. video site Youtube model, attracting a large number of venture capital. Like youku.com has received SUTTER/HILL/FARALLON three VC $12 million investment; UUSEE won the De Fengjie Growth Fund / capital / firm / plateau $2300 investment fund China Sequoia capital invested $8 million 500 thousand /SIG; GGV/ in /IDGVC rich tudou.com; others get millions of dollars of investment grade video website also includes six rooms, I Lok network, PPSTEAM etc..
these investments tend to focus on the most popular of the two segments of the video sharing and P2P streaming technology. Insiders pointed out that, from the perspective of the capital, we are afraid of missing the bus network video, but the video site is still to copy Youtube mode, but failed to establish their own competitive advantage under the capital support.
by the end of 2006, Sina and Tencent and other traditional Internet giants in podcast broadband video resources, video website clashes between the increasingly fierce. VCs are aware that YOUTUBE imitator does not seem to be able to in the fierce competition in the "Red Sea" to find a relatively loose "blue ocean", the investment direction to change.
at the end of last year, the first domestic P2P infringement cases — Shanghai Busheng music culture communication company sued the Beijing flight network music software company P2P software provides a free download music to the user, the Beijing second intermediate people’s court sentenced the defendant to pay 200 thousand yuan. Beijing Jijia intellectual property lawyer Zhou Dandan pointed out that this is the first time the judgment of network video infringement cases in China, as a benchmark, in the future all the video sites are only after obtaining the permission of the copyright holder can be used for commercial purposes. Therefore, how to expand content channels"