On November 8, the Group was formally listed on the main board of the Hong Kong Stock Exchange. As an important part of Tencent’s pan-entertainment ecosystem, the company has launched a large number of online text works, such as the recent explosion models “Gengbang” and “Ghost Blowing Lights”. These works also provide a lot of material for the video industry.

On the same day, the relevant person in charge of Tencent's film and television said that the third quarter of the Ghost Blowing Lights series's online TV drama “Ghost Blowing the Light” was already under preparation and scheduled to be broadcast next year.

At the same time, there was also a real-life reality show "King of the Kings" that was derived from the mobile game "King of Honor" and will be launched in December. At the announcement, Ma Yanxi, vice president of Penguin Film and Television, said that the network has entered the era of super IP. The idea of ​​Tencent's video as a self-made variety show is no longer simply a certain program but a process of creating IP and laying out the entire industry chain.

After years of development, this important segment of the Internet industry has reached an inflection point. As Youku President Yang Weidong said, the video industry has entered the second half.

“At this stage, the development of China’s online video industry is spiraling upwards.” Bao Zheng, head of the Digital Culture Working Group of the Ministry of Industry and Information Technology of the Ministry of Industry and Information Technology, explained that in the early days of the industry, the content of video was UGC (User Generated Content). The main short video. However, due to the difficulties of profitability and the trend of video legalization, compared to short videos, long videos are more competitive in terms of profitability through membership payments, advertisements, and other forms.

"But these years, under the boost of the live broadcast boom, short video has risen again," said Bao Zheng.

Zhu Min, an associate researcher at the Communication Studies Institute of the Communication University of China, stated that in 2016, the industry was regarded as the first year of short video, and the addition of capital and giants pushed it to the point. It is undeniable that short video is becoming a new entrance to Internet traffic. From the rapid rise of major short video platforms to the one billion broadcasts of headline videos every day, to China’s largest short video “distribution+play+social” platform built on Weibo and second beats, the old veteran social platform also leveraged on microblogging. The short video platform ushered in the "second spring", where short video shows its power.

In the past three months, the development of the net drama has also seen an explosion of blowouts. "God of Rivers", "The White Night", "The Crime of No Card", "The Spring Breeze Is Better Than You" and so on have all become explosions this year. Bao Zheng believes that the quality of excellent online dramas and traditional TV shows is comparable. This year's "China's Hip-Hop" fire has exceeded 2.7 billion.

Bao Yu introduced that the Internet information consumer products are pursuing the maximum occupancy of the user's time. Long video products fill up the relatively concentrated time of users, short video products fill the user's fragmentation time, and the short video's return and explosive growth meet this characteristic.

Today, the "second half" judgment has become the consensus of the Internet world.

"Now people who are surfing the Internet are surfing the Internet. People who use mobile phones to access the Internet use their mobile phones." Bao Yu believes that nowadays, the video's possession of users' time slots has become saturated, and the video industry has entered the post-bread period. The period of violence has become a thing of the past. Now, excavating the demographic dividend can only hope for the slow and natural increase in the number of netizens.

"In addition to the post-demographic dividend era, the post-product bonus era has also come." Bao Zheng told the Science and Technology Daily reporter that in the past, long video was playing a leading role, and the content of live broadcasts and short videos had not yet been discovered. Today, long and short videos go hand in hand and work together to squeeze users into various time periods, but there is not much room left to dig. The dividends of the original video service are gradually disappearing, and new video service formats such as VR and AR still need to make breakthroughs in technology.

Sun Zhonghuai, the CEO of Penguin Film and Television, stated that the online video industry is in a period of rapid development. At present, there are 560 million Internet video users in China, and the number of video paying users will exceed 100 million by the end of the year.

Bao Yu introduced that at this stage, the scale of paying users in the online video industry has entered a stage of stable development. After a long period of user education, consumers have developed paid viewing habits. At the same time, the convenience of moving micro-payments and the pursuit of high-quality visual enjoyment by users have made more and more users willing to pay for premium video content.

In addition, online works also face the dilemma of the theme exhaustion. In Bao Zheng's opinion, the current content of the Internet drama has covered most of the subject matter, and the theme bonus gradually disappeared.

“The arrival of the industry after the dividend age also marks the basic maturity of this industry.” Bao Yu introduced that from the market structure, iQIYI, Youku, Tencent have formed a three-way situation, which has strong capital behind them. Support, market share and traffic share have basically been divided. In this case, the "Internal Strength" competition became the focus.

Zhu Min introduced that the video industry has now entered the stage of ecological competition, and the IP form is no longer confined to a single video, but is presented as a “cross-border”.

The three video companies iQiyi, Youku and Tencent video rely on Baidu, Ali and Tencent respectively. Among them, Ali and Tencent have established cultural and entertainment groups. In addition to videos, they also involved in online literature, production companies, games, derivatives and other industries in the midstream and downstream businesses. Iqiyi’s major shareholder, Baidu, ceased literature, film, games and other sections due to strategic adjustments. However, iQiyi created literary, film, game, and derivative business units through internal incubation.

Yang Weidong once said that the full-link digestion of IP from the perspective of big entertainment is a question he often wants to think about. Seeing "The White Night Clashes" is on fire, he will immediately call Ali Literature and quickly get the book done. The theme song of "The White Night" continues to be on-line and the entrance to music and books will surely be opened under the video of "The White Night".

Irene Consulting analyst Zhang Xintian said that most of the previous video business businesses purchased copyright and did not produce content. In recent years, due to soaring copyright prices, the video industry's operating pressure has also increased. The current stage of competition is the nature of the entire industry chain. The video industry continues to strengthen the control of IP and derivatives and other products. High quality content has become the focus of competition.

Yang Weidong believes that the biggest change in the video industry is the qualitative change in the relationship between the platform side and the content side. Today, whether it is an episode, a variety show or an animation, when a content is still a planning case or idea (creative), the cooperation between the platform side and the content side begins.

Zhu Min said that in the long term, the online video market will show an upward trend. In addition to increasing investment in quality content and continuing to attract users, video companies will continue to try new marketing models. For example, based on the advertisement of a piece of advertising, the company continuously expands the extension of advertising forms and continuously expands its revenue without harming the user experience and interests.

Zhu Min believes that in the coming year, video companies will substantially increase their original content investment, and content-based native advertising will be used to deeply implant ads. Advertising formats such as interlude advertising may become the mainstream of video advertising in the future. Video value-added services will become the second source of revenue for video sites other than advertising revenue.

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