On January 5th, PPTV held a New Year media meeting. Suning executives made their first official appearance collectively, and at the same time released PPTV's new business model and 2015 development strategy.
According to Fan Zhijun, chairman of the PPTV management committee, PPTV will establish a business model of e-commercialization and O2O. In 2015, it will increase its input into content, and through the newly released PP radar and PP cloud products, it will achieve accurate advertising and expand 2B business.
PPTV New Year Planning: E-Commerce + O2O + Life Services
With Suning being the main PPTV, PPTV announced that it will establish new business models around e-commerce, O2O, and life services.
Fan Zhijun believes that the traditional Internet video industry's profit model is not sufficient to support its own development. For this reason, PPTV will cooperate with Suning to establish an O2O model for the video industry. Specific application scenarios include embedding product advertisements in videos to guide users to purchase and provide users with life. Service video and other commerce application scenarios.
In accordance with the newly established business model, PPTV mainly implemented the following measures in 2015.
The first is to increase the input of content. According to Fan Zhijun, chairman of the PPTV management committee, PPTV will invest 3 billion yuan in content in 2015. Specific measures include the establishment of a PP film company, investment in at least one phenomenon-level TV program, and 20 films that can be played on the cinema.
Secondly, PPTV will also expand its sales of terminal equipment. The target is to have hardware sales of more than 4 million units and more than 30 million active users. The sales volume of smart hardware must achieve the top three in the Internet video industry, and Suning will also provide full efforts in the channel. stand by.
In addition, PPTV also launched two new products, PP Radar and PP Cloud. According to Huang Yanlin, vice president of advanced technology products of PPTV, PP Radar can identify people and objects in video content to facilitate accurate placement of advertisers, and it can also ensure the user experience while breaking the single delivery model of the advertisement.
Suning's digital content service dream
Currently, Suning is combining the Suning flagship store, Suning Life Plaza, Suning Tesco, hardware and software, digital content services, e-commerce shopping and other fields, to the capital market to describe a modern digital content and life service circle concept, try to build a mobile phone + tablet + TV + cloud service + software store + ROM + operator's full industry chain model.
Taking over PPTV is very important for Suning, which is currently trying to build a full-chain model of software and hardware.
Sun Weimin, deputy chairman of Suning Commerce, said in an interview with the media that there are "three commodities" in the transition of Suning's cloud business model: physical goods, content goods, and service goods. Content products are a very important part of future Suning product management, including digital books, music, and video. If you do not manage these things, Suning is not the concept of cloud quotient.
By using PPTV, Suning can make up for the shortcomings in the consumption of digital content on the one hand, and in the future it is possible to open up the common between video and online shopping and realize the ubiquitous screen in smart home systems. On the other hand, Suning is trying to build a full hardware and software industry chain model, in the cooperation hardware in the promotion of their own applications. In addition, Suning has created many mobile applications such as Suning App Store, Suning Tesco, Suning Business Travel, Yifubao, Suning Security, Suning Weather, Suning Reading, and Suning Cloud.
As for the future development and market position of PPTV, Sun Jun, senior vice president of Suning, once stated that video and e-commerce are the largest Internet applications at present, from the perspective of the incremental market of smart home and smart life and the impact of the video industry on the cultural industry. There is room for growth in the cooperation between Suning and PPTV.
PPTV twists and turns
This time, Suning’s management has been the second major change in management since PPTV’s acquisition of US$420 million in financing.
Before Suning and Hongyi invested in PPTV, Sohu, Ali, and Hunan Satellite TV had all passed "sex scandals" with PPTV. However, due to differences in the ownership structure and the founder team's dominance, these contacts did not come to an end.
In October 2013, Suning announced the joint investment of Hongyi Investment in the company's benchmark valuation of 420 million US dollars as an online video company, PPTV. Among them, Suning Yunfu invested 250 million U.S. dollars and held 44% of its shares as the largest shareholder of PPTV.
After Su Ning and Hong Yi joined shares, PPTV suffered the first management change. In March 2014, a number of original PPTV executives, including founder and CEO Tao Tao, left the company. Then Lenovo's senior manager Lu Yan became the PPTV CEO, and several Lenovo executives later airborne PPTV.
At the end of November of the same year, PPTV announced that Fan Zhijun, vice president of Suning Yunshang, or served as the third CEO of PPTV, Yin Xia, former head of human resources of Suning Tesco, will be responsible for the PPTV hardware business and confirm that Suning took over management of PPTV. PPTV once again encountered high-level exchanges.
Some analysts believe that the declining performance prompted Suning to take over PPTV.
The tripartite cooperation between PPTV, Suning, and Lenovo was once considered the ideal model for Lenovo TV + PPTV content + Suning channels, but this ideal model has encountered cruel reality.
Suning suffered the largest decline in net profit since its establishment in fiscal 2013. In the first half of 2014, it suffered the first loss in its interim results since it was listed in 2004. Suning officials stated that the reasons for the unsatisfactory performance in the first half of the year include the lack of external power from the company and the loss of investment in PPTV operations that affected investment income of 81.15 million yuan.
Fan Zhijun stated that Suning is still full of information about PPTV. In the situation where the business model has been determined, PPTV will focus on creating an online to offline, media ecosystem from media to e-commerce.
Although from the current situation, Suning's vision for the future has not yet revealed the success of the dawn, but with the Suning Department overall take over PPTV, or will become the touchstone of Suning's entire industry chain business development prospects.
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