Wang Xiaohui flattered him first and said with a smile: "Mr. Jing, I can't hide it from your discernment! Phoenix Video's video website imitates HBO. It can produce high-quality products and top-notch dramas, but it is difficult to dominate the world.
iQiyi is learning from Netflix to conquer the city, but there are various limitations in the country. The film and television censorship system alone is enough for iQiyi to drink a pot. It is simply impossible to produce TV series as desired.
The opportunity for iQiyi to grow lies overseas! This vigorous development in Hong Kong Island can be said to have achieved a bridgehead. As long as it succeeds, it will definitely be able to replicate its success in Japan, South Korea, Southeast Asia and other regions. By then, iQiyi will take off.
As for domestic video website competition, or streaming media competition, we still have to look at our Qiyi TV. So I want to apply to Mr. Jing to let Qiyi TV be listed on the market, whether it is in the mainland or on Hong Kong Island.
I want to expand the channels for raising funds as much as possible after going public in order to compete with Youku and Tencent Video. At present, our Qiyi TV is being suppressed miserably."
Previously, Mr. Jing asked Phoenix Bank to provide a loan of US$500 million to Qiyi TV, which was still called "Qiyi Super Media" at the time, to maintain operations and recover the equity.
Speaking of my own son, Qiyi TV’s ranking is really better than iQiyi.
iQiyi was listed on the U.S. stock market in March 2018. As of May 2019, it has already returned to Hong Kong Island for listing. Moreover, it is listed under the AB share system.
The main shareholders are: Phoenix Group, Baidu, Hillhouse Capital, Xiaomi Investment, Sequoia China, and the founding team.
Among them, Phoenix Group holds about 60% of the shares, and will continue to reduce its holdings at high levels. It previously reduced its holdings by 8%. The development of iQiyi requires funds!
According to estimates by industry insiders, Uaiteng's three video websites each burned approximately 100 billion yuan in funds in ten years. The result was that domestic entertainment was directed to traffic stars! It was a mess.
After iQiyi was sold to Phoenix Group by Baidu, it wanted to keep up with Cat Factory. Goose Factory invested heavily in the video website and chose to sell shares to raise funds!
Therefore, iQiyi's shares are still dispersed to a certain extent. And this trend will continue.
Because of the AB share model, Phoenix Group only needs to obtain more than 50% of the voting rights to control the company, and does not need to hold more than 50% of the shares to control the company.
On the other hand, Qiyi TV was formed from redundant departments that were spun off by iQiyi when it was first established. Of course, there were also several film and television drama production departments that were unwilling to follow Gong Yu’s “Netflix” model.
They are all used to being capital and dominating everything in production, so they are unwilling to engage in a "playwright-centered" model where the screenwriter is the center.
Qiyi TV was in a precarious situation, and many investors were not optimistic about it. The funds on the books could only support it for two or three months. He had to go to the well and get a total of 500 million US dollars to survive. This actually allowed Qiyi TV to use less funds.
Most of the equity was recovered.
The current shareholding structure of Qiyi TV is: 90% of Phoenix Group and 10% of internal employees.
The reason why internal employees can hold this proportion of shares is because the company can only appease people's hearts by issuing stocks to all employees in times of extreme danger, expressing that we will live and die together.
…
Jing Gao laughed when he heard this. He knew that Wang Xiaohui and he were not of the same mind. Sure enough, they really wanted to develop in the cesspool of internal entertainment!
However, even if Qiyi TV becomes the first long video website for domestic entertainment, will he value Qiyi TV in his heart?
Will not.
The ancients said: Literature conveys the truth. In his heart, the enterprise is a vehicle to realize his ideals, not to make money!
He is a great man, but what is missing is money?
What’s bad is the influence!
What’s worse is the sense of accomplishment of changing society and the world on your own!
Jing Gao took a sip of tea and spoke fragrantly: "Old Wang, tell me, why is it that iQiyi imitates Netflix's operating model and cannot expand in China?"
He did not follow Wang Xiaohui's train of thought and was temporarily noncommittal on whether to promote Qiyi TV to the stock market.
Wang Xiaohui dared to speak in front of Jing Gao, so he was naturally prepared for all kinds of rhetoric. Across the oval conference table, he said calmly: "Mr. Jing, not to mention the hidden dangers of the Netflix model itself.
When it comes to iQiyi trying to imitate Netflix in China, there are currently four major problems.
First, the censorship issue I just mentioned. Nowadays, the censorship of online dramas is a little looser than that on the screen, but tightening it is definitely a general trend. This determines iQiyi’s room for maneuver.
Second, the copyright issue. At present, the copyright of film and television dramas has not been completely resolved. There is a lot of piracy on the Internet. This restricts companies that use membership fees as their main profit model.
Third, the current domestic film and television drama production has not yet formed a complete industrial chain, but is a small workshop production model. This means that it is very difficult to collect a large number of good dramas like Netflix.
Mr. Jing, don’t look at the fact that the production level of domestic entertainment has dropped all the time on the Internet, but in fact, most of the dramas that can be starred in and online are high-quality products in production, and more of them are a large number of shoddy works!
Fourth, the number of paid members of iQiyi cannot reach the size of Netflix. This is an innate ceiling. Netflix relies on the United States and has the ability to harvest members around the world. If iQiyi is only in China,
, there is no possibility of growth in paid membership.
We have tried our best over the years, but there is no possibility of large-scale growth in the paying members of the three Youaiteng families.
This is my reason. Domestic video websites still have to adopt the profit model of sharing contracts and traffic."
Jing Gao placed the tea cup on the conference table, watched the tea leaves in the cup rise and fall, and said leisurely: "But I don't like this profit model!"
There is always something to pursue in life.
He is already a tycoon, surpassing the entertainment industry's capital by at least three levels. Sequoia China, the current top capital in domestic entertainment, is almost the same as his younger brother in front of him.
So why can’t he shape his own business according to his own wishes and drive the internal entertainment ecosystem?
Wang Xiaohui: ""
He talked for so long, but he didn't expect that Mr. Jing would give this answer: I don't hope!
Mud, if you have money, you are awesome!
Wang Xiaohui stood up and left in frustration: "Mr. Jing, I've finished my report. Goodbye!"
Looking at Wang Xiaohui's stumbling back, Jing Gao tapped the table with his right index finger twice and said: "Old Wang, don't even think about listing on the A-share market. I've wasted a lot of energy on the listing of Phoenix Films, which will probably be over soon.
Qiyi TV should be listed on the Hong Kong stock market! I will ask the investment department of Bank of East Asia to be your underwriter."
Bank of East Asia and LP Investment Group have merged to become Southeast Asia's leading investment bank! It is also a large hybrid bank! Its various businesses are complete. Stock underwriters are one of the businesses.
Wang Xiaohui never imagined that there would be such twists and turns. He turned around and bowed deeply: "Mr. Jing, thank you! On behalf of all my colleagues at Qiyi TV, I would like to express my gratitude to you!"
Jing Gao smiled and waved his hand: "Old Wang, since you admire the profit model of Qiyi TV, let me see your future performance. Go ahead!"
Wang Xiaohui: "Hey." As a person in his forties, when he turned to leave, he felt moved by being cared for by his parents.
This chapter has been completed!