Why didn’t Chen Hao take over the first fire?

Before the "grandfather of the portal" Chen Hao joined Xiaomi, Lei Jun once said that Xiaomi's box and TV, "content may not be the most abundant," released the ambition to lay out Internet video. Nowadays, with the death of the evasive evacuation incident, Chen Hao, who had just served for 9 days, ignited his "first fire."

On November 12, at the media briefing of Youku Potato, Chen Xi disclosed that Xiaomi had confirmed a strategic cooperation with Youku Tudou and will purchase Youku Tudou shares in the secondary market, involving a capital of tens of millions of US dollars.

According to both parties, in the future, in-depth cooperation on content and technology will be carried out in the field of Internet video, together with the development of technologies such as video mobile-end playback, and close cooperation in self-produced content and co-production, production and distribution.

Why do you hand video sites?

A year ago, Youku Potato had sued Xiaomi for the infringement of 10 plays, including “Beijing Youth”, due to Xiaomi's box. One year later, the market environment of TV boxes became more confusing due to policy risks. At this point, Xiaomi, holding a video website, what is it like?

In the current market capacity, the video is a well-deserved content "tuyere". Although the current major video sites still have significant losses in their books, it is clear that the importance of the BAT giant’s frequent actions at the film and television level in recent years has become apparent.

In fact, Xiaomi's genetic defects in content have formed a short board since he set foot in the field of television. No one wants to buy a television that lacks content, especially in the context of strict controls on third-party content.

Compared to LeTV, benefiting from the rapid expansion of the content of LeTV.com's [0.00% Money Research Report], Xiaomi has to fall into the content field and complete the key link of “integration”.

On the other hand, millet, which has been stopped and named by the General Administration of Radio, Film and Television, due to license issues, must also change the passive situation.

"After taking shares in Iqiyi and Youku Tudou, Xiaomi has multiple insurances for licenses and can avoid detours." To this point of view, Analyst Analyst Roland International agrees. At the same time, Roland believes that Xiaomi can also move the resources of Youku Tudou to enrich its content on its collaborative photography platform iCNTV.


Why is Youku Potato?
From the perspective of the current user size and market revenue of video sites, Youku Potato and Iqiyi ranked the top two in the market. According to media reports, the whereabouts of Xiaomi's next investment has been basically clear, and will invest $300 million in iQiyi.

Whether it is the legendary iQIYi or the Youku Tudou, which has been formally announced this time, in fact, the investment in these contents has already reached the general direction before Chen Hao officially entered Xiaomi Technology.

The reason for choosing Youku Tudou for this initial investment was precisely because Xiaomi valued its important position in the video website industry. As the leader in the video platform industry, Youku Tudou has exceeded 500 million multi-screen monthly unique users and has more than 800 million daily playbacks. The self-produced content accounts for more than 10% of the total traffic, and has accumulated a large number of fans with "Maid Goddess", "Monuments" and other self-made programs as well as "Potato Image Festival" and "Youth Choice" activities.

In the short term, the investment in Youku Tudou can be seen as a gift for Xiaomi to give good soil, paving the way for better cooperation in the future.

On the other hand, Youku Tudou’s potency cannot be underestimated. "Military Emperor" Xiaomi's recent short play, "A trip of a steel plate," has been widely spread through channels such as Youku, Weibo, and WeChat, and has fully established momentum for the listing of Xiaomi 4 mobile phones.

In the long run, Youku is Xiaomi's experimental field in the field of Internet video: if the cooperation with Youku Tudou is successful, then Xiaomi Technology will cooperate with other more content providers. These content providers may be video content, and may also be other forms. Content.

However, people in the industry said that the investment space Youku potatoes leave for Xiaomi may not be large. Prior to this, Alibaba.com had staked Youku Tudou with 1.22 billion US dollars, holding 16.5% of the shares. With a view to acquiring Youku Tudou to open up an important part of the video industry chain, Alibaba will certainly not want to empower Xiaomi. Therefore, this millet or will invest tens of millions of dollars through the secondary market (US stock market) to share in Youku potatoes is the most likely to speculate.