The network video industry has become increasingly fierce: LeTV Tudou Strategic Cooperation (VC325)

"LeTV's potato chips no longer worry about producing raw potatoes", such an interesting comment appeared on Weibo.

A few days ago, LeTV and Tudou.com once again facilitated a large-scale capital-level cooperation in the online video industry. The two parties announced that they will formally establish a strategic cooperative relationship and jointly build a video cooperation platform. At the same time, they will jointly invest in the establishment of a joint venture company with 51% equity in LeTV.com and 49% equity in Tudou.com.

The cooperation between LeTV and Tudou coincided with the large-scale entry of radio and television systems. In the future, video websites will adopt a joint vertical and horizontal model to become mainstream, and the dominant trend of major industry brands is becoming more and more prominent.

LeTV Tudou promotes cooperation at the capital level

At the official signing conference of LeTV and Tudou on October 18th, the two sides announced the joint launch of the video platform. The cooperation lasted for two years and involved more than 50 million yuan each year.

It is understood that the domain name launched by the two parties is under the LeTV main domain name, the entrance is on Tudou, the traffic is to LeTV, and the server is provided by LeTV.

According to reports, LeTV currently pre-locks 50% to 60% of the copyright of the hit TV series network in 2012, and 40% of the hit TV series network coverage in 2013. Tudou.com, a partner of LeTV.com, has more than 80 million cooperative users, with an average monthly number of more than 200 million users.

The copyright content is too scattered is the "heart disease" of China's online video industry. Tudou and its competitor Youku have been deeply involved in copyright disputes. "Under the background of the clear pattern of the entire online video industry, establishing a healthy and innovative model to integrate and standardize video content, resources and distribution channels is the strategic cooperation between Tudou and LeTV this time and the launch of a model The original intention of an open copyright joint venture. "Wang Xiangyun, COO of Tudou.com.

Regarding whether the capital of both parties will be reorganized, LeTV COO Liu Hong said: "There is suspense."

Enemies join hands to form an alliance to fight

Even though they are rivals in the industry, in order to reduce the cost of their respective video copyright purchases, it is already not uncommon to adopt joint procurement. In February 2010, Youku and Tudou announced an alliance and jointly launched the "network video simulcast mode", the two sides will share their own field of video unicasts.

Insiders pointed out: "In an industry that has not yet fully competed and needs to unify and improve standards, the competition between video sites has gradually penetrated into the competition at the capital level. Video sites have become a way to deal with competitors' difficulties and reduce costs. policy."

Three years ago, the second camp of online video Ku6.com and Shanda completed the combination and filed multiple infringement lawsuits against Youku. Youku and Tudou had to form an alliance to confront each other. The video of the reposting function of Youku and Sina Weibo in November 2010 is also regarded as "the marriage of portal first and video first".

After the industry competitors acquired copyright, the two parties quickly entered into an alliance, filed intensive lawsuits against third-party copyrights, and initiated difficulties. At the same time, the broadcast and television system entered the field of online video in a big way, giving another impact to online video sites. The cost of broadband is high, and under the pressure of huge copyright costs, in the increasingly brutal competition, most video sites choose to fight alliances.

Liu Hong believes: "This cooperation for Tudou can avoid the high cost of copyright purchase, or fall into the irrational competition between the two, which helps rationalize the entire video industry in the area of ​​copyright competition. Or it's the fit of our alliance to build a plan. "

"I hope that everyone will unite and gain a greater right to speak with the upstream. The weight of the Internet has become higher and higher. In the future, we can get the same right as the TV station. It should not be a dream." Gao Fei, editor-in-chief of LeTV.com, said .

The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting.

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