Two mergers and acquisitions in the video industry in January

        Charles Zhang: Sohu spend 10 billion to 2 billion yuan each year to buy a drama

After winning the 56th website of the well-known video website in Guangzhou, the chairman of Sohu's Board of Directors Zhang Chaoyang appeared on the Guangzhou Appease 56 network. He said that Sohu Video spends 1 billion to 2 billion yuan each year to buy movies and TV dramas. Next year, Sohu will invest heavily in online self-made and custom-made dramas, pushing the Internet platform to catch up with traditional television.

Yesterday, Fan Zhijun, chairman of the new performance of the pptv management committee said that in the next 2 to 3 years, pptv will be brewing.

With the promotion of capital, the video industry is undergoing intense turmoil. Two mergers and acquisitions have taken place in January. Sohu announced the acquisition of the video website 56 of Renren Company at the end of last month. Xiaomi then announced that Hess Capital invested RMB 1.8 billion in investing in iQiyi.
With the exception of Tencent Video and LeTV, video sites currently at the forefront of the industry have basically experienced capital alliances.

Yesterday, Sohu chairman Zhang Chaoyang stated that in the past few years, the video industry has been a big capital acquisition, such as Youku’s acquisition of potatoes, Baidu’s acquisition of iQiyi and the acquisition of PPS, Suning’s acquisition of pptv, and Sohu’s acquisition of 56 nets is not a complete fight. Complementary advantages. In addition to the entertainment copyright content that Sohu Video is best at, the 56-net can be used to supplement rich content such as long videos and homemade content.

Also facing the integration issue are Suning and pptv. Yesterday, Fan Zhijun, Chairman of the Xinpeng Ren PPTV Management Committee, stated in an e-mail that “the board of directors has now established a management committee that includes the top pptv executives and will perform the duties of the CEO.” This means that the original CEO's departure is inevitable. In order to cheer on the staff, he said in an email that in the next 2 to 3 years, pptv will be brewing.

Industry Supervision Becomes Hot

The video industry is adapting to increasingly stringent regulatory policies. In the middle of this year, the State Administration of Radio, Film and Television reiterated document No. 181, emphasizing that terminals such as Internet TV and boxes must obtain content monitoring of seven licensees, which makes a batch of licensed companies in the A-share market extremely hot.

At present, in several mainstream video websites, iQiyi is the shareholder of Galaxy Internet TV. Tencent is the shareholder of TV in the future. Youku Tudou made a stake in Guangdong in August of this year, and LeTV established a TV set including Super TV. In the more complex ecology, Sohu Video has reached a strategic cooperation with Superior Pengle, backed by Guangdong Radio and Television. This shows that there is a very low probability that the future of the video industry will become dominating. The more common practice for participating companies is to use complementary and complementary resources to achieve reciprocal benefits.