Chapter 255 5 billion revenue, strategic investment!(1/3)
For example, the Qiuyun Garment Factory in Jeju contributes a terrifying amount of tax revenue to Jeju every year!
Jeju picked up a large tax-paying factory for free, which is a huge win!
The same is true for the new Meiyou factory in Jiangsu and Zhejiang provinces.
Now introduce it, invest 100 million, and in a few years, you can get back 1 billion in tax revenue, which is the God of Wealth!
It would be strange if cities in Jiangsu and Zhejiang don’t go crazy for such a good project!
"Fortunately we are not going to build a factory in Suzhou Province, otherwise the Thirteen Taibao would have to start working!" Wang Yi laughed dumbly.
Song Sining's beautiful eyes wandered: "The Thirteen Taibao didn't start a fight. The two stars in our province are inseparable."
"What's wrong? Could it be because of the three major factories?" Wang Yi had a guess.
"Yes! Our super mobile phone factory is located in Jeju, and we will invest in building a tablet factory, a TV factory, and a smart home factory. The city agrees with both hands, and the province absolutely supports it, but the island city is not happy!"
"The representative of Daocheng said that Xingyi Technology should be exposed to rain and dew equally and not make Jeju too busy. Xingyi's super mobile phone factory and smart home factory can be located in Jeju. And Xingyi's smart TV factory and tablet factory should be placed in Jeju."
Island City!”
Song Sining said with a smile: "If the island city wants to grab such a big and good project, Jeju will definitely not be willing to do so. Frankly speaking, the island city already has Haier, Hisense, Tsingtao Brewery, and Aucma. It should no longer be greedy... For this matter, both sides have to fight for it."
My face is red and my ears are red, and I haven’t come to a conclusion yet!”
Wang Yi smiled: "I see. But forget about the tablet factory. Tablets and mobile phones are similar, so they should be put together and stay in Jeju. As for the smart TV factory, it can be placed in the island city. There is Hisense over there in the island city, and it is already formed.
Now that we have established the TV industry belt, let’s go there again and join forces to create a highland for the smart TV industry, which can also be a win-win situation!”
"What a good idea." Song Sining's eyes lit up: "This way you can still get the rain and dew."
It would be unrealistic if the four major electronics factories were all located in Jeju. Neither the province nor the island city would be willing to do so, so we should allocate one for a balance.
The most suitable one is the smart TV business.
There is no TV business in Jeju. If we want to build a smart TV industry belt in Jeju, we have to start from scratch, which is not easy.
But in the island city, with Hisense’s TV industry as the foundation, it can develop rapidly without starting over from scratch.
Moreover, it will take time to build the Xingyi smart TV factory, and it will not be put into production until the end of 2012 at the earliest.
Xingyi TV will be mass-produced in mid-2012, so you can find Hisense OEM first!
Hisense's strength in the TV field is still very strong, and its research and development capabilities are also very strong.
We also OEM for many TV brands, especially foreign brands.
In previous generations, Sharp TVs and some American brands were manufactured by Hisense.
There is also Panasonic TV, which has long given up its own factory. Domestic Panasonic TVs are all manufactured in the island city, and are most likely manufactured by Hisense!
In cooperation between the two parties, Xingyi TV lets Hisense produce the products, and Hisense TV can also carry Xingyi video content resources. This can be regarded as a win-win situation.
Just like Xiaomi and iQiyi, Galaxy Kiwi to be precise!
iQiyi can only be used on mobile phones, tablets, and PCs.
If you want to go online on TV, you have to use Galaxy Kiwi, which has an OTT Internet TV license.
The membership fee will have to be doubled. After all, the licensee also gets a part of the membership fee and advertising revenue!
Internet TV licenses were released in two batches in 2010 and 2011:
The first batch: Internet TV stations CNTV (Future TV), BesTV (BesTV), Wasu Media (Washu TV).
The second batch: Southern Media (Cloud Audiovisual), Mango Radio and Television (Mango TV), International Broadcasting Station (CIBN), China Central Radio and Television Station GITV (Galaxy TV).
A total of 7 online TV photo shoots have been released, and there will be no more in the future.
Any video platform that wants to be launched on TV must cooperate with the above seven licensed institutions.
There are two ways of cooperation.
One is to invest in shares and establish a joint venture with an OTT TV licensee to obtain licenses and content broadcast control.
In its previous life, iQiyi, in July 2012, established a joint venture with Galaxy Internet TV Co., Ltd. with GITV, China Central Radio and Television Station, which holds an online TV license, and Suzhou Radio and Television Station.
The Galaxy Kiwi App for TV was subsequently launched, which not only had a GITV license, but also completely replaced the unlicensed iQiyi TV.
It has also integrated the resources of CCTV, Suzhou TV, and the film and television content of iQiyi, thus becoming the first echelon of video platforms and deeply loved by young people!
The second is to purchase licenses and authorizations from licensed companies and cooperate to build an online TV platform.
For example, Bilibili purchased the OTT license from Southern New Media (Cloud Audiovisual) and launched the Cloud Audiovisual small TV app.
Southern New Media provides license authorization and broadcast control, while Station B produces its own content.
Similarly, Wang Yi’s Xingyi Video TV version does not have an online TV license, so it has to choose a license giant to cooperate.
Or invest in shares and become the major shareholder of the licensee's subsidiary.
The licensee provides Internet TV licenses and its own resources, and Xingyi Video provides film and television content and technical support. The two parties have strategic cooperation and in-depth binding.
Or don’t invest, just buy OTT licenses like Bilibili, and create your own content.
Both methods have their own merits.
However, this matter is not urgent. The current licensing policy has just been released and is still in the transition period.
All major video platforms have launched their own TV versions, and they are all operating "without a license."
Top-notch iQiyi TV, Sohu TV, Youku TV, and pirated TV software can be found everywhere.
Even without an Internet TV license, it can still operate in the past few years.
But in 2014, the crackdown began!
iQiyi TV, Sohu TV, Youku TV, and other apps without online TV licenses will all be offline.
Only licensed companies like Galaxy Kiwi, Bestcom, and Wasu TV are left.
Based on this calculation, Xingyi Video TV version still has more than two years of survival.
But in 2014, you have to go offline and work with a license!
In the previous life, LeTV was hammered because it did not have a license. It did not release new products throughout 2014, and its stock price plummeted.
It was not until after long negotiations that I obtained the license authorization from CIBN that I ended my streaking and started my licensed career.
If Wang Yi wants to build Xingyi TV, he cannot be like LeTV and wait until he is beaten badly before thinking of a solution. He must make plans in advance and choose a reliable OTT TV licensee for cooperation.
It's just that the resources of the seven major licensees are different, and their development models and prospects are also very different.
For example, CNTV Future TV, which is owned by CCTV, has the latest news from CCTV, exclusive sports events such as the Olympics and World Cup, popular TV series synchronized with CCTV, CCTV columns, etc.
However, the audience for these resources tends to be middle-aged and elderly people.
Xiaomi TV initially used the CNTV license and content broadcast control.
But CNTV’s content is too old and young people don’t like it.
Most of the users of Xiaomi TV are young people and do not want to watch these.
In order to change this predicament, Xiaomi had to abandon CNTV, invest 1.8 billion strategically in iQiyi, and fully switch to GITV (Galaxy TV).
Since then, Xiaomi TV and Xiaomi Box have been controlled by GiTv and iQiyi content, making them one of the first-tier brands.
Tencent also invested in CNTV, a future TV company, in 2012 to create New TV.
Goose Factory provides content copyright, and Future TV is responsible for broadcast control and operation, and integrates its own CCTV resources and some Tencent resources.
However, in the future, TV will have to control content and operate independently, resulting in unsmooth cooperation between the two parties.
In 2015, Goose Factory took a stake in New Media (Cloud Audio and Video), a subsidiary of Southern Media, another OTT TV licensee.
Both parties jointly launched Cloud Audiovisual Penguin, which was later renamed Cloud Audiovisual Aurora, which later became Aurora TV.
Tencent provides technical support and content copyright.
New Media provides the license and is responsible for broadcast control, operation, and review.
In this case, CNTV cannot consider it because it has no future.
However, GITV (Galaxy TV) and Southern Media (Cloud Audio and Video) can be considered.
However, Southern Media is located in Guangdong Province and is probably more inclined to cooperate with its neighbor Goose Factory.
On the other hand, GITV, China Central Radio and Television Station, is located in Tianjin!
Wang Yidu is considering whether to cut off iQiyi and establish a joint venture company Galaxy Internet Co., Ltd. with the licensed GITV China Central Television in advance.
When the TV version of Xingyi Video is hammered, give up Xingyi TV completely and launch Galaxy TV, then you can start working with a certificate.
This is totally doable.
Compared with Goose Factory, Wang Yi feels that iQiyi is easier to handle.
Picking up soft persimmons does not necessarily mean there will be no difficulties, you have to create them yourself!
Moreover, GITV adopts an open cooperation model, unlike CNTV, which is dominated by CCTV, which is a good thing for Wang Yi.
Under this cooperation, GITV provides the license, Xingyi Video provides technology and content, and jointly invests in the establishment of a new company.
From now on, other TV manufacturers and platforms such as Xiaomi will use Galaxy Network TV's license and content control to earn membership fees, advertising revenue, etc., and all of them will be given to Wang Yi!
To be continued...