Stop burn music as sports slimming self-help

Thin body sports profit financing

beijingshangbao· 2016-12-07 08:35:44

music as its "scenery" sports is experiencing the pain of change. In December 6th, the media exposure that music as sports will cut 20%, the outgoing chief editor of Ming ao. LETV sports then disclosed that complete organizational change and new personnel adjustment, the media content, the original event operations, intelligent hardware and Internet applications four business modules change into three business groups, and the layoffs denied. Behind a series of changes, and the high cost of copyright is not clear profit model is suspended in the music as sports head Damour Damocles sword, let the music as sports reform added difficulty.

organizational change triggered layoffs storm

following the music, as the music video, music, as sports also announced a new organizational change and personnel adjustment. The establishment of a new three major business groups, respectively, for the new media and online business group, the line of business and sports business group business. Among them, new media and online media business group covers business, gaming division, lottery division and member service center, providing comprehensive online sports service for the three end user PC, mobile, Internet TV, responsible for CO President Liu Jianhong. The next line of business to business group events including the operation center and industrial center and fitness division, to provide professional services for competition, sports leisure and fitness line for sports population, responsible for the music as sports CMO strong wei. The sports consumer business group including equipment division, intelligent terminal business, business sales and service center, intelligent Research Institute, the equipment division to music equipment company independent presentation, as president Zhang Zhiyong as the body of music equipment company CEO. LETV

pointed out that this structure is intended to accelerate to seize the online and offline sports user entrance, cultivation and promotion of consumer behavior Chinese sports industry. On the other hand, will protect the company's fine operation. Each business unit has become an independent business entity, to develop a reasonable P&L, strict implementation of KPI assessment. Its business person in charge of both the corresponding operating rights, but also to bear the relevant performance indicators.

also yesterday, the media to disclose the music as sports architecture to adjust the further details. Among them, the music, as the sport has decided to cut the overall staff, the rate will reach 20%, the intelligent hardware sector layoffs will reach 50%. Music as sports editor Ao Ming has submitted his resignation, the outgoing. At present, the music as sports staff, the total number of about 1000 people, means that there will be 200 people face to be cut. Another source said, music as sports layoffs of 50%, only to retain the R & D and a small part of the product line, the company estimates 1000 people to lay off more than 500 people.

for the news, music, as sports has been denied. Music as sports, said the Department of 20% layoffs Department of misreading, the so-called layoffs, is about 10% of the "optimization", different departments are not the same, the specific optimization ratio according to the actual operation of the business. In addition, LETV sports said in Ao Ming editor work.

ease the pressure to ease the money into a priority

music, as sports, although the denial of layoffs, but to ease the financial pressure is imperative. At the beginning of November, Jia Yueting in an internal letter bluntly, the company's financial and organizational pressures increasingly prominent. And stressed that the future of the non-listed company plate business to business oriented, listed companies in order to achieve a comprehensive profit as the goal. Earlier, music, as the TV and music as mobile phones are also constantly increasing the user's operation and control costs by way of improving business profitability. Industry analysts pointed out that the music as sports architecture change is to deal with the purpose of financial pressure. Just two years, the music as sports from a video channel quickly became the star of the whole industry chain across the industry chain, pay a high cost of funds, especially the purchase of sports events.

in the Hongkong area, the music as sports to more than 200 million euros in the price of 2016-2019 years to win the Premier League match. In Chinese mainland, pay $20 million and ATP signed a five year contract year new media broadcast, 110 million yuan to win the England Super League, 300 million yuan to buy the octopus 100 million yuan TV, named Guoan Football team, won 2 billion 700 million yuan in the network broadcast rights alone. In addition, music, as has also won the WTA tour, the world Formula One Championship, Brazil Football League, the Chinese women's Football League, the international Champions Cup China, Italy Football League and so on. Music as sports external propaganda, with up to 310 of the world's top sports events. These events are often copyright cooperation cycle is a few years, the need to regularly pay the cost of copyright, that is, the music as sports want to maintain these events, the annual need to pay a certain amount of copyright fees. Informed sources have revealed that music, as sports have 50% contract payments to be paid.

present, copyright music as sports as the main source of financing, information, music as sports as of now completed two rounds of financing, which in May 2015 to complete the A and A+ round of financing 800 million yuan, 8 billion yuan in April 2016 to complete the B round of financing. Music and music as its own profit is not optimistic. According to the latest data show that music as sports, music as sports members since its launch in April, the total membership exceeded 3 million, but membership growth is the main way to send members to buy TV, send mobile phone, actually not much real membership fees accounted for. This year as "9· 19" fans ecological electricity supplier Festival, sales of 4 billion 970 million yuan, but the amount is only 5 million 100 thousand yuan membership renewals of sports, sports and sports surrounding intelligent hardware only contributed 20 million yuan, 1 million 900 thousand yuan in sales, mobile phone, TV and other business revenue gap is relatively large.

according to informed sources, music, as sports is still the main revenue advertising revenue, music, as sports in the first half of 2016 revenue more than 1 billion yuan, of which 30%-40% from advertising. And this is compared with the copyright costs of hundreds of millions of dollars or even over 1 billion yuan, is still significantly less than. Industry observers Hong Shibin bluntly, music as sports in the short term to achieve the advertising business outside of the large profit is difficult. On the one hand, China's network environment is more complex, the lack of copyright regulation, copyright protection. In addition, Chinese users have not yet formed a habit of paying to watch. The development of

single handedly change industry rules

music as sports this year has suffered some ups and downs. October officially announced the break up with the national security, the original plan to further cooperation in the equity cancel. In addition, because of arrears of copyright fees, but also to stop the transmission of Shanghai masters broadcast signal. This has also been interpreted as the industry's music as sports funds difficult. Hong Shibin believes that music as sports copyright fees to be far more than the cost of operating income. Music, as the business of sports adjustment, the purpose may be to cut through the adjustment of business and personnel to cut spending.

insiders pointed out that, although the business adjustment from four business into three major business groups, determined by the media, the line and the three pieces of equipment as the main line, but in fact the media business is the core business, because the media is music as sports can quickly enhance key revenue. On the day before the sports industry forum held Connects LeSports, music, as sports co President Liu Jianhong said: we have the copyright to the high price, then the goods should be in line with the business logic. I think there should not be so many TV stations free broadcast of super, which is the largest commercial value of the biggest damage. "This also shows the music from the side of the media operations in the pursuit of change.

but for the music as sports, want to change the rules of the game industry to single handedly, but it is not so easy to know, aimed at sports industry more than a letv. Sports Tencent for $500 million last year signed 5 NBA season network broadcast rights alone; Alibaba this year is successively to 100 million yuan to obtain the Olympic Games, won the right to demand the exclusive Internet business right Ping Chao in 2016; Suning last year won the 2015-2020 year League China area exclusive media rights, this year is 4 billion 800 million Yuan Li won the 2019-2020 season in the Premier League Chinese in mainland China and Macao region exclusive rights. In contrast, the advantages of music as sports is not.

insiders pointed out that the concept of music as the development of sports is to attract users through a large number of high-quality sports events, and then through business, service users to achieve a diversified income. But the problem is that advertising, membership, services and other income is not enough to support the cost of copyright, which requires music as sports with other funds to fill, and this is precisely the music as the difficulty of sports. Sports CEO leizhen music as a sword said, "every startup will experience some difficulties, but I believe that every problem is a turning point, will be the next time before the arrival of explosive storage. Music as sports will face the problem, and explore the solution, hoping to make a good case of music as sports industry". As the music as sports can be said, as Lei Zhenjian said, it needs time to verify.

Beijing Daily reporter Chen Wei / Wen Fei / tabulation

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