New trends in the development of Internet self media?

Six new trends in the development of Internet media

One, mobile, data, intelligent

April 20, 1994, the Internet officially entered China, in the Internet technology changes and promotion, China's Internet has experienced the portal era represented by Sina.com, Sohu.com, NetEase.com, Tencent.com and other portals, social media era represented by Sina microblogging and WeChat. media era, and has now entered the era of intelligent media represented by today's headlines and a bit of information. The typical representative of the intelligent media era is Today's Headlines, which was founded in 2012, and its main features are mobile, data and intelligence. In view of the fact that Today's Headlines represents the new trend of Internet media development and has achieved great success, in recent years, the Internet media have set off a trend of learning from Today's Headlines and benchmarking, which is a phenomenon that can be referred to as "headline-oriented". This phenomenon can be referred to as "headlineization". In addition to NetEase, Sohu, Ali UC, in China's best at making Internet products, Tencent also began to learn from today's headlines. Specifically to Tencent, one is to draw the handsome talent who understands technology and products to personally take charge of the famous product manager, Tencent COO Ren Yuxin personally; the second is to position OMG as a technology and product-driven content distribution department. On the one hand, the product department of Express under the network media business group was renamed as the interest reading product department, and its responsibilities were adjusted to be responsible for the research and development, operation and promotion of the interest reading product Daily Express, the construction of personalized recommendation technology and experience optimization of Express, as well as the content operation of Express; on the other hand, the content platform department was set up under the network media business group, which is responsible for building a company-level content open platform, including a content cooperation system, a content ecosystem, a content operation system, and a content operation system, as well as an open platform. On the other hand, the Content Platform Department was set up under the Network Media Business Group to build a company-level content open platform, including content cooperation system, content ecosystem, content operation system, content data system, content category system, content feature system, etc., to establish a safe, healthy and perfect content ecosystem at the company level, and to support the demand for distribution of the company's major platforms.

1. Mobilization

Driven by 3G, especially 4G technology, as well as large-scale commercialization and penetration, China's Internet has rapidly entered the era of mobile Internet from PC Internet, and the mobile dividend has become an important dividend for the development of Internet media. According to the 40th Statistical Report on the Development Status of the Internet in China released by China Internet Network Information Center (CNNIC), as of June 2017, the scale of Chinese Internet users reached 751 million, accounting for one fifth of the total number of Internet users in the world, and the Internet penetration rate was 54.3%; the scale of cell phone Internet users reached 724 million, and the proportion of Internet users who used cell phones to access the Internet increased from the end of 2016 to 95.1% to 96.3%. At present, the mobile dividend is basically divided by today's headlines, WeChat, Weibo, fast hand and other Internet distribution platforms and media, mobile has become a standard and operating system.

2. Dataization

With the rapid development and increasing maturity of big data technology, on the one hand, it is possible to digitize digital content, and by tagging digital content with a very fine granularity, the content can be better structured and standardized, and the value of the content can be brought to the maximum degree of excavation; on the other hand, it is possible to tag users in an all-around, multilevel, and in-depth manner, and thus better understand their consumption. On the other hand, users can be labeled in an all-round, multi-level and in-depth way to better understand their consumption behavior and potential value. From the perspective of commercial value, users are much larger than audiences and netizens. In a sense, only after the emergence of big data technology, there is a real user concept, in the era of traditional media, there is only audience but no users, in the era of PC Internet, there are only netizens but no users. At present, the intelligent media is rapidly iterating traditional media and portals, the root cause of traditional media and portals "user connection failure".

3. Intelligent

After the rise of portals, in bringing us rich and diversified massive information at the same time, it also brings us the century-old problem of "information overload", with everyone's friends more and more, social media is also getting heavier and heavier, Facebook, With more and more friends, social media is getting heavier and heavier, Facebook, Twitter and other social media to solve the problem of information overload with social relationship recommendation has failed, and the only way to effectively solve the problem of information overload is intelligent information matching based on big data, machine learning and artificial intelligence technology, that is, between the user's personalized, customized information needs and rich and diverse massive information through scientific algorithmic recommendation to achieve efficient matching.

From the point of view of the current development, the mobile dividend has passed, while the data and intelligent dividend there is still a lot of space and potential to dig, so all the Internet media have to data and intelligent transformation is also a matter of course.

Two, from CTC (Copy to China) to CFC (Copy from China)

1. In the early stage, China's Internet media adopted mostly CTC mode

In a fairly long time, the U.S. has always been the leader and innovator of the Internet's new model and business model, and in 1994, Yang Zhiyuan and David Ferro founded Yahoo! Founded Yahoo, also opened the portal model April 12, 1996, Yahoo to 13 U.S. dollars at the issue price of the Nasdaq Stock Exchange listing. Since then, China's Sina.com, Sohu.com and NetEase.com have introduced the "portal model" into China and successfully listed in the United States. In addition to the portal model represented by Sina.com, the e-commerce model represented by Alibaba, the information search model represented by Baidu, the Sina microblogging, WeChat and so on can be more or less seen in the shadow of Amazon, Google, Twitter and Facebook. Under the CTC model, there is a huge gap between the strength of China's Internet media and the international Internet giants, and China's Internet media are basically huddled in the domestic market and passive defense, and it is impossible for them to run around the world like Amazon, Google, Facebook and so on.

2. CFC starts to become a trend

First of all, the strength of China's Internet media is rapidly increasing. Thanks to the large and deep domestic market, fast-growing economy and comprehensive development of society, asymmetrically regulated Internet policies and innovative understanding of complex scenarios, Internet media such as Alibaba, Tencent, Baidu, and Today's Headlines have soared wildly, with rapid growth in the number of users, revenues, net profits, and technological capabilities, and have become an important force in the world's Internet arena. It is especially worth mentioning that Today's Headlines, founded in 2012, has led the new trend of the world's Internet by completely adopting the latest big data- and artificial intelligence-based technologies. Chinese Internet companies that have been refined by the mobile Internet and China's complex scenarios have become stronger, more confident in their mentality and more proactive on the world Internet stage. Although China's Internet media has achieved great development, its main market is still concentrated in the domestic market, which accounts for only one-fifth of the global Internet population. For the Internet media, which is an industry with a particularly significant "two-eighths effect", if it doesn't enter the international market of the other four-fifths through effective internationalization strategy, it will be pulled further and further away by the American Internet media giants. The U.S. Internet media giants are pulling farther and farther away from the U.S. market.

Secondly, Alibaba, Tencent and Baidu and today's headlines and other Internet platforms in the domestic leading edge, have from the defense of the country's doors to take the initiative to open up overseas battlefields, blowing the horn of the war of counterattacks, on behalf of the new trend of the new era. For one thing, Ali's internationalization layout mainly focuses on the fields of e-commerce and payment, and less on the field of media. This includes spending more than 200 million U.S. dollars to invest in Tango, a mobile chatting and video calling application in Silicon Valley, injecting nearly 800 million U.S. dollars into Magic Leap, a U.S. augmented reality company, and Ali UC will be ready to invest 30 million U.S. dollars in Southeast Asia over the next two years to support the content production of the region's self-publishing media. Second, Tencent has made larger-scale investments in the media sector. These include the wholly-owned acquisition of Sanook Online, Thailand's largest web portal, in late December 2016 (having acquired nearly half of its shares in 2010), the purchase of a stake in Kakao, South Korea's leading mobile messaging service provider, in 2012, and the open-market acquisition of a stake in the "burn-after-you-read" video In 2012, it also bought a stake in Kakao, South Korea's leading mobile messaging service provider, and took an open-market stake in Snap, the parent company of "burn-after-you-read" video app SnapChat, with more than 12 percent.

Third, today's headlines, the representative of the new forces, took the initiative to North America to open up overseas mainstream markets. As early as June 2015, today's headlines launched the internationalization strategy, through self-built as well as acquisition in Japan, India, Southeast Asia, North America, Brazil and other places to make the corresponding layout, while the main layout of other media areas include: in November 2017, completed the acquisition of overseas music short video platform Musical.ly, the total transaction price of nearly 1 billion dollars; in October 2016 In October 2016, BABE led the D round financing of Dailyhunt, the largest information distribution platform in India, with $25 million; BABE, a top three Indonesian news recommendation reading platform, was acquired through capital operation; and BABE was wholly acquired in early 2017 through "capital + technology output". "In early 2017, we acquired Flipagram, a mainstream short video application in North America, and in November 2017, we acquired and invested in News Republic, a news aggregation platform under Cheetah Mobile, and Live.me, a live broadcasting platform.

Thirdly, taking the initiative to attack the mainstream market in North America can effectively enhance China's international communication capability. At present, the international communication pattern has seen essential changes, and the Internet has become the core platform of international communication ability and the main battlefield of competition. In the traditional communication era, the United States with the help of News Corporation, CNN, Time Warner and other powerful international media group, in the international communication in the dominant position, other developed countries also by virtue of its international media group to obtain a certain degree of international discourse. However, in the era of Internet communication, the United States is running around the world with the help of Google, Facebook, Twit ter and so on, while other countries have no rivals that can match them in the international market. In this case, the international communication capability of the United States is stronger and has a more significant leading edge than in the traditional communication era. The report of the 19th National Congress points out that it promotes the construction of international communication capacity. And today's headlines and other Internet enterprises to actively enter the mainstream market in North America, to build a new communication system and communication platform based on the mobile Internet, can be the domestic positive energy story to the international community, better tell the story of China, disseminate the voice of China, and effectively enhance China's international communication capacity.

What we must realize is that the U.S. Internet media giants still have a significant advantage in terms of technology, users, scale and strength, and we still have a long way to go before we can successfully switch from the CTC model to the CFC model.

Three, Internet advertising dominates

In 2012, China's newspaper industry began to enter the cliff decline channel, in 2015, the television industry also stepped into the quagmire of a substantial decline, after nearly a few years of this and that, the Internet media advertising has become the absolute dominant force occupying the media advertising market.

1. China's Internet advertising volume and maintain high growth

In sharp contrast with the traditional media advertising revenue continues to decline sharply, Internet advertising has been a large volume of Internet advertising still maintains a high growth rate. According to data from Avery Consulting, China's online advertising has grown rapidly from 53.77 billion yuan in 2011 to 290.23 billion yuan in 2016, an increase of 4.40 times in just five years. And according to the data of Liu Min, Director of the Advertising Department of the State Administration for Industry and Commerce (SAIC), the overall scale of China's advertising industry reached 648.9 billion yuan in 2016, of which the revenue from Internet advertising accounted for 220 billion yuan, accounting for 30.82% of the overall advertising revenue; according to the predictions of relevant organizations, the proportion of Internet advertising will reach 54% in 2017, and the proportion of traditional media will drop to 46%. According to the 2016 statistical annual report of the State Administration of Press, Publication, Radio, Film and Television and the data related to the radio and television equipment manufacturing industry provided by the National Bureau of Statistics, in 2016, the national radio advertising revenue was 14.583 billion yuan, and the national television advertising revenue was 100.487 billion yuan. It can be predicted that in 2016, the advertising revenue of newspapers should be less than 50 billion yuan, the advertising revenue of periodicals less than 10 billion yuan, and the sum of the four should be less than 180 billion yuan. Whether based on data from Avery Consulting or the State Administration for Industry and Commerce (SAIC), the revenue from online advertising has far exceeded the sum of the advertising revenue of the four traditional media.

In addition, according to Avery's data, in the first quarter of 2017, China's quarterly market size of online advertising was 69.89 billion yuan, an increase of 31.1% year-on-year; in the second quarter, it was 86.16 billion yuan, an increase of 28.5% year-on-year; and in the first half of the year, the revenue of online advertising was 156.05 billion yuan, an increase of 29.65% year-on-year. It can be seen that in 2017, although China's online advertising revenue has exceeded 300 billion yuan, but still maintains a high growth rate of more than 25%.

Secondly, the Matthew effect of Internet media advertising revenue is obvious. Productivity determines production relations, social media and smart media and other more advanced Internet media are rapidly iterating traditional portals, Sina.com, Sohu.com and other portals, advertising revenue growth rate is low or even negative growth, while Tencent, Alibaba, Baidu, today's headlines, Sina microblogging and other Internet advertising revenues continue to maintain a high growth trend. the first three quarters of 2017, Sina.com portal advertising revenue was $887.2 million, a year-on-year growth rate of 47.47%. However, of the $285.6 million year-on-year growth in Sina's internet advertising revenue, Sina Weibo's advertising and marketing revenue grew by $281.4 million year-on-year, which can be seen as a negligible $0.042 billion growth in Sina's portal advertising revenue; NetEase.com's advertising revenue was 1.672 billion yuan, a year-on-year growth rate of 12.37%; Sohu.com's portal advertising revenue was 242 million, down 30.86% year-on-year; and Phoenix New Media's advertising revenue was 942.9 million yuan, up 7.27% year-on-year. Among them, PC advertising revenue fell 21.5% year-on-year in the first quarter, 21.2% year-on-year in the second quarter, and 11.8% year-on-year in the third quarter; Tencent's advertising revenue amounted to RMB 28.078 billion, with a growth rate of 50.20%, and it is expected that the full-year advertising revenue will be more than RMB 40 billion, which is more than that of the nation's newspapers; and Baidu's advertising revenue in the first three quarters amounted to RMB 52.721 billion, with a year-on-year growth of 9.06%. Although there was a 1.3% decline in the first quarter and a 5.6% year-on-year increase in the second quarter, the third quarter has seen a 22% year-on-year increase, and is expected to reach 80 billion yuan this year, surpassing the combined advertising revenues of newspapers, periodicals and broadcasting; Sina Weibo's first three quarters were 741.3 million dollars, a year-on-year increase of 61.15%. See Table 1 for details.

Table 1 Internet Media Advertising Revenue and Growth Rate in the First Three Quarters of 2017 %

Internet Media 2017Q1 2017Q2 2017Q3 First Three Quarters Total

Value Growth Rate

Sina.com ($billion) $228,295,252 3,640 8,872 47.47

Netease.com ($ billion) 4.45 5.96 6.31 16.72 12.37

Sohu.com ($ billion) 0.81 0.86 0.75 2.42 -30.86

Phoenix New Media ($ billion) 2.411 3.387 3.631 9.429 7.27

Baidu ($ billion) 147.38 178.83 201 527.21 9.06

Tencent (100 million yuan) 68.88 101.48 110.42 280.78 50.20

Source: based on the financial reports of Internet companies.

In addition, although Alibaba did not publish its own advertising data, but according to Avery's data, its advertising revenue in 2016 was 82.15 billion yuan, and theoretically its advertising revenue growth rate is directly proportional to the growth rate of its revenue income, Alibaba's revenue in the first three quarters of 125.856 billion yuan, a year-on-year increase of 60.18%, and it is expected that Alibaba's advertising in 2017 revenue will exceed 120 billion yuan, exceeding the advertising revenue of traditional television.

Four, double integration accelerated

First of all, industrial integration is advancing at a high speed. The Internet has broken the boundaries between different industries, and different industries have begun to rapidly cross-border integration, before the clear-cut industrial boundaries no longer exist. Industrial integration on the one hand, so that Internet giants can create a huge ecosystem, whether it is Alibaba, Tencent or Baidu, are building across a number of industries, a large number of participants, mutually beneficial **** win ecosystem; on the other hand, industrial integration also makes the "cross-border robberies" occur from time to time, a direct consequence of the Internet media competition The direct consequence is that the competition of Internet media is more intense.

Secondly, the industry and financial integration. The financial industry is the crown on the industry, is the gas pedal of industrial development, the development of China's Internet industry can not be separated from the financial industry's support and boost, whether it is already a successful BAT Internet giants such as Alibaba, Tencent and Baidu, or the emerging today's headlines, fast hand and so on can not be separated from the financial support. First, today's headlines in 2016 with a valuation of $11 billion to raise $ 1 billion based on the valuation of $ 22 billion in 2017, and then to obtain a huge financing of $ 2 billion to support its comprehensive expansion in various business lines such as micro headlines, short videos, jitter and Wukong Q&A, etc.; the second is that Aqiyei has completed the subscription of a $ 1.53 billion convertible bond, and the main subscribers are Baidu, Gao Tailai Capital, Banyu Capital, Runliangtai Fund, IDG Capital, Light Capital, Sequoia Capital, etc., of which Baidu subscribed $300 million. Sufficient funds can help Aqiyi consolidate and expand its leading position, and I believe that its profitability will not be a problem in the near future. Third, the fast hand with a valuation of 3 billion U.S. dollars to obtain 350 million U.S. dollars in financing, the financing led by Tencent. Fourth, a little information with a valuation of 3 billion U.S. dollars to finance 120 million U.S. dollars, which is also a new round of financing after it obtained the Internet news and information service license, invested by the Beijing Wentou Group. In addition, in the U.S. capital market, Sogou successfully landed on Nasdaq, raising US$585 million; in the Hong Kong market, Tencent's Reading Group was successfully listed on the Hong Kong Stock Exchange, raising a total of HK$7.3 billion.

Fifth, the industry concentration to further enhance

Internet economy is the economy of scale effect is extremely significant industry, in recent years, Alibaba, Tencent and Baidu vigorously through investment and mergers and acquisitions for strategic layout, especially through the acquisition of the advantageous areas to enhance their own market share, the concentration of the industry is rapidly increasing.

First of all, in the field of online game industry, basically formed a double oligopoly market structure of Tencent and NetEase. According to the report of the 2016 Game Industry Annual Conference, the actual sales revenue of China's game market in 2016 was 165.57 billion yuan, of which the scale of the mobile game market amounted to 81.92 billion yuan.In 2016, Tencent's online game revenue was 70.844 billion yuan, of which the handheld game revenue was about 38.2 billion yuan; NetEase's net online game revenue was 27.980 billion yuan, and the handheld game revenue was about 17.907 billion. As can be seen, the sum of Tencent's and NetEase's online game revenues was 98.824 billion yuan, and the sum of handheld game revenues was 56.107 billion yuan, accounting for 59.69% and 68.46% of the total online game revenues and handheld game revenues, respectively.In the first three quarters of 2017, Tencent's online game revenues amounted to 73.516 billion yuan, which is expected to exceed 100 billion yuan for the whole year, and NetEase's online game revenues amounted to 28.277 billion yuan , which is expected to potentially reach 40 billion yuan for the full year.In 2017, the concentration of Tencent and NetEase in the online game market will further increase.

Secondly, in the field of Internet advertising, Alibaba, Baidu, Tencent and Today's Headlines became dominant.In 2017, it is expected that Alibaba's advertising revenue will be over 120 billion yuan, Baidu's advertising revenue will be over 80 billion yuan, Tencent's advertising revenue will be over 40 billion yuan, and Today's Headlines' advertising revenue will be over 15 billion yuan, and the four of them will be a combined total of 255 billion yuan, which occupies more than 70% of the Internet Advertising market of more than 70%.

Third, in the field of digital reading, Reading Group is in a leading position. Reading Group was formed by the integration of Shanda Culture, which Tencent Group bought for 5 billion yuan, and its Tencent Literature. According to the public prospectus of Reading Group, Reading Group realized revenue of 2.568 billion yuan in 2016, up 59.1% year-on-year from 1.606 billion yuan in 2015. And according to relevant information, the online literature market reached 4.6 billion yuan in 2016, with Read Group accounting for 55.83%.

Fourth, in the music field, a market structure dominated by Tencent Music, Ali Music and Netease Music has been formed.

Sixth, the new giant surfaced

At present, in the field of Internet media, Alibaba, Tencent and Baidu, such as BAT Internet three giants are in the absolute leading position, and with the strong rise of today's headlines, it will surely become a new giant in the field of Internet media.

Founded in 2012, today's headlines, relying on its thorough, comprehensive based on big data and artificial intelligence technology, a new technology underlying structure, grasping the big data technology dividend, mobile Internet dividend, self-media dividend and short video dividend, was born in full bloom, in a short period of five years or so to grow into a super unicorn. According to the data of various reports, today's headline's revenue in 2015 was around 1.6 billion yuan, the revenue in 2016 was around 6 billion yuan, the revenue in 2017 will be more than 15 billion yuan, while it is expected that the revenue in 2018 will be between 30 to 50 billion yuan, and the valuation was 22 billion dollars in early 2017 when it introduced 2 billion dollars of strategic investment. The high-speed development of today's headlines after solidifying the position of the leader of the intelligent distribution platform in all directions, first with the volcano small video to target the fast hand, and then with micro headlines to target Sina microblogging.

In addition, the fast hand, B station, a little bit of information and so on have a better development prospects