You call this entrepreneurship?

Chapter 371 Give everything you have
Zhang Chaoyang was slightly startled, "Different national conditions? What does this mean? Is there any difference here?"

"There's a huge difference here." Qin Shaoyan smiled, "What do you think of the current e-commerce war, Mr. Zhang?"

"E-commerce war? Does this matter?" Zhang Chaoyang was even more confused. Why did he bring up the e-commerce war when he was talking about video websites?
The e-commerce war in 2005 was quite lively.

Zhang Chaoyang knew that campus networks also engaged in e-commerce, but the e-commerce of campus networks was different from other e-commerce. It only focused on university campuses and had no intention of expanding outward.

"To understand why the situations of YouTube and Qvod are different, let me first take eBay and Taobao as examples," Qin Shaoyan said seriously.

When it comes to national conditions, this topic is quite broad and it would take three days and three nights to finish, so Qin Shaoyan will first give an example.

Since their inception, Chinese Internet companies have been "borrowing and imitating" the American Internet in the early days, and then gradually improved according to domestic conditions to adapt to the domestic Internet market.

But this process is not as easy and simple as imagined.

Many entrepreneurs do not realize the differences between the Internet in China and the United States. They just act on impulse, open the code, and then put the website online.

There was very little content on the domestic Internet in the wild days. When the first generation of netizens went online, everything they saw was new and they were tolerant of new things.

With the rapid development of the Internet, competitors have emerged one after another.

Everyone is copying and no one copies better than anyone else, so how can we compete?
Of course it is differentiation. Those with quick minds will start looking for directions for improvement, evolving and modifying according to domestic conditions to attract more users.

Of course, it is impossible for Internet users to be infinitely tolerant of you just because you are a new thing. When the initial novelty wears off, they will of course choose better websites as alternatives.

In this process, those who think quickly and can keep up with the pace will survive, while those who are slow or stubborn will naturally be eliminated.

Every country has a different level of development, and its national conditions and customs are different. If we simply copy the American system, it will definitely not survive.

However, this very important common sense concept is not generally recognized or valued in this era.

The rapid development of the early Internet and the influx of hot money caused many of the first generation of Internet pioneers to ignore this problem. Of course, it may also be due to various reasons that cannot be changed.

So, driven by the wave of the Internet, one first-generation pioneer after another was eliminated.

In this era, domestic Internet professionals are mostly very nervous and anxious when facing American Internet companies entering the Chinese market, fearing that they will not be able to compete with them.

After all, in terms of capital, technology accumulation and market experience, domestic Internet companies cannot compare with American Internet companies.

Later, when they faced off head-on, everyone was shocked to find that these American Internet companies were just like that, rigid and inflexible, and they began to demystify success from then on.

It’s not that no one is aware of the problems facing America’s adversaries.

eBay acquired Eachnet to enter the Chinese e-commerce market. At that time, no one was optimistic about Taobao and called this e-commerce war a battle between ants and elephants.

In March 2002, eBay purchased 3% of Eachnet's shares for $3000 million. 33 months later, eBay acquired Eachnet in full, with a total investment of $15 million. By then, eBay had occupied 1.8% of the Chinese e-commerce market, and the situation seemed to be very good.

Taobao was launched in May 2003, and it looked very weak at the time.

eBay never considered this website as a competitor. After all, Taobao was still worried about financing at that time, and eBay considered Yipai.com as its main competitor.

Yipai.com is a joint venture between Yahoo and Sina.

Jack Ma was very happy about this. He said: "eBay didn't consider us as a competitor in the first year. They didn't even think of us as a competitor. When it comes to Taobao, Chinese people understand it, but foreigners don't understand what Taobao means."

By the end of 2005, eBay's market share was only one-third, while Taobao's was close to 1%.

After some operations, Whitman sold eBay's business in China to Tom Online, owned by Li Ka-shing, and withdrew from the Chinese market in disgrace.

At present, eBay has not completely admitted defeat, but its decline is already quite obvious. Taobao has become a dominant player in the e-commerce field, far ahead of other e-commerce competitors.

Qin Shaoyan used eBay as an example, "Why did this American e-commerce giant lose miserably to Taobao? It was because they were too arrogant and refused to trust EachNet's local team, and applied the American model to China."

"And this isn't the first time eBay has failed. They failed once in the Japanese market before entering the Chinese market, and they still haven't learned their lesson."

"eBay signed contracts with China's three major portals, Sina, Sohu, and NetEase, at a price twice the market price, and asked them to ban Taobao. Even search engines like Baidu and Google were considered, and the slogan was: If you want Taobao, go to eBay, so that Taobao will have no ads."

"And what about Taobao? It adopted a middle-to-lower-tier strategy, sweeping through the domestic webmaster alliances one by one, and letting all small and medium-sized websites put up Taobao ads. Now it seems a bit vulgar, with a large number of pop-up ads, forum posting robots, etc. There are also offline ads, subway cars, station signs, street light boxes, and televisions."

"The most important point is that eBay adopts a paid business model, while Taobao does the opposite and attracts merchants by offering free services."

"The gap between the average personal income in China and the United States is too big. Ordinary Chinese netizens prefer to buy cheap goods, even if the goods are fake, as long as they can be used."

"eBay certainly can't allow counterfeit goods to enter. This is equivalent to setting a threshold for merchants to enter. Add in the fees, and its merchants will naturally leave. After all, merchants also need to pursue profits."

Zhang Chaoyang frowned. "There are so many fakes on Taobao. It's unethical to do this. It's completely self-destructive."

"But fakes are cheaper." Qin Shaoyan sighed, "And Taobao won in the end. The mall is like a battlefield, and heroes are judged by their success or failure."

Zhang Chaoyang was a little unconvinced and wanted to say something, but finally held back.

"So what does this have to do with video sites?"

"One thing we can see from Taobao's victory is the gap in national strength between China and the United States, as well as the gap in income for ordinary people." Qin Shaoyan said seriously, "This is very important. Even though computers are not cheap nowadays, there is a certain threshold to surf the Internet."

"But the average Chinese family's income is still very low. What the average American family can afford, the average Chinese family can't afford."

"For example?" Zhang Chaoyang was even more puzzled.

"For example, cameras and video recorders are luxury goods for ordinary Chinese people," Qin Shaoyan said helplessly. "Ordinary Americans can easily buy and obtain DVs to record their daily lives and create performances at the same time."

"It doesn't work in China. Ordinary people don't have such equipment, and the cameras that come with computers are not convenient for recording. The video recording function of mobile phones is even worse. The memory and clarity are both problems."

"The biggest problem is that mobile phones with camera and video functions are also very expensive."

Zhang Chaoyang was stunned. He had never thought of this angle.

"One is the limitation of hardware equipment, and the other is the simple limitation of life gap." Qin Shaoyan said, "Americans have a rich life, they have more time, energy and a certain amount of money to create, while domestic users have to invest their own energy in making money, so how can they have so much free time to shoot videos?"

Americans are so idle that they can do all kinds of things, but many people in China can't even get enough food to eat at this time, so how can they have the energy to engage in this kind of cultural entertainment?

Later, various short videos and live broadcasts emerged. That was also after the country's national strength increased, with abundant material resources and low prices to support a group of people engaged in abstract work.

"This is the fundamental reason for the difference between YouTube and Qvod," Qin Shaoyan said seriously. "And according to the backend big data analysis, most users who come to video websites are looking for pirated movies and TV series, and only a small part of their time is spent watching some user-made short videos."

"In addition to a large number of user-generated content uploaded on YouTube, there are also many pirated American dramas and variety shows, and these video contents have a large number of views."

“This shows that users prefer professional homemade content.”

"After analyzing YouTube's big data and considering China's national conditions, I formulated a strategy when I founded Qvod, which was to focus on PGC content. User-generated content and sharing are just extras and adjustments, and cannot be the main focus at all." Zhang Chaoyang suddenly applauded, "Great, that's great!"

"Listening to your words is worth ten years of reading." Zhang Chaoyang sighed and praised, "Mr. Qin's words opened my eyes, just like a revelation."

"Mr. Qin is indeed the founder of Internet video websites. His insights into the operation and development of video websites are indeed superior to others. His foresight is admirable."

"Thank you very much." Qin Shaoyan said modestly, "It's just my personal opinion and some experience gained during the operation process."

Xiong Xiaoge next to him also praised, "Mr. Qin may be young, but his understanding of the Internet has reached a level that ordinary people can hardly reach. His unique insights and vision are truly amazing, and I admire him very much."

Xiong Xiaoge's words were not just commercial flattery. It was the first time he heard Qin Shaoyan analyze Qvod and YouTube from this unique perspective. At the same time, he also had a different view on video websites.

Zhang Chaoyang pondered for a few seconds, "According to Mr. Qin's thinking, the only viable path for video websites is PGC. Developing UGC types like YouTube, Tudou, and Youku will eventually be a dead end."

Qin Shaoyan shook his head. "That's not necessarily true, because Tudou.com and Youku.com both have a variety of TV series and variety shows, and there will still be users uploading and sharing them."

"They are now supporting UGC just to differentiate themselves from Qvod and try a different approach."

“Even if UGC doesn’t work, we can still transform it.”

"They are also taking a crooked path by pirating resources, which will not work," Zhang Chaoyang asserted. "So Mr. Qin has been buying legitimate film and television resources. It turns out that he has already thought about the future and made plans in advance."

"Supporting genuine products is also a way to protect creators." Qin Shaoyan laughed, "I can't say I have any future plans. I don't have such a big picture yet. It's simply because genuine resources are quite cheap."

"Besides, I'm a timid person and don't want to cause any trouble."

Qin Shaoyan then said meaningfully: "After all, Qvod.com is going to go public. Pirated resources may cause trouble and lawsuits at any time, which is not good for the listing."

Zhang Chaoyang clapped his hands suddenly, "Well said! I fully agree with what Mr. Qin said."

"It's a dead end for video websites to engage in piracy. It will definitely not work." Zhang Chaoyang looked at Xiong Xiaoge and emphasized again, "Engaging in piracy will cut off the path to listing. There is no money to be made!"

Xiong Xiaoge nodded. He also felt that if video websites continued to condone the rampant piracy, it would be difficult for them to go public. With the current method of burning money, video websites would have to wait for death if they could not go public.

It seems that Qin Shaoyan thought it through from the beginning, so he insisted on buying genuine film and television drama resources.

Entrepreneurs who have a clear and correct idea are rare, and there is not even one among ten thousand entrepreneurs.

This is the biggest difference between Qin Shaoyan and other entrepreneurs, and it is also the reason why Xiong Xiaoge is optimistic about Qin Shaoyan.

If another entrepreneur dared to jump up and down like Qin Shaoyan, Xiong Xiaoge would have banned him long ago and made him bid farewell to the entrepreneurial path completely.

Zhang Chaoyang flattered Qin Shaoyan and didn't feel embarrassed at all.

Qin Shaoyan is indeed a capable person, and the power behind him is much greater than that of Sohu. It is not shameful to have business blow-by-blow with such a person, and Zhang Chaoyang also hopes that Qin Shaoyan can say more.

Zhang Chaoyang continued to ask: "How much are the resources of genuine film and television dramas now?"

"If we count by episode, a TV series costs only a few hundred or a few thousand yuan per episode, and the most expensive one doesn't exceed two or three thousand yuan." Qin Shaoyan thought for a while, "If you buy the entire variety show as a package, it only costs tens of thousands of yuan, which is cheaper than a TV series."

"Is it a permanent buyout or a contract for a few years?" Zhang Chaoyang continued to ask.

"Of course it's a permanent buyout. Those film and television companies don't pay much attention to the Internet, and piracy is rampant online. They'll sell it as long as you pay." Qin Shaoyan laughed, "Now I'm taking advantage of the times."

Zhang Chaoyang was very envious, "Boss Qin has good taste."

I started thinking in my mind how I could grab these cheap, genuine resources.

"But it may be cheaper now, but it may not be the same in the future." Qin Shaoyan said slowly, "Now the video websites are not aware of the problem of genuine products, and they will definitely buy them later. When there are too many buyers, there will inevitably be competition, and the price of genuine products will skyrocket."

Zhang Chaoyang looked at Qin Shaoyan's expression and suddenly asked, "Mr. Qin has already come up with a plan, right?"

"Not really." Qin Shaoyan said with a smile, "Instead of buying other people's content, it's better to produce or customize it yourself. After all, movies and TV series are produced by those film and television companies. Their customers are theaters and TV stations, so the content is inevitably a bit incompatible with the Internet."

"In order to prevent others from competing for the deal, we can simply solve the problem at the source, participate in the production, and then buy out the product exclusively. This way, we can sell it to TV stations for profit and avoid other competitors bidding against us."

Zhang Chaoyang slapped his thigh and exclaimed, "Great job, Boss Qin's trick is really amazing."

If the resources are cheap, just buy them out. If they are too expensive, it is better to make them yourself. Making them yourself also allows you to be more flexible in terms of content.

Zhang Chaoyang reached out his hand and shook Qin Shaoyan's hand tightly, saying, "Thank you, Mr. Qin, for your honesty. If you need help with Sohu in the future, please let me know."

"Can I get a discount by advertising on Sohu?" Qin Shaoyan asked.

"Of course you can. Just talk to the advertising department about this." Zhang Chaoyang laughed. "I'm not in charge of this business, but since you, Mr. Qin, have asked, it must be possible."

It’s up to you to decide whether it’s okay or not.

After talking for so long, there is no benefit at all.

Qin Shaoyan was quite disdainful in his heart. It was rumored that Zhang Chaoyang was very stingy, and he had seen it.

With smiles still on their faces, the three of them continued chatting for a while, and then Zhang Chaoyang left excitedly.

After Xiong Xiaoge left, Zhang Pingyi frowned and said, "Zhang Chaoyang came to see you just to inquire about the operation ideas of the video website?"

"Probably." Qin Shaoyan answered casually.

Zhang Pingyi was very surprised, "You actually told him everything."

"What's there to hide? He can tell just by watching me operate. It's not a top secret." Qin Shaoyan disapproved.

Zhang Pingyi was speechless, "You are very generous."

"We really need to be generous to Mr. Zhang." Qin Shaoyan said with emotion, "If we don't tell him the secret book, how can he be the first to come forward?"

"What do you mean by being the first to come forward?" Zhang Pingyi was stunned for a moment, then realized that Qin Shaoyan must have set a trap for Zhang Chaoyang, and asked in horror, "What are you trying to instigate him to do?!"

"What can I ask him to do?!" Qin Shaoyan said with a smile, "He is not my subordinate, he has his own ideas."

"What exactly do you want to do?" Zhang Pingyi asked.

"I just want Mr. Zhang to do something good for the country and the people. It's not easy to find such a kind person." Qin Shaoyan said with a smile, "From the first time I saw him, I decided to let Zhang Chaoyang carry the banner of the Internet Anti-Piracy Alliance."

(End of this chapter)