Entertainment mogul: Starting his business with the internet

Chapter 24 Website Core
Portal websites need a large number of users to generate advertising revenue, and attracting users requires high-quality news content. Without content, a portal website's development is just a pipe dream.

The reason why the three major portal websites, Sina, Sohu, and NetEase, are so powerful is because they have long had a large number of newspapers and magazines as partners.

In addition, there are many contracted reporters who can quickly arrive at the scene after an event occurs and report it immediately, ensuring a constant stream of the latest news to attract visitors.

The established portal website's alertness was somewhat unexpected for Song Ci, but she still pressed on, asking, "The development of the company's news channels takes time. Is there any room for further discussion on this matter?"

Yang Junfeng shook his head, looking dejected. "The major portal websites are behaving very tacitly. I suspect they may have had a private agreement to collectively stifle new portal websites in order to maintain their market share."

Song Ci closed his eyes and pondered, combining his memories from his past life to find a way out of the predicament. After a moment, he slowly opened his eyes and his bright gaze swept across the entire room.

He said confidently, "The news content must be resolved by Toutiao.com. The company can cooperate with traditional media such as newspapers, magazines, TV stations, and radio stations."

On Toutiao, a dedicated reporting section will be created for these partner media outlets, allowing them to publish news directly on the platform. The website will then share advertising revenue with them based on the number of views the news receives.

Yang Junfeng felt that Song Ci's words were a bit radical and advised, "President Song, currently, the news on domestic and foreign portal websites is either reprinted or handled by the website's own editors."

It's rare to see media outlets allowed to directly publish news on websites, or even share advertising revenue. Advertising revenue is a major source of income for portal websites; wouldn't your arrangement affect Toutiao's profitability?

Song Ci's suggestion, which referenced the characteristics of self-media in his previous life, and seeing that Yang Junfeng had doubts, further explained: "If Toutiao.com develops according to the traditional model of Sina and Sohu, how can it become the biggest and strongest?"

To achieve a breakthrough, we must find a new path and unite with traditional media to share benefits, so that Toutiao can become the largest portal website in China and even Asia.

As for your concern about reduced profits, I think it's an overreaction. Which is more profitable, 100% of 10 yuan or 50% of 100 yuan?

The number of internet users is growing explosively every day. Partnering with traditional media to expand the market is the key to success; cooperation and mutual benefit are the only way to ensure a future.

The pause in the poem, followed by a sip of water to soothe the throat, seems to give everyone time to digest the meaning.

"As for other news content, it would be best if websites and media outlets were willing to cooperate with us; if not, we'll do it ourselves!"

“Do our own news?!” Zhang Yong frowned and said hesitantly, “President Song, if we set up a reporting team to do our own news, the cost will be enormous. The initial investment will inevitably lead to huge losses, and our operating financial statements will look terrible.”

Zhang Yong, as the CEO of Tengda Technology, is responsible for overseeing the overall situation and must consider the company's overall picture. Despite the obvious losses, he still advised Song Ci to think twice before proceeding.

Song Ci disagreed, saying that no internet company doesn't lose money in the early stages, and confidently stated, "Don't be afraid of losses. My current funds can support the company's development until the first half of next year."

"As long as we can boost the website's data and prove the value of Toutiao's new model, investors will naturally flock to invest in us." At this point, Song Ci's face revealed a hint of ferocity. "Moreover, what I want is to lose money; anyone can make money while lying down."

I can afford to lose money on Toutiao.com if I'm in charge, but listed companies like Sina and Sohu can't. When they want to do their own news production like Toutiao.com, they find that the huge investment will impact their company's profitability.

They have a responsibility to the stock price and shareholders. By the time they hesitate about whether to follow the Toutiao model, we can create a time difference, seize the initiative, and leave them behind. Then it will be much harder for them to catch up, and they will have to pay at least several times the price.

Song Ci spoke eloquently and clearly: "Of course, Toutiao.com also needs to make choices and concentrate resources on developing the channels with the most users."

Political news, automobiles, entertainment, and sports are the key areas of focus for Toutiao.com. Other sectors such as technology, finance, and lifestyle will be developed later as Toutiao.com grows stronger.

Zhang Yong noticed out of the corner of his eye that Yang Junfeng was somewhat stunned by Song Ci's grand gesture, so he quickly reminded him, "Old Yang, you must write down President Song's golden words and implement them as soon as possible."

However, these plans and developments take time. Toutiao.com is about to launch, and this is a long-term solution that can't address the immediate problem. Doesn't your project team have any contingency plans? Are you relying entirely on President Song?"

Seeing Zhang Yong's anger, Yang Junfeng stammered, "We've also learned from the three major portals and have signed contracts with some reporters who can go to the front lines at any time to report the latest news. As for other matters, we plan to reprint them first to address the immediate needs, and then make corrections after we get through this difficult period."

Song Ci understood Yang Junfeng's meaning. Currently, news and industry trends on portal websites are all reprinted. Once a news story appears, several other websites quickly follow up and then reprint it, spreading it across the entire internet.

However, this involves originality and copyright. In theory, the articles and pictures reported by the contracted reporters of a certain website belong to that website. If authorization is not obtained, other websites that reprint the news are infringing on copyright.

Of course, that's the rule, but in reality, almost no websites care. Reprinting and stealing news and content has become commonplace. Some small websites even copy and paste directly, too lazy to even remove the watermark.

This might work for obscure small websites, but not for Toutiao. If visitors find that the website is full of news from other portals after it goes live, Toutiao's reputation will be ruined. Not to mention the possibility of being sued by copyright holders for reposting. Song Ci would never do something like that.

Zhang Yong clearly sensed the hidden danger in Yang Junfeng's actions and angrily said, "The method you came up with is piracy. Have you thought about the consequences of piracy? Is this how you do things?"

Zhang Yong was extremely annoyed. He had been listening carefully to Tengda Culture's report earlier, and he had seen Wang Jing and the other women making Tengda Culture a resounding success.

With him, Tengda Technology currently only has two projects. The initial version of "Minecraft: Song Lyrics" has already been completed, which is equivalent to having the food delivered to their mouths, so they basically don't need to worry about it.

Recently, he has been busy setting up the company and recruiting talents, so he entrusted the most important Toutiao.com to Yang Junfeng. However, the subordinates have done such a thing, which makes him feel that he has let down Song Ci's trust.

(End of this chapter)