LeSports Falling Clouds The Copyright Market Is Gradually Returning
2023-05-09 10:10:29
Le Sports Falling Clouds Copyright Market Acumen Date: 2018-01-11 14:52
After experiencing the battle for capitalism in the past two years, the Chinese sports copyright market has suddenly cooled down in 2017. As Le Sports, once once in great beauty, is in deep difficulties, investors and practitioners tend to be rational and begin to reexamine the profit model and actual consumer demand in an effort to find the balance between dreams and reality.
Let's go up and down in the copyright market
A sunrise industry, after experiencing a long gestation period, will surely usher in a sudden boom. At this stage, passion and chaos are blended, and profits and risks dance together. There are often several dark horses who are disdain for the world. They emerged in an attitude of subversion of authority and grew at an incredible rate. They are the most eye-catching heresies, stars and benchmarks in the industry.
The phrase written by financial writer Wu Xiaobo in "Large Loss II" is undoubtedly a vivid portrayal of the Chinese sports industry over the past three years, and Le Sports is the most compelling black horse.
In October 2014, the State Council promulgated the "Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption." While raising national fitness as a national strategy, it also emphasized the need to tap the industrial value of sports. Almost overnight, the sports industry became a new investment outlet.
Taking the event's copyright as the entry point, LeSports Sports purchased 310 events in just two years, including not only the AFC, China Super League, Premier League and other popular events, but also covered golf, fighting, racing and other niche projects. Star company in the industry. In addition, LeTV Sports also expanded its operations in the areas of competition operations, smart hardware, etc., in an effort to build an ecosystem that covers the middle and lower reaches of the sports industry chain.
Le Sports, which spoke about ecological stories, was once sought after by the capital. In April 2016, shortly after winning the ultra-new media copyright for two years with 2.7 billion yuan, LeTV Sports launched the B round of financing. The target was originally 3 billion yuan, and finally reached 8 billion yuan. The company’s valuation is also from 3 billion yuan. Soared to 21.5 billion yuan.
However, starting from the third quarter of 2016, LeTV has experienced a capital crisis in all major sectors. Due to a large amount of financing, LeTV’s major shareholders borrowed to subsidize other business segments, and all kinds of copyrights of LeTV Sports were in arrears and were aired.
In 2017, due to failing to pay the copyright fees on schedule, LeTV Sports lost its core copyrights such as the AFC Champions League and Super League one after another, and the users were lost. The copyright empire that it painstakingly operated began to collapse. In the next few months, LeTV Sports was deeply troubled by layoffs, layoffs by executives, shareholder conflicts, and internal storms. It was no longer the scene in the past.
With the disillusionment of Le Sports' ecological story, the copyright market with fierce capital competition in the past two years also began to cool down.
In July of this year, Sports and Sports Forces spurred the Chinese Super League to be affected by the U23 New Deal and other reasons, and the market became less attractive. It required the Chinese Football Association to extend the period of copyright cooperation from the original 5 years to 10 years, equivalent to half the royalty of 8 billion yuan. . Some market participants believe that, in addition to the Football Association's new political factors, the cold weather of the copyright market has caused financial pressure on the physical and physical forces, and it is also an important reason for the extension of the copyright deadline.
As the second largest domestic competition IP, the CBA league's worth is inevitably shrinking. Two years ago, when super-copyright sold 8 billion yuan in price, many people predicted that CBA copyright could reach 6 billion yuan in the future. Optimists even thought that it would break the 10 billion mark. However, the broadcast rights of the CBA in the new season did not finalize the buyer until less than a week before the start of the league. According to informed sources, the price was far lower than expected.
Paid road problem to be solved
Estimates of their own abilities are not accurate enough, and growth rates do not match well with resources. Liu Jianhong, Lexus Sports' co-president, inspected the ups and downs of LeTV Sports in an interview.
Liu Jianhong said that looking back at some of the original strategies, such as buying new copyrights in the new media and entering the Hong Kong market, are open to question. However, he stressed that these are not entirely LeSports own needs, but more to suit the Group’s overall strategy of promoting the development of LeTV and mobile phones.
The rapid expansion and lack of cash flow are the triggers of the LeSports crisis. However, failure to establish a mature and stable profit model and achieve self-inheritance in time is the deep-seated reason for its trouble.
In the music ecology chain of LeTV Sports, copyright is the cornerstone of its normal operation to win high quality copyright, attract a large number of users, gradually increase the number of fee-charging members, and then establish viewing terminals through LeTV and mobile phones to drive the consumption of related hardware and derivative services.
However, copyright is a double-edged sword. Buying copyrights can certainly attract users and occupy the market, but high copyright expenses are a severe test of copyright liquidity.
Sun Hongbin, the founder of Sunac, a strategic investment in LeTV, publicly disclosed that in 2016 LeTV Sports had a copyright expense of 1.35 billion yuan, and the income was only 50 million yuan, which was a loss of 1.3 billion yuan a year.
For video sites, the traditional business model is to use traffic for advertising. However, advertising revenue alone is far from enough to support the skyrocketing copyright expenses. Therefore, LeTV Sports hopes to pay for membership. However, this road is far less smooth than imagined. According to public data, the number of LeTV sports members exceeded 3 million at the time of maximum, and the annual income was no more than 1.8 billion yuan. In 2016, the total amount of copyright expenses was no less than 3 billion yuan. In order to attract paying members, LeTV Sports also sent out a large number of televisions and mobile phones, which is equivalent to pre-paying some members' income.
Liu Jianhong believes that for the new media platform, the ineffective promotion of the user payment model is an important reason for the CCTV and local stations' free broadcast of many events, which directly draws away a large number of potential paying users. In response, he complained: There is a free look, who is willing to pay for it?!
On the other hand, piracy has continued to escalate, magnifying the risk of copyright operators. Since last year, LeTV Sports and Physical Olympics have filed infringement lawsuits on the piracy of other platforms.
Yu Hang, the chief operating officer of the former LeTV Sports responsible for copyright business, said that in China, the broadcasting of sports events is not considered a work, whether it enjoys copyright protection, and the legal provisions are not clearly defined. If there is no copyright protection, anyone can broadcast and pirated copies everywhere, then for high-priced companies to purchase, it is tantamount to seeing through traffic.
In fact, the problem of copyright liquidation encountered by LeTV Sports also tortured the entire industry. Whether it is the Tencent sports that monopolize the copyright of basketball events such as the NBA, or the PP sports that have almost eliminated the football resources such as La Liga and China Super League, it is still unknown when they can achieve profitability.
Buy IP, not as good as IP
In the past two years, the domestic copyright market frequently staged a price war, and capital was rushing towards copyrights in foreign competitions such as the Premier League and the NBA. An important reason was that local high-quality copyright resources were scarce. When the buy-buying pioneer LeTV Sports suffered setbacks, more people realized the importance of copyright.
To take over the copyright of a foreign event and do it better is to give others a wedding dress. Yu Hang believes that the development of China's sports industry will depend on the fact that overseas resources will not be allowed to land in China. It is most significant for the Chinese sports industry to invest in the copyright of independent events. Even if it comes up to a loss, it should go firmly.
Liu Jianhong also shares his deep feelings. He said that creating IP around the needs of the Chinese sports crowd is the future trend and a blue ocean that can be developed for a long time. Therefore, LeTV Sports has begun to adjust its business structure and transform itself into an independent IP game.
According to Liu Jianhong, the Chongqing International Women's Half Marathon, operated by Le Sports subsidiary, has seen a steady increase in the size and influence of the competition since its establishment in three years, and most importantly, it has made a slight profit this year. This gives LeTV Sports a firm confidence and will continue to nurture special events in the future.
In fact, the establishment of independent IP events is becoming a new industry trend. Since 2015, in addition to the road running events represented by the marathon all over the country, original competitions such as 3X3 basketball and fights have continued to emerge.
Insiders pointed out that one of the core elements of IP-building success lies in communication. For the same project, such as football, there may be multiple companies operating different IPs. Ultimately, who can survive will depend largely on who spreads more and has more influence. From this perspective, Internet media platforms have certain inherent advantages in operating autonomous IP games.
From the perspective of European and American countries, IP development has a long incubation period. Whether it is the NBA, the Premier League or the Tour de France, they have experienced at least decades of historical accumulation and have had today's brand influence and commercial value.
In this regard, Liu Jianhong stated that sports is a slow industry and requires intensive cultivation. China's sports industry is still in its infancy. Capital needs to follow the law of development, and it cannot be quick and profitable.
Although the halo of LeTV Sports has faded away, in Liu Jianhong’s view, every attempt in the past and the present, regardless of success or failure, will not be of no value to the Chinese sports industry. He said: All the failures are to prepare for success.
After experiencing the battle for capitalism in the past two years, the Chinese sports copyright market has suddenly cooled down in 2017. As Le Sports, once once in great beauty, is in deep difficulties, investors and practitioners tend to be rational and begin to reexamine the profit model and actual consumer demand in an effort to find the balance between dreams and reality.
Let's go up and down in the copyright market
A sunrise industry, after experiencing a long gestation period, will surely usher in a sudden boom. At this stage, passion and chaos are blended, and profits and risks dance together. There are often several dark horses who are disdain for the world. They emerged in an attitude of subversion of authority and grew at an incredible rate. They are the most eye-catching heresies, stars and benchmarks in the industry.
The phrase written by financial writer Wu Xiaobo in "Large Loss II" is undoubtedly a vivid portrayal of the Chinese sports industry over the past three years, and Le Sports is the most compelling black horse.
In October 2014, the State Council promulgated the "Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption." While raising national fitness as a national strategy, it also emphasized the need to tap the industrial value of sports. Almost overnight, the sports industry became a new investment outlet.
Taking the event's copyright as the entry point, LeSports Sports purchased 310 events in just two years, including not only the AFC, China Super League, Premier League and other popular events, but also covered golf, fighting, racing and other niche projects. Star company in the industry. In addition, LeTV Sports also expanded its operations in the areas of competition operations, smart hardware, etc., in an effort to build an ecosystem that covers the middle and lower reaches of the sports industry chain.
Le Sports, which spoke about ecological stories, was once sought after by the capital. In April 2016, shortly after winning the ultra-new media copyright for two years with 2.7 billion yuan, LeTV Sports launched the B round of financing. The target was originally 3 billion yuan, and finally reached 8 billion yuan. The company’s valuation is also from 3 billion yuan. Soared to 21.5 billion yuan.
However, starting from the third quarter of 2016, LeTV has experienced a capital crisis in all major sectors. Due to a large amount of financing, LeTV’s major shareholders borrowed to subsidize other business segments, and all kinds of copyrights of LeTV Sports were in arrears and were aired.
In 2017, due to failing to pay the copyright fees on schedule, LeTV Sports lost its core copyrights such as the AFC Champions League and Super League one after another, and the users were lost. The copyright empire that it painstakingly operated began to collapse. In the next few months, LeTV Sports was deeply troubled by layoffs, layoffs by executives, shareholder conflicts, and internal storms. It was no longer the scene in the past.
With the disillusionment of Le Sports' ecological story, the copyright market with fierce capital competition in the past two years also began to cool down.
In July of this year, Sports and Sports Forces spurred the Chinese Super League to be affected by the U23 New Deal and other reasons, and the market became less attractive. It required the Chinese Football Association to extend the period of copyright cooperation from the original 5 years to 10 years, equivalent to half the royalty of 8 billion yuan. . Some market participants believe that, in addition to the Football Association's new political factors, the cold weather of the copyright market has caused financial pressure on the physical and physical forces, and it is also an important reason for the extension of the copyright deadline.
As the second largest domestic competition IP, the CBA league's worth is inevitably shrinking. Two years ago, when super-copyright sold 8 billion yuan in price, many people predicted that CBA copyright could reach 6 billion yuan in the future. Optimists even thought that it would break the 10 billion mark. However, the broadcast rights of the CBA in the new season did not finalize the buyer until less than a week before the start of the league. According to informed sources, the price was far lower than expected.
Paid road problem to be solved
Estimates of their own abilities are not accurate enough, and growth rates do not match well with resources. Liu Jianhong, Lexus Sports' co-president, inspected the ups and downs of LeTV Sports in an interview.
Liu Jianhong said that looking back at some of the original strategies, such as buying new copyrights in the new media and entering the Hong Kong market, are open to question. However, he stressed that these are not entirely LeSports own needs, but more to suit the Group’s overall strategy of promoting the development of LeTV and mobile phones.
The rapid expansion and lack of cash flow are the triggers of the LeSports crisis. However, failure to establish a mature and stable profit model and achieve self-inheritance in time is the deep-seated reason for its trouble.
In the music ecology chain of LeTV Sports, copyright is the cornerstone of its normal operation to win high quality copyright, attract a large number of users, gradually increase the number of fee-charging members, and then establish viewing terminals through LeTV and mobile phones to drive the consumption of related hardware and derivative services.
However, copyright is a double-edged sword. Buying copyrights can certainly attract users and occupy the market, but high copyright expenses are a severe test of copyright liquidity.
Sun Hongbin, the founder of Sunac, a strategic investment in LeTV, publicly disclosed that in 2016 LeTV Sports had a copyright expense of 1.35 billion yuan, and the income was only 50 million yuan, which was a loss of 1.3 billion yuan a year.
For video sites, the traditional business model is to use traffic for advertising. However, advertising revenue alone is far from enough to support the skyrocketing copyright expenses. Therefore, LeTV Sports hopes to pay for membership. However, this road is far less smooth than imagined. According to public data, the number of LeTV sports members exceeded 3 million at the time of maximum, and the annual income was no more than 1.8 billion yuan. In 2016, the total amount of copyright expenses was no less than 3 billion yuan. In order to attract paying members, LeTV Sports also sent out a large number of televisions and mobile phones, which is equivalent to pre-paying some members' income.
Liu Jianhong believes that for the new media platform, the ineffective promotion of the user payment model is an important reason for the CCTV and local stations' free broadcast of many events, which directly draws away a large number of potential paying users. In response, he complained: There is a free look, who is willing to pay for it?!
On the other hand, piracy has continued to escalate, magnifying the risk of copyright operators. Since last year, LeTV Sports and Physical Olympics have filed infringement lawsuits on the piracy of other platforms.
Yu Hang, the chief operating officer of the former LeTV Sports responsible for copyright business, said that in China, the broadcasting of sports events is not considered a work, whether it enjoys copyright protection, and the legal provisions are not clearly defined. If there is no copyright protection, anyone can broadcast and pirated copies everywhere, then for high-priced companies to purchase, it is tantamount to seeing through traffic.
In fact, the problem of copyright liquidation encountered by LeTV Sports also tortured the entire industry. Whether it is the Tencent sports that monopolize the copyright of basketball events such as the NBA, or the PP sports that have almost eliminated the football resources such as La Liga and China Super League, it is still unknown when they can achieve profitability.
Buy IP, not as good as IP
In the past two years, the domestic copyright market frequently staged a price war, and capital was rushing towards copyrights in foreign competitions such as the Premier League and the NBA. An important reason was that local high-quality copyright resources were scarce. When the buy-buying pioneer LeTV Sports suffered setbacks, more people realized the importance of copyright.
To take over the copyright of a foreign event and do it better is to give others a wedding dress. Yu Hang believes that the development of China's sports industry will depend on the fact that overseas resources will not be allowed to land in China. It is most significant for the Chinese sports industry to invest in the copyright of independent events. Even if it comes up to a loss, it should go firmly.
Liu Jianhong also shares his deep feelings. He said that creating IP around the needs of the Chinese sports crowd is the future trend and a blue ocean that can be developed for a long time. Therefore, LeTV Sports has begun to adjust its business structure and transform itself into an independent IP game.
According to Liu Jianhong, the Chongqing International Women's Half Marathon, operated by Le Sports subsidiary, has seen a steady increase in the size and influence of the competition since its establishment in three years, and most importantly, it has made a slight profit this year. This gives LeTV Sports a firm confidence and will continue to nurture special events in the future.
In fact, the establishment of independent IP events is becoming a new industry trend. Since 2015, in addition to the road running events represented by the marathon all over the country, original competitions such as 3X3 basketball and fights have continued to emerge.
Insiders pointed out that one of the core elements of IP-building success lies in communication. For the same project, such as football, there may be multiple companies operating different IPs. Ultimately, who can survive will depend largely on who spreads more and has more influence. From this perspective, Internet media platforms have certain inherent advantages in operating autonomous IP games.
From the perspective of European and American countries, IP development has a long incubation period. Whether it is the NBA, the Premier League or the Tour de France, they have experienced at least decades of historical accumulation and have had today's brand influence and commercial value.
In this regard, Liu Jianhong stated that sports is a slow industry and requires intensive cultivation. China's sports industry is still in its infancy. Capital needs to follow the law of development, and it cannot be quick and profitable.
Although the halo of LeTV Sports has faded away, in Liu Jianhong’s view, every attempt in the past and the present, regardless of success or failure, will not be of no value to the Chinese sports industry. He said: All the failures are to prepare for success.
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