The operation of domestic video sites seems to have been equaled with 'loss', but in a number of front-line video sites are still at a loss, but announced the achievement of profit mango TV.Lu Huanbin, director of Hunan Radio and Television on November 30 said publicly that, Mango TV is expected to achieve annual profit of 400 million -500 million. So, what is the reason for the industry second-tier mango TV but took the lead in breaking the bottleneck in the video industry profitability?
In recent years, the rapid development of China's video site industry, by the Happy Sunshine Interactive Entertainment Media Co., Ltd. (hereinafter referred to as 'Happy Sunshine') is responsible for the specific operation of mango TV, the number of users is also rising.Data show that starting from 2014 mango TV Single-player strategy Up to now, the number of mobile users has increased from zero to 500 million, the number of IPTV service providers has exceeded 55 million and the number of Internet TV terminals has reached 65 million. Although the number of users of mango TV has been slightly higher than that of two or three years ago However, the number of active users of Mango TV is still at the level of 10 million compared with the number of active users of App exceeding 200 million in a single month by three platforms, namely Aiqiyi, Tencent Video and Youku.
Although mango TV is still the second tier in terms of number of active subscribers, a series of performance data have been released in succession as five companies, including Happy Sunshine, plan to merge into the assets reorganization of Happy Buying. Mango TV Performance is highly concerned about the industry.
Public information shows that in 2015 and 2016, Happy Sunshine's revenue grew from less than 1 billion yuan to nearly 2 billion yuan, but has been at a loss, net profit was -9.4 million and -6.94 billion. Year as a turning point in performance and achieved a revenue of 1.38 billion yuan and a net profit of 158 million yuan in the first half of 2017. This performance also let Mangai TV CEO Cai Huaijun at the Beijing Mangzao TV 2018 Advertising and Investment Association 'The industry's fourth, earliest profit, soon to market' this 12 words to describe the mango TV.
On the other hand, other domestic video websites have not yet made any announcement that they have realized profits. Taking Aiqiyi as an example, the public figures show that in 2013-2016, Aiqi Art lost a total of 7 billion yuan and its loss increased year by year from 2013 Year of 743 million yuan to 2.77 billion yuan in 2016. At the same time, from the earnings report of Alibaba can be found, including Youku digital entertainment business, there will still be more than 3 billion loss per quarter. Except for the first For example, the net profit of station A in 2015 and January-September 2016 was 113 million yuan and 146 million yuan, respectively.
However, according to the analysis of the insiders, at present, the domestic online video industry is still in the stage of fighting for market share. Youku, IQIYI, Tencent video and other front-line platforms do not seek profitability. In particular, backed by BAT three giants, For example, Alibaba Entertainment has repeatedly said that it is 'rich daughter' to Youku, so mango TV, which has a relatively 'plate', is the first to declare its profit or its own purpose.
Mango TV at this stage is moving forward its listing of the road early June this year, the Happy Buying announcement said it was planning asset purchases, and disclosed the transaction to be the subject of the purchase of assets including the company with the same actual controller Hunan Radio and Television Control 5 companies, or controlling stake, including Happy Sunshine, days entertainment media, mango entertainment, mango video and mango mutual entertainment.According to the Happy Shopping deal released after the show showed that the transaction volume of the merger of about 11.55 billion yuan In the view of Wei Pengju, dean of the Central University of Finance and Economics Institute of Culture and Economy, this merger and acquisition is a kind of resource integration. Hunan Broadcasting and Television, through the operation of capital, diversified the contents of various enterprises to simplify the administrative procedures of Hunan Radio and Television, which is beneficial to further Bigger and stronger.
In the reopened trading case, mango TV's position can not be underestimated.Data show that in the five target companies a total of 11.55 billion yuan of the total transaction amount, Happy Sunshine acquisition price of 9.53 billion yuan, accounting for more than Bacheng The public information shows that after the completion of this transaction, the main business of happy purchase will be expanded from the media retail business to new media platform operation, new media interactive entertainment content production and the entire e-commerce industry chain.
From this point of view, Mango TV in the overall structure of the Happy Buy reorganization played an important role.Mango TV's profit also means that mergers and acquisitions and a step toward success.