Music Television last year in the end how tragic? Until the evening of January 30 out of the 2017 performance notice, the music giant huge losses of 11.6 billion yuan brutal fact was placed in the public .116 billion loss big hole mainly includes 3.5 billion pairs Film and television rights, available-for-sale financial assets and other intangible assets, provision for impairment losses.
'Having the largest content library of genuine rights to copyrights' has always been a competitive advantage that LeTV has been proud of. << Daily Economic News >> Reporters noted that even in the music scene under the conditions of high tension, the procurement of film and television rights The pace has not stopped, 18 months, the rapid development of music video rights over 4 billion yuan, while the current value of 6 billion yuan in book value of copyrighted assets are facing the risk of gradual impairment.
So, LeTV currently have what kind of big IP film and television rights? The future impact of film and television copyright impairment factors What is the change? In this regard, LeTV network with a general announcement to respond to reporters, did not answer specific questions.
Film rights have shrunk 4.1 billion
As an internet company, intangible assets have always been the top priority of LeTV.com, which disclosed that as of June 30, 2017, the book value of LeTV Intangibles amounted to RMB 8.6 billion, accounting for about 24% of the total assets. Such a high proportion of intangible assets, mainly due to purchase of copyright, video copyright corresponding amount of 64 billion yuan.
Even in the past two years 'internal and external difficulties', LeTV has never given up on the film's copyright 'buy and buy' by the end of 2016, the original value of music video rights book from about 6.1 billion yuan to 8 billion yuan by 2017 6 At the end of the month, the original value of the rights of the music video rights of movies grew to 104.78 billion yuan.
It is not difficult to find that during the 18 months from the end of 2015 to the first half of 2017, the copyright of LeTV expanded rapidly by more than 4 billion yuan, a period in which LeTV crisis continues to be fermented. By the end of June 2017, The book value of copyrighted videos was 6.37 billion yuan, shrinking 4.1 billion yuan.
Judging from the expected impairment in 2017, these film rights with a book value of more than 6 billion yuan will continue to be impaired in the next few years and become the "landmine" of the performance of LeTV.
In fact, the film and television rights has always been the core of LeTV's high-quality assets. In the eyes of the professionals, LeTV Video was originally one of the four major video websites in China and was hitherto one of the most influential in the world. The net also said that in order to maintain its competitiveness in the content of the company to increase user stickiness, the company continued to increase investment in the purchase of film copyright.
However, 'If the purchase of the copyright can not be realized in a timely manner commercial, or with the film and television update faster, intangible assets immediately devaluation, affecting the company's cash inflow.'
Video website to buy the film and television drama copyright realization refers to the copyright distribution, advertising investment, paid membership, etc .. According to the impairment test parameters, the impact of music video copyright asset impairment factors, including future advertising, membership and distribution income and the copyright of the useful life .
So, LeTV asset impairment assets specific reason is the film and television distribution is not out? Advertisers do not favor LeTV? Copyright expiration time approaching? In response, the "Daily Economic News" reporter interviewed the above LeTV insiders, As of press no response.
One of the factors for reference is the website traffic.Reporters noted that the number of LeTV video visitors and other key indicators have shown a downward trend in the 2016 semi-annual report shows that during the reporting period, the company's website average daily UV (number of visitors) over 8000 Average daily VV (number of broadcasts) 390 million. By the first half of 2017, the average daily UV of LeTV was close to 57 million with a peak value of over 78 million and a daily VV of 320 million. Both sets of data mean that LeTV's audience Drain, see less and less people.
Content advantage no longer has become a 'lost team'
In the network audio-visual industry, the video site 'self-made + purchase of copyright' has become the standard platform, made in the homemade music previously made some achievements, Le Yang film home-made "Prince Gong Gaoguang Ji" impact at that time Of the net theater market, Jiayue Ting wife Wei Wei became the mouth of the media's 'China Opera Godmother'.
Content self-made has also become one of the important strategies of LeTV, at the end of June 2017, Jia Yueting also expressed the hope that Leo will lead LeTV to gain an absolute position in terms of self-made content.In the LeTV 2015 and 2016 related earnings reports, Showcasing its achievements in home-made dramas, such as the 2015 annual report, which shows that the self-made series "Empress Dowager" is attracting a lot of paying members with wonderful content to bring excellent traffic flow. 2016 also shows several Excellent home-made dramas.
However, in the semi-annual report of 2017, LeTV almost did not mention the achievements made in the self-made content in the report period, and the company proposed a new concept of "Focus on Home Ownership" but also did not talk about the project name and progress of the specific home-made content and.
A video industry practitioners told reporters that LeTV had a lot of high-quality homemade content, but with the rise of other video sites homemade content, itself affected by the crisis of music as much as possible in the home-made drama too difficult 'The skin of the hair will be attached?' The commenter said, 'I am also a music video member, you see now what are the music videos, not the old drama is a small drama, the audience did not appeal at all '
Internet analyst Liu Buchen in an interview with the "Daily Economic News" reporter bluntly, when the music as a whole to go up, whether it is buying or self-made no problem, but now music as funding difficulties, music video content has no advantage , Coupled with the poor performance of music and television, music has left behind.