The Research Of The Optimizing Of The Profit Model For China's Video Websites

Currently, Internet advancement has completely developed into the age of WEB2.0 in which information is released by all people worldwide via Internet and people plays the principal role. It has no denying that video is exactly the most typical internet communication mean. As the development of video technology, video website has emerged and swept across the world as a whole consequently. In China,video website has been developing for 3 years.Judging from numbers merely, the development of video website is nothing but thriving indeed, but the problems hidden behind the bright surface are harsh and inevitable. Among these problems, the first and foremost is the problem of profit model.This essay,on the basis of Porter's value chain theory,analysed profit model at the angle of value chain.We start from the analyses on current condition of China's websites,then surveyed and analysed its formulation and identified its deficiencies and the causes. Based on all above researches,we discussed the approaches of the optimizing of existing profit model and its prerequisitions.Ultimitely,we singled out Youku,which dubbed"China's top-notched video website"as an example,in order to identify the advantages and disadvantages of its profit model.Here we deemed the existing profit model has the merits of apparent profit ereas and its composite elements are various in nature.A rough and linear profit model has been forged in China's video websites industry which covers the components of contend providers,platform providers,subscribers and extended elements.namely"content—platform—attention—commercials". Therefore,it has many deficiencies that can be summarized up as following:fragmentary elements,short value chain and simple profit areas,loose and fracture structure.Research has demonstrated that the reasons that caused these deficiencies are as following:obscure industrial distribution,unperfect subdivision and low level of participation of relavent industries.The constitutional elements of optimized profit model are content providers, platform providers,subscribers,consumers, technology developers and operators as well as extended elements.Through reseach we know that the shape of which the profit element ties with each other is no longer the simple linear but more complicated radiant structure.Compare with existing profit model,the characteristics of optimizing one are as following:relatively integrate constitutional elements,extended value chain and increased profit areas as well as stronger interaction between elements.The profit model should be established under some prerequisitions,they are:perfect industrial distribution,the subscriber market subdivision has reached to some level,enough subscribers and VC's participation.