Optimization Strategy Of Business Model Of Youku Potato Video Website

The Chinese Internet video industry after 10 years of development, whether it is the mature stage have reached the user scale, content size or the size of the market, but the entire Internet video industry is in deficit, even more investment, more investment, not loss; loss of more business circles; three years from 2012 by 2015, many Internet video company Youku, represented by a large number of independent broadcast copyright, merger Baotuan, invested heavily in the production of original content etc., hope that through different methods, realize the enterprise’s profitability, but on the basis of the financial statements show that: in 2014, Youku loss 143 million $Iqiyi $136 million loss. Sohu, although the Sohu did not announce the financial situation alone, but in 2014, the Sohu annual loss of $. Domestic many of Internet video commercial phenomenon in the literature, bluntly the industry’s business model is not perfect, and points out that the three big reasons which caused the loss of industry: a single profit model, customer loyalty is low and cost high. But the question is, what are the reasons for what caused the whole industry had the same problem.This paper selects the currently domestic Internet video industry in the market share of the largest site Youku as the research object, from the industry level, website management level, financial indicators level analysis, and eventually return to build a virtual social economics based theory model and investigate the cause of the long-term loss of the most fundamental reason. Through the research found that currently domestic Internet video industry business model is basically the same, rely on video content to attract users gather, scale effect, then the size of the user to the advertising and sales, website is the main source of income is advertising revenue. In order to maintain the business model. The site was forced to spend huge sums of money for premium content procurement lead, competition push up the purchase cost, but purchase content alone is not sufficient to form a user’s loyalty to the website, so t h e w h o l e b u s i n e s s m o d e l w e n t i n t o c o n t i n u i n g t h e v i c i o u s c y c l e.The author carries on the analysis to the financial data of actor cruel net over the years, from the point of view of financial data, Youku’s overall revenue structure, advertising revenue accounted for more than the industry average, but cost is higher than the industry average, only content costs will occupy Youku annual income of nearly 5 percent. If only from the financial data, the high cost of content is the cause of youku.com long-term losses, but if the analysis finds virtual social dynamics model is further constructed on youku.com, resulting in high reason is not a single profit model, the content of the cost of youku.com long term losses on these issues, but in the design of the site at the bottom, the lack of contact between members of diverse content of building function and consciousness based on web in the latter part of the operation, because of the lack of the underlying power circle and causing the site to produce adhesion to the user, which led directly to the website everywhere in the evolution of business models and business forms is limited, have to cash to buy content maintain the users of the site retained, so that even in the website advertising revenue situation enough Is long-term in a situation of loss.