Research On The Profit Model Of LeEco

In recent years,the Internet industry increasingly fierce competition,every network video companies are striving for all-round development.With the popularity of triple play and 4G network,the promotion of Multi-screen linkage and other factors,the competition between today's video sites is not just content copyright dispute,but to diversify to seize the market."Internet +" strategy guides the direction for the rapid development of the Internet industry,the Internet industry has unique profit model and specific corporate strategic positioning,and the correctness of the profit model determines the company's future development.Chinese Internet companies are gradually realize that enterprises have to find a suitable profit model to achieve lasting and stable earnings,then to provide a correct positioning for customer value,revenue source,customer scope,business activity,profitability and sustainability.In this context,the research of Internet video company's profit model has an important guiding significance for the development of the entire Internet industry.This article chooses Le Eco company which start with the Internet video as a case to analyze.Le Eco created the “Platform + content + terminal + application” four-in-one vertical industry chain model,it overturns the traditional profit model.In the main part of the article,the paper first analyzes the holistic profit model of Le Eco,and then specific analyzes the terminal product model.Summarizes the advantages and disadvantages of the profit model,and then put forward some suggestions for its disadvantages,such as reduce copyright purchase expenses,reduce extension expansion,maintain a reasonable proportion of debt and sufficient cash flow and enhance the sustainability of the profit model.At the same time,through the case study of Le Eco's profit model,it concluded some revelations for other similar types of Internet companies' profit model,some suggestions for the sustainable development of the Internet industry.The revelations include changing strategic objectives,playing their strengths,carrying out extensive cooperation,expanding profit points,integrating online and offline resources,finding their own profit model and preventing business risks.