Research On Optimization Of Profit Model Of MG Internet Video Company

With the development of Internet technology and the wide application of related technology products,the Internet gradually exists in all aspects of people’s lives.Especially since 2020,affected by the new crown pneumonia epidemic,the Internet has become an indispensable technical support in the normalization of epidemic prevention and control.During the COVID-19 epidemic,people ’ s online entertainment time has increased significantly,and the growth in demand for online entertainment among netizens has stimulated the expansion of various cloud entertainment methods.Among them,online video has become the entertainment choice for netizens,expanding the capacity of the Internet video industry.At the beginning of the 21 st century,my country’s Internet video industry has just started.With the advancement of technology,the gradual improvement of market supervision,and the cultivation of user habits,the Internet video industry has developed to a relatively mature stage.However,with the impact and diversion of the short video industry in recent years,the competition in the Internet video industry has become more intense.However,the Internet video industry still has not found its complete profit model.Even the industry leaders i Qiyi,Youku and Tencent Video,which have strong technology and huge user base,are still in a state of loss.However,MG has achieved profitability,becoming the only profitable video site in the Internet video industry.Therefore,this paper chooses MG company to study its profit model,and proposes optimization suggestions for it to remain profitable in the fierce competition in the future.It also provides a reference for other companies in the Internet video industry to use the profit model to serve the company’s daily production and operation.Achieve corporate profitability goals.Based on MG’s financial data and operating conditions from 2018 to 2020,this paper takes the five components of the profit model as the starting point to analyze the profit model of MG company.Analysis,combined with relevant financial data and financial indicators,financial evaluation of MG’s profit model from three aspects of asset structure,profitability and cash flow.Through the above analysis and evaluation,we found the deficiencies of MG’s profit model,and analyzed the reasons for the deficiencies,such as excessive dependence on affiliated transactions for operating income,poor ability to obtain profits,content tends to be homogeneous,and industry supervision is strict,etc.,and discuss the problems.Put forward relevant optimization suggestions,improve corporate profitability,and provide reference for other Internet video sites.