After a period of time since the issuance of the "Entertainment Restriction Order" by the State Administration of Radio, Film and Television, its butterfly effect is gradually emerging in other industries. As the largest domestic platform for broadcasting and operating film and television entertainment programs, senior executives of Youku recently revealed to the Evening Paper reporters that the current restrictions on entertainment programs have made many variety show copyright holders feel caught between a rock and a hard place, but there has been no phenomenon of "big discount sales". The purchasing price of video websites has not yet been able to be lowered. Regarding the rumored upcoming regulations such as the "ban on inserting ads in TV series", Youku's vice president of marketing, Dong Yawei, stated that they will introduce new cooperative marketing advertising models to expand revenue sources.
Youku's chief editor, Zhu Xiangyang, said that as the largest internet buyer of film and television copyrights, Youku plans to launch 22 exclusive dramas and 200 popular dramas next year. In terms of movies, they will cooperate with Hollywood's six major studios and top domestic film and television companies. Additionally, they have obtained exclusive resources for the London Olympics. However, regarding the precedent set by Sohu this year when it spent 30 million yuan to acquire the New Princess Pearl and recouped its costs through redistribution, Zhu Xiangyang remarked that Youku will not overly rely on competitors to reduce costs because "we are not a redistribution website."
"It is normal for everyone to attack the first place, so Youku will not redistribute many of its exclusive resources and will use them to widen the gap with competitors," Zhu Xiangyang said.
It is worth noting that although the Entertainment Restriction Order has been issued for some time, the prices of variety show copyrights seem to have no signs of a sharp drop. An industry insider told reporters that for many programs under provincial satellite channels that are uncertain about their future and whether they can continue to be broadcast on small screens next year, video websites seem to be their best channel for landing. However, Zhu Xiangyang frankly admitted that although many producers do indeed have this idea to expand the program's fame, for copyright operators, return on investment is the main factor they consider.
"The general trend of copyright prices now is still rising, and no copyright holder will willingly fall behind." Zhu Xiangyang told reporters that whether video websites can improve their bargaining power for variety show copyrights in the future remains unclear.
In addition, regarding the currently rumored possibility that the State Administration of Radio, Film and Television may ban ad insertions in TV series next year, Dong Yawei stated that video websites have not yet been affected. "Youku is planning to launch some new product models, which is our key cooperative marketing model for next year, and is expected to bring more revenue sources." He also mentioned that with the increase in the number of viewers of online video websites and the growing recognition by customers of their advertising value, online video advertising accelerated growth in 2011. According to the core data of the third quarter of 2011 released recently by iResearch Consulting, the scale of China's online video market increased by 30.9% quarter-on-quarter and 96.7% year-on-year, maintaining a year-on-year growth rate of around 100% for three consecutive quarters.
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