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Sina Technology: Due to time constraints, we will stop our conversation with Mr. Zou here today. Thank you very much, Mr. Zou, for coming to our interview room, and also thank the netizens for their participation. Thank you, Mr. Zou.
(End of chat)
Zou Shenglong: Internet video may be the next wave of growth hotspots on the internet, and it is a strategic high point that every internet company pays great attention to. Of course, we are a bit different because in fact, doing downloads and doing videos are both similar things - we are moving data. The difference is that download data is unordered, while stream data is ordered. Video data is stream data, which follows order. But when facing users, it becomes a download tool, changing its face into the face of a video-on-demand portal. The business model has not changed much either. When we were doing downloads, we did advertising; when we do videos, we still do advertising.
Zou Shenglong: Thank you Sina, thank you to all the netizens of Sina, thank you!
Mr. Zou said that as a party involved in the verbal spat, I definitely think this is a very negative thing because the instigator is an influential internet media outlet in China. It was so loud and bold to cause trouble at Xunlei's headquarters in Shenzhen, which first off is unbecoming of their status, and also makes us very angry. This is our reaction as the parties involved.
Sina Technology: Hello everyone, we are now live at the 2009 China Internet Conference. We are very happy to have invited Mr. Zou Shenglong, CEO of Xunlei Company, to talk about Xunlei's recent situation. Mr. Zou, say hello to the netizens!
As a party involved, my perspective might not be neutral. As a party involved, I definitely think this is a very negative matter because the instigator is an influential internet media outlet in China. It was so loud and bold to cause trouble at Xunlei's headquarters in Shenzhen, which first off is unbecoming of their status, and also makes us very angry. This is our reaction as the parties involved. Of course, stepping out of the role of the parties involved and looking at the industry, we objectively see a fact. Why would such an event happen? Because indeed, the internet video market has huge interests and the cake is very big. Indeed, due to Xunlei Kankan's excellent performance in this area, it has caused some jealousy, leading to such reactions.
Zou Shenglong: Recently there have been some changes in our products, mainly on the Xunlei client where Xunlei has started experimenting with value-added services around downloads. We have created a plug-in platform.
Sina Technology: Mr. Zou, you just mentioned that Xunlei Kankan has already generated over 100 million yuan in revenue in the video domain. How is Xunlei's overall profit situation this year?
Sina Technology: You talked a lot about the advantages and disadvantages of verbal spats. As a platform-based internet company, Xunlei is often involved or dragged into verbal spats in many fields. Does this affect Xunlei's advertising strategy or advertising revenue?
Zou Shenglong: Good afternoon, everyone on Sina.
Zou Shenglong: This is hard to say because it depends on whether both sides have achieved their goals here. I said that Xunlei was dragged into this verbal spat, and Xunlei does not subjectively intend to create more noise. If the instigator wants to continue spitting, we still need to respond.
Sina Technology: When did Xunlei start making profits?
Sina Technology: Xunlei has made a lot of moves in product strategy this year. The first question is, please introduce some of the new products we have launched recently.
Xinhua News Agency, Beijing, November 3rd (afternoon news) —— The 2009 Internet Conference was held in Beijing from November 2nd to 3rd. Sina.com, as the officially designated chief partner, provided full live coverage of the conference. In an exclusive interview with Sina Technology, Xunlei CEO Zou Shenglong stated that the internet video market has significant interests. Xunlei's success in this area has aroused jealousy from some people.
Zou Shenglong: Xunlei started making profits in 2006.
When we look at it this way, our mindset becomes more peaceful. It shows that our efforts in the right direction have been recognized by society and the industry.
Sina Technology: Xunlei Kankan is a video playback platform, and it has received particularly high attention recently. We are a force to be reckoned with in the video domain. We would like to hear your thoughts on the current state of the Chinese internet video industry.
Zou Shenglong: Next year's plan is to make the video better and also improve the download experience.
Sina Technology: Please share with us what plans you have for next year?
Zou Shenglong: The specifics cannot be disclosed yet, but Xunlei is making profits in the hundreds of millions scale, and Xunlei's main income still comes from advertising.
Zou Shenglong: Verbal spats are definitely due to some underlying reasons. An old saying goes, "There’s no smoke without fire," meaning there must be some reasons behind the verbal spats that give both parties a reason to engage in them. Verbal spats are a necessary phase in any industry when there are conflicts or chaos. They don’t necessarily have a causal relationship with the outcome; they are merely a phenomenon. Of course, we try to view this phenomenon positively. A verbal spat objectively indicates the entire society's focus on it. Under closer societal scrutiny or more focused attention, it is certainly not a bad thing for the industry. Many opportunities and issues within the industry will be more objectively understood under this magnifying glass. Therefore, it is definitely a good thing. Of course, for the two parties directly involved in the spat, it may not be a good thing because it consumes a lot of energy and affects one's mood while working, which is certainly not a good thing.
The following is the transcript of the exclusive interview:
Sina Technology: The development of the internet in China has reached a stage where verbal spats are frequent in the industry. We believe that many people in this industry have personal experiences, whether in the antivirus field, the SNS field, or the video field. What is your opinion, Mr. Zou, on this characteristic of the internet? Do you think verbal spats are a driving force or an obstacle for the industry?
Sina Technology: I know that Xunlei has recently joined a verbal spat in the video field. How do you view this incident? Is it a driving force or an unscientific factor for the development of the video industry in China? Xunlei CEO Zou Shenglong and the host Xunlei CEO Zou Shenglong
Zou Shenglong: Verbal spats always have positive and negative aspects, and there will definitely be an impact. However, it is difficult to evaluate the comprehensive effects right now. Perhaps it will make more advertisers realize how well Xunlei is performing; perhaps it will cause some advertisers to worry during this process. Both scenarios are possible. But when we step out of these two companies and look at the industry, we see the development of the industry itself. Verbal spats themselves are milestones in the development of the industry. They represent the enormous commercial interests within the industry. The reason why it is chaotic is because there are interests in this industry, and the competition for these interests leads to verbal spats. Specifically, when we look at this industry, we see that it revolves around copyright issues, engaging in both positive public relations and negative public relations. However, in reality, we see that in the past two years, the top three players in this industry have done two specific things. First, they spent hundreds of millions of RMB purchasing content. Taking Xunlei Kankan as an example, from the blockbuster movie "If You Are the One" at the beginning of this year to the current "Secret" and "The Founding of a Republic," all are legally purchased movies, which are contributions to the industry. Second, these companies, especially since entering 2009, whether it is Youku or Xunlei, have all reached annual revenues in the hundreds of millions scale. That is, real GDP has appeared in this niche market. Since you can make money here, you can take part of the earnings and distribute them to your upstream content providers, who can then produce better content, starting a virtuous cycle. These two facts are undeniable and worth viewing very positively.
Sina Technology: When will this verbal spat end?
Zou Shenglong expressed that Xunlei was dragged into this verbal spat. Xunlei does not subjectively intend to create more noise, nor does it have such intentions. Of course, if the instigator continues to spit, we still need to respond.