Is the Internet about to become a colony of the entertainment industry? According to the "27th Report on the Development Status of China's Internet" released by China Internet Network Information Center (CNNIC) on January 19, 2011, by the end of December 2010, the number of internet users in China reached 457 million. The application rate of entertainment applications such as online music and online videos ranked at the forefront of China's internet applications after achieving user growth. Therefore, the industry expects that within five years, the internet entertainment market will be a larger market than traditional industries.
Regarding physical industries, the Internet can fully leverage its role in information integration, dissemination, and sharing. In order to adapt to the trend of industrial convergence, from applications to entertainment, all leading internet companies have heavily invested in advanced layouts.
Figure: The "27th Report on the Development Status of China's Internet" released by CNNIC
I. Comparison between Traditional Entertainment Market and Internet Entertainment Market
1. Digital Music Causes Record Companies to Change Faces
Data shows that since 2006, only more than ten singers in China have been able to sell over 100,000 copies of their albums. Conversely, the number of internet users downloading songs has surged sharply. The "27th Report on the Development Status of China's Internet" shows that currently there are 457 million internet users in China, and downloading music has become one of the most important actions for internet users. If each music work is priced at 2-4 yuan, the entire Chinese record industry loses nearly 10 billion yuan annually on the internet, which is a staggering figure that shocks the record industry.
In order to reverse the current situation, international record giants place great emphasis on digital music and have formed various levels of cooperation with giants like China Mobile and Baidu. These signs indicate that record giants are strongly determined to embrace digital music.
And popular American band Nine Inch Nails, British rock band Oasis, famous singer Madonna, etc., have publicly stated that they also plan to use the internet to release their own digital music.
2. Rapid Development of Online Videos Affects Public Movie Watching Patterns
In recent years, some Chinese television entertainment programs have shown signs of decline and no longer possess their former charm. Looking at the content of current TV entertainment dissemination, words like "stupid", "mature", "empty", "boring", and even "disgusting" are evident. "A set of incomprehensible questions, two hosts who talk nonsense, a few guests pieced together, and a full audience of simple-minded viewers," "entertainment" has almost become "foolishness", "intelligence" is actually "suppressing intelligence", fully exposing the shallowness, vulgarity, and mediocrity of entertainment programs.
With the continuous increase in the scale of online video usage, it has triggered changes in the media consumption habits of online video users. The internet has become the most commonly used movie watching pattern for online video users, instant online communication software. For example, when new movies are released, 89.3% of online video users choose to search for and watch new movies online, while 31.9% go to the cinema, and 17.5% buy DVDs to watch.
By December 2010, the number of domestic online video users reached 284 million people, an increase of 43.54 million people compared to the end of December 2009, with an annual growth rate of 18.1%, and an internet penetration rate of approximately 62.1%. Online videos have developed into an important channel for people to obtain movies, TV shows, videos, and other digital content. Their media value has rapidly increased, and their position in the internet industry continues to rise.
II. Trends in the Internet Entertainment Market
(1) Video Websites - Entertainment Listing
On April 20, 2010, Youku officially launched the "Youku Production" strategy. The "11 Degrees Youth Film Action" jointly created by Youku, China Film Group Corporation, and Chevrolet Cruze became one of the major highlights of the industry for the year. Leading young directors in the industry such as Zhang Yadong, Shen Yan, and Yin Lichuan gathered at Youku, introducing the new concept of "New Media Films" to the audience's view.
These new media films, which gather brand, creativity, and marketing elements, and revolve around themes of youth and struggle, have repeatedly created viewing frenzies on the internet. Since then, Youku has formed three major content sources: media cooperation, film and television copyrights, and Youku production. After Youku's listing, its stock price soared, Ku6 continued to incur losses forcing its founder to leave, Tudou, PPS, and Xunlei are actively preparing for their listings, traditional portals and some second-tier video enterprises are quietly seeking alternative paths, and the domestic video industry landscape is constantly changing.
(2) 9158 - Integration of the Entertainment Industry
In 2009, renowned venture capital firm IDG decided to timely focus on developing video dating websites and quietly invested several million US dollars in 9158.com, hoping to transform 9158.com into an entertainment platform integrating online music, celebrity dating, and celebrity promotion functions. Therefore, 9158 began promoting cooperation with media and initiated a "two-year plan."
In 2010, 9158 refined its strategy, officially receiving investment from Sina, and simultaneously integrated UC into 9158's business. This undoubtedly greatly enhanced 9158's strength, and product improvements are expected to allow 9158 to provide more professional karaoke modes and more humanized services. A new type of "Entertainment Karaoke Community" model was born in 2010.
From a market share perspective, 9158 has the potential to leap from being the sales champion to becoming the double champion in online sales. With the participation of the Sina brand, 9158 may become the first company to transition from grassroots entertainment to a combination of star entertainment and grassroots entertainment.
III. New and Old Media: How Can the Entertainment Industry Reasonably Allocate Its Promotion Channels?
The advantages of the internet, such as high timeliness, strong targeting, good interactivity, wide coverage, low cost, and diverse promotional methods, have provided celebrities with a free platform for hype and given ordinary people a certain degree of discourse power. Its characteristics of fast transmission speed, wide range, and quick feedback make it likely to become the "fifth media" after the traditional four major media.
A well-known agent in the industry said: "From QQ to MSN, from Kaixin001 to Renren, from blogs to microblogs, a network social world closely connected to real life is gradually taking shape. Many artists in our company have their own usernames, and we have also established our own groups, becoming a family online. Through interactive platforms, it's easier to get close to fans. Besides the company being able to release news, stars can announce their own dynamics, and they can also interact with fans in games, allowing fans to understand the stars faster and better."
(1) Celebrities' "Microblogging" Life
Cai Kangyong always elegantly says some beautiful words, "Because of loving someone entirely, I feel that I am alive, this is the greatest reward we receive from love. As for how much love the other party can return to us, it may not be the most important thing..."
Why does he enjoy "preaching" on microblogs? Cai Kangyong said that with so many people paying attention to him and reading his words every day, he hopes to give others something valuable through himself, "If I only write about my daily eating, drinking, and going to the bathroom, what would it mean to others?"
As the number of fans increases and the influence of microblogs expands, celebrities use microblogs as their own news release platforms, or to promote their works, or to counter rumors about themselves.
(2) Secrets: Inside Story of Xidan Girl's Appearance on Spring Festival Gala
Xidan Girl quickly became famous online in February 2009 with her song "Angel's Wings," which coincided perfectly with the time and features of the grand online game "Eternal Tower" released in 2009. This year, Xidan Girl sang a song called "Missing Home" on the Spring Festival Gala. At almost the same time, Shanda Game Carnival launched an online event themed around "home," and soon after, Xidan Girl signed a contract with Shanda. All these coincidences and doubts gradually revealed the mastermind behind Xidan Girl's fame.
(3) Integration of Online Marketing and Offline Activities
Although the entertainment industry needs to rely on the internet industry to improve itself, this does not mean that offline traditional models are useless. In the past two years, Hunan TV's "Super Girl" and "Happy Boy" were both highly successful, and their offline preliminary selection activities played an indispensable role. It is reported that a "Shen Mi Palace Party" will be held in Hangzhou, with Yang Mi and Jaycee Chan attending in person, three beauty teams consisting of a hundred beauties, inviting successful individuals from Beijing and Hangzhou. The host, Sina 9158, integrates online preliminaries with offline gatherings, making us take notice.
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