Online Video Industry Research Articles

Analysis of Profit Models for Digital Technology Enterprises

The Chinese online video industry is developing at a rapid pace, and by 2022, the market size of the online video industry has reached 162.63 billion yuan. The Chinese online video industry has gone through a period of growth and standardization, and is currently in a period of integration and exploration. It is necessary to explore its own profit model. Bilibili is a typical enterprise in the Chinese online video industry, which has developed from a small website to a listed company today. Its profit model has certain reference significance for the same industry. Although from the perspective of financial statements, Bilibili's losses have gradually increased in recent years, and from the perspective of company profitability, long-term losses are not optimistic. However, Bilibili has still obtained strategic financing from large enterprises such as Sony, Alibaba, and Tencent, indicating that its market potential cannot be underestimated. Based on this, this article will take Bilibili as a case study to analyze its profit model from the perspective of financial statements. On the one hand, it is hoped that the online video industry will recognize the shortcomings of Bilibili and strengthen its internal management to reverse the current situation of continuous losses in the industry environment. On the other hand, I hope that other enterprises in the anime field in China can get inspiration from the advantages of Bilibili, and promote the development of the anime field in China through learning, learning and upgrading.

The Protectability and Legal Risk Prevention of Secondary Creation Short Videos

Due to its controversial nature, the second creation of short videos has entered the public eye. Since its birth, it has been at the centre of the contradiction between the copyright law to encourage originality and protect the general public from close to the work. It cannot be ignored that due to the rapid development of the online video industry and the popularisation of video editing and production technology, more and more ordinary users participate in the secondary creation of short videos, resulting in frequent infringement of secondary creation of short videos. It is of great significance to promote the healthy and sustainable development of short videos by detailing the characteristics and types of secondary creation short videos and their protectionability, and clarifying the infringement risks of various secondary creation short videos.

Analysis of Financial Fraud Cases of Le.com

Le.com (formerly LeTV), as the first online video company listed in A shares in China, which plays a role as a weather vane for the online video industry, was reported to had committed financial fraud for up to ten years from 2007 to 2016, mainly by fabricating business with related companies and third-party companies to construct a false capital cycle. On May 2, 2021, the China Securities Regulatory Commission (CSRC) issued a penalty decision. By introducing the background of Le.com and its main fraud methods, based on the three major reasons of case analysis and fraud triangle theory, this paper focuses on the problems of its ownership concentration and imperfect audit system, and analyzes the specific motivation analysis of Le.com financial fraud.

Analysis of Bilibili's Competitive Strategy in the New Trends

According to the "2022-2027 China Internet Video Industry Market Depth Research and Investment Strategy Forecast Report" published by the China Research Institute of Industry, as of the end of June 2021, the size of China's Internet users broke one billion, reaching 1.011 billion people, an increase of 0.22 billion people compared to the end of December 2020, the massive size of Internet users to promote the development of China's online video industry. The size of the short video market will increase more quickly between 2020 and 2022, with a compound annual growth rate of about 44%. The market size will grow at a slower rate during 2023-2025, but will still maintain a CAGR of 16%. China's short video market is expected to reach nearly 600 billion yuan in 2025 [1]. More than a quarter of a day is spent watching short videos on mobile devices in China. Along with visuals and audio, short video has emerged as the "third language" of the mobile Internet. Short-form video has rapidly increased in the new Internet economy. Bilibili's future development has attracted much attention. With the development of the Internet economy and the increase in significant video websites, whether Bilibili can continue its competitive advantage and successfully achieve business transformation has become controversial. This research will analyse Bilibili's business model through a SWOT analysis and make feasible suggestions for its future development.

Agglomerative patterns and cooperative networks of the online video industry in China

ABSTRACT This paper examines the impacts of new digital technologies on the geographies of cultural production. Drawing on a large dataset collected from a leading Chinese online video platform, it analyses the geographical distribution and cooperative networks of a newly emerged subsector of cultural industries, namely the online video industry. The results reveal the transformative impacts of new internet platforms on the agglomeration of cultural industries, which deviates from the traditional agglomerative patterns and reflects the new ‘digital divide’ between cities. The findings also demonstrate the dominant role that external networks play in the formation of online creative projects.

RETRACTED: What determine advertisement avoidance? An multi-regression analysis of online video ads

Online video industry is found to be the business area with the fastest growth in operating income, but few academic studies investigate audience avoidance of online video ads. In order to meet the practical needs and fill the theoretical gap, this study discussed the influence of ad-plot fit, personal involvement, advertising value and audience's advertisement avoidance on online video advertising. The study tried to find out how do ad-plot fit, personal involvement, ad value determine advertisement avoidance; and to what extent personal involvement mediate the relationships between ad-plot fit and ad value, and ad value mediate the relationships between personal involvement and advertisement avoidance. The results of this study will help to determine the key variables that affect the avoidance of online video advertisements, which has important management implications for online marketing.

Predicting the Quality of Compressed Videos With Pre-Existing Distortions.

Because of the increasing ease of video capture, many millions of consumers create and upload large volumes of User-Generated-Content (UGC) videos to social and streaming media sites over the Internet. UGC videos are commonly captured by naive users having limited skills and imperfect techniques, and tend to be afflicted by mixtures of highly diverse in-capture distortions. These UGC videos are then often uploaded for sharing onto cloud servers, where they are further compressed for storage and transmission. Our paper tackles the highly practical problem of predicting the quality of compressed videos (perhaps during the process of compression, to help guide it), with only (possibly severely) distorted UGC videos as references. To address this problem, we have developed a novel Video Quality Assessment (VQA) framework that we call 1stepVQA (to distinguish it from two-step methods that we discuss). 1stepVQA overcomes limitations of Full-Reference, Reduced-Reference and No-Reference VQA models by exploiting the statistical regularities of both natural videos and distorted videos. We also describe a new dedicated video database, which was created by applying a realistic VMAF-Guided perceptual rate distortion optimization (RDO) criterion to create realistically compressed versions of UGC source videos, which typically have pre-existing distortions. We show that 1stepVQA is able to more accurately predict the quality of compressed videos, given imperfect reference videos, and outperforms other VQA models in this scenario.

The Impact of COVID-19 on the China Online Video Industry

This paper is aimed at analyzing the impact of COVID-19 on the Chinese online video industry. The hypothesis is that since people had more time to spend on leisure during the quarantine, the online video industry should be positively affected. Using methods such as collecting data from consulting firm’s research reports, analyzing news events, and summarizing evidence from security firm’s capital market research reports, I concluded that the pandemics did bring a short-term increase in people’s attention to the online video industry, opened up new opportunities for creative business models, yet also posed potential threads shall the virus strike again in the future.

Coming to town. Importance of agglomeration factors for media cluster development in the German online video industry

ABSTRACTOnline video consumption is growing strongly, opening up opportunities for new players to enter this evolving market. Media clusters can capitalise on this trend by trying to attract some of these new actors. In any case, there is not a lot of insight about location decisions of online video producers as of yet. To identify these factors, all 1,910 professional producers distributing their online video content on YouTube, Facebook, Instagram and Twitch in Germany were identified and surveyed. The data from 101 respondents show significant differences between producers located in and outside media clusters for 23 of 26 items operationalising the importance of exogenous and endogenous agglomeration factors. The survey data were then used to develop a model with five principal components (Network Building, Media Ecosystem, Human Resources, Public Funding/Infrastructure and Personal Lifestyle options) and 13 variables, which may be used to elaborate a broader model.

Platform strategies and user stickiness in the online video industry

In this paper, we explore determinants of user stickiness in the online video industry through platform theory. The online video industry mainly comprises two patterns of business model: the merchant platform and the two-sided platform. We build a theoretical model based on platform and Hotelling theories to explore the essential difference between the two kinds of business model. Then, we successfully verify the predictions of our theory using empirical analysis based on the data of the two most representative examples of the two models: IQiYi (merchant platform) and Bilibili (two-sided platform). We can draw the following conclusions: 1) the network effect is stronger in the two-sided platform than in the merchant platform, and an indirect network makes customers more multi-homing; 2) appropriability resources are essential for user stickiness in both models; and 3) price is not a significant influencing factor in user stickiness.

From divergence to convergence: Institutionalization of copyright and the decline of online video piracy in China

Since its emergence in 2005, China’s online video industry has been embroiled in rampant piracy. Nevertheless, online video piracy has sharply declined in recent years, and copyrights have become a widely accepted and practiced legal norm. With reference to historical institutionalism, this article considers copyrights as an institution and embeds the decline of China’s online video piracy in institutional changes of three copyright-related institutions: legal regimes, administrative regulations, and the online video industry. It argues that even though intervention by legal regimes cannot simply be overlooked, an interest-led institutional change in which the industry first diverges and then converges with administrative regulations is pivotal to the institutionalization of online video copyrights. These findings further our understanding of how China’s online video piracy is sustained or undermined with a holistic, historical, and dialectical outlook.

Copyright regulations as political and economic leverage: the case of the online video industry of China

The recent popularity of video websites has transformed video copyright into one of the most critical issues in regulating the online video industry, especially in countries where video websites have started to thrive because of loose copyright regulations and low public consciousness of copyrights. This study explores copyright regulations in the emerging video website market in China, their objectives and measures, and their effects on the industrial outlook of China. Copyright has been used as political and economic leverage in regulating and shaping the video website market, thereby transforming this industry from an unrestrained Internet medium into a politically obedient and profit-driven business. The consequences of this transformation are analyzed and discussed.

Rethinking the Chinese Internet: Social History, Cultural Forms, and Industrial Formation

Current accounts of the development of the Chinese Internet have provided important analyses of the political economy of telecommunications and the Internet. This study builds on these research to examine how vernacular online practices played a role in enabling political economic dimensions of the Chinese Internet to act as significant shaping forces. With this objective in mind, this article considers vernacular online practices that preceded the rise of commercial online video portals. My specific examples are ‘video spoofing’ and ‘fansubbing’, practices popular in the early to mid-2000s. Led by amateur enthusiasts, these practices were intimately associated with the legacy of cultural piracy in China in the pre-Internet era. My primary concern here is with identifiying and explicating the social energies that encouraged the formation of these online practices, their development trajectory, and finally, how these practices eventually became assimilated within a nascent video industry. In that respect, my argument is that the vernacular cultural forms and practices associated with these phenomena were central, and indeed essential, to the formation of an online video industry in China.

Dynamic Application of Transplanted Legal Rules Concerning the Right of Communication Through Information Network in China - Illustrated With Relevant Judicial Practice Involving Online Video Industry

Online video industry in China has different features from that in the USA, users’ habit of little respect for copyright, lack of diversified business models, restricted market access to cultural industry, strong censorship of contents and fierce competition make the copyright infringement in this industry more complicated. Such complicacy, together with the relevantly less independent judiciary make Chinese judges more pragmatic in applying laws. Painstaking localization of tans-planted legal rules concerning right of communication through information network has been undergoing in Chinese courts to overcome rigidness of technical provisions and structural deficiency caused by introduction of transplanted legal rules. By referring to “other rights”, temporary solution has been found to overcome the gap between broadcasting right and the right of communication through information network; by flexible combination of server test and user’s perception test in determining the direct infringement of right of communication through information network, online video providers have been forced to reform their operations and explore new business models; and based on the experience of many courts’ practice, the Judicial Interpretation (2012) has improved the coherence of the transplanted safe harbor rule and the current joint liability regime. In the long run, such painstaking efforts of localization are valuable.

The Future of Online Video: An Economic and Policy Perspective

We explore the economics of the online video entertainment industry to provide a foundation for understanding its economic future and how regulation may affect it. We first document recent development of online video, including market structure, prevailing programming windows, and content aggregation patterns. In spite of its remarkable efficiencies, we identify four potential obstacles to online video’s future growth: competition from increasingly efficient MVPDs, including advantages they have in large scale aggregation of online content via “TV Everywhere” (TVE) services; limited availability of high quality content, especially windowed programming; limited development of successful online business models, especially advertising; and ISP pricing strategies that may raise effective consumer prices of video consumption. In support of our analysis of TVE, we report original research on the “authentication” (of an MVPD subscription) policies of major cable and broadcast programming networks. In conclusion, we discuss the role that FCC regulation or other government policies can play to ensure future competition and open entry in the online video industry.

Between formal and informal: the shakeout in China’s online video industry

While a rich body of literature in television and film studies and media policy studies has tended to focus on the media activities in the formal sector, we know much less about informal media activities, their influence on state policies, as well as the dynamics between the formal and the informal sectors. This article examines these issues with reference to a particularly revealing period following a large-scale government crackdown on peer-to-peer video-sharing sites in China in 2008. By analysing the aim and consequences of the state action, we point to the counter-productive effects in terms of cultural loss and the resurgence of offline piracy; we show the positive impact on forcing the informal into the formal sector, and pressuring the latter to innovate. Meanwhile, increasing rapprochement between professional and user-created content is leading to a new relationship between formal and informal sectors. This case demonstrates the importance of considering the dynamic relationship between the two sectors. It also offers compelling evidence of the role of the informal sector in engendering state action, which in turn impacts on the co-evolution of formal and informal sectors.

Primary product network size on complementary product sales

PurposeThe purpose of this paper is to examine the relationship between primary product network size and the sales of complementary products, and to suggest customer characteristics moderating this relationship.Design/methodology/approachA panel dataset in the online video game industry was used to verify the proposed theoretical framework. Two‐level hierarchical linear modeling is used to test several hypotheses.FindingsThe authors' analysis results suggest there is a positive relationship between the primary product network size and the sales of complementary products. Also, two customer characteristics (previous transaction value and customer purchase frequency) were found to positively influence the complementary product sales. The primary product's network size has a stronger impact on complementary product sales for light buyers compared to heavy buyers.Research limitations/implicationsThis study only focused on online video industry, and the price differentiation of the products might not be adequately significant. Other relevant factors (such as word‐of‐mouth (WOM)) or other customer characteristics could also be relevant to complementary product sales. Therefore, future research could use data triangulation to collect data in different contexts, through a longer period of time, to test and verify the proposed relationships.Practical implicationsProduct managers need to better understand the relationship between the primary product network size and the complementary product sales. They should adjust the marketing strategies toward different customer purchase frequency segments correspondingly. For example, to benefit further from the primary product network size, complementary product retailers can create online forums for all primary product users to influence light complementary product buyers.Originality/valueThis research is one of the first empirical investigations of establishing the relationship between primary product network size and complementary product sales, with customer characteristics as moderators.