Hardship And Breakout Of Video-sharing Websites

Video-sharing website is the online video site which allows people to post videos for others to watch. At the end of 2008, video-sharing website suffered the cold. The global financial crisis influenced investors to remove their money from risky mortgage investments- Online Video Industry. In the past three years, the risk investors made huge investment in video-sharing website, but from the second half of 2008 to now, the investment in video-sharing website became rare. Meanwhile, high costs and low revenue caused many video-sharing websites on pins and needles. In China, a video-sharing website has to spend 20 million Yuan per month on the bandwidth; however, China's whole video-sharing websites' annual incomes just came to 192 million Yuan in 2008.I Research analysis report pointed out: at present, only 1% of China's video-sharing websites keep the profit and loss balance, and the remaining 99% video-sharing websites are losing money.Video-sharing website not only has difficult in making profit, but also faces the following four risks: firstly, policy risk- China's video-sharing website is strictly supervised by government ,especially content review ; then, copyright risk-the video-sharing website is often involved in legal wrangle because of copyright infringement; besides, competitive risk-a video sharing website not only has to face the fierce competition from other video sharing websites, but also from Portal Websites and live P2P TV; finally, content risk- the video-sharing website's weary repetition of each other's video is holding back its development.The video- sharing website must figure out how to reduce the mentioned four risks. In order to take the lead in grasping the growth opportunities, the video- sharing website must pursue the extraordinary path of development, which demands increasing creative works, reaching copyright agreement, and trying diversified business models.