| About five or six years ago, network video was a media that didn’t attract internet users’ attention. Although it is built on the Internet platform, network video is new in the Internet world. Nowadays, network video has become a popular media after its five or six year’s development. Owing to their spirit of exploration and insistence, Private entrepreneurs gradually discover how to take advantage of the network video and make money from it. The development of China video websites returns to be normal step by step after they experienced big rise and fall. According to Chinese Internet users’network video application report in2010which is issued by CNNIC (China Internet Network Information Center), the number of Chinese Network video user has reached284million, which accounts for62.1percent of total internet users. What’s more, this number is still growing rapidly. Video websites have attracted hundreds of millions of internet users, besides, their revenue model and operation mode are becoming clear, and these factors make them have huge commercial value. Meanwhile, these factors also make state-owned broadcast groups and internet companies with huge sum of money to join in network video industry. Though numbers of small video websites go out of business, some competitive companies go into this industry. Accordingly, the competition among video websites has not eased but intensified. Network video industry is a capital intensive industry and state-owned broadcast groups and Internet companies have large sum of money. So they are all able to spend huge sum of money to buy sorts of video resources so that they can attract more advertisement clients. The action of state-owned broadcast groups and Internet companies results in the rising price of video resource and homogeneity competition. Advertisement clients have more initiative rights and hereby bring down the advertisement price of video websites. That’s not good news to video websites. As a matter of fact, video resource is so huge and diversified that one video website cannot hold all. Therefore, not only can video websites make a differentiation strategy but they are also able to carry out the differentiation strategy. Each Video website is able to select different video resource and attract part of Internet users and advertisement clients. At last, there is a differentiation competition situation in network video industry.First, Paper will briefly introduce the developing progress of China Video Websites and their current situation. Then, from the prospective of industry, paper will use the knowledge of network economy to analyze the characteristic of video websites. After that, paper will use the differentiation strategy theory to demonstrate the necessity and feasibility that video websites make and perform differentiation strategy. Again, paper will display some collected data to analyze the situation of differentiation between Youku, Tudou and Ku6. Finally, paper will make a summarized comment according to data analysis.Paper deems it that network video has grown up into a huge industry after five or six year’s development. If we compare an industry to a cake, network video is a super big cake, and then it is impossible for one video website to own this cake exclusively. The reason is various. When the video websites do not explore the Internet users’cultural consumption completely, their market positioning is unclear and they satisfy the Internet users’need in a very small extend. Because the potential cultural consumption need of Internet users is not explored, all video websites compete with each other about meeting limited Internet users’need and the homogenization competition is inevitable. However, each video website can totally take up part of the market on the basis of its own strengths. And they have ability of avoiding homogenization competition. Anyway, what we predict is that once differentiation competition has been formed, each video website could have adopted its good points and avoided its shortcomings. Differentiation competition is both good to video websites and good to Network video industry. Competition in Network video industry is healthy, which boosts the culture industry.What paper stresses on is as follows. First, my paper will refer to the general character of network video which hides from it and its specialties. Second, video website is run as an enterprise and some video websites has grown into world-famous company. Network video industry has many profit spots. No one can hold all profit spots. So it is extremely important that video website positions the market strategically. Paper will analyze it with differentiation theory. Third, paper will analyze the gathered data about Youku, Tudou and Ku6and come to a quantitative conclusion. At last, paper will have a summary that matches with the quantitative conclusion. |
PDF Full Text Request