Chinese Video Sharing Site Profitability Analysis

Since the emergence of video sharing websites, the profitability of the video websites has been subject to widespread concern. Especially in recent years, more and more video sharing websites have been listed; people discussed more and more on the profitability of the video websites. But video sharing websites have always been at a loss. Even the leading companies of this industry have been in the embarrassing position that the investment increases year after year, but the companies still keep mid-loss.Due to the loss of the entire industry, the profit model of the domestic video sharing sites has also been criticized, and there is no consensus on the various views of the profit model. The existing profit models are really good for nothing and should be totally negated; or they have certain desirability, and only need some improvement? It is a subject worthy of study how to establish the profit models of the video sharing websites, especially in the background that the online video flourishes, are full of each corner in our life, and will replace the traditional news media in future.This article is divided into four parts, the first part is the introduction, which is mainly elaborated on the paper that is focused on the background, purpose and meaning, then introduced the idea and method, and finally showed the innovation and shortcomings..The second part is the review of the video sites in China, which is mainly introduced the main pattern of domestic video site, and then analyzed the opportunities and challenges by SWOT method. The third part is the profit models of the Chinese video sharing sites, which is mainly introduced the defects and development on the profit models. The fourth part is the recommendations on the profit models of the domestic video sharing websites, which proposes the establishment of the video sharing site to take the strategy of vertical integration and then explores the feasibility of the smile curve effect, the final recommendations on the video sharing sites to take the value chain analysis to ensure the smooth implementation of the strategy of vertical integration and the smile curve effect. The fifth part is the conclusion, which concludes the whole paper and emphases the need of analysis again. Then, we could better grasp the profitable income form video sharing websites through the analysis above.