Research Of LeTV’s Overall Industry Chain Model

Nowadays, the competition in internet video industry is very fierce. Facing a series of problems such as the similarity of content, the absence of high quality resource, and the high cost of copyright, network video corporations set out to develop the content as their key work. Meanwile, they work at building the platform and operating the whole platform, improving the utilization of resource, and focusing on customer experience around their key work. The aim is to get an integrated development and the priority in the competition. At present, most of Chinese network video corporations are running at a loss. However, LeTV is the first network video company reporting a profit and the first domestic listed company issuing RMB common stocks in internet video industry at the present stage. LeTV initiates a quaternity industry chain model with " platform+content+terminal+application". They launch their own WebTV and STB to gain market share, and adopt content strategy such as high quality video resource, original works, diversified programs, and interactive platforms. LeTV also constructs open cloud-based video platform, and make an effort to improve customer experience. All the measures promote the develpoment of user scale and the improvement of advertising revenue. There is no doubt that the business model of LeTV is a feasible and powerful model, which may become the business model of network video industry. Therefore, it is very important to research the overall industry chain model of LeTV. This dissetation take LeTV as the research object. The PEST analytic method is firstly used to analyse LeTV’s industry environment and its own development status. Secondly, it analyses the formulation and implement of the overall industry chain model strategy of LeTV. The advantages and disadvantages, opportunities and challenges are discussed from the four aspects of platform, content, terminal, and application. Finally, this dissertation concludes the effects of LeTV’s overall industry chain model and gives the recommendation for the future development of internet video industry.