LeTV's Profit Model Analysis

In the past twenty years,China Internet is development quickly,strength to a wide range of information,provide convenience to people's lives,that play an important role in promoting the communication between people.Taobao makes people do not need to go out shopping,Weixin changes ideas between people,the website start to enrich people's entertainment life.the company established are like bamboo shoots after a spring rain,in 2010 years,there are video website about aiqiyi,Tencent and letv,but many company are in losses state,Enterprise want to earn more profitable,so enterprise pay more attention on profit model,they seemed to the suitable profit model is the key of enterprise sustainable.Copy foreign model is doesn't work out,so more and more scholars start to research profit model.This paper selected the letv for example,because the company is the first profitable in many loss-making video website,depending on the profit model of research,and what is the revenue model,each link in the value chain,how innovative business activities to achieve profits.Based on the analysis,then introduce elements of the letv profit model.The first party introduce development status of video website and the letv status of profit model,the second party analysis the company profit model is value chain,constitute elements,and enterprise financial status,and compared for profit model about youkutudou,the lastly party found the company advantages about products market share growth quickly,income structure more reasonable,and user viscous increased.However,there are risks in company about cash shortage,expand the industrial chain leads technical pressure and so on.Above all the letv analyses,put forward some suggests.