Sohu will focus on betting on the production of self-made dramas in the future through the charging model and game search support
"Dancing pavilion, the wind is always blown away by the rain and wind." When Zhang Chaoyang appeared in the small tea house in Wuzhen last week and talked to the media, I wonder if he thought of this sentence. Sohu is currently in anxiety about performance. On October 24, Sohu released its unaudited financial report for the third quarter ended September 30, 2016. The financial report shows that Sohu's third-quarter revenue was 411 million US dollars, down 21% year-on-year; based on non-US GAAP, the net loss attributed to Sohu was 65 million US dollars, compared with a net profit of 49 million US dollars in the same period last year, a year-on-year loss. From the glory of the past to the trough, Zhang Chaoyang was not so calm. In an interview with a 21st Century Business Herald reporter, he described the "American listing" as a sorrow. "Our business is relatively broad, and we need to burn money to develop video, and the profit will be affected as soon as we burn money. Our revenue scale has not risen so fast, but we have to spend money, not spend money, market share, investors only recognize profit. , This is the sadness of going public in the US. " However, Zhang Chaoyang still found four profitable points for Sohu, namely Sohu News, Sohu Video, Sogou and Games. In the field of video, he changed his attitude of buying copyright at a high price in the past, but tried to make the video on the platform toward self-control and charging. "In terms of user size and business rankings, Sohu is seriously underestimated. We have more battlefields. I have to spend money. What if I do n’t spend money? Spending money is definitely a low stock price, but spending money can give us explosive opportunities. Revenue rises quickly and becomes profitable. We will reduce that kind of extraordinarily expensive online dramas, and promote self-made dramas. Another is the innovation in the field of video, such as Sohu video self-media, and live broadcast business. " Zhang Chaoyang regards the video as a tough battle. Just last month, Sohu borrowed 1 billion yuan from Changyou. Perhaps, Zhang Chaoyang regretted that he would send Changyou to the market, otherwise, the misappropriation of funds between departments would be much simpler. Currently, Changyou is still profitable, with Sohu's equity accounting for 70%. It is foreseeable that this business will become the cash cow of Sohu Group for a long time in the future. How long does this embarrassing period last? Zhang Chaoyang himself did not know the answer. But he found two ways, One is the road to capital. Perhaps Sohu will split some assets and go back to the country for listing in the future. The other is to use the profits of games and search to support the development of video, try to make the bottomless hole of video become bottomed, and move towards home-made charging and Netflix mode. In fact, except for giants such as Alibaba and Baidu who are favored on Wall Street, other Chinese Internet companies think their value is underestimated. Far away are Focus Media, Shanda Games, Giant Network, and near-by companies such as 360, Century Jiayuan, and Qunar. However, the return of these companies is not smooth. "The current video is a bottomless hole. It is crazy to invest hundreds of millions of yuan in a drama. It can only be played by companies that have produced huge success on social networks and e-commerce, such as Tencent and Alibaba. Or on the stock market. Only companies with a lot of money can afford it. We ca n’t afford to make money by ourselves. â€Zhang Chaoyang is very conscious of his weakness. He has always been unruly, such reflections are rare. In this context, Sohu has begun to try to make dramas, including "The Year in a Hurry" to "Unintentional Master", "Forensic Qin Ming" and so on. By betting on making self-made online dramas, Sohu hopes to strengthen its influence on the "net-born" young people, and the content that young people like to watch is still bet on users. "The success of" Pancake Man "is only a temporary fame. That (film) is not our core business. We are still an Internet company. There are still a few people watching movies. Most of them still have to stay at home to watch dramas." "Pancake" has a box office of more than 1.1 billion, which has contributed considerable revenue to the producer Sohu, but Zhang Chaoyang does not intend to take the film path. As a leader in Internet entrepreneurship, Zhang Chaoyang still has something to do with something, insisting on his own choice. When everyone talked about artificial intelligence at the World Internet Conference in Wuzhen. He told reporters that his hot spots are not the same as those in the industry. "When O2O, Internet finance, and live streaming, I disagree. I still like two directions, one is the performance of social networks and video in social networks, and the direction of combining video and VR. In addition, I am optimistic about artificial intelligence. For effective search and information collation, it must make humans smarter. " This time, whether he can step on the right point is still unknown. "After so many years of summing up, my lesson is that fame is too early, people are a little flirtatious, and they have not concentrated on making products. This is a mistake." He summarized the 21-year history of struggle for reporters. He, the same age as Ma Yun (Weibo), will still be introspective to this day. Due to his negligence or lack of diligence, he has lost the opportunity of search engines and social networks, allowing Weibo and WeChat to rise later. However, now he is ready to start again, hoping to return Sohu to the Internet Center within three years. At the end of the interview, some media walked over to ask for WeChat Zhang Zhaoyang. He said frankly: "I'll tell you your mobile phone number, be direct." This is a move that hasn't happened in years. Perhaps Sohu ’s request for change must start from himself.
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