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55 Toutiao's Development Blueprint

As long as the country interferes in the music industry for 14 years, the music industry can quickly cash out, provided that you have traffic and can even affect the entire entertainment industry, because the entertainment industry is actually a kind of traffic.

It is very ironic that in the original history, Teng Xun, who had been desperately imitating 11 years ago, changed his business style and began to carry out investment support plans due to the 3Q war. After the music copyright law was introduced, he quickly purchased copyrights from all parties, monopolized 80% of the music, and became the biggest beneficiary.

Alibaba, which is accustomed to piracy, is one step late, and its style is an outsider and an expert in management. Xiami Music, one of the three giants, was killed by death.

As for Baidu, he fell behind early in 2014, and it is not worth mentioning.

"If the law regulates, there is indeed a profit margin in the music sector, but the growth potential in this sector is actually not great. Why do we have to make music?" Lin Youde asked in question.

The essence of music is to give people to listen to, and advertising is more often to show. Internet giants have also strictly restricted advertising under competition. Nowadays, if the music software is halfway through advertising, it will be scolded by users. Even if it provides free music, users will not be able to endure it. The greatest tolerance for music software is that it is estimated that there will be a few seconds of advertisements when opening the software.

Even if you can implement genuine fees in the future, it is not difficult to make money, but if you really want to make it bigger, there are still many difficulties. Domestic netizens are very persistent in free.

"Making music is not just for future charges. There is really not much space in this area. I am for two other purposes." Zhou Yujie said: "First, it is user time. You also know that the current Internet market has broken the head for traffic, and the essence of traffic is actually the time of users. The number of netizens across the country may not be fully saturated, but the growth rate is not large. How to obtain more time for each user is the issue we need to consider.

The essence of traffic monetization is actually advertising. Advertising is the products or services we recommend when users use our products.

Traffic is also divided into levels. Some are easy to monetize, just like the traffic on a news page, which can directly post advertisements and attract traffic to shopping or games, while some are not good, just like music.

However, we cannot do it just because the music traffic is not easy to monetize. Regardless of whether the traffic is good or not, we need the user's time. Even if it cannot be monetized, it is better than the user's time in the hands of competitors. Moreover, if it cannot be monetized now, it does not mean that it cannot be monetized in the future.

The second is that our big data recommendation requires analysis of every user, and the music itself can filter out a person's personality. Although it cannot be 100% certain, at least there is a reference, which will be of great help to our future news recommendations.

Of course, there is another important point, that is, the cost of music software itself is not high, and you know this, so I won’t say much.”

Do Chinese people have no copyright intention? Do Chinese people don’t like to support genuine versions?

Actually, it’s just bullshit. Everyone likes free music. Westerners don’t like free music? Don’t like free videos?

When the US Internet broke out, the law was also incomplete in this regard. Napster is the US pirated music base, which almost drove the five major music giants crazy. Tens of millions of Americans downloaded free music on Napster. Until the law was improved, the download of pirated music was directly fined thousands of dollars, affecting credit, which stopped the trend of pirated music.

Therefore, if you develop music software in a country with perfect legal provisions, the biggest cost is to purchase content copyright. However, in China, the cost of music software itself is just some servers and manual operations. Xiami Music, one of the music giants, raised 500,000 yuan a few years ago when it started its business, and it lasted for a year alone.

However, the cost outside of the software itself is the promotion and operation cost. This is a nightmare for countless software. It costs too quickly to promote it, especially in the era of mobile Internet, you have to give users money to allow them to use your free products.

However, it is still in the early stages. If the app treasure mastered by Toutiao can occupy the market, then this is an APP promotion engine. Therefore, the core element of the promotion of music software is the same as news software.

"Music software is nothing. Just give me a few people and you can do it in half a month. Without considering promotion, the cost is indeed very low." Lin Youde said.

Zhou Yujie nodded and said, "News and music do not consume a lot of money, but future promotion will definitely be. But for the sake of the market, I don't want to open advertising in the short term, so we also need a channel that can make quick profits as the source of funds for the company's operations."

"What channel?" Lin Youde asked. The company's account is indeed rich, but if you want to develop in the long run, you must have a profitable method. Music is not suitable for advertising. Today's news apps such as Toutiao cannot advertise in large quantities because their mobile phone interface is small.

Zhou Yujie asked back: "What is Teng Xun's biggest source of profit?"

"Game?" Lin Youde was stunned for a moment and replied. He understood what Zhou Yujie meant and said, "Mr. Zhou, I was in charge of the game business in Tengxun before. With the current situation of our company, it is really difficult to make a game."

"Don't think so much, it's not an online game." Zhou Yujie shook his head and said, "It's too much to do online games. I don't have enough money now. What I want to do is stand-alone games like 2048. The main markets are foreign Apple APPs and Google Malls. I have creative ideas here and don't need many people."

"Single-player games, this is OK." Lin Youde nodded. The profits of stand-alone games are definitely not as good as online games, but the benefits are low costs, low maintenance, and low risks. Online games require a team with sufficient experience. From design to final release, the price paid is very high, and it is very likely to fail to the end, and a few years will be wasted.

Therefore, even large companies like Tengxun are seeking agents or direct imitations of foreign games.

Zhou Yujie continued: "Now that our account is rich, Teng Xun Baidu will soon release news that he has invested in our company. Anyway, our company is small, so it is normal for giants like them to not officially announce it. With fame and money, it should not be difficult to recruit. First, build the framework and how many people you recruit, you can do it first.

At present, our company has only these four businesses, and its core is AppTrea, which is an important channel for our company to divert its APP in the future. Other news, music and games are also products to be developed. When these products are successfully operated, we will consider the next step."

Lin Youde asked: "I won't talk about the game for now, then what's the name of our music?"

"Just call it Toutiao music, don't think of other names." Zhou Yujie said that using the same name for multiple products is also a means of publicity. If Toutiao becomes bigger one day, then promoting other products, such as Toutiao map, will also give news users a sense of trust.

AppTrea is a traffic engine, Toutiao is a monetization channel + traffic engine, Toutiao music is one of the data analysis databases, games are monetization channels, and Quxin is a gambling product. It makes a lot of profits if it succeeds, and it doesn’t matter if it fails. Anyway, if it can develop the first step, it will use the money from venture capital in the future... Lin Youde carefully thought about these 4 softwares. This is the development blueprint for Toutiao company's development direction. Today, he, the top manager, finally understands the boss's development direction.
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