video sharing sites are time to think about what is really effective business model – cash flow is always the hardest truth, and not just focus on popularity and traffic.

three years ago, when Google bought Youtube for $1 billion 650 million, domestic video sharing sites cheered. However, the following days were not perfect, although Google conducted a series of "YouTube" transformation, but the sharing model has always been difficult to find commercial expectations. Recently, the U.S. "business week" and pointed out that the Google should change the video site into a video search engine, not only can search their own video site, also should be able to search for external video.

The year of

, the myth of Youtube had Chinese video sharing sites such as bamboo shoots after a spring rain like growth, but one billion dollars in venture capital, did not make a profitable business: these sites is still in the burn period. Youtube’s aura is fading, and its charm is beginning to be replaced by Hulu.com, an Internet site for free viewing of licensed video programs, providing video resources to users via authorized on-demand modes.

in the world’s largest video on demand platform of popular network CEO Luo Jiangchun, a global network of video sites including Youtube, have realized by UGC (video sharing), it is difficult to support a video site in the future, the transition to the video on demand is an inevitable trend. Because video sharing user stickiness is very low, its user transfer costs are generally low. Video on demand has become the mainstream video, how to play its mainstream value is the next industry to do.

domestic video sites have also been aware of the crisis, Tudou CEO Wang Wei even throw video sharing traffic is’ industrial waste ‘self mockery, and began to try self revolutionary transformation. Quietly, video sharing sites that used to assemble traffic in a shared mode began to turn around. Youku said it will focus on television, collaboration and marketing as part of its future focus, with television, film and television production agencies and other content providers.

even the thunder has also joined the camp of video on demand. Two months ago, to download software to the main business of the company said the thunder is trying to transition to the online video portal, thunder CEO Zou Shenglong said, "the thunder’s idea is that television content providers will be the product placement to thunder channels to sell, as the channel platform thunder is collected from the advertising into."

effective business model

everyone knows that the video site is "burn money" industry, Tencent Inc CEO Ma Huateng once said, the network video for very high bandwidth, server, content resources, enormous investment, to burn $2 million a month, so the Tencent will not rush to large-scale investment in this area.

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