Video site the end of the burn era

in the financial crisis, both the enterprise and the individual will feel a sense of loneliness, no one can help you, except yourself.

China has been affected by the shock of the western financial crisis and may have just begun.

since last year, the deteriorating international economic environment in the short term can not be improved, resulting in exports, investment, consumption and other 3 kinds of armed forces to promote national economic growth, are one by one "virus" attack.

ensures cash flow is top priority and cutting operating costs has become an important means of implementation. After more financing, SMEs who have expanded to recruit and relocate to the new office begin to plan to move their offices to the ground and reduce operating costs in the most direct and rapid way. For example, TCL computers, layoffs, but also the national headquarters moved from Shenzhen to TCL group headquarters in Huizhou, in order to save operating costs.

a letter circulated on the Internet to CEO Sequoia Capital letter, wrote: "we like Sequoia did not completely to YouTube such a profitable company with more than $1 billion 600 million sold to Google has been completely impossible, this era has ended……"

was once capital sought after video sites, burn money and lack of profit model, became the first wave of affected Internet Co. Such as Yue net, PPLive, six rooms have announced the decision to layoffs.

expands in contraction

video site, six rooms, decided to cut 2/3 of employees to cut costs. Six rooms in the heyday of the 120 team size, may be reduced to 10 people. It is understood that at present, six rooms were cut out of staff throughout the R & D, marketing, sales and many other departments, new businesses have been canceled, the remaining staff of the next goal is to maintain the main station.

six rooms had tried all sorts of expenditure, such as the wedding video for users to get cash, now has entered a stage stage.

, who had previously expected too much of this industry, now wants to lower its expectations." Liu Yan, President of the six rooms, believes that through layoffs and adjustments, from June next year, six rooms can receive a steady positive cash flow.

in fact, the situation may not be optimistic. As the video site access threshold is not high, in the past year, there have been more than 300 video sites influx. Insiders said: "the industry competition is on the one hand, the portal from the start of the Olympic Games will expand the field of video input, and get a good flow performance, this is another aspect of the video industry affected by the impact of large." At the same time, the entry of major portals also exacerbated the competition in the video field.

has just financing the company, perhaps more fortunate that they have the "expansion in the contraction" opportunities. Such as Youku, cool 6, or tudou.


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