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The loss of long video is well known to all, but with the fire of “sister riding the wind and waves”, the market value of mango super media, its producer and broadcasting channel, has been raised to 100 billion yuan.
Why is mango, whose revenue is only half of iqiyi’s revenue, profitable when iqiyi, Tencent video and Youku are still in big losses?
“Mango hypermedia is the most unique existence in the industry, and its essence is the whole package listing of Hunan Radio and TV station’s operational capital.” Bao ran, Secretary General of Beijing network audio-visual program service association, made such a penetrating comment on “financial report watching company”. The experience and lessons of mango hypermedia are basically of no reference significance to other long-term video platforms. It has stepped on the pit, you aiteng may not encounter, and promote its successful experience, aiyouteng also can not imitate.
IPTV (interactive network television) and Ott (Internet television) two licenses, nearly 30 years of television content production capacity – the combination of state-owned capital and commercial operation, doomed to “ride the wind and waves” of mango hypermedia, which is different from aiyouteng.
Don’t look at the numbers, look at the license plate
What makes mango super media really “ride the wind and waves” is not the variety show “sister riding the wind and waves”, but the mango media and the TV station behind it.
Photo source: Mango super media annual report in 2019
If we look at the overall revenue figures, mango hypermedia has nearly half of iqiyi’s, and has been promoted from the second echelon of long video to quasi first tier.
The year of 2019 is the first complete accounting year after the major asset restructuring of mango super media. In 2019, mango super media achieved a revenue of 12.5 billion yuan, a year-on-year increase of 29.40%, and a net profit of 1.16 billion yuan attributable to shareholders of listed companies, with a year-on-year increase of 33.59%.
Mango super media business sector, mapping: financial report to see the company
However, in the business sector of mango hypermedia, only the Internet video business is similar to that of youaiteng. In 2019, the operating revenue of Internet video business in the operation of new media platform will reach 5.044 billion yuan, with a year-on-year growth of 56.46%; among them, the advertising revenue is 3.35 billion yuan, with a year-on-year increase of 39%; and the member income is 1.69 billion yuan, with a year-on-year growth of 102%.
Compared with iqiyi, the total revenue of iqiyi is 29 billion yuan (about US $4.2 billion), which is about 5.7 times of mango’s hypermedia Internet video business.
The number of paid members of mango TV has reached 18.37 million, which is only one tenth of that of iqiyi. By the end of 2019, iqiyi’s subscription membership has reached 107 million, with a year-on-year increase of 22%.
But under the halo of IPTV and Ott, the difference between them is no longer the simple PK of these numbers.
The first income difference between mango and aiyouteng is the channel fee for license cooperation.
Mango TV is the actual operator of IPTV and Ott licenses of Hunan Radio and television station, and the only market competitor with two operator business licenses in the Internet video industry.
According to dvbcn in 2017, SARFT issued 12 IPTV licenses, while only 7 Ott licenses were issued in China. Many hardware manufacturers without license plates (such as Internet TV: Xiaomi, Konka, Samsung, etc.; intelligent hardware manufacturers with screen) must cooperate with licensed platforms if they want to get involved in video playback with screens.
Relying on the Internet TV license, mango TV cooperates with TV manufacturers and intelligent hardware manufacturers to participate in the innovation, R & D, design and production of Ott and other intelligent hardware. To put it bluntly, mango TV doesn’t need to make its own hardware, so it can preload app and content. It may be exclusive and can’t be unloaded.
The second difference between mango and aiyouteng is the source of users.
Unlike ayuton, which attracts users through content, a large part of mango TV’s installation comes from the pre installed channel. In addition to the above intelligent hardware shipment volume, the pre installed channel also has the binding expansion of IPTV business operators.
The third difference between mango and aiyouteng is the integrated services of operators related to IPTV.
In 2019, the business revenue of mango hypermedia operators reached 1.275 billion yuan, with a year-on-year growth of 33.31%. Mango hypermedia has integrated the network center and intelligent hardware center of happy sunshine and set up a new smart screen center.
In order to strengthen the market development, mango hypermedia has extended the experience accumulated by Hunan IPTV mobile, telecom and Unicom platforms in experience, content and technology to the national market. By the end of 2019, its IPTV business covers 31 provincial administrative regions, including Guangdong, Fujian and Zhejiang, covering 148 million users.
The growth of operators’ business is the key layout for mango hypermedia to start smart screen.
Because of this, mango TV can achieve full coverage in mobile phone and large screen, and the advantages of large screen are greater.
However, the layout of mango TV in the mobile terminal is relatively weak. The following is the comparison of download volume between mango TV and youaiteng in Apple App store. There is still an order of magnitude gap between 600000 and 1600000.
Source: Apple App Store
In addition, mango super media’s top three customers are its related parties.
The first one is the total transaction volume with the actual controller Hunan Radio and television station and its subsidiaries, accounting for about 18.48% of the annual sales amount, and the second Yunhong communication technology (Guangzhou) Co., Ltd. is the same affiliated unit with significant influence, accounting for about 5.93% of the annual sales amount The third one is the total transaction volume with the related party Migu Culture Technology Co., Ltd. and its controlled subsidiaries, accounting for about 4.09% of the annual sales amount.
The neutrality of content production
Ma Dong, the founder of MI Wei media and the creator of wonderful flowers, once said that content is the way to open the world. Both the Internet and the Internet are not the best.
If there are only license plates but no content capacity to cooperate, it is impossible to maximize the commercial value.
Mango hypermedia’s new media interactive entertainment content production includes content production and operation, artist brokerage, music copyright, game and IP content interactive marketing. The revenue of the whole sector accounts for 31% of the total revenue in 2019, second only to Internet video business.
In terms of content production, mango media’s variety show and film and television production team is even larger, with more than 1500 content producers.
Aiyouteng is better at cooperating with external production companies through capital and cooperation. Since this year, it has invested a lot of film and TV drama production companies for the growth of watermelon video. The rapid cooperation with happy media at the beginning of the year can be regarded as a business benchmark case.
Among them, mango TV has 16 self-made variety show teams, happy sunshine, mango film and TV and mango entertainment all hold TV series production license (type A), which is the top producer of TV series in the market.
In 2019, 33 online variety shows were self-made, forming “Pro variety”: slow variety show “wife’s romantic travel”, “daughters’ love”, live decryption experience show “escape from the secret room”, weight loss life observation reality show “Oh! Good figure” and new outdoor travel variety show “my favorite women”, etc. At the same time, around the core IP “star detective”, the derivative interactive micro drama “No.1 suspect” was launched to do long and short video fusion nesting.
In terms of TV drama production and investment, happy sunshine vigorously promotes external strategic cooperation strategy on the basis of self built studio to upgrade the whole IP industry chain from copyright procurement.
In 2019, it will have 15 self owned and external film and television studios, and more than 30 self-made dramas will be launched, including “Hello, the other side debate friends”, “accompany you to the top of the world”, “struggle, youth!” and other dramas.
However, Bao ran told the financial report review company that success is self-made and failure is also self-made. This mode of mango is bound to be limited in scale, and it is difficult to achieve a greater growth, such as tripling.
“In addition, the ability of content production is becoming more and more neutral, and it is not only attached to a certain platform. Before that, Hunan Satellite TV has many excellent production teams to set up a production company alone.” Bao ran said.
This may make the production ability of mango metamedia less prominent. As a matter of fact, the competition between variety shows and film and TV series is much more fierce than it was more than a decade ago. It is also after the topic level of “sister riding the wind and the waves” continues to rise, mango hypermedia returns to the center of the topic list again.
Low content cost is the key to profitability
Ten years ago, the industry believed that when users reached a certain scale, the long video platform could share the content cost to a low enough level, and with the payment of members, it would turn a loss into a profit.
Drawing: financial report and company
But the reality is that, in 2020, the operating cost based on content cost is still higher than the total revenue – that is, if it costs 10 yuan to buy (build) a play, it can only sell for 8 yuan. This means that the business model can not be established, and it is also the fundamental reason why the industry has been watching the declining video.
Mango super media operating costs and gross profit margin, mapping: financial report to see the company
The gross profit margin of each business segment of mango hypermedia is positive, with the gross profit rate of Internet video 32.6% and content production 26.8%. ——This is also the key to the profitability of mango hypermedia.
“Mango hypermedia and other Hunan Radio and television companies must be brothers in law, such as content authorization, cost sharing, etc. However, compared with aiyouteng’s high price outsourcing content, the cost of obtaining mango hypermedia content will be relatively low. ” Bao ran said.
In addition, the gross profit margin of the operator business is as high as 67.1%, which is far higher than that of other sectors, which also contributes a good profit to the overall profit of mango hypermedia.
In terms of expenses, the most important cost of mango hypermedia is sales expenses. In 2019, the number is 2.14 billion, with a year-on-year increase of 18.83%, and the sales expense rate is 17.1%. The main reason is that with the increase of program delivery and advertising revenue, the promotion and advertising agency fees will increase correspondingly, and the marketing promotion and marketing team incentives will be strengthened.
Due to the low content cost and expense, mango hypermedia has a better net profit than iqiyi and Tencent video.
In 2019, mango super media realized a net profit of 1.16 billion yuan attributable to shareholders of listed companies, with a year-on-year increase of 33.59%.
Mango super media road, aiyouteng can not walk, and vice versa.
(statement: This article only represents the author’s point of view, not Sina’s position.)