Welcome to the wechat subscription number of chuangshiji
By Jin Xi
Source: Entertainment Capital (ID: yulizibenlun)
During this period of time, the parents of the listed companies of radio and Television Department may be sitting around in a room, sighing with their Q3 performance report cards. However, when people are in the same predicament, their situation may not seem so embarrassing. In the near future, the company’s net profit has declined from January to September, and it is difficult to disclose the company’s net profit.
In the same period, 11 companies announced that under the leadership of China Radio and television, they would participate in the establishment of “national one network” joint stock company, with a layout of 5g.
Some people say that this is a good opportunity for transformation, while others say that it is a forced “continuation of life” and that it is a sacrifice of the essence for the end. But it must be admitted that the listed companies of radio and television series have met the development bottleneck, and 5g layout is just in time.
Why is it a good opportunity for transformation?
Because China’s Radio and television has won 700m spectrum, which is just the widest coverage and the strongest penetration capacity. In addition, the cable radio and television network has always had advantages in the vast rural areas, is it possible for China’s Radio and television to overtake other competitive products in the fourth and fifth tier cities?
At least they have this confidence. As described in the 5g plan of China Radio and television, its goal is to reach 95% of the total number of users by the end of 2021.
Why do you say it’s “strengthening your heart to continue your life”?
Take a closer look at the detailed disclosure of Jiangsu cable, Guiguang network (Guizhou), jitv media (Jilin), Gehua cable (Beijing) and other places, their broadband users only account for 15-40% of the user proportion, and the vast majority of users pay between 15-30 yuan per month, which fully proves that most of their broadband users are low-cost users who “do cable to send broadband”, and they can really afford to start Hundreds of 5g rates?
What’s more, China’s 5g, which has been open for more than a year, is still stuck in the situation of “high charges, instability and few base stations”. Lou Jiwei, chairman of the National Social Security Fund Council, even criticized it as “some aspects are too ahead of schedule, raising user costs or unsustainable public sector debt”.
In South Korea, which has also been operating for nearly a year, it has recently been revealed that more than 560000 5g users have returned to 4G networks,
China Radio and television, 5g life, where is the way?
spent force? The net profit of 11 companies declined and 3 companies turned to loss
Let’s take a look at the breathtaking report card first.
In terms of subject. Among them, the revenue of the media and television companies decreased by more than 1.57 billion in the first quarter of 2020, with a total revenue of 1.57 billion yuan in the first quarter of the year, and the revenue of Guangdong television was reduced by 1.17 billion yuan.
Jiangsu cable, which ranks first in the list of broadcasting and television companies, had a revenue of 5.335 billion yuan in the first three quarters, a decrease of 3% compared with the same period of last year. At the same time, the half year revenue of Gehua cable, jitv media and radio and television network also declined by about 5%.
On the contrary, Print-Rite video, GUI Guang network, China Digital Media and Oriental Pearl have different levels of revenue upgoing performance. Among them, Tianwei video’s revenue increased by 15.29% year-on-year to reach 886 million yuan, and the main reason for the rising revenue is the increase in the income of “three line and underground” projects.
In the first three quarters of 2020, the revenue of Guiguang network and Huashu media were 2.435 billion yuan and 2.801 billion yuan respectively, with a year-on-year increase. One of the main reasons for the rise of Guizhou Guangzhou network revenue is the promotion of poverty alleviation and livelihood projects, such as the launch of “sunshine campus” during the epidemic period The “air Guizhou class” online education platform for primary and secondary school students in the whole province has set up 14 live channels and interactive on-demand zones at the TV terminals, donating TV sets to poor students’ families; it has overfulfilled the household project construction task of colorful Guizhou “radio and television cloud”, adding 227000 users to the “radio and television cloud” in the first half of the year.
Huashu media, on the other hand, is taking advantage of the epidemic situation to stimulate the demand for online entertainment to realize the rapid growth of Internet TV public network revenue, the better growth of broadband and data communication business income, and the overall upward growth of revenue.
In addition, there is the Oriental Pearl, reaching 7 billion 628 million yuan, but the revenue is mainly based on the Eastern cable, and when the Eastern cable is eliminated, the year-on-year change is negative.
What is more “tragic” is the net profit performance of listed companies. In the first three quarters of this year, all radio and television departments, which made full profit in the same period of 2019, all went down the slide.
In the first half of 2020, TVB, Guangxi Radio and television, and Hubei Radio and television respectively had net losses of ‘909 million yuan, 133 million yuan and 74.19 million yuan respectively. In the same period of last year, the three listed companies were still on the profit list.
Difficult to sail against the current? Competition and epidemic situation hold the throat of the development of radio and Television Department
The decline of performance of one or two companies can help to find out whether they are not well managed. When each company has a low performance, there will be a common problem in the industry.
In the semi annual report, the listed companies also attributed the main problems to the industry environment.
First, the industry as a whole to intensify the pressure of competition.
From the perspective of market environment, at present, provincial network companies have occupied the market, won the cable users and broadband users of each mountain, and supported their performance through relevant payment services.
However, the enabling of science and technology has accelerated the development cycle of various industries. In recent years, with IPTV and Ott With the development of TV and mobile Internet video, the market space is gradually occupied. The frequency of users’ use in mobile terminal has increased sharply. Large screen is replaced by small screen, and the market is cut. The TV legacy users are mainly less than ten generations and more than sixty generations, which directly leads to the damage of traditional TV business of cable TV, and the stickiness of TV users is also shaken.
In addition, after the three major operators launched 5g packages in succession, the radio and television industry, which has fallen behind, can’t keep those users who like to taste fresh.
According to the data provided by the quarterly development report of China’s cable TV industry in the first quarter of 2020, by the end of the first quarter of 2020, the total number of cable TV users in China was 206 million, with a net decrease of 3.104 million, and the share of cable TV in China’s home TV market dropped to 45.58%. Among them, the number of cable digital TV users decreased by 2.02 million to 190 million. In the fourth quarter of 2019, the total number of digital cable TV users was 192 million, with 144 million paying users.
The total number of broadband users is also shrinking. In the first quarter of 2020, the total number of radio and television broadband users was 41.869 million, a net decrease of 577000 compared with the 42446000 in the fourth quarter of 2019, showing a negative growth for the first time.
As of July this year, IPTV users of the three major operators have reached 305 million, while fixed broadband users have reached 468 million.
Although the radio and television series of Listed Companies in the awareness of crisis driven them in IPTV, Ott TV and mobile video terminals have some layout. For example, crocodile TV of Hubei Radio and television mainly promotes Ott business and builds content aggregation platform; TV and radio media launched “snail TV box” and mobile terminal “snail video app”; while revenue of Internet TV business of Huashu media increased to nearly 30% in the first half of the year. However, as far as the industry is concerned, the Ott led by the radio and Television Department and the Ott led by hardware manufacturers such as Xiaomi and Hisense are not at the same level of user’s mental acquisition, so it is difficult to stop the revenue decline caused by the loss of users.
The change data of cable users and broadband users disclosed by various listed companies also provide evidence. In the first half of the year, Jiangsu cable, radio and television networks, Oriental Pearl TV and Kyrgyzstan media lost 210 thousand, 140 thousand, 90 thousand, 20 thousand respectively, and the number of Print-Rite video cable digital TV subscribers was reduced by 4.66%. Radio and television networks and Oriental Pearl broadband users lost 5 thousand and 400 or 40 thousand respectively in the first half of the year.
Second, the impact of the epidemic.
In the beginning of the year, the sudden “new crown” epidemic is also directly or indirectly impacting the walls of the radio and Television Department.
During the epidemic period, according to a series of policies for benefiting the people of the State Administration of radio and television, radio and television enterprises adjusted some cable TV content to broadcast free of charge, and the films and programs that originally needed to be paid for on demand were also adjusted to be free of charge, which made the business of enterprises shrink to a certain extent.
Offline cable TV, broadband users’ new installation, promotion and other actions are also constrained by the epidemic, limiting the new scale of users.
At the same time, the epidemic is also indirectly affecting the revenue of radio and television enterprises by restricting cultural and tourism activities. On the one hand, force majeure such as hotel closure and enterprise shutdown during the epidemic period greatly reduced the charging rate of non resident TV users and brought loss to revenue; on the other hand, the overall frustration of cultural and tourism business sector made the listed radio and television companies with layout in this industry seriously hurt.
One of the most influential is the radio and television media. Among the main business of radio and television media, cultural and tourism business is second only to cable network business. It owns Changsha world window theme park and five-star St. Francis Hotel. TVB media also emphasizes that cultural and tourism business will be the key development direction. Manguo culture and tourism company has been set up to integrate Hunan Radio and television content IP resources and lay out new growth points of cultural and tourism business.
In the first half of 2020, the window of the world lost 9.5444 million yuan, St. Francis Hotel lost 9.5542 million yuan, and the culture, tourism, advertising agency and other businesses of radio and television media suffered the first loss in recent years.
At the same time, the advertising business of Yunhong high-speed rail and other advertising businesses of TVB media were seriously affected by the epidemic. Compared with the same period of last year, the business volume showed a sharp decline, with a half year net profit loss of about 27.59 million yuan. The situation in the second half of the year is still not optimistic.
5g break? Hundreds of billions of “national one network” integrated into life-saving driftwood
The influencing factors of the epidemic situation may still be warming up, but the market space is squeezed and the trend of user loss is hard to stop. Ju’an still needs to be aware of the danger. What’s more, the radio and television system at this time has reached a fork in the road that has to be transformed.
The market has never been merciless, can not keep up with, can only be eliminated.
In fact, the answer to the problem of breaking the game has long been in front of the radio and Television Department.
In February this year, the Propaganda Department of the CPC Central Committee and other nine ministries and commissions jointly issued the implementation plan for the integration and development of national cable TV network (hereinafter referred to as the implementation plan), so as to accelerate the integration and development of national cable TV network and 5g radio and television construction. According to the implementation plan, the integration of “national one network” is jointly initiated and established by China Radio and television joint provincial network company and strategic investors to form a “national one network” joint stock company dominated by China Radio and television holding and managed by parent subsidiary company system for provincial network companies. Build 5g network with radio and television characteristics, realize the integrated development of “national one network” and 5g, and promote the linkage of large screen and small screen, wireless and wired connection, satellite and ground coordination.
In fact, in the past 20 years, with the development of Internet technology, national policies have been promoting the integration of television and network. At the beginning of the 20th century, the “three networks integration” proposed that the strategic planning of the integration of television, telecommunications and computer networks was clear; then, it was proposed to build a digital television network integrating cable, ground and satellite transmission. After ten years of development, by 2010, “one province, one network” architecture network will be basically formed. During the same period, the pilot projects of 12 cities were launched and promoted. However, it is undeniable that the laying is hard, and the provincial networks are still “doing their own things” and it is difficult to form a joint force.
Subsequently, in order to promote the realization of “three networks integration”, China Radio and television was approved to be established, and was officially listed in 2014. Under this premise, in the face of the current task of promoting the integration of “national one network” and 5g, SARFT has put the baton into the hands of China Radio and television. The specific plan is that China Radio and television will take 5g license and capital into shares, and provincial networks will subscribe according to their net assets, and introduce Alibaba and State Grid as strategic investors.
For the promotion of this year’s “implementation plan”, many voices in the industry believe that it is at the right time. Facing the current situation of shrinking users, provincial network companies are not easy to explain with the report card of revenue and net profit decline. In fact, this is also the promotion of radio and television 5g construction.
2019 is known as the first year of 5g in China. In June 2019, the Ministry of industry and information technology issued the first batch of 5g licenses to China Mobile, China Unicom, China Telecom, and China Radio and television. These four institutions have become the “pioneers” in charge of 5g construction in China, which have trust and pressure.
Since June 2019, the construction of 5g base stations of the three operators has exceeded 400000, and the number of end users has exceeded 66 million. “5g +”, “5g whole scene intelligent logistics system”, “5g smart Park” and “5g package”. From infrastructure to innovation, from 9 yuan package to 100 million yuan ecological scenario planning, the three operators have “high morale”.
However, China’s Radio and television is still in the old God, and there is no clear commercial deployment action. However, we can not ignore that we have completed some preliminary work, such as spectrum standard, baseband chip network, 5g data call, system scheme and so on, which have met the 5g international standard, or completed the relevant tests for 5g work.
At the end of August, that is, at the same time when the listed companies of the radio and Television Department successively disclosed their half year financial reports, 11 listed companies successively issued foreign investment announcements, and the number of promoters was reduced to 46 after the withdrawal of CITIC Guoan Information Industry Co., Ltd.), led by China Radio and television, participated by provincial network companies, and strategic investment of Alibaba and State Grid Joint stock company, namely China Radio and television network Co., Ltd., made disclosure. On August 4, the company has completed the application and registration. Driven by the policy, China’s 5g radio and television layout rhythm has been significantly accelerated.
The company, with a registered capital of more than 100 billion yuan, was born with a golden spoon. From the perspective of equity composition, China Radio and television holds 51% of the shares and is the controlling shareholder. It makes capital contributions with assets such as the “valuable” shares of the National Radio and television cable trunk network company, the equity of the provincial network company that has been invested, and brings 5g license qualification and frequency resources into the Bureau.
State Grid and Alibaba respectively invested 10 billion yuan, with 9.8813% of the shares respectively, followed by Guangdong Radio and Television Network Development Co., Ltd., which invested 6.623 billion yuan, and Beijing Beiguang Media Investment Development Center Co., Ltd. invested 3.89 billion yuan, becoming the fifth largest shareholder of “national one grid” Co., Ltd., with a shareholding ratio of 3.8469%. The remaining 20% of the shares were distributed among the remaining 41 companies.
According to the specific subscription situation of 11 listed companies, 9 of the Oriental Pearl and guiwan networks invested in cash, while the media invested 200 million yuan, while the Hunan cable 51% shares and other assets were invested. At the same time, the Song Hua cable was subscribed by the stock option. The northern Guangdong Media subscribed to 51% of its holding of Ge Hua cable, corresponding to 3 billion 890 million yuan, that is, the “whole”. The fifth largest shareholder of “state first network” joint stock company.
In this regard, some voices in the industry have proposed that Gehua cable will take shares as a share, or consider the backdoor listing of the “national first network” joint-stock company in the future.
In order to realize the unified operation and management of the national cable TV network, maintain and increase the value of state-owned assets, build a 5g network with radio and television characteristics, enable the cable TV network, and complete the IP and intelligent transformation of the cable TV network based on the national interconnection platform, To promote the transformation and upgrading of cable TV network and realize the integrated development of national one network and 5g, China Radio and television, together with other sponsors, jointly initiated the establishment of China Radio and television network Co., Ltd., which is conducive to the company’s deep participation in the integration of national one network and the construction of radio and television 5g, which is in line with the company’s strategic development direction. “.
When the policy promotion meets the turning point of transformation, the 5g layout has to be launched for the radio and Television Department. However, whether it can really help the radio and television to get out of the predicament and usher in the rising period again is still the trend that can not be sealed.
Mainly, there are still many difficulties.
First of all, there is the problem of 5g license sharing. According to the industry analysis, at present, the Ministry of industry and information technology requires that two unrelated independent companies can not share one license, that is, China Radio and television’s 5g license, which can not be shared with the local cable network company as an independent legal person. Huashu media and other listed companies have also told the media that China Radio and television has obtained the 5g license, and the listed companies have no shares with it Therefore, it has no significant impact on the business.
According to the equity structure of “national one network” joint-stock companies, the nine listed companies that only make capital contribution in cash may still be unable to use 5g license plate. The possible way to promote this is to establish a joint venture company and other compromise ways to obtain the license use right.
In addition, there are still problems left over by radio and television. The binding force under the whole network and unified jurisdiction is quite different from the “one province and one network” operated by each other. However, the difficulty of integration often lies in the formation of top-down unified decision-making and bottom-up response action. In reality, it is uncertain whether the provincial power grid companies with “each occupying the Mountain” all year round will be able to listen and the speed of implementation is still unknown.
Not only that, for the “national one network” joint-stock company, although broadcasting and television has the absolute advantage of 700m frequency band, it is still difficult to make up for its lack of professional talents, technology and capital in the field of communication operation.
At present, the “national one network” joint stock company has not been officially listed. It takes a lot of time to build and straighten out the internal system and mechanism, and to coordinate the operation of provincial networks and strategic parties. In the view of the industry, in this integration of “one national network”, China Radio and television mainly takes the lead in helping to realize the intensification of resources. Further implementation depends on how the provincial network “catches” and stabilizes. Next, it is bound to be a long-term “battle”.
At this time, parents of listed companies gather to discuss issues that are not limited to the current report card, but the near future.
(statement: This article only represents the author’s point of view, not Sina’s position.)