Oriental Pearl Internet TV Biggest Strategy Accelerates Implementation

On June 19, the reorganized Oriental Pearl was officially listed on the Shanghai Stock Exchange, and the major assets reorganization of Shanghai Culture, Radio, Film and Television Group Co., Ltd. (namely SMG) officially ended. On the same day, New Oriental Pearl also held a general meeting of shareholders and a new board of directors. The new board of directors led by president Wang Jianjun and the new management headed by Lingang Iron and Steel were elected respectively, and the matrix organization structure adapted to the development of the Internet was completed. The construction.

Reorganization completed, vigorously promote the Internet TV strategy landing

It is not possible to wait until the reorganization is complete before going to layout and adjustment. Under the conditions allowed by the policy, we must seize the opportunity to improve the layout of Internet TV. According to the Oriental Pearl (formerly Best Vision) announcement, in January of this year, Ling Gang and Xu Feng entered the surviving company as president and vice president respectively. Then Oriental Pearl (formerly Best Vision) announced some changes and established five major business groups, laying out a layout around Internet TV. . After the restructuring was officially completed on June 19, the Pearl of the New Oriental immediately announced the layout of 14 business groups surrounding the Internet television ecosystem. Ling Gang has disclosed that the main energy of New Oriental Pearl is to promote Internet TV strategy. The company will continue to promote Internet TV strategy from both "B2B" and "B2C."

Before the restructuring was completed, Oriental Pearl had taken a step forward and vigorously promoted the landing of the core strategy of Internet TV. The in-depth cooperation with the cable TV network, DVB+OTT business, is one of the important ways for the Oriental Pearl Internet TV B2B strategy. DVB+OTT refers to the converged products of real-time cable television broadcasting and Internet TV mass on demand using cable TV networks. In March of this year, Oriental Pearl (formerly Best Vision) participated in Gehua Cable's private placement and reached strategic cooperation to further promote cooperation in DVB+OTT and TV shopping. Gehua Cable has 5.5 million quality users. Since the increase in March, the two sides have rapidly implemented strategic cooperation to further promote the DVB+OTT strategy. In May this year, relying on the large quantity of Oriental Pearl's premium content, the two parties jointly released the BesTV platform as a carrier. Gehua 4K TV. In June of this year, Oriental Pearl participated in the scheduled increase in radio and television network and reached a strategic cooperation to further advance the cooperation of DVB+OTT. The radio and television network has 6.28 million subscribers and the actual bidirectionality is nearly 80%. It further promotes the B2B-based DVB+OTT strategy. The purpose of the above actions of the Oriental Pearl is to obtain high viscous cable TV's effective users and turn it to Internet TV. Next, Oriental Pearl will continue to seek exclusive cooperation with other broadcasting companies in provinces and cities, and cooperation with the National Grid's smart network system is also expected to commence.

The telecommunications channel is another very important way for the Oriental Pearl Internet TV B2B strategy. Oriental Pearl (formerly Best Vision) has more than 23 million IPTV subscribers and works closely with telecom operators. It is reported that Oriental Pearl is also planning to launch IPTV+OTT fusion products with telecom operators, integrating live broadcast of IPTV and mass on demand of Internet TV to provide users with more content-rich and more powerful products. Only operators with full licenses, rich content, and very sophisticated channels can launch such converged products.

The cooperation with Sci-Chi shares is an important layout of the Oriental Pearl Internet TV B2C strategy. On June 19th, the announcement of New Oriental Pearl was announced by both parties. Oriental Pearl and Shanghai Media Group jointly participated in the increase of SiuChi shares. At the same time, the two parties signed a strategic cooperation agreement. In the field of Internet TV business, all of Chichi's own brand Internet TV terminals. Products (including but not limited to a set-top box, integrated machine, etc.) and the Oriental Pearl BESTV Internet TV integrated broadcast control platform exclusive docking. Siu Chi is a joint-stock high-tech enterprise specializing in the production of consumer electronic products. It is mainly engaged in research, development, design, manufacture and sales of home audio-visual consumer electronics products. The main products include digital intelligent high-definition LCD TVs, digital smart pay-TV set-top boxes and so on. In the cooperation with Mega Chi Corporation, the positioning of the popular website of Oriental Bright Pearl is also worthy of attention. Oriental Pearl announced on the same day that in order to create a strategic layout of the Internet media ecosystem with Internet TV as its core business, the company plans to seek strategic partners through the transfer of 63% of the shares of the popular network to use its home audiovisual consumer electronics R&D, The advantages of design, manufacturing and sales, together with accelerating the implementation of Oriental Pearl's Internet TV-oriented home and consumer consumer business (B2C) hardware strategy. The outside world speculated that the popular network is expected to become the operating platform for the company's cooperation with Siu Chi shares. Ling Gang said that this cooperation model is expected to become a "model" and replicated.

Multi-dimensional breakthrough, consolidate the advantages of the content

In the channel of multiple distribution, at the same time, Oriental Pearl is continuing to build its own content advantages. The strong content itself is also the entrance of traffic. The company's president, Ling Gang, stated that the Oriental Pearl will build content competitiveness through content aggregation and industrial investment, and become the Internet media with the largest content, the most complete categories, the strongest comprehensive ability, and obvious content advantages. enterprise.

First, the Oriental Pearl will fully integrate with SMG and use the industry's most complete new media distribution channels and qualifications. Relying on SMG's content productivity, broadcast for the Internet and increase the value of content. Second, the use of SMG over 50 years of accumulated quality content. Carry out various forms of content cooperation, disseminate SMG's premium content, and jointly realize content value. Recently, Oriental Pearl will cooperate with SMG to invest in the construction of the Group's Internet program center, which will be operated in a corporatized manner. With the principle of capital investment, platform opening, benefit sharing, and technical support, we support the connection requirements of the Internet program center and the content creation of our SMG to build a bridge. Third, strengthen the production capacity of content, production capacity of film and television production and media production. Relying on the capital platform, strengthen investment in high-quality content production companies. Fourth, the maximum degree of syndicated content. The Oriental Pearl is not only one of the seven Internet television integrated broadcast control licensees promulgated by the General Administration of Press, Publication, Radio, Film and Television, but also the most powerful Internet TV content owner in China. Based on the comprehensive integration of SMG-owned channels, digital TV, frequency, and production unit copyright content, it has independently invested in the procurement of high-quality copyrighted content in ten categories including domestic and overseas large-scale film and television drama libraries, sports events, documentaries, and children. The "quality" and "quantity" of copyright are at the forefront of the domestic video new media industry. Oriental Pearl currently has more than 40,000 movie copyrights, 200,000 episodes of TV drama copyrights, 10,000 animated films, and more than 5,000 documentaries. The Oriental Pearl can operate more than 1,800 latest movie and blockbuster movies each year, more than 10,000 episodes of hot broadcasts, the most animation rights in the country, and the world's best quality documentary. The company has accumulated over 450,000 hours of premium copyrights, including nearly 100,000 hours of high-definition copyrights, and has built China's largest SDTV and HD library. Through cloud distribution technology, it can serve TVs, PCs, PADs, mobile phones, and other terminals. A cloud multiscreen" and cross-screen fusion. Fifth, according to the restructuring plan, the future Pearl Oriental will make large-scale investment in copyright and establish a powerful media copyright operation platform. In the next three years, in addition to raising investment funds, in addition to large-scale self-control, Oriental Pearl and SMG spend an average of nearly 2 billion yuan each year on copyright purchases such as movies and TV dramas.

While deepening comprehensive cooperation with domestic copyright owners and obtaining the highest quality copyright in the country, Oriental Pearl will fully leverage its advantages in internationalization and platform to carry out extensive international cooperation. A cooperation agreement has been reached with the international media giants BBC, Disney and other international copyright parties and the introduction of premium content copyrights. According to the Oriental Pearl (formerly BesTV) announcement, it has reached strategic cooperation with the joint production of programs, derivative product licensing, e-commerce and offline activities, etc. Oriental Pearl will receive a large amount of high-quality program content from the BBC, and the BBC and Oriental Pearl will jointly Chinese language content is promoted to the international market. Relying on SMG as an important investor in the Chinese shareholders of the Shanghai Disney project, Oriental Pearl continuously deepened its business cooperation with Disney. Oriental Pearl announced last year that it had reached cooperation with Disney on media content and derivatives, which will further enrich the Oriental Pearl Internet TV content. At present, the Shanghai Disney flagship store has been in trial operation on May 20, and the park project will also be open for trial operations in the second half of the year. It is reported that Oriental Pearl and Disney are also seeking business cooperation in tourism and entertainment. Oriental Pearl has a series of famous tourist attractions such as the Oriental Pearl TV Tower, the Oriental Green Boat, and the Mercedes Benz Cultural Center.

The organizational structure has been adjusted and equity incentives are under development

According to Ling Gang, in the process of asset restructuring, the original Oriental Pearl and BesTV's management and matchmaking were in the running-in period, and the restructuring has now been completed. The fine-tuned management strategy of the New Oriental Pearl has gradually spread. Li Ruigang, who is the reformer of Shanghai Wenguang's "Banner", serves as the Honorary Chairman of the Eighth Board of Directors of Oriental Pearl in addition to serving as Chairman of the Board of Directors of SMG, guaranteeing and assisting the company's development at a higher level. Ling Gang said that the new board of directors and management arrangements will ensure that the company’s management effectively manages the company, refines the corresponding management, ensures the implementation of the company’s strategy, and constantly improves the Internet media ecosystem.

On the day when Oriental Pearl Mingzhuo was listed, the new Mingzhu Oriental Board of Directors completed the adjustment of the organizational structure and laid the foundation for the orderly development of follow-up work. The SMG decision-making layer headed by Wang Jianjun’s chief of the board also served as a member of the board of directors of Oriental Pearl, ensuring the effectiveness and efficiency of the decision-making of listed companies. The management led by Lingang Iron and Steel Co., Ltd. operates in a market-oriented manner. According to the Oriental Pearl Bulletin, in order to adapt to the company’s main business development trends and to deploy new business models as soon as possible, the company’s organizational structure is appropriately adjusted and established: Cloud Platform and Big Data. Group, Research Institute, Media Production Group, Film and TV Production Group, Copyright Operation Group, Internet TV Group, Channel Operation Group, Mobile Transmission Group, CATV Group, Digital Marketing and Advertising Group, Video Shopping, and E-commerce business group, game business group, culture, entertainment and tourism business group, cultural and real estate business group.

In addition, as a model for the integration of cultural media and a leader in the reform of cultural state-owned assets, the market has been waiting for the actions of Oriental Pearl in equity incentives. Last year, the Oriental Pearl (formerly BesTV) had announced that after the reorganization was completed, under the guidance and support of the Shanghai Municipal Party Committee Propaganda Department and industry authorities, it will strive to explore long-term incentive mechanisms that will help deepen the reform of the state-owned listed company's pay system, and continue to promote it at an appropriate time. The new stock option incentive scheme will better balance and safeguard the long-term interests of state-owned assets, shareholders, employees and listed companies. It is reported that Oriental Pearl will actively promote incentive mechanisms such as equity incentives on the basis of obtaining regulatory approval and completing related company processes. Ling Gang said that the strength of equity incentives must meet the norms, but also have a strong role in the specific program is being studied. In this regard, the Oriental Pearl will continue to be the "pioneer of reforms" for listed companies in the country's broadcast and television systems.