Behind the back of the game the flow of the industry to seize the downstream industry profits

NetEase Francisco February 26th evening news, the disclosure of Qihoo has just released the 2011 fourth quarter earnings, the Webpage Game revenue of $17 million 180 thousand, an increase of 227.7%, everyone, amusement etc. also considerable growth. Behind the back of the page tour is the industrial structure changes, the flow of business transformation game operators, grab downstream profits. The direct consequence of this phenomenon is that the page tour accelerated oligarchs, small players out, shuffle start.

flow quotient Transformation: grab the downstream profits of the industry

a few days ago, the Qihoo to produce a beautiful quarterly, the web game business contributed: Q4 total revenue of $62 million 300 thousand, to Webpage Game based Internet value-added services revenues of approximately $17 million 180 thousand, an increase of 227.7%, an increase of 41.8%.

look at the other Webpage Game company performance: Quyou 2010 revenue of 60 million yuan, 2011 revenue exceeded 600 million yuan, this year is expected to 1 billion 200 million yuan; among the Tencent Webpage Game seven "hegemony" in August last year, monthly income reached 200 million yuan, half a year ago, just prior to the release of the 2011 billions of dollars; everyone Q3 earnings report also revealed that from Webpage Game income of about $11 million, an increase of 23.6%; the previously unknown world wide Kunlun last year in the third quarter, monthly revenue has quietly exceeded billion yuan……

such performance with a blowout to describe is not excessive. There is also a certain logic behind the rapid growth: traffic and channel is king – the above page tour company itself has more traffic or channels.

traditional page tour industry chain is divided into three parts: R & D providers, traffic operators and operators. As the music of Hong Kong this R & D industry, accounting for the bulk of the profits, but the risk is too big, a single product success rate of only 5/1000 to 8/1000; Baidu, network alliance, Qihoo belongs to middle income business flow, the risk is almost zero, the main entrance, traffic Kunlun, fun tour sold; this belongs to the operator (Note: two there are some research products), low risk, low income. Because more products, more water, but profit margins are not high, not more than 10%." Vice president of NetEase Changsheng joyport technology said.

end tour is relying on a good product to increase the scale of promotion, page tour is relying on channels. Who mastered the channels, who will grasp the development trend of the future "," game Qihoo senior director Guo Haibin said.

when controlling the flow of the channel operators to operate, its downstream operators competitive advantage is obvious, rapid growth naturally. Operators can do, it is to develop new channels, the overseas market has become the only way.

operators to sea: expand new channels

"in the last year, Baidu and Internet traffic is becoming more and more expensive, the conversion rate is not high, the price is too low, a Webpage Game insiders complain so. Page tour with the end of the tour is different, the high rate of loss itself, can only rely on continuous access to traffic, pull new users to maintain revenue growth. When part of the flow of business operators, other traffic >