The Internet is winter, each showing magical powers

@新 新 新

Author 丨 Bai Yan

Edit 丨 Monthly

In the early days of byte beating, the founder Zhang Yiming undertook the work of the first HR. His theory is "radical" hiring young people -as long as people are good enough, it does not matter if there is a corresponding position. "Facebook, Paypal, and Dropbox are very radical in hiring. Excellent young people may make mistakes, but they will not be mediocre.

This represents the style of the "Cyclonus" era in the mobile Internet. The latter is named for the literary movement of Germany in the 18th century, emphasizing getting rid of restraint and liberating personality. During the period when the penetration rate of smartphones, the overall style of the Internet industry was the emergency horse -like horse -making circle, and the slow transformation players were eliminated.

But this does not mean that the myth of mobile Internet eyes will continue. In the article "Twenty Thousand People in Internet Companies", the technology author Pan Chao has captured a sharp phenomenon -Internet companies have grown to a stage of 20,000 people, which will inevitably appear large and medium platforms and fast buckets. slow.

The inefficient crisis brought by this internal expansion has repeatedly forced enterprises to adjust its organizational structure. For example, Alibaba is accustomed to making organizational structure adjustments after the Double Eleven World War every year; Tencent will make a large business structure adjustment every few years to solve the per capita efficiency decline, the space for new employee growth, the decline of talent attraction decline question.

In addition to the natural adjustment of such enterprises, in the cold winter of the market, Internet companies have to shrink the scale of business and cut redundant business to avoid diminishing marginal benefits in economics theory. This is what is happening now. From the stopping of the Ant Group Science and Technology Board IPO, the Internet industry has entered a long winter period, and large enterprises have chosen "broken arm survival".

Internet return

"Except for huge stars and PICO, other business lines are layoffs. Commercial local consumption is the hardest hit area."

This is the content of a person who claims to be internal employees in the internal employee. The huge stars and PICO are the expert marketing service platform and VR hardware brand with byte beating.

On October 18 last year, the news of the beating layoffs attracted attention. A large number of breaking news shows that games, education and local living business are the focus of layoffs in this round.

In 2019, the byte beating was launched and the vigorous education of Zhaoxi Guangnian and strong education, as the starting point for entering the game and education industry. However, in July last year, the suspension of the online game version number had a synchronization with the double reduction policies of the education industry, which made related businesses a tasteless chicken rib. After 4 months of policy release, bytes have been exposed to domestic advertising revenue has stopped growing in the past six months.

Alibaba is also trapped in anxiety.

The Q1 financial report of 2023 shows that the number of Alibaba employees has dropped from 254,900 at the end of March this year to 245,700, that is, nearly 10,000 people in a single quarter. According to the report of 36 氪, local life has become the focus of Alibaba's layoffs. Among them, it is optimized by people who are hungry and flying pigs.

Local living businesses have grown rapidly at a time -from Q3 in fiscal year in 2022, Ali's local living revenue has been maintained at more than 27%year -on -year. But in Q1, 2023, this data fell 5%again.

Since the beginning of this year, Internet companies have generally dismissed marginal business or reduced their budgets. The reason for the reason, the consumer Internet seemed to be tightened and the regulatory policies tightened together, which caused this phenomenon.

According to data from China Xintong Institute, since 2017, my country's mobile Internet penetration rate has entered a slow period. Correspondingly, social, games, e -commerce and other industries are also facing growth.

Under the pressure of huge growth, Internet companies have been looking for ways, but the solutions are not complicated -transitioning to refined operations, turning from volume to quality. In the future, players who can make business deeply can survive longer, and the company's products need to provide the market with "rejection of rejection."

"Deep excavation" for business

In the wave of cost reduction and efficiency and efficiency in the entire Internet company, many representative cases have emerged in the field of entertainment.

In the past few years, the long video industry is known for its huge losses. However, in the first quarter of this year, iQiyi achieved a loss of losses. The net profit was reversed from the same period last year to a profit of 169 million yuan. At the financial report meeting, iQiyi CEO Gong Yu said excitedly: "I hope that shareholders can see that iQiyi took the lead in opening a new stage of China's long video industry."

IQiyi's "turning" is the result of saving money -from December last year, iQiyi has raised membership prices, while reducing content procurement and centralized operation of head content. A group of high -mouth works such as Judu "boosted the membership income of the platform.

On the upstream of long videos, the resolution of the reading group with IP incubation and operation as its main business is also worth seeing.

The 2022 interim report released after the market on August 15 showed that the semi -annual revenue of the Reading Group was 4.087 billion yuan, a year -on -year decrease of 5.9%. Operating profit was 693.8 million yuan, an increase of 8.2%year -on -year; non -international standard operating profit margins also increased from 14.8%last year to 17%.

The cost -reducing efficiency and efficiency of the reading are mainly based on ensuring that the main business is not affected, reducing marketing costs and management costs, and paying more attention to ROI and efficiency when putting on.

The revenue cost structure of the reading is mainly these -content costs, mainly to divide the copyright income of the author; the platform distribution cost is mainly to distribute channels and mobile phone manufacturers' sales revenue; Visual money; intangible asset amortization is the cost of buying the copyright content of the company, which is divided into three -year amortization; the cost of inventory is mainly the adaptation of the work, script, paper, books, and surrounding goods. Calculate.

The interim report clearly reflects where the money from the reading comes from and where to go -compared to the first half of last year, the distribution cost of the reading platform has dropped by 22%, and the cost of amortization of intangible assets has fallen by 57.93%, accounting for not much proportion Inventory costs also decreased by 24.89%. From the perspective of sales expenses, the sales expenses of reading in the first half of this year fell from 1.348 billion to 1.111 billion yuan, while operating cash flow rose from 430 million yuan to 700 million yuan, an increase of 63%. The only rising cost is the cost of film and television animation production, with an increase of 101.89%, and this direction is also the focus of reading -IP development and operation. Obviously, the main purpose of the cost of reading the text is to optimize the allocation of resource allocation and focus more on key businesses.

This corresponds to the point of view of the senior management executive at the performance telephone: "On the premise of ensuring the improvement of the quality and quantity of literary IP, the company reduces some markets and marketing costs, which will abandon some current income, but it is conducive to long -term business development."

The reward of the reading is equally rich. In terms of online literature cornerstone business, about 300,000 writers, 600,000 novels, and 16 billion words were added in the first half of the year. The basic market of IP content ecology was still stable.

At the level of IP development and operation, in the first half of this year, the reading has launched a phenomenal work like "The World". "Heart", "The Wind Relieve Longxi", "Please call me director" and "This killer is not too calm". In terms of animation, the new Fan of "Star Change" and "Martial Arts Qiankun" occupied Tencent Video in the first half of the year. Tencent Video, which played the top 20 in the first half of the year, has 11 seats.

In addition, as of the issuance of the financial report, the 300 net texts of Tencent and Tencent Anime have more than 170 read -based IP adaptation comics to launch Tencent Animation. Reading executives said at the financial report and telephone meeting that according to the current progress, the plan is expected to be completed in advance or surpass at the end of next year.

In the field of IP derivatives, reading is also continuing. In the first half of this year, the statue of the Broken Sky Mermaids sold out in 40 minutes was sold out in 40 minutes, and the GMV exceeded 5 million yuan. Another potential area is the game. In addition to obtaining IP authorization income, the reading will also get the flowing of the game after the game is launched. Because the mobile game development cycle is always two or three years, the revenue support of the relevant business has not obvious revenue, but under the normal background of the version number, the reading of many high -quality IPs is expected to benefit first.

Conclusion

In the recently -screening Lei Jun's 2022 speech, Lei Jun reviewed the 2005 cognition of the Internet -the Internet is not only a technological revolution, but also a key revolution. In the future, the Internet will integrate all walks of life.

In the final analysis, the Internet can promote efficiency -pass data faster and lower, so that the information transmission of goods and consumption information has reached an unprecedented height.

Right now, the recovery of the Internet industry is also based on efficiency -back to the ability to promote the efficiency of the industry, becoming a catalyst in the traditional industry instead of obstacles.

For all Internet companies, cost reduction is a means to increase efficiency -who can optimize the resource allocation of the industry and allows the elements to flow faster, who can get the next ten years of entry vouchers.

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