Can you win the future by changing the commander?

Yuewen group has always been the leader of online literature, but in the first half of 2020, Yuewen recorded a loss for the first time in many years. On the surface, it can be attributed to the new crown epidemic and the complex and changeable macro environment, but in fact, it has exposed the lack of anti risk ability of the company’s bottom business model and the structural problems deposited for several years. < p > < p > the financial report shows that in the first half of 2020, the total revenue of Yuewen group is 3.26 billion yuan, with a year-on-year growth of 9.7%; the gross profit is 1.73 billion yuan, with a year-on-year growth of 6.8%. In terms of business, online business revenue increased by 50.1% to 2.495 billion yuan, while copyright operation and other revenue decreased by 41.5% to RMB 760 million. Xinli media’s revenue and operating performance in the first half of 2020 did not meet the expectations. As a result, the company recorded a provision for impairment of goodwill and trademark rights of RMB 4.41 billion, and the net loss of Yuewen group was RMB 3.31 billion. < p > < p > although Yuewen Group recorded a year-on-year growth in the first half of 2020, the year-on-year growth rate of 9.7% was significantly lower than that of the same period last year. < p > < p > according to the financial report data, the online business revenue of Yuewen achieved 2.495 billion yuan in the first half of the year, up 50.1% year-on-year, mainly due to the increase in the number of users and the increase in the amount of user payment. < p > < p > in the first half of 2020, the average monthly number of active users of self owned platform products and self operated channels of Yuewen group was 233 million, with a year-on-year increase of 7.5%; the average monthly number of paying users reached 10.6 million, with a year-on-year growth of 9.3%; the average monthly income of each paying user was 34.1 yuan, up 51.6% year-on-year. < / P > < p > although the company’s online business revenue increased year-on-year in the first half of the year, we have to admit that this is more of an accidental trend under the comprehensive influence of internal and external factors. On the contrary, the copyright operation and other income of the company will inevitably disappoint the people’s Congress. < p > < p > affected by the decline of Xinli media revenue, Yuewen group only obtained 765 million yuan of copyright operation and other income in the first half of the year, a significant decrease of 41.5% year-on-year. The decline of copyright operation and other revenue also affected the growth of the company’s overall revenue to a large extent. However, the huge loss in the first half of the year was mainly due to the fact that the performance of Xinli media was not up to the standard, which resulted in the provision of more than 4 billion yuan in goodwill impairment and trademark right impairment. < p > < p > excluding the impact of this part of goodwill impairment, the net profit attributable to shareholders of Yuewen group under non general standards in the first half of the year was 21.679 million yuan, and the adjusted EBITDA was 17.117 million yuan, which was significantly decreased compared with the same period of last year, mainly due to the increase of operating expenses and the increase of provision for impairment of accounts receivable. < p > < p > in the first half of the year, Yuewen group’s operating expenses, mainly including sales and marketing expenses and general administrative expenses, reached 1.621 billion yuan, up 11.8% year-on-year, higher than the overall income growth rate. In addition, due to the impairment loss of accounts receivable related to television and film projects in the first half of the year, the impairment loss of accounts receivable in the same period of last year was only 1.5 million yuan RMB. In terms of gross profit, Yuewen group made a gross profit of 1.731 billion yuan in the first half of the year, an increase of 6.8% over the same period last year; the gross profit margin of the company was 53.1%, slightly lower than that of the same period last year. On the net profit side, Yuewen recorded a loss for the first time in many years. According to the financial report, Yuewen group made a net loss of 3.296 billion yuan attributable to shareholders in the first half of the year, from profit to loss on a year-on-year basis. < p > < p > questmobile’s report shows that under the influence of the epidemic, all entertainment consumption of the public has been transferred to online, and the user scale of the whole pan entertainment industry, including online reading, has shown a growth trend. However, compared with other forms of entertainment, the growth rate of online reading users is relatively slow compared with other forms of entertainment. < / P > < p > in April this year, the adjustment of the reading management team triggered speculation that the Internet began to spread rumors that the payment model would come to an end. This not only caused a panic among writers, but also some people began to read the previously signed writers’ contracts and questioned some of the terms. However, the new management of Yuewen quickly cleared up the rumors and, on the basis of fully listening to the writers, launched a number of contract templates for writers to choose from and regain their trust. It has been proved that the critical thinking and positive response attitude adopted by the new management to solve the historical deposition problems exposed in the process is an effective way. On June 3, the new contract was published by reading the article. According to the needs of different authors, three types of four kinds of contracts were formulated. Soon after, media reports revealed that Mr. Xu Shengzhi, drunkard, Muyi and other online literary gods announced their return to Yuewen. Tianxia, who had been in court with Yuewen, announced that “everything is going well and looking forward to cooperation”. ·< / P > < p > secondly, although the single payment mode adopted by the Internet industry can cultivate the payment habits of some users, it is also easy to exclude price sensitive users, thus affecting the upper limit of the number of users. Since 2018, the free mode has been proposed by many new forces of online culture, and the traditional payment mode has been greatly impacted and challenged. < p > < p > more than a decade ago, Wu Wenhui’s team, as the main driving force, pushed the online text industry from the chaos of piracy to the payment mode, and the whole industry was able to establish a healthy business model and continue to grow. Therefore, for the Yuewen group led by Wu Wenhui, the rapid acceptance and layout of free of charge is changing the stable profit-making mode that has been operating for more than ten years, which is no different from “reforming its own life”. < / P > < p > according to the report released by questmobile, as of April last year, almost all of the free reading apps ranked in the top of the scale of live users were launched in 2018, while the launch of the flying reading app was in the first half of 2019. < / P > < p > “the free ticket is obviously not available. Late admission, lack of commitment, and insufficient strategic structure are the three main problems. “An Internet analyst believes that” the reading articles relying on Tencent have a large number of high-quality content and writers, but the products in its free form do not give full play to this advantage. Whether in terms of product form, distribution channels, user groups and recommendation mechanism, reading is no different from other free products Characteristics “. < p > < p > late admission, unclear characteristics, and ineffective use of content and channel advantages have always been the important factors restricting the free reading track layout and development. < p > < p > in the financial report conference call, Cheng Wu, CEO of Yuewen, also said that the free reading business has always failed to meet the expectations of the management, and the overall performance of the Feidu app did not match the leading position of the online text corresponding to reading. < / P > < p > in fact, for both the platform and the majority of online writers, it is a good thing to increase the income by deriving the Internet IP to the film and television realization. In order to build a complete IP industry chain and master more initiative, it is natural for the platform to pocket the income of film and television companies. Therefore, the acquisition of Xinli media was the right choice for reading. < p > < p > however, since the acquisition of Xinli media in 2018, the collaborative effect of reading and reading has not been fully revealed. In terms of works, although we had this win-win masterpiece with word-of-mouth and popularity last year, on the whole, the output rate of blockbuster works is not high. At the same time, the net profit of Xinli media has failed to meet the performance commitment for two consecutive years. At the same time, the cooperation between Yuewen and Xinli media has not reached the state of “in-depth collaboration”, which also reflects the deeper problems. It is undeniable that the original management team of Yuewen has been deeply engaged in the network literature industry for a long time, and promoted the maturity and development of the industry system and business model. However, the development of text has been too focused on the Internet, but it has also missed the opportunity of development. Nowadays, animation, film and television, games and other emerging forms of content are widely rising, but reading has failed to build an IP centered ecosystem on the basis of network literature head platform, and give full play to the real value potential of high-quality IP. The reason is the lack of a reader who not only understands the network literature business, but also is familiar with the operation of the entire cultural industry. At the same time, there is also a lack of a complete and mature IP incubation and operation mechanism radiated by network literature to the whole cultural industry. As a result, the online business and copyright business of reading articles are still independent of each other, and they have not gone to the practical implementation of business integration and project cooperation, and the overall progress of Netcom IP development business is slow. “Although we have made some achievements in the past, the real problem is how to achieve scale.” Cheng Wu said. < / P > < p > Fourth, judging from the financial report data, reading articles also failed to make good use of Tencent’s channels. In the online business income of Yuewen, the income of Tencent’s self operated channel, the average number of monthly active users and the number of monthly payment users all decreased year on year. < p > < p > generally speaking, the challenge of online business reflects the “old disease” of reading articles, while the challenge of copyright business lies in the lack of strategy and determination to rapidly expand new business. From this point of view, further linkage between partners inside and outside the ecosystem, playing a deep synergy effect, and innovating business according to market changes will make reading more active and less hindrance to action. Finally, the effect of accelerating change will be more significant. < p > < p > after the release of the financial report, Cheng Wu, the new CEO of Yuewen group, said that the future development is not a “smooth and successful journey”, and that he needs to be down-to-earth, objectively evaluate the possible difficulties, and be ready to face all possible challenges. Indeed, today’s reading has stood at an important historical juncture of development. Faced with the impact of free reading, the trend of IP development industrialization and the evolution of business model, how will the new management lead the reading industry and further show its potential? < p > < p > in May, the management of yuewenxin held a forum to explore and communicate with the writer on the controversial issues, and also made it clear that it would revise the unreasonable points in the contract over the past years. < p > < p > in June, the “new contract with single optional version” was published and more than ten terms in the previous contract were reformed. According to the article, the single format contract will be cancelled, and the hierarchical authorization mode of basic agreement, authorization agreement and in-depth agreement will be introduced, and the initiative to determine the cooperation mode will be given to writers, so that different levels of writers can choose their own programs according to their own development demands. According to 36 krypton, a number of writers, including drunkard, Mu Yi and Mr. Xu Shengzhi, announced their return a week after the new contract was released. < / P > < p > in the financial report conference call, the new management team of Yuewen group also said that on the basis of consolidating the core position of paid reading, the new management team of Yuewen group will increase the exploration of free reading and other business models, combine the advantages of reading content reserve, better meet the different needs of users, and provide more income possibilities for writers. Of course, these actions will be based on full communication with the writer group. In addition, the new management group of Yuewen should continue to make efforts in “strengthening the IP centered ecosystem”. As mentioned above, the lack of a “role to understand both the online literature business and the operation of the entire cultural industry” in the previous reading has led to the company’s failure to play the full value potential of high-quality IP content. Today, Yuewen group