Analysis of 56 nets where is the way out after mergers and acquisitions

 

September 2011, Renren announced a $80 million acquisition of the video site 56 net, which is seen as an important step in the expansion of the Thousand Oaks group. We know that the video website has been the high cost and risk said, including the cost of copyright and the bandwidth of the server is costly, if not have strong capital support and user groups, so the video website will be difficult to survive. And for Renren after the merger of 56 nets, what can everyone bring to it? 56 nets outlet and where,

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double the amount of traffic after mergers and Acquisitions: how do you do that,

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, let’s first see what breakthroughs have been made after the takeover by 56. Obviously, the flow is the fundamental survival site, since the renren.com after the acquisition, the 56 network traffic is relatively already doubled, according to official data Alexa, traffic network 56 reached 4 million IP, obviously, the flow of ascension will bring more revenue for the 56 network.

, let’s analyze how the 56 Network Traffic doubled. In 56 the independence period, all aspects of the operation and promotion work is a complete, one of the most important ways to promote or set up their own video alliance, the number of video playback to pay commissions to attract more users to its promotion in the promotion of 56 brought the first brand effect, but this promotion is not systematic, and some 00 scattered. In addition to the more powerful funds, 56 nets and no more can get the resources, including good promotion channels.

is worthy of our attention, the flow of video website as the main source of Post Bar, forum and SNS website, which will be some video sharing to some Post Bar through user forums or personal homepage, and on-demand video sites attract friends to bring a lot of traffic. Especially in the SNS website in the reprint and share function, can make some very popular video is forward and share thousands of times. Renren.com as a student group of the most powerful social networking sites, 56 after being renren.com mergers and acquisitions, share renren.com video in the most from the 56 Network, 56 Network will undoubtedly get more traffic from, but also become the 56 renren.com traffic network main source.

survival Keywords: social video and cheap student resources

we know that the cost of video sites is nothing more than content costs, promotion costs and server bandwidth costs, in which the server bandwidth costs are hard costs, is not to be reduced. Content costs and promotion costs are reduced costs, so the best way for video sites to gain higher profits is to increase the traffic at the same time as they reduce the cost of content and the cost of promotion.

generally speaking, the content cost of most websites belongs to the cost of purchasing copyright, so many video websites reduce content