One industry analysis per day – video

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Industry definition

Video refers to various technologies that capture, record, process, store, transmit and reproduce a series of still images in the form of electrical signals.

Industry framework analysis

Video industry chain: The video industry chain can be divided into three links: upstream, middle and downstream.

The upstream link mainly includes content production, shooting production, post-production and integration services, involving film and television production companies, TV stations, video websites and other institutions. These institutions are responsible for producing various types of video content, such as movies, TV series, variety shows, etc.
The midstream segment mainly includes streaming platforms, online video websites, players, etc., which are responsible for presenting video content to the audience.
Downstream links mainly include various application fields, such as advertising, games, social networking, e-commerce, etc. These fields combine video content with their own business to form a video application industry chain.

Video technology: With the continuous advancement of science and technology, the technology of the video industry is also constantly updated and developed.

Video compression technology: High-efficiency video coding technologies such as H.264, H.265, etc., can make video files occupy smaller storage space under the premise of ensuring picture quality, thereby improving video transmission efficiency.
Ultra-high-definition video technology: 4K, 8K and other ultra-high-definition video technologies are gradually being popularized and applied, which puts forward higher requirements for video resolution and picture quality.
Virtual reality (VR) technology: VR technology allows viewers to experience video content immersively, bringing viewers a richer visual experience.

Video market size: The video industry has a huge market size, and the value of market size varies according to different data sources and statistical methods. However, in general, with the development of the Internet and mobile Internet, the scale of the video market has shown a rapid growth trend.

According to iResearch, the size of China's online video market reached RMB158.1 billion in 2019, a year-on-year increase of 37.3%.
According to the Prospective Industry Research Institute, the number of online video users in China reached 748 million in 2019, a year-on-year increase of 7.5%.

Video industry competition pattern: The video industry is highly competitive, and there are many companies in the market to compete.

In terms of online video platforms, the top online video platforms in the market are those owned by large Internet companies such as China Mobile Migu, iQiyi, Tencent Video, and Youku.
In terms of online long video platforms, the top players in the market are online long video platforms owned by operators such as China Mobile Migu, China Unicom Wo Music, and China Telecom Tianyi Video.
In terms of short video platforms, the top few short video platforms in the market are Douyin, Kuaishou and so on.

Future trends: With the continuous advancement of technology and the continuous changes in the market, the video industry will present the following trends in the future:

The market will continue to expand, and with the development of the Internet and mobile Internet, more and more people will choose to watch video content online.
Technological innovation will continue to promote the development of the industry, and in the future, more new technologies such as AI, VR, AR, etc. will be combined with the video industry to bring a richer visual experience to the audience.
Content innovation will be at the heart of the competition, and excellent original content will be the key to attracting users across platforms.
Security issues will be paid more attention, and as the network environment becomes more complex and changeable, network security issues will receive more and more attention.

Industry characteristics analysis

The video industry is a rapidly developing industry, with the development of the Internet and mobile Internet, more and more people choose to watch video content online, and the market size continues to expand.
The video industry is a technology-intensive industry, involving video compression, encoding, decoding, transmission, storage and other links, and it is necessary to continuously introduce new technologies and products to improve user experience and increase market competitiveness.
The video industry is an industry where content is king, and excellent original content is the key to attracting users, and it is necessary to continuously strengthen content innovation and quality improvement.
The video industry is a highly competitive industry, with many companies competing in the market and needing to continuously improve their core competencies to succeed.
The video industry is an industry that is greatly affected by policies, and changes in policies and regulations have an important impact on the development of the industry, and it is necessary to strengthen the connection and guidance with policies and regulations.
The video industry is an industry that is greatly affected by technological development, and the emergence of new technologies and new products often changes users' behavior habits and market pattern, and it is necessary to pay close attention to technological development trends and make corresponding adjustments.
The video industry is an industry with great social and cultural influence, and audiences in different regions, ages, income levels and social classes have different needs and preferences for video content, and need to respect local cultural habits and market rules to meet the diversified needs of users.

Industry market analysis

Market size: The video industry has a huge market size and shows a rapid growth trend. Depending on the data source and statistical method, the value of the market size varies. However, in general, with the development of the Internet and mobile Internet, the scale of the video market has shown a rapid growth trend.
User scale: With the development of the Internet and mobile Internet, more and more people choose to watch video content online, and the scale of video users continues to expand. Depending on the data source and statistical method, the size of video users also varies. But overall, the number of video users is still growing.
Market competition: The video industry is highly competitive, and there are many companies in the market to compete. In terms of online video platforms, the top few in the market are online video platforms owned by large Internet companies such as China Mobile Migu, iQiyi, Tencent Video, and Youku. In terms of online long video platforms, the top players in the market are online long video platforms owned by operators such as China Mobile Migu, China Unicom WoMusic, and China Telecom Tianyi Video. In terms of short video platforms, the top few short video platforms in the market are Douyin, Kuaishou and so on.
Business model and profitability: The main business models of the video industry include advertising revenue, paid membership, e-commerce, etc. Among them, advertising revenue is the most important source of revenue, followed by paid membership and e-commerce revenue. With the growth of user scale and the expansion of the advertising market, the profitability of the video industry is also increasing.
Development trend: With the continuous advancement of science and technology and the continuous change of the market, the video industry will present the following trends in the future: the market scale will continue to expand, and with the development of the Internet and mobile Internet, more and more people will choose to watch video content online; Technological innovation will continue to promote the development of the industry, and in the future, more new technologies such as AI, VR, AR, etc. will be combined with the video industry to bring a richer visual experience to the audience; Content innovation will become the core of competition, and excellent original content will become the key to attracting users on various platforms; Security issues will be paid more attention, and as the network environment becomes more complex and changeable, network security issues will receive more and more attention.

Industry life cycle analysis

Introduction period (rise period): The video industry has emerged with the development of the Internet and mobile Internet. At the beginning, the video industry was mainly composed of some pure tool applications specializing in making GIF images, which gradually transformed into short video communities and began to appear in the market. This stage is the embryonic period of the video industry and has not formed a market size.
Growth period: With the continuous development and popularization of Internet technology, the video industry has begun to develop rapidly. Many products began to emerge, including various online video platforms, long video platforms, short video platforms, etc. At this stage, the market competition is fierce, and the product must have its own bright characteristics in order to attract a large number of loyal users. At the same time, user needs have also begun to diversify, and different user groups have different usage habits and needs.
Maturity: With the rapid development of the video industry, the market is gradually saturated. All kinds of video products already have a large number of loyal users, and the market competition has become extremely fierce. At this stage, the product needs to be accurately positioned according to user needs and seek a breakthrough in development. If the user's needs are not refined and selective, the product will become particularly bloated, which will not only affect the user's experience of using the product, but also the product will be very troublesome in the process of seeking the same friend.
Recession: During the decline period of the video industry, the market competition is more intense, and products need to be constantly innovated and upgraded to meet the needs of users. Some backward products will be phased out, while some excellent products will continue to develop and become market leaders. At the same time, changes in policies and regulations, the impact of technological development, and social and cultural factors will also have an important impact on the development of the video industry.

Industry profitability analysis

Advertising revenue: One of the main monetization models in the video industry is through advertising. Video platforms make money by providing advertising space to businesses, taking a cut of it. These ads can be an in-stream video from a short video or a small ad. These ads are often an annoyance for users, but for video platforms, they are a valuable earning opportunity. Through advertising, video platforms can provide users with more free content and services, while increasing their own profits. Therefore, advertising revenue is one of the important sources of profit for the video industry.
Paid membership revenue: Video platforms usually launch a membership system, where users can pay to become a member and enjoy more benefits and services, such as de-advertising, HD picture quality, exclusive dramas, etc. Through the paid membership system, video platforms can further increase their own profits.
Copyright revenue: Video platforms can earn income by selling copyrights. Some popular TV series, movies, variety shows, etc. may require payment to watch, or can only watch free content for a specific period of time. Video platforms can earn revenue by selling the rights to these contents.
E-commerce revenue: Video platforms can also increase revenue by introducing e-commerce platforms. For example, if you insert product recommendations in a video or directly open an e-commerce store to sell products, users can directly purchase products on the video platform and enjoy home delivery services. This approach can both generate revenue for video platforms and meet users' shopping needs.
Other revenue: In addition to the above common ways to monetize, video platforms can also increase revenue through live streaming, social interaction, offline events, etc. For example, live streaming platforms can earn revenue by sharing with anchors, social platforms can obtain revenue through users' interactive behavior, and offline activities can obtain revenue through tickets, peripheral products, etc.

Core competitiveness analysis

Video quality and stability: The basic competitiveness of video streaming is to provide high-quality video and stable streaming services. Users prefer platforms that offer high-definition, smooth video and stable services. This is the core reason why major video platforms are working on optimizing encoding algorithms, network transmission, and CDN distribution.
Short video content innovation: For short video operations, content innovation is the core competitiveness. High-quality, interesting, and innovative content attracts users and increases the popularity of the platform. At the same time, this requires the platform to constantly update and improve the content to meet the needs of users and attract new users.
Align with brand image: The content of short videos needs to match the basic image of the brand. By organically combining different promotion methods and continuous innovation, short videos should strive to create an image with brand characteristics to attract more users.
Technological innovation: With the continuous advancement of science and technology and the continuous changes in the market, technological innovation is also an important competitiveness of the video industry. For example, new technologies such as virtual reality (VR), augmented reality (AR), and artificial intelligence (AI) are being applied to the video industry to bring users a richer visual experience.
User experience: User experience is also one of the core competencies of video platforms. Platforms need to provide quality services such as simple and easy-to-use interfaces, fast loading speeds, and no or less ads to increase user satisfaction and loyalty.
Community and user interaction: Community and user interaction are important factors for video platforms. The platform needs to provide interesting and diverse social features, such as comments, likes, shares, etc., to increase user engagement and stickiness.

Leading enterprise in the industry

Hikvision (002415) is a leading enterprise in China's video surveillance industry, its business covers the production and sales of video surveillance equipment, as well as the research and development and sales of related software. Hikvision continues to expand its share of the global video surveillance market, and its products and services have covered more than 150 countries and regions around the world.
Dahua Co., Ltd. (002236) is also a leading enterprise in China's video surveillance industry, its main business includes the production and sales of video surveillance equipment, the provision of intelligent security solutions, and related software development and sales. Dahua has continued to invest in technological innovation and launched a series of security products with independent intellectual property rights.
Hanbang Hi-Tech (300449) focuses on the field of security monitoring, and its products cover video surveillance equipment, intelligent access control systems, network transmission equipment, etc. Hanbang Hi-Tech has strong R&D strength and technical advantages in digital image processing, intelligent video analysis, network transmission technology, etc.