OTT's 6-year contract, meticulous in 2015, unique

At the end of March of the same year, Hua Digital Media was approved by the SARFT to build an integrated broadcast and control platform for Internet TV.

After that, Hua Digital Media signed strategic cooperation agreements with TCL and Changhong in April including technology and content. At the end of April, Hua Digital Media also reached a strategic cooperation agreement with Skyworth to jointly strive for the healthy development of China's Internet TV industry and the operation of business models. In June, Huada teamed up with TCL and Changhong to upgrade the Internet TV content platform. The upgraded Internet TV content service will be completely provided by Hua Su, and will continue to provide services for more new buyers.

In July, Guangzhou Huaneng Technology Co., Ltd., a joint venture between Hua Digital Media and Changhong and TCL, formed a joint venture company of the Internet TV business, Hua Digital Television. Among them, Hua Shu is responsible for video content, and Huan Wang focuses on business development. Reasonable division of labor and joint operation. In August, Hua Digital Media Haier jointly launched the first-to-market analog card LED TV products.

Through five months, Hua Digital Media has paved the way for the development of Internet TV. After a lot of cooperation was ready, China Digital Media's Internet TV integrated broadcasting platform officially passed acceptance in August and got an OTT license.

2011: One-year period, set-top box has become another focus of Hua Digital Media

In 2011, the key cooperation of Hua Digital Media this year was not only at home, but also extended to all parts of the country. In the international market, on January 17, Huadian and LG Electronics reached a consensus on strategic cooperation and the two sides will jointly develop the domestic smart TV market. On March 29, Huada and Sony signed a cooperation agreement, and Huada will provide Sony Internet TV. Content services, Sony officially entered the domestic Internet TV market.

On the other hand, Hua Digital Media has aggressively attacked set-top boxes. In July, Huadian and Baidu reached a strategic cooperation agreement, and the two sides will carry out strategic cooperation in the fields of interactive television and Internet television. Baidu will first embed Baidu search in digital TV set-top boxes and Internet TV broadcast control platforms operated by China. On December 20th, Hua Shu convened nearly 200 people from national Internet TV manufacturers and Internet TV chip manufacturers to discuss the development and cooperation of the Internet TV set-top box industry.

In terms of games, Hua Digital Media signed a strategic cooperation agreement with Shanda Networks in August. Both parties jointly funded the establishment of a joint venture company. The two new joint venture subsidiaries will be dedicated to the dissemination and distribution of derivative content such as games and literature.

2012: Starting to Deploy Cloud Services and OTT Content

On January 11th, PPTV Network TV and Hua Digital TV Media Group announced that they will form a comprehensive strategic partnership in the development and application of new media business to jointly develop China's Internet TV and STB market. On May 10th, China Digital TV launched a new application of TV Weibo, and it will be able to directly log in to Weibo on the China Internet TV page. In September, China Telecom opened a TV Alipay.

In addition to the above-mentioned introduction of new boxes and applications, WCDMA Media has begun to force content and cloud services. At the end of June, Huazhe TV's major investment in "Painting 2" was released in the summer session. In addition, several operas including "Qingzhong Yue Fei" had Huadian Investment. On September 19, Huada held a new cloud broadband conference and officially launched cloud broadband services to the public.

This year, Hua Digital Media has mainly resolved two major policy risks:

1) The risk of changes in industry regulatory policies

The relevant national departments have formulated a series of policies for the integration of the three networks. With the deepening of the reform of China's cultural industry and the development of social information, the listed companies may face the risk of changes in industry management policies in the future.

2) Price Policy Risk

According to Article 3 of the National Development and Reform Commission and the State Administration of Radio, Film and Television, [2004] No. 2787 Interim Measures for the Administration of the Maintenance of Cable TV Basic Maintenance Maintenance Fees, “The cable TV basic viewing and maintenance fee is subject to government pricing, and The competent pricing department shall formulate." At that time, Hua Digital Media, based on the relevant documents of the Price Bureaus, implemented the corresponding charging standards for basic digital TV viewing and maintenance fees. If the relevant fee standard changes, the profitability of Hua Digital Media will change accordingly.

As for the above two major policy risks, Hua Digital Media strengthens policy research on the one hand, and on the other hand, it continues to manage innovation, technological innovation, and market innovation to improve service capabilities and service quality, and develop new business models based on market changes and user needs. To better tap the market potential, expand the scale of users, increase business income and profits, and improve the ability to respond to risks.

In addition, this year, Hua Digital Media has mainly solved the operational risks of emerging businesses such as Internet TV:

With the development of the Internet, the traditional digital TV services are facing more and more competition in IPTV and Internet video, causing users to lose traffic. In addition, China Mobile’s mobile TV service and Internet TV service were new industries at that time. The market structure and business model of the company were not yet fully formed, and there was a certain degree of uncertainty in the development of the business.

Regarding this, Hua Digital Media has taken the overall guiding ideology of "trans-generational networks, cloud services, full-service, and multi-terminal development" as its overall guiding principle for the rapid and coordinated growth of the "new network" and "new media" businesses.

On the one hand, Hua Digital Media actively improves the cross-generation network upgrade and reconstruction of Hangzhou Ben Wang, completes high-definition popularization work, comprehensively enhances the customer service quality and user experience of the site, and guarantees the basic wired digital network in an increasingly fierce competitive environment. TV users' stability and development.

On the other hand, Hua Digital Media vigorously promoted the implementation of "cloud media and cloud services" in Hangzhou, Zhejiang, and even the whole country, and improved the core competitiveness of the major product lines of interactive TV, Internet TV, mobile TV, and Internet video, and further improved. Users experience, expand various business channels, rapidly expand the scale of users, and actively explore new modes of advertising charges.

This year, Hua Digital Media has developed four new products and technologies:

1) Cloud Media Service Platform Construction

Based on the cloud storage technology, Huadian Media's existing interactive TV center business platform is upgraded and upgraded. For high-definition interactive set-top boxes, new services such as nPVR and cloud disk are provided in addition to existing interactive on-demand and time-shifting services. The entire platform is in 2012. The year has completed the overall system development, installation and deployment, joint debugging test;

2) Construction of a converged advertising operation platform

Build a unified advertising business management platform and connect with the advertising capability system of interactive TV, Internet TV, Internet video and other business platforms, and overall manage the advertising resources and advertising strategies of each platform. The entire platform has been completed in 2012. System development, installation and deployment, and joint debugging tests. In 2012, the company completed the connection with the interactive TV and Internet video service platform and went online.

3) Phase I of cloud infrastructure construction

Based on the IAAS service model, through the establishment of a virtualization platform for storage, databases, and servers, private cloud services are provided for the internal business platform of Hua Digital Media, which allows for unified construction and on-demand distribution of storage and computing resources to reduce investment costs and improve construction. For efficiency and other purposes, the construction of the first phase of the system has been completed in 2012;

4) Unified Production System Construction (Phase I and II)

The system adopts full life cycle management of integrated materials, realizes hardware transcoder integration with different interface standards, and adopts media distribution adaptation technology based on configurable business strategies. After the system is online, it can be an interactive TV service of Hua Digital Media. , Internet TV services, Internet video services, and mobile TV services provide unified content production and distribution, which lays a content foundation for the subsequent development of multi-screen and converged services, and provides content production for Internet TV and Internet video services, increasing interactions. Content production of TV H.264 content and mobile TV.

2013: In-depth layout of the OTT full- scale industrial chain, the introduction of a new model for DVB and OTT <br> In this year, Hua Digital Media realized an operating income of RMB 180,118,800, an increase of RMB 250,242,200 over the previous period, a year-on-year increase of 16.13% and an operating cost of 100596.49 Ten thousand yuan, an increase of 122.5211 million yuan over the previous period, an increase of 13.87%.

In 2013, Hua Digital Media began to deepen its layout of the OTT industry chain. On July 23rd, Huadi Media and Alibaba.com launched the first generation of box products with Ali's intelligent tv operating system, the Huaqiao Rainbow Box, to provide users with a new smart lifestyle. In September, Huada, Ali, and Chichi launched a complete smart cloud TV integrated machine solution to achieve a one-stop implementation of "live TV viewing, interactive on-demand, Internet video, online shopping" and other applications.

At the end of December, Hua Digital Media and its partners held a signing ceremony for an open solution for the OTT industry chain and launched a new model for cooperation with the radio and television network. Huawei does not need to provide set-top boxes. The business model is to provide OTT service platforms and content, and to provide streaming service capabilities; Radio and TV Networks purchases set-top boxes and provides DVB services on its own. DVB service revenue belongs to the wide grid road, in the value-added OTT business. , Huadian and Radio and Television Networks are divided into 6:4. If you need to provide set-top boxes, the business model is: within 3 years, according to the number of Chinese, according to each household 8 yuan per month to collect the set-top box fees to users, while the number of China to provide OTT service platform, content and streaming service capabilities, in the OTT business , Hua number and radio and television network are divided according to 7:3.

This year, Hua Digital Media also mainly resolved the above two major policy risks and a major business risk.

This year, Hua Digital Media has developed four new products and technologies:

1) The establishment of the open system for "Huawei TV" TV series

The platform showcases the contents of public service, “three services” (party affairs, village/residential affairs, finance) and other relevant contents. The entire system platform was completed in January 2013 until June 2013, and the information content covered the entire Hangzhou area.

2) The construction of digital community service platform based on digital television

The platform takes the overall direction of community administration services, community property management services, people's livelihood services, and community organization services as the overall goals, and realizes the unified storage and management of traditional classified data and community business data.

3) Multi-screen content aggregation search platform construction

The platform will fully integrate the existing HUAQI video resources, user-centric, integrate the content provider's Internet resources, and provide video content data for the HUAWEI (TV, PC, mobile client, etc.) terminal business, search and provide video content data And search services.

4) 2013 Unified Production System Optimization and Capacity Expansion

The unified production system implements hardware transcoder integration with different interface standards, adopts media distribution adaptation technology based on configurable business strategies, expands system capacity, and optimizes content storage after capacity optimization, resulting in improved productivity and production efficiency.

2014: Ma Yun shares, Hua Digital Media takes a big step

In the first half of 2014, under the guidance of the development strategy of “inter-generational networks and cloud services”, Huada Media’s “new media” and “new network” business continued to develop rapidly and soundly. In the first half of 2014, operating income was 1141.557 million yuan, an increase of 263,759,300 yuan over the same period of last year, an increase of 29.90% year-on-year, and achieved good economic benefits.

On April 8, Ma Yun and Shi Yuzhu spent 6.536 billion yuan to subscribe for 287 million shares of Wanda Media’s non-public offering of shares, which accounted for 20% of the total number of shares of the company after the issuance. WCDMA Media will issue 287 million shares to a specific target, the Yunxi Investment Partnership (Limited Partnership) in Hangzhou. The issue price will be RMB 22.80 per share and the total amount of funds raised will be RMB 6.536 billion, all of which will be subscribed by Yunxi Investment in cash.

On April 28, Hua Digital Media and Alipay announced the launch of Internet TV payment cooperation. Users can quickly complete TV payment within 3 seconds and enjoy instant online video, games and education.

This service will gradually cover the 25 million Internet TVs that use Huada Services, including Hisense, Haier, TCL, LG, and SONY.

On November 18th, more than 150 partners in the upstream and downstream industries of the China Internet and television industry chain gathered in Hangzhou, and released the latest China ZTE Internet TV ZERO version, as well as the Huada Internet TV ecological win-win plan. On the same day, Hua Digital Media also proposed to build an upstream content ecosystem and establish a billion-dollar content procurement and investment plan, which will be vigorously implemented in 15 years. In the future, based on the coverage of full-range content categories such as film and television drama, animation, music, variety and sports, the combination of external procurement and internal self-made creation will continue to consolidate and strengthen the company’s advantages in the content field, and once funds are put into the content No doubt, he will undoubtedly promote the status of King Wah in terms of content.

For China Digital Media, the OTT policy oversight in 2014 is an important factor in its development. Regarding the policy aspect, President Lai Yiqing of Hua Digital Media made public response for the first time at the end of the year. Lai believes that as the OTT licensees and content service providers, WCDMA Media not only has to connect with the Internet, but also has to further strengthen checks, screenings, and guarantees to provide healthy, safe and sustainable content and service products.

Coincidentally, Huadian Media’s general manager of the Internet Division, Excellence, said in an interview with DVBCN reporters that the supervision of the General Administration of Electric Power is not actually a reshuffle of the industry. In his view, there are some unregulated operations and malicious competition in the entire OTT industry. The behavior of the entire OTT market is not very normative. The so-called reshuffle is actually more of an orderly process of returning some of the OTT industry's unordered behavior. The supervision of the General Administration of Development provides the development of the entire industry. A kind of protection. Regarding a series of policies of the General Administration of Administration, Hua number is also very much understood and supported, and it is also being implemented in practice.

In this year, the advantages of copyright resources and content services accumulated by Hua Digital Media are very full: Hua Digital Media has a huge amount of copyrighted program resources, and it absorbs more than 100 well-known program content providers and many ordinary program content providers at home and abroad. Participate in the construction of program content cooperation system, with a million hours of digital program content media resource library, including movies, television dramas, comprehensive information programs, entertainment variety shows, original animation programs and music programs and so on. The strong media resources reserve lays the foundation for long-term cooperation with operators and terminal manufacturers, and provides users with powerful viewing guarantees.

2015: Creating a New Chinese Number Model

For the past several years, WCDMA Media has been devoting itself to the development strategy of "new network and new media". Currently, it has accumulated 50 million sets of smart TV terminals and accumulated a large amount of data on demand for Internet TV users.

In 2015, Huada will use user big data as a basis to build users' forward-to-pay, post-entry advertising revenues, application value-added revenue sharing, and troika to go hand in hand to jointly create the era of Hua Digital Internet TV operation.

In 2015, Hua Digital Media will continue to invest 1.2 billion yuan to establish a copyright fund and use various methods to establish and enrich original content pools. For example, Hua Digital will create a copyright alliance for the entire content and conduct business cooperation by means of equity investment.

In the future, Hua Digital Media will work together with its partners, emphasizing the professional division of labor in the industry chain, sharing value, breaking the bottleneck of internet TV revenue, and creating a brand new model for the Internet TV industry.