Facts have proved that Boss Huang’s proposal is very effective. As he continues to promote it through evaluation on the Internet, Google’s mobile phone itself has been released one step earlier and has the advantage of first-mover, so he has always been on Apple phones.

So unlike later when Apple was ahead of the smartphone industry, after the release of Apple's phones in this world, it has been suppressed. Google is completely suppressing Apple's output, especially Apple believes that its phones are much stronger than the other party in terms of system, functionality and hardware, but in terms of publicity, it is actually not as good as Google. How can it stand this? My father can tolerate it and my mother can't bear it.

Isn't it just a review? We don't know whether it is ourselves?

So Apple quickly joined the battle and began to invite these video bloggers to evaluate their phones and then promote them. So it started a money-burning battle between Google and Apple on video websites.

That's right, it's a money-burning war.

It costs money to place advertisements on video websites.

In early 2007, Los Gaitu and Netflix had basically occupied 80% of the market for all video websites. As for the remaining 20%, this is the market for oil pipes... In fact, this market was specially given up by Jiangnan Group. Otherwise, Jiangnan Group would dominate the entire video website market, so it would have to wait for an anti-monopoly investigation.

As for why these two websites can dominate the world, it is naturally due to the low operating costs of Jiangnan Group.

The storage servers of Jiangnan Group have developed to the fourth generation, with the cost of each main server being only about US$1,200 and the selling price is US$12,000. But even at a price of 10 times, it is still about half the price compared to other brands of equivalent performance servers. This makes Jiangnan Group's servers have no competitors at all, and have almost dominated the entire storage server industry.

Even competitors that are not in opposition to Jiangnan Group can only grit their teeth and buy Jiangnan Group's storage servers, otherwise the operating costs will be doubled directly, and no capitalist can withstand such a price and cost gap.

It is worth mentioning that the server price sold by Jiangnan Group to its own video website is the same as the market price, at US$12,000 per unit.

However, Los Gaitu and Netflix are particularly willing to spend money, and almost every year they invest more than US$3 billion to purchase servers from Jiangnan Group to expand their website capacity.

Such a terrifying investment naturally makes the service quality and user experience of the two video websites, Los Gaitu and Netflix, far surpass other video websites.

When the videos provided by the oil pipe are generally clear at 270P, Los Gaitou and Netflix have been able to provide users with an average of 480P. If their network speed can be supported, they can even watch 720P video services.

Moreover, the video size limit is less than 500MB, but the limit of the oil pipe is a pitiful 100MB. In addition, each ordinary account has only a maximum video capacity limit of 1G. At the same time, if no one watches the video, the video will be automatically deleted and other means to save your own server capacity.

These methods can help YouTube save server costs greatly, but also make the user experience and viewing experience of YouTube extremely bad. Compared with Los Gaitou and Netflix, it is a completely devastating experience, so these two video websites naturally easily occupy almost all the video markets.

The reason why YouTube still has 20% of the market is that the two video websites, Los Gaitou and Netflix, review the videos published by creators. Some videos with low quality content or videos that are prone to disputes will be reviewed and will not be uploaded. In order to survive, YouTube naturally can only accommodate all the videos that Los Gaitou and Netflix don't want, and as the capital to survive, it occupied the remaining 20% ​​of the matter.

However, this later caused a lot of trouble to the oil pipe, making the oil pipe a gathering place for network garbage.

By the way, one thing that must be explained is that with the different restrictions on video content in different countries, most free Western countries, those low-level and ugly videos with color in China, are legal videos in other countries, and are also key videos for protection and struggle for Los Gaitu and Netflix, and are even key videos for publicity. This part of the matter has been approved and can upload 1080P videos to the website, which is definitely the top stream supported by the website.

Ahem, it’s a bit far from it. As the number of users of the two video websites continues to increase, how the website makes a profit has become a big problem.

Therefore, both websites have a membership system, but in order to maintain the market share of the website, the membership systems of these two websites are both a dual-track system.

Among them, members can watch high-quality content on the website, namely TV series, movies, MVs, etc., high-quality content created by various cultural companies that require members to watch.

If any content uploaded by ordinary users and created by themselves can be viewed for free, this way to attract more users to the website.

But there are always fewer high-quality content in this world, and the various content created by users themselves is huge. The 3 billion server procurement costs spent by these two websites mentioned earlier, of which 2.9 billion are used to deal with the content uploaded by these users themselves.

In this way, the income brought by members cannot fill the website's expenditure costs. You should know that these two websites have to pay Jiangnan servers a normal procurement fee of US$6 billion every year.

But these two websites do not have 6 billion US dollars in funds at all, and Boss Huang cannot invest in these two websites indefinitely, so these two websites can only borrow from Jiangnan Group through loans. At present, they each owe more than 5 billion US dollars in loans from Jiangnan Group, so if you make a profit and pay off your debt, it has become the top priority for these two companies.

Then it is natural that advertising becomes the most effective means.

I won’t talk about the patch advertisements in the first 15 seconds and the middle 15 seconds of the video. This is a routine operation, but the advertising revenue earned is limited after all.

So in early 2007, the two websites announced their own creator incentive plans almost at the same time, in the name of a plan to give cash incentives to all creators who upload videos on the website.

That is, a cash reward is given based on the traffic and clicks of the creator's video.

Some people may find it strange. Isn’t this more expensive and increases operating costs?
Chapter completed!