Three major reasons lead to collective exchange of blood for PPTV management

On the afternoon of November 24, news from the industry said that PPTV CEO Lu Yan and several senior executives will leave, and Suning will send senior executives to fully host the company's daily operations. With regard to the rumor, PPTV Public Relations said that it was unaware of it, but after we learned more about it, we learned that the rumors were true. At the same time, this is the third time that PPTV has replaced the management including the CEO within one year after its acquisition.
In October 2013, Suning had announced that it would jointly invest 420 million U.S. dollars in shares in PPTV with Legend Holdings, of which Suning would become the largest shareholder of PPTV with a shareholding ratio of 44%, and Hony Capital’s holding of 29.9% as a shareholder Large shareholders.
After Suning and Lenovo joined shares in PPTV, a number of former PPTV executives, including PPTV founder and CEO Tao Tao, left the company in March of this year. Then Lenovo's senior management team, Lu Yan, became PPTV CEO. With the personnel adjustments, many associates Department executives airborne PPTV. We have learned that Suning executives will gradually take over the original Lenovo executives and take charge of the daily operations of PPTV.
What happened in the company during the year when PPTV was acquired led to three replacements of management? After we had exchanges with many insiders, the following three important reasons resulted in the collective exchange of blood for the management of PPTV:
1. Softbank’s eagerness to withdraw from the PPTV market has been deliberately exaggerated. The reason why the PPTV was initially acquired by Suning was mainly due to the withdrawal of Softbank, an investor at the time, to retire. Therefore, many data indicators and market prospects were too large for the painting of Suning, which led to rush Suning flexing his muscles in the area of ​​e-commerce is overly optimistic about the development of PPTV and even China's online video industry. With the completion of the transaction at that time, Softbank completed its cash out task.
A former PPTV executive told us that the cash flow of PPTV before Suning’s shareholding has been tight for a long time. Before the acquisition, both Softbank and PPTV have deliberately described the competition prospects in the online video field and many data, and for Suning On the other hand, due to insufficient understanding of the Internet and video fields, the KPIs established after the acquisition of PPTV were too aggressive.
2, and Suning integration process fell short of expectations <br> addition too aggressively developed KPI, the terms of the Suning PPTV other main reason is too much emphasis on just one year's management twice big shake. According to informed sources, Suning attaches great importance to the development of the Internet, especially e-commerce, and has made the e-commerce business one of the core strategies that needs to be cultivated in the next decade. And Sun Weimin, vice chairman of Suning, had also made internal suggestions on PPTV content in the acquisition of PPTV and accelerated the integration of e-commerce and video to accelerate the progress of Suning to become Amazon in China.

Although Suning has attached great importance to PPTV, due to the accelerated competition in the video industry and the weak foundation of PPTV as an independent video site, the integration with Suning, the development speed of the built-in terminal area, etc. have not only failed to reach Suning's The demand is even more distant from Suning's vision. In addition, as far as PPTV is concerned, the resource advantages that Suning has accumulated in traditional areas cannot help PPTV grow in the increasingly competitive video industry.

3, Radio and television New Deal led to frustration of the terminal strategy

In Suning, the original plan was to acquire the key links of the two Internet companies by acquiring Red Kids and PPTV. In the original planning, video terminal equipment was a key product. As early as the end of 2013, PPTV had already introduced a number of OTT products. However, with the strict supervision of the new radio and television administration for video terminals this year, the original The strategy of focusing on the development of OOT was defeated.

"For video sites like Youku and iQiyi, you can see that although the supervision of video terminal equipment such as set-top boxes has had an adverse impact on them, it is quickly adjusted and it can be said that OTT may be a key business for these companies. However, it is definitely not the only core business that needs to be developed, but this is not the case for PPTV. According to informed sources, PPTV's response to the regulation of radio and television has been slow, resulting in a disadvantage in the competition in the video industry. These reasons led to two changes in the management of PPTV.

Conclusion <br> According to informed sources to us, PPTV the OTT sector had already been laid off, and as executives stationed Suning, large-scale layoffs have spread internally, in terms of today's online video in the field, PPTV has become a supporting role. For Suning, who is eager to become the Amazon of China, what is the value of PPTV?

Will PPTV help Suning realize the e-commerce + video strategic goals in the future? It will determine the future survival of PPTV. At present, regardless of Suning's use of video and e-commerce services to build China’s Amazon or PPTV, it is unlikely that PPTV will lay a separate space in China’s online video industry.