What does Li Ruigang say to investors? Media Deconstruction, Reconstruction and Feelings

Secretary of the Party Committee and President of Shanghai Wenguang Group and Chairman of BesTV Li Ruigang

Good morning, ladies and gentlemen, I am very happy to be here today to discuss the merger of our two listed companies and the new future. I am standing here today and there are actually many words of gratitude to say... I believe that this concern and support is not only the concern and expectation of the two listed companies, not only the future of the new company after the reorganization, but also more important. It is the concern and expectation of the entire industry that has shouldered the mission of our cultural industry. As a participant in this industry, this gratitude is sincere.

Born out of time

Yesterday when I was preparing an outline for today’s speech in my office, I suddenly remembered that today’s 2014 is my 20th year of formal work for my job. I graduated from the School of Journalism at Fudan University in 1991. I am a graduate student. In 1994 I left graduate school of journalism at Fudan University. My first job was to be a television program director on Shanghai TV. It took more than 20 years, and I suddenly remembered the time passing. I remembered me 20 years ago. In 1994, I had not left the campus.

At the time of school, I was still doing my thesis. I read the journalism major, but my postgraduate research was a very cold business, the history of Chinese news, and the history of research news. At that time, I still remember today in Xujiahui's library building, reading through old magazines from the old period of the Republic of China. I can still clearly remember the scenes of that time today, and look through those old yellow newspaper newspapers. The breath of that old ink seems to be still between my breath. I had a wonderful feeling at that time. I thought that this history was scented. This history can be heard. You can smell through the old newspapers and newspapers. The kind of historical vicissitudes, you can Smell it out, smell the long-term warmth of history, and you can also smell the bloody rain in the middle of history. In the midst of this odor I had a sense of sacredness at the time. I felt like I was a young man about to move to work. In the future I might be like all my seniors in this pile of old paper piles. We are talking about iron. The shoulders are morally good and they have wonderful articles. To become a successor of journalism, this newsprint business can flourish.

But history is such a wonderful or historical one that makes you think that forever is beyond our ordinary people's thinking. Twenty years later, when I stood here today to share my thoughts on the media and the understanding of the media, and when everyone has driven this revolution in the media industry, the media environment around us has undergone such drastic changes.

The environment of the media that we originally depended on, all of which are in the process of rapid changes. Sometimes you feel like you were born out of date for a news person. But sometimes you also feel that it is alive. Because of this tremendous change, while giving us pressure and challenges, it also forces you to think and force your actions.

So after I finished this story, I was thinking that my personal growth experience, this 20-year growth experience, in fact, represents an industry and an industry. It bid farewell to the past and it turns around at this moment. A mirror.
Well, back to our topic, today we are reorganizing the two major listed companies. This is a major asset restructuring. I think before I talk about a lot of specific topics, I still want to broaden our business to see what we have today. Faced with the media's ecological environment, or that we come back to recognize our media environment.

The infrastructure of traditional media is being rapidly deconstructed

The first point I want to make is that the traditional media industry’s production methods, modes of organization, and consumption methods are being rapidly deconstructed and restructured.

The biggest problem facing the media industry today is that what we call these traditional media organizations and traditional media people are the problems. The basic infrastructure infrastructure that we are based on is being quickly deconstructed, or Quickly overturned. The paper media on which traditional newsprint relies, the channel for distribution; the wireless-to-wireline-to-satellite approach that radio and television rely on, and the broadcast-style approach; many of the original conventional methods of film distribution channels... These support the development of the entire news industry. The entire infrastructure has been restructured by the Internet.

This deconstruction was first caused by the change in the mode of transmission. Broadcasting became a network of point-to-point things. Then our consumption patterns have also changed because the appearance of various mid-ends has also changed, from the downstream ones. Changes in turn have affected the changes in our production methods. Today, we talked a lot about the middle of this industry in numerous forums and speeches, but I would like to remind everyone here today that the way of organizing news is facing changes. The organizational style of the traditional media industry is about to undergo greater changes.

The traditional way of organizing the media industry is the individual media. It is a unity with the media organization. Therefore, it is a limited organization method. It is a sense of belonging organization. Today, the mobile Internet will release these media people from its existing organization and deconstruct it. Through the new mobile internet approach, these media people will be restructured to form a new type of mobile Internet and mobile Internet new media. This will be a new challenge that we face in the future. This change is extremely profound. And we are only in the midst of the transition of this changing threshold. The influence and subversive power of this change in the future for the entire industry. Today we just feel its temperature, its heat, and its heat is being emitted to us. For us today, the problems we face are unavoidable: We, SMG, as a controlling shareholder, or the controlling shareholders, the following two listed companies. Essentially we are the starting point of our tradition. The media, we are different from BAT, we are traditional media.

All of the traditional media are today in China, far away in the United States, and still in Europe. Everyone today has said that it has been said for years. The birth of the Internet is all about the transformation of traditional media and the integration of traditional media with new media. But this road is actually not that simple. What is the problem here? This is back to what I said earlier. When our infrastructure infrastructure is overturned and destroyed, what do we have left? We There is only one card left in the hand, which is the content. We are still an original content creator, but even if this card is a content originator, we still face enormous threats and challenges because, theoretically, we are only one of the innumerable content creators on the Internet. There are more powerful organizations, a branded organization, and an authoritative organization. However, countless individuals are also creating content, competing with us and dispersing our traffic and attention.

Therefore, for such a traditional media organization that uses content as a gene, it is a difficult problem that has caused it to change. This is a difficult problem for the world. Everyone is cracking it.

In the past two weeks, I have also had the privilege of communicating with many of our overseas counterparts. In the previous week, I spent less than two weeks in the past week participating in an awards event in Silicon Valley. I met Rupert Murdoch who hadn’t seen it in years at the meeting. The next day I also met with Warner Bros.’s new CEO Kevin Vin Tsujihara in Los Angeles. Just this past week in Beijing and Shanghai, I met the international media again. Or two very interesting competitors in this industry. I met NBC CEO Beren Robert in Beijing. He came to Beijing to promote the opening of their company's office and to see their theme park in Beijing. Immediately after I met Robert Iger in Shanghai, the CEO of Disney, in fact, talked with them about the proposition that the process of long or short communication actually talks about the fact that we are actually similar and have the media of traditional content genes. How can we choose this road? This kind of mutual communication and thinking collision actually gave me a lot of inspiration, and also strengthened my belief in reorganizing the two companies today to promote a new round of SMG. I believe our path is correct.


Channel or content, who is creating the greatest value for future media?

How to choose this right path, then our current question is who is creating the future of the media's greatest value, in the end is the channel or the content? This issue has been debated all along. Today it seems that the channel is very powerful. Channels are the middle ground for all our new media today. The channels are almost at the intersection, controlling traffic and controlling all the greatest value.

I also have such a personal experience. I have talked with my colleagues many times and I said that when I went to work on the television station. Seeing that there is an Oriental Pearl TV Tower in Pudong, the signal emitted above the Oriental Pearl TV Tower is transmitted to millions of households through wireless means through cable. It completes a closed loop of our media transmission and also completes a value of media transmission. closed loop. Because people from the Oriental Pearl directly to the homes of ordinary people through wireless and wired methods, people have watched ratings, our viewing point can be replaced by our advertisements, and we can have income and profits. This is to complete a Simple closed loop. If we say that we continue to maintain this state today, then it should be said that this model of SMG actually means lying on top of the traditional model. But what is the problem today? Today's issue is from the Pearl of the Orient. The signal, up to the people’s home, there have been countless changes in the middle of the process, with many transmission channels and various transmission channels in the middle. The emergence of IPTV and telecommunications cooperation in the middle, there have been OTTsmartTV transmission through the public Internet, there are also a variety of operating agencies in the middle of the telecommunications operating agencies have mobile operating agencies, and is no longer the original One of the wireless launch agencies and the original one limited network company.

Our user's terminal has also undergone great changes. The user no longer simply sits in front of his home TV watching your TV show. He can be in the bedroom. He can be in the office. He can be on the mobile bus and can be in the subway. Inside, various ways are changing. So there is a lot of different roles among the users from the Pearl of the Orient to the point we finally reach, and this role is adjusting the entire media landscape, but we have found a phenomenon that is closer to the end of the terminal and closer to the user. Party or the controller of that interface, he has the greatest value. Whoever gets away from the user is the most valuable. This is a cruel reality for the media today. It creates a lot of media content and serves our audience. But because our closed loop of sales has been opened, there are many new roles in the middle of this transmission chain. When you do not control the terminal, do not control users, and do not control the interface, your value is greatly diluted, which is today Strong channel reason. But the interesting thing is this: The world is always dialectical and will always be a cycle.

When the channels become very large, when the transmission costs of the channels are getting lower and lower, when various terminals become more and more convenient, when the transmission modes of various channels become more similar, this time the content becomes a kind of everyone again. A resource that needs to be competed. We don't talk about whether the channel is king or the content is king today. This change is a game between each other. Strong Content High-quality content, content of the brand's content Authority It can help channels generate traffic, help channels inspire traffic, and attract traffic. In the middle of this kind of channel and content game, if you can stand on this high point, the content itself may also be a kind of intersection. The content itself can also become a powerful entrance to attract users.

SMG's Choice: Integrating Content and Channels

Fourth, then for SMG, for the new platform after the integration of our two newly-listed companies, are we actually jumping back and forth between the two ends, or do we decide to integrate? I think the vast media In the middle of the map, not every company in the traditional media can do this, but what I want to say is this: China's traditional media is also good, and the world's traditional media is also good. As a traditional medium for content genes, you can't shrink. Because you're a content gene, you feel like you can't cross it. You're going to integrate. You have to go into the middle of that channel, you have lost the channel, you have to build it up, you have to lose the platform you want to recreate it, this is our choice, maybe not every media company All can do this, not every traditional media can do it, but every country like China has a number of media groups that have to shoulder this mission. It needs to have such a starting point and there must be such a subversion. It spans both ends and becomes the creator of premium content, the integrator of premium content, the distributor of premium content, and it is also the builder of channels.

This mutual relationship, I think this is our next step in the new reorganization of listed companies must adhere to the goal, we are not simply a stagnant content in this point, this one has its own advantages. When our infrastructure structure is subverted and disintegrated, we must have our right to speak in the midst of this restructuring of the world. We must have our execution power and construct our new platforms and pathways.

Of course it's easy to say it today. In the middle of the implementation process, I and my team have been talking about this key issue, that is, you have been thinking clearly at both ends of this ecological chain you have to do, but at the end of this ecological chain your subordinates do The quest for excellence in products and applications is a goal that must be adhered to. Only if you are pursuing the best experience for the user and the user gets the best experience you can possibly have your traffic, it is possible to balance the two heads and become a strong media provider and channel integrator. So, to sum up what I want to say in the middle of my thinking process, what do I think of Internet thinking? Internet thinking For us these traditional media groups, the future is to cover the subversion and integration of content and channels.

First of all, when we talk about our entire media group today, using Internet thinking will have a brainwashing effect on all employees of our entire media group and our executives. We must have this kind of thinking to restructure our entire new listed company. Including our holding group company this platform. At the same time, we must cover these two ends. Just now I have already said that these two ends must not be neglected. These two ends must go hand in hand, and the two sides should go hand in hand, and it is not simply a continuation of the original advantages but a subversion. It is not only a strategy for the next stage of development, but also a panoramic view of the industry. I hope to share with you.

How to restructure a listed company?

Back to the specific task of reorganization of listed companies, the first thing I would like to say is the genes that are to be implanted on the Internet. Let new listed companies become the entire SMG, and the entire Shanghai culture is such a starting point for subversion and reshaping. Like the original SMG I just said, it is not a media group born of Internet technology. It is a powerful content gene. So today, we have to implant genes into this traditional media group, and let the entire SMG pull down the entire SMG's changes because of this change in the listed companies.

What is this new listed company? You can say that a listed company is a platform for capital. There is no doubt that we have more extensive access to the capital market. We have good financing capabilities and it is a capital platform.

But in the middle of my heart, I regard this new listed company as a new media platform. We use the leverage of our capital to create a new media platform. This new media platform, we hope to represent SMG. In the future, we also hope that we actively explore the middle of the changing pattern of China's media. I also talked about the issue of overall listing in many occasions. Today, a considerable part of our operational assets in SMG has been injected into the middle of new listed companies. In the future, we will work hard. However, this kind of future injection is not a simple injection of assets. It is not a splicing of some arguments. I hope that it is an overall change from thinking to organizational structure to production mode to technological process. In other words, SMG can one day The overall listing, I have not yet listed part of the ability to integrate with the already listed part, that day is the entire SMG Group to embrace the Internet.

And the first step we have to take today, the first step in this IPO is to create a new platform that will allow the Internet's genes to be activated first after implantation. This new platform will be our future and the entire SMG system. of.

To describe such a future, we still have to look at the origin of our departure today. We have a footprint in our history that we need to review. Starting from this historic footprint, we are heading towards our future. We are the reorganization of two listed companies. One is the Oriental Pearl and the other is BesTV. Oriental Pearl I can use a lot of expressions to summarize it, but today I say in one sentence, I think it is the forerunner of China's cultural system reform. Over 20 years ago, Deng Xiaoping's southern tour talked and Pudong opened up and developed. In this land of delight we have today, Pearl Oriental came into being. China’s first listed cultural company, a brand of cultural media that made Shanghai even proud of China. . The place where we met today 20 years ago, this Pudong is a combination of suburban and low-rise houses. I was born in Pudong.

This place I still remember there was an 81 bus stop in this place at that time. In such a completely undeveloped area where the suburbs were combined, our Oriental Pearl TV Tower was erected on the flat ground and the tower was erected. It is an industry, a cultural industry, and a group of reform pioneers. In the past 20 years or so, they have made great efforts to explore and develop hardships. This has made the Oriental Pearl a brand that we are proud of. So when we stand here today to promote the reorganization of the two listed companies, I think first of all we must give those entrepreneurs a message. The devotees pay tribute to our noble respect. It is the starting point of our reform. BesTV is a newly listed A-share cultural and media listed company. I personally participated in BesTV's development from scratch, listed companies with high market capitalization, and the largest A-shares in China from 0 to before we stopped trading. I experienced this. process. This is a change in the network faced by traditional radio and television and is facing competition from emerging media. A case of struggle for survival, development, and growth.

We stepped out of our boundaries and cooperated with our telecom operators to create a never-before-seen TV transmission method and created a new listed company. BesTV's achievements were not only because it created a market value, but also created a new one. Listed companies, moreover, have played a positive role in China's triple play industry policy. The integration between the broadcasting industry and our telecommunication industry, the Internet and cable networks and telecommunication broadband networks, BesTV has taken a step forward. In one step, it also gained market recognition. I am also very grateful to all the supporters of all the participants who have contributed to BesTV’s growth during the past years.

SMG Vision and Breakthrough

What we are facing now is that our background is a new SMG, Shanghai Culture, Radio, Film and Television Group Co., Ltd. This is a new SMG that reorganized the large and small texts. When we started this integration, we put forward our vision. This vision means that we must strive to become China's most innovative, dynamic and internationally influential broadcast and integrated cultural industry group. This is our goal.

This is a magnificent vision. This is also our expectation for the future. We hope that such a group will continue to be in the field of reform and innovation. Whether in the areas of institutional and institutional reforms, technological changes or content innovation, it is the most innovative. The vitality, but also on behalf of China to the world, can have our influence in the media industry has our voice to have our image like this group.

For the future relationship between SMG and listed companies, first of all, there is no doubt that the new listed company will be an independent operation that absolutely must be compliant. This must be done. So in the middle of the past few months we spent a lot of time studying the large number of relationships between SMG controlling parties, setting our boundaries and formulating our game rules. This is the first rule of the future for a new listed company to operate, but it has a strong background and a controlling party, SMG. It is this kind of development between SMG and this kind of correlation. I call it the core development. It will promote each other. It will be like two gears. Although it is two different gears, these two gears are occlusion. Together, it will promote mutual development. This biting state must be very positive. Mutual encouragement promotes mutual development. In the course of future development, we have some ideas that are being promoted.

For example, we have just talked about the channels through which we have to create ours. We have already had a wireless launch like the Oriental Pearl in the middle of our past development. Today, we are still studying the digital wireless transmission in the middle of wireless transmission. This is all wireless. . Before we researched us, we also had a stake in a part of the Shanghai cable network. The cable network itself has also been undergoing digital expansion and development in the past few years. In the future, one of the important investments in our future after financing is, or We are investing great efforts to continue to do, it will be the Internet and mobile Internet which is very important to our OTT and SMG, to establish the high point of our channel in the middle of this field and establish our new support on the platform. We also need our own platform and access, so this will be a key point for our next step.

Content investment will also be a very important area. Today I would like to tell you that investment in content is not simply a matter of investing in several TV series to cast a few films. Thinking about content investment, you have to go completely to the Internet. The traditional content approach has a long linear spread of time. Linear dissemination has its own set of storytelling logic. Today's methods based on the generation of mobile Internet content will subvert these existing methods, and the value that these content may bring today is still underestimated or has not been discovered. It will follow the crowd's iteration with 90 after 00. The iterative, these contents will burst into greater value, and it will continue to expand into the third and fourth tier cities of China as the low price of the mobile Internet continues. The value of such content will erupt. Therefore, we must also change our thinking on this kind of investment in content, and also break our original thinking mode to carry out this aspect.

Breakthrough in the format. SMG has already formed a number of existing formats, from the production of content to the construction of channels including IPTV, which has formed a stable business model driven, including we still have shopping. This is a commercial retail, including we also have interpretations, etc. We waited for such original businesses, but there are still some areas that are waiting for us to break through and ask us to study. We have a joint venture company BesTV and Microsoft Xbox, Oriental Pearl and Sony also talked about the playStation, how to lay out in the middle of this pattern, how to form our unique position and advantages in the middle of the industry, we are anxious to solve this topic. We are still thinking about how to enter the data field. The first breakthrough may be in the area of ​​financial data, financial information, and commercial and financial data. It may be because there are some confidentiality agreements I can't tell you here, but I believe that soon If you are quick, maybe next week we will release a new breakthrough project in the middle of this field.

We will have a very large platform with unique resource advantages in this area. There is a strategic alliance between them. To go forward and promote the entire energy level we have adjusted in the middle of the entire layout adjustment, I am very fancy international joint.
In the middle of the past years of the SMG process, including our two listed companies in the past years, we have a very prominent advantage that is different from the advantages of our traditional media and radio and television counterparts. This is our international one. The exchanges and cooperation are very frequent and very direct. So next we will join forces with the international community to upgrade the energy level of the newly listed companies. Recently we have announced some cooperation. For example, yesterday we announced that we have further expanded our strategic cooperation with Disney. We will be producing content. We will soon be together with Disney in 2016 to produce a globally released record film called "Morningchina". China. This is a large-scale film showing China's natural geography to the world. The first part is now being produced. This is a global distribution. We will jointly produce ourselves. We have also established a joint creative team with Disney. The next step will be to have full cooperation with Disney in the whole field of film and television. Even though the details were not listed in the news that was released yesterday, we have all of them in hand. We have already started to implement these articles of co-production, the specific implementation plans and budget plans, etc.

Our BesTV will form a joint venture with Disney to jointly operate Disney's premium content, its digital distribution and digital development. We are not only this, there are a lot of animations from a number of high quality children from overseas, and we hope there will be a strategic reorganization between them.

We recently explored a partnership with Silicon Valley and the news will be released soon.

Under the guidance of SMG, our listed company's new listed company will launch a fund in Silicon Valley. Throughout the entire process of leveraging the technological development of the Internet, we will establish our base there. The Internet's various technologies of the Internet and mobile Internet, which we promote and incubate with these technologies, then bring these technologies to China and bring them to our listed companies to promote our development. This is about to be released. We also released a content investment platform between us and Warner Bros., the largest film and television company in the United States. We will also establish an investment platform with the world’s largest programming company. We all know that today’s Chinese TV is much The programs are based on mode, and they come from many Western models. So how does this model graft this creative production process to China to promote the rapid development of the television industry? We also have a strategic cooperation with them. I will not introduce these international cooperations one by one today, but you can believe that we will have a series of layouts and explorations on international cooperation in terms of the dominance of future new listed companies. Our ambition is not only to complete our own transformation. We also hope to establish the image of Chinese media among our partners with international colleagues. This is also our dream.

What is the concept of future listed companies?

The fifth is a big concept of what the future listed companies will be. One is the diversity of content supply. We have various contents in the middle of various content layouts, from news, entertainment, film and television, and children. Fashion, sports, etc., have our documentary. We will provide the most diversified and richest content supply.

The listed companies will also participate in a considerable part of these investments and strategic decisions in the future. The entire industry chain will include content to access, including online to offline, and we will also study the development of many of our offline businesses in the next step. I think that in the future our tourism industry, our performing arts industry, and the offline entertainment industry will all have a reorganization with the Internet. Of course, it is very important that I just talked about the path we need to build our Internet. What does content supply create? Continuously creating IP, which is the core and flexible of the entire media industry, the content industry. We hope it will continue to create IP in the middle of this IP. Our new public companies have the investment to own these IPs. Our internet access allows these IPs to reach our users to create new value and create value through the Internet.

The layout of our entire industry chain, online and offline, allowing those online IPs to obtain new renewed opportunities and new value under the Internet, is our idea.

Finally, at the conclusion of my speech, I have been thinking that we have to do such a listed company how to create the greatest value for the company, how to give shareholders the biggest return, this is always a question that every listed company has to answer, I I think my conclusion is always to use a kind of curiosity to think about the future and use our execution power to become an industry changer.

What is curiosity? You must have a humble, tolerant, open mind and always look forward to your subversive attitude to see all new things. To embrace all the young things to welcome the arrival of a young era, we must have this attitude to think about our future. At the same time, we must be a changemaker in the industry. For a listed company, it is an index of profit creation. This is us. Due responsibility. But you have to create maximum returns to create the greatest value. If you just look at this report is not enough, I believe that only by defining your mission as a change you want to become an industry, sometimes you will endure temporary investment, short-term The return can not be fully reflected, but as long as you are a change in an industry, in the long run you will be the maximum value created by shareholders, this is our belief.

A past event

I'm going to end my speech today because I've talked a lot and it's definitely time out. But I think I still want to tell a story. In 2002, I was the president of SMG's former Shanghai Media Group, and at the end of 2002 I was appointed president of this group. At the beginning of 2002, I was still studying in the United States. When I was studying in the United States, I also had the privilege of going to some American news media to do some interviews and doing some practical work. I have been to some television stations and are the TV stations under News Corporation. . It's called Fox News. I'm an intern here. I will always remember the details of a story that took place during that short period of internship. One day, I would like to cover a story about China. The news director of the news on duty that day, he has prepared all the materials, because there are several pre-editing meetings every day, and I also sat in this pre-editing meeting to listen to their discussions. However, regarding this news event, in fact, we have also reported on China’s media. I certainly saw it. So when I was sitting in the conference room of this news pre-committee meeting, I obviously felt that what they were talking about was different from what I saw in the Chinese media, was very different, or was The distortion was distorted, so I said I said you should look at the Chinese media's reports. What do they say? Then I say I am a Chinese, I come from China, I know China, I say that Chinese media reports are Reasonable, you have to listen to at least balance.

Maybe because the day was going to air, the time was very tight. The press director didn't have time to listen to me and to correct him. Maybe it was because of their prejudice. He finally said a word he said today. World American media have the final say.

This sentence is very stimulating to me. As a Chinese media, at that time, you may not be the narrow feeling of a nation. Your self-esteem is greatly stimulated. What do you think is the meaning of existence? Leaving the Fox News office of this News Corporation, they were working in the basement of Sixth Avenue, leaving the basement and walking to the street, it was New York's Sixth Avenue, and it was still winter.刚结束初春的时候，纽约还是非常寒冷，寒风吹在脸上。远处的地方有些霓虹灯在闪烁，你看到了时代周刊TOM，巨大的广告牌。你看到了PEOPLE《人物》杂志巨大的广告牌。你看到了那些新闻的走马灯，字幕在你眼前滚动。我内心中间就有一种非常非常强大的一种心愿，我要回去，我要靠我自己的努力让中国的媒体也能骄傲起来，也能站起来，也能发出我们的声音，在世界的媒体格局中间有中国人的形象，中国人的地位中国人的声音，这就是这么些年一直驱使我的内心的动力。所以我今天讲完这个故事，我想做好所有的发言的这个结论，要创造这样的梦想要往前走，不仅需要我和我的团队共同的努力，还需要你，需要我们的投资者需要我们的股东，你们跟我们有同样的信念，相信我们，相信这个未来相信中国，相信中国的媒体是能骄傲的站起来，谢谢大家!