On May 28th, the "2019 Global Blockchain Technology Development Forum (GBF)", hosted by the Organizing Committee of the 2019 China International Big Data Industry Expo, undertaken by the China Academy of Information and Communications Technology, and co-organized by TelInfo and Odaily, was grandly opened in Guiyang .

The theme of this forum is "Technology Innovation and Integration". Internet giants such as Baidu, Ant Financial, and JD.com, representatives of some blockchain companies registered with the Cyberspace Administration of China, and well-known universities such as Peking University discussed in depth the impact of blockchain technology on the digital society at three levels of "construction, empowerment, and leadership". the value of.

In the afternoon, Li Guoqing, the founder of Dangdang and the founder of Morning and Night Reading, delivered a speech on the theme of "promoting the Internet pattern of the content industry".He first expounded several characteristics of the traditional content industry: marginal cost is almost zero, highly dependent on individuals, poor reproducibility, business model only advertising model and user payment model; and said that the blockchain can solve the pain points of the traditional content industry in the following ways , Promote industrial development: content rights confirmation and economic incentive mechanism, remove intermediaries and advertising fees in matching transactions, combine consumers and investment beneficiaries through content crowdfunding, and reduce the control of large capital.

The following is the full text of Li Guoqing’s speech edited by Odaily:

We need to know what the pain points of the traditional content industry are in order to know how the blockchain can be blessed.

The information industry, or more accurately called the content industry, includes books, magazines, newspapers, movies, film and television dramas, and music. They are all becoming Internet-based, so what do they have in common?

The first feature is that the marginal cost is almost zero, for example, the cost of copying software is very low. Some people say that the media is a money printing machine. When the box office of "The Wandering Earth" and "Wolf Warrior" exceeded 1 billion, it was indeed a money printing machine.

The second feature is highly dependent on the individual. "Spirited Away" and "The Story of Strange Flowers" were both very successful and commercially successful. But their teams can't do it if they want to copy another show. Not every blockbuster can be a commercial success.

The third feature is poor reproducibility. In industry, only scale can reduce hard costs and make marginal costs zero. However, the content creative industry and industry have not found a good connection point. Of course, Hollywood has found some, but this kind of replication basically stays in the fast food culture, and the fast food culture can easily fall into self-replication, thereby reducing the commercial success rate.

The fourth feature is its business model. There has been "knowledge payment" before, but this is not new at all. The content industry has two models, one is direct payment by users, and the other is advertising model. If you can't win the attention of advertisers, then you have to pay for it. Fifteen years ago, Sina explored the model of precise delivery, which turned the content industry, including niche content, into advertising revenue, but later found it was unsuccessful. Because Chinese advertisers are not rational and are not interested in precise delivery. The boss said that he didn’t see my ad when he opened Sina. People said it was a precise advertisement, but the boss didn’t buy it. Later, he still saw the ad after a little investment. Advertising in the United States is developing rapidly, with Google as the mainstay. But recently, precision advertising has encountered the problem of excessive collection of user privacy. Baidu is also at the forefront of exploring precise advertising. For example, when we talk about the latest housing prices, when you turn on your mobile phone, the news of housing prices pops up in the front row of some websites.

The traditional content industry and content Internet will undergo great changes in the new ten or twenty years.

The first is content creation. The old way is too old. When we founded Dangdang.com, we thought it was wonderful to solve the problem of backlog of books. As a result, 20 years later, whether it is Dangdang, Tmall, or JD.com, they have not solved the problem, but have brought more backlogs to the upstream. Because, it is very likely to sell 3 billion last month, and there will be no traffic next month, and the production will be backlogged.

The same goes for creation. Backlogs are the greatest waste. Tens of millions of people in China are engaged in content creation, and this is not counting short articles on official accounts, but only 5% of them are actually read, and the backlog is very serious. All walks of life talk about gross profit, and this backlog makes it impossible to maximize profits to consumers.

Second, it is over-commercialized. After being over-commercialized, content creativity is driven by capital and becomes low-level repetition. Cultural creation activities should not be driven by commercialization, but by the call of inner morality.

Furthermore, we thought that the Internet content industry would be smaller, so why is it becoming a bigger company now? Many big platforms, such as BAT and iQiyi, are engaged in self-produced dramas, and they are not willing to be data distribution platforms. This kind of content production will give birth to new business opportunities. In addition, traditional content filtering relies on a large number of editors, but editors will also select wrong content and miss high-quality content. With the development of the Internet today, netizens can organize themselves to filter content, and there are great business opportunities here.

Since the traditional Internet has more pain points and potential opportunities, what can blockchain do?

First, the beauty of blockchain lies in its economic mechanism. Content on-chain is the biggest incentive for creators, even if it is infringed, the source can be traced. In the traditional publishing world, writers from all over the world hope to put their past content assets on the chain, and my good friends will ask me what the price is on Dangdang.com. However, Dangdang.com and the publishing house have an agreement. Without consent, the data of both parties cannot be given to a third party. Can Dangdang.com make the data public on the chain?

The second is the matching of transactions. Just now Dean Zhang mentioned the cost-benefit ratio of piracy and infringement lawsuits, and it is difficult for many content owners to protect their rights. We used to think that the amount of money in the content industry was low, and it seemed that an intermediate organization was needed. For something created by the author, Apple took 30% of the income, and the remaining 70% was shared with the publisher. Has the platform made a fortune? I think the profit is also very bleak. Dangdang is so good that its annual profit is only 500 to 600 million. Therefore, the blockchain will bring about revolutionary changes in transaction matching, that is, without spending high advertising fees, and completely eliminate the middle party of the transaction.

China's rural supply and marketing cooperatives in the 1950s and workers' cooperative organizations in the 1960s all had successful experiences. Can knowledge producers, disseminators, and users be turned into a consumer cooperative to promote more diverse content production?

The third is the financial attribute of the blockchain. The content industry also needs capital, but it is isolated from finance, which makes China's creative industry seriously lag behind. Can director Feng Xiaogang go to the bank for a loan? This is difficult to operate. But on the blockchain, crowdfunding becomes very easy, combining consumers and investment beneficiaries into one, will insert financial wings for the development of the entire content Internet, and bring vigorous vitality.

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