Long and short video cooperate with Tencent PCG structure adjustment

Since its establishment in September 2018, Tencent PCG (platform and content business group) has made large-scale adjustment for the first time. On April 15, Tencent PCG announced the establishment of “online video bu” by integrating Tencent video, micro TV and application treasure. Meanwhile, it adjusted the head of QQ and Tencent News business.

This is the first time Tencent has set up Bu under the business group framework, and it is also rare for Tencent to let the executives in charge of IEG (interactive entertainment business group) concurrently serve as the business director of PCG social platform. After the quick listing and the byte beating Kwai IPO message, the Tencent released some anxiety signals, but also made clear Tencent’s content strategy — content binding distribution, and continue to integrate long and short videos.

Cater for long and short video fusion

On April 15, it was reported that Tencent PCG announced a new round of organizational structure and personnel adjustment, integrating Tencent video, micro TV and applied treasure to establish an “online video bu”, with Tencent vice president sun Zhonghuai as the CEO of the Bu, in charge of content, operation and membership system; Tencent vice President Lin Songtao as the president of the Bu, in charge of product system and technology. To afore-mentioned information, Tecent relevant personage answers to Beijing Business Daily reporter, adjust true.

The adjustment of the person in charge of QQ and Tencent News includes Yao Xiaoguang, vice president of Tencent and President of IEG Tianmei studio group, who also serves as the person in charge of PCG social platform business and is in charge of QQ. Chen Juhong, vice president of Tencent, is no longer in charge of Tencent’s news business and will be transferred to other BGS with important business appointments. The person in charge of Tencent News has been appointed separately.

In view of the above adjustment, the industry is most concerned about the “online video bu.”. “It’s not only because Tencent has set up Bu under the business cluster for the first time, but also because micro TV has been adjusted many times, but it hasn’t improved greatly in terms of data and brand awareness,” Li Jinqing, an analyst at Bida consulting, told Beijing business daily.

Based on the specific adjustment, the founder of Wenyuan think tank explained to Beijing business daily, “the adjustment of Tencent PCG is actually the original plan – content + distribution. From the content point of view, the performance of micro vision is poor, so we must take a different way. I’m afraid that this way is mainly PGC (professional production content) and supplemented by UGC (user generated content).

In short, it is to further integrate short video and long video. This move was used by Tencent PCG in March 2019. At that time, Yoo video (later renamed as hotpot video) which had high hopes was integrated into Tencent video. The two tiktok is to seek synergy growth of long video platform and short video platform. After all, in the video field, the war between Iqiyi and Tencent video is not yet final. The advantages of Kwai Fu and jitter are also too obvious, and these opponents have begun the strategy of joint development of long and short videos.

Executives across two business groups

Another special feature of this adjustment is the person in charge of QQ. According to the announcement released by Tencent music on April 15, Liang Zhu, the former head of QQ, was appointed CEO of Tencent music entertainment group. He will be mainly responsible for the management of QQ music, kugou music, KuWo music, national karaoke and long audio business line of Tencent music entertainment group. This seems to be a long-span adjustment, but it is actually a return, because Liang Zhu was the general manager of QQ music during 2014-2016.

In the future, PCG’s QQ will be in the charge of Yao Xiaoguang, who is in charge of IEG Tianmei studio group. Compared with Yao Xiaoguang’s business, it will span two business groups.

“This kind of adjustment is very rare. I guess Tencent wants QQ to bring traffic to the game. Tencent’s game is more anxious in the past two years. MIHA you’s Yuanshen’s overseas revenue has surpassed Tencent’s, and Mutong technology has been acquired. It’s not surprising that Tencent has growth pressure, “said Wang Chao, founder of Wenyuan think tank.

Through the financial report data, Tencent’s online game performance is stable, and this anxiety comes more from the desire for the future. In 2020, Tencent’s online game revenue will increase by 36% to 156.1 billion yuan, and its value-added service business will still contribute the most revenue. Specifically, in the fourth quarter, the online game revenue increased by 29% to 39.1 billion yuan. In the fourth quarter of 2019, Tencent’s online game revenue reached 30.286 billion yuan, a year-on-year increase of 25%.

Another point of view is that Yao Xiaoguang is also in charge of PCG’s social platform business to explore the imagination of applying computer graphics technology and ability accumulated in the game field to the social and video fields. According to public information, Tianmei studio group was established in 2014, which is responsible for the research and development of high-quality mobile games. The Games launched include “King’s glory”, “call of duty” mobile games, etc., which are the signs of Tencent’s online games. From the perspective of user attributes, the tags of QQ and game users are young, and the technology and operation have something in common.

Crossing the river by feeling the stones

Based on the above adjustments, we can roughly sort out the latest architecture of Tencent PCG: online video bu (Tencent video, micro TV, application treasure), social platform business (QQ, QQ space, etc.), QQ browser + Tencent point, Tencent pictures + video animation, Tencent News, penguin.

Compared with the above architecture, we can see that both the overall and vertical directions follow the obvious logic of content + distribution.

“This is the direction Tencent set in September 2018 when its architecture was changed. The naming of platform and content business group explains Tencent’s idea very plainly. But this is not to say that the “930” reform has completed the internal adjustment of the business group. On the contrary, this is only the beginning, and this kind of adjustment must be gradual. We need to feel the stones to cross the river, “Li Jinqing said.

Take the attempt of Tencent PCG in 2019 as an example. In November of that year, Tencent watch integrated the information content of QQ watch, daily express and QQ browser to provide information flow content services for Tencent wechat, QQ, QQ browser and other scenes. Tencent has completed the integration of information flow business, from fighting separately to breaking into parts. The same logic applies to the establishment of online video Bu this time.

From a higher perspective, Tencent PCG has been reforming every year since 2018. In 2018, it will implement the top management partner system for VP (vice president) level. In 2019, it will integrate content platform and technology platform. In 2020, it will turn to business level integration.

Beijing Business Daily reporter Wei Wei

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