99 China music network failures nternet reoccurrence of financing

capital market turmoil on the impact of the domestic Internet industry continues to intensify. According to Beijing media reports, because of the risk of investment temporary emergency divestment, a 99 China music website has been shut down.

99 China (www.99.cn) operations in less than a year, just on the line in January this year, by a Chinese American invested $30 million to create. Yesterday, the reporter found that the site has been unable to open the web page to remind that the link does not exist, refused to visit. According to reports, the company recently held a meeting to discuss increasing the bandwidth of things, but on Friday because of the risk of investment divestment suddenly declared bankruptcy, liquidation of assets into the stage.

insiders believe that the music website model itself can not be successful, because a considerable number of Internet users do not agree with the charges for intellectual property rights, music sites rely on the acquisition of income is very difficult to download. In addition, although the success of the video site profit model remains to be discussed, but the industry believes that those small video sites, online games and other hype community concept of the company is not far from bankruptcy.

The

analysts said, now a network game if you can do 100 thousand people online at the same time it is not easy, a small video website is very difficult to accumulate such popularity, how is that by clicking or advertising revenue? Not to mention the video website every moon is the bandwidth server costs will be millions of dollars.

in this regard, Shanghai Shanda Investment Department said that the current site encountered financing difficulties is certain, the relatively small scale, investment and active investment fund (especially foreign fund) also encountered financing problems, the future is likely to invest in a few months the strategy will be relatively active, but the amount of strategic investment limited.

but the video sites that have already received several rounds of financing do not seem to worry about such problems. GGV capital in the middle two rounds of financing (tudou.com tudou.com completed 4 rounds of financing), the partner in charge of Fu Jixun said, in some areas of the Internet, whether it is online community, or video sites, the future market can only accommodate 1 to 2 successful enterprises, and in the market choice of small and medium enterprises the collapse, from a certain extent can bring more scale effect to the survivors, such as increased advertising revenue.

"just as we can’t assert the success of Baidu in 2000." Fu Jixun said it is too early to put an end to any Internet model. He said that, after all, the capital market crisis is temporary, and consumer demand is changing. The music website as an example, if the music website is not only pure music downloads, but to provide a rich variety of entertainment content, or as a record company music promotion platform, this may succeed, but at least in the next 2 to 3 years, some Internet companies are likely to be in the financing and refinancing difficulties.

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