March 19th, 2019 /EqualOcean/ - On Mar 21, 2019, Xiaomi published its short video APP: Zhenjing Video. According to Xiaomi, it has already acquired a company which owns the license of Internet video business: Nine dimensions Video. The license is necessary for companies to operate short videos and live broadcast business. However, according to Sina Technology, the license of Nine dimensions Video was out of date after Mar 15, 2019. In this way, we suspect whether the Zhenjing Video has the certification to operate.
The Internet is one of the main businesses of Xiaomi. In 2018, Xiaomi’s Internet business’s revenue was CNY 16 billion with a YOY growth of 61.2%. However, in 2018 Q4, the revenue of Xiaomi’s Internet business declined. Broaden the service line is one of the strategies of Xiaomi, and the short video services are one of Xiaomi’s developing directions
Xiaomi used to publish an APP names Xiaomi Video, it is not used to make short videos, but more like a media player. The Xiaomi Video combines the contents from Tencent and iQiyi, then provide the video resources to users. Xiaomi also developed a live broadcast APP names Xiaomi Broadcast. With the Zhenjing Video which focuses on the short video making field, Xiaomi’s Internet business would be more comprehensive.
However, comparing with the UGC short video Apps such as Douyin and Kuaishou, Zhenjing Video is PGC driven, and there’s even no entrance for individual users to upload their videos. But that might because this App has not finished its development. According to Zhenjing Video’s official announcement, the Zhenjing Video has the selected video list and HD videos without advertisements, as well as the instant review function.
The Zhenjing Video belongs to Chengdu Sharing Information Company. The company was founded in Apr 2019. The chairman of the company is WANG Chuan (王川), who’s the senior vice president of Xiaomi Group. Besides Zhenjing TV, the Chengdu Sharing Information Company also owns two short video Apps: Yiqipai (一起拍) and Nianbai FM.
According to the regulation of the State Administration of Radio Film and Television (SARFT), Internet companies should get a professional license in order to start businesses such as short videos and live broadcast. There used to be lots of Internet companies who offer short video and live broadcast services without the license, and they were reported by SARFT.
Currently, the Kuaishou APP and Douyin App occupied most parts of the market share. In 2018, Xiaomi’s Internet business is mainly made up of advertisement income, game, E-commerce and Internet finance. Since every Xiaomi phone would be equipped with Xiaomi’s Apps, the development in short videos and broadcast Apps would definitely broaden Xiaomi’s production line and improve its brand influence.