Analysis of Profit Model and Optimization Strategy of Mango TV

Abstract

Launched in 2014, Mango TV is the streaming video platform of Hunan Broadcasting System's listed company, Mango Excellent Media Co., Ltd. While long video platforms such as Tencent Video, iQIYI, YOUKU and others are perennially losing money, Mango TV made a profit as early as 2017. Mango TV has a unique profitability strategy that makes it stand out. This paper applies the literature analysis method to introduce the background of Mango TV and then analyse the revenue and expense components. Because there is a correlation between profitability and value creation, this paper investigates Mango TV's profitability strategy based on Michael Porter's Value Chain. By analysing the value activities of Mango TV in the four aspects of infrastructure, human resource management, technology development, products and sales, it analyses and derives the profitability strategy of Mango TV in the directions of paid derivation, innovation track, middle office technology, TV station-network fusion, homemade content, and talent training. Based on the above research, it judges advantages and disadvantages and then proposes countermeasures and suggestions for the shortcomings. This paper hopes to provide some new ideas for Mango TV's sustainable profitability and to help it develop more up-to-date profitability strategies.