Swot Analysis Of Changyou

Xiaojing Fang
TVMN 740 [e-mail] Due 06/09/15

SOHU
COMPANY INTRODUCTION:
Sohu.com Inc. (NASDAQ: SOHU), a Delaware corporation founded by Charlie Zhang in 1996. It is “a leading Chinese online media, search and game service group providing comprehensive online products and services on PCs and mobile devices in People’s Republic of China (PRC).”
The Sohu Group (“Sohu”) consists of Sohu (“Sohu Brand” ), VIEs of Sogou Inc. (“Sogou”) And Changyou.com Limited (“Changyou”). Sogou and Changyou are indirect controlled subsidiaries of Sohu.com Inc. “Sogou is a leading online search, client software and mobile Internet product provider in China. Changyou is a leading online game developer and operator in China that got famous by MMOG TLBB and its mobile game TLBB 3D, and engages primarily in the development, operation and licensing of online games for PCs and mobile devices.”

THREE BUSINESS & BUSINESS MODEL:
Sohu had three main business: Sohu Brand, Sogou and Changyou. According to its consolidated balance sheet in 2014,

But Sina’s video business didn’t damage its overall revenue is because most of contents on Sina Video are UGC (User Generated Content). Sina doesn’t need to pay extremely high license fee for it, and since most of its UGCs are short videos, they could save more on bandwidth construction.
Sohu, on the other hand, need to pay extremely high license fee for the TV/ films content in their video library. Which make things worse is that content cost has increased significantly recently, “mainly due to intense competition from other vertical online video sites for leading, high-profile content ”. Also, according to its financial report, Sohu are increasingly required to pay license fees upfront for video content prior to its production. “If there are delays in such TV broadcasts, they will have to delay, perhaps indefinitely, their presentation of the online version of the series”