(TIỂU LUẬN) the supply chain of yeah1

VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY INTERNATIONAL UNIVERSITY SCHOOL OF BUSINESS Group LSCM/ 10 Pham Thu Quynh BABAWE18120 Vu Duy Hai BABAWE18169 Vu Truong Thanh Van BABAWE18489 Nguyen Vu Xuan Hy BABAWE18573 Nguyen Thi Thuy Duong BABAWE18160 Facilitator: Ngo Thi Thao Uyen Subject: Logistic and Supply Chain Management Date of submission: May 7th, 2021 Table of Contents I Introduction 1/ About Yeah1: .3 2/ The Supply Chain of Yeah1: a The Supply Chain Network .3 b The problem of the Supply Chain II Methodology 1/ Yeah1 is accused of tolerating ‘inappropriate’ YouTube channels to make money 2/ Method to solve the problem .7 III Solution and Recommendations 1/ Reasons .8 2/ Recommendations: 10 IV Contribution form 12 Table of Figures Figure 1-Yeah1 Supply Chain Network .3 Figure 2-Yeah1's business model .7 Figure 3-Yeah1's data report I Introduction 1/ About Yeah1: Yeah1 Group (YEG) is one of South East Asia’s fastest-growing Multi-channel media Conglomerate operating in Traditional, Digital Media, and Media Commerce The group operates over 20 companies across the value chain spanning operations across the globe with revenue from over 150 countries Their vision is to become a leading media and entertainment company in Southeast Asia, with a unique approach to capturing local markets as well as using local content and skills to reach the global market Its mission is to constantly challenge the boundaries of cutting-edge technology, content development, and engaging entertainment 2/ The Supply Chain of Yeah1: a The Supply Chain Network Figure 1-Yeah1 Supply Chain Network The media supply chain workflow consists of steps: Step 1: Content acquisition Media files and metadata can arrive in several different ways and shapes depending on the specific areas of the business Either the company creates it themselves, or a third party supplies it to them Step 2: Media processing Most media files and metadata need some sort of processing into a house format before they become available and accessible in the media workflow Step 3: Quality control Quality control can refer to various things, such as ensuring the correct codec, format, or audio mapping for files Simply making sure all the pieces of the file are in order preparing it for the editing process Step 4: Editing Editing a video or audio is the creative center point in the media supply chain workflow where the company edits the media files to fit a certain target group, platform or device, and simply prepares them for distributing it to their audiences and customers Step 5: Delivery / Distribution The delivery process involves the preparation of both media content as well as metadata where the files might need to be transcoded into different formats for distribution on different platforms and devices b The problem of the Supply Chain Regulations, compliance, and quality management demand strong agreements, contracts, and controls with supply chain organizations, which is one of the reasons for risks and issues throughout the network causing significant problems to the organization In 2019, Yeah1 had failed to implement the contract with YouTube, which was an enormous crisis for the company and brought huge damage to the headquarter, Yeah1 Network Moreover, some of the YouTube channels in Vietnam produced video content using cartoon characters for fault purposes II Methodology 1/ Yeah1 is accused of tolerating ‘inappropriate’ YouTube channels to make money By YouTube's definition, a content production channel that wants to allow monetization needs to meet the number of followers, watch hours, and content that plaintiffs relevant community standards set by the entity However, many channel owners that only produce and malicious content are unable to meet these requirements, and in turn, they have to seek monetary support from a larger network of entities In early March 2019, YouTube issued an official statement about its decision to terminate cooperation with Yeah1 as follows: "We decided to exercise the rights in the contract and terminate the partnership with some channels multi-network (MCN) with their subsidiaries has been found to seriously violate our regulations and we need to ensure the safety of our viewers and creators making the transition of content creators affected by this termination as smooth as possible " Among the Yeah1 Network channel's violations, there are two most notable cases reported by the press Firstly, in early 2017, some Yeah1 Kids YouTube channels produced by Vietnamese posted clips disguising cartoon characters for children such as Elsa Snow Queen, Spider-Man, but with offensive and violent content Despite being targeted at children for profit The strong reaction of parents on social networks and media at that time created public pressure for Yeah1 when making an official statement on January 17, 2017, asserting responsibility about "not trying very hard to strictly control content" for these infringing video clips However, Yeah1 still affirms "YouTube channels that violate the final content, if not on Yeah1 Network, still exist on YouTube or other online platforms" Until March 2019 YouTube channel Tam Mao Food, part of the Yeah1 Network, posted a video about the slaughter of a bird believed to be a Burmese Kite - a precious bird banned from hunting This act of posting videos of processing and eating rare animals has received harsh criticism from the online community, leading to sanctioning by the authorities It can be understood that these are two typical examples of Yeah1 in "denouncing" a series of serious content policy violations of its channels and many times contributing to the decision to terminate the cooperation agreement from YouTube Yeah1 is no longer MCN's privilege and tool In addition, channels owned and operated by Yeah1 together with Yeah1 affiliate channels will be removed from the network and can resubscribe to the YouTube Partner Program (YPP) on a case-by-case basis and is reviewed by the channel according to YouTube's standard rating process 2/ Method to solve the problem As an MCN operator, YEG plays the role of searching and working closely with popular Youtube channels (or content creators) to exploit mutually beneficial advertising Specifically, these content / creative channels will provide quality content to YEG regularly to engage viewers while YEG provides professional support services in exploiting ads from visits Digital content, content copyright management, cross-promotion, target audience development, search for branded sponsored campaigns, and influencer marketing campaigns Then, YEG will recognize revenue from these services under the following sharing programs: Figure 2-Yeah1's business model Channels joining the Y1E network need to meet the requirements given by YouTube and Yeah1 Network During the operation, the channels will be trained continuously to comply with the regulations Yeah1 Network does not tolerate "inappropriate" content, especially content that is harmful to viewers Y1E needs a system and a daily moderator When detecting inappropriate content, it will request the channel to remove, report back to YouTube and terminate the contract with the offending channel if it does not comply with the regulations III Solution and Recommendations 1/ Reasons YouTube's announcement kicked off a Yeah1 operational breakdown but then turned into a real crisis It all turned out to be more of a media crisis than an internal glitch The cause of the exact problem stems from the fact that Spring Me Ltd from Thailand, Yeah1 company indirectly owns 16.93% of the capital, violates the contract, is not consistent with the process of Youtube Besides, Vietnam's penetration and expansion abroad, building new platforms, and innovating the market of Vietnam cause too many risks leading to a media crisis and extremely serious Revenue growth is too fast and has grown too fast by owning companies like Spring Me Ltd, Scalelabs and buying stakes from other MCN companies Because that time, Youtube was the number one platform at the time, so the main source of income was mostly from Youtube Not only that, indifference, ignoring risks, and not strictly controlling the company's employees are also big problems in this terrible incident “Yeah1 Group Joint Stock Company (HoSE: YEG) announced its business results in 2018 Accordingly, the company's revenue reached 1,658 billion VND, an increase of more than 97%, equivalent to 180% profit after tax for the whole year VND billion, up 119% from VND 82 billion in 2017 In which, 89% of Yeah 1's revenue comes from YouTube ", according to https://yeah1group.com Figure 3-Yeah1's data report In terms of business structure, Yeah has two main areas that are traditional and digital media In particular, the revenue contributions of these two segments are similar while the profit efficiency from the digital media is much higher For example, in 2017, the traditional media contributed 43% of the revenue of Yeah1TV, but all profits came from digital media Also, in 2018, the gain from digital was more than 84% In addition, publishing digital content on the YouTube platform of Yeah1TV this year had increased by more than 93% and accounted for 89% of the profit of the company While in 2015, this rate was only less than 50% of the company's profit Due to having a main and strong reliance on YouTube for business, when Yeah1TV was terminated by Youtube, Yeah1 had to face a serious decline in company profits such as the sharp decline in business results in the first half of 2019 2/ Recommendations: Yeah1 can regain its position in the MCN world in many ways Firstly, Yeah1TV uses its strength which is creating popular and entertainment TV shows In 2014, Yeah1TV released many TV shows that had a strong attraction from its target audience which are teenagers For example, these shows Nay Ban Nghi Sao or Lop Hoc Vui Nhon were popular for teenagers at that time Therefore, Yeah1TV should put the effort into developing new shows for teenagers to attract more audiences as well as get back the company's image Then, Yeah1TV can publish the shows and creative video content O&O on YouTube that have a huge interaction from the audiences like Yeah1 Music (over million subscribers) or Yeah1 Movie (over million subscribers) Secondly, with today's needs of the audience, people prefer watching short, fun, and trendy videos like TikTok, Yeah1 can also focus on developing such content and video creation on this platform keen to reach Yeah1TV target audiences Furthermore, this way can help Yeah1TV avoid a strong reliance on the only social media platform is Youtube Next, to improve its financial position, Yeah1 can cooperate with brand partners to build advertising on Facebook O&O such as Yeah1 Video and Pho with more than million and 10 million likes respectively Besides, Yeah1 also needs to comply with the terms of platform parties to avoid having a crisis like the incident in 2019 Especially because of Covid 19, Yeah1TV should cut off ineffective and risky investments such as Yeah1 CMG Yeah1 CMG is the nation’s top movie studio with a focus on multiple fronts from production, marketing, investment, and distribution of Vietnamese box office movies On each coronavirus pandemic phase, the government will close all entertainment places including movie theaters, which leads to delayed movie release dates that will add more costs for film producers Moreover, Yeah1TV owns top cable systems: Yeah1TV, Yeah1 Family, and iMovie TV However, with the development of technology, people prefer entertaining by using smartphones through social media platforms to television Also, the cost of maintaining and developing these cable systems is high; therefore, Yeah1TV should cut two ineffective TV channels like Yeah1 Family and iMovie to save money 10 Not only that, Yeah1 should penetrate the streaming market and short video platform Popular applications that young people are especially interested in today are TikTok, a software that can bring short videos with a variety of content to viewers with extremely high speed Yeah1 can invest in building on this platform to be able to get income from Marketing or get contracts from this platform In addition, streaming platforms with content about gaming, talk shows, and singing are extremely popular in many forms of transmission We can see that on Youtube, Facebook prevailing part, we see a lot of edited videos cut from streams or streams with huge viewership from famous streamers like Mixigaming, Teacher Ba (also known as Ba Roi Beo), and streamers from gaming houses such as Quang Cuon, PewPew from Creatory When Yeah1 builds on this streaming platform, Yeah1 can gain a lot of benefits by penetrating the streaming market Yeah1 can sign contracts with celebrities, streamers, KOLs build an image for them to earn huge donations from viewers, advertising contracts from investors, sponsors, and from Youtube and Facebook by edited video Recently, Yeah1 announced there will be many projects entering this market, that is Celuv Sitcom, Yeah1 Sitcom, Celuv Spotlight, Yeah1 Show, Celuv Streamer Academy Even, Yeah1 chairman sold off shares, subsidiaries and transferred Scalelabs to partially liquidate creditors to help Yeah1 overcome this difficulty Yeah1 also tries to control more closely and clears virtual YouTube channels, the platform stipulates that a YouTube channel must have 1,000 subscribers, 4,000 hours of video and content viewing according to YouTube's regulations Google Adsense ad monetization has just been activated 11 IV Contribution form GROUP REPORT CONTRIBUTION Semester Academic year: 2020-2021 Group name: LSCM/10 Topic: Yeah1 Supply Chain Management and its problem Contribution of each group member: % of N o Student name Student ID contribution Responsibility task (In total 100%) BABAWE1812 Pham Thu Quynh Vu Duy Hai Vu Truong Thanh Van Nguyen Vu Xuan Hy Nguyen Thi Thuy Duong Methodology BABAWE1816 Solution and Recommendations BABAWE1848 Solution 23% Recommendations and 21% 23% BABAWE1857 Introduction 24% Power Point slides 10% BABAWE1816 12 ...Table of Contents I Introduction 1/ About Yeah1: .3 2/ The Supply Chain of Yeah1: a The Supply Chain Network .3 b The problem of the Supply. .. reach the global market Its mission is to constantly challenge the boundaries of cutting-edge technology, content development, and engaging entertainment 2/ The Supply Chain of Yeah1: a The Supply. .. all the pieces of the file are in order preparing it for the editing process Step 4: Editing Editing a video or audio is the creative center point in the media supply chain workflow where the