With the high penetration of smart phones and mobile networks, the number of mobile Internet users continues to climb. Nearly 700 million Chinese Internet users currently account for 90% of mobile Internet users, which indicates that the mobile Internet market is large. In this push, mobile applications emerge in an endless stream, among which entertainment applications are the hottest.
Recently, the "China Entertainment Live Broadcasting Industry White Paper 2016" was published, and statistical studies were conducted on various aspects of the entertainment live broadcast industry. It shows that from the first quarter of 2015 to the first quarter of 2016, the number of live-entertainment users jumped rapidly from 17.59 million to 47.38 million, an increase of 170% compared with the previous period. The astonishing data indicates that the era of the public broadcast has come.
Capital Pursuit of High Revenues and Entertainment Live Broadcasts
The fieryness of the live broadcast industry has attracted a large number of capital and giants to enter the market. The statistics of the white paper show that as early as the beginning of 2015, the major live broadcast platforms started the financing. Yingke won Kunlun's 80 million A+ round of financing, easy live broadcast to complete 60 million rounds of A round of financing, and hug live broadcasting to obtain 100 million yuan of B+ round of financing, etc., and a series of financing news appeared on the financial page. In addition, Baidu, Alibaba, Tencent, the three major Internet giants have also attacked, through the launch of their own live products and investment in other forms of live broadcast platforms. In a short period of one year, live entertainment was sought after by capital and internet giants.
In addition to the huge influx of huge capital, entertainment revenue can not be underestimated. Taking YY LIVE as an example, the user monitoring data of the White Paper shows that the total number of virtual rides rewarded by the YY LIVE platform in 2015 was 4,399,577 units, which is 22% higher than the total automobile sales of the GM China market in the same year. Gathering Times announced in August the second quarter earnings data: the number of paying users of the online music and entertainment business in the second quarter of Gathering Times increased by 51.4% over the same period of last year to 2.8 million. In addition, the number of mobile users in the second quarter of the Gathering Age increased by 88.3% over the same period of last year to 1.8 million. Through the introduction of capital and high revenues, the live broadcast platform is able to resist high operating costs and truly achieve profitability.
In the operation of the live broadcast platform, the bandwidth cost has always been the largest expenditure. Some industry insiders have calculated that live broadcast APP needs to put in about RMB 300 million yuan to maintain the bandwidth for one year. In addition, celebrities, live events, online and offline advertising, a series of promotion costs are also big blood. Nowadays, the amount of financing for live APP is frequently tens of millions, and with the realization ability of its own platform, the interest income after deducting operating costs is still considerable. The entertainment live broadcasting platform began to taste the sweetness of the Red Sea market.
The #12 era of global APP publishers has a high share in the global market and is currently the strongest in the live broadcast industry. This is partly due to its higher liquidity capacity. Based on years of user accumulation and rewards, the main user groups on the YY LIVE platform have gradually developed spending habits, coupled with the support of powerful online red anchor groups and the popularity of mobile payments, YY LIVE membership subscription and payment The profit model of rewards is maturing. With the rapid growth of the scale of users, the user's spending power has a huge room for improvement. The future development potential of entertainment broadcast is unlimited.
Respond to market bubbles with content ecology
The short burst of entertainment broadcast also brought bubbles to the market, and users' highs and lows are problems that some live broadcast platforms need to solve. According to the white paper's statistics on the monthly distribution of live users of mainstream entertainment in China in April 2016, YY LIVE ranked first in the absolute advantage of 15.54 million, and the data of Yingbin's 9.91 million people was also close to tens of millions, but the remaining platforms The number of monthly live subscribers is less than 3 million, and even some are only a few hundred thousand. Compared with the total number of users in the industry of nearly 50 million, it is a world of difference.
The white paper also pointed out the reason: The current entertainment live broadcasting operation mode is not yet fully mature. In order to achieve traffic acquisition, some platforms take shortcuts, or snatch star resources, or brush a single brush popularity, in a short period of time for the platform suction powder drainage, but once the heat fades, means exposure, the user will lose a lot. After the virtual fire has receded, these platforms will face the fate of being eliminated. What remains is the true value of the industry. The key is to see if the platform itself is sufficiently competitive.
Since the development of the live broadcast of entertainment, the content has always been changed. The PUGC model represents the refined and specialized development direction of the content form of the entertainment live broadcast platform, and gradually becomes the consensus of the platform to enrich the content form and layout diversified content ecology. YY LIVE's monthly live user data can remain high, thanks to the evolution from the show model to a multi-entertainment live broadcast platform. After upgrading the brand, YY LIVE specializes in high-quality pan-entertainment live broadcasts, launching an unlimited live-living cooperation plan, as well as a multi-content ecological layout that includes individual artists, cross-border culture, and star partners. The extension of the industrial chain and the blessing of the Red Economy have promoted YY LIVE's realization of a multiple realizable value. The proportion of revenue from the live entertainment business up to 55.5% is sufficient to show YY LIVE's industry competitive advantage.
The live broadcast war gradually entered the stage of high-quality content exploration, indicating that it has reached a climax and the outcome is approaching. In the coming days, the content ecology will be the core competitiveness. Whether it can follow the trend of the explosion of entertainment broadcasts, the major platforms will rely on real content strength to explain everything.
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