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Chinese streaming company Bilibili releases rap video with quarterly results

People will visit the video platform Bilibili stand during the 2020 China Digital Entertainment Expo & Conference (ChinaJoy) at the Shanghai New International Expo Center on July 31, 2020 in Shanghai, China.

Zhou Yu | Visual China Group | Getty Images

Beijing — One of the most popular video and game apps among young people in China, Bilibili has decided to explain Thursday’s quarterly earnings report in a fairly unconventional way with the release of a rap music video.

NASDAQ listed companies are one of the fastest growing apps in China. After the earnings report, Bilibili’s share price rose more than 6% on Thursday’s extended deal.

What looks like the “head” of a gorgeous white television cartoon in the style of American DJ Marshmello, starring a futuristic space station-like capsule to the beat of Mandarin Rap touting Bilibili’s achievements. I’m in a hurry about.

This video mentions a strategic partnership with BBC Studios and introduces in-house content with the English catchphrase “Made by Bilibili”.

In one scene, the leading actor is featured as an anchor in a television news broadcast.

The heading appears at the bottom of the screen with the following caption:

  • According to the third quarter (Bilibili) earnings announcement, MAU (Average Monthly Active Users) increased 54% year-on-year.
  • August’s MAU exceeded 200 million, breaking the monthly record.
  • The average daily video views in the third quarter reached a record high of 1.3 billion.
  • The average daily stay was up to 81 minutes.

The video ends in just over two minutes, with four dancers joining the main performers at the end.

The closing caption says, “All the videos you’re interested in are on station B.” This is due to the CNBC translation of the Chinese text using the colloquial terms of the Bilibili platform.

Bilibili’s US listed stocks rise

Tencent-backed video streaming platforms have skyrocketed in popularity this year in a crowded industry with players such as iQiyi and ByteDance’s Chinese version of TikTok and Douyin.

Analysts say innovative content is part of why Bilibili attracts younger viewers. This summer, the company’s “Rap for Youth” reality TV show received a 9.2 out of 10 star rating from 62,900 reviewers on Douban, a culture-focused Chinese social media platform.

In contrast, rival iQiyi’s “Rap of China,” which aired around the same time, received a 4.5 rating from Douban’s more than 14,400 reviewers. This is lower than the previous season, which received a 5.3 rating from 34,000 reviewers.

Bilibili’s quarterly earnings video was played about 11,000 times on its primary app early Thursday afternoon, about five hours after its release.

The company generates more than one-third of its revenue from mobile games. According to the release, total net sales in the third quarter increased 74% year-on-year to 3.23 billion yuan (about $ 490 million). The company expects net sales in the fourth quarter to increase from RMB 3.6 billion to RMB 3.7 billion, an increase of at least 79% over the same period last year.

As of 2019 Bilibili’s annual report, Tencent affiliates owned 13.3% of the company and Alibaba’s subsidiary Taobao China owned 7.2%.

Monetization challenges

Turning user growth into revenue remains a challenge for video streaming companies. Many people in China aren’t used to paying for content yet, but companies need to invest heavily in creating content that is interesting enough to attract and retain users.

In the three months leading up to September 30, both Bilibili and iQiyi reported net losses attributable to shareholders in excess of RMB 1 billion.

According to Bilibili, the average monthly paying users in the third quarter increased 89% from a year ago to 15 million, less than 8% of the 197.2 million monthly active users.

Baidu’s much larger video streaming platform, iQiyi, said earlier this week that subscribers had dropped slightly from 105.8 million a year ago to 104.8 million as of September 30. .. Total revenue was down 3% to 7.2 billion yuan.

IQiyi said it will focus more on monetizing large-screen businesses, given that users have recently spent more time on TV than on mobile devices. The company did not provide details about the time spent or when the milestone was exceeded.

Nasdaq-listed iQiyi has risen by more than 40% last year and has so far maintained a rise of about 7% annually.

In contrast, Bilibili’s share has increased by more than 150% year-to-date. The market capitalization of both companies is approximately $ 16.6 billion.

Meanwhile, Bilibili is trying to raise more money. Chinese companies are preparing for a second listing in Hong Kong as tensions continue between the U.S. and China, and could raise up to $ 1.5 billion, a person familiar with the matter told CNBC in October. Told. The listing is likely to take place next year.

— CNBC’s Arjun Kharpal contributed to this report.

Chinese streaming company Bilibili releases rap video with quarterly results

Source link Chinese streaming company Bilibili releases rap video with quarterly results

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