Chinese language streaming firm Bilibili releases rap video with quarterly outcomes
Individuals go to the video platform Bilibili stand through the 2020 China Digital Leisure Expo & Convention (ChinaJoy) at Shanghai New Worldwide Expo Heart on July 31, 2020 in Shanghai, China.
Zhou You | Visible China Group | Getty Pictures
BEIJING — Probably the most fashionable video and gaming apps amongst China’s youth, Bilibili, determined as an instance its quarterly earnings report on Thursday in a slightly unconventional manner with the discharge of a rap music video.
The Nasdaq-listed firm is likely one of the quickest rising apps in China. After the earnings report, Bilibili’s shares rose greater than 6% in prolonged buying and selling Thursday.
With what appears to be like like an opulent white TV cartoon “head” — within the model of the American DJ Marshmello — the lead performer prances a few futuristic, area station-like capsule to the beat of a Mandarin rap which touts Bilibili’s achievements.
The video references a strategic partnership with BBC Studios and likewise exhibits off in-house content material with an English tagline — “Made by Bilibili.”
Headlines roll throughout the underside of the display with the next captions:
- In accordance with (Bilibili’s) third quarter earnings launch, our MAUs (common month-to-month lively customers) elevated by 54% year-over-year.
- In August, our MAUs exceeded 200 million, marking a brand new month-to-month file.
- The typical each day video views in Q3 reached a file excessive of 1.3 billion.
- The typical each day time spent was as much as 81 minutes.
The video wraps up in simply over two minutes with 4 dancers becoming a member of the principle performer on the finish.
The closing caption reads: “All of the movies you are curious about are on B station,” in accordance with a CNBC translation of the Chinese language textual content that makes use of a colloquial time period for Bilibili’s platform.
Bilibili’s U.S.-listed shares climb
The Tencent-backed video streaming platform has surged in reputation this 12 months in an trade that is crowded with gamers resembling iQiyi and ByteDance’s Chinese language model of TikTok, Douyin.
Analysts have mentioned revolutionary content material is a part of the rationale why Bilibili attracts youthful viewers. This summer season, the corporate’s “Rap for Youth” actuality TV present obtained a 9.2 out of 10-star score by 62,900 reviewers on Douban, a culture-focused Chinese language social media platform.
In distinction, rival iQiyi’s “Rap of China” that aired across the identical time obtained a 4.5 score from simply over 14,400 reviewers on Douban — decrease than the earlier season which noticed a 5.3 score from 34,000 reviewers.
Bilibili’s quarterly earnings video had about 11,000 views on the corporate’s major app as of early Thursday afternoon, about 5 hours after its launch.
The corporate generates nicely over a 3rd of its income from cell video games. Complete web income within the third quarter rose 74% year-on-year to three.23 billion yuan (roughly $490 million), in accordance with a launch. The corporate expects fourth quarter web income of three.6 billion yuan to three.7 billion yuan, a rise of no less than 79% from the identical interval a 12 months in the past.
Tencent-related entities held 13.3% of the corporate, whereas Alibaba subsidiary Taobao China held 7.2%, as of Bilibili’s annual report for 2019.
Challenges for monetization
Turning consumer progress into income remains to be a problem for video streaming firms. Many individuals in China are nonetheless not used to paying for content material, whereas firms typically want to speculate closely in creating content material fascinating sufficient to draw and retain customers.
Within the three months ending Sept. 30, each Bilibili and iQiyi reported a web loss attributable to shareholders of greater than 1 billion yuan.
Bilibili mentioned common month-to-month paying customers surged 89% within the third quarter from a 12 months in the past to fifteen million, fewer than 8% of its month-to-month lively customers of 197.2 million.
The a lot bigger video streaming platform iQiyi — owned by Baidu — mentioned earlier this week that subscribers fell barely to 104.8 million as of Sept. 30, versus 105.8 million a 12 months in the past. Complete income fell 3% to 7.2 billion yuan.
IQiyi did say it could focus extra on monetization of enormous screen-related companies on condition that the entire time customers spent on TV not too long ago surpassed that on the cell gadgets. The corporate didn’t present particulars on the period of time spent or when the milestone was crossed.
Nasdaq-listed iQiyi is holding onto a roughly 7% acquire for the 12 months up to now, after climbing greater than 40% final 12 months.
In distinction, Bilibili shares are up greater than 150% year-to-date. Each firms have a market capitalization of about $16.6 billion.
In the meantime, Bilibili is trying to increase extra capital. Amid ongoing U.S.-China tensions, the Chinese language firm is making ready for a secondary itemizing in Hong Kong that would increase as much as $1.5 billion, an individual aware of the matter instructed CNBC in October. The itemizing will probably happen subsequent 12 months.
— CNBC’s Arjun Kharpal contributed to this report.