Folks go to the video platform Bilibili stand throughout the 2020 China Digital Leisure Expo & Convention (ChinaJoy) at Shanghai New Worldwide Expo Middle on July 31, 2020 in Shanghai, China.
Zhou You | Visible China Group | Getty Pictures
BEIJING — Some of the standard video and gaming apps amongst China’s youth, Bilibili, determined for example its quarterly earnings report on Thursday in a quite unconventional method with the discharge of a rap music video.
The Nasdaq-listed firm is among 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 seems to be like a luxurious white TV cartoon “head” — within the fashion of the American DJ Marshmello — the lead performer prances a few futuristic, house 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.”
One scene options the primary actor because the anchor of a tv information broadcast.
Headlines roll throughout the underside of the display with the next captions:
- In keeping with (Bilibili’s) third quarter earnings launch, our MAUs (common month-to-month energetic customers) elevated by 54% year-over-year.
- In August, our MAUs exceeded 200 million, marking a brand new month-to-month report.
- The common day by day video views in Q3 reached a report excessive of 1.Three billion.
- The common day by 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 primary performer on the finish.
The closing caption reads: “All of the movies you are excited by are on B station,” in response to a CNBC translation of the Chinese language textual content that makes use of a colloquial time period for Bilibili’s platform.
The Tencent-backed video streaming platform has surged in recognition this yr in an trade that is crowded with gamers corresponding to iQiyi and ByteDance’s Chinese language model of TikTok, Douyin.
Analysts have mentioned modern content material is a part of the explanation 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 ranking 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 ranking from simply over 14,400 reviewers on Douban — decrease than the earlier season which noticed a 5.Three ranking 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 effectively over a 3rd of its income from cell video games. Whole web income within the third quarter rose 74% year-on-year to three.23 billion yuan (roughly $490 million), in response to a launch. The corporate expects fourth quarter web income of three.6 billion yuan to three.7 billion yuan, a rise of at the very least 79% from the identical interval a yr 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.
Turning consumer development into income continues to be a problem for video streaming firms. Many individuals in China are nonetheless not used to paying for content material, whereas firms usually want to take a position 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 yr in the past to 15 million, fewer than 8% of its month-to-month energetic 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.Eight million as of Sept. 30, versus 105.Eight million a yr in the past. Whole income fell 3% to 7.2 billion yuan.
IQiyi did say it might focus extra on monetization of huge screen-related companies on condition that the whole time customers spent on TV lately 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% achieve for the yr to this point, after climbing greater than 40% final yr.
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 might increase as much as $1.5 billion, an individual conversant in the matter instructed CNBC in October. The itemizing will seemingly happen subsequent yr.
— CNBC’s Arjun Kharpal contributed to this report.