Douyu Q3 financial report: competition dives into deep water, Douyu enters the harvest season

In the context of the Internet in 2020, the mention of “live broadcast" almost must be linked to hundreds of millions of GMV .

But we have actually pointed out before that the current live broadcast itself has already A different fork in the road. The first category is a typical media-driven type, or “industrial live broadcast," which is simply to use live broadcast as a tool to improve the profitability of the industry. The most typical one is the live broadcast that has been pushed to the forefront this year, which solves the problem of monetization efficiency of e-commerce or content platforms.

The other category is content-driven, or "live streaming industry" , The core is that live broadcast as a branch continues to expand to more pan-entertainment content products, the most typical is the game live broadcast platform such as Douyu Huya.

But in the Internet industry, the volume of sound is often not positively correlated with prosperity . O2O, sharing economy, second-hand cars... The hottest period of the money burning war is also the period when the business model is the roughest. On the contrary, the pattern has been set. After the flag died down, the heads began to announce the continuous improvement of operational efficiency, and the increase in user scale and revenue and profits.

The same goes for live broadcasts. On one side of the e-commerce live broadcast, the frequently exploded sky-high price pits, data flooding, and star rollovers have put a question mark on its sustainability. But on the other hand, "traditional" content-driven live broadcasts-such as Douyu, are jumping out of our previous observation logic of the live broadcast industry-not only the business model has become more mature, but it also shows more potential.

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This is the most intuitive Q3 financial report released before Douyu days ago The embodiment.

What is hidden in the Q3 earnings report?

Douyu’s Q3 earnings report highlighted the word “stable".

The reason why I say so is that Douyu gives a copy of each dimension The financial report is eye-catching enough. As Douyu founder and CEO Chen Shaojie said: "Betta continued to perform strongly in operations this quarter, showing the company's ability to continue to grow."

Let’s make a point:

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First, MAU hit a record high; data shows that the overall MAU of the Douyu platform reached 194 million, a year-on-year increase of 18.6%; mobile MAU reached 59.6 million, a year-on-year increase of 14.4%.

Secondly, the quarterly paying users rose sharply: Douyu’s paying users this quarter The number increased to 7.9 million, a year-on-year increase of 12.7%.

Third, revenue and net profit grew steadily year-on-year; this quarter Fish achieved revenue of 2.55 billion yuan, a year-on-year increase of 37%. Based on non-US GAAP, net profit was 98.72 million yuan, a year-on-year increase of 36.8%.

Partial students at the financial level often mean that the company Data has sacrificed operational efficiency, and Douyu's steady financial report this time reflects at least two aspects of the problem.

On the one hand, the industry as a whole faces a background of slowing growth Next, Douyu found a new growth engine. After the growth rate reached its peak in 2017, the online live broadcast industry has been slowing down for many consecutive years. According to data released by iiMedia Consulting, the growth rate of online live broadcast users reached a high of 28.4% in 2017, and has fallen all the way. In 2020, it has fallen to less than 5%.

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The extremely low growth rate of the market means that the demographic dividend has basically reached the ceiling, and stock competition has become the main theme of the industry. On the other hand, Douyu's overall growth rate of 18.6% and mobile terminal 14.4% are properly higher than the market. The reason behind it is very intuitive:

On the one hand, fighting fish has a stronger The ability to leave the circle has unearthed only a few incremental users; on the other hand, Douyu's efforts in improving user stickiness have achieved obvious results, and the frequency of users' consumption of content has increased.

The above two points are also achieved by the double increase in revenue and net profit The embodiment. Revenue increased by 37% and net profit increased by 36.8%. The two data are at the same magnitude, which means that the investment-output ratio of Douyu is extremely well controlled. Almost every piece of cost input can be exchanged for the same amount of profit. This reflects two facts. One is that Douyu's operating capability is up to standard and its revenue structure is sufficiently healthy;

Secondly, from the perspective of the entire industry, the monetization model of live streaming that has been questioned in the past few years has become very mature in the continuous polishing of Douyu , A stable business model with certain anti-risk capabilities.

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Therefore, looking at this financial report as a whole, it is not difficult to draw a conclusion: Today's fighting fish can no longer be observed with the old eyes of the past few years. It can even be said that the entire live broadcast industry has entered the next deep water zone.

Competition dives into deep water, fighting fish enters the harvest season

In the past few years, the fierce competition in the live broadcast industry, the most direct result is that "all the cards that can be played have been played", creating a high level Homogeneous platform. Needless to say, the expansion of outdoor areas outside of games, self-made variety shows and offline festivals have almost become standard.

Then the problem is here. Faced with a high degree of homogeneity, it has already entered In the existing competitive market, how did Douyu differentiate and enhance its competitiveness, and then outperform the market in terms of data? In our opinion, there are at least three aspects:

First, the basic skills of fighting fish Solid enough to ensure the continuous supply of high-quality content;

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For the live broadcast platform In other words, what are the basic skills? The basic skill is to continuously tap the head anchor and make stars.

Behind this is the ability to continuously output high-quality content, which is based on the market Reasonable pricing given by law. That being the case, then, in turn, there is actually a two-way choice between the top anchor and the platform to some extent, and what matters is the platform's traffic, operation, and commercial operation capabilities.

And this is the core competence of Douyu for many years, there is a live broadcast The old stalker in the circle-"Iron Fighting Fish, Liushui Brother", said that as the "anchor Huangpu Military Academy", Douyu, based on its strong platform ecology and operational capabilities, can always continue to create the industry's leading anchor.

Whether it’s the "E-sports Whampoa Military Academy Principal" PDD and " Gold Medal Lecturer "Da Sima," PlayerUnknown's Battlegrounds anchor Xiao Tuantuan and Duan Meier, who are regarded as navigation voices by countless people, are still countless stalkers and the most beautiful CS:GO anchor eggplant in the gaming circle, and DNF anchor Xu Xu baby, almost Most of the top streamers of every mainstream game belong to Douyu.

Under the long-term contract with Douyu, they not only stably Each district of Douyu outputs high-quality content, which can be used as an "arrow" for Douyu to break the circle, and has a strong siphon effect on potential new live broadcast users that continue to expand.

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Secondly, fighting fish is not only a stable head, it also passes The continued increase in the construction of the e-sports ecosystem is expanding the user base.

In the third quarter, Douyu continued to continue from multiple levels Increase investment at the level of the gaming industry chain. On the one hand, by continuously increasing the top copyright content, it has brought a steady stream of strong traffic to the platform.

For example, the copyright level of the event includes the League of Legends LPL Summer Game, the glory of the king The World Champions Cup, PlayerUnknown’s Battlegrounds PCL Summer Games and other 50 events are copyrighted; especially after the Dota2 top event TI was temporarily unavailable, the Major online event OMEGA, which was temporarily replaced by the Dota2, was won by Douyu as a unique player from the sea election to the final. Broadcast rights.

On the other hand, the depth of the team/player lineup is continuously improved to make The content ecology will not be solidified by its own strong top streamers, but will continuously inject the live water of the competition.

In addition to investing in the King Glory DYG team and the League of Legends estar team, Signed contracts with 50 teams including TES, JDG, DWG, and popular players such as Jackeylove, Doinb, and Faker. Although it is reflected in the financial aspect that the cost has risen this season, the reserve army composed of players and teams will inevitably further enhance the depth of content for Douyu.

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It is worth noting that Douyu does not only rely on outsourcing/contracting to obtain copyrighted content, but also produces its own content based on its own brand and content sense. For example, the Fighting Fish Gold Grand Prix S10, Fighting Fish Wilderness Brawl Star Tournament, Fighting Fish Wilderness Brawl Fighting Bounty Competition and other 50 private-label events, and "It's Dinner!" Pan-entertainment content such as "S10", "Truth Research Institute", "Explaining New Forces"

Finally, iterate around the upgrading of content consumption experience technology, making live broadcast as content Yuanliu's productivity is further improved.

Compared with the large investment in copyright, technology upgrades are often easily Ignore. But in fact, investment as an infrastructure level can often play a subtle role in improving user consumption experience and even further increasing user scale.

Let’s give an example in the same category of competitive sports. In the early years, when the NBA's online live broadcast copyright was still held by Sina, it was still a minority group that watched the live broadcast online. However, after being taken over by Tencent Sports, it not only doubled the number of live broadcasts to achieve full coverage, but also attracted a large number of fans to recharge members through higher definition, lower latency, and switching of multi-camera perspectives.

The root cause is that, on the one hand, an event takes several hours at every turn, often Fragmented viewing requires smooth viewing anytime and anywhere with various network conditions; on the other hand, competitive sports values ​​technical details, such as various micro-manipulations in the League of Legends, which often ultimately affects the direction of the entire game, which is similar to the NBA It is a truth.

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With this perspective, in the third quarter, Douyu is in H.265 A breakthrough has been achieved in coding technology, with full-speed playback of HEVC 1080P 60-frame full-HD video on the Web; and real-time review of the accurate marking of "kill" and "team battle" anchor points based on AI technology. These technical iterations will obviously be further Open the user experience position with other platforms, give users a stronger sense of immersion, and further enhance the possibility of live broadcast as the source of content for video dissemination and even secondary creation.

What’s more worth looking forward to is that in the field of cloud gaming followed by many giants , Douyu has launched the 2.0 beta version. At a time when the business model of cloud gaming is still unclear, “live streaming cloud gaming" is another important path besides charging on time.

The next step for fighting fish: the foundation of a new generation of cultural circles

After analyzing the visual display of the financial report level, it is necessary to talk about some invisible changes-fighting fish is becoming The foundation of a new generation of cultural circles. The logic is very simple. The game itself is one of the most important circle cultures. Strategies, skills, tactics and other content inherently have strong social sharing needs, but due to the decline of forums, the satisfaction of this demand is urgently needed to be transferred.

On the live broadcast platform, the "host bullet screen" is superimposed on the basis of the game. ", similar to "KOL Post Bar" in essence, creates a richer social scene, which largely inherits the value of previous game forums.

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In other words, on the one hand, fighting fish has soil (various occupations/pre-professionals Professional content production composed of player teams), coupled with the current water resources (the synergy formed by the major shareholder Tencent in the upstream, the opportunity for new games to continue to become popular) Douyu's continuous investment in the construction of fish bar content, cloud games and other innovative business models ), has actually constituted a complete closed loop.

In the product field, there is a classic theory called "three One of the core logic is “high-frequency push low-frequency"-live broadcast and fish bar are relatively high-frequency content consumption. With the help of the strong output ability of circle culture, it includes game promotion and event operation. The lower-frequency industrial chain services in China may become the highlight of Douyu's next stage.

Tags: Tian Nan Hai Bei Qing Harvest