Company Profile

The Bilibili video site was founded on June 26, 2009 and was officially named “Bilibili” in January 2010, affectionately known by fans as “Station B.”BiliBili has also rapidly become one of the largest gathering places of the domestic secondary population by virtue of the secondary content. There is no charge, no advertisement, and a membership access mechanism formed by questionnaire answering. All of these are destined that station B does not belong to the same track with other video websites at the beginning. The different path makes station B incubate a mature secondary community mode, and precipitate the next batch of highly viscous fans, becoming a secret “spiritual home” in the domestic video website.

By the end of 2017, a total of 31.6 million users had passed the original “100 questions community” formal examination of station B, becoming “formal members”, and the retention rate of formal members of station B exceeded 79% in the 12th month. 81.7% of the user groups are young people born between 1990 and 2009, and station B calls them “generation Z” in China.

(Generation Z (after 90-00 in China) is a unique generation, benefiting from rapid economic development, generally good material conditions and education. At the same time, it is a “network native” born in the Internet tide, with a strong sense of online entertainment consumption demand and payment. It is expected that 62% of the consumption in China’s online entertainment market will be contributed by 90-00 later by 2020. This power will also have a profound impact on the world entertainment market.)

Bilibili started with ACG (animation, game) related content, and gradually developed into a website with secondary animation, house culture as the theme and real-time bullet screen as the main feature. At present, it has 14 major sections, including animation, Fanju, guochuang, music, dance, game, science and technology, life, ghost animal, fashion, advertising, entertainment, film and television and projection hall. The real-time review function (bullet screen) experience suspended above the video will be based on the Internet bullet screen, which can be limited by the supermarket entrance, build a wonderful synchronic relationship, form a virtual tribal atmosphere, and become a cultural community with highly interactive sharing and secondary creation.

Station B has been closely focusing its operation strategy on the younger generation of users in China, and has put forward the concept of “I am the user” – get along with users equally and think about transposition. This promotes station B to become a landmark brand in the eyes of the younger generation of users in China. Station B firmly binds itself to the new generation of users in China. Its mission is to “enrich the cultural life of the young generation of Chinese”.

Business model

We represent the iconic online entertainment brand for the young generation in China, providing high-quality content and immersive entertainment experience. Based on the strong emotional connection between users and our content and community, we have established our own brand. We started as a content community dominated by animation, animation and games (ACG), and then developed into an all-round online entertainment world, covering a wide range of content styles and media forms, including video, live and mobile games.

At present, we have become the base of the Chinese young generation’s multicultural and interest, as well as the base of discovering cultural trends and phenomena. According to questmobile’s data, in terms of the total number of months in 2017, our average time spent per device per month and average visits per device per month rank first in the online video platform, and become an integral part of China’s online entertainment industry. We believe that China will become the world’s largest online entertainment market in the future, and our brand awareness and market leading position in the young generation of China will put us in an advantageous position to seize these important opportunities.

We attract users with interactive content, retain users with active communities, and plan appropriate content to meet users’ entertainment needs. We have successfully developed an ecosystem of highly engaged users, high-level content producers, and business partners, forming a virtuous circle of commercialization.

Investment Highlights

The monthly active users of station B are 71.8 million, and the average daily use time of users is 76.3 minutes. 81.7% of the users are young people born in 1990-2009. Stickiness is high, paying habits are good, young, the characteristics of B station users are the most coveted group of players. This also explains why game revenue is the main revenue of this video website.

In fact, the business model of station B is very simple, that is, it focuses on the video content uploaded by up, supplemented by the purchase of high-quality copyright, live broadcast, music and other forms, creates an active community atmosphere to attract traffic by using the pop-up function and other functions, and is a traffic vendor in the subdivision field through the product change characterized by “quadratic”. But its users use mobile app for 76 minutes and watch 2.11 times a day on average. And the loyalty of official members is very high, the retention rate last year was about 80%.

From the source of revenue, we can find that as a website with online video as its main business, the proportion of live broadcast business and advertising business in its main revenue is very low, and the largest source of revenue is from games. According to the data, in 2017, the revenue of game business accounted for 83.4% of the total revenue of station B. by the end of last year, station B had independently represented and issued 8 games and jointly issued 63 games, with an average monthly paid user of 609300, an increase of 140% year on year. At the same time, the live broadcast of the game theme is also popular. Provide independent R & D games, exclusive distribution games and joint operation games, and recommend games to users through big data analysis of users’ interests and behaviors. Let it have 9 million mobile game monthly active users in 2017, an increase of about 300% year on year.

The global population of generation Z is about 328 million, of which 24% is located in China. Generation Z is the core force to promote the online entertainment market in China. In 2017, the scale of China’s online entertainment market was about 48.4 billion US dollars, of which generation Z contributed 55%. By 2020, the scale of China’s online entertainment market is expected to reach 99.7 billion US dollars, of which generation Z is expected to contribute 62%.

The unique “generation Z” user group attracts all major brand advertisers; huge traffic is the basis of advertising; monthly average advertising revenue of active users has great growth potential.

Bilibili started with animation, comedy and games, and now its content has expanded to music, entertainment, technology, lifestyle, fashion and E-sports. Understand the needs of users and provide them with appropriate content and services. This efficient matching benefits from big data analysis based on user interest and behavior. There are a large number of potential anchor candidates; an active and high viscosity community builds an emotional bridge between the anchor and the fans; deep understanding of user interests will ensure accurate recommendation; the rate of live broadcast reward is significantly increased.

Industry outlook

Online entertainment is a fast-growing industry in China. According to iResearch’s report, China’s online entertainment industry reached 205.8 billion yuan in 2016, and is expected to reach 752.7 billion yuan by 2021, with an annual CAGR of 29.6%.

In particular, we need to point out that “generation Z”, a generation born in China between 1990 and 2009, is redefining the online entertainment industry, because this group grows up in a unique social environment, especially considering the following aspects: 1) consumption upgrading to meet cultural needs; 2) deep popularization of the Internet in daily life; 3) strong demand for self-expression. According to Ariel’s report, the total population of generation Z in 2016 reached 328 million. In terms of consumption, their contribution to China’s online entertainment industry accounted for 45.8% in 2014, 54.8% in 2017 and 62.1% in 2020.

Traditional media can not meet the continuous development of entertainment needs because it provides limited content in a single “one-way” way. Therefore, online entertainment, diversified content and interactive functions driven by mobile Internet and technology have become mainstream media forms. High quality content attracts and retains users, which in turn drives content providers to produce more engaging content.

This virtuous circle promotes the healthy development of online entertainment industry. A large number of “generation Z” users actively participate in the production and promotion of content, rather than just passive content viewing and consumption. By the end of 2016, there were 636 million online entertainment consumers in China, who spent an average of 1.4 hours a day on online entertainment, according to iResearch. Among them, 282 million people belong to generation Z, and spend more than 1.6 hours on online entertainment every day.

The rapid development of China’s online entertainment industry meets the needs of “generation Z” for high-quality content. They cover a wide range of topics, including animation and animation, games, music, fashion, lifestyle, technology, film and TV series. With the growing demand for a variety of entertainment content, key areas of the online entertainment industry, including video, games and live broadcast, are growing exponentially.

DOMATTERS CAN HELP YOU

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