The failure of the capital market stems from the dismal performance of Litchi FM.
The market value of the first audio stock Litchi FM has shrunk by 60%
Recently, Litchi fm‘s market value has shrunk by 60%, from 500 million US dollars to less than 100 million US dollars.
Litchi FM was listed on Nasdaq at the beginning of this year and became the first online audio stock. Since its listing, the stock price has fallen all the way, from the issue price of $11.63 to about $2 today.
The failure of the capital market stems from the dismal performance of Litchi FM. It is reported that the monthly paying users of Litchi FM account for less than 1% of MAU, the user growth rate is weak, and the market growth rate is also slowing down.
In Analysis In the September 2020 APP rankings released by the data, Litchi FM ranked 167th , Himalayas and Dragonfly fm ranked 40 and 148 respectively. Among the three long audio , Litchi FM is the bottom.
Previously, the long audio industry once formed a three-legged pattern of litchi, Himalaya and dragonfly. With the recent two years of Tencent, Byte Beat, NetEase Cloud Music, Kaishou etc. entered the game, competition in the long audio industry gradually intensified, and the three long audio giants such as Litchi are facing challenges. In 2019, Tencent QQ Music launched the “Listening to Books” section, providing audio novels such as “Celebrating More Than Years” and “Grave Robber Notes”. In April of this year, Kuwo Music, a subsidiary of Tencent Music, also launched a full-voice audio platform “Kouwo Chang Listening”, including long audio, which covers audio novels, storytelling comics, storytelling songs, emotional variety shows, etc. In June of this year, “Tomato Listening”, a subsidiary of ByteDance, was launched, featuring long audio content such as web articles and novels. NetEase Cloud Music also launched the “Sound Theater” this year, featuring long audio content such as radio dramas and audio books. Kuaishou was also exposed to the long-term audio product “Kayak”. A few years ago, Station B acquired Maoer FM.
According to data from iResearch, the market size of my country’s network audio industry reached 17.58 billion yuan in 2019, a year-on-year increase of over 55%, and the number of users is nearly 500 million.27 billion yuan, and the number of users is expected to reach 540 million. Among them, 70% of respondents are willing to pay.
Editor-in-chief’s comment: Litchi FM was brutally defeated by Waterloo in the capital market, which sounded the alarm for the long audio industry. Although the development prospects of the entire online audio industry are attractive, and the long audio market penetration rate is still relatively low, it has also attracted the entry of Internet giants and head video platforms. However, it should be seen that long audio is compared with online music and online K songs. It is a relatively niche market, it is difficult to acquire customers and the ceiling is relatively low. At the same time, the content of the players in the long audio field is not much different and tends to be homogenized. So far, no one has really established a content moat to stand out…
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