The “fish and tiger” fight continues.
Author|杨博丞
Editor|Egg total
Financial performance is average
The competition between “fish and tiger” is still going on.
According to the 2019 Q2 report of Tiger Tooth and Betta, there is still a loss in both. At the same time, the prospects of tiger teeth and betta are also worrying.
Huya’s financial report shows that its total net revenue for the second quarter was RMB 2.0105 billion, up 93.6% year-on-year; the net profit attributable to Huya was RMB 121.8 million, a loss from the net loss of RMB 2.125 billion in the same period last year.
Betta fishery reported that its second quarter revenue was 1.872 billion yuan, up 133.2% year-on-year; net profit was 23.2 million yuan, a loss of 228 million yuan in the same period last year, and adjusted net profit was 52.6 million yuan. The same period last year was a loss of 221 million yuan.
According to the comparison of the two data, the net profit difference is more than 7,000 yuan. Overall, the net profit of tiger teeth is higher than that of betta. However, the overall profit of Huya has shown a slowdown, which is an increase of 1 billion yuan compared with the same period of last year, and an increase of nearly 400 million yuan compared with Q1.
At present, the market value of tiger teeth is still far more than fighting fish.
In this regard, the founder of the fighting fish, Chen Shaojie, said in his earnings conference call that he said the difference between the two, “the difference between the two is very small, everyone is doing live games.” This also shows that fighting fish The homogenization competition with Huya is still inevitable, and the competition in the live game field will be more fierce in the later period.
In addition, the opponents of the short video field platform are also constantly attacking the game live broadcast field, such as vibrato, fast hands have also joined the camp, making the tiger teeth and fighting fish regenerate pressure.
Subsidy is not a long-term solution
From Huya’s financial report, the cash and cash equivalents for the period were 1.336 billion yuan, an increase of 743 million yuan over the same period last year, but the short-term investment was 800 million yuan over the same period last year. From the current point of view, Tiger’s revenue on short-term investments still accounts for a portion of total revenue.
At the same time, its operating costs are also increasing, an increase of 800 million yuan over last year, but the general and administrative expenses fell 16.0% to 74.3 million yuan compared with 88.5 million yuan in the same period last year.
The reduction in this portion of the expenditure was mainly due to the change in the managerial incentive plan for Tigers during the quarter, the related equity incentive expenses decreased, and the number of managers increased.
In addition, “Bullet Finance” also noted that during the quarter, Tiger Tooth Live Stream business revenue increased by 93.7% year-on-year to 1.915 billion yuan, compared with RMB 991.8 million in the same period last year.
This growth should be mainly due to the increase in paying subscribers and the increase in the unit price of paying subscribers, while the growth of paying subscribers may benefit from Tiger’s change in content and improved related product experience.
Again, fighting fish isThe growth in live streaming business also comes from paid users. But the paying users of fighting fish are achieved by partial subsidies.
At the beginning of this year, Betta held a sweepstakes. The more gifts a fan sends, the greater the chance of winning. The user can sell the obtained shark fins to the recycler through other channels to cash.
In addition, in May of this year, Betta also launched a fan welfare agency activity. Users only need to give gifts and pay attention to the anchor to participate in the game to win cash red packets. In order to attract users to participate in the lucky draw, some anchors even released 10,000 yuan in cash.
In terms of business model, this kind of red envelope subsidy is not long-term, and it will eventually consume a lot of money from the company, and it will not bring any increase in fan stickiness.
As a result, fighting fish Q2 revenue increased by 133.2% year-on-year to 1.873 billion yuan, which was mainly driven by the growth of live broadcast revenue.
According to the financial report, this quarter’s live fish revenue increased by 156.0% to 1.708 billion yuan, which is said to be boosted by the continuous cultivation of user payment habits, paying users and average per-user revenue growth.
At the same time, the financial report also shows that the current number of paid users of Tiger’s teeth is small, but the live broadcast revenue is higher than the fighting fish, which shows that the ARPU (average revenue per paying user) value of Tiger’s teeth is higher, for each paying user. The willingness to pay is also stronger.
In terms of the cost of fighting fish, its revenue cost increased by 104% to 1.572 billion yuan, of which content cost and revenue share contributed most of the increase in revenue costs.
In terms of overall user data, the average monthly active users of Betta Q2 was 162.8 million, an increase of 32.6%. The average monthly active users of Huya is 143.9 million, an increase of 57.3%.
Compared with the size of the monthly users, the fighting fish is higher than the tiger teeth, but subdivided into the mobile end, the 55.9 million monthly life of the tiger teeth is higher than the monthly life of 50.6 million.
In this regard, Chen Shaojie said in a conference call, “In the live broadcast revenue, the mobile terminal revenue ratio is higher than the PC end, and the payment rate is also higher.” Tiger tooth CEO Dong Rongjie said, “Huya mobile user contribution More than 80% of live broadcast revenue.”
The two platforms are highly dependent on the anchor
In terms of income composition, the source of income for betta and tiger teeth mainly consists of two parts: live broadcast, advertising and others.
Among them, live broadcast is still the main component of the two incomes. According to the financial report, 2019In Q2, the live broadcast income of Betta fish was 1.708 billion yuan, a year-on-year increase of 156%, accounting for 91.23% of the total revenue; the live broadcast income of Huya was 1.921 billion yuan, an increase of 93.7%, accounting for 95.57%.
At present, under the momentum of the thousand broadcasts, the live bonus began to disappear gradually, but the revenue of the live broadcast industry is still growing at a high speed, and the growth rate of users has begun to slow down.
According to the overall revenue before, the revenue and share of Huya’s live broadcast business is rising, but it tends to be flat, which indicates that Huya’s excessive dependence on the live revenue business. Similarly, fighting fish is also very dependent on the live broadcast revenue business.
For both, the anchor and content on the platform are the key to attracting users, but these two factors have also become a stumbling block in the development of Tiger’s teeth, and this is one of the problems facing betta.
In the current increasingly fierce market competition, the importance of the anchor is related to the overall revenue of the live broadcast. In the absence of a crucial anchor lineup, it is equal to the platform missing a leg, its revenue and membership payment. There will be some impact.
In the month when the fighting fish went on the market, there was the “Qiao Biluo” incident, which caused the fighting fish to be in a public opinion dilemma.
On July 23rd, the betta anchor “His Chris Bishop” and another anchor “Mix” Haruko were connected to PK.
In the live broadcast process, the anchor “Hiking Champion” was forgotten to use the animated picture to cover the face due to operational errors, resulting in the exposure of his true appearance, and emphasized “I am the value anchor” during the live broadcast. The anchor was then blocked by the fighting fish and all its contents were removed.
The incident came out, the public opinion was awkward, and even the regulatory authorities came to talk about fighting fish. The fighting fish that had just been listed for less than a month experienced such a big storm.
This is not the first time that fighting fish has been involved in the content of the anchor.
On April 3, 2019, the fighting fish exposed the incident of the anchor tracking Chen Guanxi, which triggered a hot discussion on the Internet. At that time, the official microblog of the Network Culture Working Committee of the China Cultural Management Association stated that “Betta fish should bear greater responsibility for the content posted on the platform”.
Highly dependent head anchors will be subject to anchors, which is a major drawback of the live broadcast platform and one of the risks that no one can avoid, including tiger teeth. Fighting fish said when talking about risks, “We may not be able to attract, cultivate and retain some big anchors, which may affect our user retention rate, which will adversely affect our business and operations.”