Can BilibIli which has 30,000 virtual anchors, ride the east wind of the Metaverse?

Perhaps, BilibIli needs Metaverse, but this is not an overnight effort.

It is not new for Internet giants to conquer cities in the Metaverse, and Chen Rui, chairman of BilibIli added the word “most” to it, which ignited people’s curiosity and public opinion.

On November 17, BilibIli announced its third-quarter financial report. Chen Rui, Chairman and CEO of Station B, talked about the “B Station Metaverse Concept” in the earnings call, saying that “BilibIliis the most suitable for China to achieve.” One of the companies with the concept of “Metaverse”.

Immediately after December 6, Tech Planet disclosed the news that BilibIliwas testing the “high-energy chain” related to the Metaverse business, saying that this chain was launched to create the Metaverse ecology of BilibIli.

However, these news did not boost the share price of BilibIli.

In the recently announced third-quarter financial report of BilibIli the performance of the data was not impressive. The slowdown in the development of the game business sector, rising costs, investment losses and other bad news made the stock price sluggish.

Moreover, the Metaverse business of BilibIli is still in the element development stage, and there is no detailed development plan or product landing.

Perhaps, BilibIli needs Metaverse, but this is not an overnight effort.

Metaverse only owes east wind?

What will life in the Metaverse look like in the future? Maybe there are multiple answers to this question, but there is one thing that cannot be missed, that is, people. This includes virtual identity, virtual image and immersion.

In the Metaverse, we need a digital ID card, a body, and a high bond between consciousness and the body, but the virtual image should not be too similar to the real person to avoid the “horror valley effect”. Therefore, many people in the industry believe that the dimensional virtual Image will become a more common physical state in the future.

According to the observation of “Lianxin”, there are currently four types of virtual human gathering platforms in China. Among them, the short video pie “Liu Yexi” with the highest traffic is rooted in Douyin; the photo pie “AYAYI” with fashion advertising positioning is active in Xiaohongshu; in addition, a group of functional virtual people are active in their own brand promotion The first line, such as HUAWEI CLOUD’s “Yunsheng” and OPPO’s “Xiaobu”, etc.; while the dimensional virtual person is concentrated in BilibIli.

Can BilibIli which has 30,000 virtual anchors, ride the east wind of the Metaverse?

In his speech on the 12th anniversary of BilibIli , Chen Rui mentioned that in the past year, a total of 32,412 virtual anchors started broadcasting at station B, a year-on-year increase of 40%; related broadcasts increased by 70%; virtual anchors’ live barrage interactions increased. It doubled directly.

The well-known brand IP incubator Chen Gray also told “Lianxin” that a small-scale self-circulation has been formed in the V-TUBER channel of BilibIli, and the head virtual person such as A-SOUL has already made profits.

In addition, BilibIli is still trying to make breakthroughs in terms of immersion. In January and November 2021, the virtual musical “The Voice of Creation” and the world’s first pure virtual idol T stage show “Bilibili Vup Collection virtual fashion” were launched respectively. “Big Show”, through the cooperation of CGI, AR, and VR technologies, creates a virtual human content matrix that runs through the entire online and offline media, which makes people immersed in it.

But this is not enough. For virtual characters to live, they also need material materials and ownership. This corresponds to the NFT that can support the metaverse economic system and the blockchain technology needed to build the NFT.

The “2021 Yikai Capital Metaverse Report” shows that building NFT requires three basic elements-creators and cultural IP, technical support and platform issuers, community communication and collectors. On the other hand, there are 72 million daily active users at  BilibIli who are busy with community communication, 2.7 million monthly active UP owners are busy creating, and the average monthly video submission volume exceeds 10 million. There are also 24 million monthly paying users acting as collectors, which fully meets the conditions for constructing NFT. .

According to this condition, it is not difficult for users of BilibIli to NFT their videos, and may be the “dongfeng”.

According to screenshots released by Tech Planet, the application scenarios of High Energy Chain are “digital collection”, “digital identity” and “digital world”. Digital collection corresponds to NFT, identity corresponds to blockchain address, and digital world corresponds to Metaverse. The ecological and radiation range is very comprehensive.

According to the official at BilibIli , the high-energy chain currently focuses on content copyright protection and digital work ownership certification.

Can BilibIli which has 30,000 virtual anchors, ride the east wind of the Metaverse?

(Screenshot of the official website of High Energy Chain)

Yu Jianing, Executive Director of the China Mobile Communications Federation’s Metaspace Industry Committee, once said: “Currently, there is relatively little information disclosure about the high-energy chain. Judging from the current information, the high-energy chain is more likely to be a private chain in the initial stage. Private chain The right to keep accounts is only in the hands of one person or an institution, which is not much different from traditional centralized systems in essence.”

Urgently waiting for new stories

For a long time, the impression that BilibIli has given the outside world is mostly a “game company with a bullet screen”. In 2018, its game business revenue even accounted for more than 80% of its total revenue, which clearly shows its dependence on the profitability of the high-margin game business sector. It is precisely because of this that after the listing, BilibIli adjusted its business lines and increased investment in value-added services, advertising, e-commerce, and other businesses to promote revenue balance.

Judging from the results of the three quarterly reports, this move is indeed effective. Advertising business revenue was 1.17 billion yuan, a year-on-year increase of 110%, becoming the fastest growing business segment. E-commerce and other business revenue reached 730 million yuan, a year-on-year increase of 78%, and game business revenue was 1.39 billion yuan, a year-on-year increase of 9%, accounting for The proportion of total revenue has dropped to 26.7%.

However, the newly launched advertising sharing plan has raised the cost of the platform, resulting in a year-on-year growth of 83%, while the gross profit margin of the live broadcast business is low, and the increase in its revenue share does not contribute much to profitability, but is a game with high gross profit. The slowdown in business growth caused the loss of BilibIli to soar.

According to the third-quarter financial report of BilibIli, the input and output of the game part of BilibIli are not coordinated. “Mobile game promotion expenses” accounted for more than half of the operating cost, but even so vigorously publicized, “Mobile Fighter: Fusion” , “Sword Art Online Black Swordsman: Ace”, “Destiny: Grand Position Designation” and other games have not achieved outstanding results, making the growth of the game business weak.

Although the multi-line business layout of BilibIli makes its revenue ratio relatively balanced, it also decentralizes its business, making the main business sector less prominent. In addition, this year’s B station’s frequent actions in the investment field also affected its financial status.

According to incomplete statistics, BilibIli has publicly invested more than 40 companies abroad this year. Except for the entertainment field, its tentacles extend to food and beverage, apparel, and news information websites. However, this part of the investment was affected by the “changes in the fair value of the investment in listed companies”, resulting in an investment loss of 724 million yuan in the third quarter, a year-on-year increase of nearly 5000%.

Looking at the financial report of BilibIli, although the revenue of BilibIli in the third quarter rose to 5.207 billion yuan, an increase of 61% year-on-year, at the same time, the net loss amount also reached a record high of 2.686 billion yuan, an increase of 144.01% year-on-year, month-on-month. Expanded by 212.33%, the rate of loss far exceeded revenue growth and also exceeded iQiyi’s net loss of 1.7 billion yuan during the same period.

Can BilibIli which has 30,000 virtual anchors, ride the east wind of the Metaverse?

(Screenshot of third quarter financial report of BilibIli)

Because of this, on the day the earnings report was released, the US stock price at BilibIli fell 7%, and the stock price continued to decline by 17.2% the next day. On the third day, BilibIli Hong Kong stocks announced a “short trading halt.”

Difficulties lead to change. In the face of slowing game growth, foreign investment hard to see results, and limited growth in revenue structure adjustments, BilibIli must find a new path to break through and tell the market a “new story”. In 2021, the “Metaverse” concept fires, and BilibIli sees new opportunities.

According to the “2021 Yikai Capital Metaverse Report”, the metaverse segment includes five parts, namely games, virtual people, blockchain (NFT\Defi), VR/AR, and social networking.

Looking up, games and virtual people are the housekeepers of BilibIli. The huge video library is an important content pool for transforming NFT. A strong community atmosphere has always been the foundation of its foundation. In addition, it has been applied since 2018. With patented technologies such as VR, the meta-universal elements of BilibIli have been completed, and a new business story may be “crafted” by the high-energy chain for a little connection.

Let the bullet fly for a while

From the current point of view, the concept of Metaverse is too broad, and everything can be linked to it, and even the positions of the builders are inconsistent.

Some believe that technology is the first, such as Baidu, which is deeply involved in AR; some are optimistic about the virtual human track, such as NetEase; some like the game field, such as investing in the Chinese version of “Roblox” Bytedance, and Microsoft directly engages in enterprises. Meta-universal. Everyone wants to be in a good position from the beginning, and the same goes for BilibIli.

Whether it is the virtual person of BilibIli or the high-quality content pool of NFT, its core lies in the endless young creativity of the platform. “Generation Z” is the biggest competitiveness of BilibIli.

Chen Rui once said: “Metaverse is actually still a long-term goal… It’s really not in the last two or three years.” Indeed, due to the “slow wind” attribute of the Metaverse, time cost has to be considered when the Metaverse goal is achieved. , BilibIli may be “younger no longer.”

Young people always like the new and dislike the old and are full of curiosity. When the current “Generation Z” gradually ages, and when the new generation of young people grow up, they tend to choose a more niche, newer, and more social society from the previous generation. Tools, like the previous Netease forums, Baidu Tieba, Tianya community, and blogs, no social tool is forever young.

According to a foreign research report, Facebook is losing the love of being young, and older users have soared. Many young people regard it as a social tool used by uncles and uncles. The Guardian published “Why are you young” as early as 2018. Nobody uses articles like Facebook. With reference to China, BilibIli actually faces a similar situation to Facebook.

Can BilibIli which has 30,000 virtual anchors, ride the east wind of the Metaverse?

If it is said that relying solely on the characteristics of “younger” is not enough to support the arrival of the Metaverse, then finding other advantageous positions is the number one problem at BilibIli now, but whether it is to choose AR, NFT, virtual humans or chain games as the entry point, it is not. Day and night work.

As of September 30, 2021, the total amount of cash, cash equivalents, time deposits, and short-term investments held by BilibIli was RMB 24.4 billion. The cash reserves are sufficient, which is not without opportunities.

However, there are already many players on this track. Tencent integrates resources in the field of Metaverse and runs through the entire industry chain. It has successively invested in Unreal Engine developer Epic Games, virtual music operator Wave, AR industry leader Snap, as well as expression tools Bitmoji, camera Kit and sandbox game pioneer Roblox.

Netease followed closely behind. This year alone, it invested in Genies, a virtual image technology company, Imvu, a virtual social platform, Maestro, an American live broadcast company, and Beijing Hongmian Xiaoice Technology Co., Ltd., the parent company of “Microsoft Xiaoice”. On December 2, while NetEase Cloud Music was listed on the Hong Kong Stock Exchange, it also held the world’s first “Metaverse” listing ceremony through the NetEase Fuxi immersive event system “Yaotai”.

In addition, some media broke the news that Tianmei Studio is also preparing for a cross-platform 3A masterpiece, against the virtual community “Oasis” in the movie “Number One Player”.

One after another, news one after another, the industry is full of enthusiasm. “Is it a bright future or a touchable future,” the People’s Daily commented on Metaverse on November 17th: “Let the bullet fly for a while.”

This statement can be used to refer to the Metaverse, and it can also be applied to those people and companies who are hoping for the warmth of the Metaverse, including BilibIli.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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