SHANGHAI – A horde of streamers attracted 1.78 million viewers to the Bilibili video platform while playing music or participating in a cosplay celebrating classical Chinese culture on a three-day occasion in March, while the country withstood the coronavirus blockades.
Viewers flooded the screen with bright comments for the banners. But more importantly, many have responded to the option to send “virtual gifts” of other financial values to their favorite content creators, and some of the proceeds went to Bilibili.
This style of monetization helped propel Bilibili from his origins as an anime pirate to a video streaming power.
“Bilibili is already China’s largest video streaming platform,” Chief Operating Officer Li Ni told Nikkei. The user base on China’s nasdaq list totaled 172.4 million people at the end of March, 70% more than last year.
“We aspire to be the platform of the industry,” Li added.
Bilibili has achieved this dominant position after refining his business style several times. It was introduced in 2009 as a video sharing site where users could download unauthorized cartoons. Even the so-called “Bilibili” is a tribute to the main character of the animated series “A Certain Scientific Railgun”.
The biggest charm is the ability for audiences to post comments that scroll live on the screen, a feature that mimics Japanese-streaming Niconico.
Illegally downloaded content led Bilibili to hot water. The online page has been reorganized into a YouTube-style platform for streaming personal content.
The format replaces not enough to generate profit in the video streaming segment. In 2016, Bilibili experimented with video-rated ads to verify and monetize the stream. But the company has lost audience that has been discouraged through distracting ads. With the advertising style reduced, Bilibili continued to get the most out of his cellular gaming business.
The company has focused on creating an army of content creators. He knew the promising streamers temporarily and kept them in the fold by providing them with experience to take advantage of video content.
This strategy allows Bilibili to boast about 1.8 million active transmitters consistent with the month, an unparalleled strength on competing video sites. Gifts have a common place among young viewers, creating a valuable source of income.
“The ability to interact with popular video transmitters has attracted other young people willing to pay cash to watch the broadcasts,” Li said.
Bilibili devotes resources to licensing and generating anime and movie content, which is viewed at a fee.
As a result, the transmission operation recorded sales of 790 million yuan ($112 million) for the quarter through March, 170% more than last year. For the first time, video games accounted for less than part of the combination of benefits.
However, Bilibili has still achieved profitability due to its series of forward-looking investments. In the same quarter from January to March, the net loss increased to 530 million yuan.
“We are targeting a company that achieves long-term growth, and we don’t expect profitability in the short term,” Li said.
The company must now enter its expansion phase at the moment driven by the call to stay at home. Bilibili uses the popularity of its platform to attract investors.
In April, Sony agreed to inject $400 million into the company, an agreement that will upload more anime content, video games and music. The giants of the Chinese generation Alibaba Group Holding and Tencent Holdings are also investments Bilibili, who plans to deepen partnerships with the lender in e-commerce, as well as anime and music.
The coronavirus pandemic “is turning into a tailwind for the entertainment market,” Li said. “Online intake is expected to continue to grow, which also makes Bilibili a growth opportunity.”
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