In the first half of the live broadcast of the game, the anchor won the world. Game anchors such as Lu Benwei (May fifth), Feng Timo and PDD have a strong influence on the whole network. It was a good time for Betta. In the second half of the game live broadcast driven by short video traffic, the influence of content is more important. Users' consumption habits are migrated from anchor to professional events. The content influence of event copyright is rising. Like the night EDG won the championship, the peak popularity of S11 live broadcast of station B reached 500 million times. It has not only been the prosperity of the e-sports industry, but also the carnival of young people. However, these new playing methods have brought few changes to Betta. It lacks traffic and the copyright of top E-sports events. It is difficult to enjoy the development dividend of a new round of game live broadcasting platform of short video + E-sports content. Reflected in the financial report, Betta's income and profit both fell. In 2019, Betta was overtaken by tiger teeth and lost its first place in live game broadcasting. Now, with its declining revenue and stagnant growth, can it still keep its second place? one The fall of Betta is clearly visible from the numbers. Recently, Betta released the financial report for the third quarter of 2021, and a number of core data fell. In the third quarter, the revenue of Betta was 2.348 billion yuan, a year-on-year decrease of 7.8% compared with 2.546 billion yuan in the same period last year; The gross profit was 278 million yuan, down 24.6% from 369 million yuan in the same period last year. Betta still failed to make a profit in this quarter, with an adjusted net loss of 72 million yuan, which is the fourth consecutive quarterly loss of Betta. On the day of the financial report, Betta's share price fell by 8.49%. By lengthening the timeline, Betta's share price fell from $11.1 at the beginning of the year to $2.78 today. The market value has fallen by more than 70% to less than $1 billion. Internet companies, loss is not the original sin, but if the loss can not be exchanged for growth, the capital market will lose patience. The poor performance of Betta is that there is no growth in the financial report, only stagnation. Most notably, the growth of paying users has stagnated. Q3 Betta paid users fell to 7.2 million from 7.9 million in the same period last year. The decline in the number of paying users has driven the decline in the charge of live broadcasting business. The income composition of Betta is extremely single, and nine of the income is contributed by the live reward. The final manifestation of the decline in the number of paying users is the decline in revenue. This is not the problem of fighting fish this quarter. In the first three quarters of this year, the number of Betta paying users was 7 million, 7.2 million and 7.2 million respectively, compared with 7.6 million, 7.6 million and 7.9 million in the same period last year. The bonus period of game live broadcast has passed, and the growth of paying users has slowed down, even stagnated and declined. What the game live broadcasting platform needs to do is how to create the second performance growth curve outside the live broadcasting business. As a general business of Internet enterprises, advertising has naturally become one of the ways to realize Betta. Q3 Betta's advertising and other business revenue was about 138 million yuan, compared with 198 million yuan in the same period last year, a decrease of nearly 40%. Advertising and other business income decreased from 154 million yuan in Q1 to 138 million yuan in Q3. The financial performance of Betta this year can be summarized as two key words: decline and loss. 02 The highlight of Betta Q3 financial report is that the mobile terminal Mau hit a record high of 61.9 million, an increase of 3.9% over 59.6 million in the same period in 2020. However, compared with Huya's 81.5 million average mobile terminal Mau, the year-on-year increase of 14.7% is still slightly inferior. Moreover, the decline of Betta paying users does not make such growth cost-effective. Because the growth of users did not drive the growth of revenue and profits, but led to the level of gross profit margin, which fell by 1.3% to 11.9% month on month. It can be seen that the growth of Betta is weak. Even if it loses money, it can't earn a cry. For the game live broadcasting industry that has long passed the time of burning money, the loss is not the standard configuration of the industry. As can be seen from the data in the figure below, tiger tooth's revenue in this quarter was 2.976 billion yuan, a year-on-year increase of 5.7%, and took the lead in key data such as live broadcasting business revenue, advertising and other business revenue, and the number of mobile terminal monthly live users. In looking for the second growth curve, tiger teeth obviously do better than fighting fish. Advertising and other business revenue increased by 137.1% year-on-year to 374 million. The advertising and other business income of Betta is only 138 million yuan, about half of tiger teeth. The advertising business of Betta lacks judgment more than the decline in revenue. During the national day, HM brand advertisement appeared on the opening page of Betta app. The brand made improper remarks in March this year and was boycotted by Chinese consumers. Betta's promotion of open screen advertising for HM has aroused controversy among many netizens. Finally, the official Betta issued an apology and admitted that the incident had exposed loopholes in its own process. But the Internet has a memory. The black history of HM's open screen advertising has consumed the popularity of Betta on the Internet. From almost becoming a family with tiger teeth to stalling growth, Betta's lag is written into every key data. In contrast, tiger teeth, its opponent, has maintained a leading edge since its revenue exceeded that of Betta in 2019. In the first half of this year, the management of Betta may gradually withdraw from the competition pattern of the industry by merging with tiger teeth, just like Youku, Tudou, meituan, Dianping, 58 same city and Ganji... Through the merger, the acquired party was taken over by competitors and withdrew gracefully. But after regulators stopped the merger of tiger teeth and Betta, the decent exit channel was closed. The power of capital has been unable to match the executives of the two competing enterprises and the management in the same joint position. After the merger scheme ran aground, the competition between tiger teeth and Betta was left only by market forces. Those who won, stood, lost and fell. 03 A space for one person to play tiktok is not just a competition between Kwai Chi and fight fish. B stations, fast hands, and jitter are also competing for the "cross" competition, and play a role in the field of live broadcasting. According to the survey and Research Report on short video behavior of mobile game users in 2020 released by Gamma data, short video platform is the channel with the highest preference for mobile game users to deeply understand a game product, accounting for 44.9%. Compared with fighting fish, the biggest advantage of B and Kwai Fu is their body size and ecology. The current monthly user of Kwai Yue has reached 570 million, about 13 times that of fighting fish. The active users of station B also reached 260 million, about four times that of Betta. The ecology of B stations and Kwai Fu communities is also more mature. From the advertising revenue of Betta, it can be seen that the traffic of Betta is difficult to settle down. The platform is only an entrance for users to watch the live broadcast. If there is no copyright and favorite anchor, users will inevitably lose. The short video platform also has an important capital that Betta does not have - money. At the end of 2019, station B took the lead in competing for E-sports copyright. Announced the League of heroes and the League of heroes to achieve global strategic cooperation, at 800 million yuan, won the League of heroes in Chinese mainland for three consecutive years of the world's exclusive live broadcast copyright. In April this year, tiger tooth live spent 2 billion yuan to shoot the exclusive broadcasting right of LPL events for five years, including LPL, LDL and LPL All-Star events. The term of the media copyright agreement of Huya live broadcast and tengjing sports is five years, from 2021 to 2025, while the term of the on-demand right is three years. In November, Huya and ESL reached a two-year copyright agreement on live broadcasting of exclusive Chinese events, covering E-sports events such as csgo, dota2 and Starcraft 2. In these competitions, Betta has almost no voice. It has no top-level competition copyright and is more involved in secondary copyright distribution. In the first half of the game live broadcast platform, the competition centered on the anchor. That is the home of Betta. The popularity of super anchors such as Lu Benwei (May fifth), Feng Timo and sun Xiaochuan makes Betta have a deep influence in the game live broadcasting industry. However, as Lu Benwei was banned and Feng Timo left station B, well-known anchors such as Wei Shen and solitary shadow left one after another. The influence of the top ten anchors of Betta has long been different from that of that year. Figure: popularity ranking of Betta anchor in October Influential anchors in the early years can help the platform drive traffic and attract fans. Now, Betta needs more operational investment to attract users. Reflected in the financial report is the increase of marketing expenses. Q3 Betta sales and marketing expenses are about 220 million yuan, compared with about 160 million yuan in the same period in 2020. In the first half of the game live broadcast, the anchor won the world, but in the second half of the game live broadcast driven by short video traffic, as well as the maturity of the e-sports industry and users' consumption habits, they moved from the anchor to professional events. Those who get the content have a stronger advantage. For example, Feng Timo, who left Betta and joined station B, has about 2.8 million fans in station B, which is not the top stream of station B. In terms of momentum, compared with up masters such as he classmate, Ao factory director and Hua Shaobei, they have a weaker sense of existence. The content influence of the event copyright is rising. Through secondary creation, it is popular on the short video platform, which is the way for more game anchors to gain popularity. Betta sees new trends and changes. CEO Chen Shaojie said, "Betta will continue to expand and enrich game categories, and strive to build Betta into an industry-leading diversified content ecological platform with games as the core through diversified content forms such as live broadcast, video, graphic content and community, as well as personalized game operation means." These new trends are the short board of Betta. It lacks traffic and the copyright of top E-sports events. It is doomed to be hard to enjoy the development dividend of a new round of game live broadcasting platform with short video + E-sports content. Therefore, compared with the overturning against the wind, the more urgent problem for Betta is: can the second place in the live game still be stable? (Xinhua News Agency)