Douyu announced that D-round financing company would be completed in the first half of this year.

Douyu TV recently announced that D-round financing has been completed in the first half of 2017. At the same time, Douyu said the company has fully entered a profitable state-this is the first time that the live broadcast platform has announced a profit.

original title: Douyu introduced state-owned assets and banking departments to start the live broadcast of the second half of the war

the live broadcast industry, which has always been famous for fighting, recently ushered in a big piece of news-Douyu TV recently announced that D-round financing had been completed in the first half of 2017. At the same time, Douyu said the company has fully entered a profitable state-this is the first time that the live broadcast platform has announced a profit.

"it is of great significance for the industry for Douyu to obtain D-round financing." Li Yiyang, an analyst at iResearch, told reporters, "being able to obtain financing from D-round means that it is a step further from listing, and its own business model is more mature than before." Second, it can be expected that other strong live streaming platforms will also announce financing information in the near future. "

regarding the speculation that the industry predicts its imminent listing, the relevant person in charge of Douyu replied to the reporter: "if there is any official information in this regard, we will release it to the public in a timely manner."

however, it is not difficult to guess that for the live broadcast platform, which has been flat for a long time this year, a new round of war has only just begun.

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introduce the "State assets" and "Banking Department"

< / The shareholding ratio is 4.69%, 0.04% and 0.53% respectively. The timing of the above equity change is November 14, 2017.

it is understood that Hubei Changjiang Zhaoyin growth Equity Investment Partnership (Limited Partnership) and Shenzhen Zhaoyin win-win Equity Investment Partnership (Limited Partnership) are investment entities under China Silver International. Yuanhe Nanshan Equity Investment Partnership (Limited Partnership) in Suzhou Industrial Park is a subsidiary of Yuanhe Holdings.

the relevant responsible person of Douyu TV told reporters: "there are mainly two considerations for the introduction of state-owned assets and banking departments: one is the flexible financing methods and high-quality customer resources owned by the banking system, which can help scientific and technological innovation enterprises like Douyu grow rapidly; second, the entry of state-owned assets can effectively endorse enterprises like Douyu, which will significantly promote Douyu's brand influence."

according to Douyu's official website, Douyu's predecessor, live broadcast, is a live live sharing website, which officially changed its name to Douyu from January 1, 2014.

as one of the advanced entrants in the live broadcast industry, Douyu never seems to lack the pursuit of capital. In April 2014, the newly established Douyu TV received 20 million yuan of angel investment from Ofei Animation Chairman Cai Dongqing, and then received Sequoia Capital's $20 million A round investment in June of the same year. In March 2016, Tencent, Sequoia Capital and other institutions invested US $100m in Douyu to complete round B financing. In August of the same year, Douyu once again announced that he had received 1.5 billion C round financing led by Phoenix Capital and Tencent.

Douyu has grown quite fast and has been established for only 3 years. In addition to winning financing from D-round, he has also successfully occupied a large part of the live broadcast platform. According to the Industry Monitoring report of China's Game Live Market in the first half of 2017, Douyu TV topped the list with 12.4739 million users in the first half of 2017. As of press time, official data provided by Douyu TV show that Douyu TV currently has nearly 30 million DAU (daily active users) and nearly 200 million monthly active users, accounting for more than 70% of the market share in the segment.

revenue figures from Deloitte are even more startling. According to the 2017 Deloitte High-tech High-growth China Top 50 report (China Top 50 report), Douyu's cumulative growth rate of 70776% over the past three years has set a new record for corporate income growth over the years.

< strong > simultaneous financing and investment < / strong >

Industry analysts believe that it is no accident that Douyu TV is favored by capital. Douyu is one of the game live broadcast platforms, with its rich content and the continuous efforts of the excellent team to this day. In fact, the core competitiveness of the live broadcast platform has always been content, and Douyu's ability to continuously provide a large number of high-quality anchors and live content is the main driving force for its development. " Li Yiyang told reporters.

in addition, being good at marketing and winning exclusive large-scale events is also considered to be one of the reasons why Douyu has a competitive advantage. For example, in the S7 final held not long ago, official data released by Douyu showed that the total number of views exceeded 1.2 billion, and people from more than 100 countries and regions watched the live broadcast through Douyu.

several analysts pointed out that Douyu TV has a relatively mature business model, which is also the reason why he was chosen by "state-owned assets" and "banking department". Where does the profit come from? In response, the relevant person in charge of Douyu told reporters: "the sources of income include user reward recharge, advertising, combined transportation of games and projects, commercial program implantation and e-commerce, and so on."

"first, Douyu has the highest quality anchor resources and content output capacity in the industry. Second, Douyu has the most complete and healthy ecological environment in the industry. Third, Douyu has the largest and highest quality audience flow in the industry, with a market share of more than 70%, and the culture and quality of on-screen comments are the best in the industry. " When asked why he was favored by the investors, the relevant person in charge of Douyu TV told the reporter.

"it is of great significance for Douyu TV to announce profits in the live broadcast industry for the first time, which reflects the trend of Internet internalization." Wei Pengju, dean of the School of Culture and Media of the Central University of Finance and Economics, told reporters.

behind financing, Douyu has also accelerated the pace of laying out the upstream and downstream of the live broadcasting industry. Through the enterprise information inquiry website Tianyan, the reporter found that Wuhan Douyu has invested in a total of 18 companies. Excluding its subsidiaries, the remaining 11 companies, including LGD e-sports Club, sports industry fan interaction platform "logging tired", youth idol live community "jam live" and other companies upstream and downstream of the industry chain.

"in terms of content, Douyu implements the" LVB + "strategy to create richer LVB content on the content consumer side. At the same time, Douyu continues to upgrade on the content supply side to meet the more diversified psychological and spiritual needs of users. Industry, Douyu in financing at the same time, but also through investment and other means of in-depth layout of upstream and downstream industries. " In answering which direction the business direction of the next step will focus on, the relevant person in charge of Douyu told reporters.

< strong > is the industry moving towards an inflection point? < / strong >

Game Live has sprung up around 2013, and has witnessed rapid growth and explosion in 2015 and 2016. By 2017, the market has become relatively calm.

"the reason why the game live broadcast industry has developed to now, first, it reflects the result of the rapid development of Internet technology, and second, it is an embodiment of the support of the national 'Internet +' strategy. In addition, I think it caters to people's needs for high-quality content and socializing. " Wei Pengju told reporters.

according to the 2017 China Game Live Industry Research report released by iResearch Consulting, the size of China's game live broadcast market reached 2.83 billion yuan in 2016, and in 2017, the overall market size is expected to exceed 3 billion yuan in 2018, a growth rate of 19.1%.

however, behind the eye-catching data, the profit model of the game live broadcast industry is still criticized by the industry. A series of scandals such as painting powder, pornography, beatings, infringement and arrears of wages have been reported from time to time, which also indirectly exposed the disadvantages of the business model of the live broadcast industry.

for example, the reporter entered relevant keywords such as "live fans" on an e-commerce platform and immediately popped up relevant results such as "follow the on-screen comment software". These virtual goods claim to be able to "stabilize popularity, automatically go up and down the line", and the unit price is generally "1 yuan = 1000 concerns". Wei Pengju told reporters that data fraud has long become an unspoken rule in the game live broadcast industry.

and the continuous live broadcast has also increased the censorship cost of the platform. Zhang Ming, co-founder and co-CEO of Douyu TV, has publicly said that Douyu invested about 20 million yuan in live broadcast supervision in 2016. "hundreds of thousands of hours of live content are uploaded to Douyu every day, and a few minutes of video questions may affect the entire plate."

in addition, Li Yiyang pointed out to reporters that the biggest expenditure of the game live broadcast platform is mainly the cost of bandwidth. According to the Q3 financial report of Huanju Times in 2017, its bandwidth cost rose to 160.5 million yuan from 149.2 million yuan in the same period in 2016, equivalent to more than 50 million yuan per month compared with the same period last year. "the increase in the number of viewers will rapidly increase the cost of bandwidth, and if the cost is saved, it will lead to a decline in the user experience. How to balance profits and costs has always been a serious problem for live streaming platforms. " Li Yiyang said.

"not only in terms of bandwidth, but also the live streaming platform bears a lot of cost pressure in promotion, marketing and resource competition." Ai media consulting analyst Liu Jiehao told reporters, "from the initial advertising marketing war, all the major live platform advertising sea investment, itself is a huge expenditure." Since the beginning of this year, among the major platforms, the competition for anchors' resources has once again set off the most exciting part of the industry. In order to compete for higher quality anchor resources, various platforms have left heavy capital in order to pay for the anchors' high transfer fees and daily operating expenses, which are the main obstacles encountered by the live broadcast platform in terms of profitability. "

Internet analyst Yu Bin pointed out to reporters: "the live broadcast industry is a very expensive industry. Operation and maintenance costs, bandwidth costs and marketing costs account for 90%. The profit of the live broadcast platform mainly depends on the reward share of the VJ, which often needs to go through a stage, so it can only be profitable after going through this stage, but most live broadcast platforms are still in the stage of continuous money consumption."

Wei Pengju told reporters: "it is estimated that in the near future, the competition of the game live broadcast platform will enter a white-hot, oligarchic era." But again, the content is king. "

"the industry has entered an inflection point, and it is expected that the live streaming platforms in the market may only leave 1 and 3 in the coming year. It is expected that the live broadcast industry will gradually move closer to the show in the future. " Li Yiyang said.

Edit: mary