We believe that the emergence of the meta universe is expected to make the realization of content possible. In the era of mobile Internet, the final realization of any business model innovation is still traffic. There are two main reasons why the realization of content cannot be realized: 1) the realization of content requires pre payment, which requires that the content is non reproducible, and it is difficult to realize under the background of imperfect copyright legislation; 2) The user base corresponding to a single content form is not enough, so it is difficult to release potential demand.
These two points are expected to be changed in the meta cosmic scene. Firstly, the application of the underlying technology blockchain of the meta universe ensures the non replicability of the content, and every user can observe the generation and dissemination of the content. Secondly, the meta universe itself is a fusion scene parallel to the real world. The generation of each content faces all users, and the user base is a complete collection in the era of mobile Internet. Finally, the emergence of a single UGC will form the assets of the platform. In the fusion scenario, the assets become UGC itself.
1. We believe that the Internet pattern will change dramatically in the meta universe era, and the underlying logic is that the relationship between people and society has been reconstructed in the meta universe. Referring to the transformation from PC Internet era to mobile Internet era, a number of new giants such as meituan and today’s headlines have been born. We believe that the evolution of the meta universe should not be simply understood as a linear deduction in the mobile Internet era, and its pattern may change greatly. We propose that the underlying logic of all this comes from the reconstruction of people by the meta universe The relationship between man and society. In the real world, human intelligence will allow human beings to have stable social networks. The number of people is 150, and the base of this number is the people we contact in time and space. The emergence of the meta universe will expand this base range, so as to realize the reconstruction of human relations. The traffic that may sink in the era of mobile Internet is expected to be activated. On the other hand, the meta universe realizes the integration of scenes. After the digitization of the relationship between people and society, the potential users of the original single user audience scene are multiplied.
2. We believe that the content realization that is difficult to realize in the era of mobile Internet is expected to be realized in the meta universe. From the perspective of the income structure of global Internet giants, its realization mode is still dominated by advertising. From 2011 to 2020, the cagrs of Tencent, Google, Facebook, Alibaba and Amazon relying on traffic revenue were 51.1%, 17.2%, 42.3%, 43.6% and 31.4% respectively. Except Tencent, traffic revenue accounted for more than 80% of the total revenue. We believe that the meta universe is the form selected by the public. Users can use the underlying technology to produce their desired content in the meta universe, breaking many frameworks for limiting scenes, contents and rules in the PGC era, and realizing the variable realization of the content itself. In this form, enterprises take providing underlying technology, scenes and IP as the basic disk, You can also participate in the process of content creation.
3. We have calculated the market space of the main scenes of the meta universe. It is expected that the revenue of games in the Chinese market will reach 2.06 trillion from 2022 to 2032, and the e-commerce is expected to achieve 43 trillion Gmv. In terms of the company, we suggest paying attention to the core underlying technology, NVIDIA, the content IP company that can be migrated to the meta universe, the reading group and Tencent holdings.
Risk tips: technical progress is not as expected, industrial policies and international regulatory constraints, monopoly risk, ethical and legal factors, privacy disclosure, deviation risk of industrial market space calculation, etc
