In 2021, the macroeconomic environment and the pace of content supervision have a negative impact on the platform advertising business. Advertisers have more prominent trust in the exposure of head content. At the same time, new consumer brands also pay more attention to the influence of the platform among young people. The long video platform is experiencing the growth dilemma caused by two core negative factors: the decline of user duration and the uncertain rhythm of content supervision. However, at the same time, the producers and users of long video are changing in a good direction in terms of aesthetics, interest and values at both ends of supply and demand. More elegant, realistic and universal dramas are praised and recognized by the audience, which are valuable in stimulating paid members and improving the influence of the platform. The cultivation of fee paying users in the early stage of the platform is still in the dividend period, and the price increase of members can be directly reflected in the growth of income. For online video platforms, users’ rigid demand for high-quality content remains unchanged, the negative impact of the epidemic gradually subsides, and the improvement of large screen penetration and the optimization of copyright environment have also become stable factors in the fundamentals of the industry. However, at the same time, under the dilemma of industry growth, extensive growth is resolutely abandoned by the platform, and cost reduction and efficiency will become the key consideration of the platform in terms of organizational structure, content investment and platform operation in the next 2-3 years.
Risk warning: covid-19 epidemic prevention and control; Required consumer price; China’s regulatory policy; Overseas Internet market policy.
Market performance review: CITIC media index rose or fell – 0.37% throughout the week, outperforming Shenzhen Composite Index and gem index, ranking 15th among 30 CITIC primary industries. From the perspective of industry segments, the animation sector performed best last week, with CITIC’s tertiary index up or down + 5.37%, followed by publishing and game sectors.
Industry highlights: Hunan Radio, film and television bureau strengthens the management of reality TV programs| The 21q4 loss of station B expanded by about 1 billion, and Mau increased by 34% year-on-year| Tencent Aurora projection P2 release, built-in cloud game| Tencent VIDEO DE blurring patent announcement| Iqiyi’s revenue increased by 3% year-on-year in 2021, and its net loss narrowed by 11.43% year-on-year| The Kwai tiktok and the jitter have issued special campaigns to crack down on the current hot spots and malicious marketing. CTR data show that the overall advertising market increased by 11.2% year-on-year in 2021| Valve’s game hardware steamdeck is officially on sale| Tencent investment game MCN elephant goose layoffs, Penguin E-sports anchor evacuation| Zhejiang Century Huatong Group Co.Ltd(002602) completed the delivery of 50.1% equity of the acquired Shenzhen data center project, which is planned to be put into construction this month| Since the official launch of call of duty mobile game, players around the world have paid more than $1.5 billion| Gamma data show that in 2021, 85.8% of minor users were restricted by anti addiction in the process of playing games|
