Whether Douyu and Huya can subvert the pattern of live broadcast？

Douyu, the biggest live game player, is catching up with "the first share of live game" in all aspects, from user scale to profitability. Douyu and Huya announced their financial results for the second quarter of 2019 on August 13. As expected, tiger teeth made seven consecutive quarterly profits. Surprisingly, betta has posted two consecutive quarters of profit.

Last quarter, Douyu announced its first profit, but the profit seems to be a little sudden, more bank interest, foreign exchange income such as one-time income contribution. A number of media analyses have revealed the problem, so the second quarter's earnings performance was not expected. But the second quarter turned out to be a critical turning point. The scale of Douyu users has always been larger than Huya, but the scale of revenue and profitability are not matched by Huya.

But two consecutive quarters of data changes suggest that tiya's lead is narrowing, and that bettas are actively reversing their less-lucrative status. Douyu and Huya are two head companies ranked first and second respectively in the field of game live broadcasting, but the development of the two companies has been full of drama. On the listing level, Douyu first proposed to go public, but Huya grabbed the "first share of live game". It did not stumble into the capital market until July this year. At present, both companies are listed in the us stock market, and the comparison of profitability, return on investment, development momentum and other indicators will be the topic of constant attention from the outside world.

As the two largest players in the field of live streaming, both Huya and Douyu have been listed so far, it is clear that the bettas who get the money will be able to continue to tangle with Huya. However, the listing of head players is not final. In fact, there has never been a shortage of players in the field of game live broadcasting. The rivals of Douyu and Huya are far more than just each other. On July 15, Kuaishou announced that the daily active users of game live broadcast mobile terminal on the site exceeded 35 million, and the daily active users of game video reached 56 million.

In the first half of 2019, Kuaishou website released more than 500 million game related content, more than 10 billion thumb up content, more than 1.5 billion works reviews, more than 120 million content sharing. Head anchor data is also very representative. According to data from Xiaohulu, an anchor data query platform, as of June 30, among the top 50 anchors of honor of Kings, 10 are Kuaishou game anchors and 24 are Kuaishou game anchors among the top 100.

Among the top 50 mobile game anchors, there are 10 Kuaishou game anchors and 31 Kuaishou game anchors in the top 100. Tencent also has a capital relationship with Kuaishou, and has invested in the latter's series D and E financing. Tencent and Kuaishou launched more cooperation, will inevitably have a partial impact on the flow of Douyu and Huya. Before WeChat discovery page in the game live channel, the game live content providers are also mainly betta fish, tiger teeth, penguin esports and tentacles four, and now Kuaishou has joined. Compared with Kuaishou, its established competitor, Bytedance is still in the stage of active exploration in the game.

Up to now, Douyin game live has no large volume, focusing on the (global) exclusive agency of small games. In the iOS mobile game monthly download list released by App Annie in April 2019 in China, Douyin dudai's "eliminate drug bully", "drift 3D of the whole nation", "my thief 6" and "cat's tale" rank at 1, 4, 5 and 7 respectively. Tencent, by contrast, has three mobile game titles on the list, including let's hunt, thrill the battlefield and honor of Kings. Bytedance has launched an in-house game called project oasis, with four projects under development, according to late LatePost.

One of the most promising self-developed heavy game products will be launched in the first quarter of 2020 at the soonest. It will also be an important new player. If Bytedance makes its efforts in the field of game live broadcasting, Douyin, watermelon video and volcano small video are all likely to become distribution channels. Tencent has previously fought multiple lawsuits against watermelon video, which has banned unauthorized games such as honor of Kings and league of legends. Clearly, Bytedance still values the user and revenue generated by the game. In addition, B's achievements in games cannot be ignored.

According to the data of the first quarter of 2019, game revenue in the first quarter of Bilibili increased 27% year-on-year to 874 million yuan, accounting for 64% of the total revenue. From this point of view, Bilibili is also becoming a gathering place for game users. While questions have been raised about the way Kuaishou's live game data is calculated, and toutiao's gaming ambitions are only in their infancy, new power's desire to do something about live games is real.

Each of these new forces is not short of capital and users, how big waves can be raised in the future may have a heavy impact on the competitive landscape of the game live industry. At present, a lot of speculation that the future game live field may form headlines and tencent duopoly competition model. In terms of tencent, it is an inevitable trend to integrate the game live resources of Douyu, tigya, penguin e-sports, tentacles and Kuaishou. Zhuang minghao, former vice President of panda live, once told 36kr that tencent would join up with Douyu, Huya and penguin e-sports to set up a game live group similar to tencent's music entertainment group.

In addition, recently also rumors, tencent may set up a joint venture with Kuaishou live game subsidiary. For tencent in the field of game live development, is indeed full of a lot of imagination. For Bytedance, its rival tencent is a big brother in the field of games. It will not be easy to do heavy games or live games. Back to the theme of this article, going into 2019, Douyu is reversing its weak financial performance, which is expected to continue in the next quarter.

The business models of Douyu and tiger-ya are basically similar, so in terms of costs and fees, the gap between them will not be too big in the future. If the turnaround at the revenue end continues, betta's profitability may also be sustainable. However, both Douyu and Huya, as two major head game live platforms, are facing competition from new players. Bytedance, Kuaishou and Bilibilis are likely to become future competitors. Their influx may change the whole competition pattern, but the whole industry is bound to develop in a healthier direction.