sylwanin @sylwanin: "Deep Dive into China’s Digital..."

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Deep Dive into China’s Digital Entertainment Giants 📱🎥 🔵 $BILI (Bilibili-ADR) Vs 🟢 $IQ.US (iQIYI Inc) 🔵Bilibili and 🟢iQIYI are two of China's leading digital entertainment platforms, but they focus on slightly different audiences and have distinct business models. 🏦 Business Model and Content 🏦 🔵 📣 Known as the “YouTube of China,” primarily targeting younger audiences (Gen Z and Millennials) with a strong focus on user-generated content (UGC). It started as an anime, comics, and gaming (ACG) platform and expanded to include a wide variety of content like vlogs, documentaries, and eSports. 💰 Revenue comes from multiple sources: advertising, gaming, live streaming, and premium memberships. They’ve also started producing original content to enhance their library. 🕹️ The platform is known for its highly engaged community, with interactive features like bullet comments (real-time commentary overlay on videos) creating a unique social experience. 🟢 📣 Often dubbed the “Netflix of China,” iQIYI primarily focuses on professionally produced long-form content (movies, TV shows, and original series). It appeals to a broader, more mainstream audience compared to Bilibili. 💰 Revenue generated through a mix of subscription fees, advertising, content licensing, and online gaming. Subscriptions are a significant part of their income, reflecting their reliance on high-quality, exclusive content to attract paying users. 📚 Heavy investment in producing and acquiring high-quality original content, including popular dramas, variety shows, and films. This content-first approach is central to their strategy to compete with other streaming services. 📺 Audience and User Base 📺 🔵 👨‍👩‍👧‍👦 Audience is predominantly young. The platform’s community-driven content and gaming focus appeal to a niche but highly engaged user base. 📈 Rapidly growing its user base, particularly by expanding its content offerings and increasing its presence in mobile gaming, which is a key area of growth for the platform. 🟢 👨‍👩‍👧‍👦 Targets a broader audience, including all age groups, with content that ranges from dramas to reality shows and films. This gives it a wider appeal compared to Bilibili’s more niche focus. 🌏 A large user base with significant penetration across China’s diverse regions. The platform’s focus on mainstream content helps it maintain a broad appeal. 💸 Financial Performance 💸 🔵 ⚠️Despite its rapid growth, Bilibili has faced challenges in monetizing its user base. The platform has invested heavily in content and user acquisition, which has affected profitability. However, its diversified revenue streams offer long-term growth potential. 📺 Increasingly investing in original content and expanding its gaming portfolio, which could enhance its revenue potential as it seeks to deepen user engagement and attract more premium subscribers. 🟢 🏋️ Strategy of investing heavily in original content has led to high operating costs. While this has helped them build a strong content library, it has also pressured their margins, with the company often reporting losses despite growing revenue. 📝 Subscription model has been successful, but intense competition in the Chinese streaming market from players like Tencent Video and Youku poses challenges to maintaining growth. 🧠 Both companies have strong growth potential, your choice between the two would depend on your investment thesis and risk appetite. 🤓 I know which one i would choose , do you ? ✅ Like & Follow for more ✅ Copy for china insights Bonne journée ☕️ $NFLX (Netflix, Inc.) $DIS (Walt Disney) $WBD (Warner Bros Discovery Inc) $PARA (Paramount Global) $CMCSA (Comcast Corp) $GOOG (Alphabet)

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BILI

IQ.US

NFLX

DIS

WBD

Warner Bros Discovery Inc

PARA

Paramount Global

CMCSA

Comcast Corp

GOOG

Alphabet