As the mobile trend accelerates, show entertainment will become a 10 billion market in 2016

The 2016 China Show Entertainment Market Research Report released by Analysys International shows that China's show entertainment industry has entered a new stage of rapid development since 2012. In the past three years, the average annual growth rate of the show entertainment market has been close to 70%, and it is expected to exceed 10 billion yuan in 2016.

As one of the important forms of online video, the evolution trend of live broadcast business is very similar to that of the entire online video industry: the maturity of social culture and economic environment is a prerequisite for the explosive growth of both, and mobility has become one of the most significant trends at present.

The basic environment is ready and mobility is the general trend

On the one hand, with the adjustment of social structure, spiritual consumption has accounted for an increasingly higher proportion of Chinese people's expenditure, and Internet-based entertainment consumption has become the norm in today's social culture; on the other hand, with the increase in national income, infrastructure construction has become more and more complete, especially the construction of urban and rural broadband networks, which has released a large amount of online consumption demand.

Against this backdrop, both the online video and show entertainment markets have seen substantial growth, while also demonstrating a clear trend towards mobility.

According to Beijing Business Daily, more than 60% of the total online broadcast volume of the CCTV Spring Festival Gala in 2015 was on mobile devices. In fact, mobile devices have become the main battlefield for online video. Coincidentally, third-party data shows that in 2015, the number of active users of show entertainment on mobile devices soared from 20 million to 50 million. Analysys believes that the business model of show entertainment on PC is fixed, and innovative breakthroughs may occur on mobile devices. Innovation in the mobile field will also become an important focus in the competition in the show entertainment market.

Xiuse Show is a typical example of mobile innovation. NetQin's financial report shows that Xiuse Show's business grew by 951.6% in 2015. Rosenblatt analyst Zhang Jun released a research report, proposing that Xiuse's business will grow by 200% in 2016, with an annualized profit of 20-25 million US dollars, and reiterated the "buy" rating for NetQin's stock, with a target price of 13 US dollars.

Dual attributes give rise to multiple profit models. Platformization and verticalization will each go their own way.

The reason why mobile show entertainment is favored by capital is not only because of its development potential under the trend of mobile Internet, but also because it has stronger payment capabilities than PC show entertainment.

According to Analysys data, among the users who pay more than 12,000 yuan, Xiuse Show ranks first in the market with 9.7%, beating out established show entertainment companies including 9158 and YY. It can be seen that high paying ability has become one of the advantages of Xiuse Show compared with other show entertainment companies. In addition, the proportion of young people among mobile users is higher, which is also the most potential consumer group in the future.

Based on the maturity of mobile payment and mobile e-commerce, mobileization has brought greater imagination space to the dual attributes of social + entertainment in the show. Relying on the accumulation of fans of Internet celebrities, expanding the models of product endorsement and anchor stores can greatly increase platform traffic, drive users to recharge and pay, improve user activity, and form a virtuous circle.

Analysys believes that platformization and verticalization are the two directions of horizontal and vertical development of show entertainment. The large-scale platformization of traditional manufacturers' pan-entertainment platforms will continue to expand, and the momentum of self-media platforms centered on anchors should not be underestimated.

In the past year, China's live entertainment market has been in a transitional state of mobile terminal transfer. In the next year, this trend will continue. Although the entire market pie is still showing a continuous upward trend, due to the increase in the number of players entering the market and the similarity of their respective sizes, the competition in the industry will become more intense. The platform strategic layout and the depth of vertical fields may become the two major directions in 2016.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.