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Baidu acquires YY: the third live broadcast war starts

via:博客园     time:2021/2/19 13:50:23     readed:65


By Cheng Jie

Source: Alphabet list (ID: wujicaijing)

On February 18, Beijing time, baidu released its unaudited financial report for the fourth quarter and the whole year up to December 31, 2020. According to the financial report, in the fourth quarter, baidu achieved revenue of 30.3 billion yuan and net profit (non US GAAP) attributable to Baidu reached 6.9 billion yuan, exceeding market expectations for four consecutive quarters. In 2020, Baidu's revenue is 107.1 billion yuan, and its net profit (non US GAAP) is 22 billion yuan. In the fourth quarter, baidu core rebounded strongly, achieving revenue of 23.1 billion yuan, a month on month growth of 8%, far higher than the month on month growth performance of the same period over the years.

In terms of specific business segments, Q4 Baidu's core business (mobile ecology, search, AI) revenue was 23.1 billion yuan, up 6% year on year. Among them, online marketing revenue was 18.9 billion yuan, which was flat on a year-on-year basis, while non marketing revenue reached 4.2 billion yuan, which was an increase of 52% on a year-on-year basis, mainly due to the promotion of cloud and other services.

On the evening of February 8, huanju announced that the sale of its YY live business to Baidu company had been basically completed. Since the formal establishment of the short video business department last year, the acquisition of YY has been completed, marking the completion of Baidu's content ecology in the field of short video and live broadcasting.

Unlike vertical content platforms such as Zhihu, xiaohongshu, and even keep, which try to graft live broadcasting for business innovation, in the future, the investment of super app represented by wechat and Baidu in live broadcasting business has a greater impact on the live broadcasting industry.

Baidu's pace echoes the rhythm of wechat. Traditional traffic giants are gradually recovering their lost land and expanding the scope of competition to the whole range of content to consumption. In the long run, Baidu and wechat are expanding the platform's service experience for users and business value for customers through short video and live broadcast, which also provides a new starting point for Baidu's diversified cash flow path.

Quest moblie report shows that in 2020, the online marketing scene and the marketing rhythm close to traffic will promote the transfer of enterprise advertising budget to online, and the rapid rebound after Q3 will promote the growth of China's Internet advertising market in 2020.

This is also reflected in Baidu's financial report. In the past year, Baidu's online marketing revenue was 66.3 billion yuan, a year-on-year increase of 5%, and its non marketing revenue was 12.4 billion yuan, a year-on-year increase of 28%. Baidu's revenue structure has been further optimized.

On the other hand, in 2020, the Internet advertising market will be further polarized, with obvious growth in link trading or e-commerce short video and social advertising with social attributes, which will seize the market share of other media.


In general, in the past year, domestic Internet advertising has been more and more combined with content, e-commerce, payment and other forms, and diversified realization has become a definite trend of the industry in the next period of time.

This is also the important background of Baidu's business restructuring of mobile ecology, promotion of short video business, acquisition of YY and acceleration of live broadcasting business in the past two years. Robin Li made it clear that Baidu will give full play to its huge Internet user base and provide more non advertising services.

For head Internet companies like Baidu, business transformation and diversified cash flow are a common trend, and live broadcast will become the focus.


The current reality is that the era of live broadcasting returning to live broadcasting has passed.

Live broadcast is not only changing the mode of information dissemination as an element of media reconstruction, but also becoming a container of connecting content, social and commercial as a commercial infrastructure.

Baidu and wechat are also rapidly complementing the live broadcasting business. The two giants will complete the preliminary maturity of short video (Live Broadcasting) products in 2020, and will inevitably take more actions in 2021, which will lead to further changes in the industry pattern.

The acquisition of YY has become an important measure to accelerate the maturity of Baidu live broadcasting.


In the development process of domestic live broadcasting industry, YY live broadcasting is an indispensable role. From the initial voice communication tool to the pan entertainment interactive live broadcasting platform, YY has accumulated resources, talents, technology, operation management and other aspects of the live broadcasting industry, and is relatively balanced in the show, game, pan entertainment and other fields.

For Baidu, YY live is the most worthy of acquisition. YY's content, technology, industry talents and operation experience are exactly the resources Baidu lacks in developing live broadcasting. As one of the most mature live broadcasting platforms in China, YY live broadcasting directly makes the strength of Baidu live broadcasting go up several steps.

For YY, with the weakening of the status of independent live broadcasting platform, there is also the problem of business growth being squeezed. These problems are solved with Baidu's blessing.

The value that Baidu can give YY is directly reflected in the flow. In the long run, the breakthrough lies in business integration. For example, the two sides can also form collaboration in short video and other content services.

YY live overall will remain independent operation, YY client will remain, and its content, technology and live team will be provided to Baidu at the same time. As an independent and mature social entertainment company, YY's supplement to Baidu's content ecology should complement Baidu's internal business innovation.

On November 6 last year, baidu made an internal organizational adjustment. Cao Xiaodong, vice president of Baidu, will be responsible for Pan knowledge, pan service and pan entertainment live broadcasting business in a unified way. Baidu live broadcasting Zhongtai and YY live broadcasting business will be unified under Cao Xiaodong.

This action makes the outside world pay more attention to the extent to which the YY catalyzed Baidu live broadcast can connect with Baidu's new business and promote the diversification of Baidu's revenue.

The answer is obvious. For example, as an important support tool for Baidu's content creation, duxiaodian's form and function are similar to the role of wechat store in video number. It needs to be grafted into Baidu's live broadcast business, so as to further promote the development of Baidu's e-commerce. Another example is the combination of live broadcasting with knowledge content and service, which can provide more timely and interactive feedback service-oriented live broadcasting.

In this year's Baidu good luck China year activity, baidu health provided Baidu users with Spring Festival health knowledge popularization, free online consultation and other services through live broadcast, trying to form a health service closed loop from content popularization to health service, from shopping mall consumption to offline detection.

In the financial report conference call, according to Baidu, compared with the previous quarter, the average daily broadcast volume of Baidu Health Video increased by 92%, and the live broadcast hosted by health professionals increased by 163% on the next day.

For Baidu mobile ecology, the role of live broadcasting as a channel will continue to be reflected in connecting b-end services and C-end users' needs, and completing the flow cycle.


In the past few years, there have been three major changes in the mobile live broadcasting industry, behind which are the changes of the whole mobile traffic ecology.

Kwai tiktok was also secretly broadcast live in early 2016, and Taobao broadcast live on Taobao's master line, slowly fermented in Taobao's interior, and the line was on the line at the end of the year.

As mobile live broadcasting platforms are eliminated one after another, there are only a few survivors in the market.

Kwai Kwai's live broadcasting business has grown into a fast selling commercial pillar. The tiktok Kwai Fu prospectus shows that in 2018, its direct broadcast business accounted for 91.7% of the total revenue. The Kwai live broadcasting business just started for a year, and the external target was not platform realisation, but it was obvious that it was directed at the fast hand.

The short video platform tries to promote the transformation of video bloggers to anchorperson through the similar product form of video and live broadcasting.

We mentioned in Baidu's quick Kwai Tai competition: in the short term, the stronger traffic giant will make progress in the live broadcast business.


We can imagine how much Taobao live has stimulated the live broadcasting industry. On the one hand, Taobao has found a more beautiful data growth index. On the other hand, live broadcasting with goods has also brought new opportunities to the pan content platform, and the traffic has rapidly exceeded that of graphics and short video with goods.

With the growth of traffic and the change of cashing environment, the cashing function of reward payment of live broadcast is weakened. More importantly, live broadcast has gradually become an operation means of traffic growth and retention. As a result, the live broadcast gradually goes to the platform, and the function of live broadcast as an independent entrance is also weakened. Instead, it is connected to various traffic platforms as a standard function.

In the past 2020, baidu reconstructed the live broadcasting business and established the live broadcasting center. In the second two months of 2020, the support of wechat video number for live broadcasting function is also more and more perfect, and Zhang Xiaolong is directly providing the video number and live broadcasting platform.

The short video war is not over. The pan live broadcasting industry, which is a fast shaking duopoly, is facing changes. Baidu and wechat, two traffic giants, may be better at connecting content, people and services.

In terms of cash flow, live broadcasting is first of all a cash flow business. In the third quarter of 2020, the revenue of huanju group increased by 36.1% to 6.2864 billion yuan, of which the revenue of live broadcasting increased by 40.1% to 6.0491 billion yuan. Among them, YY live has always been the cash flow support for huanju group to expand its overseas business.

In addition, in the Baidu domain, YY and its enhanced Baidu live broadcasting can be more integrated with global content creation, electricity supplier realisation, and service support. This is also what Robin Li has said, and after YY is deeply integrated with Baidu, the development opportunities of Baidu in the Baidu ecosystem are greater.

In terms of business model, Baidu's mobile ecology is constantly developing in depth, focusing on core vertical categories such as e-commerce and health. Live broadcast is not only a new engine for Baidu's business growth, but also an important starting point for diversification.


The changes in the live broadcast industry reflect the continuous changes in the mobile traffic ecology. As we said in Baidu mobile ecology is flattening, content, social interaction and consumption are becoming a whole.

In this process, the realization forms of commercial companies are also merging. In the past year, each Internet company's increasing weight on live broadcasting business is also reflected in the diversified development.


For another example, we mentioned earlier that Baidu hosting page has reshaped the commercial value of Baidu marketing services to customers, and the traditional computational advertising will gradually decline. To help businesses carry out commercial activities and obtain sales growth is the direction of improvement for today's digital advertisers.

For example, an enterprise or brand live broadcast in Taobao, Baidu and wechat can often achieve multiple effects, such as product promotion, customer management and delivery, which are reflected in the performance of the commercial platform and can comprehensively drive the growth of advertising marketing, value-added services, e-commerce and other revenue.

The development of Baidu live broadcasting is expected to be the same. The focus is not the challenge to the existing pattern, but the significance of live broadcasting to Baidu's internal commercialization integration, such as promoting the commercialization cycle of Baidu's internal traffic, improving the user's experience in content consumption and service, strengthening the user relationship, and boosting the development of Baidu's new businesses such as payment and e-commerce.

For example, in Baidu app, the user account system is further opened up, and the content habits, social relations, and consumption scenes of users are more precipitated in Baidu. The cash flow method of creators will also be composed of sharing, advertising, payment, and e-commerce.


The completion of the acquisition of YY means that Baidu's live broadcasting business will have a faster pace of development, and there will be more embodiment in business integration

Live broadcast is the most efficient and relatively mature content form of content traffic commercialization, which can effectively improve Baidu's revenue in paid value-added services;

At the same time, with live broadcast as the starting point, Baidu can conduct more in-depth service integration of Baidu user system, and improve the accessibility and accuracy of content and service;

Promote the development of Baidu e-commerce business, build content ecological development and expand commercial space among users, creators and platforms.

With the entry of the last wave of traffic giants, the competition will spread to more fields.

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