Market News丨Industry Securities: Mango TV is growing against the trend, content e-commerce is expected to become the fourth pole of performance expansion
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Market News丨Industry Securities: Mango TV is growing against the trend, content e-commerce is expected to become the fourth pole of performance expansion

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With the overall growth of long video users close to the ceiling, Industrial Securities believes that Mango TV continues to improve with its variety shows and drama ecology. At the same time, the establishment of the e-commerce center of Mango TV is expected to become the fourth pole of the company’s performance growth.

Affected by the downward pressure of the macro economy, the exemption of advertisements for paid members, and the rise of short videos, the hard-broadcast revenue of the overall video website continued to decline, but Mango TV relied on the continuous promotion of drama series and variety shows and enjoyed the platform traffic. Dividends of rapid growth. 

In the first half of this year, the advertising revenue of Mango TV achieved positive growth, up 5.8% year-on-year, while iQiyi’s advertising revenue fell 27.7% year-on-year.

Source: Industrial Securities

Industrial Securities believes that Mango TV’s growth against the trend is mainly due to the following reasons:

One is that the advertising structure of Mango TV focuses on investment promotion, while iQiyi and Tencent Video focus on hard advertising. Against the background of the macroeconomic downturn and the impact of short videos, China Merchants Soft Wide performed significantly better than Hard Wide.

Source: Industrial Securities

The second is that the number of members of Mango TV series continues to grow rapidly after the ecological improvement.

Benefiting from the promotion of drama series ecology and popular variety shows, as of June 30, 2020, the number of members of Mango TV was 27.66 million, an increase of 84% year-on-year and a quarter-on-quarter increase of about 15%.

In contrast, the membership growth rate of iQiyi and Tencent Video slowed down significantly. As of June 30, the number of iQiyi members was 104.9 million, a year-on-year increase of 4%, and a quarter-on-quarter decline of 12%. Tencent Video’s membership number was 114 million. , An increase of 18% year-on-year and a quarter-on-quarter increase of 2%.

From the perspective of daily life, with the hot airing of “Sister Riding the Wind and Waves” in June 2020, the number of daily activities on the mobile terminal of Mango TV has exceeded Youku. In June 2020, the number of monthly activities of Mango TV mobile terminal was 186 million, a year-on-year increase of 52%, approaching Youku’s 227 million monthly activities in the same period. Youku’s June monthly livelihood fell 45% year-on-year.

Source: Industrial Securities

In addition, in order to create a “second growth curve”, Mango TV announced the establishment of an e-commerce center at the end of August this year, and plans to create its own content e-commerce brand “Xiaomang e-commerce.” “Xiaomang e-commerce” focuses on selecting and customizing cutting-edge goods and embedding them in variety shows and TV drama IP. Through the introduction of the brand management mechanism, create a joint brand of artists, and organize KOLs including artists to participate in the planting of goods.

With domestic e-commerce companies already in the Red Sea, and with the diversion of top content e-commerce companies such as Douyin, Industrial Securities remains optimistic about the layout of Mango TV. Industrial Securities is optimistic that content e-commerce is expected to become the fourth pole of the company’s performance growth.

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