Momo Q1 Financial Results: 1/3 Of Revenue Comes From Live Video Broadcasting Service
摘要： Momo is definitely not the first to provide live video broadcasting service in China. To stand out, Momo will have to fully explore its advantage as a social networking platform, fundamentally.
On May, 18th, Momo, a Chinese mobile social networking platform for strangers, issued its Q1 financial report of the 2016 financial year. According to the report, the total revenue of Momo reached $50.0 million in Q1, an increase of 93% year on year. At the same time, Momo enjoyed a net profit of $7.1 million in Q1 of the 2016 financial year, and $6.7 million in Q1 of the 2015 financial year. As of March, 31st, 2016, the total number of monthly active users on Momo hit 72.3 million.
Live video broadcasting is the shining point in this report. According to the report, live video broadcasting service contributes to $15.6 million among Momo’s total revenue in Q1, 2016 (accounting for 30.7%), and is the top source of revenue for Momo.
Speaking of the performance of live video broadcasting service, Tang Yan, chairman and CEO of Momo, suggested that there was an obvious synergy effect between Momo’s core service and live video broadcasting service, and that live video broadcasting service provides Momo’s users with a new way to have fun and socialize.
Obviously, live video broadcasting service has already become a new type of attraction for Momo to gain more users. With the rising competition in the Chinese live video broadcasting market, the performance of Momo’s live video broadcasting service again demonstrates the fad for and the potential of this new type of social network service in China.
It is worth mentioning that this is the first time Momo released its revenue of a specific service: live video broadcasting. Momo’s revenue mainly comes the following four aspects: live broadcasting, VIP fee, mobile marketing and game. Besides, Momo revealed in this latest report that it earned $700,000 solely from its paid stickers.
Amid the burgeoning Chinese live video broadcasting market, what value can be generated by combining Momo’s core service social networking and live broadcasting service?
In September, 2015, Momo launched its own music streaming service Momo Live. Technically, however, this service is quite different from the later Momo Live Video service in terms of their positioning.
After maintaining Momo Live service for several months, Momo adjusted its strategic goal, put live broadcasting service at the core of its Momo Live service this April and opened the service to all Momo users. However, when the service was first launched, is was centered around the interaction between professional singers and fans. At that time, Momo even appointed Liang Qiaobo, a well-known music producer in China, as Chief Content Officer.
In an interview with Jia Wei, vice president of Momo’s live video broadcasting division, Mr. Jia told we media ThreeVoice that:
“Social networking platforms like Momo can play a great role in helping users establish social relationship with others. Different from apps featuring solely live video broadcasting service, the relationship between broadcasters and the audience is more diversified on Momo: they can be friends, colleagues or just strangers in the same area. Such diversity can significantly boost social efficiency.”
In addition, Momo users enjoy live video broadcasting service based on their social networks on Momo, so that they won’t be left in an awkward position where little people will watch their live videos and that they will be able to reach out to other strangers and make friends with them.
How can Momo support producers of PGC?
Speaking of Momo Live’s future, Mr. Jia said that he expected to see more innovation in Momo Live’s business model. At that time, functions such as “Award” will only become one of the large number of functions on Momo Live to encourage users to interact and participate. As is known to all, apps featuring solely live video broadcasting service are almost all centered around this simple “Award and Revenue” model.
For example, Momo could encourage users with professional skills such as keeping fit, dancing, teaching, cooking, etc. to gradually become producers of PGC (professionally-generated contents) on the platform, help them make extra money by charging users with ticket fees to live videos and providing monthly tickets. As a matter of fact, Momo has already been holding marketing events such as “Star of Stars” and “National Singing King” to boost user participation of live video broadcasting services.
However, Mr. Jia wished that Momo could delegate ordinary users powers to hold such activities and intertwine social networking and live video broadcasting together on Momo, so that users will not only be able to participate in such activities, but also get involved and hold activities they are interested in themselves. If so, a dynamic interaction cycle will be established on Momo.
Momo is definitely not the first to provide live video broadcasting service in China. Abroad, Facebook provides a typical example where a social networking platform can also become a live video broadcasting platform; at home, other social networking platforms such as Sina Weibo have all been providing similar services to catch up. To stand out, Momo will have to fully explore its advantage as a social networking platform, fundamentally.
[The article is published and edited with authorization from the author @TMTpost-Chinese, please note source and hyperlink when reproduce.]
Translated by Levin Feng (Senior Translator at PAGE TO PAGE), working for TMTpost.