On December 18th, bilibili officially announced that it would form the BLG team on the basis of the original LPL team IMay and enter League of Legends. Officials have not released any information related to the purchase price. When asked by an interface journalist, bilibili said that no more details have been released.

League of Legends Professional League (LPL) is the highest-level League of Legends professional competition in China, and it is also the only channel for China Mainland Division to reach the annual mid-season invitational tournament and the global finals. In 217, the semi-finals and finals of League of Legends professional league were held in Shanghai and Beijing respectively, all of which were hard to find.

how popular is p>LPL? According to statistics, not long ago, the League of Legends annual final tournament attracted 2, people to watch the game in Chicago, USA, and 43 million players around the world watched it online, surpassing the audience of 12 million in the NBA finals last year.

The popularity of the tournament directly leads to a high margin for teams to join the league. Although the official has never released the data related to the deposit, and the team has always kept the word "deposit" tight-lipped, according to industry estimates, the investment in bilibili this time is at least about 3 million yuan. This does not include bilibili's later investment in venue construction in the future.

you can refer to JD.COM's purchase price for the QG team. The data circulating in the market is about 4 million RMB. The e-sports industry is famous for burning money. From 215 to 216, it showed a blowout and many capitals entered the market, but it is difficult to hide the essence that e-sports clubs do not make money.

Now, bilibili has also jumped into this unprofitable "track". We can't help wondering, today, when other video websites don't make money, where does bilibili have so much money to devote to the "bottomless burning of money" e-sports industry? What is the revenue and profitability of bilibili?

in October p>217, Bloomberg reported that the video barrage website Bili Bili plans to raise $2 million in US IPO as soon as next year. Bilibili officials did not respond to this report.

in November, the interface journalist got a report on bilibili (the data in the report is as of October 217). Bilibili's data in the report are all provided by bilibili himself.

1. Game revenue has accounted for 8%

According to bilibili's financial data, the company's revenue in 216 was 736 million yuan. From January to April, 217, bilibili has achieved a revenue of 729 million yuan, which is close to last year. The target sales in 217 is about 2-2.5 billion yuan.

judging from the performance in the first four months, bilibili has achieved profitability in financial statements: from January to April 217, the company achieved a phased financial statement profit of 98.54 million yuan (this has not paid the copyright fees). In 217, the company's copyright amortization expenditure was 27 million yuan. The report predicts that bilibili will break even in 217.

comparing with traditional video websites, we can see that bilibili has great advantages in purchasing.

traditional video websites, such as youtu, iqiyi, etc., mainly obtain the header content by purchasing the video copyright from the content distributor. In the past two years, the price of video has risen, and the competition for head content among major platforms is fierce. The copyright cost of film and television dramas is very high.

For example, the online copyright price of Ruyi\'s Royal Love in the Palace released in 217 was 9 million/episode, with 9 episodes per episode and 81 million yuan for a single drama; In 217, the price of "Langya List 2" was 8 million, with 48 episodes, and the total price was 386 million yuan.

compared with the investment of over 1 million yuan. Bilibili mainly buys Japanese dramas, and its price is 2,-3,, which is only 2% of the traditional video websites.

From the perspective of bilibili's revenue structure, game agency/intermodal transportation has accounted for more than 8% of bilibili's revenue, and other major categories of revenue account for about 4% of live broadcast revenue; Advertising sales are about 4%; E-commerce sales, annual BML offline activities, B-currency income, wealth management income, etc. divide the remaining revenue share by less than 1%.

It can be seen that bilibili's heated discussion on patch advertising and rewarding for Up are all nine Niu Yi hairs for bilibili. In this sense, we can say that bilibili is a "game company" based on the secondary culture.

Rui Chen, chairman of bilibili, was interviewed during China Joy in 217, which also testified this view. He mentioned that "content consumption and derivative consumption do account for a part of the proportion, and the content of the music area is very healthy", especially mentioning that "as a more interactive digital content, the game itself has more potential to tap. Technology will make its content better. The whole game industry is going up, so are the games in bilibili. There will be changes in the future. "

The game of bilibili Intermodal Transport has achieved great success at this stage, mainly relying on a game-Fate/Grand Order (hereinafter referred to as FGO). In May, 217, with the update of FGO National Service, Xinyingling Heizhende entered the card pool, and FGO National Service achieved a good result of topping the best-selling list of App Store for the first time, and even "surpassed" the glory of the king one day.

Interface journalists have reported that the success of FGO, as a niche secondary game, is regarded as the label of the success of bilibili's game intermodal transport. The report shows that this game accounts for about 8% of the total game revenue every month. Rui Chen believes that bilibili's playing games is not clear as a means of realizing, but as the content.

"bilibili may be cautious in realizing cash, but it is still quite healthy at present. The realization mainly comes from the user's consumption desire. " Rui Chen believes that "the platform for creating content that everyone likes will not face the problem of real realization. Because of entertainment and content, everyone pays for happiness, which is a very natural demand. "

At the end of May, bilibili launched a Blue Airline. At the beginning of its launch, it ranked in the top ten on the iOS bestseller list. At this stage, it is stable in the top 3 or so.

Blue Sea Route is expected to contribute more than 12 million yuan in revenue in the first month. In the future, the income scale should be stable at around 5 million/month; Masterpieces in this year's distribution plan also include self-developed "Brandon Meng Hua Tan" and "A Blood Story", and the annual game revenue may exceed 2 billion. The future game revenue is very considerable.

Second, bilibili has invested in more than 3 companies.

From its establishment in 21 to 217, bilibili has been a company established in Shanghai for more than seven years, with a total financing of over 5 million yuan. What most users are concerned about is that it has received millions of dollars in financing from the A round in 213, and now it has been integrated into the D round. Behind it are excellent capitalists such as IDG and H Capital, cultural media industry resources such as the Chinese Cultural Industry Fund, and giants such as Tencent. Bilibili's listing has also become popular.

What most users don't notice is that bilibili has invested in more than 3 companies, large and small, with investment amounts ranging from one million to ten million. There are not a few people who bought the LPL team for 3 million like today. The following investment data are all from IT oranges:

According to the report, the biggest investment in bilibili is named Shanghai Oriental Basketball Team Club. When people were poking fun at the title of the "Bi Li Bi Li" basketball team, in fact, bilibili spent more than 8 million yuan on this investment, accounting for 15% of the shares.

Several other investments of more than 1 million yuan are aimed at cultural and creative industries, and the order is Nanjing Miman Culture, Shanghai Xinyu Animation Design Company, Xiamen Wings Wind Animation, and Zhuhai Hippie Network Technology. Among them, Nanjing Miman Culture is also over 45 million RMB.

Third, improve the e-sports map

Judging from the estimated sales of RMB 2 billion in bilibili this year, it seems natural to invest in an e-sports club. The e-sports market is hot, so bilibili has reason to seize the track and cultivate its own team. If the operation is good, it may also be possible to make a profit by the team.

According to official website, bilibili has increased the operation of game pages, and launched a lot of live content of new games.

bilibili has a group of youngest users. According to the data revealed by Rui Chen at the Fifth Internet Audio-visual Forum, "bilibili's user base is the youngest group among Internet users in China, and 9% of them are users under the age of 25, mainly after 9 s and s."

users aged 1-25 in China have a population of 26 million, and the bilibili area should be 9 million. We can infer that more than 5% of young netizens in cities and more than 8% of middle school students and college students in first-tier cities are users in bilibili. This group of users represents the future.

the cumbersome registration process has screened out some "pseudo-secondary powder". In bilibili, a barrage or comment has to pass a "test" of 1 questions first. In the past four years, the number of users who passed the "test" has reached 3 million, which even exceeds those who passed the CET-4 and CET-6 in the past few years.

bilibili told the interface journalist, "There are a large number of e-sports enthusiasts among bilibili users. Bilibili's Up owners and anchors also have a lot of content based on e-sports games, so bilibili users like e-sports. "

while bilibili is constantly improving its secondary and game maps, bilibili is getting closer and closer to listing.