Chinese online, reading together in long audio, “literature + audio” is a good business?
On the evening of May 7, the online reading platform Chinese Online (SZ: 300364) announced that it had integrated the “Strategic Cooperation Agreement” with Shanghai Microphone Culture Media Co., Ltd. (Dragonfly FM business entity, hereinafter: microphone culture).The two parties will cooperate on digital copyright work authorization, audio work promotion resources, and joint operation of the AI anchor zone.On May 8th, the Chinese online market immediately closed the daily limit, with an increase of more than 10.02%, newspaper 4.72 yuan.The announcement said that the cooperation between the two parties mainly includes the following aspects, and the cooperation is valid for three years.The specific cooperation content is that Chinese Online provides the affiliated 17K Novel Network, April Astronomy Network’s digital copyright authorized works are authorized to the microphone culture, and for authorized works, the membership products are opened to end users, paid reading, free reading and other functions; microphone culture willThe copyright belongs to the copyright or audio works that have obtained legal and effective full authorization are authorized to Chinese Online, and Chinese Online agent sells its audio works on Chinese online cooperation channels; microphone culture should give corresponding promotion to audio works authorized by Chinese Online to microphone cultureSupport such as resources, and at the same time explore the joint operation model of the AI anchor zone on the microphone culture platform.According to the announcement, Dragonfly FM has been in the audio field for nearly 9 years, and has experience in the production, operation and distribution of audio content. The current user scale exceeds 4.500 million, with an ecological monthly activity of 1.3 billion, covering 90 million smart devices. The Chinese online subsidiary Beijing Hongda Ether Technology Co., Ltd. (hereinafter referred to as: Hongda Ether) is one of the earliest audio content production and content providers in the country, with 1.23 million (sets) and 280,000 hours of audio book resources.The signing of the strategic cooperation agreement is conducive to broadening the company’s copyright monetization channel, enhancing the value of copyright, and promoting the development of audio business.Talking about the layout in the field of long audio, Wang Jingjing, vice president and secretary of the board of Chinese online, said in an investor telephone communication meeting on May 5 that Hongda Ethernet is a voice copyright agency affiliated with Chinese online, and has accumulated voice copyrights since its establishment.At the same time, Chinese Online’s high-quality original novels did not sell audio copyrights when selling copyrights. At present, there are a lot of content requirements for audio platforms. Therefore, the competition for these audio content is relatively strong. There is still huge room for growth in the future audio market demand.At the same time, audio copyright depends on the digital content copyright, while the original novel’s copyright party is concentrated on the head platform. At the same time, it has the strength to convert digital content copyright into audio copyright platform, so the industry concentration is relatively high.A quarterly report disclosed by Chinese Online on April 28 showed that its first quarter revenue was 1.6.7 billion, an annual increase of 8.01%, the net profit attributable to shareholders of listed companies is 403.980,000 yuan, realizing turnaround.The revenue growth of Chinese Online was mainly due to the increase in the income of the “Literary +” business, and the company’s net profit reversal of losses was also due to the increase in the income of the “Literary +” business, the decline in the game business and the increase in the profit of equity investment.Obviously, during the announced strategic cooperation period, Chinese online controlling shareholders, shareholders holding more than 5% of the shares have risk reduction.The announcement shows that the controlling shareholder, the actual controller Tong Zhilei, and Tong Zhilei controlled Jianshui Wenrui Enterprise Management Co., Ltd. (to be called February 5, 2020 to August 4, 2020, to focus on bidding transactions, block transactions, agreement transfers, etc.Ways to reduce the company ‘s shares by no more than 15.73 million shares and about 41.96 million shares, that is, no more than 2 of the company ‘s total share capital.16% and 5.77% of shares.As of April 30, Tong Zhilei gradually reduced his holdings by 66.70,000 shares, accounting for 0 of the total share capital.092%; Wenrui has not reduced its shareholding.After the reduction is completed, Tong Zhilei is still the company’s largest shareholder, but due to the close shareholding ratio with the second largest shareholder, Chinese Online may appear to have no actual controller status.In the Air Force for a month, some Tencent companies also officially entered the long audio field.In April this year, Tencent Music Entertainment announced a strategic cooperation with Yuewen Group.The content of the cooperation shows that Reading will authorize Tencent Music Entertainment to make the literary works on the platform into long-audio audio books, and both parties can distribute these audio works to the world on their respective platforms.In addition, the two parties will combine the original content library and IP adaptation experience of reading, and Tencent Music Entertainment’s audio production capabilities and ecological product services to provide users with high-quality audiobooks.In order to support the above strategic cooperation, Tencent Music Entertainment also released a long audio strategy and launched the long audio product “Cool Me Listen”, the specific content provided includes audio books, crosstalk storytelling, historical humanities, parent-child education, radio dramas, etc.Types of.Long audio may be a new story of “literature + audio”, but the fact that it needs to face is that the entire field has long been difficult to make money.PGC (professional content production) platforms in the industry, such as Himalayan, Dragonfly FM, etc., in audio books, knowledge discovery, cost investment, despite the revenue scale and user scale, but the profitability has been waiting for the test, and can not be listed.UGC (User Content Production) platforms, such as Litchi, etc., although reducing content costs through anchors, communities, etc., have not yet achieved profitability.At the same time, the long audio field faces challenges from shorter videos and live broadcasts with higher efficiency, further squeezing user time.According to data from iResearch, it is estimated that by 2023, the number of online audio users in China will exceed 900 million.At the same time, China is the world’s second largest online audio market after the United States. In 2018, online audio revenue accounted for about 15% of the world’s total, which translates into a compound annual growth rate of 44%.However, analysts have pointed out that although online audio users continue to grow and compounding itself is also improving, online audio platforms still have the phenomenon of increasing revenue but not increasing profits.Sauna, Ye Wang Bai Jinlei editor Wang Jinyu proofreading Yang Xuli