The business model of gathering time: Game +yy value-added service + advertising

(i) Beijing time October 15, more play (YY Inc.) formally submitted to the SEC IPO application documents, the document shows that the gathering time will be landing in the Nasdaq Global market, the code is "YY", Morgansteins, Deutsche Bank, Citi will be the underwriter.

According to the prospectus, the current business system mainly includes: yy voice, yy.com (yy music, yy education, etc.) and play games network, cell phone YY.

In the first half of this year, the IPO showed that the company's revenues amounted to $51.1 million trillion, and for the first time, it achieved $3.3 million trillion. Revenue, according to the prospectus, according to the United States General Accounting Standards (GAAP), gathered time Company's 2009 years, 2010, 2011 net income of 5.19 million U.S. dollars, 20.32 million U.S. dollars, 50.8 million U.S. dollars. From 2009 to 2011, the composite annual growth rate was 212.6%. In the first half of 2012, net income rose to 51.1 million U.S. dollars, compared with a 2011-year net income of 18.86 million dollars and a growth rate of 173.2%. In 2009, 2010 and 2011, the net losses were 7.48 million U.S. dollars, 37.92 million dollars and 13.2 million U.S. dollars. In the first half of 2012, the net profit of the gathering time company was 3.3 million dollars.

The company's yy voice of the main source of income for network games, yy music and yy VIP paid users.

Game: The company's game joint operation Platform began operation in 2010, through the way with developers to achieve large-scale revenue. In YY speech platform, the user buys the Y currency and the game currency, thus may obtain the fictitious item, including the game virtual equipment and the channel some virtual items.

YY music: yy voice platform music channel has already become the online music performance live Platform for grassroots singers, celebrities and professional performers to provide real-time performance stage. These live performances include karaoke, singing competitions and song club. Since March 2011, users have been able to buy virtual gifts and give support to their favorite performers. YY Music allows users to stay at home can be realized on the Internet K song Exchange or participate in live performances. With YY Voice, the company supported and organized many large online music activities, such as fans online rallies, singers meeting, and the arrangement of different yy channel singers to perform or play together.

Monthly pay and participate in the VIP Member Service yy voice users can get the privileges of members, including the use of additional video flow of the inside channel, priority to enter some real-time live performances, VIP members of the exclusive avatar, ringtones, fonts and expressions.

Future YY Voice program to develop more members exclusive rights, to provide better services for members, and then strive to attract more users to join the ranks of VIP members.

YY Education: In education, with the development of China's Internet, more and more Internet enterprises have seen the development potential of education and training in the Internet, including network video enterprises, many internet companies began to try to launch online education services. YY voice is also combined with its own advantages, for real-time lectures and personal teaching courses provide a convenient and efficient platform.

The YY Voice Education channel offers many different courses such as foreign languages, Chinese civil service exams and computer IT skills training. Future YY Voice program will continue to use the user to participate in education courses, and with different educational institutions, in YY to provide paid courses. YY Voice plans to work with educational institutions to open more online education channels. At present, yy voice is also talking with a large number of educational institutions on improving educational channel-related functions and fee-splitting issues.

Advertising Services

In a report on the consultation, the 8-month period ended August 31, 2012, the Game network is the second largest game site in the country, the period of independent users accounted for 15.7% of the market share. The report also pointed out that domestic game developers 2011 Online advertising input of about 687 million yuan.

At present, the company's advertising revenue from the gathering time mainly from playing games portal. In the 2011, more gaming portals accounted for 93.8% of advertising revenue. In the first half of 2012, more gaming online advertising revenue accounted for 97.8% of the total advertising revenue. In order to pursue the user experience, the company is not at present yy.com and cell phone yy advertising, yy voice ads also control to the least.

In the multiplayer game portal, the main game developers to sell banner ads, text links, video, trademarks and button location. More games to play the net first created a "predetermined" way of advertising, for advertisers to provide a more accurate list of target audiences, these users have been "scheduled" (that is, expressed interest) The advertiser's products. In the future, with the growth of the user base, plan to expand the site's advertising position and advertising solutions, and add other content interest to the portal so as to improve the status of more gaming portals.

(This article from the gathering time I U.S. stocks part of the deletion and modification)

This article refers to the stock: $ reunion Age (YY) $