YY Company's alternative business: Amateur performers usher in spring

Introduction: Foreign media today, the author analyzes yy company's unique business model. The article said, with the help of virtual products and unique music and gaming business, YY's performance in a short period of time, the blowout growth, not only attracted the Temasek and Tiger Global Fund and other well-known venture investment institutions, share prices in a few months rose 50%. The following is the full article: the "Business" of "Spring" Lin Lin, an amateur performer, is absolutely unusual: convincing male fans to send her virtual gifts such as teddy bears, necklaces and blue roses. The 25-Year-old Qingdao Girl is the Chinese entertainment website yy Company's DJ and singer, her working conditions are quite simple: a notebook computer, a 10 square meters of room, but every day to give up to 2000 fans to bring joy. More than two years ago, Lin Lin resigned from office clerical work, will all the thoughts spent on YY company above, now income is five times times more than that year. YY company combines the characteristics of the American famous reality show "American Idol" and the online performance club, the total number of users is now close to 500 million, allowing amateur performers to play games with their fans or from sales of virtual gifts. It allows performers to expose themselves to vulgar jokes, but forbids pornography. YY's share price has soared 50% since it landed on Nasdaq last November, with Temasek and Tiger Global Fund investing in the company. "In the two or three-line cities and rural areas of China, people can only find fun in internet cafes," said Jenny Lee, GGV Capital partner Jenny Li Hu. The company injected 17 million dollars into YY. By 2016, China's online gaming market will grow from 43.4 billion yuan in 2011 to 84.6 billion yuan (about $13.6 billion trillion), up nearly one-fold in five years, the consultancy predicts. YY is "Catching people's desires," says Jenny Lee. Business model unique YY company has about 70 million active users, they spend an average of 52 hours per month on this platform, experience its rich entertainment services, such as K songs and games. YY Company's registered user account number of 457 million. Eric Qiu, analyst with credit Securities in Hong Kong, points out that, unlike Tencent's QQ voice service and video interactive community 9158 competitors, yy services have higher audio quality and stricter content monitoring. He said: "YY voice chat products more stable performance, sound without any delay, for any violation of the rules of the user, usually will stop their account." YY Company's music business yy music since March 2011 to allow users to buy roses and candy and other virtual gifts, in a short period of 21 months revenue reached 339 million yuan. YY Company's membership fee minimum of 20 yuan per month (about 3.20 U.S. dollars), allowing them to use facial icons, ringtones and other services. Premium members charge higher fees, they can have a virtual rolls, and they have the right toOther members "kicked out" from the chat room. "As far as business models are concerned, there is really no one overseas technology company like YY," said Eric Qiu. It is unique. "According to YY company CFO He Zhenyu, as a reward for user-made content, the company signed a revenue-sharing agreement with talent performers, typically taking 60% to 70% of their income." Revenue within one year Lin Lin's monthly income between 5000 yuan to 10,000 yuan, four hours a day online, four days a week duration. She hosted a radio program and a video advertising programme, playing games with fans online, and of course, the service was charged. Lin Lin said: "I belong to the sexy mature female type, this is precisely the type which the user likes." You'll feel like a big star, and no matter what you say, there will be hundreds of people rushing to respond. "In YY's annual revenue, 41% came from the online gaming business, and 35% contributed by the music business, which includes live performances and karaoke songs." Data show that YY company 2012 revenue of 820 million yuan, an increase of more than one times, to achieve profits of 89.2 million Yuan, 2011 is a loss of 83.2 million yuan. YY said in its IPO prospectus that the company had previously been fined for improper user content. According to He Zhenyu Introduction, now, users can give the content "red Flag", YY company will also use automatic review mechanism, filtering inappropriate pictures and information, locking abnormal peak flow. Enter the online education market Lin Lin's stage name is "Mu Xiao Kiss" (Mu Xiaowen), she sometimes give fans a virtual kiss: "Honestly, yy company chat platform Many people are very boring, in the above just to pass the time." YY company also found a new source of revenue from online education, up to now, there are about 20,000 teachers to join YY company, to use this platform to teach foreign language, civil service examinations and other courses. Li Shian, a vice president of a middle school in Liaoning Province, began teaching English online through yy, a free voice software client, since May 2010. His online tutoring class currently has 100 students, earning about RMB 10,000 a month. He Zhenyu said that YY's business expertise is also in online games and music platforms, that is to say, its future education users "most" must come from other sources. YY Company is currently trying to transform from an entertainment tool to multi-platform services. Still, Lin Lin will continue to act as a "virtual girlfriend" of many fans. Maybe her role won't last long. "I have to get married, find a suitable boyfriend, get married and have children." "Lin Lin said," And for now, I can only stay at home all day. "(sailing)