Could Bilibili’s Variety Show Push Attract Luxury Brands?

Bilibili has moved quickly to diversify revenue streams, but is it enough to boost share prices?

With its share prices dropping by $100 over the past year and China’s crackdown on gaming and entertainment showing no signs of stopping, short video platform Bilibili finds itself in make-or-break territory, with impressive revenue growth clouded by spiraling costs.

According to Bilibili’s 2021 annual report, the company boasted a 61.6 percent year-on-year increase in revenue last year, reaching an impressive 19.4 billion yuan ($2.9 billion). This momentum continued into 2022, with total net revenues increasing 30 percent in the first quarter over the same period last year to 5.05 billion yuan ($755.8 million). User acquisition showed satisfactory growth, with monthly active users (MAUs) reaching 293.6 million and monthly paying users hitting 27.2 million in Q1 2022, up from 271.7 million and 24.5 million, respectively, in the fourth quarter of 2021.

Recent years have shown Bilibili’s ability to attract users, keep them entertained, and – crucially – lure brands like Dior, Shiseido and Mercedes-Benz both as advertisers and active users. Notably, revenue from advertising in the first quarter of 2022 jumped 46 percent over the same period last year, reaching 1.04 billion ($155.6 million). Its biggest problem remains yawning costs.

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